Mr. Eric Caton reports

JEMTEC 2026 Q1 & FINANCIAL UPDATE

Jemtec Inc. has provided an update on its performance for the fiscal quarter ended Oct. 31, 2025 (Q1 2026) and the company's situation, showing a quarterly profit, no debt, and strong liquidity and net worth.

Q1 revenues

Revenues have increased by 9 per cent during the quarter ended Oct. 31, 2025, compared with the quarter ended Oct. 31, 2024. The company earned revenues on its agreements with Saskatchewan, CSC, interest on cash balances and from private bail clients waiting release from court dates.

Q1 direct costs

During the quarter ended Oct. 31, 2025, direct costs decreased by 17 per cent compared with the quarter ended Oct. 31, 2024, primarily due to the fluctuations in consulting fees, equipment rental and installation, monitoring and activation fees, shipping and other, director fees, and travel.

Q1 expenses

During the quarter ended Oct. 31, 2025, expenses increased by 1 per cent compared with the quarter ended Oct. 31, 2024. Significant fluctuations were recorded in share-based payments and office.

Q1 income tax

For the quarter ended Oct. 31, 2025, the company recognized a current income tax expense of $34,200 (Oct. 31, 2024 -- $11,000) and a deferred income tax expense of nil (Oct. 31, 2024 -- $1,000). The current income tax expense was related to income tax in Canada. The deferred income tax recovery was related to unrecognized deferred tax assets.

Q1 net income

For the quarter ended Oct. 31, 2025, the company recorded a net income of $92,955, compared with a net income of $25,525 during the quarter ended Oct. 31, 2024. This increase in net income is primarily associated with the expansion of the Saskatchewan contract and the decrease in certain expenses.

Q1 liquidity

At Oct. 31, 2025, the company had cash of $2,713,054 and working capital of $2,522,220. All cash is on deposit with a Schedule I bank in Canada in current or interest-accruing accounts.

Eric Caton, president and chief executive officer, said: "We are pleased to record a profit and continue the process of reducing expenses and reorganizing our business model. With a greater awareness on profitable contracts, we expect the results should show positive returns going forward and we continue to see the company well positioned to grow its core business." Jemtec has provided a full spectrum of monitoring technologies and services to provincial and federal correctional and border services across Canada since 1987 and, in doing so, has built a reputation for offering the best technological solutions and support for use in this demanding environment.

We seek Safe Harbor.