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

Executive Summary

• Route1 Inc. reported financial results for the three- and six-month periods ended June 30, 2025, alongside the launch of its Actionable Business Intelligence (ABI) 3.0 software and the sale of Employee Retention Credits (ERC).
• The company launched ABI 3.0, an advanced analytics platform for ALPR data, with Version 3.0.1 released on August 26, 2025, and subsequent versions (3.0.2 and 3.5) scheduled for release by late August and September 2025, respectively.
• Route1 monetized its ERC portfolio by selling claims totaling approximately USD $935,832 to a private equity fund, receiving immediate cash proceeds of USD $347,643 with additional contingent payments pending US government payout.

Key Details

• Product Launch (ABI 3.0):
  • Version 3.0.1: Released August 26, 2025; incorporates data from fixed ALPR cameras (Parking Metrics), including parking session density, violation frequency, facility utilization, and dwell time.
  • Version 3.0.2: Scheduled for release by August 29, 2025, featuring end-user requested enhancements.
  • Version 3.5: Scheduled for release on or before September 30, 2025; will integrate with parking ticketing systems to quantify economic impact and opportunity costs.
  • First Sale: Closed on the first sale of the ABI software to an Arizona-based university, with other colleges and local governments in negotiation.
• Employee Retention Credit (ERC) Sales:
  • First Claim: Sold USD $467,030 of ERCs on June 18, 2025. Received USD $179,807 immediately, with USD $65,384 contingent on US government payout.
  • Second Claim: Sold USD $468,802 of ERCs on August 8, 2025. Received USD $167,836 immediately, with USD $58,122 contingent on US government payout.
  • Total Face Value Sold: USD $935,832.
  • Total Immediate Proceeds: USD $347,643.
  • Contingent Proceeds: USD $123,506.
  • Risk: If the IRS disallows claims, Route1 may be required to refund proceeds and reimburse professional fees.
• Q2 2025 Financial Results (in CAD thousands):
  • Revenue: $3,691 (up from $3,484 in Q2 2024).
    • Subscription and services: $1,465.
    • Devices and appliances: $2,233.
  • Gross Profit: $1,348.
  • Operating Profit: $74 (compared to loss of $(242) in Q2 2024).
  • Net Income/Loss: $(61) (compared to loss of $(328) in Q2 2024).
  • Adjusted EBITDA: $269 (compared to $2 in Q2 2024).
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash: $64,000.
  • Total Current Assets: $3,116,000.
  • Total Current Liabilities: $7,136,000.
  • Net Working Capital: $(4,020,000).
  • Total Shareholders' Equity: $(609,000).
  • Net Bank Debt and Seller Notes: $3,216,000.
• Outstanding Options: 525,000 options outstanding as of August 26, 2025.

Notable Quotes

• "We have closed on our first sale of our ABI software application to an Arizona based university, with a number of other colleges, parking operators, and local governments working to complete their purchase shortly. It is great to identify the operational failures, it is more important to know how to act to create dramatically improved parking outcomes." — Tony Busseri, President and CEO