ArchTIS (ASX: AR9) has secured a significant contract with a US/EU military alliance for its NC Protect software, alongside progress in its US Department of Defense deployment and an expanded A$8 million banking facility.
NC Protect has been selected to safeguard data for a US/EU military alliance across transatlantic defence operations.
The initial contract is valued at approximately A$416,000. This agreement holds a total potential value of around A$1.22 million over subsequent optional years.
The first year's components include approximately A$244,000 for licensing and A$170,000 for configuration and support.
The award is cancellable for convenience, with payment due for completed and accepted work.
US DoD Deployment Progress Continues
ArchTIS is also continuing to make progress on its US Department of Defense (DoD) deployment.
The NC Protect software is supporting Zero Trust mandate targets and broadening the company's defence footprint within this critical market.
This follows previous announcements regarding NC Protect's deployment in the US DoD365 production environment and the renewal of 1,000 licences for production use.
Sustained Defense Traction and Funding
This new contract reinforces ArchTIS's sustained traction in the defence markets, building on previous agreements with the Australian Department of Defence and Northrop Grumman.
The company's NC Protect software provides Attribute Based Access Control (ABAC) policy enforcement for SharePoint, a key capability in secure data sharing environments.
The increased banking facility provides greater financial flexibility for the company's US expansion, addressing prior investor discussions regarding near-term cash burn.
ArchTIS's strategic focus on licensing revenue, which made up 78% of total revenue in the December 2025 quarter, coupled with a gross margin of 75%, supports its growth strategy.
Banking Facility Significantly Increased
The company has increased its banking facility with the Commonwealth Bank of Australia (ASX: CBA) to a total value of approximately A$8,000,000.
This expanded facility is intended to fund working capital, product investment, and contract execution.
This builds on previous efforts to bolster financial flexibility, including a term sheet for an up to A$8 million senior secured debt facility announced in January 2026.
The substantial increase in its banking facility provides robust financial backing, enhancing its capacity for growth and execution.
