Toronto, Ontario--(Newsfile Corp. - September 2, 2025) - American Aires Inc. (CSE: WIFI) (OTCQB: AAIRF) ("Aires" or the "Company"), a pioneer in advanced technology designed to transform electromagnetic field (EMF) environments to support health and well-being, announces filing its unaudited Q2/2025 results on https://www.sedarplus.ca. Unless otherwise indicated, all dollar amounts are reported in Canadian dollars.

During the three months ended June 30, 2025, the Company's reported sales increased by 115% year-over-year, for a second quarter record of $6.0 million compared to sales of $2.8 million in the year ago quarter. The quarter's increase in reported sales was driven largely by the efficient deployment of scaled-up advertising and marketing budgets, which included strategic partnerships the Company entered into during 2024 with the UFC, the WWE, Canada Basketball, and high profile athletes, including NHL star John Tavares and NBA star RJ Barrett; to note, 2025 marks the Company's first full year of leveraging its partnerships with UFC, WWE, and Canada Basketball. The quarterly performance extends the Company's multi-year trend of strong revenue growth through widening its user base, opening new market segments, and expanding its overall reach and brand name recognition. To date, Management is pleased with its ability to maintain the strong sales momentum created in late 2024 through the traditionally slower first half of the consumer year, which was a key part of the Company's overall strategy for 2025.

Cash as of June 30, 2025 was reported at $0.05 million, and Inventory was reported at $3.0 million. Continued investments in scaling up promotional efforts contributed to increased advertising and marketing expenses in Q2 (see details below), which resulted in an adjusted EBITDA (a non-IFRS financial measure) loss reported at $1.8 million compared to an adjusted EBITDA loss of $0.84 million in the year ago quarter.

Aires CEO, Josh Bruni, commented: "I'm pleased to report that our Q2 results met expectations, highlighted by strong top-line growth that underscores the ongoing demand and acceptance of our product. In the quarter, we focused on strategic brand building and investments designed to deliver broader, lasting impact for the brand. These strategic efforts were designed to strengthen our market position while also unlocking additional efficiencies in key acquisition metrics. Additionally, our close collaboration with manufacturer and fulfillment partners has successfully enhanced our cost of goods sold, resulting in gross margin expansion that bolsters our operational foundation.

While these investments were larger than previous quarters, we believe they were calculated and purposeful, reflecting our strategic choice to prioritize brand marketing in Q2 to expand our reach to broader and new audiences while deepening existing customer relationships. The goal is to position the Company for sustained growth and set the foundation for a strong performance in the back half of the year. Demand for our products remains robust, giving us confidence in the momentum we are generating and the trajectory of our growth."

Q2/2025 Financial Highlights

Reported sales increased by 115% year-over-year to a second quarter record of $6.0 million compared to sales of $2.8 million in the year ago quarter. Gross Profit increased 134% year-over-year to $4.0 million from $1.7 million in the year ago quarter, and Gross Margin percentage was reported at 66% versus 61% in the same period last year. The improvement in Gross Margin percentage was the combined result of multiple Company strategies, including realization of lowered products costs during the year based on higher purchasing volumes as well as reductions in certain fulfillment costs.

During the three months ended June 30, 2025, Advertising and Promotion expenses increased 124% year-over-year to $3.1 million, and Marketing expenses saw an increase of 181% year-over-year to $1.8 million. The increase in Advertising expenses was consistent with Management expectations as the Company continued executing its full-year strategy focused on strong, high-double-digit sales growth and building Aires into a well-recognized brand in the electromagnetic environment transformation segment. The Company has historically found strong advertising investment in Q1 and Q2 is essential for continuing and building sales momentum following the seasonally strong holiday shopping in Q4, while also continuing to engage consumers to lay the foundation for the Company's progressive quarter over quarter sales growth into Q3 and Q4.

The increase in Marketing expenses was also consistent with Management expectations primarily due to the continued amortization of marketing partnership contracts such as with UFC, WWE, Canada Basketball and Minnesota Timberwolves. The Company notes that the marketing partnerships it has developed, together with the ability to create and leverage related co-branded content for use in the Company's marketing strategy and campaigns, helped drive order volume and sales growth in Q2/2025.

Table 1: Condensed Consolidated Interim Statements of Financial Position (Unaudited) (in Canadian Dollars)

Withdrawal of 2025 Guidance

On January 27, 2025, American Aires Inc. issued financial guidance for the year, projecting sales between $28 million and $32 million, and adjusted EBITDA ranging from a $2 million loss to a $2 million profit. However, in light of recent developments disclosed in the Company's news releases and MD&A for the six-month period ended June 30, 2025, both dated August 29, 2025, the Company has decided to withdraw and supersede all previously issued guidance.

This decision reflects a number of evolving factors that have reduced Company's near-term outlook. These include leadership and governance changes and the emergence of potential legal and regulatory matters. In addition, the Company currently has limited visibility into certain operating inputs such as costs, gross margins, and product supply. These uncertainties are compounded by continued capital markets volatility, which may influence the timing and terms of future financing.

Given these circumstances, the Company believes it is prudent to suspend previously issued guidance until greater clarity is achieved. At this time, the Company does not have sufficient visibility to provide updated quantitative guidance. The Company intends to reassess its outlook once there is more certainty regarding manufacturing and supply chain arrangements, gross margin trajectory, the resolution of any legal matters, and the availability of financing.

Readers are cautioned that all prior guidance, including that announced on January 27 and reiterated in subsequent news releases dated April 28 and May 26, 2025, should no longer be relied upon. The Company does not undertake to provide further guidance or to update forward-looking information except as required by applicable securities laws.

The Company's operations remain ongoing. Facilities and e-commerce platforms are fully operational, and the Company continues to fulfill customer orders and execute planned marketing initiatives. While these activities continue without interruption, Management believes it is prudent to withdraw previously issued guidance until there is greater clarity on the factors noted above.

About American Aires Inc.

American Aires Inc. is a Canadian-based nanotechnology company committed to enhancing well-being and environmental safety through science-led innovation, education, and advocacy. The company sells a line of proprietary patented silicon-based resonator products that transform electromagnetic environments to support health and well-being.* Aires' Lifetune products diffract electromagnetic field (EMF) radiation emitted by consumer electronic devices such as cellphones, computers, baby monitors, and Wi-Fi, including the more powerful and rapidly expanding high-speed 5G networks. The Aires Certified Spaces^TM (AiresCertifiedSpaces.com) standard is a set of protocols for implementing EMF modulation solutions to create authorized EMF-friendly spaces that support well-being in a tech-driven world. Aires is listed on the CSE under the ticker 'WiFi' and on the OTCQB under the symbol 'AAIRF'. Learn more at www.investors.airestech.com and airestech.com/blogs/emf-education.

*Note: Based on the Company's internal and peer-reviewed research studies and clinical trials. For more information please visit https://airestech.com/pages/tech.

This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards including "Adjusted EBITDA" (termed "Non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of the Company. The Company believes that these Non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards, enable investors to evaluate the Company's operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these Non-IFRS measures, the Company's approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards. The Corporation defines EBITDA as earnings before interest tax depreciation and amortisation. Adjusted EBITDA removes irregular and non-recurring items that distort EBITDA, including one-time investor relations consulting fees and share-based compensation to management and consultants.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position and financial measures, YoY sales growth in 2024, sales growth resulting from advertising and promotion expenses, marketing partnerships, international expansion, ability to attract US-based investors, efficiency and effectiveness of the Company's advertising model, future market position, growth, innovations, global impact, business strategy, achieving universal brand awareness and brand development, product adoption, use of proceeds, corporate vision, proposed acquisitions, strategic partnerships, joint ventures, 2024 being our best year ever, continuing our trajectory of revenue growth, relationships with athletes, celebrities and performers, the size and growth of the consumer market focused on wellbeing and EMF protection, strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions, the occurrence of force majeure events, developments and changes in laws and regulations, competitive factors, and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedarplus.ca. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any common shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. We seek safe harbour.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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