Route1 Announces Business Updates and Its Financial Results for the Three and Nine Months Ended September 30, 2025

Executive Summary

• Route1 Inc. reported financial results for the three- and nine-month periods ended September 30, 2025, including Q3 2025 operating commentary and detailed financial statements.
• The company completed the first tranche of a non-brokered private placement, raising approximately C$234,250 in gross proceeds at C$0.075 per unit, with additional tranches expected.
• Significant operational updates include the launch of Route1 ABI, growth in ALPR support contract revenue exceeding USD $300,000 per quarter, and the monetization of Employee Retention Credits (ERC).

Key Details

• Q3 2025 Financial Performance (in CAD thousands):
  • Total Revenue: $2,954 (vs. $3,706 in Q3 2024).
  • Subscription and Services Revenue: $1,203.
  • Devices and Appliances Revenue: $1,759.
  • Gross Profit: $1,179.
  • Operating Profit: $43 (vs. $(87) in Q3 2024).
  • Net Income: $252 (vs. $(283) in Q3 2024).
  • Adjusted EBITDA: $220 (vs. $147 in Q3 2024).
• Private Placement Details:
  • Structure: Non-brokered private placement of units.
  • Price: C$0.075 per Unit.
  • Gross Proceeds (Initial Closing): Approximately C$234,250.
  • Securities Issued: 3,123,332 Common Shares and 3,123,332 Warrants.
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at C$0.10 for 18 months.
  • Hold Period: Four-month hold period expiring March 20, 2026.
  • Use of Proceeds: To fund the development of Route1's Actionable Business Intelligence ("ABI") software application.
  • Total Offering Size: Up to C$500,000, expected to close in multiple tranches.
• Operational Updates:
  • Launched Route1 ABI.
  • Quarterly ALPR support contract revenue grew beyond USD $300,000, annualizing to USD $1.2 million.
  • Working capital deficiency improved by $817,000 over the last six months and $419,000 in Q3 alone.
  • Bank indebtedness and notes payable decreased by $202,000 over the last two quarters.
• Employee Retention Credit (ERC) Monetization:
  • Total ERC claims filed: USD $1,320,002.
  • First ERC Claim: Sold USD $467,030 face value; received USD $179,807 cash plus USD $65,384 long-term receivable (subject to government payout).
  • Second ERC Claim: Sold USD $468,802 face value; received USD $167,836 cash plus USD $58,122 long-term receivable (subject to government payout).
  • IRS Payment: Received USD $111,478 plus interest on November 14, 2025, on retained claims valued at USD $122,101. Remaining retained claims balance is USD $10,624.
  • Outstanding Claims: Total long-term receivable balance is USD $123,506 (CAD $171,933).
• Product Roadmap:
  • Route1 ABI Version 4.0 with AI Co-Pilot to be released in early 2026.
  • AI Co-Pilot features include event-aware staffing, predictive compliance sweeps, and proactive curb allocation, running on dedicated on-premises AI infrastructure.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.