Edmonton, Alberta--(Newsfile Corp. - April 17, 2024) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in mobile liquid measurement solutions, announces its interim results for the three- and six-month periods ended February 29, 2024.

"We are seeing steady demand for our products in the crude and used oil markets, focusing our sales and marketing efforts on gaining market share with existing fleet turnover and new developing new fleet accounts," says Nick Forbes, CEO at Titan. "We are also excited to be gaining traction in the fuels market, and we will continue to focus on our diversification strategy over the coming quarters.

"The second quarter results reflect a stable production rate from Tanker OEMs, mirroring the activity seen in the first fiscal quarter.  We expect a similar level of demand in the 3rd quarter for Titan's TD100 series products in the Crude and Used Oil segments. We also have several new business opportunities in the Refined Fuel and Chemical market segments, as a result of our key business development initiatives.

"Titan has been focusing on business development activities with key players in the Refined Fuels market. Undertaking several pilot trials in the third and fourth quarter of this year, the pilot trials are expected to take 3-5 months, equipping 1-5 trucks with Titan TD100 systems and Titan's Rack Control Module (RCM).

"Longer term, our product development initiatives are focused on a next generation of product that will be cost-effective and designed to fit multiple end-use applications. As part of our technology modernization strategy, we are conducting pilot trials with T-Connect, Titan's first mobile application that works on iOS and Android devices. T-Connect is a software tool that will drive adoption of the TD100 system in new and existing market segments. We currently have 8 fleet customers piloting T-Connect, and we expect to scale this number over the course of the 3rd and 4th quarter in fiscal 2024. T-Connect underscores Titan's commitment to being the market leader in advanced technology for tanker trucks.

"Our investment strategy is to commit the necessary resources to penetrate new mobile liquid market segments, and the development of value-added products and software solutions to these market segments. The Company invests its non-operating cash reserves in conservative interest-bearing accounts and marketable securities. Acquisition opportunities are considered where it complements our growth strategy or enables the monetization of our connected strategy."

Q2 FISCAL 2024 HIGHLIGHTS

• Revenues for the second quarter of fiscal 2024 increased by 15% to $1,750,979 compared to $1,521,908 in the second quarter of fiscal 2023. Through six months, the Company's revenues have increased by 8% to $3,264,837 compared to $3,025,028 through six months of fiscal 2023. The Company continues to see increased demand for its core product line as Tanker OEMs remain at peak production capacity.

• Gross Profit increased to 822,546 or 47% of revenue in the second quarter of fiscal 2024 compared to $799,152 or 53% of revenue in the second quarter of fiscal 2023. During the six-month period ended, gross profit decreased to $1,602,575 or 49% of revenue compared to $1,635,773 or 54% of revenue. The decrease in gross margin resulted from an increase in unit manufacturing input costs due to inflationary price increases in components.

• The Company incurred product research and development expenses(1) in the current quarter of $247,463 on activities to support the Company's diversification and growth into new markets compared to $34,698 incurred in the same period of fiscal 2023. During the six-month period ended, product research and development expenses(1) increased to $513,121 compared to $48,704 incurred in the comparative period. In fiscal 2023, the Company unveiled a strategic growth plan focused on updating its core product line and diversifying its business.

• The Company's net earnings increased by $154,480 to $244,716 in the second quarter of fiscal 2024 compared to net earnings of $90,236 in the second quarter of fiscal 2023. Through six months, net earnings decreased by $659,816 to a net loss of $159,896 compared to net earnings of $504,920 in fiscal 2023. The decrease in net earnings over the comparative period was driven by increased product research and development expenditures on its strategic growth initiatives and non-cash fair value losses recorded in other non-operating items, specifically an unrealized loss of $303,125 recorded in the current fiscal year on the Company's investment in shares of Bri-Chem Corporation compared to an unrealized loss of $72,750 recorded in the same period of fiscal 2023.

• The performance of the core business improved in the second quarter with reported Operating EBITDA(1) of $275,492 in the second quarter of fiscal 2024 versus $224,630 in the comparative period. Through the six-months ended, Operating EBITDA(1) decreased by $112,901 to $481,372 compared to $594,273 for the six-months ended February 28, 2023.

Financial Highlights Summary
(in Canadian dollars)

(1) See non-IFRS measures below.

The Company's interim consolidated financial statements and the management's discussion and analysis ("MD&A") which includes the Company's Business Outlook, for the three- and six-month periods ended February 29, 2024, are available on SEDAR+ at  and the Company's website, .  

NON-IFRS MEASURES

The Company uses certain measures in this MD&A that do not have a standardized meaning as prescribed by IFRS (International Financial Reporting Standards) and thus are prohibited from being disclosed in the consolidated financial statements. These measures, which are derived from information reported in the Company's consolidated financial statements, may not be consistent with similar measures presented and disclosed by other reporting issuers. However, management believes that this information provides increased insight into the Company's strategic plan to address the broader mobile liquid markets. Readers are cautioned that these non-IFRS measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS

The table below provides a reconciliation of the Company's EBITDA and Operating EBITDA to the Operating income (loss) before other items per the interim consolidated financial statements for the periods presented:

The table below, removes the recurring engineering expenses from the total to isolate the product research and development expenses excluded in Management's calculation of Operating EBITDA:

A detailed definition of these non-IFRS measures can be reviewed in the Company's MD&A