Edge Total Intelligence Reports Second Quarter and First Half 2026 Results

First half revenue increased 211% to $3.6 million following acquisition of Australian defense operations while first half net loss increased 55% to $3.6 million when compared to same period last year.

Arlington, Virginia--(Newsfile Corp. - August 31, 2026) - Edge Total Intelligence Inc. (TSXV: CTRL) (OTCQB: UNFYF) (FSE: Q5I) ("edgeTI" or the "Company") today reported financial results for the three and six months ended June 30, 2026. All amounts are in United States dollars unless otherwise indicated.

Revenue for the second quarter was $1,961,464, an increase of 380% from $408,390 in the second quarter of 2025 and an increase of 16% from $1,685,848 in the first quarter of 2026. Revenue for the six months ended June 30, 2026 was $3,647,312, an increase of 211% from $1,172,612 in the corresponding period of 2025. Both figures exceed the top end of the preliminary, unaudited ranges the Company disclosed on August 17, 2026.

Although revenue growth was substantial, the Company continued to incur significant losses. Net loss for the six months ended June 30, 2026 was $3.6 million, an increase of 55% compared with $2.3 million in the prior-year period. The increase reflected higher operating costs associated with the acquisition, integration activities and expenditures related to the Company's preparation for a potential U.S. exchange listing.

Growth by segment in the period was driven primarily by the January 2026 acquisition of technology assets and related operations from Austal Limited ("Austal") , which contributed revenue of $1,002,771 in the quarter and $2,023,508 in the six-month period through the Company's Australian subsidiary. Revenue from the Company's U.S. operating segment grew 135% in the quarter to $958,694 and 38% in the six-month period to $1,623,804.

"Our first half reflects revenue growth and increased costs from the Australian operations acquired from Austal joined by continued growth in our U.S. business. At the same time, we continue to operate at a net loss and remain focused on improving our operating efficiency, integrating the acquired operations and strengthening our financial position. We are closely monitoring Australia's July 2, 2026 Defence Industry Development Strategy (DIDS) following recent government policy announcements and developments affecting the defense sector. At this stage, the Company cannot determine whether these developments will have any material impact on its business," said Jason Nichols, Chief Executive Officer of edgeTI.

Second Quarter 2026 Financial Highlights

Compared with the three months ended June 30, 2025 unless otherwise noted.

• Revenue of $1,961,464, up 380% from $408,390, and up 16% sequentially from $1,685,848 in Q1 2026.
• U.S. segment revenue of $958,694, up 135% from $408,390.
• Australian segment revenue of $1,002,771, with no comparative in the prior year.
• Subscription revenue increased $1,516,288.
• Gross Profit¹ increased to $1,288,125 from $189,923 for Q2 2026 and Q2 2025, increasing Gross Margin¹ percentage by 19 points.
• Total expenses including cost of sales of $3,461,763, up 63% from $2,128,469.
• Net loss and comprehensive loss of $1,613,794, compared with $1,631,213 - a decrease of 1%.

First Half 2026 Financial Highlights

Compared with the six months ended June 30, 2025 unless otherwise noted.

• Revenue of $3,647,312, up 211% from $1,172,612.
• U.S. segment revenue of $1,623,804, up 38% from $1,172,612; Australian segment revenue of $2,023,508.
• Total expenses including cost of sales of $6,393,013, up 63% from $3,919,509, of which operating expenses were $5,147,579, up 48% from $3,482,414.
• Net loss and comprehensive loss of $3,625,768, up 55% from $2,337,003.

Financial Position and Liquidity

• Finance costs increased $804,475, or 223%, primarily from interest and accretion on the convertible debentures issued in December 2025, which had no comparable impact in the prior-year period.
• Cash used in operating activities of $1,493,098. Cash provided by financing activities of $584,733, compared with $3,331,440 in the prior-year period, which included a January 2025 private placement.
• Warrant exercises of 1,554,710 warrants for gross proceeds of $709,895 (C$967,826).
• Cash of $5,844,924 as at June 30, 2026, down from $6,618,872 as at December 31, 2025.
• Total assets of $11,302,876 as at June 30, 2026, compared with $9,307,040 as at December 31, 2025, with the increase driven primarily by intangible assets acquired from Austal and receivables in the Australian subsidiary.
• Total liabilities of $13,822,601 as at June 30, 2026, compared with $11,855,893 as at December 31, 2025, with the increase driven primarily by deferred revenue, derivative liabilities, convertible debt and the liabilities of the newly consolidated Australian entity.
• Working capital of $843,895 as at June 30, 2026, down from $2,111,106 as at December 31, 2025.

Negative cash flows and immediate liabilities cast doubt on the Company's ability to continue as a going concern, as future operational or financing inflows remain uncertain. The Company is actively addressing these uncertainties through a combination of revenue growth initiatives, operating improvements and external financing; however, there can be no assurance that such efforts will be successful.

Operational Highlights

• Austal transaction closed and Australian operations established. On January 5, 2026, the Company completed the acquisition of certain technology assets and related operations of Austal, comprising aviation planning software, a branched Lifecycle Upkeep Sustainment Intelligence solution, a marine-focused enterprise asset management suite, other branched workflow and automation products and supporting intellectual property licenses. Consideration was 6,075,459 subordinate voting shares at a deemed price of $0.73 (C$1.00) per subordinate voting share, representing 9.9% of the issued and outstanding subordinate voting shares on a non-diluted basis. The Company incorporated EdgeTI AU Pty Ltd on January 6, 2026 to hold and operate the acquired assets, with certain key Austal personnel transitioning to the Company.
• Four defense contracts secured in the first half. The Australian subsidiary secured contracts of $1.24 million (A$1.75 million) in maritime acquisition program management in April; $828,000 (A$1.15 million) for Navy and Border Force programs covering acquisition data management, integrated logistics support digital maintenance baselines and on-vessel production validation; and $748,755 (A$1.05 million) including the Aviation Life-cycle Fleet Intelligence platform for the Royal Australian Air Force. In June, the Company was awarded $1.2 million in contracts with Austal USA supporting the Digital Secure Exchange for Additive Platform for the U.S. Navy.
• Commercial renewals. A three-year renewal valued at $229,000 with a managed health care insurer and a one-year renewal valued at $300,000 with North Wind Group, which is also an integration partner that resells and integrates edgeCore.
• Leadership transition. Jason Nichols was appointed Chief Executive Officer effective April 1, 2026. Jim Barrett, founder and previously Chief Executive Officer, was appointed Executive Chair effective the same date.
• Platform releases. edgeCore 5.1.1 was released on February 23, 2026, supported by three minor releases, 39 security updates, 21 community-driven enhancements and 14 new product data integrations. edgeCore Client Proxy 2.2.0 was released on March 13, 2026, adding integrations for Sage, Snowflake, Microsoft identity and access management, Microsoft SharePoint, Google Sheets and C3 AI.

The Company's Interim unaudited financial statements and management's discussion and analysis ("MD&A") are posted on SEDAR+ at https://sedarplus.ca.

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.

Website: https://ir.edgeti.com
LinkedIn: www.linkedin.com/company/edgeti
YouTube: www.youtube.com/user/edgetechnologies

For more information, please contact:
Nick Brigman, Analyst and Press Relations
Phone: 888-771-3343
Email: [email protected]

Cautionary Statements, Summary Information
Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and the MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and the MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and the MD&A on the other hand, the information in the Interim Financial Statements and the MD&A shall govern.

Non-GAAP Financial Measures
In this press release, the Company has used the following terms ("Non-GAAP Financial Measures") that are not defined by IFRS, but are used by management to evaluate the performance of the company and its business. These measures may also be used by investors, financial institutions and credit rating agencies to assess the Company's performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable IFRS financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See the disclosure under the heading "Non-IFRS Measures" in the MD&A for a discussion of such measures. The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:

• Gross Profit: Gross Profit is a non-IFRS financial measure and does not have a standardized meaning under IFRS. Accordingly, it may not be comparable to similarly titled measures presented by other issuers. The Company defines Gross Profit as revenue less cost of sales. Management uses Gross Profit (a method akin to U.S. GAAP), to assess the direct profitability of the Company's products and services and believes it provides investors with supplemental information regarding operating performance.
• Gross Margin: Gross Margin is a non-IFRS financial ratio and does not have a standardized meaning under IFRS. Accordingly, it may not be comparable to similarly titled measures presented by other issuers. The Company defines Gross Margin as Gross Profit divided by revenue, expressed as a percentage (a method akin to U.S. GAAP). Management uses Gross Margin to assess the efficiency of the Company's revenue-generating activities and believes it provides investors with supplemental information regarding operating performance.

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 includes, without limitation, statements regarding: the Company's growth strategy; the expected commercialization, packaging and phased release of its Integrated Capability Stack; anticipated market opportunities arising from the Austal asset acquisition; future revenue growth; the Company's ability to secure new customer contracts and renew existing contracts; the potential listing of the Company's securities on a U.S. national securities exchange and the anticipated benefits thereof; future acquisition opportunities; the Company's ability to obtain additional financing when required; the Company's ability to continue as a going concern; and management's expectations regarding future operating and financial performance. Forward-looking information can often be identified by words such as "expects," "intends," "anticipates," "believes," "plans," "may," "will" or similar expressions.

Forward-looking information is based on assumptions management considers reasonable as at the date hereof and is subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: continued customer demand for the Company's products and services; successful integration and performance of the acquired Austal assets and operations; availability of financing on acceptable terms; continued access to key personnel; the timing and outcomes of procurement processes; stability in government defense and public-sector spending; and general economic, market and industry conditions. Readers should not place undue reliance on forward-looking information, which speaks only as at the date hereof. Except as required by law, the Company undertakes no obligation to update or revise it. Additional risk factors are described in the Company's MD&A and other continuous disclosure filings available under the Company's profile on SEDAR+ at www.sedarplus.ca.

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.

¹ Gross Profit and Gross Margin are not financial measures recognized by International Financial Reporting Standards ("IFRS"), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. See "Cautionary Statements - Non-GAAP Financial Measures" for more information and definitions of each non-GAAP term used in this press release.

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