LITE ACCESS TECHNOLOGIES REPORTS Q2 2022 FINANCIAL RESULTS

VANCOUVER, BC, May 30, 2022 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSXV: LTE) (OTC: LTCCF), a world leader in the fibre optic products and advanced installation methodologies, today reported its financial results for the second quarter ended March 31, 2022.  The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.

FINANCIAL HIGHLIGHTS FOR Q2 2022:

• Total Q2 2022 revenue of $992,626 versus $2,030,877 in Q2 2021. The lower revenue was mainly attributable to decreased product sales and initial ramp up of the Brooks project, which negatively impacted the revenue generation for the quarter.
• Gross margin for Q2 2022 of $(167,369) compared to $(48,649) in Q2 2021. The decrease of gross margin was primarily attributed to higher construction costs, including labour, fuel and amortization costs;
• Operating expenses of $796,531 for Q2 2022, down 16% compared to $943,571 in Q2 2021;
• EBITDA* for the three months ended March 31, 2022 was $(692,772) versus $(659,049) in the comparative quarter;
• Net loss from continuing operations of $963,900 for Q2 2022 compared to loss of $992,220 in Q2 2021;
• Net comprehensive loss of $979,988 for Q2 2022 for compared to income of $3,154,823 for Q2 2021.

Second quarter revenues were negatively impacted by project delays and adverse weather conditions which decreased construction activities during the quarter.  Additionally, higher labour and fuel costs contributed to higher construction costs, providing a formidable headwind impacting financial performance. 

Interim CEO Greg Smith emphasized, "Helping our business turn the corner is Phase 1 construction underway for the City of Brooks' Next Generation Broadband Network, valued at $13.6 million and,  as construction takes place and with Phase 2 to immediately follow,  additional revenue-generating opportunities will arise whereby individual connections will become part of the overall build which we expect to positively impact our financials and sets us up to yield improved results in upcoming quarters."

 "As early as June we expect to receive our final dividend payment of approximately £274,000 (CAD$450,000) from UK business appointed administrator, FRP Advisory Trading Limited (see press release dated December 8, 2021)," added Mr. Smith.  "This potential non-dilutive capital will help bolster our balance sheet and give us runway as we rollout construction on fibre projects.  Our sales pipeline continues to fill with solid opportunities, and we are confident that Lite Access is on a better trajectory for the full fiscal year 2022 and into 2023."   

About Lite Access

Lite Access Technologies Inc. is a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.

As part of its suite of services Lite Access provides clients with integrated solutions or select components for the design and implementation of fibre optic networks.  Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout the United Kingdom, the USA and Canada as well as global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.

Lite Access' installation technology and proprietary products extend a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, businesses, government and educational institutions, and emergency response facilities. Lite Access remains flexible and innovative in its commitment to provide global clients and partners with the most cost effective and proven fibre connectivity solutions available.

*Non-IFRS Measures
EBITDA is a measure not recognized under IFRS. However, management of Lite Access believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock- based compensation, restructuring costs, impairment charges, other non-recurring gains or losses, onerous contract provision, and discontinued operations. Management believes EBITDA is a useful measure that facilitates period-to-period operating comparisons.

EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Lite Access' EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Lite Access posted on SEDAR (www.sedar.com).

Forward Looking Information

This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Lite Access uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Lite Access in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to Lite Access' expectations and predictions is subject to any number of risks, assumptions and uncertainties.  Many factors could cause Lite Access' actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things: risks and uncertainties described in Lite Access's most recent Management Discussion & Analysis (MD&A) for the financial year ended September 30, 2021 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, Lite Access undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

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 Lite Access Technologies Inc

Lite Access Technologies Inc., Greg Smith, Chairman & Interim CEO, Phone: [phone], 20108 Logan Avenue, Langley, BC V3A 4L6, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: [phone], Email: [email protected], Contact Financial Corp., 204 - 998 Harbourside Dr., North Vancouver, BC V7P 3T2