Transaction(s) Highlights

• Net Debt* Reduced by ~$27 million (~63% decrease) through materially discounted debt settlement (~50%), reducing Net Leverage* From 7.2 to 2.6, financed through:

  • New Credit Facility: 5-year $21 million term loan, funded at close, and availability under a $1 million interest line and $2 million ABL revolver
    • Interest Rate: 13.5% fixed (11% cash, 2.5% PIK)
    • Mandatory Amortization: Years 1 & 2 = 0%, Thereafter = 5%
  • PIPE: ~$10.3 million raised at $0.35 per share, (29,471,429 shares)
    • Participants: TRCK Management 1.5%, Carlson Ridge Capital, LLC (“CRC”‘) 49.25%, JCP Investment Management, LLC (“JCP”) 49.25%

• Debt Maturity Extended To 5-Years
• Annual Cash Interest Savings of ~$200,000 anticipated over the next 12-months
• Board, Management, Creditor, & Shareholder Alignment with the new Board representing ~75% of go-forward ownership, management participation in the PIPE, and creditor alignment through 2.5% equity warrant coverage

*Net Debt = (Long-Term Debt + Accrued Unpaid Interest – Cash & Equivalents); Net Leverage = (Net Debt divided by TTM Adjusted EBITDA)

The transactions were supported by the Company’s new lender, Chatham Capital, CRC, JCP, and ADS Securities LLC, a subsidiary of Abu Dhabi Developmental Holding Company PJSC.

Derek Cassell, Chief Executive Officer, said “These transactions represent a significant milestone for us. By materially reducing leverage, extending maturities, and bringing in aligned, long-term partners with proven financial and industry-specific accumen, we’ve strengthened our financial and strategic foundations and are well-positioned to grow shareholder value.”

Financial Highlights

• Total Q1 FY26 revenue of $9.1M increased approximately 5.2% compared to Q1 FY25 revenue of $8.7M. The increase in revenue was driven principally by an increase in people assigned to monitoring for clients in Florida and Illinois. This increase was partially offset by a revenue decrease for our Chilean subsidiary, which was sold November 1, 2025.
• Gross profit of $4.3M in Q1 FY26 decreased approximately 3.5% compared to Q1 FY25 gross profit of $4.4M due to an increase in device repair costs and server costs, partially offset by an increase in revenue.
• Operating income in Q1 FY26 of $0.8M increased compared to the operating income of $0.1M in Q1 FY25. The increase in net income in Q1 FY26 is primarily due to an increase revenue and a gain on dissolution of our Israeli subsidiary.
• Adjusted EBITDA for Q1 FY26 of $1.21M, decreased compared to $1.25M for Q1 FY25 due to an increase in cost of revenue. Adjusted EBITDA in Q1 FY26 as a percentage of revenue decreased to 13.4%, compared to 14.4% for Q1 FY25 for the same reason.
• Unrestricted cash balance of $3.6M for Q1 FY26 decreased compared to $4.1M for Q1 FY25. The change in cash position was principally due to increased capitalized software costs.
• Net income attributable to shareholders in FY26 was $0.5M compared to net loss of ($2.0M) in FY25, a change principally attributable to an increase in operating income and positive currency exchange rate movements.

Financial Highlights

• Total FY25 revenue of $35.2M decreased approximately 5.0% compared to FY24 revenue of $36.9M. The decrease in revenue was driven principally by a decrease in people assigned to monitoring for clients in Virginia and Washington D.C. and due to our recently sold Chilean subsidiary.
• Gross profit of $17.5M in FY25 increased approximately 2% compared to FY24 gross profit of $17.2M due to lower monitoring center costs and lower communication costs, partially offset by a decrease in revenue.
• Operating income in FY25 of $1.2M increased compared to the operating loss of ($1.9M) in FY24. The increase in net income in FY25 is primarily due to a decrease in cost of revenue and a decrease in operating expense, partially offset by a decrease in revenue.
• Adjusted EBITDA for FY25 of $5.8M, increased compared to $5.4M for FY24 due to an increase in gross profit and a decrease in operating expenses. Adjusted EBITDA in FY25 as a percentage of revenue increased to 16.4%, compared to 14.6% for FY24 for the same reasons.
• Cash balance of $4.1M for FY25 increased compared to $3.6M for FY24. The change in cash position was principally due to a decrease in payments to vendors, partially offset by a decrease in collections from customers.
• Net loss attributable to shareholders in FY25 was ($1.9M) compared to net loss of ($3.1M) in FY24, a decrease principally attributable to an increase in operating income, partially offset by increases in interest expense and income tax expense.