Mr. Jason Dussault reports

INTELLISTAKE REPORTS NANOAI DETECTS A DIFFERENT EXPLOSIVE WITHOUT CHANGING HARDWARE, ADVANCING TOWARD SENSORS THAT CAN BE UPDATED IN THE FIELD

NanoAi Technologies, the subject of Intellistake Technologies Corp.'s proposed acquisition, has completed planned laboratory testing against a second explosive compound at standoff distance using the same sensor previously tested against Threat 001. Testing of a third explosive is under way. The results are advancing NanoAi's threat fingerprint library, which the companies envision as a foundation for remotely changing what deployed sensors can detect as operational priorities evolve.

Highlights:

• Second explosive confirmed at standoff: NanoAi completed planned laboratory testing of Threat 002, a different explosive from Threat 001, using the same sensor without physical contact.
• Threat fingerprint library expanding: Threats 001 and 002 form the first two entries in NanoAi's developing library of recognizable threats; testing of a third explosive is under way.
• Proposed -- future cloud-based reconfiguration: NanoAi's road map aims to allow compatible sensors already deployed in the field to receive updated detection profiles for library-supported threats, potentially adding or changing detection targets without replacing hardware.
• Collaboration with global defence helmet leader Gentex Corp.: NanoAi is a licensed development collaborator within Gentex's Ops-Core Railink ecosystem and has begun hands-on work with the full Railink Power and Data Arc rail system.
• Market opportunity: Third party estimates value the explosive trace detection market at approximately $1.62-billion (U.S.) in 2025, projected to reach $2.88-billion (U.S.) by 2034; the CBRN (chemical, biological, radiological and nuclear) defence market at $21.55-billion (U.S.) in 2024, projected to reach $33.11-billion (U.S.) by 2033; and the soldier systems market at $12.2-billion (U.S.) in 2025, projected to reach $18.9-billion (U.S.) by 2034.
• Transaction: Upon completion of the proposed acquisition, NanoAi would become a wholly owned subsidiary of Intellistake. Completion remains subject to the conditions described in the company's Aug. 4, 2026, news release.

Two explosives, one sensor -- a library taking shape

NanoAi is developing a library of distinct signatures, or fingerprints, of threats identified by its sensing technology. Threats 001 and 002 are the first two entries; Threat 003 is under test. As additional compounds are characterized and validated, the library is intended to expand the range of threats that compatible sensors could be configured to identify.

Rather than being limited to the detection target configured at deployment, a future sensor could potentially be adapted to another library-supported threat. The laboratory detections reported to date support work on the fingerprint library.

Changing detection targets without changing equipment

Consider an operator wearing a sensor configured to detect one explosive. If intelligence identifies another threat already represented by a validated fingerprint in NanoAi's library, the development road map envisions sending an authorized detection-profile update through the cloud so the same compatible sensor could look for the new threat instead of, or potentially alongside, the original. The goal is to adapt to changing mission requirements without returning the hardware for replacement.

What the laboratory tests have shown

On Oct. 22, 2026, Intellistake reported that NanoAi has completed more than 2,000 successful standoff tests of Threat 001, including an on-camera detection at 10 feet in 0.80 second. NanoAi has since completed planned laboratory testing of Threat 002, a different explosive, which the same sensor detected at standoff without physical contact under the reported comparable test conditions.

The progress is the ability to identify two distinct compounds with the same sensing hardware in laboratory conditions, not evidence of an already field-ready or remotely reprogrammable device.

The first on-camera detection of Threat 001 can be viewed on-line.

Threat 003 now in testing

Testing of Targeted Explosive Threat 003 is under way at NanoAi's Dallas-Richardson op centre. If successfully characterized and validated, its signature is intended to become another entry in the growing library.

Detection without contact

Conventional field-screening approaches can require collecting a sample or approaching a suspected object. NanoAi's technology is being developed to identify selected threats at standoff without direct contact, which, if validated in operational environments, could help reduce an operator's need to approach a potential hazard during initial screening.

Collaboration with global defence helmet leader Gentex

Defence is NanoAi's primary target market, with potential applications in law enforcement, border security and critical infrastructure. Its intended deployment formats include wearable and helmet-mounted systems, drones, robots, vehicles and fixed installations. Explosives are the first threat category being tested.

NanoAi is a licensed development collaborator in Gentex's Ops-Core Railink ecosystem and has taken possession of the full Railink system for hands-on development.

Over the coming months, NanoAi will be working directly alongside Gentex's engineering team to integrate its sensing technology into the Railink platform. NanoAi's technology is in active development and has not yet been commercially deployed.

NanoAi builds the sensor; Intellistake can build what connects it

NanoAi is developing the sensing hardware and recording the identifying threats found during laboratory testing. Intellistake's software and data infrastructure capabilities could be used to organize and maintain that fingerprint library, control which detection profiles are authorized for use and deliver validated updates to compatible devices. Those functions are development objectives, not features that have been demonstrated in the field.

That is the logic behind the proposed acquisition: NanoAi supplies the detector and the growing body of threat data; Intellistake could develop the software systems needed to manage those capabilities across deployed equipment. If successful, customers could adapt supported sensors as their requirements change instead of relying solely on the configuration selected when the device was issued.

Over time, a managed fingerprint library and secure software updates could support continuing customer relationships, including potential licensing, maintenance or update services.

The related military edge computing market was estimated at $2.66-billion (U.S.) in 2024 and is projected to reach $13.51-billion (U.S.) by 2035. These figures are industry estimates and do not represent a forecast of company revenue.

"NanoAi has demonstrated something tangible: the same sensor detecting two different explosives at standoff," said Jason Dussault, chief executive officer of Intellistake. "Our opportunity is to help build the software and data infrastructure around that sensor. A growing fingerprint library, delivered securely to compatible devices, could allow operators to adapt detection priorities without changing equipment. That is how we see an impressive sensing technology developing into a broader platform."

"We have completed planned laboratory testing of a second explosive and moved directly to a third," said Craig Micklich, founder, chairman and chief executive officer of NanoAi Technologies. "Each validated fingerprint expands what our technology may eventually be configured to recognize. Our goal is straightforward: If an operator faces a different threat that is already in the library, we want the sensor to be able to adapt without swapping the device. Building and validating that capability is the next part of the work."

Market context

Third-party estimates put the explosive trace detection market at $1.62-billion (U.S.) in 2025, projected to reach $2.88-billion (U.S.) by 2034; the CBRN defence market at $21.55-billion (U.S.) in 2024, reaching $33.11-billion (U.S.) by 2033; and the soldier systems market at $12.2-billion (U.S.) in 2025, reaching $18.9-billion (U.S.) by 2034. The categories overlap and are presented for context only, not as an addressable-market calculation or forecast of Intellistake or NanoAi revenue.

Transaction status

The proposed acquisition of NanoAi was announced on Aug. 4, 2026. Upon completion, NanoAi would become a wholly owned subsidiary of Intellistake while continuing to hold its existing licence and development relationship with Gentex. Completion remains subject to the conditions described in the company's Aug. 4, 2026, news release, and there can be no assurance that the transaction will be completed on the terms currently contemplated, or at all.

About NanoAi Technologies

NanoAi Technologies is a defence technology company developing a proprietary standoff sensing platform capable of detecting explosives, ammunition and narcotics across wearable, drone, robotic, vehicle and fixed-mount deployments. Combined with artificial intelligence, swarming capabilities and real-time geolocation, each sensor delivers results simultaneously to operators in the field and the task force.

About Intellistake Technologies Corp.

Intellistake Technologies is an AI (artificial intelligence) infrastructure and technology company developing AI agents, enterprise software and data infrastructure designed to turn real-world information into actionable intelligence. The proposed acquisition of NanoAi is intended to expand the company's technology platform into AI-enabled defence, advanced sensing, autonomous systems and connected soldier technology.

We seek Safe Harbor.