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Illiquidity-straddled tech nanocap Icetana (ASX:ICE) has jumped 22% on low volumes as the company delivers a package of AI recognition software to Iraq’s Baghdad city.
Part of the “Baghdad Safe City Project,” Icetana’s software can read Arabic licence plates, spot fires, reportedly detect suspicious movements of both people and vehicles, and, of course, facial recognition.
The contract receipt comes after “extensive” early-stage testing in Iraq; Icetana reported on Wednesday that end-users were satisfied all desirable capabilities had been met.
In AUD the contract is worth $1.7M on a “perpetual licence plus the first year’s maintenance agreement” – meaning the company gets a one-off payment of nearly A$2M and no more. (A Software-as-a-Service or SaaS contract would see recurring revenues.)
Maintenance, however, is recurring, costing some A$300,000 a year. Should the end-user elect to maintain it, anyway.
While turnover to get Icetana +22% higher wasn’t very much at all, all the same, at least a small pool of investor cash is taking an interest. Deployment is expected for Q4 of 2025.
Icetana partnered with Iraq’s High Tech Enterprise for this contract, a security-minded IT firm in the region with whom Icetana could see further contracts break out in a “potential” larger program, presumably expanding to Iraqi cities beyond Baghdad.
Notably, the logos of Huawei, Microsoft and HP are advertised on High Tech’s website. This wouldn’t be the first foray into AI CCTV capabilities for the ‘local government’ running Baghdad – China’s Huawei was participating in a “safe city solution” back in 2019 per Xinhua.
Icetana clarified on Wednesday there’s no guarantee of further revenues tied to this contract highlighted Wednesday.
“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,” CEO Kevin Brown said.
Icetana last traded at 2.2cps.
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DISCLAIMER: This article is not and is not intended to be interpreted as financial advice.
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