Kelso Technologies Inc. ("Kelso" or the "Company"), (TSX:KLS) reports that the Company has released the audited consolidated financial statements and Management Discussion and Analysis for the year ended December 31, 2023.

The audited year end financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All amounts herein are expressed in United States dollars (the Company's functional currency) unless otherwise indicated. The Company's audited consolidated financial statements and MD&A for the year ended December 31, 2023 were approved by the Board of Directors on March 20, 2024.

SUMMARY OF FINANCIAL PERFORMANCE

Year ended December 31	2023	2022	2021
Revenues	$	10,819,916	$	10,931,188	$	7,425,707
Gross profit	$	4,582,447	$	4,908,996	$	3,196,492
Gross profit margin	42%	45%	43%
Operating expenses	$	5,878,723	$	6,126,992	$	6,254,981
Taxes	$	170,475	$	166,031	$	172,639
Net income (loss)	$	(2,101,886)	$	(1,355,417)	$	(2,758,567)
Basic and diluted earnings (loss) per share	$	(0.04)	$	(0.02)	$	(0.05)
Non-cash recoveries and expenses	$	1,085,924	$	1,271,842	$	549,612
Adjusted EBITDA (Loss) (1)	$	(845,487)	$	(83,575)	$	(1,436,435)
Liquidity and Capital Resources
Working capital	$	5,026,580	$	7,000,568	$	8,670,165
Cash	$	1,433,838	$	2,712,446	$	3,377,464
Accounts receivable	$	1,065,411	$	1,381,979	$	807,009
Net equity	$	8,720,248	$	10,781,672	$	12,055,113
Total assets	$	9,703,271	$	12,147,143	$	13,728,510
Common shares outstanding	54,443,422	54,320,086	54,320,086
(1) Adjusted EBITDA for the year ended December 31, 2023, 2022 and 2021 has been calculated as follows:

Year ended December 31
2023	2022	2021
Net income (loss)	$	(2,101,886)	$	(1,355,417)	$	(2,758,567)
Unrealized foreign exchange loss (gain)	$	1,154	$	(31,648)	$	(26,409)
Amortization	$	785,505	$	1,044,222	$	1,573,091
Income taxes	$	170,475	$	166,031	$	172,639
Gain on revaluation of derivative warrant liability	$	(3,665)	$	(263,446)	$	(658,626)
Gain on repurchase of RSU's	$	(40,785)	$	(45,806)	$	-
Write down of inventory	$	214,225	$	260,040	$	117,403
Gain (loss) on sale of property, plant and equipment	$	-	$	(20,602)-	$	8,389
Share based expense	$	129,490	$	163,051	$	133,645
Bad debt recovery	$	-	$	-	$	2,000
Adjusted EBITDA (Loss)	$	(845,487)	$	(83,575)	$	(1,436,435)

Adjusted EBITDA (loss) represents net earnings or loss for the year ended December 31, 2023 before interest, taxes and tax recoveries, amortization, deferred income tax recovery, unrealized foreign exchange losses, non-cash share-based expenses (Black-Scholes option pricing model) and write-off of assets. Adjusted EBITDA (loss) removes the effects of items that do not reflect the Company's underlying operating performance and are not necessarily indicative of future operating results. Adjusted EBITDA (loss) is not an earnings measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA (loss) is an alternative measure in evaluating the Company's operational performance and its ability to generate cash to finance business operations.

Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, the Company's Adjusted EBITDA may not be comparable to similar measures used by any other issuer.

LIQUIDITY AND CAPITAL RESOURCES

As at December 31, 2023 the Company had cash on deposit in the amount of $1,433,838, accounts receivable of $1,065,411 prepaid expenses of $134,349 and inventory of $3,376,005 compared to cash on deposit in the amount of $2,712,446, accounts receivable of $1,381,979, prepaid expenses of $92,768 and inventory of $4,144,196 as at December 31, 2022.

The Company had income tax payable of $10,024 at December 31, 2023 compared to $30,626 at December 31, 2022.

The working capital position of the Company as at December 31, 2023 was $5,026,580 compared to $7,000,568 as at December 31, 2022. Capital resources and operations are to be expected to continue the Company's ability to conduct ongoing business as planned for the foreseeable future.

Total assets of the Company were $9,703,271 as at December 31, 2023 compared to $12,147,143 as at December 31, 2022. Net assets of the Company were $8,720,248 as at December 31, 2023 compared to $10,781,672 as at December 31, 2022. The Company had no interest-bearing long-term liabilities or debt as at December 31, 2023 or December 31, 2022.

Kelso Technologies Inc. FY23 EPS $(0.04) Vs $(0.02) YoY; Revenue $10.82M Vs $10.93M YoY