Insignia : 2019 Fourth Quarter and Full Year Financial Results

MINNEAPOLIS, MN - March 5, 2020 - Insignia Systems, Inc. (Nasdaq: ISIG) ('Insignia') today reported financial results

for the fourth quarter ('Q4') and the full year ended December 31, 2019.

• Q4 2019 net sales decreased 22.2% to $6.3 million from $8.1 million in Q4 2018
• 2019 net sales were $22.0 million, a decrease of 33.9% from $33.2 million in
• Q4 and full year 2019 results both reflect the impact of a $2.0 million impairment loss triggered primarily by the fact that our market capitalization was below the book value of our assets coupled with the aggregate impact of recent
• Q4 2019 operating loss was $2.5 million compared to operating income of $0.5 million in Q4
• 2019 operating loss was $5.6 million compared to operating income of $1.8 million in
• Q4 2019 net loss was $2.5 million, or $0.21 per basic and diluted share, compared to net income of $0.4 million, or $0.04 per basic and diluted share in Q4
• 2019 net loss was $5.0 million, or $0.42 per basic and diluted share, compared to net income of $1.4 million, or $0.12 per basic and diluted share in

Insignia's President and CEO, Kristine Glancy, commented, 'While our Q4 2019 results show a significant decline versus Q4 2018, the 22% decline in Q4 2019 revenue was an improvement from the 38% cumulative sales decline over the first three quarters of 2019. Competitive pressures remain in our core in-store signage solutions. However, we continue to find innovative ways to work with our customers to help them convert sales and get discovered. CPG manufacturers continue to invest in their new products, giving us optimism that our product portfolio is relevant to our clients. While we are still building awareness around our mobile solution; we are pleased by the higher than average industry and category results our platform has delivered for our clients. Our focus on product portfolio diversification delivered strong results in 2019, with our Non-POPS revenue growing $2,936,000, or 53% versus full- year 2018. We remain committed to further refining, and enhancing our solutions and broadening our retailer partnerships to support our CPG clients. I am proud of our team for their resiliency, commitment and authenticity in partnering with our clients to deliver what they need, when they need it and how they want it executed.'

Ms. Glancy continued, 'Our disappointing recent financial results are a reflection of the competitive pressures impacting our POPS solution and the challenges of reshaping our product portfolio. We recorded a $2.0 million non- cash impairment loss in Q4 2019, primarily as a result of these challenges and the fact that our market capitalization was below the book value of our assets coupled with the aggregate impact of recent losses. We believe the impairment charge is not a reflection of Insignia's long term opportunities. As we move forward, we intend to focus on growing our top line, look to gain efficiencies in our innovation solutions and our overall cost structure, and manage our working capital. Our ending 2019 balance sheet reflects $7.5 million of cash and $11.4 million of working capital, which provides the necessary resources to execute our strategy and fund our pending legal proceedings. In the fourth quarter 2019, our operational use of cash was $0.2 million as compared to $2.1 million in the first nine months of 2019. We remain confident in our product evolution, our team and our ability to serve our clients.'