Edge Total Intelligence Provides Update on Australian Operations

Edge Total Intelligence Inc. ("edgeTI" or the "Company") a provider of real-time digital operations software and solutions, today provided an update regarding its Australian operations. Austal Australia Subcontract Changes The Company was notified by Austal Ships Pty Ltd (" Austal Australia "), an Australian subsidiary of Austal Limited (" Austal "), that certain supporting scopes of work associated with the Strategic Shipbuilding Agreement (SSA) program (the " Supporting Agreements ") to which EdgeTI WA Pty Ltd (" Edge WA ") was a party to were not renewed and as such, lapsed pursuant to their terms on June 30, 2026 (the " Lapses "). Based on the Edge WA's operating forecast immediately prior to the Lapses, the effect of the Lapses represents approximately US$1.3 Million in revenue for the period from July 2026 through December 2026 and approximately US$1.3 Million in revenue from January 2027 through June 2027 irrespective of any other business. The Company is completing its accounting and contractual assessment of these amounts, including the timing of revenue recognition, amounts earned or recoverable for work already performed, and any remaining contractual obligations between the parties. The changes are not anticipated to alter the Company's previously reported financial results for the six months ended June 30, 2026, subject to completion of the Company's accounting review. As reported on August 31, 2026, the Australian operating segment contributed approximately US$2.02 million during the first six months of 2026. Immediate Management Response Upon receiving notice of the Lapses, management and the board of directors of the Company (the " Board ") initiated a review of the immediate financial impact and the implications for the Company's Australian business and operations, its broader strategy and its relationship with Austal. The Company's actions have included: Assessing the nature and scope of the Austal Australia changes , including the underlying commercial, program and operational considerations between Austal and Edge WA and these impacts on current and anticipated work as well as the relationship; Evaluating the Framework Collaboration Agreement , including potential means by which the parties may continue to advance the commitments, commercial objectives and opportunities contemplated by that agreement notwithstanding the changes to the individual supporting agreements; Reviewing the leadership, organizational structure and cost base of the Australian business unit against committed revenue, expected cash flows and the Company's broader Australian growth and commercialization strategy; Mapping and sizing additional Australian and U.S. opportunities , including opportunities involving Austal Australia, Austal's wholly-owned US subsidiary Austal USA LLC (" Austal USA ") and other defense, maritime, aviation and advanced-manufacturing customers; Assessing the impact of evolving Australian and U.S. defense priorities and contracting structures on both the existing commercial relationship and future opportunities with Austal; Reviewing the accounting characterization of the original Austal technology acquisition and related arrangements with the Company's accounting and audit advisers in light of subsequent events; and Coordinating disclosure between the parties , while protecting the integrity of ongoing commercial discussions and ensuring that investors receive information that is sufficiently developed to understand the nature and expected impact of the changes. As part of its immediate response, the Company has begun aligning the Australian organization, leadership structure and cost base with committed revenue, identified market opportunities and the Company's broader commercialization strategy. This included implementing a change in Australian leadership, resulting in the departure of Rodney Bird , an...