Equitech International : Int'l Corp Financial Report

7711 Idlewild Road

Indian Trail, NC 28079

Telephone: [phone]

https://equitechintl.com

August 11, 2022

Dear Equitech Shareholders,

Knowledge, perseverance, and discipline continues to pay off.

During the first six months of 2022, the company had revenues nearly 20% higher than our revenues for the entire 2021!

Our flagship product, the EquiSpec, continues to make inroads in the plastics production and compounding markets. During the first 6 months of the year, we sold multiple systems and probes, ran several trials at the Polymer Center of Excellence and/or at companies' facilities, and more than doubled our sales pipeline.

To facilitate customer trials, we installed a permanent EquiSpec system at the Polymer Center of Excellence

(https://polymers-center.org/) in Charlotte, NC. There, potential customers can schedule trials to measure color directly in the plastic melt or they can select to rent a system and run trials at their own facilities.

The above positive results are great proof that our strategy is correct, and its implementation is spot on!

We are the inventors and developers of a unique technology that provides great benefit to the plastics industry. Thus, we continue a very focused marketing campaign in this industry. To this end, we continue advertising in Plastics Technology (https://www.ptonline.com/zones/extrusion) since a year ago. During Q2, we committed to advertise with Plastics Engineering, the Society of Plastics Engineers magazine, in its 80th anniversary issue. See supporter company profile on page 70 and full page ad on page 97 (https://www.4spe.org/i4a/pages/index.cfm?pageid=4771). In addition, Equitech was featured in a recent article in Compounding World magazine (http://www.compoundingworld.com/).

Quarter 2; however, proved quite challenging because of logistics and inflation issues with electronic parts. This inflationary pressure has caused our COGS to increase ten points relative to Q1 and consequently affected our gross profits. As I write this report in early August, I can confirm that the company took steps to counter this situation in early July by adjusting our prices where possible. It also appears that the logistics issue is beginning to improve slowly, and we should see some easing of the inflationary pressures in the months to come.

Nonetheless, we invested most of our gross profits of this period on our efforts to return Equitech to a growth path, thus the small amount of Net Income reported at the end of this quarter. The results speak for themselves: we are now a Current Information company with the OTC Markets (Pink Sheets), we are reporting periodically meeting OTC requirements, we are investing in new technology and marketing, and we are paying liabilities off rapidly.

On this topic, I am happy to report that we were able to reduce the company's liabilities from $1.576M in Q1 to $852K at the end of Q2, a 46% reduction! This milestone was achieved thanks to the collaboration and commitment of previous and current employees and some noteholders who accepted a debt-for-equity swap. The company is in its strongest financial position since more than 10 years ago and getting stronger by the day!

7711 Idlewild Road

Indian Trail, NC 28079

Telephone: [phone]

https://equitechintl.com

Finally, and as you well know, Equitech is the inventor and developer of the in-line color measurement technology for the measurement of liquids, pastes, and slurries using fiber optic probes that are in full contact with the sample. Some of our first probes included the Reflection Polymer Melt Probe (RPMP), the Transmission Polymer Melt Probe (TPMP) and the Diffuse Reflectance Probe (DRP). After many years of using the initial designs quite successfully, and thanks to the feedback provided by many customers, Equitech has significantly modified and improved these probe's designs seeking to obtain better manufacturability and service, and of course, a better ROI for our customers.

Equitech has a very bright future!

Jaime A. Gómez, PhD

President & CEO

EQUITECH INT'L CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022

EQUITECH INT'L CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS
	PAGE
Independent accountants' compilation report	1
Consolidated financial statements:
Consolidated balance sheet	2 - 3
Consolidated statement of income	4
Consolidated statement of stockholders' deficit	5
Consolidated statement of cash flows	6
Notes to consolidated financial statements	7 - 13

To the Stockholders of

Equitech Int'l Corporation and Subsidiaries

Management is responsible for the accompanying consolidated financial statements of Equitech Int'l Corporation and Subsidiaries (a C corporation), which comprise the consolidated balance sheet as of June 30, 2022, and the related consolidated statements of income, stockholders' equity, and cash flows for the period of January 1, 2022 through June 30, 2022, and the related notes to the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the consolidated financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. We do not express an opinion, a conclusion, nor provide assurance on these consolidated financial statements.

Atlanta, Georgia

August 8, 2022