Newtopia (NEWU) investor relations material

Executive summary

• Achieved industry-leading participant engagement and clinically significant weight loss and A1C reductions, serving over 125,000 individuals across diverse populations.

• Operational enhancements and cost structure improvements are paving the way toward profitability in 2025, supported by a new US supplemental payvider partnership.

• Strategic focus on new partnerships, client renewals, and leveraging health AI and clinical discovery collaborations.

• Only provider in its space with Full-Plus CDC accreditation and industry-leading engagement rates, supporting both medication and non-medication-based interventions.

• Leveraging genetic data and AI to deliver personalized coaching and digital tools for chronic disease risk reduction and cost savings for payers.

Financial highlights

• Q3 2024 revenue was approximately C$986K–C$1.0 million, down from C$2.4 million year-over-year, mainly due to client loss and incentive changes.

• Gross profit for Q3 2024 was C$0.33–0.4 million, with a gross margin of 34%–37%.

• Selling, general, and administrative expenses improved 16% year-over-year to C$1.0 million.

• Technology and development expenses improved 18% year-over-year to C$0.4 million.

• EBITDA/adjusted operating loss for Q3 2024 was C$987,000, compared to a gain of C$21,000 in Q3 2023.

Outlook and guidance

• Targeting cash flow positivity and profitability in 2025, supported by new partnership channels and operational efficiencies.

• Anticipates reporting full results of the Heartland Whole Health Institute project in Q4 and publishing data in 2025.

• Focused on expanding innovation partnerships, integrating GLP-1 drugs, and leveraging health AI.

• Significant expansion opportunities exist within current client bases, with only 35% population access achieved to date.

• Positioned to benefit from the growing demand for GLP-1 drugs, as its platform is essential for sustainable outcomes and payer ROI.