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TORONTO, May 14, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill") (TSX: QTRH) (OTCQX: QTRHF) announces results from its Annual General and Special Meeting of shareholders (the "Meeting") that was held on Monday, May 13, 2024, at 10:00 a.m. (Eastern Daylight Time). A replay of the Meeting can be viewed at the Investors section of Quarterhill's website.

About Quarterhill

Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", "expect" and similar expressions.

Forward-looking statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca. The Company believes the expectations reflected in ‎the forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. Quarterhill has no intention, and undertakes 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 law.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-annual-general-and-special-meeting-results-302145448.html

SOURCE Quarterhill Inc.

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• Quarterhill will supply and maintain iTHEIA™ video-based AI traffic count and classification systems at 17 sites across North Dakota.
• Vehicle count and classification data from iTHEIA, an advanced AI-powered, video-based system, will provide essential data for highway planning, design, maintenance, and management in the state.

TORONTO, June 6, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), announced today that it has been awarded two contracts valued at $1.5 million for the supply and maintenance of iTHEIA™ AI Video Automatic Traffic Recorders ("ATR") in the western and eastern regions of North Dakota. All financial information in this press release is reported in U.S. dollars.

The two contracts involve iTHEIA™ upgrades for 14 existing traffic data collection sites located across the state and the installation of three additional sites at Bismarck Expressway, Buxton, and Bowesmont. This expansion will use artificial intelligence ("AI") to bolster the North Dakota Department of Transportation ("NDDOT") data collection capabilities, ensuring comprehensive traffic data collection throughout the year.

These AI-powered ATR sites will play a critical role in collecting vehicle count and classification data, which is essential for highway planning, design, maintenance, and management in North Dakota. Traffic volume counts, including data on commercial vehicles, passenger vehicles, bicycles, and pedestrians, are crucial inputs for traffic engineering and planning analyses. This data supports the development of infrastructure project design parameters, which are vital inputs for road construction plans.

To meet these objectives, the NDDOT will utilize Quarterhill's iTHEIA™ non-intrusive data collection solution. iTHEIA™ utilizes video and machine learning for vehicle traffic counting and classification. iTHEIA™ offers significant advantages, including:

• Security and Reliability: An industrial-grade computing system and Linux operating system provide high reliability and security, and an NDAA-compliant camera system meets Federal requirements.
  
  
• Safety and Cost-Effectiveness: By eliminating the need for road closures during installation and maintenance, iTHEIA™ enhances safety and reduces costs.
  
  
• Superior Longevity: Unlike in-road sensor-based systems, iTHEIA™ is unaffected by pavement degradation and performs reliably regardless of road surface conditions.
  
  
• Autonomous: iTHEIA™ uses powerful edge-computing technology to perform vehicle counts and classification at the roadside, eliminating the need to upload video for third-party processing.
  
  
• Comprehensive Data Collection: iTHEIA™ provides accurate and continuous traffic data collection, essential for informed decision-making in transportation infrastructure planning and management.

Quarterhill is committed to delivering innovative solutions that enhance safety and promote sustainable transportation infrastructure. The iTHEIA™ system represents a leap forward in traffic data collection technology, contributing to safer and more efficient roadways.

"We are pleased to expand our relationship with NDDOT and to enhance the state's traffic data collection capabilities with our cutting-edge iTHEIA™ solution," said Chuck Myers, CEO of Quarterhill. "These contracts not only underscore the confidence in our technology but also demonstrate our commitment to providing AI-based systems for safer, more efficient, and cost-effective transportation management. Ensuring the accuracy of traffic data is paramount, and with iTHEIA™, we will deliver comprehensive vehicle data to serve North Dakota's needs for years to come."

About Quarterhill

Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", "expect" and similar expressions.

Forward-looking statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca. The Company believes the expectations reflected in ‎the forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. Quarterhill has no intention, and undertakes 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 law.

View original content:https://www.prnewswire.com/news-releases/north-dakota-dot-selects-quarterhills-itheia-ai-classification-system-for-traffic-monitoring-302165590.html

SOURCE Quarterhill Inc.

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TORONTO, May 2, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill") (TSX: QTRH) (OTCQX: QTRHF) will release its financial results for the three-month period ended March 31, 2024, on Monday, May 13, 2024. Chuck Myers, CEO, and Kyle Chriest, CFO, will host a conference call and audio webcast at 8:30 a.m. ET the same day.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/2XgQ0qjpAOR        
• Webcast replay will be available at: https://app.webinar.net/2XgQ0qjpAOR  

Traditional Dial-in Information

• To access the call from the U.S. and Canada, dial 1.888.664.6383 (Toll Free)
• To access the call from other locations, dial 1.416.764.8650 (International)

Rapidconnect

To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/3JGS7Md  

Telephone Replay

Telephone replay will be available from May 13, 2024, until May 20, 2024, at: 1.888.390.0541 (Toll Free North America) or 1.416.764.8677.

Conference ID: 77628592 and Replay Passcode: 628592 #

About Quarterhill

Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.      

View original content:https://www.prnewswire.com/news-releases/quarterhill-to-announce-q1-2024-financial-results-302134102.html

SOURCE Quarterhill Inc.

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Not that long ago, city traffic lights followed a rigid script, freight routes were planned with paper maps, and transportation systems were blind, operating without insight into the roads they managed.

Today, something extraordinary is happening.

Artificial Intelligence is stepping in, not just to guide vehicles, but to orchestrate entire transportation networks, taking on the biggest challenges in modern mobility.

Facing a System That’s Struggling to Keep Up

For decades, the $3.5 trillion global transportation industry has run on outdated models and reactive decision-making. Congestion eats away at productivity. Unexpected vehicle breakdowns cost billions. Pollution rises from cars idling in traffic. The very infrastructure meant to keep us moving has become the bottleneck of progress.

But what if the system could learn and improve?

What if roads, vehicles, and transit networks could predict problems before they happened, adapt in real time, exchange information instantly, and improve the way we move every single day?

Modern AI digests and aligns messy information into high-value signals

Fueling Intelligence with Millions of Miles of Data

AI transforms chaos into clarity. It feeds on trillions of data points from vehicle sensors, weather feeds, mobile apps, road transactions, and traffic cameras. It processes them at speeds no human team could match. And most importantly, it acts. No delay.

Decades of commutes, delivery routes, maintenance logs, toll transactions, and road sensor readings, once stored and forgotten, have become AI information gold. Add to that a constant torrent of fragmented, inconsistent, and unstructured data from today’s sensors, GPS pings, infrastructure logs, and mobile devices, and you have a source too complex for traditional analysis, but perfect for AI.

Modern AI digests and aligns this messy information into high-value signals, allowing predictive systems to detect failures before they happen, traffic software to spot congestion before it forms, and routing tools to make smarter choices using both live and historical patterns.

Consider this: humans make decisions based on experience.

AI, trained on decades of historical and real-time transportation data, has more experience than any team of humans could process in a lifetime.

Fixing What’s Not Yet Broken

Traditionally, maintenance followed the calendar, not the condition. That meant replacing parts too soon or worse, after failure.

That model is now flipped.

With sensors embedded in critical components, AI can detect wear patterns long before visible damage. Maintenance crews receive alerts before breakdowns occur, reducing costs, minimizing delays, and keeping vehicles on the road where they belong.

Using predictive maintenance, some fleets are already seeing 15–30% reductions in costs and significant gains in uptime.*

Optimizing Roadways in Real Time

Cities worldwide are turning to AI-driven traffic systems that dynamically adjust signals, predict congestion, and prioritize emergency responders. With every passing vehicle, these systems are getting smarter.

The results? Up to 25% shorter travel times, 30% fewer emissions, and faster emergency responses, all through real-time, data-driven decisions.**

And optimization is just the start.

By uncovering patterns in how, when, and where people travel, AI helps planners design transit systems that respond to reality, not outdated assumptions. Schedules shift with demand. Routes evolve with population changes. Services adapt to actual usage.

Enabling Smarter Cities through Mobility as a Service

The same data that powers operational insights can also lay the foundation for a more connected, responsive transportation future through Mobility as a Service (MaaS) , a model that unifies public transit, ride-hailing, bike share, tolling, and other transport options into a single, on-demand platform.

AI-enabled MaaS platforms go far beyond getting from point A to point B. They can weigh variables like cost, sustainability, accessibility, and even long-term urban goals. Instead of just offering the fastest route, these systems can suggest the most efficient, most affordable, or most eco-friendly option, all in real time.

That opens the door to smarter city planning.

A city focused on easing downtown congestion or revitalizing underused neighborhoods could use AI to identify opportunities. At the same time, MaaS platforms respond with targeted incentives like discounted tolls, lower fares, or loyalty rewards. Nudging behavior in the right direction.

This requires more than just good data. It needs real-time, hyper-local, highly connected information. Precisely the kind AI is built to understand and act on. As cities look to shape not just how people move, but how communities grow, the combination of AI and MaaS will be central.

AI can detect danger before it becomes a disaster by spotting the telltale signs

Improving Safety Through AI-Enhanced Operations

Safety has always been the backbone of transportation. But for decades, it was a game of catch-up. Incidents happened, reports were filed, and only then did action follow.

Today, by continuously analyzing data from sensors, cameras, connected vehicles, and infrastructure, AI can detect danger before it becomes a disaster by spotting the telltale signs: near-misses, speeding, repeat violations, adverse weather, and growing congestion.

When risks are detected, systems respond instantly. Traffic lights are retimed in high-risk zones. Emergency crews are dispatched precisely where needed. Drivers see live alerts on digital signs, in-vehicle displays, or connected apps, prompting them to slow down, reroute, or adjust on the spot.

The results are real. In pilot cities, Intelligent Traffic Management Systems (ITMS) have reduced wrong-way crashes by 20% and overall crash rates by 14%. Vehicle-to-everything (V2X) technology could go even further, potentially preventing 13% of U.S. traffic accidents — over 439,000 crashes every year.***

This is more than a reaction; it’s prevention. And with every mile traveled, AI grows sharper, refining strategies to protect everyone, from drivers to pedestrians.

Partnering to Unlock What’s Possible

However, integrating AI across transportation comes with challenges from protecting data privacy to retrofitting legacy infrastructure and establishing shared standards. But the payoff is too big to ignore.

Quarterhill is committed to helping our partners capture the benefits of AI while addressing these realities. We go beyond collecting transportation data. We interpret the story behind every journey. By analyzing massive flows of information from vehicles, infrastructure, and users, we identify inefficiencies, uncover patterns, and design solutions that scale across entire ecosystems.

From predictive maintenance to turning fragmented data into actionable insight, we work side-by-side with agencies and operators to future-proof operations, not just for what’s next, but for what’s possible. Building a smarter transportation system requires more than just AI. It takes collaboration, insight, and a commitment to solving the right problems.

Conclusion: Balancing Progress with Responsibility

There was a time when our transportation systems operated in the dark; disconnected, reactive, and limited by the boundaries of human oversight.

AI is lighting the way forward by enabling roads, vehicles, and infrastructure to work together, to adapt, and to improve with every journey. From traffic flow to fleet management to transit planning, it’s helping leaders make decisions grounded in data, not guesswork.

But with this power comes responsibility.

How do we balance innovation with equity? Safety with speed? Automation with employment?

The leaders who will define the next era of transportation won’t just build smarter systems, they’ll build them responsibly. The question is, who will be smart enough to lead the way?

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By Raman Jafroudi

Raman Jafroudi serves as Senior Director of Business Development at Quarterhill. As a Senior Sales and Business Development Leader, Certified Project Manager, and Technology Specialist, he brings over 20 years of international experience across North and Central America, Europe, and Asia. With deep expertise in tolling, Intelligent Transportation Systems (ITS), and smart mobility, he specializes in sales strategy, project management, and delivering innovative end-to-end technology solutions.

At Quarterhill, Raman leads sales and business development efforts in tolling and ITS, driving revenue growth, and market expansion across North America and globally.

Raman holds an M.S. in Telecommunications Engineering and a B.S. in Electrical Engineering from Vienna University of Technology.

References

* Predictive Maintenance Savings

Fleet operators commonly report 15–25% reductions in total maintenance costs — with some larger fleets achieving even greater savings.

In some cases, businesses implementing predictive maintenance have seen up to 25% reduction in maintenance costs, up to 50% decrease in downtime, and up to 20% extension in equipment lifespan.

Deloitte estimates that predictive maintenance can reduce overall maintenance costs by 5–10%, while McKinsey notes a more optimistic savings range of 18–25% over traditional approaches.

** Traffic Optimization & Emission Reduction

Pittsburgh’s SURTRAC adaptive traffic system cut travel times by 25%, reduced braking by 30%, and slashed idle time by 40%.

Google’s Project Green Light shows potential reductions of 30% in stops and 10% in emissions at intersections using AI-optimized signaling.

In China, big‑data–driven adaptive signals reduced vehicle trip times by 11% during peak hours, and avoided 31.7 million tonnes of CO₂ annually.

Smart traffic systems more broadly have been shown to reduce travel times by up to 25%, cut congestion by up to 30%, and decrease delays by 25–40%.

*** Improving Safety
The Moonshot Plan to Eliminate Deaths on America’s Roads

Urban Mobility Management

Artificial Intelligence in Traffic Safety: Revolutionizing Accident Prevention

Vehicle to Everything

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• TxTag user accounts are now managed by HCTRA, powered by Quarterhill's advanced technology, for improved operational efficiency.
  
  
• This transition ensures a unified and enhanced customer service experience for drivers throughout the Austin and Houston regions.

TORONTO, July 15, 2025 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a global leader in providing intelligent transportation system solutions, announced today that the transition of approximately one million TxTag user accounts to the Harris County Toll Road Authority ("HCTRA") back office system has received system acceptance as of Friday, March 14, 2025. TxTag user accounts managed by the Texas Department of Transportation ("TxDOT") have been serviced by HCTRA since going live in December 2024.

Quarterhill has been a critical technology partner to HCTRA since 2002 and upgraded the authority's back office to a state-of-the-art system in 2017. Quarterhill designed the RiteHorizon™ solution as a multi-tenant back office to permit the processing of transactions by multiple agencies. A uniquely strong internal control system enables transaction tracking and revenue reporting by agency, facility, plaza, and lane. Reporting, reconciling, and settling transactions are separated and indicated for each authority. HCTRA now processes transactions for six different agencies with varying policies and degrees of involvement in customer service.

TxDOT internal reporting indicated that 60% of its customers' transactions occurred on HCTRA-managed roads. By moving its user account management to HCTRA, TxDOT will improve efficiency by consolidating customer service and support. Consolidation will also create a unified customer service experience for drivers throughout the Austin and Houston areas. TxTag customers can keep using their current tags with the unified service.

The back-office system developed by Quarterhill was essential for extending HCTRA's high-quality service to TxTag customers. This partnership between HCTRA and TxDOT marks a significant advancement toward simplified and efficient transportation solutions.

"We are proud to support the seamless integration of TxTag users into HCTRA's advanced back-office system, powered by our RiteHorizon™ solution," said Chuck Myers, CEO of Quarterhill. "This pivotal moment exemplifies how sophisticated technology can streamline operations, foster inter-agency collaboration, and improve the experience for drivers. As these communities move forward under HCTRA's capable administration, supported by Quarterhill's robust systems, the benefits are clear: improved efficiency, cohesive customer support, and a strong platform for future advancements in toll road management."

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", "expect" and similar expressions.

Forward-looking statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca. The Company believes the expectations reflected in ‎the forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. Quarterhill has no intention, and undertakes 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 law.

View original content:https://www.prnewswire.com/news-releases/quarterhill-announces-system-acceptance-of-transition-of-txdots-txtag-user-accounts-to-harris-county-toll-road-authority-302505011.html

SOURCE Quarterhill Inc.

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• Quarterhill to Acquire Red Fox I.D. Limited
• Kyle Chriest named Chief Financial Officer
• Quarterhill will begin reporting in U.S. currency with its Q1 2024 results.

TORONTO, March 15, 2024 /PRNewswire/ - Quarterhill Inc. ("Quarterhill" or the "Company") (TSX: QTRH) (OTCQX: QTRHF), a leading provider of tolling and enforcement solutions in the Intelligent Transportation System ("ITS") industry, announces its financial results for the three and twelve months ended December 31, 2023. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

Q4 2023 Highlights

• Revenue was $58.5 million, up 46% compared to $40.1 million in Q4 2022.
• Adjusted EBITDA¹ was $3.2 million compared to ($1.5) million in Q4 2022.
• Revenue backlog³ was more than USD$520 million at December 31, 2023.
• Working capital was $104.6 million at December 31, 2023.
• Tolling unit launched new service with Central Texas Regional Mobility Authority.
• Tolling unit launched the E-ZPass® Interoperability Hub.
• Enforcement unit signed new contracts in California and North Carolina.

Fiscal 2023 Highlights

• Revenue was $194.3 million, up 22% compared to $159.3 million in 2022.
• Adjusted EBITDA was $3.8 million compared to ($10.5) million in 2022.
• Appointed Chuck Myers as CEO and member of the board of directors.
• Appointed Kyle Chriest as Interim CFO. Effective today, Mr. Chriest is now Quarterhill's permanent CFO.
• Rusty Lewis was appointed board Chair and Bill Morris was appointed as a director. Of the board's six current members, four have been appointed or elected within the past two years.
• Sold Wi-LAN Inc. to become a pure-play ITS company.

"2023 was a year of transition for Quarterhill with important changes made to the board and management, which set the stage for a greater focus on operational excellence throughout the company," said Chuck Myers, CEO of Quarterhill. "In 2023 generating strong growth in revenue and adjusted EBITDA to end the year. This was due to steady performance from our enforcement business, improved execution on our tolling implementations and keeping a close eye on expenses."

"We believe we have entered 2024 with a stronger foundation and strategic direction from which to drive top-line growth and margin expansion. We plan to achieve this by remaining focused on growing our world-class ITS franchises in tolling and enforcement, while investing in our higher margin software applications and seeking expansion opportunities in the European tolling market and in the logistics vertical. Our goal is to achieve growth while generating reliable cash flows in order to build a healthy and sustainable balance sheet capable of supporting both our organic and acquisitive growth strategies."

Definitive Agreement to Acquire Red Fox I.D. Limited

Quarterhill is pleased to announce that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Red Fox I.D. Limited ("Red Fox"). Based in Haddenham, England, Red Fox is a profitable and growing provider of Automatic Vehicle Detection and Classification ("AVDC") software to the tolling industry. Subject to customary closing conditions, the acquisition is expected to close on, or about, April 1, 2024.

AVDC is responsible for the detection, classification and tracking of a vehicle as it enters and exits a tolling facility. AVDC is at the front end of any tolling transaction where accuracy and flexibility are essential. Red Fox's Quantum software platform boasts detection accuracy of up to 99.96% and its ability to process captured data from both LiDAR and "in pavement" inductive loops, makes it unique in the market and at the forefront of advanced AVDC solutions.

Mr. Myers added: "As a customer of Red Fox's Quantum software, we have first-hand experience with the quality, performance and untapped potential of the product. We look forward to supporting and growing Red Fox's customer base and to providing them with the high level of innovation and functionality that Quantum is known for."

Mr. Myers continued: "Quarterhill is making a bigger push into technology development with the goal of driving greater growth from software sales. Quantum is the type of solution we have on our technology roadmap, and with Red Fox, we were presented with a compelling "buy versus build" opportunity. With attractive financial terms, a recurring revenue model and strong opportunities for growth, we are very excited to welcome Red Fox to the Quarterhill team."

Under the terms of the definitive agreement, Quarterhill will acquire Red Fox for up to US$10.2 million through a combination of cash and equity. Red Fox is expected to generate US$1.4 million in annualized Adjusted EBITDA in 2024, and as such the acquisition is expected to be immediately accretive to both Adjusted EBITDA and cash flow.

For more information on Red Fox, visit www.redfoxid.co.uk

Q4 and Fiscal 2023 Financial Review

Quarterhill's Management's Discussion and Analysis and financial statements for the three and twelve months ended December 31, 2023 are available at the Company's website and at its profile at SEDAR+. Please note that beginning with the reporting of its financial results for the three months ended March 31, 2024, Quarterhill will report its results in U.S. currency going forward.

Financial statements for the three and twelve months ended December 31, 2023, and for the respective comparison periods, have been prepared to reflect continuing operations, and therefore, exclude results during those periods from Wi-LAN Inc. ("WiLAN"), which was sold by Quarterhill on June 15, 2023. Operating results from WiLAN in 2022 and up to the date of sale on June 15, 2023, are reported as net (loss) income from discontinued operations.

Revenue for the three and twelve months ended December 31, 2023 was $58.5 million and $194.3 million compared to $40.1 million and $159.3 million in the prior year comparative periods, respectively. The increase in revenue was due to increased activity and improved performance in North American project revenue and growth in both the enforcement and tolling business units.

Gross profit² as a value and as a percentage of revenues may be subject to significant variance in each reporting period due to the nature and type of contract and service work currently in process and currency volatility. Gross profit for the three and twelve months ended December 31, 2023, was $11.5 million and $40.6 million, or 19.7% and 20.9%, as compared to $10.2 million and $37.8 million, or 25.3% and 23.7% in the prior year comparative periods, respectively. The decrease in gross profit margin percentage compared to the prior year periods is primarily attributed to tolling implementation expense overruns. These expense overruns resulted in additional unanticipated costs and a reduced margin profile for the implementation projects. This decrease in gross profit margin was partially offset by continuing strong performance in our enforcement operations.

Operating expenses include sales general and administrative ("SG&A") expense, research and development costs ("R&D"), depreciation and amortization and other charges. Total operating expenses for the three and twelve months ended December 31, 2023 were $21.5 million and $64.7 million compared to $21.0 million and $87.6 million in the prior year comparative periods, respectively. The increase for the three months ended December 31, 2023, was due to higher impairment and other charges, which was offset by lower SG&A. The decrease for the year ended December 31, 2023 is mainly attributed to the cost reduction initiatives deployed by the Company and the allocation of certain selling, general and administrative personnel costs into cost of revenues as well as the absence of a one-time $14.6 million legal settlement that was present in the 2022 twelve-month comparative period.

SG&A for the three and twelve months ended December 31, 2023 was $9.2 million and $35.0 million compared to $11.9 million and $48.6 million in the prior year comparative periods, respectively. As a percentage of revenue, SG&A in Q4 2023 was 16% compared to 30% in Q4 2022. The Company has worked to drive efficiencies in the business through its restructuring and integration efforts, which are reflected in the year-over-year decrease in SG&A.

Adjusted EBITDA¹ for the three and twelve months ended December 31, 2023, was $3.2 million and $3.8 million compared to ($1.5) million and ($10.5) million for the comparative prior year periods, respectively. The increase in Adjusted EBITDA compared to the prior year periods is due to the favorable changes to revenue and operating expenses as previously explained.

Net loss from continuing operations for the three and twelve months ended December 31, 2023 was ($0.14) per diluted share and ($0.38) per diluted share, compared to a net loss from continuing operations of ($0.17) per diluted share and ($0.47) per diluted share, in the comparative prior year periods, respectively.

Cash used in continuing operations for the three and twelve months ended December 31, 2023 was $1.6 million and $22.6 million, compared to cash generated from continuing operations of $7.8 million and cash used in continuing operations of $43.8 million in the comparative prior year periods, respectively.

Cash and cash equivalents and short-term investments were $56.6 million at December 31, 2023, compared to $60.9 million at September 30, 2023 and $67.9 million at December 31, 2022. Working capital was $104.6 million at December 31, 2023, compared to $111.1 million at September 30, 2023 and $71.5 million at December 31, 2022. Due to the nature of the Company's business activities, operating cash flows may vary significantly between periods due to changes and timing in working capital balances.

Conference Call and Webcast

Quarterhill will host a conference call to discuss its financial results on Friday, March 15, 2024, at 10:00 AM Eastern Time.

Webcast Information

• Live audio webcast will be available at: https://app.webinar.net/kaDJ5DBQnAr
• Webcast replay will be available at: https://app.webinar.net/kaDJ5DBQnAr

Traditional Dial-in Information

• To access the call from Canada and U.S., dial 1.888.664.6383 (Toll Free)
• To access the call from other locations, dial 1.416.764.8650 (International)

Rapidconnect

To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/49QcJge  

Telephone Replay

Telephone replay will be available from March 15, 2024, until 11:59 p.m. ET on March 22, 2024, at: 1.888.390.0541 (Toll Free North America) or 1.416.764.8677.

Conference ID: 14601908 and Replay Passcode: 601908 #

Non-IFRS Financial Measures and Non-IFRS Ratios

Quarterhill uses both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

Adjusted EBITDA - Non-IFRS Financial Measures

We use the non-IFRS financial measure "Adjusted EBITDA" to mean net (loss) income adjusted for (i) income taxes, (ii) finance expense or income; (iii) amortization and impairment of intangibles; (iv) other charges and other on-time items; (v) depreciation of right-of-use assets and property, plant and equipment; (vi) stock- based compensation; (vii) foreign exchange (gain) loss; and (viii) other income which includes equity in earnings from joint ventures; (ix) dividends received from joint ventures; and * changes in fair value of derivative liability. Adjusted EBITDA is used by our management to assess our normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Quarterhill. Adjusted EBITDA should not be interpreted as an alternative to net (loss) income and cash flows from operations as determined in accordance with IFRS or as measure of liquidity. The most directly comparable IFRS financial measure is Net (loss) income.

Adjusted EBITDA per share – Non-IFRS ratio

Adjusted EBITDA per share is calculated as Adjusted EBITDA divided by the basic weighted average of common shares. Adjusted EBITDA per share is used by our management and investors to analyze cash generated by Quarterhill on a per share basis. The most comparable IFRS measure is earnings per share.

Backlog - Non-IFRS Financial Measures

We use the non-IFRS measure "backlog" to mean the total value of work that has not yet been completed but that in management's experience of similar situations has: (a) a high certainty of being performed pursuant to existing contracts or work orders specifying job scope, value and timing; (b) an expectation of expansion of existing contracts due to expected extensions; and/or (c) been awarded to one or more of our ITS operating subsidiaries as evidenced by a binding contract or where the finalization of a binding contract is reasonably assured. Activities under such contracts may cover a period of up to 15 years. We do not include in "backlog", the value of any expected but unsigned change orders that management considers may apply to such contracts.

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company (b) are not disclosed in the financial statement of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

Key supplementary measures disclosed are as follows:

Gross margin %
Calculated as gross profit as a percentage of revenue.

About Quarterhill

Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is global leadership in ITS, via organic growth of the Electronic Transaction Consultants, LLC (ETC) and International Road Dynamics, Inc. (IRD) platforms, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.

Forward-looking Information

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") regarding Quarterhill, its operating subsidiaries and their respective businesses. Such forward-looking statements relate to future events, conditions or future financial performance of ‎Quarterhill based on future economic conditions and courses of action. All statements other ‎than statements of historical fact may be forward-looking statements. Such forward-looking statements ‎are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", ‎‎"plan", "goal", and similar expressions. These statements involve known and unknown risks, assumptions, ‎uncertainties and other factors that may cause actual results or events to differ materially from those ‎anticipated in such forward-looking statements. The Company believes the expectations reflected in ‎those forward-looking statements are reasonable, but no assurance can be given that these expectations ‎will prove to be correct and such forward-looking statements included in this news release should not be ‎unduly relied upon.‎ In particular, this news release contains forward-looking statements pertaining to, but not limited to, the ‎following: operational and financial expectations for the 2024 financial year, including revenue, gross margin and Adjusted EBITDA expectations; the Company's business plan; closing of the acquisition of Red Fox, including satisfaction of customary closing conditions; integration of Red Fox into the Company's business; and expectations regarding Red Fox results, including estimated cash on hand and 2024 Adjusted EBITDA.

‎Although the forward-looking statements contained in this news release are based upon assumptions ‎which management of the Company believes to be reasonable, the Company cannot assure investors ‎that actual results will be consistent with these forward-looking statements. With respect to forward-‎looking statements contained in this news release, the Company has made assumptions regarding, but ‎not limited to: the Company's ability to execute on its business plan; successful acquisition and integration of Red Fox; general economic and industry trends; operating assumptions relating to the ‎Company's operations; demand for the Company's products and services; cost estimates for fixed price contracts; and the other assumptions set forth in the ‎Company's most recent annual information form available under the Company's profile on SEDAR+ ‎at www.sedarplus.ca.‎

The Company's actual results could differ materially from those anticipated in the forward-looking ‎statements, as a result of numerous known and unknown risks and uncertainties and other factors ‎including, but not limited to: changes in demand for the Company's products and services; general economic, ‎political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, ‎stock market volatility; reliance on key management personnel; risks related to competition within the Company's industry and relating to technological advances; litigation risks; cyber-security risks; fixed price contracts may result in unexpected costs to the Company; risks of health epidemics, pandemics and similar ‎outbreaks; and the other risks set forth in the Company's most recent annual information form ‎and management's discussion and analysis for the three and twelve months ended December 31, 2023 available under the Company's profile on SEDAR+ at www.sedarplus.ca.‎

The Company's actual results, performance or achievement could differ materially from those ‎expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be ‎given that any of the events anticipated by the forward-looking statements will transpire or occur, or if ‎any of them do so, what benefits the Company will derive therefrom. Readers are therefore cautioned ‎that the foregoing lists of important factors are not exhaustive, and they should not unduly rely on the ‎forward-looking statements included in this news release. All forward-looking statements contained in this news release are expressly ‎qualified by this cautionary statement. Quarterhill has no intention, and undertakes 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 law.

This news release contains "future-oriented financial information" and "financial outlooks" within the meaning of applicable Canadian securities laws (collectively, "FOFI"), including about the financial results, revenue, gross margin and Adjusted EBITDA of Quarterhill and Red Fox for the year ended December 31, 2024. FOFI, as with forward-looking ‎statements ‎generally, are, without limitation, based on the assumptions and qualifications, and are subject to the risks, set out ‎above in respect of forward-looking statements. Quarterhill's and Red Fox's actual financial position and results of operations may differ materially from ‎management's ‎current expectations and, as a result, the Company's and Red Fox's financial results may differ ‎materially from ‎the FOFI provided in this news release. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments and the FOFI contained in this news release was approved by management as of the date hereof, for purposes of providing further information about the Company's future business operations and results. However, because this information is subjective and subject to numerous risks and assumptions, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein, and such information is ‎presented for ‎illustrative purposes only and may not be an indication of the Company's actual ‎financial position or ‎results of operations.‎

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