TORONTO, Aug. 29, 2025 /CNW/ - Argo Corporation (TSXV: ARGH), (OTCQX: ARGHF) ("Argo" or the "Company"), a leader in next-generation transit solutions, announced its financial results for the quarter ended June 30, 2025 ("Q2 2025"). All figures are in Canadian dollars unless otherwise noted.
In Q2 2025, the Company began the deployment of its proprietary Smart Routing$(TM)$ hardware and AI-powered software ecosystem, which includes vertically integrated hardware onboard its Argo X1 electric vehicles. This end-to-end platform combines real-time routing software, electric vehicles and full-service operations through Argo's fleet partners to deliver dynamic, on-demand transit services. The Company remains focused on demonstrating the continued success of its Smart Routing(TM) ecosystem and expanding the service to more municipalities.
-- Town of Bradford West Gwillimbury, Ontario ("BWG"): Argo launched its
first Smart Routing(TM) deployment in BWG in April 2025. By June 2025,
the deployment had more than doubled the average daily transit ridership
in BWG, with the town fully decommissioning its legacy fixed-route bus
system, which had previously been operated by a private contractor.
-- City of Brampton: The Company announced a landmark 12-month $10.9 million
agreement with the City of Brampton. In the coming weeks, Argo's Smart
Routing(TM) system will begin service in one of Canada's fastest-growing
major cities, complementing a robust existing public transit network. The
deployment will feature direct connections to fixed, high-density
Brampton Transit and GO Transit lines, as well as integration with
Ontario's PRESTO fare system.
-- Fast Company Recognition: Argo was named a winner of Fast Company's 2025
World Changing Ideas Award, recognizing bold and transformative efforts
that tackle the world's most pressing challenges.
-- Financial Highlights: The Company ended Q2 2025 with $7.3 million in cash
on a consolidated basis. General and administrative expenses included
non-cash share-based compensation to retain senior technical talent, as
well as legal and accounting costs related to the previously disclosed
special stock dividend, the annual and special meeting of shareholders,
and preparation of audited and interim financial statements.
For detailed information, please refer to Argo's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025, and 2024 ("Q2 2025 Financial Statements") and its management's discussion and analysis of financial condition and results of operations for the three and six months ended June 30, 2025, and 2024 (the "Q2 2025 MD&A"), filed on SEDAR+ at www.sedarplus.ca. The following table provides a summary of Argo's financial results for the three months ended June 30, 2025 and 2024:
For the three months ended June 30, 2025 2024 2025 REVENUE $373,405 $338,471 Cost of revenue $312,983 $262,538 General and administration 4,023,889 758,738 Operational support 802,289 448,570 Research and development 396,461 618,560 Sales and marketing 129,668 56,986 Provision for trade and other - - receivables Amortization & depreciation 26,684 34,752 Depreciation 27,041 257 Total operating expenses 5,719,015 2,180,401 OPERATING LOSS (5,345,610) (1,841,930) OTHER INCOME (EXPENSES) Foreign exchange gain/(loss) 158,900 76,389 Interest expenses (351,206) (483,318) Interest income 1,177 1,012 Loss from sale of equipment - (12,958) Gain on termination - 249,279 Accounts payable settlements 195,559 537 Loss on modification of convertible debt (2,624,532) - Share of loss on an associate - (856,924) Fair value gain (loss) on investments (1,106,388) (159,063) Penalties and settlement - (9,664) Loss on sale of investment (1,871,538) - Net income/ (loss) from continuing operations ($10,943,638) ($3,036,640) Discontinued OperationsNet gain/(loss) from discontinued operations, net of tax 28,014 (309,171) Gain from derecognition, net of tax - 2,410,028 NET GAIN (LOSS) ($10,915,624) ($935,783) Cumulative translation adjustment (20,559) (81,264) Cumulative translation adjustment for discontinued operations - (42,695) NET PROFIT (LOSS) AND COMPREHENSIVE PROFIT (LOSS) ($10,936,183) ($1,059,742) (Loss) Profit per share(Loss) income per share from continuing operations -- Basic and diluted ($0.08) ($0.02) Income (loss) per share from derecognition and discontinued operations - Basic and diluted $0.00 $0.02 Weighted average shares outstanding - Basic and diluted 138,683,002 132,944,615 All figures rounded to the nearest dollar. Prepared in accordance with IFRS.
About Argo
Argo delivers the first-ever vertically and publicly integrated city transit system, designed to augment public transportation and create a network of intelligently routed vehicles that work together to serve and scale to the needs of entire cities, putting people in control of their mobility. You can learn more at www.rideargo.com.
Praveen Arichandran, CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. The forward-looking information set out in this news release relates to future events or our future performance and includes, without limitation, statements concerning the expansion of Argo's transit system to other municipalities and timing of the launch of Argo's transit platform in the City of Brampton. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements, and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Cautionary Note Regarding Forward-Looking Information", "Financial Risk Management Objectives And Policies" and "Other Business Risks and Uncertainties" in the Company's Q2 2025 Financial Statements and its Q2 2025 MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks, and assumptions carefully when evaluating forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ARGO CORPORATION
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/CONTACT:
Media Contact: Christina Ra, Argo Corporation, christina@rideargo.com, (800) 575-7051
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August 29, 2025 07:21 ET (11:21 GMT)