£1.1m Contract for AI Video Analytics in Iraq

By John Lee.

icetana Limited (ASX:ICE) has announced its first contract in Iraq, securing a US$1.09 million deal with HTE Electronics Trading LLC, the Dubai-based subsidiary of Al-Technologia Al-Alia Co. for General Trading Ltd (High Tech).

The company describes itself as, "a global SaaS software company providing video analytics technology designed to identify abnormal events and unexpected behaviour in real time for large-scale surveillance networks."

The agreement marks icetana AI's largest-ever order for its next-generation AI video analytics software, which will be deployed as part of the Baghdad Safe City project.

Following successful proof-of-concept testing in Iraq, the software demonstrated advanced capabilities, including facial and licence plate recognition (Arabic plates), fire and smoke detection, left luggage detection, unauthorised access alerts, trespass and loitering detection, people and vehicle counting, and irregular movement analysis.

Contract Overview:

• Total value: US$1,093,475 (~A$1,719,000)
• Breakdown: US$874,815 for a perpetual licence + US$218,660 for the first-year maintenance agreement
• Revenue impact: Adds ~A$344,000 to icetana AI's Annual Recurring Revenue (ARR)
• Payment schedule:
  • 20% downpayment by April 30, 2025
  • 60% on acceptance of key functionality
  • Final 20% within 60 days of full acceptance
• Deployment: Expected by May 2025
• Future revenue potential: Subject to customer renewal of the US$218,660 maintenance agreement

While icetana AI has an established presence in the Middle East, this deal represents its first sale in Iraq, unlocking potential expansion opportunities in the country's growing security and surveillance sector.

Full statement from icetana:

icetana Limited (ASX:ICE "icetana AI" or "the Company"), a company building artificial intelligence video analytics software to help security and IT teams manage large-scale surveillance networks, is pleased to announce that it has received an order for software to be provided to HTE Electronics Trading LLC, the Dubai-based subsidiary of Al-Technologia Al-Alia Co. For General Trading Ltd (High Tech), one of Iraq's most experienced information and network security firms.

The order comes after extensive proof-of-concept testing in Iraq, in which the software successfully demonstrated all the functionality required by the end user, including: facial recognition, licence plate recognition for Arabic plates, fire and smoke detection, left luggage detection, unauthorised access, trespass and loitering detection, people and vehicle counting, and irregular movement and unusual direction detections (people and vehicles).

As noted in the December 2024 Quarterly Report and in the Company's underwritten entitlement offer announcement dated 23 January 2025, this deal becomes icetana AI's largest order of its new generation product offering. The contract has an aggregate value of US$1,093,475 (~A$1,719,000). The end user for the software provided is the Baghdad Safe City project, and this initial contract forms part of a larger potential program of national deployments. While icetana AI is already a well-known and trusted provider in the Middle East region, this is the Company's first sale in Iraq. This country represents a large opportunity for additional growth for icetana AI.

The contract is priced on a perpetual licence basis (US$874,815), with the first year's maintenance agreement charged additionally (US$218,660), adding ~A$344,000 to the Company's annual recurring revenue (ARR). Should the customer choose to renew the service maintenance agreement after the first year, this will continue to be charged at US$218,660 per year.

Chief Executive Officer Kevin Brown said:

"We are delighted to welcome High-Tech as a new partner in the Iraq market. This initial sale is the largest value contract in icetana AI's listed history and represents a significant milestone for our company. It's an exciting time for icetana AI as our investments in the business bear fruit."

Material terms of commercial arrangements:

• The contractual arrangement disclosed in this announcement is between icetana AI and HTE Electronics Trading LLC, the Dubai-based subsidiary of Al-Technologia Al-Alia Co. For General Trading Ltd (High Tech).

• Licensing will begin once the software is implemented, which is anticipated to happen around May 2025.

• Payment terms require a 20% downpayment due by April 30th, 2025, followed by payment of 60% on customer acceptance of key functionality, with the final 20% payment due within 60 days of final acceptance. The Company does not have an existing trading relationship with this partner, and so there is no payment history to rely on in assessing the trade credit risk of the partner.

• The order is for a total contract value of US$1,093,475 (~A$1,719,000). Ongoing revenues beyond this initial period will be subject to customer renewal, with a maintenance agreement priced at US$218,660 (~A$344,000) per year. Going forward, it is therefore possible that no revenue over and above the initial order value materialises pursuant to this commercial arrangement.

(Source: icetana)