Perk Labs Reports First Quarter 2023 Results

VANCOUVER, BC / ACCESSWIRE / April 28, 2023 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk" or the "Company") today announced financial results for the first quarter ended February 28, 2023.

Overview

For the first quarter ending February 28, 2023, the Company implemented cost reduction measures and explored strategic options with advice from James Edward Capital Corporation, signed a non-binding letter of intent to merge with Getit Technologies Inc. ("Getit"), and later signed a binding letter of intent. The Company also underwent a CFO transition, engaged Independent Trading Group for market-making services, and received a notice of allowance for a US patent application.

"Since becoming CEO on March 2, 2023, my primary focus has been to streamline the Company's operations and develop a clear and concise strategy for growth. I am proud to say that we have made significant progress in these areas and am confident our efforts will be reflected in much more positive results in our next quarter," said Ryan Hardy, Perk CEO, "We believe that by focusing on signing new enterprise clients and leveraging the synergies of both Perk and Getit, the Company is well-positioned to achieve much greater success in the upcoming quarter. By prioritizing enterprise sales and strategic partnerships, we are confident our efforts will result in improved results and generate significant value for our stakeholders."

2023 Q1 Financial Highlights:

• Revenue of $2,708 in Q1 2023 compared to $8,982 in Q1 2022
• Net loss of $152k in Q1 2023 compared to loss of $406k in Q1 2022.
• General and administrative expenses decreased significantly from $277k in Q1 2022 to $199k in Q1 2023 as the Company continued to minimize its administrative expenses.
• Research and development expenses also decreased significantly from $203k in Q1 2022 to $105k in Q1 2023 as the Company became more efficient at developing its products.
• Sales and marketing expenses also decreased from $106k in Q1 2022 to $43k in Q1 2023

2023 Q1 OPERATIONAL HIGHLIGHTS

• Strategic Initiative and Cost Realignment. On December 6, 2022, the Company announced that it implemented cost reduction measures, reallocated its workforce, and was exploring strategic options such as raising growth capital, merger, acquisition, or other transactions. The Company received advice from James Edward Capital Corporation, a boutique investment bank specializing in emerging growth companies, on its strategic options.
• Non-binding Letter of Intent: On December 19, 2022, the Company announced it had signed a non-binding letter of intent to merge with Getit to form a leading digital technology provider of delivery logistics and digital ordering solutions with immediate revenue growth opportunities.
• Binding Letter of Intent: The Company announced on January 4, 2023, that it had signed a binding Letter of Intent (LOI) to merge with Getit. The appointment of Patrick Power to Perk's Board of Directors was also announced. Mr. Power is the Chairman and President of James Edward Capital Corporation, an Ottawa-based boutique investment bank focused on emerging growth companies.
• CFO Transition: On January 20, 2023, the Company announced that Vanessa Altamirano would step down as CFO, effective February 17, 2023, to pursue another professional opportunity and that the Company was restructuring for the planned merger with Getit. Andrew Bailes, a seasoned finance executive and Principal at Hertford Advisors, was announced as Interim CFO until a permanent CFO is named.
• Engaged Market Maker: On January 26, 2023, the Company announced that it had engaged Independent Trading Group (ITG) to provide market-making services in compliance with the Canadian Securities Exchange policies. The agreement was for an initial three-month term and is renewable for additional one-month periods. The Company will pay ITG CAD$5,000 per month for its services, and the agreement may be terminated with 30 days' notice by either party.
• Notice of Allowance of US Patent: On February 22, 2023, the Company announced it had received a notice of allowance for a United States patent application directed at systems and methods for electronic payments with fraud prevention based on correlating transaction data and information from a user's device.

HIGHLIGHTS SUBSEQUENT TO FEBRUARY 28, 2023