Toronto, Ontario--(Newsfile Corp. - February 28, 2025) - Deveron Corp. (TSXV: FARM) ("Deveron" or the "Company"), a leading agriculture services and data company in North America, is pleased to report results for the three- and six- months ended December 31^st, 2024. Full financial results are available at www.sedarplus.ca.

On February 25, 2025, the Company filed a revocation application to revote the failure to file cease trade order ("CTO") issued by the Ontario Securities Commission ("OSC") against the Company dated November 1, 2024. The CTO orders that general trading, whether direct or indirect, of the securities of the Company cease. A copy of the CTO has been posted on the Company's SEDAR+ profile at www.sedarplus.ca. The Company will provide further updates as they become available.

Second Quarter 2025 Financial Highlights

Revenue for Fiscal Q2/2025 decreased 22% to $11,901,189 from $15,308,397 in the same period in the prior year. Fiscal Q2/2025 Non-IFRS Adjusted EBITDA decreased 39% to $3,413,075 in Q2/2025 from $5,628,224 in the same period in the prior year. Fiscal H1/2025 Non-IFRS Adjusted EBITDA decreased 31% to $3,136,564 from $4,678,149 in the same period in the prior year. Revenue for Fiscal H1/2025 decreased 17% to $19,137,646 from $23,026,999 in the same period in the prior year. These changes in revenue are largely due to softer sales in the Company's fertility and specialty tissue products in Canada, the macroeconomic effects currently affecting the North American agricultural industry, and the Company's exit from its unprofitable carbon business. Adjusted EBITDA was more greatly affected due to volume decreases in the Canadian operation. The Canadian operation has a higher margin profile for its fertility and speciality tissue testing products, which drove the higher impact to EBITDA in the quarter.

Operating expenses decreased by 22% to $7.24M. Of this reduction, 16% resulted from the previously announced cost optimization efforts and headcount reductions in the US operations and at the corporate level. The remaining 9% reflects changes in non-cash items, including the NCI put obligation, depreciation, and share-based payments. The company's Non-IFRS adjusted EBITDA margin percentage declined by 8.1% year-over-year to 28.7% from 36.8% in the similar period in FY2024. Gross profit margin decreased from 74% to 68%, driven by inflationary price increases for laboratory supplies and lower volumes of the Company's higher-margin testing products in Canada.

"This quarter reflected continued challenges from softer testing demand. Although the business is much more aligned to be a pure play testing platform, we have further work ahead in delivering increased volume at our labs. As highlighted in our previous press release, we made further cost side adjustments, which total $2.2 M as fall volumes did not materialize. We expect to see these pickups in the third quarter," commented David MacMillan, Deveron's President and CEO. "As we communicated upon the completion of our audit, we are reviewing the alternatives for the Company ahead. We have current liabilities of $10.1 m in convertible debentures that are due in May of this year, as well as Term Debt at the A&L level of $22 M that is up for renewal. Though cost side management has improved, the Company is looking at alternatives to satisfy short-term liquidity and will update stakeholders as developments progress.

Summary of Financial Results

*Non-IFRS measure. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Adjusted EBITDA as IFRS net loss excluding interest expense, depreciation and amortization expense, share-based payments, income tax expense, integration costs, one time acquisition costs, and impairment of goodwill, property, plant, and equipment and right-of-use assets (ROU). The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives

The Management's Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR+ at www.sedarplus.ca. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

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.

About Deveron: Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use.

This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world-wide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedarplus.ca. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.

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