Market Overview

Mene Inc. Reports Financial Results for First Quarter 2019

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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 first quarter ended March 31, 2019 ("Q1 2019").
All amounts are expressed in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS:

  • IFRS Revenue of $2.7 million, a $1.7 million (163%) increase
    year-over-year ("YoY"). Non-IFRS Adjusted Revenue of $2.9
    million, an increase of 151% YoY.
  • Gross Profit of $0.7 million, an increase of $0.5 million (298%) YoY.
  • Gross Margin expanded by 900 basis points, from 16% in Q1 2018 to 25%
    in Q1 2019.
  • Generated $0.3 million in Free Cash Flow in Q1 2019, the net of
    operating cash flow less capital expenditures.
  • Reduced Net Loss by 26% to $1.1 million from $1.5 million in Q1 2018.
    Non-IFRS Adjusted Loss decreased by 54% YoY to $0.6 million.
  • Sold 8,182 units of jewelry through 7,354 customer orders, an increase
    of 7,242 units (770%) and 6,469 orders (731%) respectively compared to
    Q1 2018.
  • Gold Weight Sold increased by 17 kilograms (115%) and Platinum Weight
    Sold increased by 9.6 kilograms (685%) from Q1 2018.
  • Strong Tangible Common Equity of $17.8 million, with $17.5 million in
    cash and cash equivalents and $16.2 million in short-term investments
    as of March 31, 2019. Tangible Common Equity increased by 58% YoY,
    demonstrating the Company's ability to access cash to grow the
    business and its high-margin and low fixed-cost business model.

OPERATIONAL HIGHLIGHTS:

  • Introduced 99 new product designs during the quarter.
  • 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 $20 million in a Debt Financing Round with a strategic lender.
       

IFRS Consolidated Income Statement Data
& Key
Performance Indicators (KPIs)
5

FY 2019   FY 2018  

July 11, 2017
to December
31, 2017 6

    Q1   Q4   Q3   Q2   Q1  
Revenue (CAD)     2,733,596   3,510,374   1,985,711   1,392,867   1,038,947   63,909
Gross profit (CAD)     678,814   983,840   208,408   229,461   170,486   12,143
Gross margin (%)     25%   28%   10%   16%   16%   19%
Total comprehensive loss     (1,166,288)   (2,681,362)   (1,691,124)   (919,106)   (1,348,026)   (1,702,048)
Non-IFRS Adjusted Revenue (CAD) 1     2,914,297   3,948,113   2,346,622   1,891,608   1,162,777   67,114
Non-IFRS Adjusted Gross Profit (CAD) 2     723,686   1,106,524   246,287   311,623   190,806   12,752
Non-IFRS Adjusted Loss 3     (577,218)   (469,487)   (1,136,242)   (758,895)   (1,251,091)   (1,639,950)
Total Shareholders' Equity (CAD)     17,833,109   18,516,087   10,077,520   11,251,166   11,878,195   13,192,937
Inventory balance (kg of gold) 4     222   244   135   131   90   54
Customer orders     4,437   6,729   3,994   2,389   951   74
Units of jewelry sold     8,182   9,111   6,168   2,920   941   80
Jewelry weight sold (total kg)     43   51   35   23   16   1
     

Notes:

(1) The Company adjusts its revenue by adding back the value of jewelry
that the Company bought back from customers, or was returned by
customers, and discounts given to customers. These adjustments are made
to assess the gross revenue before deducting these items from revenue
per IFRS. See Non-IFRS Measures for a full definition.

(2) The Company adjusts its gross profit by adjusting for Non-IFRS
revenue and the attributable weighted average cost of sales for the
value of jewelry that the Company bought back from customers, or was
returned by customers, and discounts given to customers. See Non-IFRS
Measures for a full definition.

(3) The Company adjusts its total comprehensive loss by adjusting for
Non-IFRS Adjusted Gross Profit, and removing the impact of non-cash
expenses, consisting of depreciation and amortization, stock based
compensation, and a one-time listing expense, the fair value of
5,984,750 shares issued for the amalgamation with Amador Gold Corp.'s
subsidiary in Q4 2018. See Non-IFRS Measures for a full definition.

(4) Inventory balances in kilograms of gold are calculated by taking the
total Canadian Dollar (CAD) inventory value at each quarter-end date,
and dividing the value by the CAD gold spot price per gram.

(5) The period July 11, 2017 to December 31, 2017 and the fiscal year
ended December 31, 2018 are audited figures. The period Q

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