Burnaby, British Columbia--(Newsfile Corp. - August 6, 2025) - Tantalus Systems (TSX: GRID) (OTCQX: TGMPF) ("Tantalus" or the "Company"), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, is pleased to announce its financial and operating results for the three-month period ended June 30, 2025.

All amounts presented in this news release are in United States dollars ("U.S. dollars") and all amounts presented in the attached financial tables are in thousands of U.S. dollars, unless otherwise noted.

Q2 2025 FINANCIAL HIGHLIGHTS

• Revenue: The Company increased revenue to $13.1 million, reflecting 22% year-over-year growth. Revenue increased across both the Connected Devices & Infrastructure ("Connected Devices") and the Utility Software Applications & Services ("Software and Services") segments during the quarter with growth tied to scaling the core business while the Company continues to build momentum with the TRUSense Gateway™. Recurring Revenue¹ increased to $3.2 million and represented 25% of total revenue in the quarter.

• Annual Recurring Revenue ("ARR")¹ Growth: ARR grew by over 11% year over year to $13.3 million as of June 30, 2025 (June 30, 2024: $12.0 million) which set a new milestone for the Company.

• Gross Profit Margin¹: The Company generated 53% Gross Profit Margin which continues to exceed the Company's long-term target and reflects the initial impact of tariffs as well as the product mix during the quarter.

• Net Loss: The Company generated a net loss for the period of $903,000 reflecting an improvement on a comparative basis from the prior year period loss of $1.0 million.

• Diluted Loss per Share: Diluted loss per share was $0.02, which was unchanged from the prior year period.

• Adjusted EBITDA¹: The Company delivered positive Adjusted EBITDA of $510,000, reflecting an improvement as compared to negative $174,000 in the prior year period.

• Cash Flow from Operations: The Company's Cash Flow from Operating Activities was negative $759,000 compared to positive $475,000 in the prior year period. The year-over-year decline is the result of seasonal changes in working capital, investments in sales and marketing, and ramping up production for the TRUSense Gateway.

• Liquidity: At June 30, 2025, Tantalus had available liquidity of approximately $19.7 million consisting of $11.2 million in cash and borrowing availability of $8.5 million under its current revolving line of credit facility with Comerica. During the quarter, the Company fully repaid the $3.7 million outstanding balance on the Comerica facility.

"The record revenue generated in the second quarter of a calendar year is a testament to the continued hard work and dedication of our team and our commitment to a data-centric approach to grid modernization which is resonating across our target customer base," said Peter Londa, President & CEO of Tantalus. "Our grid modernization platform now includes the TRUSense Gateway, which is gaining traction with an increasing number of utilities seeking to leverage existing metering infrastructure, gather additional power quality data, manage and shift peak load, and support broadband initiatives. We are also witnessing the adoption of our AI-driven TRUGrid™ Analytics offering as demonstrated by the recent selection by a Joint Action Agency to support its membership with advanced grid modernization capabilities. Collectively, our grid modernization platform is helping utilities pinpoint vulnerabilities and prioritize their investments to improve the efficiency, reliability and resiliency of distribution grids."

OTHER KEY DEVELOPMENTS

• Sales Order Conversion: During the second quarter, the Company converted $24.6 million in orders, the highest amount converted during any quarter in the Company's history. The record result included the initial order to deploy the TRUSense Ethernet Gateway at EPB and the largest ERT-overlay migration deployment in the Company's history. Through the first half of 2025, the Company has converted $44.1 million in orders from its pipeline, representing 34% year-over-year growth.

• Growth of User Community: The Company added 4 new utilities in Q2 2025, demonstrating a continued ability to convert new accounts from its sales pipeline.

• TRUSense Gateway Progress: As of the date of this news release, the Company has secured initial orders from 45 utilities to trial, pilot and deploy the TRUSense Gateway. The adoption of the TRUSense Gateway is being driven by a combination of existing customers seeking to enhance deployments of Tantalus' broader offerings and utilities that are ordering from the Company for the first time in order to leverage the capabilities of these devices and other Tantalus solutions.

• Expansion of TRUGrid Analytics: Tantalus secured a deployment of the TRUGrid Analytics offering by a Joint Action Agency ("JAA"), the Indiana Municipal Power Agency ("IMPA"), that will be making the capabilities available to all 19 of its member utilities participating in IMPA's AMI program with the Company. This deployment marks the first time a JAA is making AI-driven analytics available to its full membership.

• Imposition of U.S. tariffs: On April 5, 2025, the United States ("U.S.") Government implemented initial tariffs of 10% on products imported from the Philippines. Subsequent to the end of the second quarter, the U.S. Government announced an agreement with the Government of the Philippines to modify the tariff rate to 19% on products imported from the Philippines into the U.S. Such tariffs are only applicable to the Connected Devices revenue segment and not the Software & Services revenue segment. To help offset a portion of the incremental expense arising from such tariffs and to invest in its long-term relationships with its customers, the Company is currently covering 5% of the applicable tariff.

• Amendment to Line of Credit facility: On April 17, 2025, the Comerica line of credit facility maturity date was extended to June 30, 2027 and certain covenants and interest rates were modified.

• Deferral of Principal and Interest on Term Loan: On May 21, 2025, the Company's term loan from EDC was modified to allow for a six-month deferral of principal and interest payments.

Q2 2025 CONFERENCE CALL

Management will hold a conference call and webcast to discuss the financial results on Thursday, August 7, 2025 at 10:00 am Eastern Time.

Participant Dial In (Toll Free): 1-844-854-4410
Participant International Dial In: 1-412-317-5791

Participants, please ask to be joined to the Tantalus Systems call.

WEBCAST

Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=UniJxtbg

REPLAY INFORMATION

A conference call and webcast replay will be available until August 14, 2025. To access the conference call replay, please see details below:

US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access Code: 5181410

FINANCIAL STATEMENTS AND MANAGEMENT DISCUSSION & ANALYSIS

Information included in this press release is a summary of results and financial statement excerpts and should be read in conjunction with the Company's condensed consolidated financial statements for the three and six-month periods ended June 30, 2025, audited financial statements for the year ended December 31, 2024 and related Management's Discussion & Analysis ("MD&A") for the three and six-month periods ended June 30, 2025 and the year ended December 31, 2024 which can be found on SEDAR+ at www.sedarplus.ca and is also available on the Company's website at www.tantalus.com. All results are reported in U.S. dollars and all amounts included in the tables attached to this press release are reported in thousands of U.S. dollars except for shares and per share amounts and unless otherwise noted.

All comparisons presented in this press release are between the three and six-month periods ended June 30, 2025 and June 30, 2024, unless otherwise indicated.

The accompanying notes to the financial statements are an integral part of the following consolidated financial statements and can be found on the Company's website at www.tantalus.com or at www.sedarplus.ca.

Consolidated Statements of Financial Position
(Unaudited)
(Expressed in thousands of U.S. dollars)

See accompanying notes to consolidated financial statements.

Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in thousands of U.S. dollars)

See accompanying notes to consolidated financial statements.

Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in thousands of U.S. dollars)

See accompanying notes to consolidated financial statements.

NON-IFRS AND OTHER FINANCIAL MEASURES

This press release contains certain financial measures that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, and cash determined in accordance with IFRS, as indicators of the Company's performance.

We provide these additional non-IFRS measures, non-IFRS ratios and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities.

1. "EBITDA" is calculated as income (loss) adjusted for interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.

2. "Adjusted EBITDA" is calculated as income (loss) adjusted for interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. Beginning in the fourth quarter of 2024, the Company excludes non-recurring items such as restructuring expenses, financing costs, government subsidies and recovery of contingent liability in the Company's presentation of Adjusted EBITDA as these expenses are not representative of ongoing operating performance.

1. This news release also refers to the following non-IFRS ratios:

   1. "Gross Profit" is calculated as revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

   2. "Gross Profit Margin" is calculated as Gross Profit expressed as a percentage of the Company's revenues. Management believes that Gross Profit Margin is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.

   3. "Adjusted EBITDA Margin" is calculated as Adjusted EBITDA expressed as a percentage of the Company's revenues. Management believes that Adjusted EBITDA Margin is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.

2. This news release also refers to the following supplementary financial measures:

   1. "Recurring Revenue" is comprised of the Company's revenues recognized in a period that are recurring in nature and attributable to its analytics, subscriptions and software as a service ("SaaS") offerings, hosting services, software maintenance and technical support agreement services.

   2. "Annual Recurring Revenue" or "ARR" is comprised of the Company's Recurring Revenue as expressed on a forward looking annualized revenue basis attributable to its analytics, subscriptions and SaaS offerings, hosting services, software maintenance and technical support services agreements at a point in time.

SELECTED FINANCIAL INFORMATION

GROSS PROFIT¹ AND GROSS PROFIT MARGIN¹ CALCULATIONS

RECONCILIATION OF LOSS TO ADJUSTED EBITDA¹

ABOUT TANTALUS SYSTEMS HOLDING INC. (TSX: GRID) (OTCQX: TGMPF)

Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid. We offer a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements. Learn more at www.tantalus.com.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as those relating to the ability of Tantalus' solutions, including the TRUSense Gateway and TRUGrid analytics offerings, to help utilities leverage existing infrastructure while simultaneously furthering their grid modernization initiatives and pinpoint vulnerabilities and prioritize their investments to improve their efficiency, reliability and resiliency, the Company's plans, objectives, strategy and expectations for its business, result of operations and financial condition, the adoption of the Company's solutions by customers in accordance with the Company's ordinary business practices and terms and the anticipated risks to the business operations of the Company and its customers.

To the extent any forward-looking information in this news release constitutes a "financial outlook" within the meaning of securities laws, such information is being provided because management's estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.

In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: increasing demand for the Company's solutions in support of utilities' grid modernization efforts, the commercialization and adoption of the TRUSense Gateway, its ability to capitalize on growth opportunities and implement its growth strategy, its ability to retain key personnel, its ability to maintain existing customer relationships and to continue to expand its customers' use of the Company's products and solutions, its ability to acquire new customers, its ability to enhance the Company's offerings to remain at the forefront of its industry, the impact of competition, the successful integration of future acquisitions, the impact of tariffs on the Company's business and financial condition, the ability of the Company to execute on its plans, the absence of material adverse changes in the Company's business, its industry or the global economy and that the risks and uncertainties described under the "Risk Factors" section of the Company's Annual Information Form dated March 31, 2025 will not materialize. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2025, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above should be considered carefully by prospective investors.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

¹ See definitions for Non-IFRS and Other Financial Measures above.