Total revenue of $64.6 million for the full year ended 2022, an increase of 75% year-over-year.

Vancouver, British Columbia--(Newsfile Corp. - May 1, 2023) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries ("Plurilock" or the "Company"), an identity-centric cybersecurity solution provider for workforces, today announces its financial results for the for the three and twelve months ended December 31, 2022. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

"Fiscal 2022 was a transformational year filled with key business milestones with respect to our revenue growth and advancing our pathway to reaching profitability in 2023," said Ian L. Paterson, CEO of Plurilock. "While our full year 2022 revenue grew to $64.6 million as compared to $36.6 million in the previous fiscal year, we have also accelerated the cross-sale process for our Plurilock platform through our existing distribution channels which have been showcased in 2023, year to date."

Mr. Paterson added, "Reaching profitability remains a key focus for our company, and we intend to roll out several new initiatives to achieve this goal. Most notably, in the near term, we will continue to further integrate the operations of our previous acquisitions, which could enable us to potentially achieve multiple operational efficiencies and produce significant cost savings in 2023. Furthermore, we aim to continue improving our gross margins for the remainder of 2023 by focusing on securing high-margin sales."

Key Business Milestones

• Full year 2022 revenue reached the $65-million threshold.

• Revenue generated in the United States accounts for approximately 95% of Plurilock's total full year 2022 revenue.

• Plurilock completed three accretive acquisitions in 2022, resulting in the expansion of its client network for potential cross-selling opportunities and the addition of new technology assets.

• Substantial foreign exchange rate gains due to revenue generated in U.S. dollars and company overhead costs paid in Canadian dollars.

Fiscal Year 2022 Financial Highlights

• Total revenue for the year ended December 31, 2022, was $64,632,371 as compared to $36,624,610 for the year ended December 31, 2021. Revenue for the year ended December 31, 2022, and December 31, 2021, included revenue from both the Technology Division and the Solutions Division. Revenue for year ended December 31, 2022, is significantly higher than the prior year ended December 31, 2021, due to the timing of the acquisitions of Aurora Systems Consulting Inc. ("ASC") and Integra Networks Corporation ("INC") and the increase in sales revenue volume from the Technology Division.
  
  
• Hardware and systems sales revenue for the year ended December 31, 2022, totalled $56,919,768 and compared to $33,546,047 in the prior year ended December 31, 2021. Software, license and maintenance sales revenue for the year ended December 31, 2022, was $6,970,057 compared to $2,597,826 in the prior year ended December 31, 2021. Professional services revenue was $742,546 for the year ended December 31, 2022, compared to $480,737 in the prior year ended December 31, 2021.
  
  
• Hardware and systems sales revenues for the year ended December 31, 2022, accounted for 88.1% and of total revenues compared to 91.6% for the year ended December 31, 2021. Software, license, and maintenance sales revenues for the year ended December 31, 2022, accounted for 10.8% compared to 7.1% for the year ended December 31, 2021. Professional services revenue for the year ended December 31, 2022, accounted for 1.1% of total revenues, compared to 1.3% for the year ended December 31, 2021.
  
  
• Gross margin for the year ended December 31, 2022, was 7.7% compared to 6.8% for the year ended December 31, 2021.
  
  
• Cash and cash equivalents and restricted cash on December 31, 2022, was $2,853,107 compared to $9,468,104 on December 31, 2021.
  
  
• During the year ended December 31, 2022, the Company used $9,837,363 of cash from operating activities compared to $2,033,930 in the prior year.

Fourth Quarter 2022 Financial Highlights

• Total revenue for the three months ended December 31, 2022, was $17,822,224 as compared to $12,698,591 for the three months ended December 31, 2021.

• Hardware and systems sales revenue for the three months ended December 31, 2022, totaled $16,723,631 and compared to $12,098,191 for the three months ended December 31, 2021. Software, license, and maintenance sales revenue for the year ended December 31, 2022, was $596,140 compared to $497,892 in the prior year ended December 31, 2021. Professional services revenue was $502,453 for the three months ended December 31, 2022, compared to $102,508 for the three months ended December 31, 2021.

• Hardware and systems sales revenues for the three months ended December 31, 2022, accounted for 93.8% and of total revenues compared to 95.3% for the three months ended December 31, 2021. Software, license, and maintenance sales revenues for the three months ended December 31, 2022, accounted for 3.3% compared to 3.9% for the three months ended December 31, 2021. Professional services revenue for the three months ended December 31, 2022, accounted for 2.8% of total revenues, compared to 0.8% for the three months ended December 31, 2021.

• Gross margin for the three months ended December 31, 2022, was 10.3% compared to 9.7% for the three months ended December 31, 2021.

Fourth Quarter 2022 Operational Highlights

• On October 3, 2022, the Company announced it has entered into an amended and restated consulting agreement with a strategic consultant (the "Consultant") whereby the Company has agreed to pay the Consultant a fee (the "Fee") of $30,000 for services provided by the Consultant to the Company in connection with the Atrion acquisition. The Company intends to settle the Fee part in cash and common shares of the Company, whereby the Company will issue to the Consultant 78,947 common shares of the Company (the "Consulting Shares") at a deemed price of $0.19 per Consulting Share.

• On November 8, 2022, the Company made a payment in the amount of US$300,000 towards the aggregate consideration of the CloudCodes Acquisition. The US$300,000 was recognized as a short-term loan on the consolidated financial statements as of December 31, 2022, and was paid in full.

• On December 2, 2022, the Company announced a $1,500,000 non-brokered private placement financing of units (the "Units Financing") at a price of $0.14 per unit pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions.

Each unit is comprised of one Common Share and one common share purchase warrant. Each warrant is exercisable at a price of $0.25 for a period of 24 months from the closing date of the Units Financing.

• On December 20, 2022, Plurilock announced the listing of CloudCodes in a Google Cloud case study. The Google case study is designed and developed to build, test, and deploy applications via its reliable and scalable infrastructure and enabling businesses to operate more efficiently.

• On December 22, 2022, the Company announced the closing of the first tranche of the Units Financing, for aggregate gross proceeds to the Company of $1,213,537.

Subsequent to the fiscal year end 2022

• On January 3, 2023, the Company announced the closing of the second tranche of its Unit Financing for aggregate gross proceeds to the Company of $342,583 consisting of 2,447,022 units at a price of $0.14 per unit and upsizing of the Units Financing from up to $1,500,000 to $2,500,000.

• On January 3, 2023, the Company issued 440,277 of common shares at $0.125 related to the convertible debenture December 31, 2022, interest payment (Note 18)

• On January 17, 2023, the Company announced the closing of the third and final tranche of the Units Financing for aggregate gross proceeds to the Company of $198,995 consisting of 1,421,393 units at a price of $0.14 per unit and share issuance costs of $7,146 bringing the total gross proceeds of the Units Financing to $1,755,115.

• On February 1, 2023, the Company announced the appointment of Blake Corbet to the Board of Directors.

• On February 1, 2023, the Company announced granting certain officers, employees, and consultants of the Company an aggregate of 3,609,667 options to purchase Common Shares at an exercise price of $0.15 per share, which will vest over four years from the grant date.

• On March 17, 2023, the Company announced the resignation of Roland Sartorius, the Chief Financial Officer, and Corporate Secretary effective early May 2023.

• On March 22, 2023, the Company was approved for an increase to its existing $1.5 million revolving line of credit dated July 29, 2022, from Pathward, National Association, a division of MetaBank, N.A, for up to $2.0 million effective March 8, 2023.

• On April 4, 2023, the Company announced the appointment of Jord Tanner as the Chief Information Officer.

Growth Outlook for 2023

As part of the Company's growth strategy to reach profitability, Plurilock aims to execute the following initiatives:

• Increase cross-selling of Plurilock's high-margin software solutions to the Company's growing customer pipeline.

• Streamline operations by further unlocking synergies between the Company and previous acquisitions to improve Plurilock's bottom-line.

• Adjust pricing of Technology Division's products to offer competitive rates to customers while increasing gross margins.

• Advance Plurilock's M&A strategy to complete accretive acquisitions of synergistic business with strong technology assets and extensive customer networks in key regional markets.

Summary of Key Financial Metrics

Note:

(1) Non-GAAP measure. Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines EBITDA as earnings before interest, taxes, and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation, listing, financing and acquisition related expenses. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

Non-IFRS measures

This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about operating performance. Plurilock defines EBITDA as net income or loss before interest, income taxes, depreciation and amortization. Adjusted EBITDA removes non-cash share-based compensation and listing expenses from EBITDA. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the adjustments do in fact reflect the underlying financial results of Plurilock's business and these effects should not be ignored in evaluating and analyzing Plurilock's financial results. Therefore, management believes that Plurilock's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Readers should refer to the Company's most recently filed MD&A for a more detailed discussion of these measures and their calculation.

Quarterly Filings

Management's Discussion and Analysis and Interim Condensed Consolidated Financial Statements and the notes thereto for the fiscal period ended September 30, 2022 can be obtained from Plurilock's corporate website at www.plurilock.com and under Plurilock's SEDAR profile at www.sedar.com.

About Plurilock

Plurilock provides identity-centric cybersecurity for today's workforces. Plurilock offers world-class cybersecurity solutions paired with AI-driven, cloud-friendly security technologies that deliver persistent identity assurance with unmatched ease of use. The Plurilock family of companies enables organizations to operate safely and securely-while reducing cybersecurity friction.

For more information, visit https://www.plurilock.com or contact:

Ian L. Paterson
Chief Executive Officer
ian@plurilock.com
212.780.3255

Prit Singh
Investor Relations
prit.singh@plurilock.com
905.510.7636

Forward-Looking Statements

This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") which relate to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws.

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