UI Urbanimmersive Inc

Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSV-V UI) (OTCQB: UBMRF) today reported financial results and presents business highlights for its second quarter ended March 31, 2023. The interim condensed financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/.

	Three-month period endedMarch 31, 2023	Three-month period endedMarch 31, 2022	Six-month period endedMarch 31, 2023	Six-month period endedMarch 31, 2022
	In thousands $	In thousands $	In thousands $	In thousands $
Revenues	2,727	2,182	5,555 **	3,177
COGS and direct charges	1,491	990	3,214	1,429
Gross margin (before amortization)	1,236	1,192	2,341	1,748
Amortization	525	319	1,032	568
Operating expenses	2,181	1,508	4,221	2,376
EBITDA*	(646)	(68)	(966)	(272)
Other expenses	18	349	21	384
Net income (loss)	(1,485)	(981)	(2,929)	(1,578)
Basic net income (loss) per share	(0.03)	(0.02)	(0.06)	(0.02)

* Q2-23 EBITDA has been adjusted (+$299k) for non-cash items related to share and share-based payments ($218k) and non-recurring transition costs (+$58k) and acquisition costs (+$23k). Q2-22 EBITDA has been adjusted (+$248k) for non-cash items related to share and share-based payments (+$228k) and business acquisition costs (+$20k). EBITDA for the first semester of 2023 has been adjusted (+$914k) for non-cash items related to share and share-based payments ($315k) and non-recurring items such as transition costs (+531k$) and business acquisition costs (+68k$). EBITDA for the first semester of 2022 has been adjusted (+$356k) for non-cash items with respect to share and share-based payments (+$275k) and non-recurring items such as business acquisitions (+$53k), restructuring costs (+$60k) and wage subsidies (-$32k).** Q1-23 revenues have been revised down by $350k following an adjustment reported on November 2022 revenues during the transition period.

“During the most recent quarter, following the finalization of the integration of all the photography agencies acquired, we carried out a strategic review of our organizational structure, which resulted in the implementation of certain measures to rationalize our expenses, particularly in terms of workforce. Those important measures should enable us to further increase our competitive advantage in the market as well as improve our financial performance and be better positioned in the event of a possible recovery in the real estate market.

In addition, we continued our development projects, in particular having progressed rapidly with the integration plan with CoreLogic starting with MLS connections, the integration of ChatGPT into our flagship product, UiMeet3D, the onboarding of affiliate photographers (franchises) to our technological platform and the preparation of the deployment of the printing service offered by HomeVisit for all of the Group's photography agencies”, said Ghislain Lemire, President and CEO of Urbanimmersive.

HIGHLIGHTS

• For its second quarter ending March 31, 2023 (Q2-23), the Company generated revenues of $2,727k compared to $2,182k for Q2-22, an increase of +$545k or +25%;
• For its first half of 2023, the Company generated revenues of $5,555k compared to $3,177k for its first half of 2022, an increase of +$2,378k or +75%;
• Following the completion of the integration of all acquired photography agencies and in response to difficult real estate market conditions, the Company was able to reduce its expenses on an annualized basis by more than $1.5m in during the second quarter of 2023, particularly by the layoff of more than 20 employees;
• Following the acquisition of HomeVisit and its partnership with CoreLogic, Urbanimmersive quickly expanded its MLS connection partner program from 1 to more than 25 connected MLSs;
• During this second quarter, the Company integrated ChatGPT, a state-of-the-art artificial intelligence (AI) technology, into its UiMeet3D Avatar Greeting Bot product, now available in all of its 3D tour subscription offers.

The Company has granted 1,650,000 share purchase options to officers and employees according to the terms of its share option plan. These options are exercisable at $0.05 per share and expire on May 25, 2028. The Company has also issued 2,209,842 shares at a price of $0.05 to Management and employees as part of their compensation.

TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.

Investor Video Conference Call

Urbanimmersive will be hosting a video conference to discuss its 2023 second quarter results and answer questions at 1 p.m. (ET) on Monday, May 29, 2023. To participate to the video conference, please use the following link: https://urbanimmersive.zoom.us/j/89027691725.

About Urbanimmersive

Urbanimmersive develops and commercializes real estate photography technologies and services focused on redefining industry visual content standards. The Company all-in-one platform enables high-volume photography businesses to increase operational productivity delivering feature-rich 3D tours and floor plans, leading-edge property websites and high-resolution AI-indexed images. The Company operating segments include software (SaaS), 3D photography equipment and, in a growing number of North American cities, technology-powered real estate photography service business units leading the industry photo-shoots standards transformation. Learn more at urbanimmersive.com.

Caution of Forward-Looking Statements

Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.

For more information, please contact:

UrbanimmersiveGhislain LemirePresident & CEO514-394-7820 X 202ghislainlemire@urbanimmersive.com

Simon Bédard, CA, CPA, CFA, MBAChief Financial Officer514-394-7820 X 224simonbedard@urbanimmersive.com