XTM Provides Update on Status of Financial Statements

XTM Inc. ("XTM" or the "Corporation") (QB: XTMIF / CSE: PAID / FSE: 7XT) is providing an update to its previously announced management cease trade order (the "MCTO") granted by the Ontario Securities Commission (the “OSC”) under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").

Pursuant to the MCTO, the Corporation’s CEO, Marilyn Schaffer, and the Corporation’s CFO, Paul Dowdall, may not trade in securities of the Corporation until such time as the Corporation files its annual audited financial statements, annual management's discussion and analysis and related certifications for the year ended December 31, 2022 (collectively, the "Required Documents"), and the OSC revokes the MCTO. The delay in filing the required documents is in connection with to a recent change of auditor for the Corporation and audit requirements resulting from increased transaction volume experienced by the Corporation.

The MCTO does not affect the ability of other shareholders to trade their securities.

In addition to the late filing of the Required Documents, the Company does not believe it will be in a position to file its interim financial statements, management’s discussion and analysis and related certifications for the three-month financial period ended March 31, 2023 (the “Additional Disclosure Documents”).

As such, the Company has requested, and the OSC recently confirmed, an extension to the MCTO until July 17, 2023 for the Company to file their Required Documents and Additional Disclosure Documents. The Company expects to file the Additional Disclosure Documents concurrently with the filing of the Required Documents as soon as it has obtained the necessary approvals, subject to further unforeseen delays.

XTM also confirms that it intends to satisfy the provisions of NP 12-203 and issue bi-weekly default status reports for so long as they remain in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by XTM to remedy the default, particulars of any failure by the Corporation to fulfill these provisions, any subsequent defaults of XTM requiring a default announcement and any other material information concerning the affairs of the Corporation not previously disclosed.