Polish Satellites for Our Military. New Contract Terms Appear

On July 17, 2025, Creotech Instruments concluded Annex No. 1 to the contract with the State Treasury – Armaments Agency for the production and delivery of the Earth Observation Satellite System (EOS) "Mikroglob".

The contract was concluded in December 2024 and provides for the purchase of observation satellites for the Polish Army.

The subject of the annex just signed is, among other things, a change in the method of granting advance payments to Creotech Instruments by the Armaments Agency for the proper performance of the subject of the contract, to advance payments via an escrow account.

This change will allow the company to use the advance payments to finance some of the previously unincurred expenses related to the purchase of selected components, subassemblies and services in the project, up to a value of approximately PLN 101.54 million net.

Advance payments will be settled by deductions from invoices for deliveries during the project implementation.

"Combined with the funds obtained from the issue of series K shares conducted at the beginning of 2025, the above-mentioned advance payments should, in the opinion of the management board, ensure financing of the "Mikroglob" project throughout the entire duration of the agreement. Therefore, in the current situation, the company's management board does not see the need to use additional financing instruments for the project, in particular to conduct another issue of the company's shares in the future to finance the "Mikroglob" project," Creotech Instruments said.

As added, the change in the method of paying advances is associated with the company's cost , which was settled by changing the total contract value in the annex from PLN 452.5 million to PLN 451 million net, i.e. the contract value decreased by approximately 0.34%.

In the first quarter of 2025, Creotech Instruments' sales revenue amounted to PLN 22.3 million, compared to PLN 5.8 million in the same period of 2024. EBITDA amounted to PLN 4.5 million, and net profit to PLN 1.4 million.