Mene Inc. Reports Financial Results for Third Quarter 2022

Mene Inc. (TSX-V:MENE) (US:MENEF) (“Mene” or the “Company”), an online 24 karat jewelry brand, today announced financial results for the third quarter ended September 30, 2022. All amounts expressed herein reflect Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS

• IFRS Revenue of $5.0 million and Non-IFRS Adjusted Revenue of $6.7 million, a decrease of 5% and an increase of 4% respectively Year-over-Year (“YoY”).
• IFRS Gross Profit of $1.1 million.
• Generated Total Comprehensive Income of $1 million, an increase of 85% YoY.
• Operating Expenses as a percentage of Revenue steady at 29%.
• Average Order Value of $1,569.3, an increase of 3% Quarter-over-Quarter (“QoQ”).
• Tangible Common Equity of $17.4 million, an increase of 6% QoQ.
• Sold 56 kilograms of jewelry through 4,175 customer orders.
• Outstanding Customer Order Wait List of $4.4 million as of September 30, 2022.

OPERATIONAL HIGHLIGHTS

• Presented a curated collection of jewelry to tastemakers and journalists during the Paris Couture Week in July 2022, hosted by co-founder Diana Widmaier Picasso.
• Was featured in Forbes, Elle France, Elle Style, Madame Figaro, L’OFFICIEL, Le Point, and Fashion Network.
• Sales to Returning Customers attributed to 65% of total sales during the quarter, due to great customer satisfaction.
• Increased Inventory Balance by 43% QoQ to the equivalent of 238 kilograms of gold.
• Completed the acquisition of a manufacturing facility in the U.S. in October 2022.
• Registered more than 32,100 independent customer reviews on mene.com/reviews.

STATEMENT FROM FOUNDER & CEO, ROY SEBAG:

Mene’s performance was impressive this quarter. The Company produced over $1 million of comprehensive income and grew its tangible capital by $1 million. On the revenue side, we experienced a slowdown in our growth rate which has been expected given the worsening economic conditions. However, it is important to note that Non-IFRS Adjusted Revenue grew by 4% YoY. We now head into our most important quarter of the year with sufficient levels of inventory to meet heightened customer demand. Since the end of the quarter, we completed the acquisition of our new manufacturing facility in the US and have already consolidated this operation into our organizational structure. One of our senior executives, Jason Power, has been doing an exceptional job in leading this project. This new operation will allow us to scale our productive capacity and manufacture approximately 20-30% more units of jewelry per year. On the public relations side, we are seeing an increase in endorsements and earned media coverage primarily in Europe. With each passing day, the brand is becoming more established and well respected leading to more frequent requests from fashion journalists and editors to use our jewelry in editorial campaigns.

Finally, I would like to say a few words about the general economic environment as it relates to Mene and our long-term potential. While I continue to believe that G7 economies are heading into a prolonged economic recession, I feel that Mene will do well and perhaps even thrive in the coming years. The company has demonstrated the resiliency of its business model, prudent operational discipline, and the know-how to build an enduring brand. I have searched and not found another example out there of a 5-year-old jewelry brand that has achieved so much, so transparently as a public company, and with such disciplined capital management. We are clearly on the right track and I see my task as CEO to keep us firmly on this path towards the ultimate destination, which is to truly become a household luxury brand. A brand everyone in the world may come to know. Of course, this is still a dream and there is much work ahead but I felt it necessary to share my thoughts on this matter with our shareholders. In a word, I’ve never been more optimistic about Mene. We wish all our clients, employees, and their families a wonderful holiday season.

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

Non-IFRS Adjusted Revenue is a non-IFRS measure. The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders not yet delivered, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items per IFRS revenue. The closest comparable IFRS measure is revenue.

Non-IFRS Adjusted Income (loss) is a non-IFRS measure. Non-IFRS Adjusted Income (Loss) is a non-IFRS measure, calculated as total comprehensive income (loss), excluding depreciation and amortization, stock-based compensation, accretion, revaluation of metal loan, loss on debt retirement and translation gain or loss. The closest comparable IFRS measure is total comprehensive income (loss).

Tangible Common Equity is a non-IFRS measure. It is calculated as total shareholder’s equity excluding intangible assets.

For a full definition of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Non-IFRS Financial Measures" in the Company's MD&A for the quarter ended September 30, 2022.

About Mene Inc.

Mene crafts pure 24 karat gold and platinum jewelry that is transparently sold by gram weight. Through mene.com, customers may buy jewelry, monitor the value of their collection over time, and sell or exchange their pieces by gram weight at prevailing market prices. Mene was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to restore the relationship between jewelry and savings. Mene empowers consumers by marrying innovative technology, timeless design, and pure precious metals to create pieces which endure as a store of value.

For more information about Mene, visit mene.com.

Forward-Looking Statements

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. In particular, without limiting the foregoing, this news release includes forward looking information pertaining to: (i) manufacturing capacity, integration and scaling of the Company’s jewelry operations; (ii) the Company’s competitive position and future prospects within the jewelry industry and globally; (iii) the economy and market conditions;(iv) increased media exposure in Europe or otherwise; and (v) the sufficiency of the Company’s working capital and growth prospects.

This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the inability to successfully develop or integrate jewelry manufacturing and distribution facilities; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 and other infectious diseases presenting as major health issues on the price of precious metals, capital market conditions, restriction on labour and international travel and supply chains; failure to comply with environmental and health and safety laws and regulations; operating or technical difficulties in connection with the manufacture, sale and distribution of jewelry; actual audited results differing from reported unaudited results; global economic climate; dilution of the Company’s shares; the Company’s limited operating history; future capital needs and uncertainty of raising capital; the competitive nature of the jewelry industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology and manufacturing change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.

Neither 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221128005197/en/