ACSL Ltd. (ACSL) announced that Board of Directors has resolved at a meeting on March 14, 2024 to enter into a commitment line agreement as described. As reported in the October 20, 2023, ACSL has been selected as a project sponsor for the "Small Business Innovation Research Program" under the second supplementary budget for fiscal year 2004 of the Ministry of Economy, Trade and Industry, and will promote the "Performance Improvement and Social Implementation of Small Aerial Photography Drones to Meet Government Needs" project (the Project). Through the Project, ACSL aims to improve the flight performance of Japan's small aerial photography drones to the top class in the market, and to develop drone airframes and peripheral systems that ensure safety and security, including economic security and cyber security.

In addition, ACSL will work closely with end- users to meet the needs of government agencies, etc., while pursuing ease-of-use that can be introduced into actual operations such as infrastructure inspections and disaster response, aiming to accelerate the implementation of drones in society. ACSL plans to receive up to JPY 2,599 million in subsidies for the Project by the fiscal year ending December 31, 2026, but until the subsidies are received, it will be necessary for ACSL to use its own funds to pay for the project expenses. The purpose of the Agreement is to secure the necessary working capital for the business and future growth of the business, to further strengthen the financial base, and to ensure the reliable execution of the business and to secure opportunities for business expansion.

Outline of the Agreement: Recipient of contract: Resona Bank, Limited; Contract type: Relative Commitment Line Contracts; Maximum credit line: JPY 1 billion; Date of contract: March 25, 2024 (scheduled); Contract period: 7 months (Contract expiration date: October 31, 2024); Collateral: Unsecured and unguaranteed.