Mr. Eric Caton reports

JEMTEC 2026 Q2 CORPORATE AND FINANCIAL UPDATE

Jemtec Inc. has provided an update on its performance for the fiscal quarter ended Jan. 31, 2026 (second quarter 2026), and the company's situation, showing a quarterly profit, no debt, strong liquidity and net worth. The company has also updated its board structure to ensure two-thirds of the audit committee are independent board members.

Q2 revenues

Revenues have increased by 1 per cent during the quarter ended Jan. 31, 2026, compared with the quarter ended Jan. 31, 2025, primarily due to the expansion with the Province of Saskatchewan. The company earned revenues on its agreements with Saskatchewan, CSC, interest on cash balances and private bail clients waiting release from court dates.

Q2 direct costs

During the quarter ended Jan. 31, 2026, direct costs increased by 9 per cent compared with the quarter ended Jan. 31, 2025, primarily due to the fluctuations in monitoring and activation fees, shipping, and travel.

Q2 expenses

During the quarter ended Jan. 31, 2026, expenses decreased by 8 per cent compared with the quarter ended Jan. 31, 2025, primarily due to the fluctuations in accounting and administrative, salaries and benefits, and share-based payments.

Q2 income tax

For the quarter ended Jan. 31, 2026, the company recognized a current income tax expense of $15,600 (Jan. 31, 2025: $16,000) and a deferred income tax expense (recovery) of ($1,000) (Jan. 31, 2025: nil). The current income tax expense was related to income tax in Canada.

Q2 net income

For the quarter ended Jan. 31, 2026, the company recorded net income of $36,237, compared with net income of $42,299 during the quarter ended Jan. 31, 2025. This decrease in net income is primarily associated with the increase in direct costs of the Saskatchewan contract and the decrease in certain expenses related to the loss of contracts.

Q2 liquidity

At Jan. 31, 2026, the company had cash and cash equivalents of $2,613,808 and working capital of $2,562,955. All cash and cash equivalents are on deposit with a Schedule 1 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.