Edge Total Intelligence Inc. announced that it has amended its line of credit facility with Lotus Domaine III, L.P. (“Lotus”), an investment fund which is also a significant shareholder of the Company. Likewise, the Company's promissory note (the "Salem Promissory Note") with Salem Investment Partners IV, Limited Partnership (“Salem”) has been partially repaid and amended. Further, convertible promissory notes with certain management and directors of the Company (the "Related Party Notes") have also been amended.

The Company's line of credit facility (the "Credit Facility"), that was entered into on June 1, 2022 had a maturity date of May 31, 2025, and bore interest at an annual rate of 5%. Subsequent to June 1, 2022, the amount of the loan was increased to $1.74 million of which the Company was fully drawn at December 31, 2022. The following amendments were made to the Credit Facility: Increase in the principal amount from $1.74 million to $5.1 million; Requirement to use $3.0 million partial repayment on the Company's Promissory Note'; Extension of the maturity date of the Credit Facility from May 31, 2025 to January 20, 2026; Increase in interest rate from 5% to 8% annual interest compounded monthly; The establishment of sales targets and provisions to appoint an operational manager; Additional monthly reporting requirements.

As required by the amended terms of the Credit Facility, the Company drew $3 million on the Credit Facility with Lotus and repaid $3 million on its $5.9 million Promissory Note with Salem. Partial Loan Repayment and Amended Promissory Note with Salem Investment Partners. The Salem Promissory Note was amended as follows: Reduction of interest rate from 12% to 6% per annum payable monthly; Extension of maturity date from June 30, 2023 to January 1, 2024; The warrant held by Salem that allows for Salem to purchase 7% of all issued and outstanding equity of the Company may be repurchased by the Company on or prior to January 1, 2024 for $300 thousand, provided the Company has repaid all principal and interest owing to Salem.

As a result of the partial loan repayment, the Salem Promissory Note has a principal amount owing near $3.0 million.