On this page of StockholderLetter.com we present the latest annual shareholder letter from ScanTech AI Systems Inc. — ticker symbol STAI. Reading current and past STAI letters to shareholders can bring important insights into the investment thesis.

 •  10/24/2025 Letter Continued (Full PDF)
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STAI Shareholder/Stockholder Letter Transcript:

2025 Annual CEO Letter to Stockholders
Dear Fellow Stockholders,
This will mark the first annual meeting of stockholders of ScanTech AI Systems Inc. (   ScanTech
AI   ) following our listing on Nasdaq in January 2025 (Nasdaq: STAI), a culmination of the years of
efforts spent in developing our technologies, and a reflection of the maturity of our mission.
Our purpose is clear: to protect global critical infrastructure by implementing artificial
intelligence through our advanced computed tomography (CT) imaging systems, and mission-specific
algorithms. Guided by this mission, we are establishing AI-powered security screening as the foundation
for safer airports, energy facilities, and government and municipal infrastructures worldwide.
Throughout 2025 and leading into 2026, ScanTech AI is steadily advancing in our milestones that
validate the strength of our technology and the discipline of our strategy:

Ontario Power Generation Contract: On track to deliver all SENTINEL   CT systems by yearend, positioning SENTINEL as the new benchmark for nuclear-sector security.

Virginia Department of Corrections Pilot: Delivered a SENTINEL CT system in October 2025 to
support development of a custom AI narcotics-detection algorithm, advancing our leadership in
correctional security analytics.

City of Atlanta Agreement: Executed a pilot contract supporting security modernization ahead of
the 2026 FIFA World Cup, demonstrating the adaptability of SENTINEL across civic
infrastructure.

Government Relations: Continued engagement with the Georgia Legislature and Representative
McCormick   s office, as well as other policymakers, to align our innovation, domestic
manufacturing, and security priorities with government initiatives.
Our progress has been driven by strong execution and a focus on measurable results. To date in 2025, we
have:

Significantly improved our balance sheet through elimination of vendor liabilities, helping to
improve stockholder value.

Formed several new strategic partnerships with distributors and integrators to expand market
reach and accelerate revenue generation.

Enhanced governance and leadership, including the appointment of one of the world   s top senior
security executives, Brad Buswell, as Chairman of the Board of Directors, and DeMeakey
Williams as Senior Vice President of Sales, Business Development, and Investor Relations.

Entered into a financing agreement for an equity line of credit of up to $50 million, subject to
certain conditions set forth in such agreement, with ARC Group International Ltd., which we
anticipate will support our capital needs and further reinforce investor confidence in our
compliance alignment and growth strategy.
ScanTech AI Systems, Inc.
| 1735 Enterprise Drive, Buford, Georgia 30518

    Page 2

October 24, 2025
Expanded AI and data-analytics capabilities through our partnership with Curie Technologies,
improving service scalability and system performance.
ScanTech AI   s accomplishments underscore our commitment to building a resilient, scalable
enterprise. We continue to work to address Nasdaq listing deficiencies with the objective of restoring full
compliance and strengthening the integrity of our capital structure. Successful resolution will, we believe,
unlock significant long-term value and reinforce confidence in our stock   s trajectory.
Looking ahead, our certification roadmap remains central to growth. We are progressing toward
ECAC certification in 2026, expanding SENTINEL   s market access across Europe, Latin America, and
Africa, and creating a more stable, predictable revenue model. In parallel, we are advancing TSA APSS
(Advanced Passenger Security Screening), TSA ACSTL (Air Cargo Screening Technology List), and
DHS Safety Act certifications, which will further enhance our credibility with federal clients and open
new pathways in aviation and government facility security.
At the core of our strategy is continuous innovation. Our R&D teams are developing nextgeneration AI analytics, adaptive threat-detection algorithms, and software enhancements that elevate
SENTINEL   s precision and user experience. Together with revised pricing and service models, these
innovations are designed to increase total gross margin (TGM) and build recurring revenue streams as we
work to scale globally.
Nuclear energy appears to be one of the fastest-growing verticals for security screening
technology. As regulatory focus intensifies on advanced screening technologies, we believe that
ScanTech AI is uniquely positioned to fill this market gap with our mission-specific CT systems tailored
to each facility   s operational risk profile.
As we enter 2026, our strategic priorities are clear: execution, certification, compliance, and
commercialization. Each milestone brings us closer to sustained profitability and durable stockholder
value creation. With a growing partner ecosystem and expanding recognition from both government and
private-sector clients, we believe that ScanTech AI is positioned to advance confidently into its next stage
of growth.
On behalf of our entire team, thank you for your continued trust and support. Together, we are
building a company defined by innovation, integrity, and impact, a company committed to delivering
lasting value for our stockholders while shaping the future of global security.
Sincerely
Dolan Falconer
Chief Executive Officer

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
This report to stockholders contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, as amended (the    Securities Act   ) and Section 21E of the Securities Exchange Act of 1934, as amended (the
   Exchange Act   ), which are subject to the    safe harbor    created by those sections, concerning our business, operations,
and financial performance and condition as well as our plans, objectives, and expectations for business operations and
financial performance and condition. Any statements contained herein that are not of historical facts may be deemed to be
forward-looking statements. You can identify these statements by words such as    anticipate,       assume,       believe,   
   could,       estimate,       expect,       feel,       intend,       may,       plan,       should,       will,       would,    and other similar expressions
that are predictions of or indicate future events and future trends, but the absence of these words does not mean that a
statement is not forward-looking. These forward-looking statements are based on current expectations, estimates,
forecasts, and projections about our business and the industry in which we operate and management   s beliefs and
assumptions and are not guarantees of future performance or development and involve known and unknown risks,
uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking
statements in this report to stockholders may turn out to be inaccurate. Factors that could materially affect our business
operations and financial performance and condition include, but are not limited to, those risks and uncertainties described
under    Item 1A - Risk Factors    in our Annual Report on Form 10-K for the year ended December 31, 2024 and any risk
factors disclosed in subsequent Quarterly Reports on Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking
statements. The forward-looking statements are based on information available to us as of the date of this report to
stockholders. Unless required by law, we do not intend to publicly update or revise any forward-looking statements to
reflect new information or future events or otherwise. You should, however, review the factors and risks we describe in
the reports we will file from time to time with the SEC after the date of this report to stockholders.
This report to stockholders may also contain market data related to our business and industry. These market data include
projections that are based on a number of assumptions. If these assumptions turn out to be incorrect, actual results may
differ from the projections based on these assumptions. As a result, our markets may not grow at the rates projected by
these data, or at all. The failure of these markets to grow at these projected rates may harm our business, results of
operations, financial condition, and the market price of our common stock.



 10/24/2025 Letter Continued (Full PDF)