Dr. Rahul Kushwah reports

DEEPSPATIAL AI: FROM TECHNOLOGICAL VALIDATION TO MARKET SUCCESS

Deepspatial Inc. has made significant milestone in its corporate journey, having evolved from a phase of rigorous technological validation and strategic financial planning to achieving substantial market penetration in the transformative education sector. This transition marks the beginning of its revenue-generating phase, underscoring its position as a leader in leveraging technological innovation to shape the future of education. This corporate update aims to provide its stakeholders with a detailed overview of its recent achievements, strategic decisions and the direction it is headed as it continues to build on our success and drive value for our shareholders and partners.

Securing a future: from validation to revenue generation

The recent acquisition of a significant contract in India for its AI-driven (artificial intelligence) education platform marks a watershed moment for Deepspatial AI. This contract, initially valued at $200,000, is not merely a revenue stream; it represents a strategic entry into a market with immense potential for scale and impact. The engagement, which is expected to extend into a multiyear collaboration, showcases the company's ability to not only develop innovative technology but also to effectively commercialize it in competitive and complex markets.

This contract win followed an intensive selection process, demonstrating its solution's superiority in both technical and commercial aspects. Its platform's unique approach, integrating item response theory and novel multidisciplinary concepts, has been designed to revolutionize educational methodologies and improve learning outcomes significantly. This success is a tangible manifestation of its transition from a company focused on technological validation to one that generates significant revenue.

Building on this momentum, Deepspatial AI acknowledges the significance of its $1.5-million contract with a government body, awarded last year, for the deployment of its AI-driven solutions to enhance public sector operations. Detailed in its announcement here, this contract not only represents a notable revenue stream but also serves as a testament to its technology's capability to effectuate tangible improvements in government service delivery. This accomplishment emphasizes its strategic foray into public sector applications, expanding its reach and demonstrating the adaptability of its AI platform.

Pioneering Geo-AI analytics for transformative insights

Deepspatial AI's Geo-AI analytics platform represents a cutting-edge blend of geospatial analysis and artificial intelligence, designed to uncover hidden insights across various scales -- from state-wide to global levels. The platform is built on a robust inference engine capable of processing diverse data sets across key sectors such as education, agriculture, and food and civil supplies.

Key features and value proposition:

• Inference engine: At the heart of the platform, the inference engine is designed to share hidden insights by analyzing geospatial data. This enables state-wide, country-wide, and global inferencing capabilities.
• Sector-specific insights: Initially focusing on education, agriculture and enterprise-specific segments, the platform leverages state datasets to deliver tailored insights.
• Scalable insights: As the company integrates more data, the platform's value grows, offering deeper insights. This scalability allows for more accurate modeling and inferencing as its customer base expands across state governments and enterprises.
• Customizable subscription services: The company's business model includes segment-specific subscriptions such as Eduverse for education, AgriVerse for agriculture, and Fitverse for health and fitness, among others. This approach allows for targeted solutions that meet the unique needs of our clients.

Deepspatial AI is committed to advancing how data-driven decisions are made, harnessing the power of Geo-AI to transform insights into actionable strategies for governments and enterprises worldwide.

Beyond validation: real-world impact and expansion

The peer-reviewed publication in collaboration with senior government officials from the education department has been a critical element of its technological validation phase. This publication not only endorsed the scientific basis of its AI/ML models but also validated their practical utility in enhancing education quality and coverage. This endorsement has been pivotal in securing the trust of its clients and partners, serving as a solid foundation for its current and future contract wins.

The company's ambitions and capabilities extend beyond the Indian market. The positioning of its educational platform in Uzbekistan, through strategic partnerships with entities like Amtrak, signifies its intent to replicate our success on a global scale. These efforts underscore our platform's adaptability and relevance across diverse educational and regulatory landscapes, highlighting the universal appeal of our innovative solutions.

Deepspatial AI is proud to share a pivotal update in our corporate journey, marking our successful transition from an intensive phase of technological validation into a revenue-generating entity within the transformative education sector. A key highlight of its recent achievements includes the validation of its cutting-edge AI technology through a peer-reviewed publication, a collaboration with senior government officials in the education department, accessible on-line. This endorsement, featured in a high-profile journal, attests to the efficacy and innovation of its AI-driven solutions in addressing critical needs in education globally. As the company moves forward, this corporate update aims to detail its strategic financial planning, significant market penetration achievements and its future direction, underscoring its commitment to leading technological innovation in education and creating lasting value for our stakeholders.

Looking ahead: strategic focus and growth opportunities

As the company moves forward, Deepspatial AI is poised to capitalize on the significant opportunities that lie ahead. Its focus remains on expanding its footprint in existing markets, penetrating new geographies and continuously enhancing its technology to stay at the forefront of the AI-driven revolution. The transition to a revenue-generating phase marks the beginning of a new chapter for us, one where its validated technology meets the vast market potential, driving sustainable growth and impact.

"We are at a pivotal juncture in Deepspatial AI's journey, transitioning from a period of intensive technology development and validation to seeing the tangible impact of our solutions in the market. The securing of significant government contracts and the initiation of revenue generation are not just milestones but a testament to the trust our clients place in our cutting-edge Geo-AI analytics platform. As we expand our sales pipeline across global government sectors in 2024, we remain committed to driving innovation and delivering value, marking the beginning of a new chapter in our mission to transform data into actionable insights," commented Dr. Rahul Kushwah, chief executive officer of Deepspatial AI.

Strengthening financial foundation

The company's financial strategy has been a cornerstone of its growth. In the recent past, through convertible debenture financing rounds completed in October, 2022, and March, 2023, it successfully raised $675,250. This was not merely a financial exercise but a strategic maneuver to engage its investor base deeply with its long-term vision. The conversion of debentures to units by a majority of holders, involving principal amounts totalling $482,000, is a testament to their faith in the company's vision and execution capabilities. This conversion strengthens our balance sheet and underscores the confidence investors have in the company's future.

Appointment of David Yu as independent director

The company has appointed David Yu as an independent director to our board. Mr. Yu brings a wealth of experience and a proven record of success in the technology and business sectors. His previous roles as chief executive officer showcases his exceptional leadership and strategic vision, vital in navigating companies through growth and innovation. His background is further enriched by a bachelor's degree in electronic engineering and extensive experience in IT (information technology) support and engineering. Mr. Yu's diverse expertise and leadership qualities are invaluable assets to Deepspatial AI as the company continues to advance its technological capabilities and expand its market presence.

Deepspatial AI is issuing 530,000 common shares at five cents each to a consultant, in acknowledgment of the consultant's pivotal services. This move highlights its strategy to integrate external expertise for enhancing its operations and market expansion.

About Deepspatial Inc.

Deepspatial is an outcome based artificial intelligence company, enabling organizations to enhance their decision-making capabilities by leveraging the power of data and AI. From finding the most efficient supply chain routes to knowing where to develop next, Deepspatial's AI-driven platform enables its clients to visualize what is going on, predict what is coming, analyze data and optimize processes to make smarter decisions for a better future.

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