Argo Corporation Reports First Quarter 2025 Financial Results
TORONTO , May 30, 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 March 31, 2025 (" Q1 2025"). All figures are in Canadian dollars unless otherwise noted.
Municipal Deployments
Argo has made significant progress in the commercialization of its Smart Routing™ technology. The Company's first municipal deployment in the town of Bradford West Gwillimbury launched in the second quarter of 2025, as previously announced by the Company. Argo also announced its landmark $10.9 million 12-month pilot with the City of Brampton in the second quarter of 2025, anticipated to launch later this year. While revenue from these agreements was not reflected in Q1 2025 results, the Company expects to begin recognizing related revenues in the second and third quarters of 2025. Argo continues to advance a robust pipeline of municipal opportunities, positioning the Company for continued growth.
Research & Development of Smart Routing™ Transit System
In Q1 2025, the Company continued its investment in research and development to enhance its proprietary Smart Routing™ hardware and AI-powered software ecosystem, including vertical integration hardware onboard its Argo X1 electric vehicles. This end-to-end platform combines real-time routing software, electric vehicles and full-service operations to deliver dynamic, on-demand transit services.
FoodsUp Inc.
The company held a 47.851% interest in FoodsUp Inc. (" FoodsUp") as of March 31, 2025 . FoodsUp is one of Canada's leading restaurant supply platforms, with annual revenues of $108 million in fiscal 2024. As previously disclosed, the Company made significant progress towards the divestment of this ownership interest in Q1 2025:
Sale of Shares: The Company received approximately $2.5 million in proceeds from the sale of an aggregate of 5,855 subordinate-voting shares of FoodsUp Inc.
Option Agreements: The Company entered into two option agreements (collectively, the " Option Agreements") granting the holders thereof the irrevocable option to purchase up to a total of 45,932 subordinate-voting shares of FoodsUp. If the transactions contemplated by the Option Agreements are fully exercised, the Company has the potential to receive gross proceeds of between $21.6 million and $30.2 million . The Company's ability to complete the transactions provided for in the Option Agreements remain subject to any required approvals, including final approval of the TSX Venture Exchange and approval of the shareholders of the Company.
In addition, in the second quarter of 2025, the Company announced that its board of directors declared a special stock dividend (the " Stock Dividend") intended to provide its legacy shareholders with their proportionate stake in the net proceeds realized upon the eventual sale by the Company of its ownership interest in FoodsUp. Pursuant to the Stock Dividend, all of the Company's common shareholders of record on August 13, 2025 (the " Record Date") will be entitled to receive, one Preferred Share, Series A of Argo for each common share of Argo held on the Record Date. The payment date for the Stock Dividend is August 20, 2025 . Additional details regarding the Stock Dividend can be found in the Company's press release dated May 21, 2025 .
For detailed information, please refer to Argo's condensed interim consolidated financial statements for the three months ended March 31, 2025 , and 2024 (" Q1 2025 Financial Statements") and its management's discussion and analysis of financial condition and results of operations for the three months ended March 31, 2025 , and 2024 (the " Q1 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 March 31, 2025 and 2024:
For the three months ended March 31
2025
2024
REVENUE
$512,172
$219,585
Cost of revenue
$115,987
$12,956
General and administration
2,570,907
966,946
Operational support
663,431
239,207
Research and development
224,492
49,174
Sales and marketing
10,648
34,802
Provision for trade and other receivables
-
-
Amortization & depreciation
18,490
34,746
Depreciation
25,989
7,584
Total operating expenses
3,629,944
1,345,415
OPERATING LOSS
($3,117,772)
($1,125,830)
OTHER INCOME (EXPENSES)
Foreign exchange gain/ (loss)
(14,791)
(40,069)
Interest expenses
(427,312)
(228,616)
Interest income
-
897
Loss on termination
(996,968)
-
Write-off of accounts payable settlements
-
98,202
Fair value gain (loss) on investments
2,726,221
-
Gain on sale of investment
105,864
-
Share of loss of an associate
-
(1,083,495)
Net income/ (loss) from continuing operations
($1,724,758)
($2,378,911)
Discontinued Operations
Net gain/(loss) from discontinued operations, net of tax
497
(489,791)
Gain from derecognition, net of tax
-
1,341,770
NET GAIN (LOSS)
($1,724,261)
($1,526,932)
Cumulative translation adjustment
(342)
78,655
Cumulative translation adjustment for discontinued operations
-
(252,661)
NET PROFIT (LOSS) AND COMPREHENSIVE PROFIT (LOSS)
($1,724,603)
($1,700,938)
(Loss) Profit per share
(Loss) income per share from continuing operations – Basic and diluted
($0.01)
($0.02)
Income (loss) per share from derecognition and discontinued operations - Basic and diluted
$0.00
$0.01
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 world's first fully vertically integrated transit system, combining Argo X1 electric vehicles, Smart Routing™ technology, and comprehensive operational management in a single end-to-end solution. By integrating every aspect of the transit experience, Argo enables municipalities to augment traditional fixed-route services to dynamically optimized on-demand service while maintaining standard public transit pricing. The company launched Argo School in September 2024 and began its first municipal deployment in Bradford West Gwillimbury in early 2025. 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 recognition of revenue in future quarters, the future growth of the Company, the completion of the completion of the exercise of the options granted pursuant to the Option Agreements by the holders thereof, Argo's ability to obtain all necessary approvals in respect of the Option Agreements and the Stock Dividend, and Argo's intention with respect to the Stock Dividend. 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 Q1 2025 Financial Statements and its Q1 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
22 minutes ago
- CBC
Hamilton non-profit marks 5 years of support for Black-owned businesses, hopes to make bigger impact
Social Sharing A non-profit organization that supports Black-owned businesses in the Hamilton area celebrates its fifth anniversary this week, and one of its leaders said the group wants to make an even bigger impact in Ontario and Canada. Ashleigh Montague, co-founder of Blk Owned, said while they started in Hamilton, where most of the businesses they support are located, they've also partnered with organizations in the Niagara Region. Montague said they are now ready to take Blk Owned even further. "When I think years from now I am seeing more of a national impact," Montague told CBC Hamilton. "Within the next three years, I see expanding geographically within Ontario, strengthening the reach that we have been able to foster over the last five years." Montague and her sisters — Alexandria Montague and Abygail Montague — co-founded Blk Owned on June 2, 2020 at a time when people around the world had taken to social media to post black squares after the resurgence of Black Lives Matter, and, specifically, the murder of George Floyd by white police officer Derek Chauvin in Minneapolis. Since then, the organization created an Instagram page to showcase Black-owned businesses, launched, and has hosted markets, events, and workshops along with a Black-owned business directory that highlights and showcases businesses to the community. In 2022, Blk Owned launched a trailblazer program to help young Black entrepreneurs gain fundamental skills to help improve their business. They've had three cohorts of participants since. In all, they've supported hundreds of Black entrepreneurs, Montague said. 'Entrepreneurship is really lonely' Blk Owned has received funding from Toronto Pearson airport's Uplift Fund, as well as the Hamilton Community Foundation, Montague said, which has allowed them to launch the community platform and a hybrid version of the trailblazer program. Montague said the trailblazer program runs over a two-month period with online and in-person components. At the end of each cohort, participants receive an award and networking opportunities with more established businesses, with the other participants and with facilitators, Montague said. The in-person segment has been held at Sheridan College the past two cohorts, she added. "Because of our expansion of our program... we've had people connecting with businesses from the Brampton region, the Scarborough region, all the way through to London," she said. "With our work with the Southwestern Ontario Black Business Network, we've been able to stretch our reach all the way to Windsor." Gugu Mpofu is the owner of Oaesis Within, an organic body care and wellness company. She told CBC Hamilton that she was one of the first participants in the trailblazer program, adding that "they've really helped propel my business." "They had mentors who were part of the Hamilton Business Centre and I ended up joining their startup company plus program where I got a grant of $5,000," Mpofu said. "I've always had the support of Blk Owned, whether it's just through their programming, through their vendor markets, through their networking events, and also through them recommending me into spaces where I was able to have wholesales," she added. Mpofu, who also serves as community relationships co-ordinator at Blk Owned, said the organization is more than a support system. "Entrepreneurship is really lonely, very scary, and starting my business, I was worried about being the only Black or racialized person in the room, and just having Blk Owned it's like somebody to lean on," she said. "I can always go back to them if I'm feeling like I need a resource or if I feel like I need to join a market or if I need to network with other people … and that's something that's very precious." Anniversary celebration on June 5 Matheus Brasileiro, the founder and owner of vegan Brazilian bakery Sau Bake in the Hamilton Farmers' Market, has been in business for more than two years — first in Toronto, and then Hamilton. They said they learned about Blk Owned through a friend and participated in the trailblazer program last year, adding that it was "very helpful." Brasileiro said the support Blk Owned provides to small businesses is like "having someone that gets your back and understands the struggle that you go through as a Black business and small business." "You can't run a small business without a community, without having support, and one of the big reasons that I [got] to where I am right now with my little shop … was knowing that I had Blk Owned [to support me]," Brasileiro added. To mark the fifth anniversary of Blk Owned, Montague said the organization will be hosting a community celebration on June 5 at CoMotion On King, the co-working space out of which staff work. Montague said part of the free event will be "taking a look back at the last five years, but also taking a moment to reflect on where we're going to be going, moving forward from here." Later in the summer, on July 13, they will also be hosting a fundraiser and awards gala, called the Garden Party at the Royal Botanical Gardens, where Blk Owned will be honouring seven business owners in the Hamilton community, Montague said.
Globe and Mail
25 minutes ago
- Globe and Mail
What you need to know about Ottawa's proposed GST cut for first-time homebuyers
The new Liberal government tabled a notice of ways and means motion last week to cut the GST for first-time homebuyers, moving forward with a key campaign promise from the recent election. Ottawa's proposed cut to the GST on new homes valued up to $1-million will provide first-time homebuyers a rebate of up to $50,000. However, the rebate would be reduced gradually for homes valued above $1-million and eliminated entirely for homes valued at $1.5-million or more. Called the first-time home buyers' GST rebate, the program would allow an eligible individual to recover up to $50,000 of the GST (or the federal portion of the HST) they paid when buying a home from a builder. The rebate also applies when buying shares of a co-operative housing corporation (where the co-op paid federal sales tax) or building a new home. For homes valued between $1-million and $1.5-million, the rebate would be reduced in a linear manner and calculated as a percentage of the maximum rebate ($50,000). In answer to questions from The Globe, Department of Finance spokesperson Benoit Mayrand provided examples of how this would work. To qualify for the rebate, at least one of the purchasers of the new home must be a first-time homebuyer acquiring it for use as their primary residence. (To be considered a first-time homebuyer, an individual generally needs to be a Canadian citizen or permanent resident, at least 18 years of age, and have not lived in a home, located anywhere in the world, that they or their spouse or common-law partner owned in the current year or previous four years.) The GST rebate would be available for homes where there's an agreement of purchase and sale with a builder made between May 27, 2025 and Dec. 31, 2030, and where construction begins by Dec. 31, 2030 and is completed substantially by Dec. 31, 2035. For someone building their own home, or having it built for them, construction must begin between May 27, 2025 and Dec. 31, 2030 to be eligible, and the home must be completed substantially by Dec. 31, 2035. The rebate can only be claimed once, and can't be claimed if a person's spouse or common-law partner has already used it. The first-time homebuyers' GST rebate would operate alongside the existing GST new housing rebate, which is available to eligible buyers whether or not they've previously owned a home. Under the existing GST new housing rebate, a homebuyer can recover 36 per cent of the GST paid on a new home priced up to $350,000, resulting in a maximum rebate under the program of $6,300. The GST new housing rebate is phased out in a linear manner for new homes up to $450,000, with no rebate for homes above that amount. (There may also be rebates available on the provincial sales tax.) Mr. Mayrand provided two examples of how the two rebates would work together for a first-time homebuyer.
Globe and Mail
25 minutes ago
- Globe and Mail
Should You Buy Citigroup While It's Below $76?
Citigroup (NYSE: C) is one of the best-known banks in the United States and probably the world. But it doesn't have the best history when it comes to dealing with adversity, given its less-than-impressive performance during the Great Recession. Even though it is a much different company today than it was back then, investors can probably do better. Here's why and how. What does Citigroup do? Citigroup is a bank, providing basic financial services to consumers and businesses. This is the core of its business. However, it also operates in the investment banking, wealth management, and markets spaces. The business is not significantly different from any of its largest peers, though it is important to note that Citigroup is more than just a simple bank. That said, it is just as important to take a little historical journey with Citigroup. That's because it allowed itself to get caught up in the housing market meltdown that happened during the Great Recession. It was forced to take a government bailout, and it cut its dividend. Neither the share price nor the dividend are back to the levels seen prior to the Great Recession. So nearly 15 years after the event, shareholders are still deeply underwater. To be fair, Citigroup is not the same company it was back then. It is more financially secure and is being operated more prudently. And yet the stock price has bumped repeatedly up against the $76 or so price level over the past decade only to fall back lower. With the stock price back up near that level, should investors buy on the hope that it will break through what appears to be an emotionally-driven price cap? Data by YCharts. There are better options than Citigroup The first concern that investors should probably have right now is related to the U.S. economy. There are legitimate worries that current tariff and tax policies could lead to a period of weakness. If that includes a recession, Citigroup stock will probably head lower again. That said, it seems unlikely that a recession will have the same impact on the business as did the Great Recession. So this risk is legitimate, but probably not something that should stop you from buying Citigroup in and of itself. That's where another important factor comes up -- the dividend. Citigroup currently offers a yield of around 3%. The average bank is yielding around 2.7%. That's a clear yield advantage, but you can actually do better if you buy Toronto-Dominion Bank (NYSE: TD) and its 4.4% yield. Given that one of the key reasons to buy Citigroup is the dividend, this is an important comparison to consider. One big difference between these two equally large North American banks is that TD Bank, as it is more commonly known, didn't cut its dividend during the Great Recession. That's because Canadian banks like TD Bank face more rigid regulations in their home market and, thus, tend to operate with more conservative business models. And that is an important fact to consider today because TD Bank is suffering through a self-imposed wound. TD bank's U.S. business was used to launder money. It paid a large fine, is working to upgrade its internal controls, and is under an asset cap until regulators are happy with the new controls. Its core Canadian business is unaffected by the asset cap (which effectively means the U.S. business can't grow until the cap is lifted) but overall growth will be slower for a few years than it has been historically. The U.S. business was expected to be TD Bank's growth engine. This is not good news, but it will likely pass in time. And that's the opportunity because investors have reacted by dumping TD Bank's stock. This has pushed the yield up toward historical highs and created a long-term opportunity for dividend investors (and turnaround investors). Investors can take comfort in the fact that, despite the headwinds, TD Bank increased its dividend yet again at the start of 2025. It was a modest hike, but the point of the increase was to signal that the bank was down, but not out. Even Citibank below $76 isn't as compelling as TD Bank There's nothing inherently wrong with Citigroup. Investors probably wouldn't be making a huge mistake to buy it even as it bounces up against a stock price ceiling it has hit several times before. But with a yield of around 3%, investors can do much better with TD Bank and its 4.4% yield and turnaround potential as it recovers from a self-inflicted wound. While economic concerns will impact both of these large banks, TD Bank appears to offer more opportunity for income and capital appreciation today. Should you invest $1,000 in Citigroup right now? Before you buy stock in Citigroup, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Citigroup wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
