Highmark Interactive Inc. — Interim / Quarterly Report 2022

Nov 29, 2022

Highmark Interactive Inc. Reports Q3 2022 Financial Results and Operational Developments

Toronto ON/November 29, 2022/Highmark Interactive Inc. (TSXV:HMRK) (the “Company” or “Highmark”), a global leader in digital health technologies, reports its fiscal third quarter results for the three and nine months ended September 30, 2022.

Operational Developments During Fiscal Third Quarter 2022

Highmark was excited to launch Phase 1 of the THINK AHEAD Pathways Program (“TAPP”) with the Emergency Room (“ER”) at a Greater Toronto Hospital (“GTA”) in June 2022 with the program being deployed and live as of July 2022. In October 2022, the Company announced that it is onboarding five additional hospitals in the Greater Toronto Area to the TAPP program, bringing the total hospitals onboarded to date to six. Highmark expects eight total locations by end of December 2022. Highmark expects to have integrated some of the largest hospital groups in Ontario. Highmark is increasing its patient network with hospital groups which is leading to interest from strategic partners for the Highmark Proprietary Network (“HPN”) of care practitioners to assist patients. The Company will provide material updates as they arise for partnership groups as those contracts are finalized.

CEO Sanjeev Sharma notes, “Our focus on core areas has enabled leadership to reduce costs across the organization while growing our sales funnel and generating greater revenue with higher net margins. It has also uncovered opportunities to deploy our technology faster, which is an area of great importance given the robust market demand for our solutions. As we head into 2023, we are pleased with the market affirmation and business model validation that we have seen to date, and we will continue our focus on growth and the rapid rollout of our core offerings.”

Phase 1 deployments are anticipated to generate annualized recurring revenue of $3 million by Q1 or Q2 of 2023. Phase 1 is anticipated to be an equal mix of SaaS revenue and clinical services. By the end of 2023, the rollout schedule targets a total of 10 ER’s generating approximately $10 million in annualized revenue.

Highmark continues to see strong interest for its Remote Physiological Monitoring (“RPM”) platform from practitioners and channel partners. RPM is a recently added reimbursement code by Medicare in the United States and now with many third party insurance providers. RPM provides the clinician with a tool for more precise care and better patient outcomes. Highmark’s EQ Balance is FDA-cleared Software as a Medical Device (“SAMD”) thus making it eligible for reimbursement by Medicare. Highmark’s team is exploring RPM partnerships across various verticals such as orthopedic surgeons, neuro surgeons, and mental health practitioners which could leverage Highmark’s FDA approved technology.

Financial Highlights as at and for the Three and Nine Months Ended September 30, 2022

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*EBITDA is calculated as loss before income taxes, non-cash interest expense, accretion expense, share-based

compensation, and depreciation and amortization.

Q3 2022 Highlights Include:

• Total revenue increased 455% and 403% for the three and nine months ended September 30, 2022, respectively, compared to the prior comparable period. The increase is mainly due to the acquisition of Complex Injury Rehab Inc. on November 9, 2021, which has generated clinical services revenues of $678,662 and $1,669,962 during the three and nine months ended September 30, 2022, respectively.

• The Company has reduced full time employee headcount since the beginning of the year as part of continued effort to drive cost savings, and gain synergy efficiencies as it focuses on subscription and SAAS sales.

• The Company has received approximately CDN $1,000,000 in funds from insiders, $400,000 of which was received subsequent to the end of Q3. The funds were used for the purposes of working capital to expedite sales and marketing initiatives for the THINK AHEAD pathways program and the continued expansion of HMRK’s FDA approved EQ software into the U.S.

About Highmark Interactive

Highmark Interactive was created to change the paradigm of testing and management for brain and mental health. Highmark's approach is focused on providing real-time data to health providers to support proactive, preventative interventions and targeted care planning to improve health outcomes.

In addition to a growing network of virtual, in-person and hybrid clinics. Highmark Interactive offers the world's first gamified, FDA cleared patient-led assessments as well as digital clinician-led assessments of neurofunction and balance. Together. The technology is used in more than 350 health organizations globally.

By unlocking insights, Highmark's platform enables precision medicine and creates a more contemporary model for delivering better outcomes in medical, mental health and rehabilitation services.

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

release."

Learn more: https://www.highmark.tech/

For further information:

Highmark Interactive Inc.

Sanjeev Sharma, President & CEO. sanjeev@highmark.tech or 1-855-969-5079

Investor Relations

ir@highmark.tech

SOURCE: Highmark Interactive Inc.