VOTI DETECTION PROVIDES UPDATE BEFORE SECOND TRIMESTER


Company exploring strategic alternatives

MONTREAL, May 24, 2022 /CNW Telbec/ – VOTI Detection Inc. (“VOTI” or the Company”) (TSXV: VOTI), a leading Canadian technology company developing next-generation x-ray security systems based on 3D Perspective™ technology, is providing a market update before the publication of its report on the results of the second quarter May 31, 2022. This update is necessitated by the fact that the weakness experienced in the first quarter of fiscal 2022, primarily related to the impact of the Omicron variant and the resulting slower than expected pandemic recovery, s extended to the second quarter. The timing of a return to more normal markets remains uncertain at this time. As a result, second quarter revenue is expected to be lower than expected $6 million level to a range between $4.575 million and $4.7 million. At the same time, the company has experienced an erosion of its gross margins, with second quarter gross margins expected to be between 25.5% and 27%. The current market weakness, coupled with a significant increase in sourcing and shipping costs, has resulted in continued uncertainty that spans the entire industry. Given the current environment, the company is removing its previously published guidance for fiscal year 2022, including guidance for full-year revenue, gross margin and its guidance for a positive EBITDA output from the business. fiscal year 2022.

VOTI Detection Inc. Logo (CNW Group/VOTI Detection Inc.)

The weak performance of the Company since the beginning of the year has had a negative impact on its cash position. There is no certainty that the Company will be able to generate sufficient operating cash flow to pay its expenses and settle its obligations as they come due. The Company’s ability to continue operations depends on its ability to manage costs, raise additional equity on reasonable terms and benefit from an improving market. The existence of these conditions indicates that there are significant uncertainties likely to cast significant doubt on the Company’s ability to continue as a going concern.

The Company is reviewing available alternatives and will provide an update when releasing its quarterly results on May 31, 2022. There can be no guarantee as to the results of this effort.

About VOTI detection

VOTI Detection, headquartered in Montreal, Quebec, and listed on the TSX Venture Exchange, is a leading Canadian technology company that develops next-generation X-ray security systems based on 3D Perspective™ technology. VOTI’s technology produces remarkably sharp, more revealing X-ray images that outperform the competition while providing enhanced threat detection capabilities and an enhanced user experience. Since its inception, VOTI has installed scanners in over 50 countries and consulted extensively with government agencies and security specialists around the world to develop feature-rich, easy-to-use scanners that meet the sophisticated needs of screening operations. modern security. www.votidetection.com

Notice Regarding Forward-Looking Statements:

This release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Forward-looking statements may relate to VOTI’s financial outlook and anticipated events or results and may include information regarding financial condition, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives of VOTI. In particular, information regarding VOTI’s expectations regarding future results, performance, achievements, prospects or opportunities or the markets in which it operates and the impact thereon of the ongoing COVID-19 pandemic declared by the World Health Organization the March 11, 2020 (“COVID-19”), as well as statements relating to expectations regarding industry trends, growth rates, revenue expectations and revenue-generating potential, business plans and strategies, including including the results of its review of strategic alternatives, VOTI’s ability to continue to operate as a going concern, VOTI’s competitive position in its industry, VOTI’s expectations regarding the deployment of its npost MATRIX Series generation of X-ray scanners and the results associated therewith as well as its projections and forecasts relating to its expectation of returning to or exceeding pre-pandemic sales and gross margins constitute forward-looking statements.

In certain instances when used in this release, the words ”may”, ”would”, ”could”, ”will”, ”intend”, ” plan”, ”anticipate”, ”do not anticipate”, ”believe”, ”seek”, ”propose”, ”estimate”, ”project”, ”wait ”, ‘not to expect’, ‘forecast’, ‘projection’, ‘outlook’, ‘outlook’, ‘targets’ or similar expressions, variations of these terms or the negative form of these terms are intended to identify forward-looking statements. These forward-looking statements reflect VOTI’s then-current views regarding future events based on certain material facts, assumptions, opinions and estimates in light of experience and management’s perception of historical trends, current conditions and future developments. expected, and other factors that VOTI currently believes are appropriate and reasonable in the circumstances and as of the date such forward-looking statements are made. Despite a careful process of preparing and reviewing forward-looking statements, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking statements are based on certain key expectations and assumptions made by VOTI, including expectations and assumptions regarding availability of capital resources and funding capacity, business performance, market conditions and customer demand. Although VOTI believes that the expectations and assumptions on which these forward-looking statements are based are reasonable, undue reliance should not be placed on forward-looking statements as no assurance can be given that they will prove to be accurate.

Forward-looking statements are necessarily based on a number of opinions, estimates and assumptions that VOTI considered appropriate and reasonable on the date such statements are made, are subject to certain known and unknown risks and uncertainties that may cause actual results or events to differ materially from those anticipated in these forward-looking statements, including, without limitation, risks regarding the threat detection technology industry, the inability to obtain approvals regulatory or changes in the regulatory environment, economic factors, management’s ability to manage and operate VOTI’s business, stock markets generally, and risks associated with growth and competition, in addition to other risks identified in VOTI’s most recent MD&A and other publicly filed documents under Prof. it from VOTI at www.sedar.com as well as other unknown risks.

Many factors could cause VOTI’s actual results, performance or achievements to differ from those described in this release, including, without limitation, those listed above, and the assumptions on which they are based. based turn out to be incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from those described as anticipated, planned, anticipated, believed, sought, offered, estimated or expected, and such – forward-looking statements should not be relied upon unduly. VOTI does not intend and undertakes no obligation to update these forward-looking statements, except as required by law. The forward-looking statements contained in this release are expressly qualified by these cautionary statements. Forward-looking statements contained in this press release regarding future results of operations, financial condition or cash flows are based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that the outlook information contained in this release should not be used for any purpose other than that for which it is disclosed here or herein, as the case may be. In addition, the current situation and future developments regarding COVID-19 could cause some of the assumptions and information set forth herein or the fact on which these assumptions are based to differ materially from previous expectations, including with respect to demand for VOTI’s products. , supply chain and availability of materials, mobility and shipment of materials and/or products, access to debt and equity capital and other factors.

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.

SOURCE VOTI Detection Inc.

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