Route1 Inc. — Management Reports 2026

May 14, 2026

ROUTE1
DRIVING DATA FORWARD

ROUTE1 INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2026

As at May 14, 2026

The following discussion and analysis of the financial condition and results of operations (this "MD&A") of Route1 Inc. (also referred to as "we", "us", "our", "Route1", or the "Company"), should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and related notes for the three months ended March 31, 2026, and the Company's audited consolidated financial statements and related notes for the year ended December 31, 2025. These consolidated financial statements, including comparatives, have been prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").

This Management's Discussion & Analysis ("MD&A") has been reviewed and approved by the Company's Board of Directors prior to filing.

The information in this MD&A is current to May 14, 2026 and all amounts are in Canadian dollars, unless otherwise noted.

FORWARD-LOOKING STATEMENTS

The following discussion may contain forward-looking statements about matters that involve risks and uncertainties, such as statements of Route1's plans, objectives, expectations and intentions, as well as financial trends. The discussion also includes cautionary statements about these matters. You should read the cautionary statements made below as being applicable to all forward-looking statements wherever they appear in this document. In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company's ability to execute on its business plan; the integration of acquired businesses; the acceptance of the Company's devices and services by its customers; the timing of execution of outstanding or potential customer orders by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information.

Factors that could cause Route1's actual results to differ materially from the forward-looking statements are contained herein and include, but are not limited to, overall economic conditions, competitive pressures, successfully integrating acquired businesses and unexpected technology changes. Additional information concerning risks and uncertainties affecting Route1's business and other factors that could cause financial results to fluctuate is set forth later in this document, as well as elsewhere herein, and is

2026 | Route1 MD&A for the three months ended March 31, 2026
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contained in Route1’s filing with Canadian securities regulatory authorities, available on the SEDAR website (www.sedar.com) under Route1 Inc. and on the Company’s website (www.route1.com).

This MD&A includes additional disclosures on the critical accounting policies and estimates, additional disclosure on the quarterly selected financial information, additional discussion and analysis on the factors affecting the Company’s financial performance, additional disclosure on future liquidity and capital needs including the addition of a tabular presentation of contractual obligations, additional disclosure on the last eight quarters, and details of related party transactions. The Company does not believe that any of the additional information provided, and that has not been otherwise disclosed in other filings, is material in nature.

INTELLECTUAL PROPERTY NOTICES

See https://www.route1.com/terms-of-use/ for notice of Route1’s intellectual property

OVERVIEW

Route1 Inc. is an advanced North American engineering and professional services Company using data capture technologies. The Company brings security and operations together with real-time actionable intelligence to enhance safety and security, drive greater profitability and improve operational efficiencies. With a deep-rooted background in software development, network operations, and cybersecurity, Route1 has ushered in a unique and valuable approach to the turn-key engineering and professional services arena. Route1’s services follow a complete life-cycle model, ensuring the evolution of your technology to meet the client’s desired outcomes.

With offices and staff in Scottsdale, AZ, and Toronto, Canada, Route1 provides leading-edge solutions to public and private sector clients around the world. Route1 is listed in Canada on the TSX Venture Exchange under the symbol ROI.

HIGHLIGHTS

On December 18, 2025, Route1 announced that it filed on December 16, 2025 a provisional patent application with the U.S. Patent and Trademark Office titled “Hierarchical and Distributed Signal Processing Pipeline Architecture for Low-latency Machine Learning and Scalable Agentic Artificial Intelligence Coordination and Training”. The provisional patent filing advances a wider intellectual property (“IP”) strategy to secure Route1’s breakthroughs in real time ALPR processing, scalable model orchestration, and adaptive learning. It also codifies Route1’s technical leadership and protects the foundational technologies behind our artificial intelligence (“AI”) co-pilot. Route1 will continue to refine and protect the technology as it brings future versions of ABI to market.

On January 8, 2026, Route1 provided a year-end review of its operational progress in 2025 and outlined its strategic priorities for 2026 as the Company continues its focus on recurring revenue, execution discipline, and the application of intelligence to real-world parking operations.

On March 18, 2026, Route1 announced that it has filed a patent application with the United States Patent and Trademark Office related to the Company’s parking copilot technology framework. The patent

2026 | Route1 MD&A for the three months ended March 31, 2026

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application, U.S. Application No. 19/552,368, filed on February 27, 2026, covers elements of Route1's approach to structured intelligence and operational performance management for automated license plate recognition ("ALPR") programs. The Company also confirmed that development of "Mr. Parking," an operational copilot capability within the Route1 ABI platform, remains on track for launch on or around April 21, 2026, subject to final development and testing.

On April 21, 2026, Route1 announced the commercial launch of "Mr. Parking," a new operational capability designed to improve performance across live parking environments while expanding recurring revenue within existing customer relationships.

On April 29, 2026, Route1 announced its full year 2025 audited financial results.

BASIS OF PREPARATION

The consolidated financial statements of Route1 include its wholly owned subsidiaries, Route 1 Security Corporation, Group Mobile Int'l, LLC ("GMI") and Portable Computer Systems, Inc. ("PCS"). Route1 acquired GMI on March 22, 2018, and PCS on September 28, 2019.

NON-IFRS FINANCIAL MEASURE: Adjusted EBITDA

Within this MD&A, we use the term Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, stock-based compensation, patent litigation, restructuring and other costs). Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.

Adjusted EBITDA allows us to compare our operating performance over time on a consistent basis. We believe that certain investors and analysts use Adjusted EBITDA to measure a Company's ability to service debt and to meet other payment obligations, or as a common valuation measurement in the technology industry.

The table below reconciles Adjusted EBITDA to operating profit before other income (expense) for the quarters presented.

In thousands of Canadian dollars	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
	2026	2025	2025	2025	2025
Adjusted EBITDA	$125	$19	$220	$269	($190)
Depreciation and amortization	180	178	176	195	205
Stock-based compensation	-	-	-	-	-
Operating profit (loss) before other income (expense)	($55)	($159)	$44	$74	($395)

2026 | Route1 MD&A for the three months ended March 31, 2026

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SELECTED FINANCIAL INFORMATION

The following table outlines selected unaudited financial information of the Company on a consolidated basis for the three months, ended March 31, 2026 and 2025.

(in thousands of Canadian dollars, except per share amounts)	For the Three Months Ended
	Mar 31, 2026	Mar 31, 2025
STATEMENT OF OPERATIONS
Revenue
Subscription revenue and services	$981	$907
Devices and appliances	1,586	1,327
Other	-	-
Total revenue	2,567	2,234
Cost of revenue	1,560	1,324
Gross profit	1,007	910
Operating expenses
General administration	902	1,002
Research and development	3	13
Selling and marketing	156	291
Total operating expenses before stock-based compensation	1,061	1,306
Stock-based compensation	-	-
Total operating expenses	1,061	1,306
Operating profit (loss) before other income (expense)	(54)	(395)
Other income (expense)
Interest expense	(70)	(94)
Foreign exchange gain (loss)	(3)	18
Gain on sale of employee retention credits	9	257
Total other income (expense)	(58)	181
Income (loss) for the period before income tax	(112)	(214)
Income tax (recovery) expense	-	-
Net income (loss) for the period	(112)	(214)
Other comprehensive income (loss)
Foreign currency translation	10	(20)
Comprehensive income (loss)	(102)	($234)
Basic and diluted income (loss) per share	$0.00	$0.00

2026 | Route1 MD&A for the three months ended March 31, 2026

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(in thousands of Canadian dollars, except per share amounts)

For the Three Months Ended
Mar 31, 2026 Mar 31, 2025

CASH FLOW INFORMATION

Operating activities	$99	$126
Investing activities	(81)	(257)
Financing activities	33	64
Net cash inflow (outflow)	51	(67)
Consolidation currency adjustment	(25)	(19)
Cash, beginning of period	33	87
Cash, end of period	$57	$1
Working capital	($4,985)	($4,378)
Total assets	$8,292	$7,942
Shareholders’ equity	$(548)	($618)

COMPARISON FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

Revenue

Revenue for the three months ended March 31, 2026 was $2,567,096, representing an increase of $333,037 from $2,234,059, for the same period in 2025. The comparison, discussed by segment, is as follows:

Subscription Revenue and Services

Revenue from the subscription revenue and services segment includes: (a) application software subscription-based revenue; (b) yearly support or maintenance; and (c) turn-key engineering services.

For the three months ended March 31, 2026, revenue from the subscription revenue and services segment was $980,715, representing an increase of $73,954, from $906,761, for the same period in 2025.

Subscription revenue and services revenue as a percentage of total revenue represents 38% of total revenue for the current period compared to 41% for the prior year period

| Subscription revenue and services by quarter
(in thousands of Canadian dollars) | Mar 31
2026 | Dec 31
2025 | Sep 30
2025 | Jun 30
2025 | Mar 31
2025 |
| --- | --- | --- | --- | --- | --- |
| Application software | 13 | 16 | $14 | $15 | $17 |
| Other services | 968 | 1,025 | 1,189 | 1,451 | 890 |
| Total | $981 | $1,041 | $1,203 | $1,466 | $907 |
| Other services revenue by quarter
(in thousands of Canadian dollars) | Mar 31
2026 | Dec 31
2025 | Sep 30
2025 | Jun 30
2025 | Mar 31
2025 |
| Technology life-cycle maintenance and support | 465 | 438 | $413 | $412 | $381 |
| Professional services | 503 | 587 | 776 | 1,039 | 526 |
| Total | $968 | $1,025 | $1,189 | $1,451 | $907 |

2026 | Route1 MD&A for the three months ended March 31, 2026

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Devices and Appliances

Revenue from MobiKEY devices and appliances, ruggedized computing devices and accessories, license plate recognition equipment and accessories for the three months ended March 31, 2026 was $1,586,380 representing an increase of $259,311 from $1,327,069, for the same period in 2025. The increase is reflective of the variability and the transactional nature of device revenue and lower in PocketVault P-3X sales.

Devices and appliance revenue as a percentage of total revenue represents 62% of total revenue for the current period compared to 59% for the prior year period.

Other revenue

Other revenue for the three months ended March 31, 2026 was $0, representing a decrease of $228 compared to $228 for the same period in 2025.

Gross Profit

Gross profit is revenue minus the cost of revenue. The cost of revenue includes the cost of our devices and appliances sold to clients, the cost to operate and maintain the Route1 MobiNET platform, the cost to install video capture technology at our client locations, and the cost of shipping and packaging.

The cost of revenue for the three months ended March 31, 2026 was $1,560,028, representing an increase of $236,404 from $1,323,624, for the same period in 2025. The increase in cost of revenue is a result of an increase in corresponding devices and appliances sales.

Gross profit for the three months ended March 31, 2026 was $1,007,067 or 39.2% of gross revenue, representing an increase of $96,633 from a gross profit of $910,434 or 40.8% of gross revenue for the same period in 2025.

Expenses

Operating expenses consist of general administration, research and development, and selling and marketing. Operating expenses for the three months ended March 31, 2026 were $1,061,521, representing a decrease of $244,133 from $1,305,654, for the same period in 2025.

General administration

General administration expenses consist primarily of salaries and benefits for administrative staff, professional fees, rent, telephone, computer related expenses, directors' fees, insurance, public Company and regulatory costs, depreciation and amortization and other indirect costs.

General administration expenses for the three months ended March 31, 2026 were $902,825 representing a decrease of $98,848 from $1,001,673 for the same period in 2025. The majority of the change can be summarized as follows:

• Salaries and Wages decreased by approximately $130,000
• Director Fees decreased by approximately $2,000

2026 | Route1 MD&A for the three months ended March 31, 2026

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• Audit and tax fees increased by approximately $50,000
• Other expenses increased by approximately $9,000
• Amortization expense decreased by $25,000

Research and development

Research and development expenses consist of salaries and benefits for the research and development department, and other professional fees associated with development work.

Research and development expenses for the three months ended March 31, 2026 were $2,695, representing a decrease of $9,922 from $12,617 for the same period in 2025. The majority of the change is related to the timing of the SR&ED receivable recognition.

Selling and marketing

Selling and marketing expenses consist primarily of salaries and commissions, agent fees, marketing and trade shows, and travel and entertainment.

Selling and marketing expenses for the three months ended March 31, 2026 were $156,000, representing a decrease of $135,363 from $291,363 for the same period in 2025. The majority of the change can be summarized as follows:

• A decrease in travel and meals expense of approximately $24,000
• Salaries and wages decreased by approximately $97,000
• Brand building decreased by approximately $10,000

Other Items

Stock-based compensation

Stock-based compensation was $0 for the three months ended March 31, 2026, no change from $0 for the same period in 2025.

Foreign exchange (loss) gain

Foreign exchange gains or losses are primarily attributable to fluctuations in the Canadian/U.S. dollar exchange rates on balance sheet items such as Accounts Receivable, Accounts Payable and bank accounts that are denominated in foreign currencies.

There was moderate volatility of the Canadian dollar against the U.S. dollar during the first quarter of 2026, from a high of $1.3939 to a low of $1.3515, and the first quarter of 2025, from a high of $1.4603 to a low of $1.4166.

Comprehensive Income (Loss) After Taxes

Comprehensive loss for the three months ended March 31, 2026 was $102,579, representing an improvement of $131,801 from a comprehensive loss of $234,380 for the same period in 2025.

2026 | Route1 MD&A for the three months ended March 31, 2026

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SUMMARY OF QUARTERLY RESULTS

The following table sets out selected unaudited financial information of the Company on a consolidated basis for the last eight quarters. The information has been derived from the Company's quarterly unaudited interim condensed consolidated financial statements that, in management's opinion, have been prepared on a basis consistent with the consolidated annual financial statements and are reviewed and approved by the Company's Board of Directors. The Company's quarterly operating results have varied substantially in the past and may vary substantially in the future. Accordingly, the information below is not necessarily indicative of results for any future quarter.

(in thousands of Canadian dollars, except for per share data)	As at and for the three months ended
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
	2026	2025	2025	2025	2025
STATEMENT OF OPERATIONS
Revenue
Subscription revenue and services	$981	$1,041	$1,203	$1,466	$907
Devices and appliances	1,586	1,596	1,758	2,233	1,327
Other	-	-	(7)	(8)	0
Total revenue	2,567	2,637	2,954	3,691	2,234
Cost of revenue	1,560	1,610	1,775	2,343	1,324
Gross profit	1,007	1,027	1,179	1,348	910
Operating expenses
General administration	902	948	830	980	1,002
Research and development	3	24	62	55	13
Selling and marketing	156	213	244	239	291
Total operating expenses before stock-based compensation	1,061	1,186	1,136	1,274	1,306
Stock-based compensation	-	-	-	-	-
Total operating expenses	1,061	1,186	1,136	1,274	1,306
Operating profit (loss)	(54)	(159)	44	74	(395)
Other income (expenses)
Interest expense	(70)	(70)	(81)	(105)	(94)
Foreign exchange gain (loss)	(3)	(11)	22	(97)	18
Asset disposal gain (loss)	-	(191)	(39)	-	-
Employee Retention Credits	9	109	310	91	257
Total other expense	(58)	(163)	212	(111)	181
Total income (loss) for the period before income tax expense	(112)	(322)	256	(36)	(214)
Income tax recovery (expense)	-	5	3	25	-
Total income (loss) for the period	(112)	(327)	253	(61)	(214)
Other comprehensive income
Foreign currency translation	10	(6)	(10)	70	(20)
Comprehensive income (loss)	(102)	(316)	$242	$9	($234)
Basic and diluted earnings (loss) per share	$0.00	($0.01)	$0.01	$0.00	$0.00
Adjusted EBITDA	$125	$19	220	269	($190)

2026 | Route1 MD&A for the three months ended March 31, 2026

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As at and for the three-month periods ended (in thousands of Canadian dollars, except for per share data)	Mar 31 2026	Dec 31 2025	Sep 30 2025	Jun 30 2025	Mar 31 2025
CASH FLOW INFORMATION
Operating activities	$99	$111	$251	($33)	$126
Investing activities	(81)	(121)	(5)	167	(257)
Financing activities	33	(55)	(219)	(113)	64
Net cash inflow (outflow)	51	(65)	27	21	(67)
Consolidation currency adjustment	(26)	19	(12)	42	(19)
Cash, beginning of period	33	79	64	1	87
Cash, end of period	$57	$33	$79	$64	$1
BALANCE SHEET INFORMATION
Working capital	($4,985)	($4,873)	($4,684)	($4,020)	($4,378)
Total assets	$8,292	$8,134	8,220	$8,501	$7,942
Shareholders' equity	$(548)	$(401)	($367)	($609)	($618)

The Company's revenue and financial results are difficult to forecast and have historically fluctuated on a quarterly basis. It is expected that quarterly revenue and financial results will become more stable than previously; however, revenues may continue to fluctuate as the Company grows its revenues and customer base. Fluctuations in results are related to the growth of the Company's revenue, the timing of revenue being recognized and sales to customers, who may place large single orders in any one quarter, the timing of staffing and infrastructure additions to support growth and future acquisitions.

LIQUIDITY AND CAPITAL RESOURCES

Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including fluctuations in the levels of accounts receivable, inventory, prepaid expenses, accounts payable and contract liability; (ii) investing activities including the purchase of capital assets; and (iii) financing activities including the issuance of and/or repurchase of capital stock.

Cash generated in operating activities

The net cash generated by operating activities for the three months ended March 31, 2026 was $99,124 compared to cash generated of $126,173 in the same period in 2025 representing a decrease in cash generated of $27,049.

Cash generated by non-cash working capital was $76,276 for the three months ended March 31, 2026 compared to cash generated of $3,962 from a year earlier, representing an increase in cash generated by $72,314. Net cash generated by the day-to-day operations for the three months ended March 31, 2026 was $22,848 compared to cash generated of $122,211 in 2025, representing a decrease of $99,363.

Cash used in investing activities

Cash used in investing activities for the three months ended March 31, 2026, was $81,452 compared to

2026 | Route1 MD&A for the three months ended March 31, 2026

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$257,142 in the same period in 2025, representing decrease in cash used of $175,689. The decrease in cash used was primarily due to the prior-year sale of Employee Retention Credits."

Cash generated in financing activities

Cash generated by financing activities was $32,955 for the three months ended March 31, 2026, compared to cash generated of $64,163 for the same period in 2025, a decrease of $31,208.

The Company's growth strategy is increasingly focused on recurring operational engagement, operational intelligence, and lifecycle customer relationships within parking, mobility, public safety, and related infrastructure environments.

Route1 provides technology-enabled services and operational support capabilities involving automated license plate recognition ("ALPR"), video intelligence, workflow visibility, and operational accountability. The Company's strategy increasingly emphasizes long-term operational engagement models designed to support measurable operational outcomes, workflow intelligence, and recurring customer relationships rather than one-time transactional deployments.

The Company continues expanding its Route1 Actionable Business Intelligence ("Route1 ABI") platform and related operational-intelligence capabilities designed to assist operators with workflow visibility, operational reporting, enforcement analysis, operational accountability, and decision-support activities. Route1 ABI is designed to operate across multiple customer environments and infrastructure platforms, including systems deployed by leading ALPR and mobility technology providers.

Route1 currently provides or intends to provide deployment, lifecycle support, operational intelligence, and workflow-related services involving technologies including ALPR, surveillance video, body-worn cameras, drones, access control systems, and related operational infrastructure. Genetec continues to represent an important technology partner for the Company.

The Company also continues investing in workflow intelligence, operational orchestration, AI-assisted operational support capabilities, and intellectual-property initiatives related to operational visibility, structured intelligence, and parking and mobility operations management.

The Company's capital requirements include investments in technology infrastructure, software and development activities, operational support capabilities, sales and marketing initiatives, working capital, and AI-related infrastructure and development initiatives. The Company has historically financed its operations and capital requirements through operating cash flow, bank and other indebtedness, and the issuance of equity.

On October 1, 2025 Route1 entered into a revised credit agreement with its primary Canadian lender. The agreement provides that (i) the outstanding principal amount of $1,075,000 will be repaid over 24 months commencing July 31, 2025 and ending on July 31, 2027, in the amount of $50,000 per month plus interest, (ii) the final month's payment will be the amount required to repay any remaining balance on the loan, and (iii) the credit facility is non-revolving and each payment will reduce the amount of the credit facility. On March 17, 2026 Route1 Inc., entered into an accommodation agreement with RBC that changed the agreement terms from $50,000 per month plus interest the following: From February 2026 to July 2026, the

2026 | Route1 MD&A for the three months ended March 31, 2026

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principal shall be reduced by $25,000 per month, plus accrued interest, reducing the principal balance from $875,000 to $725,000. From August 2026 to June 2027, the principal shall be reduced by $60,000 per month, plus accrued interest, reducing the principal balance from $725,000 to $65,000. In July 2027, the Borrower shall make a final principal payment of $65,000, together with all accrued interest and any outstanding legal fees, including those required to discharge the security.

Further, the prior $150,000 credit card facility was paid out and not renewed.

The revised credit facility continues to carry an interest rate equal to the lender's prime rate of interest plus 1.5%. As of March 31, 2026, the interest rate was 5.95%. The credit facility continues to be secured by the assets of Route1 Inc. and guaranteed by Group Mobile Int'l, LLC ("GMI") and PCS. As of March 31, 2026, the balance drawn on the revolving demand facility was $850,000 (March 31, 2025 - $1,225,000).

Also, the Company's wholly owned subsidiary, PCS, has an asset-based revolving credit facility in the amount of US $1,200,000. The facility carries an interest rate of fifty basis points over the prime rate published daily in the Wall Street Journal. As of March 31, 2026, the interest rate was 7.25% (December 31, 2025 - 7.25%). The availability under the facility is based on a percentage of the aggregate of certain accounts receivable and inventory. The facility is secured by the assets of PCS and is guaranteed by the Company and a wholly owned subsidiary of the Company. As of March 31, 2026, the balance drawn on the revolving demand facility was US $1,115,886 or CAD $1,555,433 (March 31, 2025 - US $1,001,381 or CAD $1,439,585). PCS is required to maintain a Fixed Charge Coverage Ratio of greater or equal to 1.10:1 and this covenant was met as of December 31, 2025.

INVENTORY

On a quarterly basis or when necessary, management reviews the carrying value of inventory. Inventory is valued at the lower of cost and net realizable value, which is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale. For the quarters ended March 31, 2026 and 2025, management determined no adjustment to the carrying value was required.

RELATED PARTY TRANSACTIONS

The Company has directors and officers who are considered related parties. The Company had the following transactions and/or outstanding amounts with related parties. All transactions are recorded in their exchange amounts.

• The Company incurred expenses (including CPP and EHT) payable to and on behalf of the independent members of the Board of Directors of $39,086 in the quarter ended March 31, 2026 (2025 - $41,133). These transactions are in the normal course of operations and are paid or payable for directorship services. As of March 31, 2026, accrued liabilities included $399,721 owing to directors (March 31, 2025 - $360,380). The Company also incurred stock-based compensation expense related to stock options granted to independent directors in the amount of $NIL (2025 - $NIL).
• The Company made payments (including HST) to Chodos Capital Group Inc. for management services provided by Mr. Peter Chodos, a director, in the amount of $50,850 in the quarter ended March 31, 2026 (2025 - $50,850). The Company also incurred stock-based compensation expenses

2026 | Route1 MD&A for the three months ended March 31, 2026

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related to stock options granted to Mr. Chodos in the amount of $NIL for the quarter ended March 31, 2026 (2025 - $NIL). Payments made to Mr. Chodos as an independent contractor are not included as part of key management.

• During the year, key management personnel participated in the Company's capital raise. These transactions were conducted on terms and conditions consistent with those offered to external investors. Related Parties included, Mr. Tony Busseri, Mr. Peter Chodos, Mr. John Marino, and Mr. Mike Harris.
• The Company made payments to or incurred expenses for key management employees (President and Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer) in the quarter ended March 31, 2026 as follows, with 2025 comparatives:

	March 31, 2026	March 31, 2025
Short-term employee benefit	$187,442	$188,837
Stock-based compensation expense	-	-
	$187,442	$188,837

CRITICAL ACCOUNTING ESTIMATES

The consolidated financial statements have been prepared in accordance with IFRS. Management makes certain estimates and relies on certain assumptions relating to reporting the Company's assets and liabilities as well as operating results in order to prepare the audited financial statements in conformity with IFRS. On an ongoing basis, the Company evaluates its estimates and assumptions including those related to revenue, the valuation of accounts receivable, the estimation of useful lives of the various classes of capital assets, the valuation of assets acquired in business combinations, stock-based compensation expense, and the measurement of income tax valuation allowances. Actual results could differ from those estimates, which are as follows:

• The Company's revenue is derived from (i) sales of its own hardware (i.e. MC3 device, the MobiKEY Fusion3 device and PocketVault P-3X device), and recurring revenue support contracts and subscription software applications (i.e. MobiKEY application software); and (ii) the resale of ruggedized computing devices and related accessories and services, as well as license plate recognition hardware and related services. The Company recognizes revenue in accordance with IFRS 15.
• In the determination of the valuation of accounts receivable, including the allowance for doubtful accounts, the Company relies on current customer information, payment history and trends as well as future business and economic conditions.
• The determination of inventory obsolescence allowance.
• The estimation of useful lives of the various classes of capital assets is based upon history and experience of similar assets within each class.
• The Company estimates the value of the assets acquired in the business combinations on the basis of fair value to the ongoing operations of the acquired business.
• The fair value of stock options is based on certain estimates applied to the Black-Scholes option-pricing model as disclosed in the Company's financial statements.
• The recognition of SR&ED tax credits and government grants (if any).
• The recoverable amount of the cash-generating based on discounted future cash flow projections.
• The measurement of the income tax valuation allowance is based upon estimates of future taxable income and the expected timing of reversals of temporary differences.

2026 | Route1 MD&A for the three months ended March 31, 2026

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NEW STANDARDS ADOPTED

At the date of the authorization of the consolidated financial statements for the year ended December 31, 2025, several new, but not yet effective Standards and amendments to existing Standards, and Interpretations have been published by the IASB. None of these Standards or amendments to existing Standards have been adopted early by the Company.

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1. IFRS 18 applies to annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The standard must be applied retrospectively with restatement of comparative information. The key new concepts introduced in IFRS 18 relate to: the structure of the statement of profit or loss; required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements; and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes. The Company is currently assessing the impact and efforts related to adopting IFRS 18. The Company expects the standard will primarily affect the presentation and disclosure of information within the consolidated financial statements.

In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments. These amendments clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system; add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance targets); and update the disclosures for equity instruments designated at fair value through other comprehensive income. These amendments apply to annual reporting periods beginning on or after January 1, 2026. Earlier application is permitted and the amendments are to be applied retrospectively. The Company is currently evaluating the impact these amendments may have on its consolidated financial statements and related disclosures.

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates and are not expected to have a significant impact on the Company's consolidated financial statements.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact to the Company's consolidated financial statements.

FINANCIAL INSTRUMENTS

Establishing fair value

The carrying amount of financial instruments including cash and cash equivalents, accounts receivable, other receivables, bank indebtedness, and accounts payable and other liabilities approximate fair value because of the short-term nature of these instruments.

2026 | Route1 MD&A for the three months ended March 31, 2026

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ROUTE1 DRIVING DATA FORWARD

The Company has an earn-out provision from the acquisition of Spyrus on September 15, 2021, which could require a payment to the previous owners of Spyrus should the gross profit exceed certain targets. It is not anticipated that any payouts will be required under this provision.

The following table sets out the classification, carrying amount, and fair value of the Company's financial assets and liabilities as at March 31, 2026, and December 31, 2025:

	March 31, 2026		December 31, 2025
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
FINANCIAL ASSETS
Cash and cash equivalents	$57,390	$57,390	$32,565	$32,565
Accounts receivable	$2,321,398	$2,321,398	$2,239,220	$2,239,220
FINANCIAL LIABILITIES
Bank indebtedness	$2,405,433	$2,405,433	$2,430,625	$2,430,625
Accounts payable and other liabilities	$4,369,217	$4,369,217	$4,106,607	$4,106,607
Notes payable	$614,042	$614,042	$386,483	$386,483

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A fair value measurement of a non-financial asset considers a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

FINANCIAL INSTRUMENTS - RISK MANAGEMENT

The carrying amount of financial instruments including cash and cash equivalents, accounts receivable, other receivables, bank indebtedness, accounts payable, current portion of notes payable, and other liabilities approximate fair value because of the short-term nature of these instruments. Long term bank indebtedness and notes payable approximate fair value due to market rate of interest being charged.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within a three-level hierarchy, based on observability of significant inputs, as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or
• Level 3: Unobservable inputs for the asset or liability.

2026 | Route1 MD&A for the three months ended March 31, 2026

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ROUTE1 DRIVING DATA FORWARD

Inputs into the determination of fair value require management judgment or estimation. The Company does not have any assets or liabilities measured at fair value.

The Company has exposure to credit risk, liquidity risk and market risk associated with its financial assets and liabilities. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board has established the Audit Committee which is responsible for monitoring the Company's compliance with risk management policies. The Audit Committee regularly reports to the Board of Directors on its activities.

The Company's risk management program seeks to minimize potential adverse effects on the Company's financial performance and ultimately shareholder value. The Company manages its risks and risk exposures through a system of internal controls and sound business practices.

The Company's financial instruments and the nature of the risks to which they may be subject are set out in the following table:

	Credit	Liquidity	Foreign Exchange	Interest Rate
Cash and cash equivalents	Yes		Yes	Yes
Accounts receivable	Yes		Yes
Other receivables	Yes		Yes
Bank indebtedness		Yes	Yes	Yes
Accounts payable and other liabilities		Yes	Yes
Notes payable		Yes	Yes	Yes

Credit Risk

Credit risk arises from cash held with banks and credit exposure to customers, including outstanding accounts and other receivables. The maximum exposure to credit risk is equal to the carrying value (net of allowances) of the financial assets. The objective of managing credit risk is to prevent losses on financial assets. The Company assesses the credit quality of counterparties, considering their financial position, past experience and other factors. During the quarter ended March 31, 2026, the largest single customer represented approximately $304,043 of revenue or 13.6% of total revenue (March 31, 2025 - $340,810 of revenue or 15.3% of total revenue).

Cash and cash equivalents consist of bank balances. Credit risk associated with cash is minimized substantially by ensuring that these financial assets are held in highly rated financial institutions. On March 31, 2026, the Company had cash consisting of deposits with a Schedule 1 bank in Canada, a large money center bank in the U.S. and one large regional bank in the U.S. of $57,390 (December 31, 2025 - $32,565).

Accounts receivable consist primarily of accounts receivable from invoicing for subscriptions, devices, and services. Other receivables consist primarily of unbilled accounts receivable, marketing development funds, sales tax refunds to be received and an amount due for the refund of the excess of the posted bond over the patent litigation settlement amount. The Company's credit risk arises from the possibility that a customer which owes the Company money is unable or unwilling to meet its obligations in accordance with the terms and conditions in the contracts with the Company, which

2026 | Route1 MD&A for the three months ended March 31, 2026

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would result in a financial loss for the Company. This risk is mitigated through established credit management techniques, including monitoring customer's creditworthiness, setting exposure limits and monitoring exposure against these customer credit limits.

The Company measures a loss allowance based on the lifetime expected credit losses. Lifetime expected credit losses are estimated based on factors such as the Company's past experience of collecting payments, the number of delayed payments in the portfolio past the average credit period, observable changes in national or local economic conditions that correlate with default on receivables, financial difficulty of the borrower, and it becoming probable that the borrower will enter bankruptcy or financial reorganization. Financial assets are written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off reduce other expenses in the consolidated statements of income (loss) and comprehensive income (loss). As of March 31, 2026, the largest single customer's account receivable represented $341,193 (March 31, 2025 – $238,147) of the total accounts receivable.

The following table outlines the details of the aging of the Company's receivables as of March 31, 2026, and March 31, 2025:

	March 31, 2026	March 31, 2025
Current	$1,171,416	$572,084
Past Due 1-60 days	525,789	344,929
Greater than 60 days	624,192	111,730
Total accounts receivable, net	$2,321,398	$1,028,743

The Company incurred bad debt charges on trade accounts receivable in the amount of $NIL during the quarter ended March 31, 2026 (2025 - $NIL).

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. In order to meet its financial liabilities, the Company has primarily relied and expects to continue to rely primarily on collecting its accounts receivable as they come due.

The Company's ability to manage its liquidity risk going forward will require some or all of the following: the ability to generate positive cash flows from operations and secure capital and/or credit facilities on reasonable terms in the current marketplace. The following table details the Company's contractual maturities for its financial liabilities, including interest payments and operating lease commitments, as of March 31, 2026:

2026 | Route1 MD&A for the three months ended March 31, 2026

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ROUTE1 DRIVING DATA FORWARD

	2026	2027	2028 and beyond	Total
Accounts payable and other liabilities	$4,369,217	$-	$-	$4,369,217
Notes payable & loan commitment	204,830	275,103	134,109.08	614,042
Bank indebtedness	600,000	250,000	-	825,000
Lease commitments	253,955	100,075	112,468	466,498
	$5,428,002	$625,178	$246,577	$6,299,757

Bank indebtedness for the revolving loan of credit in Vectra bank does not have a contractual maturity and as such has not been included in the above table.

Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the fair value of recognized assets and liabilities or future cash flows or the Company's results of operation.

Foreign Exchange

The functional currency of the parent Company is Canadian dollars, and the reporting currency is Canadian dollars. As of December 31, 2025, the Company had non-Canadian dollar net monetary liabilities of approximately US $1,902,320 (December 31, 2025 - US $1,847,361). An increase or decrease in the U.S. to Canadian dollar exchange rate by 5% as of March 31, 2026, would have resulted in a gain or loss in the amount of $132,582 (December 31, 2025 – $126,599).

Interest Rate

The Company has cash balances and bank indebtedness which may be exposed to interest rate fluctuations. On March 31, 2026, cash balances were $57,390 (December 31, 2025 - $32,565), bank indebtedness balances were $2,405,433 (December 31, 2025 - $2,430,624).

SHARE CAPITAL WARRANTS AND OPTIONS

The Company's authorized share capital consists of the following:

• An unlimited number of common shares with voting rights and no-par value.
• An unlimited number of non-cumulative, non-voting first preferred shares with no fixed dividend rate, issuable in series.
• An unlimited number of non-cumulative, non-voting second preferred shares with no fixed dividend rate, issuable in series.
• An unlimited number of non-cumulative, non-voting Series A first preferred shares with no fixed dividend rate, issuable in series and convertible into common shares at the option of the holder on a one-for-one basis at any time after October 31, 2000.

	Number of Common Shares	Common Shares $
Balance, December 31, 2025	46,873,820	$24,078,859
Private placement costs	-	$44,799
Balance, March 31, 2026	46,873,820	$24,034,060

2026 | Route1 MD&A for the three months ended March 31, 2026

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ROUTE1 DRIVING DATA FORWARD

Private Equity Placement (1)

On November 19, 2025, the Company completed a private placement of 3,123,331 units at $.075 per unit (comprised of one common share and one warrant with exercise price of $0.10 for 18 months) for gross proceeds of $225,297. An additional 117,500 were issued associated with the broker fees. A portion of the proceeds were allocated to warrants based on the valuation below with the residual value allocated to common shares.

Warrant Valuation

	November 19, 2025
Share price on issue date	$0.07
Risk free interest rate	2.49%
Expected life (years)	1.5
Expected volatility	175.65%
Dividend yield	Nil
Fair value of warrants issued	$0.05

The Black-Scholes option pricing model is used by the Company to determine the fair value of the warrants issued as part of the equity private placement in November 2025. A total fair value of $162,042 was determined.

Private Equity Placement (2)

On December 12, 2025, the Company completed a private placement of 1,253,333 units (comprised of one common share and one warrant with exercise price of $0.10 for 18 months) for gross proceeds of $94,000. A portion of the proceeds were allocated to warrants based on the valuation below with the residual value allocated to common shares.

Warrant Valuation

	December 12, 2025
Share price on issue date	$0.07
Risk free interest rate	2.49%
Expected life (years)	1.5
Expected volatility	169.93%
Dividend yield	Nil
Fair value of warrants issued	$0.05

The Black-Scholes option pricing model is used by the Company to determine the fair value of the warrants issued as part of the equity private placement in December 2025. A total fair value of $62,667 was determined.

The total warrants purchased during the period between private equity placement one and private equity placement two totaled 4,494,664.

There are 250,000 (December 31, 2025 – 250,000) common share purchase options ("Options") outstanding

2026 | Route1 MD&A for the three months ended March 31, 2026

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to acquire 250,000 (December 31, 2025 – 250,000) common shares at $0.50 per share.

OFF-BALANCE SHEET ARRANGEMENTS

As of March 31, 2026, there are no off-balance sheet arrangements.

RISK FACTORS AND UNCERTAINTY

Although management has a positive outlook for the Company and continually improves and adapts the Company's risk mitigation strategies, operating in the technology industry inherently involves a certain level of risk and uncertainty. In management's opinion, the following risk factors, among others, should be considered when evaluating the Company's business and its results of future operations:

• Management's ability to secure additional financing, if needed, on reasonable terms. Access to such financing on acceptable commercial terms will be dependent on the timing of recognition and receipt of cash from our current receivables and contracts, on our ability to demonstrate execution of our business strategy and the general condition of the credit and/or equity markets. Such additional financing may be dilutive in nature to existing shareholders

• During the year ended March 31, 2026, the Company had a working capital deficiency and an accumulated deficit. The Company's ability to continue as a going concern is dependent on its ability to achieve positive net cash flows or ability to raise financing. Operations could be negatively impacted by current U.S. government mandates including actions implemented by the recently established Department of Government Efficiency ("DOGE"), which may affect demand and volatility for the Company's products and services. As a result, these events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.

• The Company's access to credit or capital could be restricted based on an economic downturn that would restrict credit availability worldwide and could also impact its ability to continue operations.

• A portion of the Company's projected revenue in the short-term is tied to approximately US $0.5 million in renewals from MobiKEY application software subscriptions with one or more U.S. Government ("USG") accounts. If one or more USG accounts were to discontinue their relationship with the Company, such events could have a material adverse impact on the Company's operating results and financial condition.

• The Company's revenues are derived primarily from the United States and, with respect to MobiKEY application software subscriptions, from U.S. federal governmental agencies and departments as well as state and local governments and agencies. With a change in administration, governmental agencies and departments often defer material changes in their operations and purchases of products and services until a new cabinet is appointed, the political direction is confirmed, and agency leadership is appointed. This deferral and possible change in political direction following an election could have a material adverse effect on the prospects, operations and results of operations of the Company.

• The current U.S. President has publicly supported certain policies, including those related to changes to international trade agreements and policies favoring U.S. persons and companies. There is continued uncertainty as to which measures and policies will be maintained by the United States government, governmental agencies and departments in 2025 and beyond. Certain of these

2026 | Route1 MD&A for the three months ended March 31, 2026

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measures, including trade and tariff uncertainty, could have a material and adverse effect on the Company.

• Certain Chief Information Officers of governmental agencies in the United States are required to resign following the election of a new President. There is no assurance that a resigning Chief Information Officer will be reappointed or that a newly appointed Chief Information Officer will be supportive (or continue to be supportive) of the Company's products and services. A change in the senior officers and decision makers in the U.S. government and its agencies could have a material adverse effect on the Company.
• In addition to the risks discussed above and as a consequence of this transition process, the confirmation of the approval and/or renewal of the Company's products and services could be delayed and/or not subject to the approval process experienced in the past and that such delay and/or change in process will make it difficult for the Company to effectively forecast revenues and to plan and budget its operations and this could have a material adverse effect on the Company.
• Funding of the United States government is a complex and contentious process and may result in temporary funding of government through continuing resolutions or government shutdowns. Such circumstances may result in delays in sales and renewals of existing contracts with government agencies.
• The Company's ability to collect payment on a timely basis for products and services delivered may have a material adverse impact on the Company's liquidity position.
• Third-party claims for infringement of intellectual property rights by Route1, and the outcome of any litigation with respect thereto, may harm the Company's competitive advantage in the secure remote access industry;
• Should Route1 be unable to successfully obtain patent or other proprietary or statutory protection for its technologies and products, the Company's competitive advantage in the secure remote access industry may be harmed;
• Route1's ability to obtain rights to use certain software or components which are supplied by third parties may not be sufficient to support future sales volumes;
• Should Route1 be unable to run efficient and uninterrupted operation of its MobiNET platform, such inability could impact on the credibility of the Company's product and services;
• Should Route1 be unable to establish new customers, and to build on its existing customer base, such inability could also slow the Company's continued growth;
• Should Route1 be unable to integrate acquired businesses successfully, such inability could have an adverse effect on the Company;
• The occurrence of a breach or perception of a breach of Route1's secure product and service offering may have an impact on the credibility of the Company's product and services;
• The inappropriate disclosure of confidential information of the Company may have an impact on the credibility of the Company's product and services;
• Competition, both with existing providers as well as with any future providers entering the marketplace, within the secure remote access industry may hamper future sales growth;
• Route1's reliance on its suppliers and the risk that suppliers will not be able to deliver required components on a timely basis may slow future sales growth;
• Any future government(s) regulation of the secure remote access industry, including but not limited to restrictions on encryption of the MobiKEY device and the MobiNET platform may limit future growth;

2026 | Route1 MD&A for the three months ended March 31, 2026

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• Any significant economic downturn in geographic areas where Route1 engages in business activities may cause those government agencies to reduce discretionary budget spending in areas such as secure access solutions, and purchases of other services and products offered by the Company.
• Any delays in the budget approval process by the U.S. government may delay the procurement and spending in areas such as digital security solutions.
• The Company's rugged mobile technology solutions and license plate recognition business depends on a small group of large vendors from whom the Company purchases equipment to sell to end users. The Company expects that purchases will be delivered by the vendor on a timely basis. Any disruption in the supply chain could adversely affect the business.
• The Company is dependent on obtaining acceptable payment and credit terms with certain vendors. The lack of such terms could adversely affect the ability of the Company to purchase and sell product.
• The Company depends on purchasing product from its vendors at acceptable prices and being able to sell the product to end users at acceptable margins. Unfavorable variances in the prices from vendors and the prices paid by end users would have an adverse effect on the business.
• The Company resells its products and solutions to a wide variety of manufacturing companies and state and local governments. Any deterioration in the creditworthiness of the Company's customer base could have an adverse effect on the Company's ability to sustain the business without collecting the amounts due from customers.
• The Company resells its products and sells its solutions to state and local governments and law enforcement agencies. Any delay or decrease in funding of these entities would have an adverse impact on the Company's business.
• The products sold by the Company are subject to technological obsolescence. To the extent that the Company has non-current inventory, it could be subject to a loss on the sale or write-down of such old or obsolete inventory.
• Counterparties to purchase and sale agreements of businesses may be in breach of their representations and warranties or covenants to the Company requiring the Company to seek indemnification or other contractual or legal remedy.
• The majority of the Company's customers purchase product on a purchase order basis. The Company is dependent on the strength of the economy as well as that of the customer and the customer's capital budget and ability to continue purchasing product sold by the Company.
• The Company ships its product to customers through third parties and price increases, and transportation disruptions could adversely affect the business.
• The rugged mobile technology solutions business is highly competitive, and profit margins can be adversely affected by a host of factors including the availability of sufficient working capital to operate the business. The required working capital may not be available to the Company on acceptable terms or in the amounts required to operate the business profitably.
• The Company records transactions in Canadian dollars and conducts business primarily in the United States. The volatility of the Canadian dollar against the U.S. dollar can impact financial results negatively should the Canadian dollar appreciate significantly.
• The Company is a Canadian corporation. While the Company has not yet been affected by the imposition of tariffs on various goods and services, any such tariffs may have an adverse impact on the Company's ability to be price competitive in the markets in which it operates.
• There is no assurance that any forward-looking statement will materialize. Unless otherwise indicated, forward-looking statements describe expectations as of the date of this document.

2026 | Route1 MD&A for the three months ended March 31, 2026

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ROUTE1 DRIVING DATA FORWARD

• Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
• Claims filed under the CARES Act and subsequent legislation by Route1 are subject to approval of the IRS. There is no assurance that the IRS will approve, in whole or in part, the amounts claimed by Route1, accordingly this may impact the realizable value of amounts claimed by Route1.
• The recognition of Employee Retention Credits involves significant management estimates, particularly in determining qualified wages and eligibility periods. Changes in IRS guidance or audit outcomes may lead to revisions of previously recognized credits.
• Employee Retention Credits-related receivables are included in our long-term assets. Delays in processing or denial of these credits may adversely impact our working capital and cash position.
• We engaged a third-party advisor to assist with the calculation and filing of Employee Retention Credit claims. We cannot guarantee that their interpretations will align with future IRS rulings. Adverse outcomes may impact the realizability of amounts claimed by Route1.

Legal proceedings

In the course of operations, the Company may (i) be subject to litigation claims from customers, suppliers, patent holders, resellers and former employees and (ii) seek to enforce its intellectual and other property rights and rights to indemnification. A provision is recognized when the probability that the event will occur is greater than the probability that it will not. The Company regularly reviews any outstanding claims to see if they meet the criteria. A provision is calculated based on management's best estimate of probable outflow of economic resources.

REVENUE INFORMATION

Revenue for the recurring revenue and services is reported as a contract liability on the consolidated statement of financial position and is recognized as earned revenue for the period in which the subscription and/or service is provided.

For the sale of devices, revenue or contract liability is recognized at the time transfer of ownership of the device occurs. At March 31, 2026, the Company had $984,861 (March 31, 2025 - $925,228) in contract liability.

The following table provides a presentation of the Company's revenue streams for the three months ended March 31, 2026 and 2025:

	Three months ended March 31,		Three months ended March 31,
	Revenue	% of Total	Revenue	% of Total
Subscription revenue and Services	$980,716	38.2	$906,761	40.6
Devices and appliances	1,586,380	61.8	1,327,069	59.4
Other	-	-	228	0.0
	$2,567,096	100.0	$2,234,059	100.0

2026 | Route1 MD&A for the three months ended March 31, 2026

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The following table provides a geographic presentation of the Company's revenue streams for the quarter ended March 31, 2026, and 2025:

	Three Months ended March 31, 2026		Three months ended March 31, 2025
	Revenue	% of Total	Revenue	% of Total
USA	$2,524,597	98.3	$2,138,609	96.9
Canada and International	42,499	1.7	95,450	3.1
	$2,567,096	100.0	$2,234,059	100.0

The following table provides a geographic presentation of the Company's right-of-use assets, furniture and equipment and intangible assets for the quarter ended March 31, 2026, and 2025:

	Three months ended March 31, 2026		Three months ended March 31, 2025
	Assets	% of Total	Assets	% of Total
USA	$1,213,672	70.8	$1,525,991	69.6
Canada	501,165	29.2	667,525	30.4
	$1,714,837	100.0	$2,193,516	100.0

ADDITIONAL INFORMATION

Additional information about Route1 is available from Route1's website at www.route1.com, the SEDAR website at www.sedar.com, or by request from Route1's head office at 8 King Street East, Suite 1801, Toronto, Ontario, Canada M5C 1B5 (telephone (416) 848-8391).

See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.

2026 | Route1 MD&A for the three months ended March 31, 2026