Mr. Evan Gappelberg reports

ARWAY CORP REPORTS +277% REVENUE GROWTH AND 87% REDUCTION IN NET LOSS IN AUDITED FINANCIAL RESULTS

ARway Corp. had 277-per-cent revenue growth and 87-per-cent reduction in net loss in its audited financial results for the seven-month period ended March 31, 2025. The results highlight the company's continued revenue acceleration and strong operational discipline as it scales globally.

Company delivers strong operating leverage and momentum ahead of full-year fiscal 2025

Financial highlights (seven-month period ended March 31, 2025, versus 12 months ended Aug. 31, 2024):

• Revenue increased 277 per cent to $478,760, up from $126,856 in the prior fiscal year;
• Gross profit rose 250 per cent to $444,407, reflecting the high-margin contribution from AR (augmented reality) software and services;
• Net loss narrowed significantly to $327,290, an 87-per-cent improvement from the $2.43-million loss in the previous year;
• Operating expenses decreased by 70 per cent from $2.55-million to $771,697, due to strategic cost optimization;
• Deferred revenue increased 87 per cent, from $242,947 to $454,696, signalling strong forward bookings and prepayments.

Operational highlights:

• R&D (research and development) investment totalled $120,512, focused on enhancing ARway's artificial-intelligence-powered, no-code spatial mapping platform;
• Sales and marketing spend reached $269,971, driving continued brand growth across key AR and metaverse markets.

Chief executive officer commentary

"Our results reflect solid execution against a backdrop of rapid platform adoption," said Evan Gappelberg, chief executive officer of ARway. "With revenue up 277 per cent and operating expenses down 70 per cent, we're proving our ability to scale efficiently. The strong growth in deferred revenue demonstrates increasing customer demand and long-term confidence in our platform. We remain focused on disciplined growth, continuous innovation and delivering sustained shareholder value."

Outlook

ARway is well positioned to benefit from accelerating demand for immersive experiences across the event industries. With a lean operating model, high gross margins and a growing pipeline, the company expects continued financial momentum through fiscal 2025.

About ARway Corp.

ARway is an AI-powered spatial computing platform that enables brands and developers to create immersive augmented reality indoor navigation experiences without the need for coding. Through mobile AR, computer vision and AI, ARway turns physical environments into interactive digital layers for retail, education, industrial facilities, exhibitions and more.

We seek Safe Harbor.