ARCPOINT TO HOST CONFERENCE CALL TO PROVIDE BUSINESS UPDATE AND DISCUSS 2023 Q1 FINANCIAL RESULTS - Seite 2

As at March 31, 2023, the Company had total cash on hand of approximately US$5.4 million, comprised of US$4.6 million in unrestricted cash and cash equivalents and US$800 thousand in Brand Fund restricted cash. Use of Brand Fund restricted cash is at the Company’s discretion and is used to increase sales and the brand presence of the Company’s entities and franchisees.

Summary of 2023 Q1 Financial Results
All results below are reported under International Financial Reporting Standards and in US dollars.

• Total revenue for the three months ended March 31, 2023 was $1.7 million compared to $5.6 million for the three months ended March 31, 2022 and $1.3 million for the three months ended December 31, 2022. During Q1 2022, high complexity PCR testing and low complexity rapid tests volumes were significantly higher due to the COVID pandemic.
• Net loss for the three months ended March 31, 2023 was $2.1 million compared to net income of $684 thousand for the three months ended March 31, 2022 and negative $6.1 million for the three months ended December 31, 2022.
• Operating cash flow for the three months ended March 31, 2023 was negative $1.2 million compared to positive $1.8 million for the three months ended March 31, 2022 and negative $0.3 million for the three months ended December 31, 2022.
• EBITDA for the three months ended March 31, 2023 was negative $1.8 million compared to positive $1.1 million for the three months ended March 31, 2022 and negative $5.8 million for the three months ended December 31, 2022.
• Adjusted EBITDA for the three months ended March 31, 2023 was negative $1.1 million compared to positive $1.4 million for the three months ended March 31, 2022 and negative $1.3 million for the three months ended December 31, 2022.
  
  

DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES
The Company reports certain non-IFRS measures that are used to evaluate the performance of its businesses and the performance of their respective segments. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measures.

As non-IFRS measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Rather, these are provided as additional information to complement those IFRS measures by providing further understanding of the results of the operations of the Company from management’s perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company’s financial information reported under IFRS. Non-IFRS measures used to analyze the performance of the Company’s businesses include “EBITDA” and “Adjusted EBITDA”.