Mr. Carlos Vicens reports

FCL-X ANNOUNCES FORWARD INTEGRATION STRATEGY WITH LAUNCH OF DEDICATED SERVICE ENTITY TO ACCELERATE COMMERCIAL PRODUCT IMPLEMENTATION

FCL-X Fire & Safety Inc. has expanded into the downstream services sector with the launch of a distinct operating business: FCL-X Fire Protection & Compliance Services.

• Strategic forward integration: establishes a dedicated downstream business focused on mandatory life-safety compliance, operating independently while remaining under the corporate oversight and brand umbrella of FCL-X Fire & Safety Inc.;
• Accelerating product sales and implementation: creates a direct, internal pipeline to drive installations of new fire suppression systems and commercial applications, bridging the gap between manufacturing and end-user implementation;
• Zero-CAC cross-selling engine: leverages the company's established commercial client directory to bundle life-safety services, driving institutional referral pipelines without additional customer acquisition costs (CAC);
• Potential for predictable, long-term revenue: strategically pivots toward a model driven by mandatory NFPA and OSHA inspection cycles, transforming transactional hardware sales into continuing, multiyear service agreements.

While FCL-X Fire & Safety continues to advance its core manufacturing and engineering operations, FCL-X Fire Protection & Safety Compliance Services is a separate commercial business designed to capture non-discretionary, continuing service revenue. Under the company's strategic management, this dedicated service entity allows FFS to diversify its business model, moving beyond its role as a developer of fire protection technology to become an end-to-end life cycle service provider.

"FCL-X Fire Protection & Compliance Services is led by veterans of the fire protection industry who have spent their careers in the field, inspecting, servicing and standing behind life-safety systems. That experience is what sets this division apart. Our customers rely on these systems when it matters most, and they deserve a service partner that knows the work inside and out."

Said Carlos Vicens, chief executive officer and director of FCL-X Fire & Safety:

For current and future investors, forming FCL-X Fire Protection & Compliance Services represents a significant expansion of the company's commercial horizon. The new entity not only captures high-margin service and compliance revenue but also acts as a direct sales and implementation channel for the broader portfolio of FCL-X technologies. By controlling the continuing customer experience through regular inspection cycles, FFS is positioned to drive new suppression system installations, upgrade existing customer facilities and dramatically expand market awareness of its proprietary products. Continuous, life cycle touchpoints across industrial, manufacturing, hospitality and commercial real estate sectors will also strengthen long-term brand awareness and customer retention. This integrated approach converts one-off transactions into deeply embedded, multiyear customer relationships that could potentially yield predictable monthly revenue.

Downstream compliance and non-discretionary market demand

The commercial fire protection market is experiencing significant, sustained growth. According to Fortune Business Insights, the global fire protection systems market is projected to grow from $82.5-billion (U.S.) in 2023 to over $134.3-billion (U.S.) by 2030, driven heavily by stringent regulatory mandates, routine inspection requirements and the rising cost of commercial property insurance.

Commercial, industrial, hospitality and municipal facilities face strict, mandated fire codes enforced by OSHA and the National Fire Protection Association (NFPA). These non-discretionary regulatory frameworks require certified inspection cycles, generating persistent demand for specialized compliance contractors. According to the NFPA, U.S. fire departments respond to an estimated 37,910 fires at industrial and manufacturing properties each year, causing over $1.2-billion in direct property damage and underscoring the critical need for routine suppression system maintenance.

FCL-X Fire Protection & Safety Compliance Services will directly target these core mandates, including:

• NFPA 10 & 101: annual and multiyear portable fire extinguisher inspections, hydrostatic testing, and emergency egress lighting maintenance;
• NFPA 96 & 17A: semi-annual kitchen hood suppression system inspections, fusible link life cycle management and specialized K-class service for the hospitality vertical;
• NFPA 33 & 17: paint spray booth and dry chemical suppression system testing for automotive, industrial finishing and advanced manufacturing plants.

"We built this division around people who have done the work for years. Our team knows the codes, the equipment, and the day-to-day realities facility managers face. That hands-on expertise means inspections done right, issues resolved quickly and one trusted partner for the full life of a customer's system," said Chad Carver, vice-president of sales and operations of FCL-X Fire & Safety.

The business is financially modelled to achieve a diversified revenue mix of annual service contracts (50 per cent), high-margin deficiency conversion (40 per cent) and life cycle system installations (10 per cent). Deployed on a modern digital field service architecture, the business establishes a formidable technology moat against incumbent providers while driving operational synergies across the FCL-X enterprise.

About FCL-X Fire & Safety Inc.

FCL-X Fire & Safety is a United States-based fire and safety technology company focused on protecting people, property and critical infrastructure from the growing risks associated with lithium-ion battery fires. The company's flagship proprietary innovation -- FCL-X -- is a non-hazardous, water-based lithium-ion battery fire extinguishing agent designed for applications spanning electric vehicles, industrial facilities, energy storage systems, first responders, transportation, waste management and other battery-intensive environments.

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