Victory Square Technologies Reports Q1 2025 Financial Results and Provides Strategic Update

Rhea-AI Summary

Victory Square Technologies (OTC:VSQTF) reported Q1 2025 financial results, highlighting adjusted revenue of $6.528M and GAAP revenue of $4.540M with a gross margin of $1.504M. The company held $9.698M in cash and marketable securities as of March 31, 2025.

The company is strategically focusing on healthcare investments, notably through its 58% ownership in Hydreight Technologies, which operates a nationwide healthcare delivery platform with over 3,000 registered nurses. Other key portfolio companies include Insu Therapeutics (22.8% ownership), developing an oral insulin tablet, and Pawsible Ventures (49% ownership), targeting the pet wellness market.

Victory Square monetized non-core assets in Q1 2025, selling AI fintech solutions to Yocale.ai for approximately $880,000 in equity, following a previous sale of BlockX for $1.7 million in listed shares.

Positive

• Strong cash position of $9.698M as of Q1 2025
• Majority stake (58%) in fast-growing Hydreight Technologies, ranked #9 on Deloitte's Technology Fast 50
• Strategic monetization of non-core assets generating $880,000 and $1.7M in equity value
• Diversified healthcare portfolio targeting multi-billion dollar markets

Negative

• GAAP revenue ($4.540M) significantly lower than adjusted revenue ($6.528M)
• High COGS ratio at 66.9% of GAAP revenue impacting profitability
• Early-stage investments like Insu Therapeutics won't begin human trials until 2026
• Significant exposure to regulatory risks across healthcare investments

Vancouver, British Columbia--(Newsfile Corp. - July 9, 2025) - Victory Square Technologies Inc. (CSE: VST) (OTC Pink: VSQTF) ("Victory Square" or the "Company"), a venture builder that provides public investors with access to early-stage technology companies, today announced its financial results for the three months ended March 31, 2025, and shared an update on its key business focus areas for the remainder of the year.

Q1 2025 Financial Highlights

• Adjusted Revenue: $6.528M

• GAAP Revenue: $4.540M

• Cost of Goods Sold (COGS): $3.036M

• Gross Margin: $1.504M

• Cash & Marketable Securities: $9.698M as of March 31, 2025

Complete financial statements and the Management Discussion & Analysis for Q1 2025 are available on SEDAR+ at www.sedarplus.ca.

CEO Perspective on Q1 and Healthcare Focus

"Q1 2025 showed solid progress across our core assets and delivered steady results while we continued to sharpen our focus on sectors where we believe we have an operational advantage," said Shafin Diamond Tejani, CEO of Victory Square. "One of our main priorities this year has been to scale our holdings in the digital health and wellness space, where we see a clear opportunity for growth."

Healthcare: A Large, Fragmented Market

According to the Centers for Medicare & Medicaid Services, annual U.S. healthcare spending exceeds $4.5 trillion and is projected to reach $7 trillion by 2031. "This is one of the largest and most fragmented sectors in the economy," added Tejani. "That complexity creates barriers to entry but also potential for significant value creation when you build the right infrastructure."

A clear example of that strategy in action is Hydreight Technologies, our healthcare portfolio's flagship holding.

Portfolio Highlights

Hydreight Technologies Inc. (TSXV: NURS)

• Ownership: Victory Square held approximately 58% of Hydreight

• Overview: Hydreight provides a compliant platform that enables independent nurses, med-spas, and D2C health brands to deliver services legally in all 50 U.S. states. Its network includes over 3,000 registered nurses and 200+ prescribing physicians. The company was ranked #9 on Deloitte's Technology Fast 50 Canada, #56 on Deloitte's Technology Fast 500 North America, and was recently included on the Financial Times Americas' Fastest Growing Companies 2025 list.

• Growth Platform: Hydreight's new VSDHOne platform expands its core network by offering clinics and wellness entrepreneurs a turnkey telehealth and e-pharmacy solution, supporting new verticals such as GLP-1 weight loss, hormone optimization, diagnostics, and longevity services.

Insu Therapeutics Inc.

• Ownership: Victory Square holds approximately 22.8% of Insu Therapeutics.

• Overview: Insu is developing a patent-pending oral insulin tablet intended to provide an alternative to daily injections. Its buccal delivery system is designed to mimic natural insulin absorption through the inner cheek and liver. Early preclinical trials have shown insulin uptake comparable to injections, with improved liver targeting.

• Industry Context: More than 500 million people worldwide are living with diabetes today, projected to reach 783 million by 2045 (International Diabetes Federation). The global diabetes therapeutics market is forecast to reach USD $118 billion by 2032 (Market Research Future).

• Next Steps: Insu is pursuing an FDA 505(b)(2) regulatory pathway and aims to begin first-in-human trials in 2026.

• Leadership: Insu's research originated from the University of British Columbia (UBC). The company is led by a multidisciplinary team:

  • Dr. Anubhav Pratap-Singh, CEO & Co-Inventor, Professor at UBC with over 100 published papers.

  • Ammad Shorbaji, COO, former senior executive at Sanofi with over 25 years of regulatory and product development experience.

  • Dr. Tom Elliott, Medical Director, practicing Canadian endocrinologist with extensive clinical and academic credentials.

Pawsible Ventures Inc.

• Ownership: Victory Square holds approximately 49% of Pawsible Ventures.

• Status: In early stages of evaluation, Pawsible Ventures is focused on pet wellness and telehealth opportunities that mirror trends in human healthcare. According to Grand View Research, the global pet care market is expected to reach $368 billion by 2030, with U.S. pet spending exceeding $150 billion in 2024 (APPA). "We believe the pet sector's growth, combined with our experience in digital health, positions us well to identify scalable opportunities here," said Tejani.

• Leadership: Pawsible Ventures is led by Alex Chieng, an experienced founder who previously built Vetsie, a telemedicine and AI-enabled vet care platform acquired by a U.S.-based veterinary group. He is an early graduate of the Leap Ventures program, backed by Mars Petcare, Michelson Found Animals, and R/GA Ventures.

Pawsible Ventures aims to bring together the "humanization of pets" with next-generation care - including diagnostics, wearables, virtual vet triage, insurance, and enrichment - and plans to leverage Hydreight's telehealth and compliance infrastructure as its launchpad.

Monetizing Non-Core Assets

Victory Square continues to manage its portfolio actively and seeks to redeploy capital into areas with the strongest growth potential. In Q1 2025, the Company sold certain AI fintech solutions tailored for the health, wellness, and beauty sector to Yocale.ai for approximately $880,000 in equity consideration. This follows the 2024 sale of BlockX to Edge Total Intelligence Inc. for approximately $1.7 million in listed shares. The Company will continue to evaluate similar opportunities as part of its capital allocation strategy.

Upcoming Investor Webinar

Victory Square will host an Investor Webinar on Thursday, July 17, 2025, from 12:15 p.m. to 1:00 p.m. PDT to provide an update on the Company, share upcoming catalysts, and address investor questions through a live Q&A.

Registration link:

https://us06web.zoom.us/webinar/register/WN_RaV9qbo3QpGb3bU6CLOKhA

Outlook for 2025

"As we look ahead to the second half of 2025, our focus remains clear," said Tejani. "We plan to support the continued expansion of Hydreight's national network and new platform services, advance Insu Therapeutics toward its next clinical milestone, and carefully explore early-stage opportunities like Pawsible Ventures. Staying disciplined on monetizing non-core assets ensures we can keep funding what we believe will deliver the strongest shareholder value over time."

Victory Square thanks its shareholders for their continued support and invites investors to access the Q1 2025 filings on SEDAR+.

On behalf of the Board of Directors,
"Shafin Diamond Tejani"
Chairman & CEO, Victory Square Technologies Inc.
www.victorysquare.com

For further information about Victory Square, please contact:

Investor Relations Contact - Abbey Vogt
Email: ir@victorysquare.com
Telephone: 604 283-9166

Peter Smyrniotis - Director
Telephone: 604 283-9166

ABOUT VICTORY SQUARE TECHNOLOGIES INC.

Victory Square is a Venture Builder that provides investors a liquid way to invest in early-stage technology companies without buying a venture fund that requires accredited investor status or multi-year commitments.

• A diverse portfolio of 25+ innovative companies from around the world (founders come from: Ireland, Sri Lanka, Bulgaria, Australia, India, Brazil, the Middle East and North America)

• Sectors include: Digital Health, Artificial Intelligence (AI), Machine Learning (ML), Blockchain/Web3, Virtual & Augmented Reality (VR/AR), Gaming, Climate Tech

• Owner-operated (approx. 15% Management Ownership)

Business Model:

The Victory Square business model is to buy, build and invest in early stage tech companies. We spend upwards of 48 months with those companies until they're ready to spin-off or stand on their own. There are a couple of unique elements to our business model…

1. We have unparalleled access to startups through our internal incubator and International network with over 250+ founders, investors, tech accelerators and venture capital firms from more than 60 countries.
2. Second, our management team and advisors are actively involved in our investments from incubation through monetization, providing them with financial, operational, and strategic support to scale globally.
3. We drive value by monetizing investments and reinvesting the gains in new innovations. The strategy was to build a self-sustaining business.

VST is a publicly-traded company headquartered in Vancouver, Canada, and listed on the Canadian Securities Exchange (VST), Frankfurt Exchange (6F6) and the OTC Pink (VSQTF).

For more information, please visit www.victorysquare.com.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "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. All statements other than statements of historical facts contained in this news release are forward looking statements. Forward-looking information in this news release includes, without limitation, statements regarding the future plans and objectives of the Company, execution of business strategy, future performance and future growth, business prospects, synergies and opportunities of the Company and its related subsidiaries, and other factors beyond the Company's control.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made, including, but not limited to the Company being able to capitalize on the acquired assets, the ability of acquired assets to maintain its value as presently contemplated, the synergies of the acquired assets with the Company's operations, and such other assumptions presented in the Company's disclosure record. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information herein is qualified in its entirety by this cautionary statement, and GameOn 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.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Use of Non-GAAP Financial Measures

This release contains references to non-GAAP financial measures Adjusted Revenue and Adjusted EBITDA. The Company defines Adjusted Revenue as gross cash income before adjustments for the deferred portion of business partner setup, license, and sponsorship fees and gross and accrued receipts from blockchain grant funding. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs and share-based payments expense, and (ii) gains/losses that are not reflective of ongoing operating performance including inventory impairment. The Company believes that the measure provides useful information to its shareholders and investors in understanding the Company's 2023 operating cash flow and may assist in the evaluation of the Company's business relative to that of its peers more accurately than GAAP financial measures alone. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of other metrics presented in accordance with GAAP.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/258231

FAQ

What were Victory Square Technologies (VSQTF) Q1 2025 revenue and financial results?

Victory Square reported adjusted revenue of $6.528M, GAAP revenue of $4.540M, and gross margin of $1.504M in Q1 2025. The company held $9.698M in cash and marketable securities as of March 31, 2025.

What is Victory Square's ownership stake in Hydreight Technologies?

Victory Square holds approximately 58% ownership in Hydreight Technologies, which operates a healthcare delivery platform with over 3,000 registered nurses and 200+ prescribing physicians across all 50 U.S. states.

What is Insu Therapeutics developing and when will clinical trials begin?

Insu Therapeutics, 22.8% owned by Victory Square, is developing a patent-pending oral insulin tablet with a buccal delivery system. The company aims to begin first-in-human trials in 2026 following the FDA 505(b)(2) regulatory pathway.

How much did Victory Square receive from recent asset sales?

The company sold AI fintech solutions to Yocale.ai for approximately $880,000 in equity in Q1 2025, and previously sold BlockX to Edge Total Intelligence for approximately $1.7 million in listed shares.

What is Victory Square's strategy in the pet care market?

Through 49% ownership in Pawsible Ventures, Victory Square is targeting the pet wellness and telehealth market, leveraging Hydreight's infrastructure to develop solutions in diagnostics, wearables, virtual vet triage, insurance, and enrichment.