BURLINGTON, ON / ACCESSWIRE / May 26, 2022 / Memex Inc. ("Memex" or the "Company") (TSX-V:OEE), a leader in Industrial Internet of Things (IIoT) manufacturing productivity software, released financial and operational highlights for its second quarter ending March 31, 2022. All results are reported in Canadian dollars. A complete set of its March 31, 2022 Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis has been filed at www.sedar.com.

Summary financial highlights for the three-months ended March 31, 2022:

• Revenue of $473 thousand versus $878 thousand in the year-ago quarter, a 46% decline which continues to be attributed in part to customer delays in delivery now anticipated to be completed in the third and fourth quarter of this year;
• Bookings^i, totalled $425 thousand, a 51% decline from the $867 thousand in the year-ago period;
• Finished the quarter with $933 thousand in project backlogⁱⁱ, up 81% from September 30, 2021;
• Gross margin was 66.5% for the period compared to 83.1% for the year-ago period;
• Cash consumed from operations (before changes in non-cash items) of $197 thousand was $391 thousand worse than the $194 thousand generated from operations in the year-ago period;
• Loss from operations of $244 thousand versus $185 thousand income in the year-ago period;
• Net and comprehensive loss of $279 thousand ($0.002 per share) was $420 thousand worse than the $141 thousand net and comprehensive income for the same period a year ago; and
• $224 thousand in working capital (excluding unearned revenue) at March 31, 2022 is $485 thousand lower than the $709 thousand at September 30, 2021; cash on hand of $578 thousand is down 18% from the $709 thousand on hand at September 30, 2021.

Summary financial highlights for the six-months ended March 31, 2022:

• $974 thousand in revenue was a 33% decline from the $1.45 million in the year ago period (which was the highest ever 6-month result);
• Bookingsⁱ totalled $1.39 million versus $1.35 million in the same period a year ago, a 3% increase;
• Gross margin was 71.8% compared to 80.6% for the year-ago period;
• Cash consumed from operations of 2022 (before changes in non-cash items) of $328 thousand was $437 thousand less than the $109 thousand generated in the first six months of fiscal 2021; and
• Net and comprehensive loss of $457 thousand ($0.003 per share) was $468 thousand worse than the $11 thousand in income generated for the same period a year ago.

Management commentary:

"Delays in customer deliveries affected our top-line revenue and overall results," said Memex CEO David McPhail. "However, we have re-organized our service delivery process, better positioning the Company to return to profitability. More prospects and customers are investigating onshoring strategies and enquiring about how Memex can improve potential future costs."

Selected financial information:

1. Before changes in non-cash working capital balances.

* Working Capital = current assets - current liabilities less unearned rev

** Working Capital ratio = current assets / current liabilities less unearned rev

About Memex Inc.:

Established in 1992, Memex grew to be an industry leader in Industry Internet of Things (IIoT) through the development of MERLIN Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology, and manufacturing domain expertise.

Our persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenge's manufacturers face. We made it our mission to, "successfully transform factories of today into factories of the future." As the global leader in Machine to Machine (M2M) connectivity solutions, our hardware and software products create unparalleled visibility at all levels, from "Shop-Floor-to-Top-Floor."

The MERLIN Tempus Suite provides effective quantification and management of Overall Equipment Effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous LEAN improvement, and boosting bottom-line financial performance. For more information, please visit: www.MemexOEE.com

For investor inquiries please contact:

Sean Peasgood, Investor Relations
647-977-9264
sean@sophiccapital.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.

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i & ii These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management's Discussion and Analysis for the periods ended March 31, 2022, and 2021, in the section "Other Financial Measures." That MD&A is available at www.sedar.com under our company profile.

SOURCE: Memex Inc.