Micro-X Ltd. announced that its US subsidiary, Micro-X Inc. has been awarded an extension on its development contract with the US Department of Homeland Security (DHS) Science and Technology Directorate for the Miniature Baggage Scanner (the DHS Scanner Contract) and that DHS has exercised the existing contractual option to continue the Passenger Self-Screening Checkpoint design into a detailed prototype design phase. DHS contract extension to add a second Micro-X prototype Miniature CT Baggage Scanner Delivery of an additional prototype in early 2023 for additional USD 0.44 million contract payment on top of the existing USD 1.57 million contract. Second functioning prototype used by DHS to accelerate testing and data collection of Baggage Scanner Data collection will provide key input in development of automated detection algorithms. DHS formally exercises option for second phase of Self-Screening Checkpoint design û USD 1.18 million to Micro-X Inc. for work to be delivered over 8 months starting September 30, 2022 Micro-X Inc. has this week signed a contract extension with the US Department of Homeland Security (DHS), Science and Technology Directorate as part of its miniaturised Computed Tomography (CT) baggage scanner development work.

This extension for an additional USD 0.44 million is for the delivery of a second functioning prototype in early 2023, while the DHS is undertaking testing of the first prototype. The additional prototype brings the combined total of two DHS contracts for Miniature Baggage Scanners and a Passenger Self-Screening Checkpoint to USD 4.5 million. The two Miniature Baggage Scanner prototypes will be constructed to the same standard, with each being tested for their ability to detect a potential threat, in a series of tests occurring in US government laboratories.

The exercise of this contract extension of an additional prototype followed the most recent of the regular project meetings between Micro-X management and key technical and operational representatives of the DHS. It is intended that two prototypes will enable faster and more thorough testing of the unique and disruptive Micro-X design. In July 2022, Micro-X Inc. and DHS formally executed the optional second phase of the Passenger Self-Screening Checkpoint contract, for work which includes the detailed design of a prototype self-screening module.

The original Self- Screening contract for USD 2.5 million was divided into an initial funded one-year concept design phase valued at USD 1.31 million and second optional unfunded phase of USD 1.18 million for an additional 8 months. DHS has now committed to funding the second phase. In this phase, Micro-X will continue to work with its existing subcontractors including Monash University, Elenium Automation, and Voxel Radar and will continue to work closely with DHS Transportation Security Administration (TSA) stakeholders.