D-BOX recovers from ransomware cyberattack and announces the gradual resumption of its activities

Deferral of filing of financial results for first quarter ended June 30, 2021

MONTREAL, July 28, 2021 (GLOBE NEWSWIRE) — D-BOX Technologies Inc. (“D-BOX” or the “Corporation”) (TSX: DBO), a world leader in haptic and immersive entertainment, announces that the Corporation is gradually resuming its activities following a ransomware cyberattack against its internal IT systems announced on July 14, 2021. All major IT systems have been restored and the restoration work should be finalized in the next few weeks. Production was never completely interrupted, and recovery of its various internal IT systems has begun. Although the release of the Corporation’s unaudited and condensed interim consolidated financial statements and management’s discussion and analysis for the quarter ended June 30, 2021 (the “Required Filings”) will be deferred, D-BOX is nevertheless in a position to announce that it anticipates, on a provisional basis, estimated revenues of $ 3.1 million for the first quarter ended June 30, 2021, an increase of approximately 40% compared to the same quarter last year.

D-BOX has always maintained a clear separation between its internal IT systems and services for its partners. The Corporation believes that the impact of the cyberattack was limited to internal systems, and that its services to studios and theatre operators were not affected. In addition, according to the report of an external firm specializing in cyber incidents, analyses show that its clients’ systems were not breached or affected during the cyberattack. Therefore, D-BOX does not anticipate that any security patches to its services or software updates will be required for its partners as a result of the cyberattack. In addition, the Corporation has, as a precautionary measure, offered all its employees and directors an identity theft and fraud protection service through Equifax for a period of 12 months.

“Security is a top priority and D-BOX is committed to continuing to take all appropriate measures to ensure the highest integrity of all our systems,” said Sebastien Mailhot, President and CEO of D-BOX. “I’m proud of the efforts of our IT team and external advisors, as they mitigated the attack and accomplished an enormous amount of work in order to resume activities. D-BOX is committed to continuing to communicate directly with all of its clients and partners, whom we thank for their patience as we resolve this situation. The Corporation believes that the financial impact of this cyberattack on the results should be negligible.”

As a result of the cyberattack, the release of the Required Filings will be deferred until after the prescribed August 14, 2021 deadline. Management will work to produce the Required Filings as soon as possible, but the delay could be two to four weeks.

The Corporation has applied to the applicable Canadian securities regulatory authorities for a management cease trade order (“MCTO”). There is no certainty that the MCTO will be granted. Until the Required Filings are filed, the Corporation intends to satisfy the provisions of the alternative information guidelines in accordance with National Policy 12-203 – Management Cease Trade Orders by issuing bi-monthly status reports in the form of news releases.

The applicable Canadian securities regulatory authorities may issue a general cease trade order against the Corporation for failure to file the Required Documents within the prescribed time period or sooner if the Corporation fails to file its status report during the prescribed time limits. There are no insolvency proceedings that the Corporation is subject to and there is no other material information concerning the affairs of the Corporation that has not been previously disclosed.

ABOUT D-BOX
D-BOX creates and redefines realistic, immersive entertainment experiences by moving the body and sparking the imagination through effects: motion, vibration and texture. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it’s movies, video games, music, relaxation, virtual reality applications, themed entertainment or professional simulation, D-BOX creates a feeling of presence that makes life resonate like never before. D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit D-BOX.com.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain information included in this press release may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, business outlook, and financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this press release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on several assumptions which give rise to the possibility that actual results could differ materially from the Corporation’s expectations expressed in or implied by such forward-looking information and no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including but not limited to the future plans, activities, objectives, operations, strategy, business outlook and financial performance and condition of the Corporation.

Forward-looking information is provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of the Corporation’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.

Forward-looking information provided in this press release is based on information available at the date hereof and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.