Trackwise Designs plc announced an update on progress under the Commercial Order for its UK EV OEM customer (the "EV OEM"). Contract Update On 30th March, the Company announced that it expected a delay in the manufacture and deliveries of the Parts to the EV OEM, whilst the EV OEM undertakes a redesign and validation of the Parts to meet their revised design requirements. The Change Control procedure within the Commercial Order has been initiated, including the impact upon the Parts price and production completion.

At this time the Company has yet to receive a formal response to the Change Control Note issued to the EV OEM on 19th April 2023. The Company's position is that the delay in Parts production completion and therefore the impact upon the Parts price, has been caused by the EV OEM and therefore is the liability of the EV OEM. The Company has advised the EV OEM that it is not discharging its obligation to conclude the CCN in good faith and, in line with the Commercial Order, the EV OEM has until 2nd June to remedy the breach.

The delay caused by the EV OEM Change means that the planned increase in working capital associated with start of production has now been delayed and therefore the Company's previously announced cash runway to the end of May 2023 is now extended at least to the end of June 2023.