icetana AI (ASX:ICE) has secured a significant $1.7 million (US$1.1 million) purchase order from High Tech, an Iraq-based information and network security firm. The contract, for icetana AI’s software solution, marks the company’s largest order for its new generation product offering. The deployment is slated for Q4 FY25, and the software will be utilized in the Baghdad Safe City project, potentially leading to further national deployments.
The contract’s value is split between a perpetual license (US$874,815) and the first year’s maintenance agreement (US$218,660), which contributes approximately A$344,000 to the company’s annual recurring revenue (ARR). Renewal of the maintenance agreement will continue to generate US$218,660 annually. The software underwent extensive proof-of-concept testing in Iraq, demonstrating successful functionality, including facial and license plate recognition (Arabic plates), fire and smoke detection, left luggage detection, and unauthorized access detection.
CEO Kevin Brown expressed enthusiasm about the partnership with High Tech, highlighting the order as a significant milestone. Payment terms include a 20% down payment by April 30th, 2025, 60% upon customer acceptance of key functionality, and the final 20% within 60 days of final acceptance. While this is icetana AI’s first sale in Iraq, the company views the country as a substantial growth opportunity in the Middle East region. The company’s AI solution is currently used across 30+ clients, 75+ sites, and 16,000+ cameras and 15+ countries.
