Plurilock Security Inc. Reports Record First Quarter Fiscal 2025 Financial Results

• 178% year-over-year increase in Critical Services revenue

• 28% year-over-year increase in Gross Profit to $2.3 million

Vancouver, British Columbia--(Newsfile Corp. - June 2, 2025) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) ("Plurilock" or the "Company"), a global cybersecurity solutions provider, announces its financial results for the three months ended March 31, 2025 ("Q1 2025"). All dollar figures are stated in Canadian dollars, unless otherwise indicated.

"2025 is off to a strong start, driven by our corporate strategy and focus on Critical Services," said Ian L. Paterson, CEO of Plurilock. "We're seeing solid pipeline momentum for new Critical Services engagements which grew 178% over the same period last year, fueled by both customer referrals and partner-led opportunities. As more organizations seek hands-on expertise to manage today's complex threat landscape, Plurilock is increasingly recognized for our expertise in building and maturing security and data protection programs that deliver meaningful, long-term value for our clients."

Q1 2025 Financial Highlights

• Total revenue for the three months ended March 31, 2025, was $19,040,614 as compared to $12,835,308 for the three months ended March 31, 2024. Revenue for the three months ended March 31, 2025, is higher than the comparative period as a result of the timing on a few large orders, and significant growth in professional services along with revenue recognition of software over time.

• Comparable gross sales bookings under previous accounting interpretations would have been $11,720,167 and $11,254,274 for the three months ended March 31, 2025 and 2024, respectively (unaudited).

• Hardware and systems sales revenue for the three months ended March 31, 2025 totalled $2,720,232, compared to $1,362,232 respectively in the period ended March 31, 2024. Software, license, and maintenance sales revenue for the three months ended March 31, 2025 was $12,405,475 versus $10,065,278 in the comparative year-ago period. Professional services revenue was $3,914,907 for the three months ended March 31, 2025, compared to $1,407,798 in the three months ended March 31, 2024.

• Hardware and systems sales revenues for the three months ended March 31, 2025 accounted for 14.3% of total revenues, compared to 10.6% for the three months ended March 31, 2024. Software, license and maintenance sales revenues for the three months ended March 31, 2025 accounted for 65.2%, compared to 78.4% for the three months ended March 31, 2024. Professional services revenue for the three months ended March 31, 2025 accounted for 20.6% of total revenues, compared to 11.0% for the three months ended March 31, 2024.

• Gross margin for the three months ended March 31, 2025 was 12.2%, compared to 14.2% for the three months ended March 31, 2024.

• Adjusted EBITDA for the three months ended March 31, 2025 was $(1,274,519), compared to $(1,034,999) in the prior year for the same period.

• Cash and cash equivalents and restricted cash on March 31, 2025 was $2,661,180, compared to $1,419,463 on December 31, 2024. The Company has an additional $7,800,075 in unused credit facilities.

Q1 2025 Operational Highlights

• January 27, 2025: Plurilock Closes Over-Subscribed Special Warrant Offering for gross proceeds of $4,983,650

• January 28, 2025: Plurilock Appoints Former Deputy National Security Advisor to the British Prime Minister to Its Industry Advisory Council, Elizabeth Sizeland

• February 18, 2025: Multiple High-Profile Government Sales in the U.S. and Canada for a total combined value of CAD $1.3 Million

• February 20, 2025: US$800,000 Services Contract with Leading U.S. Hospital

• February 26, 2025: Plurilock Launches New Offensive Security Offerings to Strengthen Cyber Resilience

• March 10, 2025: CAD$1.4 million contract with Canadian Federal Government

• March 14, 2025: Warrants exercised through Q1 2025 generated gross proceeds of $1,864,095 to the Company's working capital

• March 25, 2025: Plurilock and Forcepoint partner to strengthen cybersecurity solutions and expand market reach

• April 2, 2025: Plurilock Secures $5.9 Million in new contracts across several Federal and Public Sector Clients

Outlook

As cyber threats grow more frequent and severe, organizations are under increasing pressure to improve visibility, strengthen defenses, and respond swiftly. Plurilock is well positioned to help meet that demand and deliver consistent performance with tailored, operational cybersecurity support.

As such, Plurilock reiterates the outlook provided on May 1, 2025. The Company began 2025 with a solid foundation and a clear strategy centered on delivering long-term value. Critical Services continue to gain traction, with several successful implementations driving increased referrals and inbound interest. This demand underscores Plurilock's growing reputation as a trusted cybersecurity provider.

The Company remains focused on scaling high-margin Critical Services, acquiring additional Critical Services customers, converting project-based work into long-term recurring service relationships, and growing its presence across North American commercial and public sector markets. This strategy is working as the Company is experiencing a notable increase in word-of-mouth referrals from customers and demand pull from partners.

Financial Results Webinar

Plurilock CEO Ian L. Paterson and CFO Scott Meyers will host a live webinar on Tuesday, June 3 at 11 am ET / 8 am PT to review the results, provide Company updates and answer investor questions following the presentation.

Plurilock invites shareholders, analysts, investors, media representatives, and other stakeholders to attend the earnings webinar to discuss Q1 2025 results.

Webinar Details

DATE: Tuesday June 3, 2025
TIME: 11 am ET / 8 am PT
WEBINAR: Register

Summary of Key Financial Metrics

Summary of Accounting Changes

In its efforts to explore a possible listing or other corporate activities in the US, the Company installed new auditors, MNP, to streamline the process of doing an audit under both Canadian (CPAB) and U.S. standards (PCAOB). Under review with the Company's new auditors, the Company has changed how it recognizes revenue. The changes were the following:

1. Resell software is now recognized over the life of the contract as opposed to at a single point in time. This change reflects the nature of most modern software offers that have some sort of ongoing services component attached to the software.

2. Hardware Vendor Maintenance and Support is now treated as an Agent transaction as opposed to a Principal transaction. Agent transactions recognize only the net amount of revenue (revenue less costs) as revenue. Principal transactions recognize gross revenue as revenue and the costs as Cost of Goods Sold (COGS).

The prior quarter ending Q1 2024, was restated for these changes. Further information may be found in the notes of the financial statements.

Note:

⁽¹⁾ Non-GAAP measure. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines EBITDA as earnings before interest, taxes, and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation, financing, and acquisition related expenses. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

Non-IFRS measures

This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about operating performance. Plurilock defines EBITDA as net income or loss before interest, income taxes, depreciation, and amortization. Adjusted EBITDA removes non-cash share-based compensation, financing, and acquisition-related expenses from EBITDA. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the adjustments do in fact reflect the underlying financial results of Plurilock's business, and these effects should not be ignored in evaluating and analyzing Plurilock's financial results. Therefore, management believes that Plurilock's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Readers should refer to the Company's most recently filed MD&A for a more detailed discussion of these measures and their calculations.

Quarterly Filings

Management's Discussion and Analysis and unaudited Condensed Interim Consolidated Financial Statements and the notes thereto for the three months period ended March 31, 2025 can be obtained from Plurilock's corporate website at www.plurilock.com and under Plurilock's SEDAR+ profile at www.sedarplus.ca.

About Plurilock

Plurilock sells cybersecurity solutions to the United States and Canadian Federal Governments along with Global 2000 companies. Through these relationships, Plurilock sells its unique brand of Critical Services, aiding clients with our expertise to defend against, detect, and prevent costly data breaches and cyberattacks.

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

Forward-Looking Statements

This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") related to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, and unforeseen events and developments. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company's business are more fully discussed under the heading "Risk Factors" in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR+ at www.sedarplus.ca.

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