SATO Technologies Reports Results for Q1 2025

Toronto, Ontario--(Newsfile Corp. - May 28, 2025) - SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) (the "Company", or "SATO") a provider of high-density compute infrastructure, today announced its unaudited financial results for Q1 2025. The Q1 results were impacted by the relatively low price of Bitcoin, increased network difficulty, and scheduled maintenance on parts of the Company's electrical infrastructure; however, general and administrative expenses and overall costs continued to decline. Please refer to the Company's 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+ (www.sedarplus.ca) and are available on the Company's website (www.bysato.com).

Key Financial Highlights

• Net Loss of $0.89 million, compared to net income of $3.91 million in 2024

• Digital Assets Revenue decreased to $3.0 million (2024: $5.9 million)

• Operating Loss of $0.55 million (2024: operating income of $3.88 million)

• Gross Profit of $0.30 million, reflecting consistent mining performance

• Total Liabilities reduced by 15% to $8.3 million (December 31, 2024: $9.7 million)

• Shareholders' Equity decreased 13% to $7.3 million (December 31, 2024: $8.3 million)

• Digital Asset Holdings decreased to $2.90 million (December 31, 2024: $4.56 million)

"Q1 2025 was marked by temporary headwinds, including Bitcoin price volatility, higher network difficulty, and infrastructure upgrades. Despite these short-term impacts, we continued to strengthen our foundation by reducing costs and liabilities. The recent recovery in Bitcoin, combined with our planned strategic expansion into high-performance GPU infrastructure, positions SATO for long-term growth. We remain focused on operational efficiency, sustainable infrastructure, and enhancing shareholder value," said Romain Nouzareth, Chair and CEO of SATO.

Strategic and Operational Highlights

• Cost Reductions: The company has continued to decrease both operating expenses from $3.2 million in Q1 2024 to $2.7 million in Q1 2025, and general and administrative expenses from $0.85 million in Q1 2024 to $0.67 million in Q1 2025.

• Liabilities Reduction: Decrease of over $1.4 million in liabilities from the previous year end.

• Bitcoin Price Strength: The price of Bitcoin has recovered from USD$81,559 on March 31, 2025 to USD$109,461 on May 26, 2025.

SATO continues to explore new opportunities in AI compute infrastructure and high-performance GPU hosting in Canada and the rest of the world. The Company remains focused on:

• Reducing operational costs

• Expanding sustainable, sovereign infrastructure

• Enhancing shareholder value through disciplined capital management

SATO Technologies will host a live conference call on Monday June 2nd, 2025 at 10:00 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 Q1 2025, 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: Monday June 2nd, 2025
Time: 10:00 AM Eastern Time
Ask your questions in advance: https://forms.gle/zU6NyR2rS9Es9iVZA

Get the link for the Live Event: https://www.bysato.com/events

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"). The Company is listed on (TSXV: SATO) (OTCQB: CCPUF). To learn more about SATO, visit www.bysato.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 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253753