GINSMS Announces Financial Results for the Three Months Ended March 31, 2026

CALGARY, AB / ACCESS Newswire / May 12, 2026 / GINSMS Inc. (TSXV:GOK) ("GINSMS" or the "Corporation") has announced its financial results for the first quarter ended March 31, 2026. This news release is being filed pursuant to Coordinated Blanket Order 51 - 933 Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers (the "Quarterly Reporting Exemption"). GINSMS does not intend to file an interim financial report and related MD&A in reliance on the Quarterly Reporting Exemption for this first quarter ended March 31, 2026. The financial information for this first quarter contained in this press release is disclosed to allow GINSMS' ultimate holding company, Beat Holdings Limited ("BHL"), a public company in Japan, to use certain of GINSMS' financial information in the preparation of BHL's financial statements and announcements. The Corporation's financial information for the three months ended March 31, 2026, is prepared in accordance with IFRS Accounting Standards. All amounts are expressed in Canadian Dollars unless otherwise noted. Highlights include: Revenue of $345,898 for the three-month period ended March 31, 2026, as compared of $345,893 for the three-month period ended March 31, 2025. Gross Profit of $130,101 for the three-month period ended March 31, 2026, as compared to gross profit of $105,982 for the three-month period ended March 31, 2025. Operating expenses and finance costs of $440,833 for the three-month period ended March 31, 2026, increased from $403,107 for the three-month period ended March 31, 2025. Net loss of $310,732 for three-month period ended March 31, 2026 as compared to a net loss of $297,125 for three-month period ended March 31, 2025. Selected Profit and Loss Information Financial Highlights Three-month period ended March 31, 2026 (Unaudited) Three-month period ended March 31, 2025 (Unaudited) Twelve-month period ended December 31, 2025 (Audited) Twelve-month period ended December 31, 2024 (Audited) Revenues $ A2P Messaging Service 63,766 73,365 263,721 715,934 Software Products & Services 282,132 272,528 1,194,269 1,790,173 345,898 345,893 1,457,990 2,506,107 Cost of sales $ A2P Messaging Service 42,484 66,482 198,084 344,322 Software Products & Services 173,313 173,429 721,938 1,006,829 215,797 239,911 920,022 1,351,151 Gross profit $ A2P Messaging Service 21,282 6,883 65,637 371,612 Software Products & Services 108,819 99,099 472,331 783,344 130,101 105,982 537,968 1,154,956 Gross margin % A2P Messaging Service 33.4 % 9.4 % 24.9 % 51.9 % Software Products & Services 38.6 % 36.4 % 39.5 % 43.8 % 37.6 % 30.6 % 36.9 % 46.1 % Adjusted EBITDA(1) $ (297,331 ) (273,498 ) (512,553 ) 188,6617.5 % Adjusted EBITDA margin (86.0) % (79.1) % (35.2) % 7.5 % Net (loss)/profit $ (310,732 ) (297,125 ) (596,278 ) 21,4850.9 Net (loss)/profit margin (89.8) % (85.9) % (40.9) % 0.9 % Net (loss)/earnings per share $ (0.166 ) (0.158 ) (0.317 ) 0.012 Basic and Diluted (in Canadian cents) (1) Adjusted EBITDA is a non-IFRS measure which does not have any standardized meaning under IFRS Accounting Standards. Adjusted EBITDA is related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation and amortisation (in both cost of sales and general and administration expenses), interest expenses and also excludes certain non-recurring or non-cash expenditure and income. This non-IFRS measure is not recognised under IFRS Accounting Standards and accordingly, shareholders are cautioned that this measure should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards. The non-IFRS measure presented is unlikely to be comparable to similar measure presented by other issuers. The Corporation believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Corporation can use to fund working capital requirements, service interest and principal debt repayment and fund future growth initiatives. Cost of Sales Three-month period ended March 31, 2026 (Unaudited) Three-month period ended March 31, 2025 (Unaudited) Twelve-month period ended December 31, 2025 (Audited) Twelve-month period ended December 31, 2024 (Audited) Depreciation - Property, plant and equipment 1,271 9,560 30,447 44,891 Salaries and wages 168,531 159,956 658,533 906,724 Subcontractor costs 38,804 63,342 199,519 367,611 Others 7,191 7,053 31,523 31,925 215,797 239,911 920,022 1,351,151 Operating Expenses and Finance Costs Three-month period ended March 31, 2026 (Unaudited) Three-month period ended March 31, 2025 (Unaudited) Twelve-month period ended December 31, 2025 (Audited) Twelve-month period ended December 31, 2024 (Audited) Salaries and wages 140,771 161,794 432,223 377,658 Directors' fees 10,000 10,000 40,000 40,000 Professional fees 86,343 85,541 287,029 301,269 Foreign currency exchange loss/(gain) 118,028 34,171 (66,515 ) 3,913 Other general & administrative expenses 55,411 57,914 231,768 254,414 Allowance for doubtful debts 5,899 - 24,000 33,932 Research & development costs 12,251 39,620 121,871 69,184 Depreciation - Property, plant and equipment 164 364 1,432 778 - Right-of-use assets 11,474 12,318 47,539 46,250 Property, plant and equipment write off - - 10,592 - Interest expenses on lease liabilities 492 1,385 4,122 3,607 440,833 403,107 1,134,061 1,131,005 Selected Balance Sheet Information The figures reported below are based on the unaudited consolidated financial statements of the Corporation which have been prepared in accordance with IFRS Accounting Standards. March 31, 2026 (Unaudited) $ December 31, 2025 (Audited) $ Current Assets Accounts receivable 567,830 578,804 Deposits and prepayments 42,294 39,875 Current tax assets - - Bank and cash balances 90,803 156,385 700,927 775,064 Non-Current Assets Property, plant and equipment 7,039 8,481 Right-of-use assets 19,134 31,355 TOTAL ASSETS 727,100 814,900 Current Liabilities Accounts payable and accrued liabilities 823,059 815,278 Advances from related parties 1,198,879 1,091,163 Loans from related parties 1,471,453 1,458,077 Promissory note payable 580,000 580,000 Lease liabilities 12,194 24,761 TOTAL LIABILITIES 4,085,585 3,969,279 Equity Share capital 15,148,160 15,148,160 Deficit (18,795,016 ) (18,484,945 ) Accumulated other comprehensive income 307,600 200,274 Total deficiency attributable to equity shareholders of the Corporation (3,339,256 ) (3,136,511 ) Non-controlling interests (19,229 ) (17,868 ) TOTAL DEFICIENCY (3,358,485 ) (3,154,379 ) TOTAL LIABILITIES & EQUITY 727,100 814,900 Total assets of GINSMS including bank and cash balances, accounts receivable, deposits and prepayments, current tax assets, property, plant and equipment and right-of-use assets as at March 31, 2026 amounted to $727,100 compared to $814,900 as at December 31, 2025. Bank and cash balances amounted to $90,803 as at March 31, 2026, a decrease of 41.9% compared to $156,385 as at December 31, 2025. The decrease was mainly due to more net cash outflow from operating activities, and less net cash inflow from financing activities during the period. About GINSMS GINSMS is a mobile technology and services company with a diversified focus on Application-to-Person (A2P) Messaging Services and Software Products and Services. A2P Messaging Service Through its cloud-based platform, GINSMS enables the delivery of SMS messages to mobile subscribers across more than 200 mobile operators worldwide. While this business has provided global connectivity, GINSMS faces sustained competitive pressures and uncertain profitability. Software Products and Services GINSMS designs, develops, and distributes innovative software solutions for mobile operators and enterprises. With more than 100 successful deployments worldwide, the company has established a proven track record in delivering scalable and reliable technologies. Leveraging cost-efficient development hubs in Indonesia and Malaysia, GINSMS continues to expand its customer base and strengthen its position in the enterprise solutions market. Global Headquartered in Asia, GINSMS maintains offices in China, Singapore, Hong Kong, Malaysia, and Indonesia, providing regional expertise and supporting cross-border technology deployments. For further information, please contact: GINSMS Inc. Joel Chin, CEO Tel: +65-6441-1029 Email: [email protected] 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. SOURCE: GINSMS, Inc. View the original press release on ACCESS Newswire