Toronto, Ontario--(Newsfile Corp. - April 28, 2023) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) ("Yangaroo", "Company"), a software leader in media asset workflow and distribution solutions, today announced its financial results for the fourth quarter- and year-ended December 31, 2022. The full text of the Financial Statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com. Please note that all currency in this press release is denominated in United States dollars, unless otherwise noted.

In 2022, Yangaroo faced significant challenges that had a negative impact on our fiscal year results. We experienced a secular decline in advertising activity across the business community, which affected our revenue streams. Despite these challenges, our dedicated team worked tirelessly throughout the year to address these issues and minimize their operational and financial impact. Through strategic efforts, we stabilized our revenue by the end of the fourth quarter. We also undertook key measures such as rationalizing our workforce, restructuring our bank facilities, and raising additional capital through subordinated debt to ensure the long-term sustainability of the business.

Business Update

The Advertising division faced challenges in the first half of 2022 due to market instability, resulting in reduced Advertising volumes and revenue for the first nine months of the year. The fourth quarter of 2022, in contrast, experienced higher volumes and produced higher revenue across the Company's Advertising customers. The increased volumes were attributed to the typical seasonality of television advertising, along with a noticeable uplift in creative television campaigns across all market sectors. This development is encouraging, as advertising volumes in Q4 2022, normalized for seasonality, exceeded those of the first three quarters of 2022, indicating an overall improvement in the industry.

The Entertainment group, made up of our Music and Awards divisions, maintained steady customer volumes and revenue throughout the year, with no significant volatility during the year. Both the Music and Awards divisions aim to benefit from our investment in technology and platforms for future growth opportunities.

The Company continued to invest in our technology in 2022 as Yangaroo remains focused on key feature improvements for its Music platform and rebuilding its Awards platform. We are also focused on improving the useability of our Advertising platform with integrations for connected television ("CTV") and free ad-supported streaming television ("FAST") workflows and finalizing our television legal clearance platform ("Clearance"). These developments remain on time and within budget, with the completion of our new Awards platform expected in mid-2023.

In the face of the challenges encountered by the Company in early 2022, Grant Schuetrumpf, CEO, said, "Yangaroo was proactive in its response in reducing overhead spending. To this end, the Company implemented cost control measures throughout the first half of the year, and this, in combination with one-time employment tax credits, resulted in a substantial increase in our EBITDA generation for the fourth quarter of 2022."

Finally, during the fourth quarter of 2022, the Company successfully amended its term loan facility ("Amendment") after breaching certain conditions of the agreement in the first half of 2022. As a result of the Amendment, Yangaroo is now in good standing with respect to its obligations with our senior lender. The Company also strengthened its cash and balance sheet positions with the closing of a non-brokered, unsecured, convertible debenture ("Convertible Debenture Financing") in the amount of CAD $500,000 (see press release dated December 13, 2022, for further details on the Amendment and Convertible Debenture Financing).

Q4 2022 Highlights

• Advertising Division
  • Experienced higher volumes and produced higher revenue across the Company's Advertising customers;
  • Increased volumes were attributed to the typical seasonality of television advertising, along with a noticeable uplift in creative television campaigns across all market sectors.
    
    
• Entertainment Group (Music & Awards Divisions)
  • Maintained steady customer volumes and revenue throughout the year.
    
    
• Technology
  • Advertising: user-interface redesign of our single player application to improve the look and feel of our order creation process to reduce the friction required for a release to be processed. Additional updates include the automation of analytics dashboards, analytics data, and various administrative workflow improvements;
  • Awards: continued development of our new Judge 3.0 platform as well as critical updates on the existing Awards platform to make it highly scalable to drive efficiency and its competitiveness
    
    
• Finance
  • Completed certain staff rationalizations and cost control initiatives;
  • Completed term loan facility Amendment;
  • Issued CAD $500,000 of Unsecured Convertible Debenture.

Looking into 2023, Yangaroo remains focused on executing its growth strategy, expanding its customer base, and continuing to invest in its platform. While the advertising and entertainment markets remain unstable and uncertain, the Company is well-positioned to capitalize on organic and non-organic growth opportunities.

Financial Highlights

About YANGAROO

Yangaroo is a technology provider in the media and entertainment industry, offering a cloud-based software platform for the management and distribution of digital media content. Yangaroo's Digital Media Distribution System ("DMDS") platform is a patented cloud-based platform that provides customers with a centralized and fully integrated workflow directly connecting radio and television broadcasters, digital display networks, and video publishers for centralized digital asset management, delivery and promotion. DMDS is used across the advertising, music, and entertainment awards show markets.

YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTC Pink: YOOIF.

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For YANGAROO Investor Inquiries:
Dom Kizek
Ph: (416) 534 0607 #162
dom.kizek@yangaroo.com

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 accuracy of this release.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward-looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

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