Highlights:

• Total revenue of $34.8 million for the Year Ended 2026

  • Total System-Wide Revenue of $39.8 million for the Year Ended 2026

  • 33% gross profit margin for the Year Ended 2026

• Segmented revenue for the Year Ended 2026:

  • Vape - B2C: $19.8 million, B2B: $11.1 million

  • Cannabis - B2C: $3.9 million

• Launched 180 Smoke Vape Store Express, a co-branded store-within-a-store concept that activates underutilized retail space within a third-party brand's existing location

• Customer base of over 350,000 registered accounts across online and brick-and-mortar platforms

Vaughan, Ontario--(Newsfile Corp. - July 30, 2026) - Delota Corp. (CSE: NIC) (FSE: S62) ("Delota" or the "Company"), a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to report it has filed its annual audited consolidated financial statements, management discussion and analysis, and associated certifications (collectively, the "Annual Filings") for the year ended March 31, 2026. The Annual Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.

Cameron Wickham, CEO of Delota, commented, "Our year end results reflect the continued near-term impacts of our operational restructuring efforts as we reshape the business for sustainable, capital efficient growth. These efforts have meaningfully streamlined our overhead costs and we believe this disciplined approach applied across the business positions us well for improved profitability going forward. Leading our growth initiatives is the launch of 180 Smoke Vape Store Express, our store-within-a-store concept that enables retail expansion without the capital intensity of traditional standalone leases. By co-locating with a partner's existing retail location and leveraging established foot traffic and staff, we can open new revenue-generating locations at a fraction of the cost and long-term retail risks. We have successfully piloted this model within our own Offside Cannabis stores and are now actively pursing partnerships with third-party cannabis retailers and complementary retail businesses. With a proven, asset-light expansion model and a disciplined approach to cost management, we are building a platform for scalable, profitable growth."

Financial Highlights:

• Total revenue of $34,808,554 for the year ended March 31, 2026 ("Year Ended 2026") as compared to $46,564,733 for the fourteen months ended March 31, 2025 ("Fourteen Months Ended 2025")

  • Total System-Wide Revenue (as defined below) of $39,830,699 for the Year Ended 2026 as compared to $49,309,145 for the Fourteen Months Ended 2025

  • 33% gross profit margin for the Year Ended 2026 as compared to 38% for the Fourteen Months Ended 2025

  • Adjusted EBITDA (as defined below) of negative $758,201 for the Year Ended 2026 as compared to positive $1,198,383 for the Fourteen Months Ended 2025

• Segmented revenue for the Year Ended 2026:

  • Vape - B2C: $19.8 million, B2B: $11.1 million

  • Cannabis - B2C: $3.9 million

Other Highlights:

• In June 2026, the Company launched 180 Smoke Vape Store Express, a co-branded store-within-a-store concept that activates underutilized retail space within a third-party brand's existing location, eliminating the need for stand alone leases and overhead while benefiting from co-driven traffic.

  • The Company opened two 180 Smoke Vape Store Express locations at 693 Queen Street, Port Perry and 6474 Lundy's Lane, Niagara Falls, expanding 180 Smoke's brick-and-mortar presence to 33 locations.

• On July 15, 2025, the Company changed its auditor to Horizon Assurance LLP.

• On July 7, 2025, the Company announced it had entered into agreements with 180 Global relating to the licensing of the 180 Smoke Vape Store brand for retail online sales in Eastern Canada. 180 Global assumed operational functions in Eastern Canada as a result of the retail partnership in exchange for certain service fees and a royalty fee payable to the Company.

• On April 22, 2025, the Company completed the early redemption of senior secured convertible debentures in the amount of $900,000 plus accrued interest and the security interests and obligations of the Company and its guarantors have been discharged and all pledged securities have been returned to the Company.

• On January 22, 2025, the Company announced a change to its fiscal year end from January 31^st to March 31^st.

Select Financial Information

The following selected financial information as at and for the year ended March 31, 2026 and fourteen months ended March 31, 2025 are derived from the Company's annual audited consolidated financial statements for the year ended March 31, 2026.

System-Wide Revenue

The Company's "System-Wide Revenue" is a non-IFRS financial measure that does not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. This measure is presented to provide readers with additional insight into total sales activity across the Company's network, including sales generated through licensing arrangements where the Company recognizes royalty or fee income rather than gross revenue. System-Wide Revenue should not be considered in isolation or as a substitute for revenue prepared in accordance with IFRS.

The following table presents System-Wide Revenue for the year ended March 31, 2026 and fourteen months ended March 31, 2025. Following the Company's change in fiscal year-end, comparative periods are not directly aligned.

System-Wide Revenue includes gross sales generated by franchisees and third-party operators under licensing arrangements with the Company. Under these arrangements, the Company earns income through royalty fees and service fees rather than recording gross sales as revenue. As a result, System-Wide Revenue will not agree to IFRS revenue recognition, which reflects only the fees recognized by the Company under IFRS 15.

Adjusted EBITDA

The Company's "Adjusted EBITDA" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the net income (loss) reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability valuations, and adjusted for share-based compensation, depreciation and amortization expenses, gains and losses related to the revaluations of its right-of-use assets and lease liabilities and foreign exchange differences.

The reconciliation of net income (loss) to Adjusted EBITDA is presented below.

About Delota Corp.

Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming one of the largest national specialty retailers of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its registered customer base, which now exceeds 350,000 accounts.

Investors interested in learning more about Delota can visit www.delota.com.

Cautionary Statements

This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307253

Source: Delota Corp.