Market Overview

Mene Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year 2018

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Menē Inc. (TSXV:MENE) (OTC:MENEF) ("Menē" or the "Company"),
an online 24 karat investment jewelry brand, today announced financial
results for the fourth quarter and fiscal year ended December 31, 2018.
All amounts are expressed in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS:

  • Record IFRS Annual Revenue of $7.9 million in 2018, a $7.9 million
    (12,305%) increase Year-over-Year ("YoY"). Non-IFRS Adjusted
    Annual Revenue1 was also a company record of $9.3 million.
  • Record IFRS Quarterly Revenue of $3.5 million in Q4 2018, an increase
    of $1.5 million (77%) Quarter-over-Quarter ("QoQ"). Non-IFRS
    Adjusted Quarterly Revenue1 of $3.9 million was also a
    record in Q4 2018.
  • Consolidated IFRS Gross Profit of $1.6 million in 2018, including $1.0
    million in Q4, up $0.8 million (372%) QoQ. Non-IFRS Adjusted Gross
    Profit2 of $1.9 million in 2018, including $1.1 million in
    Q4 2018. All record highs.
  • Gross Margin expanded 1,800 basis points to 28% in Q4 as compared to
    10% in Q3 2018. The Gross Margin for the year ended 2018 was 20%.
  • Non-IFRS Adjusted Loss3 of $0.5 million in Q4 2018, a
    record low for the Company amidst record quarterly revenue and gross
    profit.
  • Sold 19,140 units of jewelry through 14,063 customer orders in 2018, a
    23,825% and 18,904% increase respectively compared to 2017.
  • Gold and platinum weight sold increased progressively each quarter. In
    Q4, gold weight sold increased by 10.2 kilograms (33%) and platinum
    weight sold increased by 4.9 kilograms (113%) from Q3 2018.
  • Q4 Basic and Diluted Net Loss per Share of nil, stable compared to
    loss of $0.01 per share in Q3 2018.
  • Tangible Common Equity of $18.5 million as of December 31, 2018, an
    increase of $8.4 million (84%) QoQ, demonstrating the Company's
    ability to raise capital and its high-margin and low fixed-cost
    business model.

2018 OPERATIONAL HIGHLIGHTS:

  • Officially launched Mene.com website and brand to the public on
    January 6, 2018
  • Introduced 164 new product designs over the course of 2018.
  • Ramped up production output by producing $9.7 million (173 kg) of gold
    and $1.9 million (55.2 kg) of platinum jewelry to meet increasing
    customer demands.
  • Expanded inventory level to 234 Gold Equivalent Kilograms as of
    December 31, 2018, an increase of 127% from Q3.
  • Completed separation from Goldmoney Inc. (TSX:XAU) and commenced
    trading on the TSX Venture Exchange (TSX-V) under the symbol "MENE" on
    November 6, 2018.
  • Unveiled myMENĒ, an intelligent and interactive jewelry customization
    technology and user experience.
  • Announced partnership with Affirm offering new credit alternative to
    U.S. customers, thereby further expanding potential sales with a
    different customer base.
  • Launched "Menē x", a new product category of limited-edition jewelry
    collections designed in collaboration with select creators, artists
    and tastemakers. Unveiled first collaboration with world-renowned
    fashion photographers Inez van Lamsweerde and Vinoodh Matadin ("Inez &
    Vinoodh").
  • Raised approximately $10 million in an Equity Funding Round in Q4
    2018, and $20 million in a Unique Gold-Note Funding Round in Q1 2019
    underwritten by Canaccord Genuity.
  • Registered nearly 7,000 independent customer reviews on
    mene.com/reviews
   

IFRS Consolidated Income Statement Data
& Key
Performance Indicators
5

FY 2018

July 11, 2017 to
December 31,
2017 6

  Q4   Q3   Q2   Q1
Revenue (CAD)   3,510,374     1,985,711     1,392,867     1,038,947     63,909  
Gross profit (CAD)   983,840     208,408     229,461     170,486     12,143  
Gross margin (%)   28 %   10 %   16 %   16 %   19 %
Total comprehensive loss (CAD)   (2,681,362 )   (1,691,124 )   (919,106 )   (1,348,026 )   (1,702,048 )
Non-IFRS Adjusted Revenue (CAD) 1   3,948,113     2,346,622     1,891,608     1,162,777     67,114  
Non-IFRS Adjusted Gross Profit (CAD) 2   1,106,524     246,287     311,623     190,806     12,752  
Non-IFRS Adjusted Loss 3   (469,487 )   (1,136,242 )   (758,895 )   (1,251,091 )   (1,639,950 )
Total Shareholders' Equity (CAD)   18,516,087     10,077,520     11,251,166     11,878,195     13,192,937  
Inventory balance (kg of gold) 4   244     135     131     90     54  
Customer orders   6,729     3,994     2,389     951     74  
Units of jewelry sold   9,111     6,168     2,920     941     80  
Jewelry weight sold (total kg)   51    
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