Greenville, South Carolina, Aug. 29, 2024 (GLOBE NEWSWIRE) -- ARCpoint Inc. (TSXV: ARC) (the "Company" or "ARCpoint") will host a conference call at 4:45pm Eastern time, Wednesday, September 4, 2024 to review the Company's Q2 financial results for the period ending June 30, 2024. The Company will also discuss new opportunities as a result of the transaction with Any Lab Tests Now and creation of CRESSO Brands, LLC., as announced August 20, 2024.

The dial-in number for the conference call is as follows:

Canada / USA Toll Free 1-844-763-8274
International Toll +1-647-484-8814

Callers should dial in 5 – 10 min prior to the scheduled start time and ask to join the ARCpoint call:

ARCpoint President and CEO, John Constantine commented "Over the past year and a half, we have made tremendous progress in broadening our business and expanding our distribution footprint with the deployment of our MyARCpointLabs technology platform. This has transformed our business and outlook, as exemplified by the recently announced transaction with Any Lab Test Now and the creation of CRESSO Brands."

On August 20, 2024, the Company announced that it had entered into a transaction with Any Lab Test Now ("ALTN") to bring together the franchise operations of both ALTN and ARCpoint into a new joint venture company, CRESSO Brands, LLC. ("CRESSO"). By combining the two franchise operations, the companies created the largest franchise network of its kind in the United States.

Any Lab Test Now, based in Atlanta, Georgia, was founded in 1992 and at the time of the August 20, 2024 transaction, had more than 235 U.S. franchise locations providing direct access to clinical, DNA, and drug and alcohol lab testing services, as well as phlebotomy and other specimen collection services, through its retail storefront business model.

Mr. Constantine concluded, "As our relationship with Any Lab Test Now and CRESSO Brands evolves, we look forward to reporting how we are able to leverage MyARCPointLabs to create a healthcare ecosystem that will drive more business to the CRESSO franchisees and expand our distribution network even further through new partnerships".

On July 10, 2023 the Company reported that it had launched its new consumer e-commerce platform, MyARCpointLabs. ("MAPL") MAPL was developed to make it easier for the Company's franchisees to attract and better serve individual healthcare consumers and for a greater number of consumers to purchase the Company's products and services more easily. By year end of 2023, every ARCpoint franchised location had MAPL integrated into their location and interfaced with their local website.

MAPL provides interface support with various other healthcare organizations and acts as the operations tool within the franchise system. The technology virtualizes the Company's consumer business model allowing for the expansion of the Company's footprint to other entities beyond its traditional franchisee facilities and enabling franchisees to generate revenue prior to having a brick and mortar facility. MAPL also allows for the linking of diagnostic testing services and information with virtual physicians, telehealth organizations and other healthcare system constituents, such as independent pharmacies.

On November 21, 2023, the Company further announced that it had implemented a new application programming interface ("API") with MD Care Group LLC, ("MD Care Group") a telehealth company, which provides consumers with cost-effective, virtual access to health care through a national network of thousands of board-certified physicians and health care providers. This allows ARCpoint customers to connect with MD Care Group's doctors, through MAPL, to discuss results from ARCpoint diagnostic tests or other medical concerns they may have. This opens the door for future opportunities for the creation of virtual primary care and urgent care centers anywhere CRESSO Brand services can be accessed.

All results below are reported under International Financial Reporting Standards and in US dollars.

As at June 30, 2024, the Company had total cash on hand of approximately US$0.2 million, comprised of US$0.19 million in unrestricted cash and cash equivalents and US$3,668 in Brand Fund restricted cash. Use of Brand Fund restricted cash is at the Company's discretion and is used to increase sales and the brand presence of the Company's entities and franchisees.

Summary of 2024 Q2 Financial Results

• The Company notes that as of Q2, 2024, it has substantially reduced costs on a year over year ("YoY") basis, as demonstrated in the reductions YoY reductions in net loss, negative operating cash flow, negative EBITDA and negative adjusted EBITDA of approximately 42%, 68%, 41% and 45%, respectively and as summarized below.
• Total revenues for the three months ended June 30, 2024, were $1.6 million compared to $1.5 million for the three months ended June 30, 2023. The increase in revenue for Q2 2024 versus Q2 2023 was primarily due to increased royalty and franchising revenues.
• Net loss for the three months ended June 30, 2024, was $1.4 million compared to a net loss of $2.4 million for the three months ended June 30, 2023. The decrease in loss for Q1 2024 versus Q1 2023 was primarily due to a decrease in cost of revenue of $0.33 million, a decrease in salary and wages of $0.11 million, a decrease in software development expenses of $0.17 million and a decrease in sales and marketing costs of $0.12 million.
• Operating cash flow for the three months ended June 30, 2024 was negative $0.6 million compared to negative $1.9 million for the three months ended June 30, 2023.
• EBITDA for the three months ended June 30, 2024, was negative $1.1 million compared to negative $2.0 million for the three months ended June 30, 2023.
• Adjusted EBITDA for the three months ended June 30, 2024, was negative $1.0 million compared to negative $1.7 million for the three months ended June 30, 2023.

Summary of 2024 Year to Date Financial Results

• Total revenues for the six months ended June 30, 2024, were $3.3 million compared to $3.2 million for the six months ended June 30, 2023. The increase in revenue for Q1 and Q2 2024 versus Q1 and Q2 2023 was primarily due to an increase in support service revenues provided to franchisees and lab services.
• Net loss for the six months ended June 30, 2024, was $2.9 million compared to a net loss of $4.5 million for the six months ended June 30, 2023. The decrease in loss for the six months ended June 30, 2024 versus the comparative period was primarily due to a decrease in cost of revenue of $0.35 million, a decrease in salary and wages of $0.89 million, a decrease in software development expenses of $0.17 million and a decrease in sales and marketing costs of $0.16 million.
• Operating cash flow for the six months ended June 30, 2024 was negative $1.9 million compared to negative $3.1 million for the six months ended June 30, 2023.
• EBITDA for the six months ended June 30, 2024, was negative $2.2 million compared to negative $3.8 million for the six months ended June 30, 2023.
• Adjusted EBITDA for the six months ended June 30, 2024, was negative $2.0 million compared to negative $2.8 million for the six months ended June 30, 2023.
  

DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES
The Company reports certain non-IFRS measures that are used to evaluate the performance of its businesses and the performance of their respective segments. Securities regulators require such measures to be clearly defined and reconciled with their most comparable IFRS measures.

As non-IFRS measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Rather, these are provided as additional information to complement those IFRS measures by providing further understanding of the results of the operations of the Company from management's perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company's financial information reported under IFRS. Non-IFRS measures used to analyze the performance of the Company's businesses include "EBITDA" and "Adjusted EBITDA".

The Company believes that these non-IFRS financial measures provide meaningful supplemental information regarding the Company's performances and may be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. These financial measures are intended to provide investors with supplemental measures of the Company's operating performances and thus highlight trends in the Company's core businesses that may not otherwise be apparent when solely relying on the IFRS measures. These non-IFRS measures are calculated as follows:

"EBITDA" is comprised as income (loss) less interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Consolidated EBITDA and Adjusted EBITDA Reconciliation" appended to this press release for a quantitative reconciliation of EBITDA to the most directly comparable financial measure.

"Adjusted EBITDA" is comprised as income (loss) less interest, income tax, depreciation, amortization, share-based compensation, Brand Fund revenue and expense timing difference, change in fair value of warrant liability, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Consolidated EBITDA and Adjusted EBITDA Reconciliation" appended to this press release for a quantitative reconciliation of Adjusted EBITDA to the most directly comparable financial measure.

A reconciliation of how the Company calculates EBITDA and Adjusted EBITDA is provide in the table appended to this press release.

For more information, please see the unaudited interim Financial Statements (the "Financial Statements") and the interim Management Discussion & Analysis of the Company (MD&A") under the Company's profile at .

About ARCpoint Inc.
ARCpoint is a leading US-based franchise system that leverages technology along with brick-and-mortar locations to give businesses and individual consumers access to convenient, cost-effective healthcare information and solutions with transparent, up-front pricing, so that they can be proactive and preventative with their health and well-being. ARCpoint is based in Greenville, South Carolina, USA. ARCpoint Franchise Group LLC, formed under the laws of the state of South Carolina in February 2005, is the franchisor of ARCpoint Labs and supports over 130 independently owned locations. ARCpoint sells franchises to individuals throughout the United States and provides support in the form of marketing, technology and training to new franchisees. ARCpoint Corporate Labs LLC develops corporate-owned labs committed to providing accurate, cost-effective solutions for customers, businesses and physicians. AFG Services LLC serves as the innovation center of the ARCpoint group of companies as it builds a proprietary technology platform and a physician network to equip all ARCpoint labs with best-in-class tools and solutions to better serve their customers. The platform also digitalizes and streamlines administrative functions such as materials purchasing, compliance, billing and physician services for ARCpoint franchise labs and other clients.

For more information, please contact:

ARCpoint Inc.
Jason Tong, Chief Financial Officer
Phone : (604) 889-7827
E-mail : invest@arcpointlabs.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION :

Forward-Looking Information – this news release contains "forward-looking information" within the meaning of applicable Canadian securities laws which are based on ARCpoint's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Froward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the ability of the Company to implement its business strategies, the COVID-19 pandemic; competition and other risks.

Any forward-looking information speaks only as of the date on which it is made, and except as required by law, the Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering the forward-looking information contained herein, readers should keep in mind the risk factors and other cautionary statements in the Company's disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at . The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

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

ARCpoint Inc.
Consolidated EBITDA and Adjusted EBITDA Reconciliation
(Expressed in United States Dollars)