24^th Profitable Quarter in a Row despite Impact of Pandemic

November 17, 2020, Vancouver, Washington. Adaptive Ad Systems, Inc. (OTC:AATV), today releases the Company’s report of its financial performance for the quarter ending on September 30, 2020.  Adaptive and its subsidiary companies provide Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for all U.S. cable TV markets and High Speed Fixed Wireless Internet Service (WISP) via a network of Hybrid Access Points and Micro POPs.

The Company reports that despite the COVID-19 pandemic and its continued disruption of nationwide business in nearly every industry and market, Adaptive was able to continue full deployment of scheduled ad insertions throughout its cable tv network. At the same time, the Company was able to accelerate new installations of its proprietary Adaptive hardware and software systems, providing the technology basis for the expansion of its national network and further increase revenue potential.

Sales for the three months ending September 30, 2020 were substantially higher than sales in the comparative period in 2019, increasing to $3,519,410 from $973,133, an increase of $2,546,277, or 262%.   While many television advertising companies were negatively affected by the unprecedented impact of the COVID-19 pandemic, in contrast, Adaptive was able to produce a significant increase in revenue and produce a historically profitable quarter, the 24^th profitable quarter in a row. Results are summarized as follows:

• Total sales for the third quarter were $3,519,410, as compared to $973,133 in the same quarter 2019.
• Nine months sales increased to $6,014,054, as compared to $3,366,202 in 2019.
• Nine months Net Profit before taxes increased to $2,628,820, as compared to $499,454 in 2019.
• Total assets increased to $11,752,135, an increase of $3,186,963.
• Current assets exceed liabilities by $9,788,424.
• Current cash balance is $2,415,857.

CEO J. Michael Heil states: “As we reported last quarter, even though some analysts had expected a more significant negative impact on our financial performance in 2020 due to the lack of consumer confidence during the ongoing pandemic, we were able to respond effectively to difficult market conditions. We accelerated the installation of new systems, expanded our existing network, and maintained the scheduled deployment of our ad insertions.  Earlier this year, we had projected a 20% sales increase from the second quarter, but we were able to outperform this goal with a sales increase of almost 200 percent from the prior quarter.  Even more significantly, we succeeded in producing the best quarter of our entire history.  Our team has done a remarkable job of working through various challenging issues and delivered historic company performance, while at the same time continuing to expand our existing digital ad Insertion network and develop new technologies and services to lead the Company into the future.”

ABOUT ADAPTIVE
Adaptive Ad Systems Inc. is a digital media and video communications company. Together with its subsidiaries and manufacturing suppliers, the Company provides Dynamic Digital Ad Insertion (DDAI) services and develops and deploys streaming media hardware and proprietary processing software for the Cable TV, Satellite, IPTV markets. Via its subsidiary Adaptive Broadband (ABB), the Company provides High Speed Fixed Wireless Internet Service (WISP) to residences and small offices via a network of Hybrid Access Points and Micro POPs.  The Company’s DDAI and WISP services target the often-over-looked 2nd and 3rd Tier cable TV and rural WIFI markets and now also Tier 1 markets across the US.  Adaptive’s proprietary software and hardware, installed in scores of cable television systems across the United States, creates a “network” of linked cable tv system. This allows advertisers to purchase ads across the nationwide Adaptive network, generating significantly more ad impressions than through traditional ad insertion technologies in individual systems. Adaptive Ad Systems has established an innovative revenue share agreement with each individual cable tv system and manages all ad-related activities. Currently, the Company serves over 75 designated marketing areas in over 40 states. The Company’s Adaptive Broadband network system provides services . For additional information, please visit: www.aatv.co.

FORWARD-LOOKING STATEMENTS

Any statements contained in this press release that do not describe historical facts constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for current and future operations, the development, regulatory approvals and commercialization of the Company’s products, or any of the Company’s proposed services, systems, services, licensing arrangements, joint ventures, partnerships or acquisitions. Such forward-looking statements are not meant to predict or guarantee actual results or performance and actual events or results may differ considerably. Factors that may cause actual results to differ materially from any projections may include, without limitation, delays in the Company’s development of its products and services, the inability to obtain requisite financing, the impact of significant new or changing government regulations on the industry, existing or increased competition, results of arbitration or litigation, stock volatility and illiquidity, and possible general failure to effectively implement the Company’s business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any change in events or circumstances that may arise after the date of this release.

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