Route1 Announces Q4 and Fiscal Year 2022 Financial Results

TORONTO, ON / ACCESSWIRE / April 27, 2023 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions, today reported its financial results for the three and twelve-month periods ended December 31, 2022.

Fiscal Year 2022 (FY 2022)

The Company's operating results for fiscal year 2021 with comparatives are as follows:

¹ Before stock-based compensation

² For FY 2020, the Company incurred expenses for patent litigation net of the reversal of an accounting liability reflecting the funds the Company received from its litigation funding agreement. The Company has concluded the litigation with VMWare in both Canada and the United States and will incur no additional expense for this litigation.

³ Includes gain on litigation, gain or loss on asset disposal, stock-based compensation expense, interest expense, income tax recovery, foreign exchange loss or gain, other expenses and acquisition expense.

⁴ For FY 2022, the Company wrote down its deferred tax asset and liabilities with a net impact of ($1,141).

Fourth Quarter 2022 (Q4 2022)

"Route1's fourth quarter of 2022 net income was negatively impacted by our decision to remove deferred taxes assets and liabilities from the Company's balance sheet in the net amount of approximately CAD $1.1 million. It had no cash consequence. Further, the accounting decision has no impact on our ability to use our $11.8 million in Canadian operating tax losses that are being carried forward to reduce or eliminate cash tax obligations annually on our taxable operating income", said Tony Busseri, Route1's President and CEO.

The Company's operating results for Q4 2022 with comparatives are as follows:

¹ Before stock-based compensation

² Includes gain on litigation, gain or loss on asset disposal, stock-based compensation expense, interest expense, income tax recovery, foreign exchange loss or gain, other expenses and acquisition expense.

³ For Q4 2022, the Company wrote down its deferred tax asset and liabilities with a net impact of ($1,141).

³ Adjusted EBITDA is defined as 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 Route1 to compare its operating performance over time on a consistent basis.