Tenet Reports Third Quarter 2024 Financial Results By Investing.com

Toronto, Ontario–(Newsfile Corp. – November 29, 2024) – Tenet Fintech Group Inc. (CSE: PKK) (OTCQB: PKKFF) (“Tenet” or the “Company”), an innovative analytics service provider and operator of the Cubeler® Business Hub, today announced its financial results and operating highlights for the three-month and nine-month periods ended September 30, 2024, and September 30, 2023. Tenet reported revenue of $205,582, total expenses of $24,897,807, which included an expected credit loss provision of $18,715,423 recorded by the Company due to the de facto pause in activity on its platforms in China as the transition of its revenue model in that market continues, and a net loss of $24,692,225 for the quarter. All amounts in this news release are in Canadian dollars unless otherwise indicated.

Q3-2024 Financial Highlights

• Total (EPA:) Revenue of $205,582

• EBITDA of ($22.33 million)

• Net Loss of ($24.69 million)

(1) EBITDA is a non-IFRS financial measure provided to assist readers in determining the Company’s ability to generate cash-flows from operations and to cover finance charges. It is also widely used for business valuation purposes. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
EBITDA equals the results before income taxes, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, amortization of financing issuance costs and finance costs, as defined in Note 24.4 of the Audited Consolidated Financial Statements for the years ended December 31st, 2023 and December 31st, 2022.
(2) Adjusted EBITDA equals EBITDA as described above adjusted for change in fair value of contingent consideration payable, change in fair value of debenture conversion options, impairment of goodwill, impairment of intangible assets, gain on bargain purchase, loss on investment in a related company, impairment on investment in a related company and loss on legal settlement.

THIRD QUARTER FINANCIAL AND OPERATING RESULTS SUMMARY

While the Company’s revenue continued to decline as expected as its Chinese operations prepare to embrace the Company’s new data-centric business model, the Company got one step closer to that new business model with the beta launch of its Cubeler Business Hub’s Networking and Advertising modules shortly following the end of the quarter. This announced that the Company would be in position to add a sufficient number of SMEs to the Business Hub during the last quarter of 2024 in order to be able to commercially launch the Company’s first data driven ie-Pulse product.

In summary, the Company generated revenue of $205,582 for the three-month period and $1,685,160 for the nine-month period ended September 30, 2024, compared to $9,244,460 for the three-month period and $35,514,978 for the nine-month period ended September 30, 2023.

Total expenses before taxes for the quarter amounted to $24,897,807 compared to $53,133,401 for the same period in 2023. Net loss for the third quarter of 2024 was $24,692,225 compared to a net loss of $43,002,953 for the same period in 2023.

Full details of the Company’s third quarter 2024 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) for the three-month and nine-month periods ended September 30, 2024 and September 30, 2023, which are available at www.sedarplus.com.

Q3-2024 Results and 2024 Outlook Q&A

Tenet CEO Johnson Joseph will answer questions from shareholders related to the Company’s third quarter 2024 results and provide his perspective on what’s to come for the remainder of 2024 in a Q&A interview. Shareholders are encouraged to read the Company’s MD&A prior to sending their questions related to these subjects to the Company by 9:00pm EST on December 5, 2024 to investors@tenetfintech.com or cathy@chfir.com. The interview will be posted on the Company’s website by 5:00pm EST on December 10, 2024.

About Tenet Fintech Group Inc.:

Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this news release, unless explicitly specified, include Tenet and all its subsidiaries. Tenet’s subsidiaries offer various analytics and AI-based products and services to businesses, capital markets professionals, government agencies and financial institutions either through or leveraging data gathered by the Cubeler® Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. Please visit our website at: https://www.tenetfintech.com/.

Forward-looking information

Certain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Tenet to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, holding company with significant operations in China; general economic and business conditions, including factors impacting the Company’s business in China such as pandemics and COVID-19; legislative and/or regulatory developments; Global Financial conditions, repatriation of profits or transfer of funds from China to Canada, operations in foreign jurisdictions and possible exposure to corruption, bribery or civil unrest; actions by regulators; uncertainties of investigations, proceedings or other types of claims and litigation; timing and completion of capital programs; liquidity and capital resources, negative operating cash flow and additional funding, dilution from further financing; financial performance and timing of capital; and other risks detailed from time to time in reports filed by Tenet with securities regulators in Canada. Reference should also be made to Management’s Discussion and Analysis (MD&A) in Tenet’s annual and interim reports, Annual Information Form, filed with Canadian securities regulators and available via the System for Electronic Document Analysis and Retrieval (SEDAR+) under Tenet’s profile at www.sedarplus.ca, for a description of major risk factors relating to Tenet. Although Tenet has attempted to identify certain factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements reflect information as of the date on which they are made. The Company assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

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