Hapbee Issues Clarification of June 24, 2025 Press Release on Q1 2025 Financial Results

Rhea-AI Summary

Hapbee Technologies (OTCQB: HAPBF), a digital wellness technology company, has released a clarification of its Q1 2025 financial results. The company reported exceptional growth with device unit sales increasing by 315% year-over-year (from 338 to 1,404 units) and 50% quarter-over-quarter. This follows a strong Q4 2024 performance where sales grew 198%.

The company successfully reduced operating expenses by 62% compared to Q4 2024 (from $1.6M to $584K) through cost optimization initiatives. Hapbee has expanded its retail presence to over 380 Target locations and launched strategic partnerships with Jumeirah Group. The company also introduced an affordable Smart Sleep Membership at $10/month and is preparing to launch new products including the Immersive Mattress Topper and Neckband V2 later in 2025.

Positive

• Device unit sales increased 315% year-over-year and 50% quarter-over-quarter
• Operating expenses reduced significantly by 62% (from $1.6M to $584K)
• Retail expansion to over 380 Target locations
• Strategic partnership with Jumeirah Group for luxury spa integration
• Introduction of affordable Smart Sleep Membership at $10/month

Negative

• Company required clarification of financial results at regulatory request
• Significant cost-cutting measures could impact growth potential

Following a 198% sales surge in Q4, Hapbee added 191% revenue growth in Q1 2025 while reducing operating expenses by 62%

VANCOUVER, British Columbia, June 25, 2025 (GLOBE NEWSWIRE) -- Hapbee Technologies Inc. (TSXV: HAPB | OTCQB: HAPBF), (“Hapbee” or the “Company”), the digital wellness technology company pioneering the science of bio-streaming, announces this clarification of its earlier press release dated June 24, 2025. This clarification is being issued at the request of the Canadian Investment Regulatory Organization (CIRO).

Building on the momentum of Q4 2024, Hapbee entered 2025 with continued growth in sales - delivering meaningful growth in sales, notable reductions in operating expenses, and strategic improvements across its product and platform ecosystem. The Company’s Q1 performance results underscore Hapbee’s disciplined focus on operational excellence, improved efficiencies and user-centric product innovation. 

Q1 2025 Highlights

• Device Sales Growth: Unit sales more than tripled year-over-year in Q1 (from 338 to 1,404) and nearly 50% over Q4 2024 (from 941 to 1,404). This followed a 198% increase in device sales Q4 2024 over Q3 2024 reflecting strong consumer demand and effective activation strategies across digital and retail channels.
• Operational Restructuring: A company-wide cost optimization program resulted in a meaningful reduction in operating expenses of 62% as compared to Q4 2024 (from $1.6M to $584K) with savings realized through lower overhead, consulting fees, and streamlined administration, while preserving capital for high-impact R&D and commercial rollout of our next-gen wearable lineup - including the upcoming consumer launch of the Immersive Mattress Topper and Neckband V2 later in 2025. 
• Platform Modernization: Hapbee’s redesigned mobile app and website launched in the first half of Q2, introducing a more intuitive user experience, enhanced personalization, and improved subscription management - all key levers for recurring revenue growth.
• Ambassador Program Update: Human performance expert Gary Brecka engaged the wellness community, complementing existing brand advocates such as Jaylen Brown, Jason Kidd and others in expanding Hapbee’s presence in science-backed wellness.
• Revised Messaging Integrated Across All Platforms: Hapbee revised its marketing messaging to focus on seven of the most predominant wellness challenges facing consumers – sleep, focus, stress, anxiety, energy, body aches/strains and dependency on caffeine, smoking and vaping – creating a needs-driven yet multi-solution wellness platform across Hapbee’s website, Hapbee App and social campaigns.

Strategic Continuity from 2024

Hapbee’s Q1 performance builds on the 2024 results, which included:

• Device sales revenue increased 198% quarter-over-quarter from ($125K to $375K) driven by stronger customer engagement and education.
• Ambassador-led campaigns powered a surge in brand awareness and digital demand, funded by earlier private placements.
• Retail footprint expanded to over 380 Target locations and Target.com, boosting national consumer access.
• Jumeirah Group partnership launched, integrating Hapbee into luxury spa programs with global expansion underway.
• Affordable Smart Sleep Membership introduced at $10/month or $99/year, widening accessibility for sleep-focused users.
• Platform upgrades underway, including a next-gen mobile app and redesigned website to drive user retention and subscription growth.

These initiatives allowed for continuation of the Company’s current momentum and reinforce the Hapbee mission to make wellness accessible, personalized, and effective for everyone.

“2025 is off to a strong start,” said Riz Shah, Chief Commercial Officer of Hapbee. “We are proud to have achieved a combination of accelerating revenue and disciplined cost control, signaling a scalable growth model.”

About Hapbee Technologies Inc.

Hapbee is a digital wellness technology company pioneering bio-streaming wearables designed to help people optimize sleep, focus, mood, and recovery. Hapbee’s proprietary technology delivers safe, non-invasive signals that promote well-being—all controlled through an intuitive mobile app.

The Company's financial statements and management's discussion and analysis for the period ended March 31, 2025 are available on SEDAR+ at www.sedarplus.ca and on Hapbee's investor website at investors.hapbee.com.

Learn more at www.hapbee.com

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.

Forward-Looking Information

Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information involves notable risks and uncertainties and should not be read as a guarantee of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information. Those risks and uncertainties include, among other things, risks related to: that Hapbee will be able to complete its business objectives as anticipated; Hapbee’s industry and its business, which may negatively impact, and may continue to negatively impact, Hapbee and may materially adversely affect its investments, results of operations, financial condition and Hapbee’s ability to obtain additional equity or debt financing, and satisfy its financial obligations; circumstances may change resulting in the use of proceeds; general economic conditions; future growth potential; prices of its securities; liquidity; ability to access capital markets; environmental matters; and changes in legislation or regulations. Management believes that the expectations reflected in the forward-looking information contained herein are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with such forward-looking information.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to Hapbee. The forward-looking information is stated as of the date of this news release and Hapbee assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

For further information, please contact:

Ken Adessky, Corporate Secretary, Hapbee Technologies Inc.

Phone: (514) 802-2566

Email: yona@hapbee.com

Investor Relations
Renmark Financial Communications Inc.
Bettina Filippone: bfilippone@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989
www.renmarkfinancial.com

Media Relations
Theory Communications
Andrea Hamilton: andrea@theorycomm.com
www.theorycomm.com

FAQ

What was Hapbee's (HAPBF) revenue growth in Q1 2025?

Hapbee's device unit sales grew by 315% year-over-year in Q1 2025, increasing from 338 to 1,404 units, and showed a 50% increase compared to Q4 2024.

How much did Hapbee reduce its operating expenses in Q1 2025?

Hapbee reduced its operating expenses by 62% in Q1 2025 compared to Q4 2024, decreasing from $1.6M to $584K through cost optimization initiatives.

What new products is Hapbee planning to launch in 2025?

Hapbee plans to launch the Immersive Mattress Topper and Neckband V2 later in 2025 as part of their next-gen wearable lineup.

How many Target stores now carry Hapbee products?

Hapbee products are available in over 380 Target locations and on Target.com, expanding their retail footprint.

What is the cost of Hapbee's Smart Sleep Membership?

Hapbee's Smart Sleep Membership is priced at $10 per month or $99 per year.