Janover Reports Third Quarter 2023 Financial Results and Provides Business Update

Quarterly Revenue Increased 11%

Revenue from Small Business Administration Transactions Doubled

Quarterly Revenue Per Transaction Increased 78%

Boca Raton, FL – November 14, 2023 – Janover Inc. (Nasdaq: JNVR) (“Janover” or the “Company”), an AI-enabled B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch, today provided a business update, and announced its financial results for the third quarter ended September 30, 2023.

Financial Highlights

• 11% year-over-year revenue growth for the quarter ended September 30, 2023;
• 16% improvement in adjusted EBITDA for the 9 months ended September 30, 2023;
• Revenue per transaction increased 78% year-over-year for the third quarter of 2023; and
• Completed an IPO on July 25, 2023 onto the Nasdaq Stock Market raising over $5.0 million, with $5.8 million in cash and cash equivalents as of September 30, 2023.

Operational Highlights

• Entered into strategic referral partnership with La Rosa Holdings
• Entered into strategic partnership with Xchange.Loans to capitalize on market dislocation
• Achieved significant growth and engagement from top credit unions within its fintech marketplace
• Launched enhanced AI capabilities focused on business development and a standalone chatbot interface
• Inaugurated real estate advisory board
• Appointed finance veteran Bruce S. Rosenbloom, CPA as CFO
• Launched new AI Capabilities to further strengthen its fintech marketplace

Blake Janover, CEO of Janover, stated, “I am pleased to report that we achieved an 11% year-over-year increase in revenue for the third quarter of 2023, despite tremendous dislocation in the commercial real estate market. This is a testament to the strength of our marketplace and the value of being at the intersection of millions of borrowers and nearly 10% of the banks in America. I’m particularly excited that revenue from Small Business Administration (SBA) transactions more than doubled during the quarter compared to the same period last year. We think that segment of our business represents a significant growth opportunity. Notably, our revenue per transaction increased by 78% for the quarter as we focus on the most profitable cohorts of our business. On the heels of our recent IPO, we are well capitalized to execute on our strategic initiatives including sales, marketing, AI enhancements and introducing new products into our ecosystem. We’ve never been more excited about our growth prospects.”

Mr. Janover added, “We have built a powerful AI-enabled platform that addresses inefficiencies in commercial real estate and small loan transactions. Through the implementation of generative AI and our digital platform, we aim to build the largest repository of first party commercial lender and borrower data in America which we can use to create better experiences for borrowers and lenders while continually training our AI to become increasingly useful to all stakeholders. We also recently announced strategic partnerships with two leading companies in the commercial real estate sector, which we believe will allow us to capture additional market share by providing a frictionless, efficient, user-friendly, and cost-effective commercial transactions for lenders and borrowers. We have built a lean, scalable, and high gross-margin business and are prepared to scale in 2024 and beyond.”

Financial Results

Revenue for the quarter ended September 30, 2023, was $583,785, compared to $525,360 for the quarter ended September 30, 2022, an increase of 11%. Sales and marketing expenses for the three months ended September 30, 2023 were $764,189, compared to $449,211 for the three months ended September 30, 2022, an increase of $314,978, or 70%. The majority of the increase can be attributed to an increase in stock-based compensation expense during the three months ended September 30, 2023, due to issuance of common stock upon our IPO for services, cancellation of employee stock options and issuance of common stock in connection with the IPO, compared to the same period in 2022. Net loss was $1.6 million, or $0.17 basic and diluted loss per share, for the quarter ended September 30, 2023, compared to net loss of $267,642, or $0.04 basic and diluted loss per share, for the quarter ended September 30, 2022. Adjusted EBITDA was a loss of $407,107, or $0.04 basic and diluted loss per share, for the quarter ended September 30, 2023, compared to adjusted EBITDA loss of $395,725, or $0.06 basic and diluted loss per share, for the quarter ended September 30, 2022.

Revenue was relatively flat at $1.7 million for both the nine months ended September 30, 2023 and September 30, 2022, a slight decrease of 2%. Sales and marketing expenses for the nine months ended September 30, 2023 were $1.4 million, compared to $1.2 million for the nine months ended September 30, 2022, an increase of $155,380, or 13%. The majority of the increase can be attributed to an increase in stock-based compensation expense during nine months ended September 30, 2023, due to issuance of common stock upon our IPO for services, cancellation of employee stock options and issuance of common stock in connection with the IPO, compared to the same period in 2022. Net loss was $2.2 million, or $0.28 basic and diluted loss per share, for the nine months ended September 30, 2023, compared to net loss of $1.5 million, or $0.22 basic and diluted loss per share, for the nine months ended September 30, 2022. Adjusted EBITDA was a loss of $724,509, or $0.09 basic and diluted loss per share, for the nine months ended September 30, 2023, compared to adjusted EBITDA loss of $865,928, or $0.13 basic and diluted loss per share, for the nine months ended September 30, 2022. Adjusted EBITDA and adjusted EBITDA per share are non-GAAP financial measures.

About Janover Inc.

Janover is a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. The Company seeks to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through the Company’s online platform, it provides technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which Janover believes represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. Additional information about the Company is available at: https://janover.co/.

To view the latest investor presentation, please visit https://ir.janover.co/.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” strategy,” “future,” “likely,” “may,”, “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) the effect of and uncertainties related the ongoing volatility in interest rates; (ii) our ability to achieve and maintain profitability in the future; (iii) the impact on our business of the regulatory environment and complexities with compliance related to such environment; (iv) our ability to respond to general economic conditions; (v) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (vi) our ability to access sources of capital, including debt financing and other sources of capital to finance operations and growth and other risks and uncertainties more fully in the section captioned "Risk Factors" in the Company’s Registration Statement on Form S-1 related to the public offering (SEC File No. File No. 333-267907) and other reports we file with the SEC. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Contact:

Crescendo Communications, LLC

Tel: 212-671-1020

Email: jnvr@crescendo-ir.com

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Reconciliation of Non-GAAP Measures
Janover Inc.
(Unaudited)

Non-GAAP Financial Measures

To provide investors and the market with additional information regarding our financial results, we have disclosed adjusted EBITDA and adjusted EBITDA per share, non-GAAP financial measures that we calculate as net loss excluding; stock-based compensation expense; depreciation; and other income (expense). We have provided reconciliations of adjusted EBITDA to net loss and adjusted EBITDA per share to earnings per share, the most directly comparable GAAP financial measures.

We have included adjusted EBITDA and adjusted EBITDA per share, herein, because they are key measures used by our management and Board of Directors to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA per share provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.