Company Announcements

Q2 Adjusted EBITDA of nearly $800 thousand
Q2 Gross Margin increases 22% over Q1
First Quarterly Net Earnings Profit of over $600 thousand in company history

TORONTO & SEATTLE--(BUSINESS WIRE)--Aug. 21, 2025-- POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the “Company” or “POSaBIT”), a leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three months ended June 30, 2025.

“POSaBIT delivered a historic quarter, announcing quarterly highs in Adjusted EBITDA of nearly $800 thousand dollars, Adjusted Gross Profit Margin of 78%, and the increasing of our cash on hand,” said Ryan Hamlin, co-founder and CEO of POSaBIT. “We have reached a noteworthy time at POSaBIT, thanks to all our hard work and emphasis we have been putting on merchant growth and company profits – we are thrilled to be able to share our strong results with our investors this quarter. We are poised for continued growth this year and beyond by adding cash to our balance sheet and increasing our net profits.”

Hamlin added, “It is unfortunate that our stock price has not been reflective of our great results as we continue to focus on growth and profits. We are confident that market participants will soon realize the full opportunity and potential of POSaBIT. With the potential of rescheduling now on the horizon, POSaBIT is well positioned to take advantage of what we expect to be a huge uplift to the industry and POSaBIT’s overall growth.”

Recent Operational Highlights

• The POSaBIT eComm online menu continues to see positive growth – with over 75% of all new Point of Sale merchants opting to use the eComm online menu vs. a competing solution.
• POSaBIT reduced the outstanding accounts payable balance quarter over quarter – reflecting the focus put on paying down our debt while increasing our cash.
• Board and insiders acquired over a half a million shares on the open market in July 2025.

Balance Sheet
As of June 30, 2025, the Company had cash and cash equivalents of $806 thousand compared to $736 thousand as of March 31, 2025.

Financial Results

The following table reconciles Revenue, as reported, to Adjusted Revenue for the quarter ended June 30, 2025 vs. June 30, 2024:

The following table reconciles Gross Profit Margin, as reported, to Adjusted Gross Profit Margin for the quarter ended June 30, 2025 vs. June 30, 2024:

The following table reconciles EBITDA to Adjusted EBITDA for the quarter ended June 30, 2025 vs. June 30, 2024:

Conference Call Information
Date: August 21, 2025
Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 694542
Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/52878

Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.

Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 52878
Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/52878

Financial Reports
Full details of the financial and operating results are described in the Company’s consolidated financial statements for the three months ended June 30, 2025, with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR+ at www.sedarplus.ca.

Non-IFRS Measures
Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold, and Adjusted Gross Profit Margin as a percentage of Adjusted Gross Profit as compared to Adjusted Revenue. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted in accordance with the reconciliation table set out in this press release. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.

Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.

Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding annual cost reductions; our expectations regarding rescheduling; the expected recovering of the Company’s share price; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSaBIT is an early-stage company; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations.

Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.

Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.

ABOUT POSABIT
POSaBIT (CSE: PBIT, OTC: POSAF) is a FinTech, working exclusively within the cannabis industry. We provide a best-in-class Point-of-Sale solution and are the leading cashless payment provider for cannabis retailers. We work tirelessly to build better financial services and transaction methods for merchants. We bring cutting-edge software and technology to the cannabis industry so that all merchants can have a safe and compliant set of services to solve the problems of a cash-only industry. For additional information, visit www.posabit.com.

Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250821743081/en/

Investor Relations:
investors@posabit.com

Media Relations:
Oscar Dahl
855-767-2248
hello@posabit.com

Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
855-767-2248
investors@posabit.com

Source: POSaBIT Systems Corporation