Mr. Craig Fraser reports

BEACN ANNOUNCES RESULTS FOR Q3, 2023 AND IMPROVEMENT FROM B2B STRATEGY

Beacn Wizardry & Magic Inc.'s revenue for the three months ended Sept. 30, 2023, increased to $886,786, an increase of 22 per cent compared with $727,088 for the same period in 2022 and a 79-per-cent increase of the prior three-month period ended June 30, 2023. The company has continued to invest in sales and marketing, including new regional trade events, such as PAX West, and new business-to-business partnerships. Sales in the three months ended Sept. 30, 2023, included the first orders from new B2B retail partners including London Drugs and two United States-based custom-build PC companies. The three-month period achieved gross profit of $350,831 (40 per cent) (2022 -- $315,214 (43 per cent) and a net loss of $616,562 (2022 -- net loss of $149,893). The company is pleased with the performance for the three-month period and will continue to strive for increased revenue and improved gross margin in the coming quarters.

For the nine-month period ended Sept. 30, 2023, the company reports sales revenue of $1,981,810 (2022 -- $3,534,994) gross profit of $827,732 (42 per cent) (2022 -- $2,036,313 (42 per cent) and a net loss of $1,708,863 (2022 -- net income of $240,156). In the first half of 2023, Beacn experienced lower revenue than anticipated due to a single channel sales strategy and plateauing website traffic compared with product introduction and initial sales in early 2022. Proceeds from private placement rounds in 2022 and 2023 were used to increase efforts in sales and marketing, development, and logistics. Further information is available from the company's interim financial statements for the nine-month period ended Sept. 30, 2023, available under the company's profile on SEDAR+.

"The significant investments we've been making towards our growth strategy started to show results this past quarter. The addition of our new B2B sales partners and the launch of Mac compatibility are expected to increase revenue and introduce exciting new market opportunities for us," says Beacn chief executive officer Craig Fraser.

For the remainder of 2023 and into 2024 Beacn will continue to implement its B2B sales retail strategy to complement its successful business-to-consumer sales program by simultaneously expanding the reach of its e-commerce platforms. The introduction at TwitchCon 2023 of the new accessory, Beacn Mic Stand, in October, 2023, is anticipated to contribute to an increase in gross margin in future periods. Beacn's continuous efforts in product design will lead to software updates and the launch of new products in 2024. These strategic initiatives are expected to positively impact quarterly earnings over the next three quarters.

About Beacn Wizardry & Magic Inc.

Beacn, a Victoria, B.C.-based consumer electronics company, develops innovative audio equipment, peripherals and technology for gamers, live streamers and content creators. Beacn is committed to delivering premium products that enable everyone to produce studio-quality content. Beacn's award-winning product ecosystem includes Beacn Mic, Beacn Mix and Beacn Mix Create. Beacn is listed on the TSX Venture Exchange under the symbol BECN.

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