Q2 2026 Mobilicom Ltd Earnings Call

August 13, 2026

Speaker #1: Greetings, and welcome to the Mobilcom Ltd. First half 2026 financial and operating results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Operator 2: Greetings and welcome to the Mobilicom Limited H1 2026 Financial and Operating Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Liad Gelfer, Director of Finance.

Operator: Greetings and welcome to the Mobilicom Limited H1 2026 Financial and Operating Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Liad Gelfer, Director of Finance.

Speaker #1: As a reminder, this conference call is being recorded. I would now like to turn the conference over to our Lead Gaffer, Director of Finance.

Speaker #2: Good afternoon, everyone. My name is Lead Gaffer, Mobilicom Director of Finance. Welcome to Mobilicom first half 2026 financials and operating results conference call. Joining me today is Ornel Kayam, Mobilicom's Founder and Chief Executive Officer.

Liad Gelfer: Good afternoon, everyone. My name is Liad Gelfer, Mobilicom Director of Finance. Welcome to Mobilicom H1 2026 Financial and Operating Results conference call. Joining me today is Oren Elkayam, Mobilicom's Founder and Chief Executive Officer. Earlier today, Mobilicom issued a press release announcing its financial results and business highlights for the six months ended 30 June 2026. A copy is available on the investor relations section of the company's website. Before we begin, please note that today's call includes forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as described in our SEC filings, including our most recent Form 20-F. This statement speaks only as of today, and we undertake no obligation to update them. We will also refer to non-IFRS measures reconciled to IFRS in today's press release.

Speaker #2: Earlier today, Mobilicom issued a press release announcing its financial results and business highlights for the six months ended June 30, 2026. A copy is available on the Investor Relations section of the company's website.

Speaker #2: Before we begin, please note that today's call includes forward-looking statements under the private securities litigation reform act of 1995. Actual results may differ materiality, as described in our set filing, including our most recent form 20F.

Speaker #2: These statements speak only as of today. And we undertake no obligation to update them. We will also refer to non-IFRS measures reconciled to IFRS in today's press release.

Speaker #2: Today's agenda includes: summary of the first half and a brief introduction to Mobilicom; financial highlights and our equity and cash position; first half achievements and design wins; progress against the 2026 outlook; our US defense market position; CEO closing statement; and we will close with Q&A session.

Liad Gelfer: Today's agenda includes summary of the H1 and a brief introduction to Mobilicom, financial highlights and our equity and cash position, H1 achievements and design wins, progress against the 2026 outlook, our US defense market position, CEO closing statement, and we will close with Q&A session. This webinar is being recorded and will be available for replay in ir.mobilicom.com. With that, I would like to turn the call over to Oren Elkayam, Founder and Chief Executive Officer. Oren, please go ahead.

Speaker #2: This webinar is being recorded and will be available for replay in IR Mobilicom dot com, with that I would like to turn the call over to Ornel Kayam, Founder and Chief Executive Officer.

Speaker #2: Oren? Please go ahead.

Speaker #3: Thank you very much, Lead, and good afternoon, everyone. It was a good quarter with continuous execution of our vision. We can share that we had about $1.2 million in revenue for the second quarter.

Oren Elkayam: Thank you very much, Liad, and good afternoon, everyone. It was a good quarter with continuous execution of our vision. We can share that we had about $1.2 million in revenue for the Q2. I would like to emphasize that 100% of our revenue this period were from off-the-shelf product sales to customers, all from enterprise, defense, mainly customers, and majority of that came from the US market. We maintain a very high growth margin with our hardware solution in addition to the software licensing. We maintain strong financial cash position with nearly $16 million cash in hand, which is adjusted numbers. We launched two products in the period, the SkyHopper MultiBand and the SkyHopper Tactical, and won two new design wins based on those products.

Speaker #3: I would like to emphasize that 100% of our revenue this period was from off-the-shelf product sales to customers—all from enterprise, mainly defense customers—and the majority of that came from the US market.

Speaker #3: We maintain a very high gross margin with our hardware solution, in addition to the software licensing. We maintain a strong financial cash position with nearly $16 million cash in hand, which is adjusted numbers.

Speaker #3: We launched two products in the period: the Scarper Multiband and the Scarper Tactical, and won two new design wins based on those products. One of these is with the Israeli Tier 1 player in this market for a new short-to-mid-range, low-term munition platform, which we anticipate will have large volumes in the future.

Oren Elkayam: One of which is with an Israeli tier 1 player in this market for a new short to mid-range loitering munition platform, which we anticipate that will have large volumes in the future. Ongoing monthly delivery cadence continues with our US tier 1 customer for the US Department of Defense program of records, and we also have seen the regulation by FCC and others. We received FCC Trusted Drone exemption status for all of our products, cyber, software, and the hardware solution. I think that based on those achievements, I want to thank our leaders and employees worldwide for the execution behind these results and a special thanks to Yossi Segal, our Co-Founder, for his continuous innovation and technology leadership. For those joining us for the first time, the next two slides will give you some short overview of who is Mobilicom and company overview at a glance.

Speaker #3: Ongoing monthly delivery cadence continues with our US Tier 1 customer for the US Department of War program of record, and we also have seen the regulation by FCC and others we received FCC trusted drone exemption status for all of our products, cyber, software, and the hardware solution.

Speaker #3: So I think that based on those achievements, I want to thank our leaders and employees worldwide for the execution, behind these results, and a special thanks to the Office Sagal, our co-founder, for his continuous innovation and technology leadership.

Speaker #3: For those joining for us for the first time, the next two slides will give you some short overview of who is Mobilicom and company overview at a glance.

Speaker #3: So, in high-level terms, Mobilicom offers the essential IP-based, high-value cybersecurity software and hardware solution—or subsystem, you can call it—for drones, robotics, and autonomous systems and manufacturers.

Oren Elkayam: So in high-level terms, Mobilicom offers the essential IP-based high-value cybersecurity software and hardware solution or subsystem, you can call it, for drones, robotics, and autonomous systems and manufacturers. Those are proprietary solutions that are powering, connecting, securing, safeguarding the autonomous systems. Mobilicom is not doing the drone. Mobilicom is doing the guts, the important IP-based subsystem to drones, robotics, and autonomous systems. We can say that investment in Mobilicom and Mobilicom itself is in the convergence of three major trends that we see in the market today. One is drone, second is cybersecurity, and third is robotics autonomy, which position the company extremely well for the growth that is expected from those markets. In this slide, you can see Mobilicom has two essential two segments. One is hardened hardware. Hardened is, in this case, meaning secured, more challenging to hack.

Speaker #3: Those are proprietary solutions that are powering, connecting, securing, safeguarding the autonomous systems. Mobilicom is not doing the drone—Mobilicom is doing the guts, the important IP-based subsystem to drones, robotics, and autonomous systems.

Speaker #3: We can say that investment in Mobilicom and Mobilicom itself is in the convergence of three major trends that we see in the market today.

Speaker #3: One is drone; second is cybersecurity; and third is robotics autonomy, which positioned the company extremely well for the growth that is expected from those markets.

Speaker #3: In this slide, you can see Mobilicom has two essential segments. One is hardened hardware—hardened in this case meaning secured, more challenging to hack—and then a cybersecurity and software business.

Oren Elkayam: And then a cybersecurity and software business. Mobilicom hardware solutions were certified as US-approved products by the Department of Defense and the US agencies. We have the Blue UAS Select, as you can see on the logo below. We have the Trusted Cyber certification. We obtained the NDAA validation following testing, not with self-declaration, which is much more progress. We achieved the equipment frequency allocation for the Department of Defense under the DD-4094, and the newly released FCC Trusted Drone, a new regulation that was initiated this year to build and promise a US ecosystem for the future. Our business model is very vivid. We get first foot in the door with secured hardware, which yielding 50% to 60% gross margin, which is very fit for hardware. And then we cross-sell the cyber or software solution, which can get to up to 90% gross margin and has minimal competition today.

Speaker #3: Mobilicom hardware solution were certified as US approved products by the Department of War and the US agencies. We have the Blue OS Select as you can see on the logo below.

Speaker #3: We have the Trusted Cyber certification. We obtained the NDAA validation following testing, not with self-declaration, which is much more progress. We achieved the equipment frequency allocation for the Department of War under the DD 4094.

Speaker #3: And the newly released FCC trusted drone that was new regulation that was initiated this year, to build and promise a US ecosystem for the future.

Speaker #3: Our business model is very vivid. We get our first foot in the door with secured hardware, which yields 50 to 60 percent gross margin, which is very steep for hardware.

Speaker #3: And then we cross-sell the cyber or software solution which can get to up to 90 percent gross margin and has minimal competition today. Since we are already a hardware supplier to drones and autonomous platform, the platform maker can incorporate cybersecurity or software for Mobilicom without undergoing any new procurement cycle.

Oren Elkayam: Since we are already a hardware supplier to drones and autonomous platform, the platform maker can incorporate cybersecurity or software from Mobilicom without undergoing any new procurement cycle. Mobilicom in the cybersecurity for small size autonomous system is a leader in this market and well-positioned to the success that is built on the fact that new standards are required, and the change is coming in the coming quarters. The H1 of this year shows that the model is working in both directions, and the clearest example is the AI-enabled autonomous weapon system design win that we had recently, where we sold both hardware and software and were selected together from day one. I will come back to it at a later stage. I will now hand it over to Liad for the H1 financial highlights.

Speaker #3: Mobilicom, in the cybersecurity for small-size autonomous systems, is a leader in this market and well positioned for success. That is built on the fact that new standards are required, and change is coming in the coming quarters.

Speaker #3: The first half of this year shows that the model is working in both directions, and the clearest example is the AI-enabled autonomous weapon system design win that we had recently.

Speaker #3: Where we sold both hardware and software and were selected together from day one. And I will come back to it at a later stage.

Speaker #3: So, I will now hand it over to Lead for the first half financial highlights.

Speaker #2: Thank you, Oren. The detailed figures are on the slides and in today's release, so rather than just read them, let me give you the four things they tell us.

Liad Gelfer: Thank you, Oren. The detailed figures are on the slides and in today's release. Rather than just read them, let me give you the four things they tell us. First, the shape of the half. The majority of our revenues landed in the Q2. That is what the program moving to a monthly delivery looks like. During the quarter, we entered the monthly delivery cadence under the program of record, and we expect the cadence to continue through to the H2. Second, backlog. It is lower than the end of the Q1, precisely because it shipped under monthly delivery cadence. Backlog behave as fruit boot rather than a stock of waiting orders. Orders received since the H1 year end are already building it for the H2 fulfillment. Third, margins. Health with this band, our hardware model is built on.

Speaker #2: First, the shape of the house. The majority of the revenues lended in the second quarter that is what the program moving to a monthly delivery looks like.

Speaker #2: During the quarter, we entered the monthly delivery cadence under the program of record, and we expect the cadence to continue through the second half.

Speaker #2: Second, backlog. It is lower than the end of the first quarter precisely because it shifts under monthly delivery cadence. Backlog behaves as throughput rather than a stock of waiting orders.

Speaker #2: Orders received since the first half-year end are already buoying it for the second half of payment. Third, margins held within this band—our hardware model is built on it.

Speaker #2: Even as production volume stepped up, we are scaling without giving away the value of the IP. And fourth, the cost side. Our EBITDA loss works out to roughly half a million dollars a month, in line with our adjusted cash burn.

Liad Gelfer: Even as production volume stepped up, we are scaling without giving away the value of the IT. Fourth, the cost side. Our EBITDA loss works out to roughly half a million USD a month in line with our adjusted cash burn. The major difference between the two is the working capital we deliberately built for H2 deliveries. Both measures tell the same story, a controlled target investment in production readiness ahead of tier 1 volume. The at-risk net loss is a much larger figure, but the substantial majority of it is non-cash, share-based compensation, currency movement, and the warrant valuation. The full reconciliation was in today's release. Let's move to the equity and strong cash position slide. On the equity side, the capital structure on this slide is deliberately simple and everything is visible.

Speaker #2: The main difference between the two is the working capital, with the liberty built for second-half deliveries. Both measures tell the same story: a controlled target investment in production readiness ahead of Tier 1 volume.

Speaker #2: The average net loss is a much larger figure, but the substantial majority of it is non-cash, share discompensation, currency movement, and the warranty valuation.

Speaker #2: And the fully reconciliation was in today's release. Let's move to the equity and strong-cash position slide. On the equity side, the capital structure on this slide is the liberatorily simple, and everything is visible.

Speaker #2: One class of ordinary shares, a non-worn position, and no leverage of any kind—no debt, no facilities, no ATM program. Two points worth taking away.

Liad Gelfer: One class of ordinary shares, a non-warrant position, and no leverage of any kind, no debt, no facilities, no ATM program. Two points worth taking away. The cash that came in during the half arrived from holders exercising instruments they already have, not from any new issuance. The warrants still outstanding represent additional potential capital of $12.6 million already built into the structure sitting on the top of the cash we hold today totaling $28.5 million. Put together, the balance sheet give us a multi-year runway and the freedom to execute the H2 from strength. Back to you, Oren.

Speaker #2: The cash that came in during the half arrived from holders exercising instruments they already held, not from any new issuance. And the warrants still outstanding represent additional potential capital of 12.6 million, already built into the structure, sitting on the top of the cash we hold today, totaling 28.5 million.

Speaker #2: Put together, the balance sheet gives us a multi-year runway and the freedom to execute the second half from a position of strength. Back to you, Oren.

Speaker #3: Thank you, Lead. I think that we can see here the focus on six achievement that we are presenting. I will not review them one by one, but I would like to give you the my thought on where we should focus with those lights and achievements.

Oren Elkayam: Thank you, Liad. I think that we can see here the focus on six achievements that we are presenting. I will not review them one by one, but I would like to give you my thoughts on where we should focus with those slides and achievements. One is we expanded onto new platform through two different routes. The launcher and munition win came through the tier 1 relationship we already hold, a new platform category for us with the potential to scale alongside when the program advanced to mass production, which shows capability to have strong relationship with a customer, especially Tier 1. The success of first platform is yielding the expansion to a second platform, in this case, longer range, different mission. Mobilicom is working across the board with multi-platforms at the same Tier 1 manufacturer, and that's important execution for us.

Speaker #3: We expended one is we expended onto new platform through two different routes. The larger ammunition wing came through the tier one relationship we already hold.

Speaker #3: A new platform category for us with the potential to scale alongside when the program advanced to mass production. Which shows capability to have strong relationship with the customer, especially tier one, and then the success of first platform is yielding the expansion to a second platform.

Speaker #3: In this case, longer range, different mission, and then Mobilicom is working across the board with multi-platforms at the same tier-one manufacturer. And that's important execution for us.

Speaker #3: On the same point of expanding to new platforms, we have the AI-enabled autonomous system wing place four of our products, two software, which is the ICE, electronic warfare resistance solution, and the OS3 cybersecurity for autonomy.

Oren Elkayam: On the same point of expanding to new platforms, we have the AI-enabled autonomous system win, place four of our products. Two software, which is the ICE electronic warfare resistance solution and the OS3 cybersecurity for autonomy, and two hardware, the SkyHopper data link and the 10-inch Mobile Ground Control Station, all together. So one onto a single new program, spanning drone and ground robotics with the first order already delivered. That is a clear proof that we sell an integrated stack rather than components. An integrated stack means substantially more Mobilicom content, more value on every platform, and retention rate of the customer is the highest you can achieve. That's part of our unique position in the market, which is unmatched by any other player. Second point I would like to emphasize is the speed.

Speaker #3: And two hardware, the SCAR for data link and the 10-inch mobile ground controller. All together. So one onto a single new program spanning drone and ground robotics.

Speaker #3: With the first order already delivered, and that is a clear proof that we sell an integrated stack rather than components and integrated stacks means substantially more Mobilicom content, more value, on every platform.

Speaker #3: And the retention rate of the customer is the highest you can achieve. That's part of our unique position in the market, which is unmatched by any other player.

Speaker #3: The second point I would like to emphasize is the speed. We've seen the release of multi-band and the tactical hardware products as part of the SCARPER family.

Oren Elkayam: We have seen the release of SkyHopper MultiBand and the SkyHopper Tactical hardware products as part of the SkyHopper family, and we have done that in Q1. In this quarter, we showed that those design wins were converted to designs and initial orders in the same half of the year, fastest conversion we achieved so far. That shows that we can create a new innovation to maintain the gap or to progress with the market, and be converted to design wins and delivery for first implementation within customers. Third point that is worth emphasizing is the US engine kept compounding. Monthly delivery cadence under the United States Marine Corps program, through our partner advancing also on the Army LASSO validation phase, and our Trusted Cyber drone position secured with onshore plan execution. All of those are strengthening our US position for the future.

Speaker #3: And we've done that in Q1. In this quarter, we showed that those design wins were converted to initial orders and were converted to design with initial orders in the same half of the year, the fastest conversion we have achieved so far.

Speaker #3: And that shows that we can create new innovations to maintain the gap or to progress with the market. And then convert it to design wings and delivery for first implementation within customers.

Speaker #3: Third point that worth emphasizing is the US engine kept compounding. Monthly delivery cadence under the US Marine Corps program through our partner advancing also on the army lasso validation phase.

Speaker #3: And our trusted drone positions secured with onshore plan execution. So all of those are strengthening our US position for the future. At the initial order across the asset specific and UAE and India and the picture is consensed more platform, more content per platform and faster conversion from products and innovation to design wings to initial production and delivery to scalability in production.

Oren Elkayam: Add the initial order across the Asia-Pacific and UAE and India, and the picture is consistent. More platform, more content per platform, and faster conversion from products and innovation to design wins, to initial production and delivery, to scalability and production that we have with Tier 1. This slide is a brief reminder on the outlook framework we presented at the beginning of this year. The two next slides will show where we stand right now. In this slide, we are just reviewing again what was promised, and here is how we executed on this promise and how we progress in Q2 and H1 2026. On the hardware Tier 1 platform pipelines, those are platforms of Tier 1 manufacturers with hardware solution offering.

Speaker #3: That we have with Tier One. So, this slide is a brief reminder on the outlook framework we presented at the beginning of this year.

Speaker #3: And the two next slides will show where we stand right now. So in this slide, we are just reviewing again what was promised. And here is how we executed on this promise and how we progressed in the second quarter and the first half of 2026.

Speaker #3: So on the hardware tier one platform pipelines, those are platforms of tier one manufacturers with hardware solution offering. So design wings already above the top of the range including new larger munition platform wing for our multi-band and tactical that we explained earlier.

Oren Elkayam: Design wins already above the top of the range, including new long-range munition platform wins for our SkyHopper MultiBand and SkyHopper Tactical that we explained earlier. We can see that initial production current player continued to generate follow-on orders. In the ramp-up phase, we see one against a goal of 2, that one has entered a monthly delivery cadence, which is important for a company like Mobilicom. In total, we have 9 Tier 1 customers platforms. Again, a goal which was 8 to 10, and we are entering H2 and we are already meeting the target. On the cybersecurity and software side, on the right side, we can see that the engagement continues across the NVIDIA and Qualcomm ecosystem, progressing against the 4 to 6 OEM partner goal.

Speaker #3: We can see that initial production current player continue to generate follow-on orders. And in the ramp-up phase, we see one against of goal of two that on that one has entered a monthly delivery cadence, which is important for a company like Mobilicom.

Speaker #3: In total, we have nine tier one customers platforms again a goal which was 8 to 10. And we are entering the second half of the year.

Speaker #3: And we are already target. On the cybersecurity and software side on the right side, we can see that the engagement continues across the NVIDIA and Qualcomm ecosystem, progressing against the four to six OEM partner goal.

Speaker #3: And the AI-enabled autonomous weapon system wing belongs here too, because a software-led selection with OS3 operating security, safety, and standard compliance, which are autonomy cybersecurity solutions.

Oren Elkayam: The AI-enabled autonomous weapon system win belongs here too because a software-led selection with OS3 operating security safety and standard compliance, which are autonomy cybersecurity solution, and the ICE software were chosen with our hardware from day one. We have seen wins, delivery, and soon deployment to these customers as well. On our goals on operational and finance, we have mentioned multiple targets for the year. Of course, H1, roughly 3,000 units were in motion at different stages. The first 1,000 were already produced in Q1 and ongoing deliveries that started back then and continue now. Production of another 1,000 commenced in Q2. The long lead items procurement for additional 1,000 accelerated in response to the world supply chain constraints. Those long lead item stock will help us and will be used to support our first US production run in 2026.

Speaker #3: And the ICE software was chosen with our hardware from day one. So we've seen new wins, delivery, and soon deployment to this customer as well.

Speaker #3: On our goals and on operational and finance, we have mentioned multiple targets for the year. Across the first half, roughly 3,000 units were in motion at different stages.

Speaker #3: The first 1,000 were already producing the first quarter and ongoing deliveries that started back then. And continue now. Production of another 1,000 commenced in the second quarter.

Speaker #3: And the long lead items procurement for an additional 1,000 was accelerated in response to the world supply chain constraints. Those long lead item stocks will help us and give us the use to support our first US production run in 2026.

Speaker #3: And we maintain a backlog units capacity that will expedite delivery on customer demand that we anticipate that will ramp up from quarter to quarter.

Oren Elkayam: We maintain a backlog units capacity that will expedite delivery on customer demand that we anticipate that will ramp up from quarter to quarter. On the US manufacturing footprint, significant progress was made this quarter. We have mapped multiple manufacturers across the United States. We shorted this to 5 contenders against benefit, tax, and location criteria. We conducted on-site inspections and capacity and capabilities review with those players. We narrowed down the field to 2 last candidates, and right now we are in the final stages of entering as we promised The Pentagon, which is closely monitoring our progress in this field. On the program of record, we moved to an ongoing monthly delivery cadence, driving the H1 revenue ramp-up that you see for Q2.

Speaker #3: On the US manufacturing footprint, significant progress was made this quarter. We have mapped multiple manufacturers across the United States. We shorted this to five contenders against benefit tax and location criteria.

Speaker #3: We conducted onsite inspections and capacity and capabilities reviews with those players. We narrowed down the field to two final candidates, and right now we are in the final stages of entering, as we promised the Pentagon, which is closely monitoring our progress in this field.

Speaker #3: On the program of record, we moved to an ongoing monthly delivery cadence, driving the first half revenue ramp-up that you see for Q2. So I think that in this slide that we presented at the beginning of the year, we presented this position in details on our first quarter call.

Oren Elkayam: I think that in this slide, what we presented at the beginning of the year, we presented this position in details on our Q1 call, but I will keep it brief and updated as following. For our OEM customers, we are embedded across US branches, and we hold 5 US endorsement and validation shown on the slide, which without those products cannot be participating in US Federal Department of Defense, other programs. 2 updates are worth highlighting since the last call. First, our aggressive US production build-out progress support both our growth plans and keeping the SEC onshore plan effective and on track.

Speaker #3: But I will keep it brief and update as follows. For our OEM customers, we are embedded across U.S. branches, and we hold five U.S. endorsements and validations, as shown on the slide. Without those, our products cannot participate in U.S. Federal Department of Defense or other programs.

Speaker #3: Two updates are worth highlighting since the last call. First, our aggressive US production build-out progress supports both our growth plans and keeps the SEC onshore plan effective and on track.

Speaker #3: Second, we were selected to showcase our secured autonomy solution at the very, I think, one of the biggest Department of Defense and federal drills in the United States, the Northern Strike 2026, which is a premier Department of Defense exercise—putting our technology directly in front of military end users and decision makers. This builds our brand and, later on, will build new programs and operations with those end customers.

Oren Elkayam: Second, we were selected to showcase our secure autonomy solution at I think one of the biggest Department of Defense and federal drills in the United States, the Northern Strike 2026, which is a premier Department of Defense exercise, putting our technology directly in front of military end users and decision makers, which build a brand and later on will build new programs and operations with those end customers. Before we take questions, I would like to summarize the presentation with key reasons why Mobilicom is compelling opportunity today. The short list of the key items are we have an ongoing monthly delivery cadence to our US One customers and Department of Defense, and that's seen in the Q2 delivery and revenue. The designing engine running ahead of plan.

Speaker #3: So before we take questions, I would like to summarize the presentation with key reasons why Mobilicom is a compelling opportunity today. And the shortlist of the key items are: we have an ongoing monthly delivery cadence to our U.S. One customers and Department of Defense.

Speaker #3: And that's seen in the Q2 delivery and revenue. The design engine running ahead of plan. We are in the goal for the full year target, which were executed in the middle of the year.

Oren Elkayam: We are in the gold for the full-year target, which were executed in the middle of the year with 9 tier 1 customer platforms on the book. The integrated stacks position is proven. We've seen software and hardware selected together, been giving us bigger position in the design, larger dollars for every platform in percentage and value, and rising content on every platform of Mobilicom, which also leads to retention rates, which is very high with these partners. The regulatory moat Trusted Cyber status maintained through an execution of onshoring plan with the US manufacturing partner selection at the final stage of progress, which is important per the insights we are getting from The Pentagon that is reviewing and working with us on that. New products monetization immediately. We launched new products. We won 2 design wins with initial orders to support the integration, and we delivered.

Speaker #3: With nine tier one customer platforms on the book. We integrated stack the integrated stack position is proven we've seen software and hardware selected together be giving us bigger position in the design, larger dollars for every platform in percentage and value.

Speaker #3: And rising content on every platform of Mobilicom, which also lead to retention rates which is very high with these partners. The regulatory moat trusted drone status maintained through an execution of onshoring plan with the US manufacturing partner selection at the final stage of progress.

Speaker #3: Which is important per the insights we are getting from the Pentagon that is reviewing and working with us on that. New products monetization immediately we launched new products we want to designing with initial orders to support the integration and we deliver.

Speaker #3: And that shows capability to convert faster and move along phases faster. And we have a fortress balance sheet—debt free, multi-year runway. Warrant exercise added additional cash in hand to support our future growth.

Oren Elkayam: That shows capability to convert faster and move along phases faster. We have a fortress balance sheet, debt-free, multi-year runway, warrant exercise, adding additional cash in hand to support our future growth. I think that the market is moving toward us. The new cybersecurity mandates that were released in the recent months are converging on exactly what we build, that is important for our future. I would like again to close my closing statement with thanks to our team worldwide, Yossi, my co-founder and partner, and our technology, business, and operational teams in US, Israel, and Australia. I think that, Liad, this is the time to get back to you for the Q&A session.

Speaker #3: And I think that the market is moving toward us. The new cybersecurity mandates that were released in recent months are converging on exactly what we build, and that's important for our future.

Speaker #3: I would like, again, to close my closing statement with thanks to our team worldwide; Yosi, my co-founder and partner; and our technology, business, and operational teams in the US, Israel, and Australia.

Speaker #3: And I think that yeah, this is the time to get back to you for the Q&A session.

Speaker #1: Thank you, Oren. We will now move to the question and answer session. Operator, we appreciate your help here.

Liad Gelfer: Thank you, Oren. We will now move to the question and answer session. Operator, we appreciate your help here.

Speaker #2: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator 2: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing any keys. One moment please while we poll for questions. Our first question is from Mike McCormack with Water Tower Research. Please go ahead.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing any keys. One moment please while we poll for questions. Our first question is from Mike McCormack with Water Tower Research. Please go ahead.

Speaker #2: A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing any keys. One moment, please, while we queue for questions.

Speaker #2: Our first question is from Mike McCormack with Water Tower Research. Please go ahead.

Speaker #4: Hey guys, thanks. First quarter revenue reflected your customer moving into program-of-record ramp-up. How did that convert in the second quarter?

Mike McCormack: Hey, guys. Thanks. First quarter revenue reflected your customer moving into program of record ramp-up. How did that convert in the second quarter?

Speaker #1: Thanks for the question, Mike. So actually, it converted exactly as the model says it should. Second quarter revenue was approximately $1.2 million because it was delivered under the US program of record and moved onto a monthly cadence.

Liad Gelfer: Thanks for the question, Mike. Actually, it converted exactly the model they should. Q2 revenue was approximately USD 1.2 million because deliveries under the US program of record moved onto a monthly cadence. That also explained the backlog movement. Orders shipped rather than just set. What Q2 tells us is not a number to extrapolate. It is what we entered, is that actually we entered a monthly delivery cadence, and this is what we expect the cadence to continue. That's the short answer to that.

Speaker #1: That also explains the backlog movement, okay? Orders shift rather than just sit. But what the second quarter tells us is not a number to extrapolate, okay?

Speaker #1: What we entered is that we actually entered a monthly delivery cadence, and this is what we expect the cadence to continue.

Speaker #1: That's the short answer for that.

Speaker #4: Okay. If I can follow up, you have runway, no debt, and you terminated the ATM under what circumstances would you raise capital?

Mike McCormack: Okay. If I can follow up, you have runway, no debt, and you terminated the ATM. Under what circumstances would you raise capital?

Speaker #1: So we don't need to raise capital to execute the plan we have described today. We have a multi-quarter runway at the current burn. We carry no debt of any kind.

Liad Gelfer: We don't need to raise capital to execute the plan we have described today. We hold a multi runway at the current burn. We carry no debt of any kind. The warrants still outstanding represent roughly USD 20.6 million of additional potential funding on top of the cash that we already hold. The bar for new capital is actually opportunity, not a necessity. Something that materiality accelerate the plan, M&A, and so on. Absent that, our focus is converting the balances we have into production deliveries, and of course, the cash, eventually to positive cash flow. I hope that answered your question.

Speaker #1: And there aren't still outstanding represent roughly 20.6 million of additional potential funding. On top of the cash that we already hold. So the bar for new capital is actually the opportunity.

Speaker #1: Not a necessity. Something that you know materiality accelerate the plan. M&A and so on. Absent that, our focus is converting the balance sheet. We have into production.

Speaker #1: Deliveries, and of course, the path eventually to positive cash flow. I hope that answered.

Speaker #4: Excellent. Thank you. Yes, it did. Thank you.

Mike McCormack: Yes, it did. Thank you.

Speaker #1: Go ahead.

Liad Gelfer: You're welcome.

Speaker #2: Our next question is from Barry Sign with Litchfield Hills Research. Please go ahead.

Operator 2: Our next question is from Barry Sine with Litchfield Hills Research. Please go ahead.

Operator: Our next question is from Barry Sine with Litchfield Hills Research. Please go ahead.

Speaker #3: Hey, good afternoon Oren and Leah. Congratulations. Really very good momentum from 2Q versus 1Q. A couple of questions if you don't mind. First of all, I want to talk about the design wins.

Barry Sine: Hey, good afternoon, Oren and Liad. Congratulations. Really, very good momentum from Q2 versus Q1. A couple of questions, if you don't mind. First of all, I want to talk about the design wins. You had a great slide where you talked about what you did last year, your goals for this year, and what you have now. What is the timeline typically when you get a design win in order to get to initial low rate production and then to volume revenue, which it sounds like you're at on one program of record already?

Speaker #3: You had a great slide where you talked about what you did last year, your goals for this year, and where you are now. What is the typical timeline when you get a design win to go from that point to initial low-rate production and then to volume revenue? It sounds like you're already at that stage on one program of record.

Speaker #5: Yeah, I think I will take that. So thank you Barry for the question. I think that we manage that in a free step or free stage pipeline.

Oren Elkayam: Yeah, I think I will take that. Thank you, Barry, for the question. I think that we manage that in a three-step or three-stage pipeline, and it is exactly how we did the slide that we are showing in our presentation showed earlier how it's built. The first integration and qualification stage is following the design win that we are winning. We actually actively supporting the original equipment manufacturers, the OEMs, during their platform integration, validation, and qualifications. Historically, these initial OEM platform designs require lengthy timelines because it was the first time that they build first systems to the market. Today, the development cycles are significantly faster, typical span over several months, especially for those experienced OEMs with existing platforms already in the market.

Speaker #5: And it is exactly how we did the slide that we are showing in our presentation, as shown earlier, how it's built. So the first integration and qualification stage is following the design win that we are winning.

Speaker #5: We actually actively supporting the original equipment manufacturers, the OEMs, during their platform integration, validation, and qualifications. Historically, this initial OEM platform designs require lengthy timelines because it was the first time that they build first systems to the market.

Speaker #5: Today, the development cycles are significantly faster. Typical spend over several months. Several months. Especially for those experienced OEMs, which the existing platforms already in the market.

Speaker #5: So the actual timeline remains dependent on the customer program schedule, of course. But it's much faster than what we've seen in the past. The second phase is initial production orders from qualification.

Oren Elkayam: The actual timeline remains dependent on the customer program schedule, of course, but it is much faster than what we have seen in the past. The second phase is initial production orders from qualification. Initial production orders typically begin at a low rate. These early units enable the OEM or the manufacturer of the autonomous platform to successfully deploy the platform, promote the programs, and secure broader sales to the end customers, which are usually governments around the world, typically spanning few quarters. The timeline here is multiple quarters to deploy and progress into larger orders. Then volume scaling, which is the third phase. Production volume scales according to the customer program milestones rather than our own activity because usually, we are ready faster and earlier than our partners, the large conglomerated OEMs, which is standard for embedded defense system platforms.

Speaker #5: Initial production orders typically began at a low rate. These early units enabled the OEM or the manufacturer of the autonomous platform to successfully deploy the platform, promote the programs, and secure broader sales to the end customers.

Speaker #5: Which are usually governments around the world. Typically spending few quarters. So the timeline here is multiple quarters to deploy and progress into larger orders.

Speaker #5: And then volume scaling, which is the third phase, production volume scales according to the customer program milestones rather than our own activity. Because usually we are already faster and earlier than our partners, the large conglomerate and OEMs.

Speaker #5: Which is standard for embedded defense system platforms. So we can see that the five new wins from this half are new fuel entering on top of the funnel that we've built earlier, which some of them are, as you mentioned, already in volume scalability and ongoing monthly delivery.

Oren Elkayam: We can see that the five new wins from this half are new fuel entering on top of the funnel that we built earlier, which some of them are, as you mentioned, already in volume scalability and ongoing monthly delivery, and some of them are already in initial production run rate.

Speaker #5: And some of them are already in initial production run rate.

Speaker #3: Okay, that's helpful. And as you're selected by a drone manufacturer, can one of you talk about the factors that go into that? Is it price?

Barry Sine: Okay. That is helpful. As you are selected by a drone manufacturer, I wonder if you can talk about the factors that go into that. Is it price? Is it technology? There is cybersecurity testing. Who are you competing with? What does the competitive environment look like? How do you stack up price-wise, technology-wise, et cetera?

Speaker #3: Is it technology? Are there cybersecurity testing? And who are you competing with? What is the competitive environment look like? How do you stack up price-wise, technology-wise, etc.?

Speaker #5: I think that I can summarize it with multiple key decision-making items that we hear again and again from those OEMs and manufacturers of autonomous platforms.

Oren Elkayam: I think that I can summarize it with multiple key decision-making items that we hear again and again from those OEMs and manufacturers of autonomous platforms. First is the ability to deliver the performance they need in contested environments, which is the most important capability. They want to be able to achieve range, resilience, electronic warfare resistance, and so forth, that is crucial for their success of the mission that their platform is designed for. The second criteria that we see is compliance. Especially in the US, we see that NDAA, Blue UAS, and now the new FCC Trusted Drone status manufacturer that is choosing us inherits a qualified company with solution and approved supply chain rather than building one by himself. That reduces the risk on their end and reduces the headache from their side.

Speaker #5: First is the ability to deliver their performance they need in contested environments, which is the most important capability they want to able to achieve range, resilience, electronic warfare resistance, and so forth.

Speaker #5: That is crucial for the success of the mission that their platform is designed for. The second criteria that we see is compliance. Especially in the US, we see that NDAA, Blue UAS, and now the new FCC Trusted Drone Status—manufacturer that is choosing us iterates a qualified company with solution and approved supply chain, rather than building one by himself.

Speaker #5: And that's reduced the risk on their end and reduced the headache from their side. The third criteria that we see is price and supply capacity.

Oren Elkayam: The third criteria that we see is price and supply capacity that can support mass market and customer program scalability for the next phases of market program ramp-up. Price and supply capacity are becoming importantly because as you scale in volume, they expect low prices to maintain that, which you can achieve by producing higher quantity, obviously. And they would like to see your US-approved supply chain capacity to maintain what the US government would like to achieve. By the way, we also see the same decision-making of local supply chain or supply capacity capability in other places. We see that in Israel. We see that in the European market. We've seen it, for example, in Canadian market that anticipate and request the future program will be with local capacity to volume production as well. The fourth thing, which is we see recently, is the integrated stack.

Speaker #5: That can support mass market and customer program scalability for the next phases of market programs or above. So, price and supply capacity are becoming important because, as you scale in volume, they expect low prices. To maintain that, which you can achieve by producing higher quantities, obviously, they would like to see your US-approved supply chain capacity to maintain what the US government would like to achieve.

Speaker #5: And by the way, we also see the same decision-making of local supply chain or supply capacity capability in other places. We see that in Israel, we see that in the European market.

Speaker #5: We've seen it, for example, in Canadian market that anticipate and request the future program will be with local capacity to volume production, as well.

Speaker #5: And the fourth thing, which is we see recently is the integrated stack. Very few suppliers can put the security secure data link and electronic offer resistance and into the platform together with cybersecurity on the table as one offering.

Oren Elkayam: Very few suppliers can put the secure data link and electronic warfare resistance into the platform together with cybersecurity on the table as one offering. So in embedded drone cybersecurity, where we are positioned as leaders, we are facing very limited direct competition today. To summarize that, we see mainly key four items, which is performance in real combat environment, compliance with regulations that are needed, for example, by the US government, a price and supply capacity to be able to scale later based on the new regulations, and integrated stack that can accelerate some of the customers and OEMs. Here it's important that we share, we believe that as the platform development cycles accelerate, and we will see that any new platforms will be initiated every 12 to maybe 24 months between generations.

Speaker #5: So in embedded drone cybersecurity, where we are positioned as leaders, we are facing very limited direct competition today. So to summarize that, we see mainly key force items, which is performance in real combat environment, compliance and regulation that are needed, for example, by the US government, a price and supply capacity to be able to scale later based on the new regulations, and integrated stack that can accelerate some of the customers and OEMs.

Speaker #5: And here, it's important that I share we believe that, as a platform, development cycles accelerate, and we will see that any new platforms will be initiated every 12 to maybe 24 months between generations.

Speaker #5: Which means that it's driven by frequent modifications and program-specific adjustments, and platform manufacturers will derive immense value from working with a one-stop-shop partner.

Oren Elkayam: Which means that it's driven by frequent modifications and program-specific adjustments, and platform manufacturers will drive immense value from working with a one-stop-shop partner. This consolidated strategy ensure a defense advantage in time to market, in operational performance, and obviously price, which is also expected. Here I think that this is one of the two critical differentiation factors from Mobilicom. The first one is the cybersecurity across the board, and second is building the position of one-stop shop with hardware, software, and cyber capabilities that can come as single stack that can span generation and platform faster and be the ideal partner for the largest OEM. So those are the critical aspects that we see when evaluated by different customers.

Speaker #5: This consolidated strategy ensures design’s advantage in time to market, in operational performance, and obviously price, which is also expected. And here, I think that this is one of the two critical differentiation factors from Velicom. The first one is the cybersecurity across the board, and second is building the position of a one-stop shop with hardware, software, and cyber capabilities that can come as a single stack that can span generations and platforms faster and be the ideal partner for the largest OEM.

Speaker #5: So those are the critical aspects that we see when evaluated by different customers.

Speaker #3: Okay, that's great. And then my last question: You've talked about the two programs of record—OPFL for the Marine Corps, and then the LASSO-O program where you have one of your customers moving through for qualification.

Barry Sine: Okay. That's great. My last question. You've talked about the two programs of record, OPF-L for the Marine Corps and the LASSO program, where you have one of your customers moving through for qualification. The other program that I want to ask about is Drone Dominance, and I think that came out last year with the first phase. They're moving into the next phases, and there's new requirements, some of which look like they may really require some of your products. How are you positioned for the new requirements as that program, Drone Dominance, evolves with your product line? Thank you.

Speaker #3: The other program that I want to ask about is drone dominance. And I think that's come through its first phase. They're moving into the next phases.

Speaker #3: And there's new requirements, some of which look like they may really require some of your products. How are you positioned for the new requirements as that program drone dominance evolves with your product line?

Speaker #3: Thank you.

Speaker #5: Great questions. Yes, the Drone Dominance Program, in short DDP, is a Department of Defense program which is using alternative, let's say, procurement processes, and their goal is mainly to learn from the things that were done in Ukraine and how they built an extensive industry over a short period of time and scaled to millions of units in production on a yearly basis.

Oren Elkayam: Great questions. Yes, the Drone Dominance Program, in short, DDP, is a Department of Defense program which is using alternative, let's say, procurement processes. Their goal is mainly to learn from the things that were done in Ukraine and how they build an extensive industry over a short time of period and scale to millions of units in production on a yearly base. So they would like to use that program to build a US ecosystem for the smallest, highest volume of drones, but yet the lower value of drones, which are called FPV, first-person view class of drones. Those are very small, cheaper drones which are below the Group 1, Group 2 platforms we are serving today. The DDP Phase 1, as you mentioned, started earlier this year, and it was purely price-driven and validating simple missions with minimal requirements.

Speaker #5: So, they would like to use that program to build a U.S. ecosystem for the smallest, highest-volume drones, but yet the lower-value drones, which are called FPV — first person view — class of drones.

Speaker #5: Those are very small, cheaper drones, which are below the Group 1 and Group 2 platforms we are serving today. The DDP phase one was, as you mentioned, started earlier this year and it was purely price-driven and focused on validating simple missions with minimal requirements—just, let's understand who the ecosystem participants are and who can help America scale on that.

Oren Elkayam: Just let's understand who is the ecosystem participants and can help America scale on that, and that was the initial phase. Currently, not where RIP plays. So it wasn't relevant for Mobilicom because of what they required. There was no pure play for Mobilicom over there. But what matters is what happens next. The second phase 2 of the DDP, Drone Dominance Program, which the selection is underway now, shifted the requirements from simple analog data link to secured, encrypted digital communication, which is exactly where the SkyHopper family of solutions sits today, and signals that the mass production will also require compliance to some cybersecurity.

Speaker #5: And that was the initial phase. Currently, not where our IP place. So it wasn't relevant from a Belicom because of what they required. There was no pure play from a Belicom over there.

Speaker #5: But what matters is what happens next. The second phase phase two of the DDP drone dominance program, which is the selection is underweight now, shifted the requirements from simple analog data link to secured, encrypted, digital communication, which is exactly where the scarper family of solutions sits today.

Speaker #5: And signals that the mass production will also require compliance to some cybersecurity. And on that, can

Barry Sine: On that, can you meet the pricing requirements? Obviously, phase 1 was low-priced drone. You have very sophisticated cybersecurity capabilities. Can you meet the military's expectations in terms of pricing for phase 2 on Drone Dominance, do you believe?

Speaker #3: You—you meet the price requirements? Obviously, phase one, with the low-priced drone, you have very sophisticated cybersecurity capabilities. Can you meet the military's expectations in terms of pricing for phase two on drone dominance?

Speaker #3: Do you believe?

Oren Elkayam: Once going into the future. So every step of the program evaluation, secure digital data links, certified vendors, American manufacturing, cybersecurity, all of them move it towards our existing position. So for the FPV market segment, which is, yes, showing incredible numbers of volume under this program that intend to build this ecosystem in America, but very competitive, low value drone, which is very small one. So for this FPV market segment, it provides optionality that we can choose to pursue if we want to, especially as they are moving more and more to Mobilicom capabilities as mandate for the future. We are very closely monitoring this emerging US market trends and the DoD, Department of Defense resolutions, while carefully identifying our unique selling points for this market as it is very competitive area, demanding lower prices, but offering large opportunities and quantities.

Speaker #5: Once going into the future. So every step of the program evaluation—secure digital data links, certified vendors, American manufacturing, cybersecurity—all of them moves it towards our existing position.

Speaker #5: So for the FPV market segment, which is yes showing incredible numbers of volume under this program that intend to build this ecosystem in America, but very competitive, low value drone, which is very small one, so for this FPV market segment, it provides optional optionality that we can choose to pursue if you want to, especially as they are moving more and more to mobilicom capabilities as mandate for the future.

Speaker #5: Where we are very closely monitoring this emerging US market trends and the DOW Department of War resolutions while carefully identifying our unique selling points for this market.

Speaker #5: As it is very competitive area, demanding lower prices, but offering large opportunities and quantities. And that's yes creating a big buzz around the market, but it's also important that you can generate from that a sustainable company with gross margin revenue and scalability and not entering into losing fundamentally losing money over the ambitious plan.

Oren Elkayam: That's, yes, creating a big buzz around the market, but it's also important that you can generate from that a sustainable company with growth margin revenue and scalability and not entering into fundamentally losing money over the ambitious plan. We are glad with the new resolution that came and brought the requirements towards Mobilicom's offering in different elements. We believe that phase III and phase IV in 2027 will be much more appealing to what we have to offer, and we are yet to decide if we are going to take and choose these lower-end, high volume, low cost platforms and target that with partners. But there are activities that we are doing under that market segment to fortify our unique selling point for that.

Speaker #5: So, we are glad about the new resolution that came and brought the requirements toward Mobilicom's offering in different elements. We believe that Phase Three and Phase Four in 2027 will be much more appealing to what we have to offer.

Speaker #5: And we are yet to decide if we are going to take and choose this lower end high volume low cost platforms and target that with partners.

Speaker #5: But there are activities that we are doing in under that market segment to fortify our unique selling point for that.

Speaker #3: Okay, thank you very much.

Barry Sine: Okay. Thank you very much.

Speaker #5: And do we have more time for additional questions, maybe?

Oren Elkayam: Yeah. Do we have more time for additional questions, maybe?

Speaker #1: We have reached the end of the question-and-answer session. I would like to turn the floor back over to Leead Guilfer for closing comments.

Operator 2: We have reached the end of the question and answer session. I would like to turn the floor back over to Liad Gelfer for closing comments.

Operator: We have reached the end of the question and answer session. I would like to turn the floor back over to Liad Gelfer for closing comments.

Speaker #5: Yeah, do you have any?

Oren Elkayam: Yeah. Do you have any final comments, maybe?

Speaker #3: Thank you. Yeah, I think we can have the last one another one that we just received. Sorry for our raising it after we close, but we close it after that, of course.

Liad Gelfer: Thank you. Yeah, I think we can have the last one. Another one that we just received. Sorry for raising it after we closed, but we close it after that, of course. Let me Yeah. Okay. So the question we just received, the final question right now. So with the FCC Trusted status and the tier 1 wins in hand, what are you most focused on over the coming quarters? Yes, Oren.

Speaker #3: Yeah, okay. So the question we just received, the final question right now. So if the FCC trusted status and the tier one wins in hand, what are you most focused on over the coming quarters?

Speaker #3: Yes, sir.

Oren Elkayam: There are multiple things that keep us busy on the coming quarters. I think the first one is assisting and advancing our current recent designings with large OEM manufacturers who are often being very busy and have limited resources, by guiding them through integration and validation process toward initial production and identifying first deployment customers that they can achieve. Because that will progress us as their partner to larger programs in the next phases, faster than later. I think the second thing that keep us busy is delivering the H2 by maintaining the monthly cadence and encouraging new orders from the existing OEMs that are in this production.

Speaker #5: So there are multiple things that keep us busy on the coming quarters. I think the first one is assisting and advancing our current recent designings with large OEM manufacturers who are often being very busy and have limited resources.

Speaker #5: By guiding them through the integration and validation process toward initial production and identifying first deployment customers that they can achieve, because that will progress us, as their partner, to larger programs in the next phases faster rather than later.

Speaker #5: I think the second thing that keep us busy is delivering the second half by maintaining the monthly cadence and encouraging new orders from the existing OEMs that are in this production.

Speaker #5: Third is finalizing the US manufacturing agreement and building this US production capacity which is significant position as indicated by the Pentagon and to meet first the requirements in salad but be part of the very small number of ecosystem players that can meet the entire requirements of the DOW and the federal market in the United States.

Oren Elkayam: Third is finalizing the US manufacturing agreement and building this US production capacity, which is significant position as indicated by The Pentagon, and to meet first the requirement in salad, but be part of the very small number of ecosystem players that can meet the entire requirements of the DoD and the federal market in the United States, which we aim to accomplish and deliver first production run in 2026. And fourth, I think, deepening our software layer. The OS3 cybersecurity for autonomy and the secured autonomy framework as the new cybersecurity requirements move into programs, because that is where the higher margin recurring parts of licensing model of our solutions live, and that's unique position that we have versus others, and we are leading this market position.

Speaker #5: Which we aim to accomplish and deliver first production run in 2026. And fourth, I think deepening our software layer. The OS3 cybersecurity for autonomy and the secure autonomy framework as the new cybersecurity requirements move into programs because that is where the higher margin recurring parts of licensing model of our solutions live and that's unique position that we have versus others and we are leading this market position.

Speaker #1: So I will say that those are the key four items, and all of it is funded from our current balance. Since we have, with the same discipline, the band rate that we are continuing to enforce over the last years. So that's our focus for the coming quarters.

Oren Elkayam: I will say that those are the key four items, and all of it is funded from our current balance sheets we have, with the same disciplined burn rate that we are continuing to enforce over the last year. That is our focus for the coming quarters.

Liad Gelfer: Thank you, Oren. I believe that concludes today's call. A replay will be available on ir.mobilicom.com. For any follow-up questions, please contact Chris Donovan, our Head of Investor Relations at chris.donovan@mobilicom.com. Thank you for joining us, and thank you for your continued interest in Mobilicom. Have a great day.

Speaker #2: Thank you Erin . I believe that concludes today's call . A replay will be available on ir dot mobilicom.com . For any follow up questions , please contact Chris Donovan , our Head of Investor Relations at Chris , that Donovan at mobilicom.com .

Speaker #2: Thank you for joining us, and thank you for your continued interest in Mobilicom. Have a great day.

Operator 2: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.