Arlington, Virginia--(Newsfile Corp. - September 8, 2026) - Edge Total Intelligence Inc. (TSXV: CTRL) (OTCQB: UNFYF) (FSE: Q5I) ("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:

1. 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;

2. 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;

3. 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;

4. 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;

5. 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;

6. 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

7. 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, and appointment of Christie Odendaal to a leadership role supporting the Australian business and commercialization initiatives.

Ms. Odendaal has served as a product leader and manager surrounding certain products and capabilities that the Company intends to commercialize. Her experience with these technologies provides continuity of product knowledge while aligning Australian leadership more directly with the Company's objectives for product commercialization, customer development, and future recurring revenue.

The leadership changes are intended to better match the skills and operating structure of the Australian business with its next phase of development, including opportunities in defense, maritime, aviation, advanced manufacturing and the commercialization of technologies acquired through the Austal transaction.

The Company's objectives are to establish an Australian operation with a cost structure supported by committed and recurring revenue, strengthen accountability for cash flow and profitability, preserve relevant customer and product expertise, and build the commercial capabilities required to convert the Company's technology portfolio into sustainable revenue.

The Company is applying the same operating discipline across the Company globally as part of its continuing focus on improving operating efficiency, increasing recurring and product-related revenues, and progressing toward profitable operations.

Jason Nichols, Chief Executive Officer of the Company comments: "We are approaching the change with operating discipline: understand what changed, protect cash flow, align our business structure with committed business, and determine where the Company's technology and capabilities can create the greatest value for the broader defense and advanced-manufacturing market. Our objective remains to build profitable, durable operations in Australia and across the Company."

About Edge Total Intelligence
edgeTI™ provides operational intelligence software and solutions for defense, maritime, manufacturing, critical infrastructure and government organizations whose systems by design cannot be consolidated. Its edgeCore™ platform creates a unified, real-time operational picture and enables governed action across those systems, with approvals, controls and evidence preserved. Customer data remains in place and under the customer's control. Having attained Technology Readiness Level 9, edgeTI solutions have been authorized to operate and deployed in classified environments. edgeTI is headquartered in Arlington, Virginia, with operations in the United States, Canada, Australia and Serbia.

Forward-Looking Information and Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or future performance and reflect management's current expectations, estimates and assumptions as of the date of this press release.

Forward-looking information in this release includes, without limitation, statements concerning: the anticipated financial impact of the changes to the Supporting Agreements; the amount and timing of forecast revenue affected by those changes; amounts expected to carry into 2027; the Company's ability to recover amounts relating to work performed or contractual obligations; the continuation and potential expansion of the Company's relationship with Austal, Austal Australia and Austal USA; the existence, possibility or viability of business opportunities for the Company; potential defense, maritime, aviation and advanced-manufacturing opportunities; the Company's ability to replace affected revenue; anticipated cost reductions and operating efficiencies; the restructuring and future performance of the Company's Australian business; commercialization of acquired technologies; and the Company's progress toward profitable operations; and all matters under the heading "Outlook".

Forward-looking information is based on assumptions management considers reasonable as of the date hereof and is subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including the outcome of contractual discussions with Austal and other potential customers and third parties; interpretation and enforceability of applicable agreements; timing of government and defense procurement; changes in Australian and U.S. defense policy; the availability and timing of new customer contracts; the Company's ability to manage costs and liquidity; the successful commercialization of acquired technology assets; the availability of financing when required; and general economic, market and industry conditions.

Readers should not place undue reliance on forward-looking information, which speaks only as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise such information. Additional risk factors are described in the Company's continuous disclosure filings available under its profile on SEDAR+.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313525