Engagement Labs Announces the Renewal of One the Largest OTT Media and Entertainment Companies

Client Renews TotalSocial® 13-Month Contract in Valued at CAD $172,000

  New Brunswick, NJ/Toronto, Ontario — August 31, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has renewed and will continue to provide its data and analytics to one of the premier media and entertainment, OTT and streaming video service provider in the U.S. The 13-month deal is valued at CAD $172,000. TotalSocial® has been instrumental to their successful marketing programs and subscription growth. “Media and entertainment is historically a highly conversational category, and we have witnessed an astonishing surge in data and talkworthiness of this sector over the recent months since COVID-19 dramatically changed people’s lifestyles,” said Ed Keller, CEO of Engagement Labs. “In today’s connected and data-rich world, we are pleased that our Client clearly sees the value of TotalSocial align with their sophisticated vision that demands relevant experiences from us to deliver actionable data.” “We are pleased to continue our partnership with an OTT industry leader to provide powerful data to drive their subscription growth,” said Steve Brown, President and CRO of Engagement Labs. “Engagement Labs’ consistent growth and leadership in catering to the media and entertainment industry demonstrates our ability to provide unique insights into consumer behavior and habits.”

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  About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Releases Q2 2020 Results

Toronto, Ontario — August 28, 2020 – Engagement Labs Inc. (TSXV: EL) released results for its second quarter ended June 30, 2020. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.   During second quarter, COVID-19 led to a significant reduction in marketing spend by major brands of the type who are our customers and with it a pull back in spending on services of the type we provide.  This had a revenue impact on our Q2 results. Second Quarter Financial Highlights
  • Total revenue decreased by 35% to $624,013 in Q2 2020 from $961,435 in Q2 2019.
  • Gross profit was $188,224 for Q2 2020, a decrease of 60% compared to $465,873 for Q2 2019. As a percentage of revenue, the gross margin decreased to 30% for Q2 2020 from 48% for Q2 2019.
  • EBITDA(1) loss increased by 40% or $146,508, to -$515,531 for Q2 2020 from -$369,023 for Q2 2019.
  • Non-GAAP Adjusted EBITDA(1) loss improved by 2% or $5,616, to -$312,670 for Q2 2020 from -$318,286 for Q2 2019.
  • Operating expenses decreased by 23% or $295,336, to $979,595 for Q2 2020 from $1,274,931 for Q2 2019.
  • Net loss for Q2 2020 decreased to -$735,190, down 6% or $49,332 from -$784,522 for Q2 2019.
  • Basic and diluted loss per share was ($0.00) for Q2 2020, compared to ($0.01) for Q2 2019.
  • As at June 30, 2020, the Company was holding cash of $1,151,002 compared to $844,107 as at December 31, 2019.
Six-month Period Financial Highlights
  • Total revenue decreased by 15% to $1,596,432 in H1 2020 from $1,872,803 in H1 2019.
  • Gross profit was $645,592 for H1 2020, a decrease of 25% compared to $855,836 for H1 2019. As a percentage of revenue, the gross margin decreased to 40% for H1 2020 from 46% for H1 2019.
  • EBITDA(1) loss improved by 2% or $22,120, to -$1,216,263 for H1 2020 from -$1,238,383 for H1 2019.
  • Non-GAAP Adjusted EBITDA(1) loss improved by 26% or $704,974, to -$1,964,314 for H1 2020 from -$2,669,288 for H1 2019.
  • Operating expenses before impairment loss on goodwill decreased by 26% or $704,974, to $1,964,314 for H1 2020 from $2,669,288 for H1 2019.
  • Net loss for H1 2020 decreased to -$1,629,301, down 21% or $424,357 from -$2,053,658 for H1 2019.
  • Basic and diluted loss per share was ($0.01) for H1 2020, compared to ($0.02) for H1 2019.
1 EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
“We were off to strong start of the year, as evidenced by the TotalSocial revenue growth of 11% in Q1 ’20 and a 64% reduction in our Non-GAAP Adjusted EBITDA loss,” said Ed Keller, CEO.  “Then COVID-19 hit and had a substantial impact on our clients and thus on Engagement Labs.  As investment in marketing by Fortune 500 companies dropped by double digits and new growth initiatives gave way to hunkering down to survive, our sales momentum stalled leading to the revenue decline we saw in Q2.“Thankfully, we had implemented major cost reduction initiatives that led to a 23% reduction in costs in Q2 and a 6% improvement in our net loss.  As we look to the rest of the year we are encouraged by recent reports in the press about ad and marketing spending picking back up in Q4 and returning to growth in 2021, but it is impossible to determine the extent or length of financial implications of these events for the moment.” Keller continued, “The Company’s cash position has been helped by financial relief from the Canadian and US governments in the amount of approximately $776,000 as noted in our Financial Statement.”

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither 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. For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com  

Engagement Labs Renews Contract with Major Telecom Company

Client Renews License of TotalSocial® Platform in One Year Deal Valued at CAD $243,000

  New Brunswick, NJ/Toronto, Ontario — August 18, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has renewed with one of the largest Fortune 500 telecommunications in the U.S. Engagement Labs will continue to provide data and analytics to the Client’s residential services division that includes cable television, internet, telephone and wireless services. The deal is a one-year contract valued at CAD $243,000. Following a successful year of engagement, the Client will retain the use of the TotalSocial® platform to strengthen their business customer acquisition marketing, earned media evaluation, and competitive intelligence. “We’re pleased that our client recognizes the value of TotalSocial’s data and how it uniquely supports their predictive analytics and modeling techniques for better marketing,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs. “Our data and execution all contributed to the successful renewal of this contract and to make a commitment in 2020 speaks to the significance that our platform offers companies.” “Consumer conversation plays a very strong role in the telecom sector and it represents an important vertical for Engagement Labs,” according to Ed Keller, CEO of Engagement Labs. “We look forward to delivering increased value over the coming year.”  

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Secures New Contract with a Major U.S. Broadcast Network’s Sports Division

Client Secures TotalSocial® Platform in One Year Deal Valued at Approximately CAD $80,000

  New Brunswick, NJ/Toronto, Ontario — August 14, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has secured a one-year TotalSocial® contract valued at approximately CAD $80,000 with a sports division of a major U.S broadcasting company. TotalSocial will provide data and strategy across multiple sports and team coverage including baseball and basketball. Engagement Labs will provide the Client with a comprehensive and aggregated view of sports fans for all major sports leagues, teams and networks. The Client finds value in TotalSocial data and analytics that Engagement Labs provides as they are proven to be predictive of consumer engagement and sales, as well as other key business performance indicators such as TV viewing and digital engagement. “Sports and entertainment are two of the most popular sectors. Rain or shine, win or lose, even during pandemic, fans are always there – talking about and standing by their teams. Sports marketers, media companies and brands are looking to our data to analyze and understand of how people are talking about them, both on and offline even when they’re sheltered in place,” said Ed Keller, CEO at Engagement Labs. “Marketing works best when it drives conversations across all media, and we are pleased to work with our Client to help measure the effects of content for their leading sponsors.” “We are very pleased to welcome a new sports media company to our roster of clients. As leagues and broadcasters restart their season and coverage, TotalSocial data provides unique data and insights of a challenging and complicated marketplace,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs.

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Neither the 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Grows Media & Entertainment Sector with Three New Clients

Total Client Initial Engagements Valued at Approximately CAD $100,000

  New Brunswick, NJ/Toronto, Ontario — August 11, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it continues to grow and diversity its roster of clients in the media & entertainment sector, by recently winning first time TotalSocial® engagements with three US media companies: one each in radio broadcast, print and film. Each first-time engagement introduces the new Clients to experience firsthand the industry leading TotalSocial platform’s ability to help achieve their goals, including improved marketing ROI and growth in top line revenue. The combined deals valued at approximately CAD $100,000. “It’s a privilege to work with these important clients in the media sector, and we are excited to grow and deepen the relationships,” said Ed Keller, CEO of Engagement Labs. “Engagement Labs has been chosen to deliver unique data and insights that can fuel our Clients’ growth and help provide a pathway to success. When they win, we win.”   “The media and entertainment industry continues to shift and change rapidly, and TotalSocial is a vital tool for helping media clients to leverage our data and analytics as the country pivots and begins charting a course toward economic recovery,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs.    

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Intends to Relocate Its Registered Office From Quebec To Ontario

MONTREAL, Quebec — June 26, 2020 — Engagement Labs Inc. (TSXV: EL) announced today that, subject to shareholder approval, which is anticipated, it intends to relocate its registered office from Quebec to Ontario. A Special Meeting of Shareholders will be held virtually via Zoom in early August to approve the relocation. Meeting materials will be sent to shareholders in due course.  

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Releases Q1 2020 Results

MONTREAL, Quebec — June 19, 2020 — Engagement Labs Inc. (TSXV: EL) released results for its first quarter ended March 31, 2020. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.   First Quarter Financial Highlights
  • TotalSocial® revenue increased by 11% to $972,419 in Q1 2020 from $878,302 in Q1 2019.
  • Total revenue increased by 7% to $972,419 in Q1 2020 from $911,368 in Q1 2019.
  • Gross profit was $457,368 for Q1 2020, an increase of 17% compared to $389,963 for Q1 2019. As a percentage of revenue, the gross margin increased to 47% for Q1 2020 from 43% for Q1 2019.
  • EBITDA(1) loss improved by 19% or $168,628, to -$700,732 for Q1 2020 from -$869,360 for Q1 2019.
  • Non-GAAP Adjusted EBITDA(1) loss improved by 64% or $359,371, to -$203,494 for Q1 2020 from -$562,865 for Q1 2019.
  • Operating expenses (including an impairment loss on goodwill of $361,134) decreased by 3% or $48,504, to $1,345,853 for Q1 2020 from $1,394,357 for Q1 2019.
  • Net loss for Q1 2020 decreased to -$894,111, down 30% or $375,025 from -$1,269,136 for Q1 2019.
  • Basic and diluted loss per share was ($0.00) for Q1 2020, compared to ($0.01) for Q1 2019.
  • As at March 31, 2020, the Company was holding cash of $591,764 compared to $844,107 as at December 31, 2019.
1 EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.   “I am pleased with TotalSocial revenue growth of 11% in Q1 ‘20 vs the same period a year ago, and also that our cost containment activities have led to a four point improvement in gross margin and a 64% reduction in our Non-GAAP Adjusted EBITDA loss – which is the lowest since the launch of TotalSocial —  both of which have been priorities for us,” said Ed Keller, CEO.  “We understand that COVID-19 and the economic recession in the US and around the world will lead to a challenging business environment, so operating as efficiently as possible is a major priority for us as it is for so many companies in this environment.  While we are encouraged by these Q1 2020 results, on top of our performance improvement in 2019, COVID-19 has led to a significant reduction in marketing spend by major brands of the type who are our customers and with it a pull back in spending on services of the type we provide and this will have a revenue impact on our Q2 results.  We are encouraged by recent reports in the press about ad and marketing spending picking back up in Q3 and Q4, but it is impossible to determine the extent or length of financial implications of these events for the moment.” Keller continued, “Subsequent to Q1 the company has received financial relief from the Canadian and US governments in the amount of approximately $710,000, as noted in our Financial Statement.”

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither 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. For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com  

Leading U.S. Insurance Provider Signs TotalSocial® Contract

One-Year Engagement Contract Valued at CAD $400,000

  NEW BRUNSWICK, NJ and MONTREAL, QC — May 20, 2020 – Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has signed a new client which is one of the largest and top providers of insurance in America. The contract is a one-year agreement with a total value of CAD $400,000. It follows a proof of concept engagement, previously announced, and has options to extend the contract for additional years. The TotalSocial® platform now serves 13 verticals with the addition of insurance. “In today’s challenging environment, we are delighted that our data and platform is to be used by our Client to make key strategic decisions regarding their marketing efforts. Our Client, one of the country’s largest advertisers, is using TotalSocial across several marketing initiatives including targeting demographics and real-time campaigns effectiveness evaluation,” said Ed Keller, CEO of Engagement Labs. “The insurance vertical is a very competitive industry with a strong emphasis on marketing performance,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs. “The fact that TotalSocial is being used by a leader in the industry speaks to the impact that it has on marketing results and business performance.” To learn more how to improve your marketing ROI and increase sales through social intelligence, reach out at: totalsocial@engagementlabs.com.

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  About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Releases FY 2019 Audited Results

MONTREAL, Quebec — May 14, 2020 — Engagement Labs Inc. (TSXV: EL) released results for its fiscal year ended December 31, 2019, and announces that due to COVID 19 circumstances it will delay filing its first quarter interim financial statements and its management discussion and analysis report for the three-month period ended March 31, 2020 until on or about June 19, 2020. Audited consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.   Fiscal year 2019 Audited Results Released
  • TotalSocial® revenue was $4,016,667 for the year ended December 31, 2019, an increase of 16% compared to $3,451,300 for the year ended December 31, 2018.
  • Total revenue, including both TotalSocial® and EL legacy products, was $4,083,497 for the year ended December 31, 2019, an increase of 3% compared to $3,973,704 for the year ended December 31, 2018
  • Gross profit was $2,006,774 for the year ended December 31, 2019, an increase of 10% compared to $1,818,527 for the year ended December 31, 2018. As a percentage of revenue, the gross margin was 49% for the year ended December 31, 2019, an increase of 7% compared to 46% for the year ended December 31, 2018.
  • Non-GAAP Adjusted EBITDA(1) loss was -$2,070,568 for the year ended December 31, 2019, an improvement of 36% compared to -$3,214,308 for the year ended December 31, 2018.
  • EBITDA(1) loss was -$4,174,041 for the year ended December 31, 2019, an increase of 4% compared to -$4,030,950 for the year ended December 31, 2018.
  • Operating expenses were $6,813,918 for the year ended December 31, 2019, an increase of 4% compared to $6,533,005 for the year ended December 31, 2018. Excluding impairment loss on goodwill and gain on extinction of debt and equity components of convertible debentures, the non-GAAP operating expenses were $5,664,698 for the year ended December 31, 2019, a decrease of 13% compared to $6,533,005 for the year ended December 31, 2018.
  • The net loss for the year ended December 31, 2019 decreased to -$5,290,087, down 4% or $222,577 from -$5,512,664 for the year ended December 31, 2018. Basic and diluted loss per share was ($0.03) for the year ended December 31, 2019, compared to ($0.06) for the year ended December 31, 2018.
  • As at December 31, 2019, the Company was holding cash of $844,107 ($906,455 as at December 31, 2018) and had no cash in escrow ($200,793 as at December 31, 2018).
  Fourth Quarter Financial Highlights
  • Revenue of $1,167,785 for Q4 2019 increased 12% from $1,042,909 in Q3 2019, and increased by 3%, from $1,139,156 for Q4 2018.
  • Gross margin for Q4 2019 remained stable from Q3 2019 at 52%, and it decreased from 54% in Q4 2018.
  • Operating expenses, before non-operational expenses, have decreased to $1,088,424 in Q4 2019, down 43% or $818,562 from $1,906,986 in Q3 2019, and down 39% or $685,820 from $1,774,244 in Q4 2018.
  • Excluding non-operational expenses, the net loss before income taxes has decreased to -$421,241 in Q4 2019, down 69% or $945,805 from -$1,367,046 in Q3 2019, and down 70% or $990,056 from -$1,411,297 in Q4 2018.
  • Non-GAAP Adjusted EBITDA(1) loss of -$270,072 for Q4 2019, representing an improvement of $649,273 from -$919,345 for Q3 2019, and an improvement of $490,340 from -$760,412 for Q4 2018.
  • EBITDA(1) loss of -$1,732,637 for Q4 2019, representing an increase of -$529,616 from -$1,203,021 for Q3 2019, and an increase of $695,780 from -$1,036,857 for Q4 2018.
 

1 EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

  “I am pleased with TotalSocial revenue growth of 16% in FY 2019, which reflects continuing acceptance of our platform among our Fortune 500 client base.  Also, we were successful at reducing our operating expenses by 13% and continue to focus on cost reduction in order to achieve cash flow break even,” said Ed Keller, CEO.   Equity Grant In order to preserve cash, the Company implemented a salary deferral program for employees and management that took affect March 15, 2020. In connection with this and in accordance with its Stock Option Plan and RSA Plan, the Company granted 3,350,000 stock options and 3,200,000 RSAs to employees and management of the Company, of which 2,300,000 stock options and 2,200,000 RSAs were granted to four officers of the Company. The stock options have an exercise price of $0.05 per share and a term of five years.   2020 First Quarter Interim Financial Statements The Company announces that due to COVID 19 circumstances it will delay filing its first quarter interim financial statements and its management discussion and analysis report for the three-month period ended March 31, 2020 until on or about June 19, 2020. EL is relying upon temporary relief granted by the Autorité des marches financiers (AMF) allowing reporting issuers to extend certain continuous disclosure filing deadlines occurring during the period March 23, 2020 to June 1, 2020 by 45 days.   Management and other insiders of the company are subject to an insider trading black-out policy until the delayed filings are completed, reflecting the principles in section 9 of National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.

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About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Engagement Labs Postpones Filing of Annual Financial Statements

MONTREAL, Quebec — April 27, 2020 – Engagement Labs Inc. (TSXV: EL) (the “Company”) announces that due to COVID-19 circumstances it will delay filing its annual financial statements and its annual management discussion and analysis until on or about May 15, 2020. The Company is relying upon temporary relief granted by the Autorité des marches financiers (AMF) allowing reporting issuers to extend certain continuous disclosure filing deadlines occurring during the period March 23, 2020 to June 1, 2020 by 45 days. Management and other insiders of the company are subject to an insider trading black-out policy until the delayed filings are completed, reflecting the principles in section 9 of National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. The Company confirms that there have been no significant events affecting its business since the filing of its 2019 third quarter interim financial statements on November 26, 2019.

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither 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.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com