Perk Labs Reports Second Quarter 2023 Results

VANCOUVER, BC / ACCESSWIRE / July 31, 2023 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk" or the "Company") today announced financial results for the second quarter ended May 31, 2023.

Overview

For the second quarter of 2023, the Company completed its purchase of Getit Technologies Inc. As a result of this transaction, Ryan Hardy became the CEO of Perk Labs, with Jonathan Hoyles transitioning to the role of Chief Legal Officer. As a result, the Company expanded its presence into large enterprise businesses and has dramatically increased its product portfolio and its revenues.

"Over the period of Q2, my primary focus has been to streamline the Company's operations and develop a clear and concise strategy for growth. We continue to make significant progress in these areas, quarter over quarter," said Ryan Hardy, Perk CEO. "Our strategy and execution of signing new enterprise clients and leveraging the synergies of both Perk and Getit continue to show solid traction and growth for the company in a large enterprise market for custom digital payments and loyalty offerings."

2023 Q2 Financial Highlights:

• Revenue of $42,041 for the 6 months ended May 31, 2023 ("year to date" or "YTD") compared to $15,003 for the comparative period in 2022.
• General and administrative expenses decreased from $645k for YTD Q2 2022 to $545k for YTD Q2 2023 as the Company continued to minimize its administrative expenses.
• Research and development expenses also decreased from $406k YTD Q2 2022 to $250k YTD Q2 2023 as the Company became more efficient at developing its products.
• Sales and marketing expenses remained stable at $218k for YTD Q2 2023 compared to $225k for the comparative period in 2022.
• Net loss was significantly reduced to $843k for the YTD Q2 2023, compared to a loss of $1928k in the comparative period of 2022.

2023 Q2 Operational Highlights

• Completion of Merger with Getit: On March 2, 2023, the Company announced it had completed its merger with Getit. The acquisition was completed through a share exchange, with the Company issuing an equivalent value of $4.655M in common shares of the company in exchange for all of the issued and outstanding shares of Getit. As part of the merger, Steve Cadigan and James Topham stepped down from the Board of Directors of the Company. Ben Lacroix and Ryan Hardy, the co-founders of Getit, were appointed to the Board of Directors. In connection with the merger, the four largest shareholders of Getit agreed not to sell, assign, or otherwise transfer the common shares of the Company received, with the lock-up period expiring on February 28, 2024.
• Private Placement: On April 25, 2023, the Company announced that it had closed a private placement of 11,609,909 units ("Units"), for proceeds of ~$190,000 and settled a debt of ~$85,900 with a creditor by issuing 5,238,414 Units. Each Unit included one Common Share and one Common Share purchase warrant. The net proceeds of the private placement are to be used for sales, marketing, and working capital. The Company also announced that Gary Zhang was transitioning from his role as Chief Technology Officer to an advisory role.
• Change of Auditor: The Company appointed Welch LLP as the independent auditor of the Company, effective as of May 3, 2023. Welch LLP replaced Saturna Group Chartered Professional Accountants LLP. There were no reportable events between the Company and the Former Auditor.

Highlights Subsequent To May 31, 2023