Edgefoundry Ends 'Quantum Red Mini' Quarantine Contract... Highlights Success in Global-Focused Business Restructuring

KOSDAQ-listed company Edgefoundry announced that it has successfully concluded its contract to supply quarantine thermal imaging cameras, which was signed during the COVID-19 pandemic, as of April 30. The company also stated that it has successfully shifted its infrared (IR) sensor business to focus on industrial applications and overseas markets.

In March 2022, the company signed a contract worth approximately 13.5 billion won with Hanwha Systems to supply 'Quantum Red Mini' devices. These products featured Edgefoundry's proprietary infrared sensors, which at the time were recognized as core components in kiosks and fever screening equipment.

However, as the world entered the endemic phase, demand for quarantine equipment plummeted, and the related market essentially contracted, fundamentally changing the business environment. This led to disruptions in supply plans, and after discussions, the two companies agreed to terminate the remaining contract as of April 30.

To date, around 10,000 units have been delivered under the contract, amounting to approximately 2.7 billion won. This represents a 20% fulfillment rate of the total contract, and the supply of the remaining 40,000 units (worth about 10.8 billion won) will be discontinued. According to Korea Exchange regulations, if the actual fulfillment amount is less than 50% of the initially disclosed contract and the contract is terminated, it may be considered a 'disclosure reversal.' This could result in the company being designated as an unfaithful disclosure entity and being subject to penalty points.

The company stated that the termination of this contract was an unavoidable decision due to external changes, namely the end of the pandemic. At the same time, it announced plans to transparently disclose these facts to the market and shareholders, and to address concerns through the results of its ongoing business diversification efforts.

Edgefoundry has established a new growth foundation by reducing its reliance on quarantine products and expanding its core IR sensor technology into the industrial and safety sectors. In particular, its QQQVGA-level infrared sensors are being utilized in preventive safety applications, such as MTaek's switchgear fire detection systems and AI healthcare, creating additional value.

Moreover, the company is rapidly expanding its previously domestic-focused sales structure into the global market. Earlier this year, Edgefoundry showcased its technological competitiveness at prominent exhibitions such as 'CES 2026' and 'ISC WEST 2026,' and is strengthening its next-generation technology collaboration framework through joint R&D with global partners. Based on these efforts, the company is accelerating the establishment of overseas supply chains and the exploration of new markets.

A representative from Edgefoundry emphasized, "This contract termination only marks the end of production for temperature measurement camera products due to the disappearance of pandemic-driven demand. There is no change in our partnership with Hanwha Systems, our major shareholder and partner."

This content was produced with the assistance of AI translation services.