CORRECTION FROM SOURCE: Datametrex Reports Record Financial Results

This document corrects and replaces the press release issued earlier today. The error occurred where it stated that the Company completed the Sale of Medi-Cali Inc. (“Medi-Cali”) where it should have said, “Concierge Medical Consultants Inc. (“Concierge”)“. The updated release follows below:

Toronto, Ontario–(Newsfile Corp. – November 29, 2021) – Datametrex AI Limited (TSXV: DM) (FSE: D4G) (OTCQB: DTMXF) (the “Company” or “Datametrex”) is pleased to report the record achievement in the history of the Company. Datametrex has filed on SEDAR its financial statements (“FS“) and related management discussion and analysis (“MD&A”) for the nine month financial results ending September 30, 2021 (“Q3 2021”). All currency is in Canadian dollars, unless otherwise stated.

The following is selected financial information for the three-month financial results ending September 30, 2021, along with comparative results. Please refer to the Q3 2021 Filing in its entirety, which is available under Datametrex’s profile at www.sedar.com.

Q3 2021 Financial Summary

The Company’s financial performance immensely improved in the third quarter compared to Q3 2020, and was attributed by growth across its COVID-19 sales and its related services with the film and production industry and uptake in its health technology business.

The Company reported nine months gross revenue of $40,315,888 compared to $7,626,121, gross profit of $19,309,184 compared to $2,344,489, EBITDA of $13,670,390 compared to ($1,443,617), Adjusted EBITDA of $16,940,830 compared to $8,630, and net earnings of $10,580,779 compared to ($2,057,779) in Q3 2020. The Adjusted EBITDA reflects the Company’s operations, excluding non-cash items.

“We are pleased with the financial results we have delivered in nine months of 2021 and remain optimistic in our outlook with a calculated progress in the current operating environment as we move through the remainder of 2021. We continue to expect a profitability upturn and notable free cash flow. We also continue working on winning the $40M contract, and it is our belief that we should be able to share the good news in the near future,” commented Marshall Gunter, CEO of Datametrex.

Financial Highlights for financial results ended September 30, 2021 (Q3):

 
* Note: EBITDA ( non- IFRS measures) is calculated as Net Loss adjusted for 1. Income taxes, 2. Depreciation and amortization, and 3. Interest and accretion. Adjusted EBITDA (non-IFRS measures) is calculated as EBITFA adjusted for share based compensation.

Non-IFRS financial measures do not have standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Specific items may only be relevant in certain periods. For reconciliation of non-IFRS financial measures please refer to the Company’s Management Discussion and Analysis for the nine months ended September 30, 2021.

“I am extremely proud of our whole team and we continue to experience growth as a result of our growing and diversified portfolio. The future prospects of Datametrex continue to build along with our growing customer base and we look forward to continue executing our business plan for the growth of the Company,” commented Andrew Ryu, Chairman of Datametrex.

The Company’s asset also improved significantly.

Q3 Business Highlights and Subsequent Events

• The Company’s revenue increased by 122.6% in Q3 2021 compared to Q3 2020 bringing in over $10.82M in revenue.
• The Company has cash and marketable securities of $12,915,840.
• Company has entered into a $250,000 contract with a Canadian tech company on an Artificial Intelligence (“AI”) contract and received the first 50% payment on August 23, 2021.
• Datametrex AI Limited received further Purchase Orders for approximately $750,000 CAD from LOTTE Data Communication Co., Ltd. and LOTTE Hi-Mart Co., Ltd., and the Shinhan Financial Group.
• Datametrex AI Limited received additional Purchase Orders for approximately $950,000 CAD from Lotte Data Communication Co., Ltd., Samsung Electronics Co., Ltd., and the Shinhan Financial Group.
• The Company remains approximately 9% shareholder of Graph Blockchain (CSE: GBLC)
• On August 4, 2021, Datametrex announced it had passed the second round of scrutiny in a Canadian AI bid. The anticipated value of the contract is approximately $40 million. The binding bid remains subject to meeting all criteria on technical merit and ability to deliver in accordance with the bid procedures and deadlines.
• On November 12, 2021, the Company completed the sale of Concierge Medical Consultants Inc. (“Concierge”) by selling 100% of the issued and outstanding share capital of the company to ScreenPro Securities Inc. (CSE: SCRN), an arm’s length publicly held company, incorporated under the laws of the Province of British Columbia. As a result of the acquisition, the Company received 36,000,000 SCRN shares.

Outlook

Despite a significant market slowdown due to the pandemic, the Company anticipates continued growth in business and improve its balance sheet with strong cash position. The Company continues focusing on expanding and improving its AI businesses, with the Company expecting to see significant growth in both its existing cybersecurity AI verticals and new health technology verticals that the Company is building on.

Unfortunately, even with populations being vaccinated, and as the contagious Delta variant continues to circulate, there is clear and mounting evidence that people are coming down with breakthrough COVID-19 infections. Testing and contact tracing is a COVID-19 preventative action that will continue for years to come. Only 29.6% of the world population have received at least one dose of a COVID-19 vaccine, and 15.2% are fully vaccinated.

About Datametrex

Datametrex AI Limited is a technology-focused company with exposure to Artificial Intelligence and Machine Learning through its wholly-owned subsidiary, Nexalogy (www.nexalogy.com). Datametrex’s mission is to provide tools that support companies in fulfilling their operational goals, including Health and Safety, with predictive and preventive technologies. By working with companies to set a new standard of protocols through Artificial Intelligence and health diagnostics, Company provides progressive solutions to support the supply chain.

For additional information on Datametrex and other corporate information, please visit the Company’s website at www.datametrex.com.

For further information, please contact:

Marshall Gunter – CEO
Phone: (514) 295-2300
Email: mgunter@datametrex.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements:

All statements included in this press release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections, and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. In particular, there is no guarantee that the parties will successfully negotiate and enter into a definitive agreement on mutually acceptable terms or complete the Transaction in the manner contemplated herein, if at all, that the due diligence of any of the parties will be satisfactory, or that the parties will obtain any required board, shareholder, third-party and/or regulatory or other governmental approvals, if any. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not undertake to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

NON-IFRS FINANCIAL MEASUREMENTS

The Company has included non-IFRS performance measures throughout this press release, including (a) Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”); (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company’s investment properties and the gain (loss) on change in fair value of derivative instruments; and (c) Book Value per Share which is calculated as equity attributable to Datametrex AI Limited shareholders divided by total common shares outstanding at the end of the reporting period. These non-IFRS financial measurements do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management uses EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company’s financial performance. These non-IFRS financial measurements have not been presented as an alternative to net income or any other financial measure of performance prescribed by IFRS. Reconciliation of non-IFRS measures has been provided throughout the Company’s MD&A, as applicable, filed under the Company’s profile on www.SEDAR.COM.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105183