Mr. Jim Barrett reports

EDGE TOTAL INTELLIGENCE INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS AND PROVIDES PRELIMINARY Q1 2026 OUTLOOK

Edge Total Intelligence Inc. (edgeTI) has released its audited financial results for the year ended Dec. 31, 2025, and provided an operational update, including early-stage revenue visibility for the first quarter of 2026.

Unless otherwise noted, all financial results are reported in U.S. dollars.

Highlights:

• Navigated significant headwinds: The company operated in a macro environment characterized by geopolitical uncertainty and delayed procurement cycles, particularly across government and defence sectors, contributing to a 28-per-cent decrease in revenue and a 50-per-cent increase in net loss for 2025 compared with the prior year.
• Focused execution: edgeTI raised approximately $12.86-million through equity financings and convertible debentures, enhancing liquidity and supporting operations throughout 2025 while continuing preparations for potential U.S. capital markets access. The company also entered into a strategic partnership with Austal Ltd. and completed the acquisition and licensing of key technologies on Jan. 5, 2026, aligning its portfolio with its strategy to expand into maritime and industrial markets.
• Early 2026 momentum: Following the establishment of its Australian business unit and recent contract awards in the United States and Australia, edgeTI expects these activities to contribute to Q1 2026 revenue in the range of $1.42-million to $1.66-million, representing an increase of 162 per cent to 206 per cent relative to the fourth quarter of 2025.

Full-year 2025 financial results:

• Revenue for the year ended Dec. 31, 2025, was $2.18-million, compared with $3.02-million in 2024, representing a 28-per-cent decrease, primarily driven by delayed customer renewals and extended procurement cycles in government and defence markets.
• Fourth quarter revenue was $541,742, a 23-per-cent decrease compared with Q4 2024 and sequential quarterly performance increased by 16 per cent due to new contracts -- reflecting early signs of stabilization.
• Total expenses for 2025 increased to $8.47-million, up 31 per cent year over year, reflecting continued investment in product development, capital markets initiatives and go-to-market expansion.
• Net loss for the year increased to $6.68-million, compared with $4.45-million in 2024.
• Cash and cash equivalents increased to $6.62-million at Dec. 31, 2025, compared with $780,000 at Dec. 31, 2024.

The company's financial position improved during the year, supported by multiple equity financings and a convertible debenture issuance. Total liabilities increased in connection with these financings, reflecting the company's strategy to strengthen liquidity and finance growth initiatives.

Operational update

During 2025, edgeTI operated in a macro environment characterized by geopolitical uncertainty and delayed procurement cycles, particularly across government and defence sectors. These factors contributed to reduced revenue and lower customer renewal activity during the year.

In the second half of 2025, the company began to observe early signs of stabilization as revenues increased by 15 per cent in Q3 and 16 per cent in Q4 in consecutive quarters from increased customer engagement and new contract activity in the fourth quarter.

Key operational developments included:

• Continued advancement of the edgeCore platform, including the release of version 5.0 with integrated AI (artificial intelligence) capabilities;
• Expanded participation in defence and industry events supporting pipeline development;
• Progress toward potential U.S. capital markets expansion.

Australian expansion and Austal transaction

In January, 2026, the company completed the acquisition of certain digital technology assets from Austal and established its Australian subsidiary to support expansion into maritime and aviation sectors.

Following this transaction, edgeTI secured three contract awards totalling approximately $2.8-million ($3.95-million (Australian)) that were outlined in the transaction agreements.

Notable awards:

• Approximately $1.24-million ($1.75-million (Australian)) supporting maritime acquisition and life-cycle management programs;
• Approximately $828,000 ($1.15-million (Australian)) supporting naval and border force initiatives, including logistics and production validation;
• Approximately $750,000 ($1.05-million (Australian)) supporting maritime- and aviation-related programs.

These contracts are expected to be delivered over multiple periods in 2026 and represent early-stage revenue contribution from the company's Australian operations transitioned from Austal.

Leadership transition

In April, 2026, edgeTI appointed Jason Nichols as chief executive officer. Mr. Nichols brings more than 20 years of experience in defence, intelligence and government services markets, with a focus on scaling operations and driving commercial growth. Founder James Barrett transitioned to executive chair.

Preliminary Q1 2026 outlook

Based on executed contracts, current delivery schedules and recent award activity, the company is providing preliminary, one-time guidance for the first quarter of 2026 as it prepares to report full results in May, 2026:

• Revenue is expected to be in the range of $1.42-million to $1.66-million, representing a projected increase relative to Q4 2025 of 162 per cent to 206 per cent.
• Cost of goods sold and operating expenses are expected to increase in connection with the establishment of Australian operations and its related program execution and delivery costs.

This outlook reflects contributions from recently awarded contracts; however, timing of revenue recognition may vary based on program execution, customer acceptance and delivery schedules.

Outlook and strategic priorities

For the remainder of 2026, management is focused on:

• Converting awarded contracts and pipeline opportunities into recognized revenue;
• Expanding its presence in maritime, defence and asset-intensive industries;
• Commercializing life-cycle sustainment and digital twin solutions associated with the Austal transaction;
• Scaling partner-led growth and international operations;
• Continuing to evaluate opportunities for a U.S. exchange listing.

While the company experienced reduced revenue and increased net loss in 2025, it exited the year with improved liquidity and expects to generate a material increase in revenue during 2026 through the acquisition of customer relationships associated with Austal and other contract-backed activity.

Audited financial statements and management discussion and analysis and associated filings and releases are available on SEDAR+ and OTC.

About Edge Total Intelligence Inc.

edgeTI empowers defence, service providers and enterprises to operate with real-time clarity in complex, mission-critical environments -- delivering integrated capability across the full life cycle of operations. With the inclusion of EdgeTI WA and an expanded portfolio of sovereign, defence-aligned technologies, combined with the edgeCore digital twin, edgeTI enables the orchestration of real-time actions and the achievement of targeted mission outcomes -- driving faster, more effective decision making across defence, industrial and life-cycle operations in continuously evolving environments.

We seek Safe Harbor.