Refocuses on Higher Margins and Better Long-Term Prospects for Future Growth, Expansion and Profitability

TAMPA, FL / ACCESSWIRE / May 22, 2023 / Specificity Inc. (OTCQB:SPTY) (the "Company"), a full-service digital marketing firm that delivers cutting-edge marketing solutions, today announced the Company's financial results for the first quarter ended March 31, 2023 and the filing of its Quarterly Report on Form 10-Q on May 18, 2023.

Key Financial Highlights for Q1 2023

• Revenue decreased 15% to $0.2 million
• Gross profit increased 14% to $0.1 million
• Gross margin increased to 59.2%
• Operating loss decreased 66% to $0.5 million
• Adjusted EBITDA loss decreased 57% to $0.3 million

Key Business Highlights for Q1 2023

• Initiated re-focused sales and marketing approach
• Signed several new clients, many of which did not start activity with Specificity until April, so will be more reflective in Q2 2023

Management Commentary

Jason Wood, Chief Executive Officer of Specificity, commented, "We are pleased with our start to 2023 as we continue to build on the positive momentum from 2022. While our revenue declined slightly, we increased our gross margins and greatly reduced our operating loss. This is a result of our strategy to focus on customer accounts with better margins and prospects for additional future growth and expansion."

Wood, continued, "The early success of our re-focused sales and marketing approach, which started in mid-February, has dramatically increased our sales funnel of opportunities and closing rate. Of note, while we have signed several new clients, many of them did not start their work with us until April, which will be more reflective in the current quarter.These new clients represent a wide range of industries (from construction to business services) and demonstrate that our digital marketing solutions can positively impact sales no matter what industry a business serves. We look forward to continuing to expand our Specificity digital marketing solutions, nationally, regionally, and locally, as a tool in more and more companies' marketing efforts."

Financial Results for the First Quarter Ended March 31, 2023:

• Revenue: For the three months ended March 31, 2023, revenue was $0.2 million, a decrease of $0.0 million, or 15%, compared with $0.3 million for the three months ended March 31, 2022. The decrease in revenue is primarily due to a conscious effort to focus on customer accounts with better margins and prospects for additional future growth and expansion.
• Gross Profit: For the three months ended March 31, 2023, gross profit was $0.1 million, an increase of $0.0 million, or 14%, compared with $0.1 million for the three months ended March 31, 2022. The resulting gross margin was 59.2%, compared with 44.3% for the three months ended March 31, 2022.
• Total Operating Expenses: For the three months ended March 31, 2023, total operating expenses were $0.6 million, a decrease of $0.9 million, or 59%, compared with $1.4 million for the three months ended March 31, 2022.
• Operating Loss: For the three months ended March 31, 2023, operating loss was $0.5 million, a decrease of $0.9 million, or 66%, compared with an operating loss of $1.3 million for the three months ended March 31, 2022.
• Adjusted EBITDA Loss: For the three months ended March 31, 2023, Adjusted EBITDA loss was $0.3 million, a decrease of $0.4 million, or 57%, compared with an Adjusted EBITDA loss of $0.7 million for the three months ended March 31, 2022, after deducting non-cash and one-time expenses.
• Net Loss: For the three months ended March 31, 2023, net loss was $0.5 million, or ($0.04) per share, a decrease of $0.9 million, or 65%, compared with a net loss of $1.3 million, or ($0.15) per share, for the three months ended March 31, 2022.

About Specificity, Inc.

Specificity, based in Tampa, Florida, is a full-service digital marketing firm that delivers cutting-edge marketing solutions to business-to-business clients as well as business to consumer clients. Our core mission is to offer our clients the most advanced audience targeting capabilities out there. We believe that precision targeting is the key to building the most successful marketing campaigns possible. Specificity has developed tools that allow it to identify and market to people who are actively in the buying cycle. Specificity takes advantage of the real-time messaging opportunities digital marketing offers to give small and medium-sized businesses a fair chance at online traffic.

For further information about Specificity Inc. and the range of digital marketing solutions offered, visit - https://www.specificityinc.com/. Specificity also has a growing online community across social media, including Facebook and LinkedIn. Specificity is a publicly traded company, ticker symbol #SPTY.

For more information, please contact:

ClearThink Investor Relations
nyc@clearthink.capital

Jason Wood, CEO
jason@specificityinc.com

Forward-Looking Statements Disclaimer:

This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results implied by such statements. Many factors are difficult to predict accurately and are generally beyond the Specificity's control. Forward-looking statements speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Although forward-looking statements contained in this presentation are based upon what management of Specificity Inc. believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Specificity Inc. undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE: Specificity Inc.