Fobi AI Inc. announced that Fobi has signed a two-year license renewal with one of the insurance providers, further to the Company's press release dated January 5, 2022. Fobi will earn CAD 440,000 in revenue from this deal through a one-time, upfront payment from the insurance provider in which the effective date of renewal was October 1, 2023. A majority of the disclosed revenue amount is receivable, however, the remaining revenue is projected and the actual amount may vary.

This revenue will be recognized throughout the 24-month term in accordance with standard IFRS policies in which the Company will recognize revenues each quarter over the duration or term of the contract. Fobi continues to significantly grow its position and scale across the insurance industry, now encompassing over 22 insurance clients that cover a total of 40+ brands to date. Fobi's Wallet Pass platform enables the insurance provider to issue digital proof of insurance passes for its various service offerings across five countries in Europe and now supports North American expansion.

With the convenience of a mobile phone, digital proof of insurance enables a seamless customer experience for drivers and law enforcement officers alike. Instead of rummaging through physical wallets and glove complements for the paperwork needed when an accident happens, drivers can simply open their wallet passes to exchange information. Smartphone cameras can also be used to scan the pass' QR code, and the drivers' information is then automatically sent to their insurance company to speed up claims processing.

The insurance client specifically chose Fobi to provide its service for many different purposes, all of which are also reasons why they structured an auto-renewal of their contract. The company recognized that Fobi's distinct combination of features and functionality, customization, and customer service was highly differentiated from any other solution in the market. In addition, Fobi's GDPR compliance and the fact that the client's Wallet Pass platform operates on a dedicated instance in the Google Cloud was a key contributor to the company's decision, given the insurance industry's critical requirements of data privacy, protection, and compliance.