Letter Shareholders

Building on a series of positive developments in the fourth quarter of 2025, we enter the new year well positioned to generate meaningful momentum in 2026 and beyond.

An important driver of this momentum has been our progress with the Transportation Security Administration (TSA). In August 2025, we delivered our first High-Definition Advanced Imaging Technology (HDAIT) upgrade kit to the TSA for evaluation and testing at the Transportation Security Laboratory (TSL). This upgrade was funded by the TSA as part of its initiative to enhance aviation security infrastructure by improving system capabilities and extending the operational life of currently deployed body scanners. Following delivery, the TSA exercised a contract modification enabling us to pursue the required certifications for future field deployment, reflecting continued government support for advancing next-generation passenger screening technologies.

In November 2025, the Department of Homeland Security announced a nationwide TSA modernization initiative representing one of the most significant investments in aviation security technology in more than a decade. This initiative demonstrates the growing need to update aging screening infrastructure with advanced, high-throughput solutions that enhance both security effectiveness and passenger experience. We believe this development validates the direction of our technology roadmap and highlights the relevance of our HDAIT upgrade kit and HEXWAVE™ system within a large and evolving addressable market.

We view TSA’s modernization efforts as a meaningful long-term monetization opportunity for our technology portfolio. The TSA has identified the need to modernize existing systems while managing costs and operational disruption, and our HDAIT upgrade kit is designed to support these objectives by enhancing imaging performance on currently deployed platforms without requiring full system replacement.

Building on this momentum, we continued to expand commercial adoption of our HEXWAVE™ system across a range of use cases. During the quarter, we announced multiple HEXWAVE sales and deployments, including employee screening at JFK’s New Terminal One, visitor screening at a major U.S. state capitol, deployments within correctional facilities, and further international expansion with a delivery to Bogotá, Colombia. These deployments demonstrate increasing demand for effective, contactless, high-throughput screening solutions and reflect growing acceptance of our technology across diverse customer segments and geographies.

We also strengthened our strategic position through key partnerships, including an agreement with Noble IQ to provide installation, training, and field support services for HEXWAVE. In addition, we were accepted into the NVIDIA Connect Program, supporting the continued advancement of our artificial intelligence and machine-learning capabilities and reinforcing our commitment to technological leadership.

We are grateful for the continued support of our shareholders, highlighted by the successful completion of a $2.6 million LIFE financing to support our current working capital requirements. As we look ahead to scaling the business, we announced plans to conduct an initial public offering of our common shares in the United States. The purpose of the offering is to capitalize on our commercial momentum and increase our visibility by listing on a U.S. stock exchange. The offering is subject to market and other conditions and the completion of the U.S. Securities and Exchange Commission review process.

In connection with the proposed offering, we are seeking shareholder approval to effect a consolidation of our outstanding common shares. The specific consolidation ratio is currently under evaluation and the ratio will be determined prior to the offering and subject to the share price on the TSX.V. The objective would be to support a higher post-consolidation share price aligned with U.S. stock exchange listing requirements, improving market visibility, liquidity, and institutional accessibility.

With a committed employee base and a strong management team, we are excited about the opportunities ahead in 2026. We sincerely appreciate the continued support of our shareholders as we work to deliver next-generation security screening solutions to the global marketplace.

Sincerely,

Bill Frain, CEO