Baghdad safe city deal - material uncertainty

• Deployment of $1.7m Baghdad Safe City project delayed
• Initial downpayment not received from partner HTE Electronics
• Project implementation risks due to broader ecosystem dynamics

Icetana Ltd, a company building artificial intelligence video analytics software, provides an update on the $1.7 million Safe City project in Baghdad, Iraq. The deployment of the project has been delayed by the end user, and the initial downpayment of 20% due by 30 April 2025 has not been received by Icetana. The company does not have an existing trading relationship with the partner, HTE Electronics Trading LLC, and there is no payment history to rely on in assessing the trade credit risk. Icetana has attempted to engage with HTE Electronics to seek clarification and confirm a revised deployment schedule, but has yet to receive a response. From discussions with the end user, Icetana understands that project delays have been caused by incomplete infrastructure works outside the control of the end user, and the government will not release funding to HTE Electronics until specific infrastructure and proof-of-concept milestones are met, currently targeted for October 2025. While Icetana remains included in the project scope, project implementation risks remain due to broader ecosystem dynamics. Based on the above, there is material uncertainty regarding both the timing and the ultimate realisation of revenue from the Safe City project. Icetana continues to engage with relevant stakeholders to protect its position and will provide further updates as appropriate.