Snipp Interactive Provides 2022 Audit Status Update and Reports Preliminary Unaudited Financial Results for Fiscal 2022

VANCOUVER, BC / ACCESSWIRE / August 16, 2023 / Snipp Interactive Inc. ("Snipp", the "Company", "We" and "Our") (TSXV:SPN); (OTC PINK:SNIPF), a global provider of digital marketing promotions, rebates, and loyalty solutions, provides a status update on the completion and filing of its audited financial statements and associated management's discussion and analysis for the years ended December 31, 2022 and 2021 (together, the "Annual Financials") and announces its preliminary unaudited financial results for the year ended December 31, 2022 ("Fiscal 2022") .

On August 2, 2023, the Company announced that it was expecting to file the Annual Financials by August 15, 2023. Since that time, while significant progress has been made towards completing the audit of the Company's Annual Financials the audit remains incomplete as of the date hereof, due to primarily the identification of a possible prior period adjustment that, among other things, requires the involvement of the Company's previous audit firm, Davidson & Company LLP, who audited the financial statements for the years ended December 31, 2021 and 2020 ("Fiscal 2021"). We are currently working with both our current auditors, RSM Canada LLP, and Davidson & Company LLP to complete an analysis of the impact of such an adjustment, which we have been currently advised is expected to be less than $500k. Despite the potential 2021 adjustment to the levels currently advised, the Company expects Fiscal 2021 to still show positive EBITDA growth and a significant revenue uplift.

Fiscal 2022 Highlights in U.S. dollars¹

(Refer to the Non-GAAP Measures, Gross Margin, EBITDA and Bookings Backlog (each as defined herein) discussion below for more information on how these metrics are calculated and utilized by the Company)

• For the full Fiscal 2022 period, the Company expects revenue to total between $24 million to $25 million, which represents an increase of between 57% to 64% when compared to Fiscal 2021.
• For Fiscal 2022, Gross Margin is expected to be approximately 38%, as compared to 57% in Fiscal 2021. We have continued to invest in the growth of Gambit Rewards, a B2C business, which has temporarily impacted our margins.
• For Fiscal 2022, EBITDA is expected to be positive and between $0.1 million and $0.2 million, which represents a decrease of approximately 94% or 89%, compared to positive EBITDA of $1.8 million for Fiscal 2021.
• Bookings Backlog as at December 31, 2022, is expected to be approximately $10 million compared to $10.9 million as at December 31, 2021.
• Cash at the end of 2022 stood at $5.5 million and the Company continues to be debt free.

"2022 was a pivotal year for Snipp, with our new solutions, Gambit and Snipp Media, showing early and continued success. Our audit has taken an unusually long period of time given the change in audit firms and our acquisition of the Gambit business in early 2022, and now the possible prior period adjustment which requires the involvement of our prior audit firm as well. We hope the unaudited results that we announced today will inspire confidence in our shareholders that the underlying fundamentals of our business and operations remain sound. We are excited about our growth prospects and are focused on scaling the business, as we build out the core SnippCARE Platform solution and the Gambit Rewards Platform and the soon to be deployed SnippMEDIA solution. The team is working diligently to complete the Annual Filings so that our stock can once again trade. We apologize for any inconvenience or hardship that this may have caused to our shareholders", said Atul Sabharwal, Founder of Snipp.