Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company focused on bringing healthcare solutions to Canadians through licensing and partnerships, today reports financial results for the year ended December 31, 2022 (“Fiscal 2022”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

“We are excited to have begun a new chapter in our business built around ZIMED®. We hold a strong vision of how we want to grow into the future. The end of Fiscal 2022 concludes our promotional agreement with Sandoz and makes 2023 a pivotal year for Aequus as we focus on our own prescription product with a team that has extensive expertise in Ophthalmology. Years ago, we listened to the unmet need from Canadian Ophthalmologists and patients, and now we are thrilled to be providing an exceptional product to the community we serve,” commented Mr. Janzen, CEO. “I continue to believe in the potential of Aequus and look forward to launching ZIMED® in the next 3 months.”

Mr. Larsen, Chief Commercial Officer of the Company, added that he “is grateful for Mr. Janzen’s support and faith in the team. His recent loan of $500,000 has brought his total loans in the last year to $2.5 million. Aequus has used the past several months of reduced sales activity to retool our sales team, and enhance our marketing capabilities. Reformatting CRM databases, digital sales training, validating HCP and KOL outreach capabilities are just some of the resource upgrades and prelaunch activities that Aequus has invested in and executed since Q4 2022. We are near ready for the ZIMED® launch and expect to begin commercial sales in June.”

Financial Highlights

The Company reported an operating loss before other income and expenses of $2,712,044 for Fiscal 2022, an increase of 49% from the loss before other income of $1,822,294 in Fiscal 2021. The higher loss was primarily due lower revenue in Fiscal 2022 relative to Fiscal 2021. The loss was offset by reduction in general, administration and development expense. The Company also impaired its $566,756 investment in reVision, which impacted the net loss after other income and expense resulting in a net loss of $3,210,044 in Fiscal 2022 compared to a $1,809,592 in Fiscal 2021.

Aequus experienced an increase in revenue related to Evolve sales of $138,860, but a decrease in overall revenue of $1,334,926, or 49%, in revenue in 2022 compared to 2021, which was driven by changes in contractual terms with Sandoz Canada Inc., which is now completed.

Sales and marketing costs in Fiscal 2022 were $2,226,181 when compared to $2,173,592 in Fiscal 2021, a change of 2% or $52,589. The majority of the increase related to an increase in travel and staffing expenses within the sales team.

Research and development included product development expenses in Fiscal 2022 of $168,714 compared to $296,848 in Fiscal 2021, a decrease of 43% or $128,134. The majority of the decrease was attributable to an expected recovery of $150,000 from Medicom Healthcare Ltd. for costs associated with the successful drug submission application to Health Canada for preservative-free bimatoprost 0.03% eye drops termed “ZIMED® PF” in December 2022.

General and administration expenses in Fiscal 2022 were $,1,593,362 compared to $2,023,773 in Fiscal 2021, a decrease of 21% or $430,411. During the year ended December 31, 2022, the Company’s debt related costs were reduced with more favorable loan terms being achieved.

  Fiscal 2022$ Fiscal 2021$
Total revenue 1,379,772   2,714,698  
Net loss for the fiscal year (3,210,044 ) (1,809,592 )
Loss per share, basic and fully diluted (0.02 ) (0.01 )
Total assets 1,691,466   4,348,115  
Total current liabilities (2,377,726 ) (2,457,068 )
Total non-current liabilities (693,778 ) (101,982 )

ABOUT AEQUUS PHARMACEUTICALS INC.

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

FORWARD-LOOKING STATEMENT DISCLAIMER

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to: our ability to continue to grow revenues and add new products; the current loans allowing us to bridge Q1 revenue decreases given the expiry of the Sandoz contract; the expectation that Q1 2023 and Q2 2023 is a transition period as we look to add to our product offerings; the implementation of our business model and strategic plans; revenue growth trends into the future; expected timing for product launches; the Company’s expected revenues; and the regulatory approval of its products. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining regulatory approvals; general business and economic conditions; the Company’s ability to successfully out license or sell its current products and in-license and develop new products; the assumption that the Company’s current good relationships with third parties will be maintained; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; the impact of the coronavirus (COVID-19) on the Company’s operations; and the Company’s ability to protect patents and proprietary rights. In evaluating forward looking statements, current and prospective shareholders should specifically consider various factors set out herein and under the heading “Risk Factors” in the Company’s Annual Information Form dated May 1, 2023, a copy of which is available on Aequus’ profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus’ SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward looking statements.

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

CONTACT INFORMATION Aequus Investor Relations Email: investors@aequuspharma.ca Phone: 604-336-7906

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