Toronto, Ontario--(Newsfile Corp. - November 22, 2024) - SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPU.F) (the "Company", or "SATO") is pleased to announce unaudited financial results for the three and nine month periods ended September 30, 2024. Please refer to the Company's Unaudited Condensed Interim Consolidated Financial Statements and the accompanying Management's Discussion and Analysis for full details and discussion of the results, copies of which have been filed and are available under the Company's profile on SEDAR+ () and are available on the Company's website ().

Financial - Highlights

Q3 marks the first full quarter after Bitcoin's halving in April, which reduced the block reward from 6.25 BTC to 3.125 BTC. As a result, we earned half the amount of Bitcoin for the same hashrate. Meanwhile, the price of Bitcoin surged to $87,310 by the end of September, up from $56,741 on December 31, 2023. However, this price increase was offset by an average 140% rise in mining difficulty compared to 2023.

• Total revenue decreased 36% for the three months ended September 30, 2024 and increased 5% for the nine months ended September 30, 2024, compared to the same periods in 2023

• Revenue from digital assets decreased 25% for the three months ended September 30, 2024 and increased 133% for the nine months ended September 30, 2024, compared to the same periods in 2023

• Gross profit (loss) for the three and nine months ended September 30, 2024 was $(544,387) and $3,082,973 compared to a gross profit of $755,958 and $3,112,420 for the three and nine months ended September 30, 2023

• Net loss of $1,717,056 and net income of $1,269,387 for the three and nine months ended September 30, 2024 compared to a net loss of $775,935 and $175,329 for the three and nine months ended September 30, 2023

• Positive cash flow from operating activities for the nine months ended September 30, 2024 of $1,733,228

• 31 BTC and 161 BTC earned in the three and nine months ended September 30, 2024 compared to 93 BTC and 152 BTC in the three and nine months ended September 30 2023

• The Company had cash and digital assets of $3,928,863** as of September 30, 2024

• Digital assets balance at September 30, 2024, was $2,956,743 compared to $2,244,730 at December 31, 2023

• EBITDA of $(720,636) and $270,698 for the three and nine months ended September 30, 2024 compared to an EBITDA of $4,258,857 and $2,114,848 for the three and nine months ended September 30, 2023

Operational - Highlights

• Efficiency ratio (BTC earned per Exahash), average: 22.69 BTC per EH/s for the three months ended September 30, 2024

• Average all-in electricity cost per Bitcoin: US$51,869 for the three months ended September 30, 2024

"Q3 is a pivotal quarter in our company's journey, marked by the halving event in full effect during the quarter, which reduces our block rewards by half, while we face increased mining difficulty and limited Bitcoin price growth during the quarter. We've navigated such challenges before and positioned ourselves to thrive by restructuring costs and improving computing efficiency. In today's market, this strategic approach has placed us in a stronger position, enabling us to deliver exceptional results over the first nine months of the year, and we remain confident that this momentum will carry us through the full fiscal year of 2024," says Romain Nouzareth, CEO of SATO.

In October 2024, SATO received a partial reimbursement from the Canada Revenue Agency (CRA) for previously claimed sales tax credits. As disclosed in the Company's financial statements for the three and nine months ended September 30, 2024, SATO has recorded a receivable, with a provision for uncollectible taxes. The CRA's review of the sales tax credits remains ongoing, and the final refund amount remains uncertain.

SATO Technologies will host a live conference call on Tuesday December 3rd, 2024 at 11:00 AM EST. The call will begin with a live presentation of the operational highlights, our AI/HPC vision including Bitcoin mining, and the financial results for the three and nine month periods ended September 30, 2024, and be followed by a Q&A session. Registration link can be found below, with analysts, media, and investors invited to attend.

Live Conference Call Details:

Date: Tuesday December 3rd 2024
Time: 11:00 AM Eastern Time
Ask your questions in advance:

Get the link for the Live Event:

A recording of the conference call will be available on our website shortly after the event for those who are unable to attend. We look forward to having you join us for this important update and appreciate your continued support.

On behalf of the board,
Romain Nouzareth, SATO CEO and Chairman

About SATO
SATO, founded in 2017, is a publicly listed company providing efficient computing power. The Company currently operates one data center tailored to provide computing power for Bitcoin Mining, but may look to expand or add additional data centers for computing power for Bitcoin Mining, High Power Computing ("HPC"), Artificial Intelligence ("AI"), and L2's. The Company is listed on (TSXV: SATO) & (OTCQB: CCPU.F). To learn more about SATO, visit .

* The Company uses non-IFRS measures including "EBITDA" as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from Management's perspective. EBITDA should be compared to its nearest IFRS measure, Net Loss, and should be read in conjunction with the unaudited condensed consolidated statement of operations and comprehensive income and unaudited consolidated statement of cash flows included in the unaudited condensed consolidated financial statements for the period ended September 30, 2024 and 2023.

** The cash and digital asset position includes both unrestricted and restricted positions. The restricted cash position amounts to C$448,217 as of the reporting date. The restricted digital assets amount to C$894,292 as of the reporting date. Cash position and Digital Assets as at September 30, 2024, are C$972,120 and C$2,956,743, respectively.

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.

Cautionary Statement Regarding Forward-Looking Information

This news release contains certain forward-looking statements, including statements relating to the future performance of the Company, and other statements that are not historical facts. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.