Flexiroam Limited provided clarification in relation to its announcement of 17 February 2022 entitled "Flexiroam signs first maritime communications enterprise data agreement" regarding the execution of an agreement to provide connectivity to NearshoreNetworks Inc. (NEARSHORE). The announcement stated that: The agreement will significantly contribute to the Company's growing recurring revenue stream as data commitments are rolled out and is expected to add substantial value over its 3-year term." [emphasis added]. This statement was intended to note the fact that revenue from the agreement was recurring in nature and is expected to continue for a 3-year period.

The majority of the Company's historical revenue sources have not been in the form of recurring revenue. The Company notes that the revenue from the agreement at the minimum annual commitment volume may not have a material impact on the overall revenue on a standalone basis, and does not consider it appropriate to provide an estimate of potential revenue at this time due to the variable price of data, dependent on geographic location and the operator network. The Company considers that the agreement is material primarily because it represents an inroad for the supply of data and connectivity solutions to the maritime industry.