Carbeeza Inc V.AUTO

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Carbeeza continues to enjoy high levels of success in its onboarding of dealer partners. Since May 2021, the Company has achieved an average of 50% success rate of dealers that partner with Carbeeza who received a product demo. The vast majority of remaining dealerships ask to remain in the sales queue with an eye towards a partnership following the resolution of the significant new vehicle inventory crisis in North America. As of April 22, 2022, Carbeeza has fully onboarded 240 franchise dealerships in Western Canada with another 60 at various stages of the process. Inventory counts are also favorable, with 15,488 unique pieces of inventory on the Carbeeza platform. This represents 8.5% of Auto Trader’s national inventory count and 9.6%, 9.5% and 17.5% of Kijiji, Car Gurus and Hey Auto, respectively. This gap will continue to narrow as we enter the Ontario market. Carbeeza now has relationships with 18 of Canada’s largest inventory syndicators and it has added resources to ensure a successful roll-out.
 

Carbeeza has not commenced earning revenues. The Company anticipates that it will commence earning revenue in the second half of fiscal 2022 once it has completed its dealer on-boarding process. The original estimate of revenues commencing in the second quarter of fiscal 2022 has been revised to account for the impact of the global chip shortage on vehicle inventories, which impacts dealers' priority to participate in a value-add solution, like Carbeeza offers.