Route1 Announces Business Updates

Route1 Completes a Sale of Certain of its Employee Retention Credits, Enters into a Parking Revenue Sharing Model with a Smart Parking Partner, and Launches its Actionable Business Intelligence Software Application for its ALPR Clients

TORONTO, ON / ACCESS Newswire / June 19, 2025 / Route1 Inc. (TSXV:ROI) ("Route1" or the "Company"), a leading engineering and professional services firm specializing in the deployment and integration of advanced data capture-based technologies and actionable business intelligence ("ABI") to city, state, and federal first responder departments, public safety and parking managers, today provided important business updates.

EMPLOYEE RETENTION CREDITS MONETIZED

The Employee Retention Credit ("ERC"), also known as the Employee Retention Tax Credit ("ERTC"), was designed to help businesses recover from the COVID-19 pandemic. The overall goal of the program was to encourage employers to retain employees during pandemic-related business shutdowns and slowdowns.

First introduced in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act, the ERC has been updated twice since its original creation. In November 2021, the ERC program expired early with the signing of the Infrastructure Investment and Jobs Act. The change limited ERC claims to wages paid before October 1, 2021, except for recovery startup businesses. Businesses can still retroactively claim ERC by amending their 2020 or 2021 tax returns, meaning employers can still claim the credit for actions during the pandemic on their tax returns up until the year 2024.

Route1 has such credits filed prior to January 31, 2024 totaling USD $467,030 and filed an additional USD $852,972 in credits between February 1, 2024 to January 31, 2025. Route1 engaged a third-party professional to assist in its submission.

The credits were for Route1's wholly owned U.S. subsidiaries Route 1 Security Corporation, Group Mobile Int'l, LLC and Portable Computer Systems, Inc. relating to wages paid to employees between April 1, 2020 and September 30, 2021.

On June 18, 2025, Route1 sold USD $467,030 of its ERCs (the "ERC Claim Amount") to a private equity fund. Route1 has received payment of USD $179,807 and subject to the US government paying out the ERC Claim Amount, will receive an additional USD $65,384.

The private equity fund purchased the ERC Claim Amount at a discount to the face value and required an additional amount to be held back until the ERC Claim Amount is paid out by the US government. Route1 also incurred professional fees to complete the transaction.