SATO Technologies Corp. Reports First Quarter 2026 Results

Toronto, Ontario--(Newsfile Corp. - May 29, 2026) - SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) ("SATO" or the "Company") today announced its unaudited financial results for the three months ended March 31, 2026. Unaudited condensed interim consolidated financial statements and MD&A are filed on SEDAR+ ( www.sedarplus.ca ) and available at www.bysato.com . All amounts are in Canadian dollars unless otherwise noted.

Key Highlights Continued to advance AI Factory 1 at Center One, SATO's 20 MW hydro-powered facility in Joliette, Québec. Completed a $1.375 million non-brokered private placement, including a 15% convertible debenture component, with significant insider participation. Cash position strengthened to $973,871 at March 31, 2026, from $123,677 at December 31, 2025.

Subsequent to quarter-end, the Company's wholly-owned subsidiary Canada Computational Unlimited Inc. ("CCU") entered into a new forbearance agreement with lender Sygnum Bank AG covering the period from November 1, 2025 to September 30, 2026. First Quarter 2026 Highlights Revenue of $1,351,545, down 54% from $2,959,874 in Q1 2025 13 BTC mined, compared with 22 BTC in Q1 2025 Gross loss of $(565,446), compared with gross profit of $298,397 in Q1 2025 Net loss of $(1,267,311), compared with net loss of $(885,442) in Q1 2025 Compute Power (Loss) Profit[1] of $(202,173), compared with $835,665 in Q1 2025 Adjusted EBITDA[2] of $(578,301), compared with $164,303 in Q1 2025 Digital assets (including restricted digital assets) of $635,859 at March 31, 2026 compared with $829,827 at December 31, 2025 Liquidity and Capital Allocation The quarter reflected the post-halving environment and the Company's continued financial discipline. Approximately 40% to 50% of the mining fleet remained down-clocked to reduce power consumption and preserve daily profitability per active hash.

Network conditions remained challenging, with average Bitcoin network hashrate near all-time highs and an average Bitcoin price of approximately US$77,000 during the quarter (Q1 2025: ~US$93,000). Cost of operations decreased to $1,916,991 (Q1 2025: $2,661,477), and general and administrative expenses decreased to $380,411 (Q1 2025: $669,914). The Company strengthened liquidity through a $1,375,174 non-brokered private placement, consisting of $1,035,174 in common share units (each unit consisting of one common share and one common share purchase warrant) and $340,000 in convertible debenture units bearing interest at 15% per annum and maturing March 2029.

Advancing the AI Transition SATO continues to advance a multi-phase plan to repurpose a portion of Center One into high-density AI compute capacity. Demand for 20 MW-class hydro-powered AI compute in Québec is being driven by investors' and operators' interest in the province's renewable energy and by Canadian technology companies seeking domestic sites for sovereign AI deployments. The Company continues to evaluate debt and equity financing alternatives to fund the transition.

Subsequent Events Effective April 8, 2026, Canada Computational Unlimited Inc. ("CCU"), the Company's wholly-owned operating subsidiary, entered into a second forbearance agreement with lender Sygnum Bank AG, extending the existing grace period through September 30, 2026. Under the agreement, CCU's mining proceeds are directed to lender-controlled accounts, and CCU may sell certain mining equipment, with lender approval, with proceeds applied to debt reduction. The agreement contemplates US$500,000 of debt reduction by June 30, 2026 and a further US$500,000 by September 30, 2026.

Full terms are disclosed in Note 17 to the unaudited condensed interim consolidated financial statements. CEO Comment "Q1 2026 reflects the operating reality of a post-halving Bitcoin mining business in a hashrate environment near all-time highs, paired with our deliberate decision to down-clock and preserve cash," said Romain Nouzareth, Chairman & CEO. "The story this quarter isn't the mining P&L – it's that we've strengthened our cash position, secured a second forbearance window with our long-term lender through September 30, 2026, and continued to advance AI Factory 1.

Our priority remains execution and securing the capital required to deliver the AI transition." On behalf of the Board, Romain Nouzareth Chairman & CEO, SATO Technologies Corp. About SATO SATO, founded in 2017, is a publicly listed company providing efficient computing power. The Company currently operates one data center tailored to provide computing power for Bitcoin Mining, but may look to expand or add additional data centers for computing power for Bitcoin Mining, High Power Computing ("HPC"), and Artificial Intelligence ("AI"). The Company is listed on (TSXV: SATO) (OTCQB: CCPUF).

To learn more about SATO, visit www.bysato.com . Investor Relations: invest@bysato.com | +1 (347) 280 3663 NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Non-IFRS Financial Measures This release refers to Adjusted EBITDA and Compute Power Profit, which are non-IFRS measures.

They have no standardized IFRS meaning and may not be comparable to similarly titled measures of other issuers. They complement, but do not replace, IFRS measures. Adjusted EBITDA  – net income (loss) excluding finance income/expense, income taxes, depreciation, share-based compensation, impairment, gains/losses on use and revaluation of digital assets, and unrealized FX gains/losses.

Compute Power Profit  – gross profit (loss) excluding (i) depreciation, (ii) hosting-attributable revenue and site operating costs, and (iii) other revenue. Previously called "Mining Profit." Reconciliation of Net Loss to Adjusted EBITDA   Reconciliation of Gross Profit (Loss) to Compute Power Profit   Cautionary Statement Regarding Forward-Looking Information This release contains forward-looking statements regarding, among other things, the Company's AI transition plan, the availability of financing, the forbearance arrangement with Sygnum Bank AG (including continued compliance with its conditions and required debt reductions), the working capital deficiency and going-concern considerations, the Bitcoin mining environment, and other future events. These are based on assumptions management considers reasonable but are subject to risks and uncertainties – including financing risk, lender accommodations not continuing, Bitcoin price and network-difficulty volatility, GPU supply, regulatory change, operational disruption, and execution risk in the AI transition – that could cause actual results to differ materially.

Additional risk factors are described in the Company's most recent Annual Information Form. Forward-looking statements are made as of the date of this release, and SATO disclaims any obligation to update them other than as required by law. [1] Compute Power Profit is a non-IFRS financial measure. See Non-IFRS Financial Measures above. [2] Adjusted EBITDA is a non-IFRS financial measure.

See Non-IFRS Financial Measures above. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299454 Newsfile Corp. May 29, 2026 - 1:30 PM PDT News by QuoteMedia www.quotemedia.com