Mr. Eric Caton reports

JEMTEC 2026 Q3 CORPORATE AND FINANCIAL UPDATE

Jemtec Inc. has provided an update on its performance for the fiscal quarter ended April 30, 2026, and the company's situation, showing a quarterly profit, no debt, strong liquidity and net worth.

Third quarter revenues

Revenue have decreased by 7 per cent during the quarter ended April 30, 2026, compared with the quarter ended April 30, 2025, primarily due to the loss of the CBSA contract associated with CSC. The company earned revenues on its agreements with the Province of Saskatchewan, CSC, interest on cash balances and private bail clients waiting release from court dates.

Q3 direct costs

During the quarter ended April 30, 2026, direct costs decreased by 15 per cent compared with the quarter ended April 30, 2025, primarily due to the fluctuations in equipment rent and installation, monitoring and activation fees, shipping, and travel.

Q3 expenses

During the quarter ended April 30, 2026, expenses remained consistent to the quarter ended April 30, 2025. Significant fluctuations were recorded in professional fees, share-based payments and shareholder communications.

Q3 income tax

For the quarter ended April 30, 2026, the company recognized a net income tax expense of $14,200 (April 30, 2025: $16,500). The income tax expense was related to income tax in Canada.

Q3 net income

For the quarter ended April 30, 2026, the company recorded net income of $55,925, compared with net income of $50,741 during the quarter ended April 30, 2025. This decrease in net income is primarily associated with the decrease in direct costs and certain expenses related to the loss of contracts.

Q3 liquidity

At April 30, 2026, the company had cash and cash equivalents of $2,717,148 and working capital of $2,624,036. All cash and cash equivalents are 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.