TrackX Reports Q3 2021 Financial Results

Investor Updates | August 31, 2021

DENVER, Aug. 31, 2021 (GLOBE NEWSWIRE) — TrackX Holdings Inc. (TSX.V:TKX | OTC:TKXHF | FRANKFURT:3TH) (“TrackX” or the “Company), a leading Software-as-a-Service (SaaS)-based provider of enterprise tracing, tracking and collaboration solutions, announces the financial and operational highlights from its third quarter ended June 30, 2021. All results are reported in Canadian dollars unless otherwise specified. A complete set of the June 30, 2021 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).

“In Q3 2021, TrackX strengthened its team and continued to make enhancements to its enterprise scalable, IoT-enabled platform to support its refined focus on supply chain tracing, tracking and sustainability,” said Tim Harvie, TrackX CEO. “We will continue to maintain our focus, improve our platform and grow our team to further position the Company as a leader in the delivery of enterprise solutions to help companies:

To successfully take advantage of industry opportunities, TrackX completed a non-brokered private placement in Q3, 2021. With this financing, the Company has invested in additional resources to support both new and existing customer implementations and deliver an expanded set of SaaS-based supply chain tracing, tracking and sustainability solutions to meet customer demand for proof of ESG (Environmental, Social and Governance) claims.

In Q3, 2021, TrackX saw an increase in revenue over the Q2, 2021. This increase in revenue was largely attributable to the following factors:

Financial Highlights for the three months ended June 30, 2021 (“Q3 2021”) compared to the three months ended March 31, 2021 (“Q2 2021”)

Third Quarter Revenue Mix

Revenue Q3 21 Q2 21
Recurring and Software License 73 % 39 %
Hardware 0 % 6 %
Setup, implementation, and other fees 26 % 55 %
TOTAL 100 % 100 %

Highlights Subsequent to the Third Quarter

Selected Financial Information

C$(000s) (except per share) Three-month
Q3 2021 Q2 2021
Revenue $728 $428
Gross Margin %  35%  18%
Loss for the period $1,325 $503
Loss per share $0.01 $0.02
Adjusted EBITDA Loss $573 $387

Business Outlook

TrackX will leverage its enterprise scalable, IoT-enabled platform and decades of supply chain experience to deliver multi-enterprise supply chain tracing, tracking and collaboration solutions to help companies become more efficient, more resilient and better equipped to meet their sustainability initiatives and respond to growing consumer demand for proof of ESG claims. Sustainability is estimated to be a more than $3 trillion market opportunity. Supply chain solutions sit at the epicenter of this opportunity and TrackX is well equipped to help companies monetize this opportunity.

TrackX is now able to focus on delivery of solutions to customers which:

To support its growth strategy, in Q3, 2021, TrackX completed an equity financing for gross proceeds of $2,000,000 which is being used in hiring engineering, sales and marketing resources in order to respond to new customer opportunities and facilitate growth. Additionally, the equity financing included 40,000,000 warrants priced at $0.075 per common share which, if exercised, would generate up to an additional $3,000,000 in operating capital for the Company. In addition to completing the onboarding a new Chief Marketing Officer (previously announced), the Company selected and subsequently hired a new Chief Financial Officer, Marc Spezialy, to support the growth of the company in the delivery of new supply chain solutions to support sustainability and ESG initiatives.

As TrackX strengthens its team and continues to make enhancements to its technology platform to support its core supply chain objectives, it will be rebranding its GAME platform as Keychain to signify the Company’s shift in focus and new capabilities in support of tracing, tracking, collaboration and sustainability solutions. TrackX is positioning Keychain as the “key” to digital supply ”chain” transformation for enterprise accounts. It will further leverage technologies such as blockchain, graph databases, enhanced workflows and machine learning. While GAME has been focused on supporting the asset management requirements of a single enterprise, Keychain will leverage and expand upon the GAME platform to address the supply chain tracing, tracking, compliance reporting and sustainability requirements across multiple enterprises operating collaboratively as members of the overall supply chain partner ecosystem.

About Track

TrackX, Inc. (TSX.V: TKX), based in Denver, Colorado, is the SaaS-based enterprise tracing, tracking & collaboration solution that leading brands trust to achieve more sustainable and better performing supply chains. TrackX solutions are built on an enterprise scalable and fully customizable platform that leverages a broad array of RFID, IoT (Internet of Things) and Sensor Technologies to provide item level visibility to customers across a broad array of industries, including food, beverage, brewery, automotive, retail, financial services, technology and government. For more information, visit www.trackx.com.

Media Contact

Marc Spezialy, TrackX Holdings Inc.
investor@trackx.com
303-325-7300

Neither TSX Venture Exchange nor its Regulations 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.

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