Edge Total Intelligence Announces Debt Modification, Impairment of Intangibles and Goodwill, and Austal Business Update

Arlington, Virginia--(Newsfile Corp. - October 2, 2026) - Edge Total Intelligence Inc. (TSXV: CTRL) (OTCQB: UNFYF) ("edgeTI" or the "Company") announces the restructuring of certain debt obligations, an impairment of intangible assets and goodwill to be applied to its Q2 2026 financial statements, and an update on project work with Austal Limited ("Austal"). All amounts are in U.S. dollars unless otherwise indicated.

Debt Modification

Subject to the approval of the TSX Venture Exchange (the "Exchange"), the Company has extended and restructured its debt and warrant held by Salem Investment Partners IV, Limited Partnership ("Salem") and three promissory notes held by related parties. The amendments defer approximately $2.9 million in debt payments that were due on September 30, 2026, and October 30, 2026 as set forth below.

Under the amended terms:

1. Salem debt. edgeTI made a payment today to Salem of $1,000,000 that reduced the principal to $989,442. Final payment of the debt is deferred to the earlier of a listing of the Company's shares on a U.S. stock exchange (the "US Listing") and February 15, 2027.
2. Salem warrant. The warrant repurchase option has been increased to $450,000 (a $100,000 increase) for purchase on or before February 15, 2027 and Salem as warrant holder has the option of settling the warrant in common shares at fair market value.
3. Related party promissory notes. The maturity date on three related party promissory notes in the approximate principal amount and accrued interest of $1.5 million as at September 30, 2026 are deferred to the earlier of the US Listing and June 30, 2027. Additional modifications:

a) reaffirmed the current conversion option and conversion price per share at previously stated pricing; 

b) indicated that the conversion share price is subject to proportional adjustment in the event of any recapitalization event; and

c) clarified the note will become convertible or payable, as applicable, on the earlier of the Uplisting or June 30, 2027.

The Salem debt and warrant and the related party notes have been reported in the Company's financial statements since inception. The deferral is expected to improve cashflow and extend the Company's working capital. The amendment to the Salem debt and warrant will be subject to Exchange approval.

MI 61-101 Disclosure

ConnertonA (James Barrett), Steven H. Owings and John Palmer are "related parties" of the Company, and further to the bullet above, the amendment to their promissory notes through the extension of the maturity dates (the "Notes Amendment") is a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Notes Amendment is exempt from the formal valuation requirement and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value as the fair market value of the notes held by related parties does not exceed 25% of the Company's market capitalization.

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