Thank you very much, Mel, and thank you everyone for joining us today this afternoon, morning, wherever you are in the world. We are both looking on the second quarter of the year and also trying to look on the entire first half of 2026.

Even though it's still unaudited numbers, obviously they are in the range, and I think that we end up a great half year. If you look on the bottom line results, we already overachieved last year revenue.

In terms of profitability, we're in a even better spot of what we were last year. I think if there is a story that the numbers are not telling and super important for us to deliver during this presentation today is all the traction and everything that is happening in different markets today, which are not necessarily part of the numbers we will see, obviously part of the pipeline, but not part of the report, and also not necessarily part of the language we put out in the ASX reports.

Remind you all that we're active in dual-use market, which include commercial application—we'll talk about that—but also defense. In the defense side, not everything can be disclosed because of classification and other stuff.

Looking broadly, I think what we saw in the first half, beside generating the revenue and the profits that more than what we have in the entire last year, seeing the traction that we have with a very, very strong focus on the US market and seeing a lot of programs that are starting to mature there, I think that in the second half and in the years to come, we will see more and more a growing demand and growing revenue numbers and pipeline and backlog numbers coming from this market. While the rest of the world is also growing, and I'll try to walk you through those developments that are happening and where Elsight is located within this perfect storm, let's call it, and also what makes us prepare to the wave that will come in front of us in terms of the opportunity.

If there is one point that I'm continuing to say again and again is that the opportunity is still in front of us, and that's definitely not behind us in terms of how we see the market growth and how everything is happening there. For those of you who joining us for the first time for this webinar, just to take you through what Elsight is.

Elsight started as a communication solution for broad range of sectors and applications. In the last six years, we focused the business to be in unmanned or uncrewed industry, meaning aerial vehicle, ground vehicle, maritime robotics.

The only two domains we're not touching today is underwater and space. Over the last six years, when we started in unmanned systems, we started in commercial market.

In the last 2.5, three years, we see a growing demand in the defense market because of the geopolitical environment that we all see in the news on a daily basis. Drones and unmanned systems become a material part of every Western government today preparing or inside of a conflict, or preparing for a conflict, or making sure they have what they need for that.

We're building ourselves to become basically the tier one for this industry, the backbone of the industry, starting from communication and growing from there. Starting from the technology, today all the technology we're selling to our customers and partners is proprietary technology that was developed in Elsight.

We have patents that are already granted. We have many families of patents that are currently in the process for various new products that we're presenting, whether it's in the new business unit that we'll talk about or the existing offering that we're doing, and constantly doing more innovation and offering more value basically to our customers.

Looking on our numbers, we continue the same level of profitability and have super profitable business model of high 70s% in the gross margin. Also if you look on the bottom line of the net profit, I think that the numbers there are showing a very strong business model that allows us to grow fast, but do it super profitable and not just burning cash, but actually generating cash as part of what we're doing.

Looking at our pipeline, the opportunity is in front of us and not behind us today. We grew the pipeline to be $168 million of actual tangible opportunities.

We'll deep dive into that later in the presentation. I spoke about the margin model and the fact that it's not only a one-time sale for every product that we're doing, it's a combination of one-time sale as well as recurrent revenue in every unit that we're selling.

Seeing in general what happening around us, like I said, the growth that is happening in the industry, and again, I'll try to walk you through some of the development that are happening there and what we're seeing there, which is super interesting. Elsight is positioned in a very, very interesting space within this market today, and where we are seeing ourselves, and how we see ourselves growing moving forward.

In terms of revenue growth, I think what this chart show more than anything is, first of all, the continuous growth quarter-over-quarter. I think also what it's worth mentioned is, I won't call it seasonality, but if you look on the first half of the years versus the second half of the years in Elsight history, the second half was always stronger than the first half.

One of the reason is because of how government budget are structured and when they spend those budgets. Obviously, towards the end of fiscal year in different places, they start to spend more of the budget, those kind of a leftover of those budgets that we can leverage basically.

Seeing this continuous growth, we are expecting to see this continuous growth quarter-over-quarter as we move along based on our pipeline opportunities. If you look backwards on the second quarter or even the first quarter, there are a lot of opportunities that are emerging during the quarter and already delivered as revenue in the same quarter.

Those are mostly relatively small orders of hundreds of thousands of dollars, but they're accumulated to big numbers as we move along. I think we will see this continuous trend moving forward.

Now speaking about macro perspective, again, for those of you who saw our presentations and webinar in the past have seen this trend, and that's a growing trend that is happening. In every quarter, we see another data points that just approve it and approve those trends and showing how they're continuously continue to grow.

I'll start with the big chart that you see in the middle. That's just to show how it looks like in terms of NATO countries comparison between 2014 and 2024.

The growth there across the board in all NATO countries, and that's before they put the new bar, the orange line that you see on the top. They put the new target for five for 5% of GDP.

That's a slow process, but we're actually starting to see those programs starting to be deployed in different parts of the world. I'll deep dive into the US market because I think that's where the biggest change is happening.

Looking on other markets like the UK that just passed their defense budget basically just a couple of weeks ago after many months of waiting, same in Germany that already committed to increase their budget by 25%, basically rebuilding their armed forces with new capacity and new capabilities based on what they're seeing in the wars all over the world today, whether it's the Ukraine-Russia war or the Middle East, the US-Iran or other conflicts in the Middle East. I think everyone are seeing today how they were prepared for the wrong war or having the wrong assets, let's call it, and now they're investing a lot in those areas.

Speaking about that, I think that the biggest example is the US market, when we see the biggest growth in terms of budget. Again, those numbers, I can tell you that from Elsight's perspective, from our point of view and what we actually seeing with working with our end users and customers, we are seeing that many of those programs already been deployed and already budgeted to be utilized.

We're not only talking about budget or revenues that will come towards the end of the year, we are expecting those traction or those development to translate into actual material revenue for Elsight in the next weeks, months, and quarters moving forward. Again, just to talk through those numbers, the US new budget request for defense in general is $1.5 trillion.

It's 40 42% increase over last year, or over the current levels of what they have today. Out of that, for drones and counter-drone solutions is $75 billion, which is super big growth.

Now inside of it, Elsight, during the first half, first of all, we were qualified for the Blue UAS, which is the first, basically, stamp of quality that we're eligible to sell to the US government or to the US DoD or DoW today. Then we have all the programs that we've been talking about for the last couple of months, whether it's Project Fly that was super successful and still is, or other programs that we're part of, and starting to see the revenue coming in.

Not everything is announceable, and not everything we're eligible to announce because of, like I said, different sensitivities. I can say that we're seeing a lot of development happening there both with end users being the actual units in the armed forces, and also with different OEMs in the US market, which are names that you all familiar with.

I'll keep them like that because of classification. We all need to understand that when we're working in this market, there are some sensitivities that unfortunately we cannot disclose everything.

Obviously, we put out on the ASX platform as part of the ASX reports and our quarterly reports in general, quarterly and half year and yearly report, all the necessary disclosures, but not always we can mention names or specific programs for this reason. Talk a little bit about the technology and what we're building here again for those of you who hear our presentation for the first time or showing the development that we're having there.

Elsight have started in communication. Today we did more than 500,000 flight hours on different terrain, different platforms, in different areas, for different missions.

Today we're expanding. We're taking all this experience and knowledge and expanding into other solutions which are not only communication.

Basically, we build ourselves to become the backbone of the uncrewed industry, and our direction is not to be the platform manufacturer. We don't see that we have any competitive advantage there.

We have a very strong competitive edge on everything that is related to what we call enablement technology. Basically, we want to help the end users and the OEMs and service providers to complete their mission, whatever the mission is, whether it's for commercial application, for logistics, or for ISR, or for public safety, or it's in the defense for, again, for ISR, logistics, or different missions that are more sensitive.

Growing from connectivity only into connectivity, positioning, autonomy, and video and sensors processing, that's the expansion we're doing. The idea behind it is to provide more value to our customers, to be a bigger chunk of their solution basically.

A lot of our customers are today buying those different capabilities from different companies, they end up with silo technologies that are not really connected to each other. We see how we can help our customers by combining all of those together into one whole product that hold the same state basically, and can help each one of those nodes can help the other one to be better, to enhance the performance, and by that to complete the mission or to help to what we call mission completion basically.

That's the enablement technology of what we're talking about, and that's the reason why we're not going to be the platform, nor the mission operating system, or the human-machine interface. We believe that this layer that I will show you in a second in a slide is super large layer.

If you look on the automotive industry, for example, as a reference, you'll see that the tier one companies that are not the OEMs are in many cases much bigger than the OEMs because they provide to everyone. If I'll try to walk you through where we sit within the different layers of every unmanned system, we trying to split it into four layers to make it simple.

Obviously, there are many more in between, but just to structure it in a way to understand where we are and where we want to expand. On the bottom line, there is the hardware, which is the actual drone, the companies that are building the chassises, the motors, putting together the batteries, the cameras, the flight control units, etc., etc.

Then there is the platform OS, that's where Elsight sits. Above that, we have the mission OS.

OS stands for operating system. Basically where all the mission is managed, all the teaming between humans and machines, all the missions for the machines, and so on and so forth.

Usually it comes together with what called HMI, human-machine interface. Now on the bottom end, on the OEM side, there are many companies that are actually building the drones, that's not Elsight.

We are providing our solution for those companies. On the top, on the mission OS and the HMI, there are also a lot of companies, mostly the primes in the market that are providing those systems, for example, Anduril Lattice, or Quantum-Systems Mosaic, or different [Cortech3?]

has a product there, and General Dynamics, and so on. There are a lot of companies that are sit in this layer.

Elsight sits in the platform OS, what we call platform OS, which basically help to connect between the hardware on the edge and the mission planning which sits on the ground control station or in the headquarter. We're the underlying layer that connects those two, exactly the backbone that I mentioned before, that's where we sit and that's what we do.

Now inside of it, there are different capabilities and different enablement technologies that we're providing to our customers. Started in communication, like you all know, that's where we come from, that's our background, that's where most of the revenue is coming today, the vast majority of the revenue is coming today.

On top of that, there is the navigation of positioning. We soft launched during the quarter our positioning solution, which basically provide a new way to get the drone position or the ground robot position in a non-GNSS environment or GNSS-denied environment.

We are already provide to many of our customers video and sensor processing, for example, adaptive video encoding and other features that sits there. On the autonomy, we are providing a lot of autonomy in the edge, that's the development part of what we're doing and it's not yet fully deployed and developed in the market.

Now those domains, partially are done internally, like I said, organically in Elsight, and partially are with third-party partnerships that we're doing that we put them onto our platform and allow our customers to use it, and we are enjoying a revenue share model that we're doing with those companies. Elsight today have a very strong distribution channel in the market.

We have a lot of drones that are operating in our system, a lot of companies are coming to us to partner with us so we can be their kind of distribution channel to the market. In parallel, we're also looking into inorganic opportunities in this market because there are a lot of companies in this space here that have super interesting technologies.

Not all of them have access to either the market, to sales, or for capital to complete the development that they're doing. We are seeing a lot of interesting companies in those spaces that are offering or looking for partnerships.

It's part of our growth trajectory of looking not only on organic growth, but also inorganic. I would say that we have a couple of targets that we're talking with in different levels of where we are, and we are expecting some of those to translate into actual transactions.

Looking on what differentiate us from the rest of the market or many times there are a lot of question around competition and where we sit within the competition. Elsight main approach is that there is no single source of or single input of solution.

Basically drones or platforms that are relying on single solution, whether we're talking about communication, or navigation, or any other capability, are set for failure because today's market or today environments are super contested. The electronic warfare environment becoming harder and harder, and those that are relying on only one one source of communication are basically set for failure.

Our approach was always to do that in a way that combining all the available spectrum, all the available possibilities to do those kind of navigation and positioning solution, and combine them together into one solution that provide a software or the platform with the best quality of performance in terms of, again, connectivity and all the other features that I mentioned. We are connecting all of them together, the operator doesn't care how it works, it just want to make sure that he will have what we call connection confidence, making sure that he will be connected to the platform on the other side.

This pipeline is as of end of June, end of the quarter basically, which is constantly moving obviously, with new opportunities on the top as well as converting into revenue in the bottom. You'll see if you compare it to our previous quarter numbers, overall pipeline has grown.

It's grown not only by the top line, also when we look on the revenue that we already booked on Q2, which is call it $12 million, that was in addition to these numbers that you're seeing here. Basically there are two main parts that I want to mention.

Starting from the top of the pipeline, we have grown a lot with our biz dev team that we recruited in the first half of the year. A lot of it is coming, like I said, from the US, and also from our team in Germany and the UK that are seeing a lot of opportunities that we are not seeing before, not being with boots on the ground in this market.

Also in the commercial discussion, which is the more mature pipeline, we also see a conversion there. Again, if you compare it to previous quarter numbers, we're seeing a good conversion there in terms of progress down the funnel.

Looking on this pipeline and the second half of the year, we do believe that we're going to have another strong half year in the second half of 2026, and also creating the stepping stone or creating the backlog and the pipeline for '27 and beyond in terms of big programs that will starting to emerge as part of this new budget that I was talking about before. I want to draw a line here in the middle of the pipeline, because basically everything in this $65 million is with existing customers, basically meaning that companies that already have some transaction of dollars between us and the company.

Sometimes it's small, sometimes it's big. The reason I'm mentioning it, because we're trying in every sales process that we're doing, we're trying very early in the sales process to make sure that we're going through all the paperworks, all the contracts, NDA, vendor qualification, and so on and so forth, we will have less friction on the progress of the conversion into actual revenue.

Speaking about translating and converting into actual and what is our commercialization strategy, like I said, today we have people with boots on the ground in North America, being US, Europe, UK, and the Middle East. We are doing all the rest of the world from here in Israel.

We are starting to see revenue coming in in those markets. Starting in the US, as we mentioned in our quarterly reports, we mentioned part of the end users that started to use our system, for example, the 101st Airborne Division in the US Army have already set out loud that they're using Elsight systems in some of their deployments, which is a big stamp again for the rest of the armed forces and going with those case studies to say this is how they're using it, distributing to more units like that and more divisions within the DoW, not only in the army, but also in the other armed forces.

Also seeing how they are growing and how our partnerships with not only the end users in the government, but also in the industry side, being the OEMs mainly in defense, but not only, which is starting to mature into actual pipeline and as a result of it, revenue. Same in Europe, looking at the European market.

Obviously we have big customers there. As you all know, or most of you should know, that most of our revenue today is coming from Europe.

We have various customers there that are relatively big customers. We are expecting to see more orders coming from them during the second half of the year in the same trend that we have seen before.

That's a market that not only the existing opportunity that we have there, but also emerging new opportunity, like I was talking about the UK budget in previous slide or the German development that are happening. We are seeing a lot of movement in those markets.

Same for the rest of the world, looking on all the GCC countries in the Gulf, seeing what happening in the current war between the US and Iran and in general how it's affecting the whole Middle East, we are seeing a lot of new opportunities that are emerging there that wasn't exist before, as well as more eastern countries like India, Singapore, Japan, that we did had business in the past, but we are seeing a growing interest and demand in those countries. We are constantly having people there meeting with prospects and partners, and making sure that we are accelerating our go-to-market in those areas as well.

I think one interesting point to mention is that we are seeing this development are actually happening in orders of magnitude in terms of the programs and the number of units and quantities that our prospects and customers are talking with us about. That's why we see our opportunity ahead of us in terms of how we continue to grow the revenue and to grow the pipeline numbers.

Talking about the business model, I'll run briefly on that. Elsight business model in general is split into three main elements.

The first one is one-time hardware sale. Currently, the Halo and the Aura are the platform that we're selling on this side.

In addition to that, we're adding more platform basically. Today we have the Halo, the Aura.

We're now working on a new product which is going to go to the lowest end of the market. For those of you familiar with the term SPV or PBAS, we also want to have an offering there in this market for different programs like the Drone Dominance program or others.

Those are basically platform that customers are pay in a one-time fee. In addition to that, every customer, as long as they're using our product, have what we call the Elsight Cloud subscription.

Basically, as long as they want to use the product, as long as they're using the drone, they will have to keep and pay this recurring fee basically on an annual basis basically renewing their contract or renewing their license. While the top two are mandatory, the data usage is not mandatory.

This is where we're offering a one-stop shop basically to our customers. As I mentioned before, today we're offering different kind of communication, whether it's point-to-point, cellular communication, satellite communication.

It is part of this service. What we're offering is the actual SIM cards: the Telstra and Optus SIM cards in Australia, or Verizon, AT&T, T-Mobile in the US, and in other countries as well.

We're seeing that customers really like the fact that they can do a one-stop shop and have everything from one place. Now looking on gross margin altogether, like I said before, we are keeping super high gross margin.

Today we are sitting in 76% gross margin on average, while the hardware is somewhere around those levels, depend on the flavor of the product. The software is obviously higher than that because most of the COGS there is software and infrastructure, so that's sits in around the 92% gross margin on the software and services, which is very interesting development because looking on all the capabilities that I mentioned before—the communication, the positioning, the video and sensor processing—they're all sits here in the Elsight Cloud basically.

This is where we're expanding most of our average revenue per unit is by developing and deploying more capabilities in this part of the business model, which is basically the software, the service piece of it. Elsight is not only looking on revenue, but also looking on how we prepare to deliver those revenue numbers and how we can make sure that we manufacturing it and delivering on time despite the challenges that are currently exists in the world supply chain.

We've been asked again and again about our production capacity and everything, and I want to make a clear point about that. Today our production capacity as of today is $250 million worth of goods per annum.

We're constantly expanding it, or we constantly have the opportunity to expand it. Actually starting towards end of August, we're starting to have manufacturing in both US and Germany.

Basically we'll have Halo made in US and Halo made in Germany. Not because of production capacity, by the way, more so because of localization and tariffs and other issues that customers today or governments today wants to control the supply chain, and they want to have the manufacturing on their country's soil.

Just to give you an example of that, we're not opening our own manufacturing facilities, we're using contract manufacturers. We started to discuss with the contract manufacturer in the beginning of May after a big one.

In the beginning of May, we started to talk about sending all the manufacturing file and everything, and by mid-August, we already have the first batch ready to go. The only cost associated with this process is our people flight to Germany basically to make sure they have all the quality features and all the quality assurance processes in place.

It's a super capital-efficient model that allows us to expand our production capacity very easily without any big CapEx investment at all, including into production lines or into workforce. We're utilizing other capabilities to do that.

The only thing we're doing is making sure that we have the inventory of components to be able to deliver to customers. Is that for us to increase from $150 million to $300 or $500 million, it's more than anything go to the contract manufacturers and say, "We need more capacity."

The only cost we have associated with that is when we have the unit ready to be sold on the end of the production line. This is where we basically pay for the unit, and then we sell it.

I think that most, if not all of our customers will say that our lead times are the best in the industry in terms of from the time you put the order, by the time you will receive your goods. That will be in small orders within days, in big orders within weeks.

If it's scheduled, it will be right on time. When we schedule with an OEM that wants to have their deliveries weekly or monthly or quarterly, that will be on schedule based on those capacities again.

Beside collecting a lot of hours as we always did and continuing to collect a lot of data of a lot of flight and drive and sail hours that we're having in our customers are doing, we also working on patents, which today we still have 13 family of patents, and we are expanding that based on all these new capabilities that we're developing. Two last points for me before we are moving to the Q&A.

Again, like Mel said, we will welcome question on the button that you have on the bottom of your screen. First is a new business unit that I think during the quarter we had the first major milestone there beside having the product ready to be demonstrated, we also signed the first customer.

Customer there, remind you all, is government. This product, even though it's still in stealth mode, and I'll try to give a little more light on that, I would say that it's going for government customers, we are selling directly to government in this case.

It's a pure software solution that in some countries go to the Homeland Security office, in other it goes to the Ministry of the Defense. It really depends on where it sits within this specific country.

I think having the first customer is always the hardest, finding the first early adopter of a technology that didn't have any track in the market or any experience in the market. Having the first one always help to get the second one and third one, and so on and so forth.

It's still in the hundreds of thousands of dollars, but I think it's part of the program, and I think it's very interesting to see this development. A company or a business unit that we initiated just six, eight months ago already have the first paying customer.

Today we have engagement with a lot of other prospects and potential customers in different parts of the world that are suffering from the problem that we're solving. Now remind you all again, those of you on the line who are new, that one of the reason it's still in stealth mode is because we're protecting the competitive edge that we have here.

We still don't feel that we have strong and deep enough moat around this technology, around this solution, and we want to make sure that once we go out to the market, we already have a big first-mover advantage because currently we're not aware of any company that are going after this problem other than one small company in the UK that are more than anything doing a lot of social posts, but we have not seen any actual product that they're offering in the market. One of the point that we're taking our time with that is because we're not feeling that it's affecting our go-to-market.

Unlike Elsight and the Halo, which goes to a broad base of clients, this market or this solution is going to government, and it's going to top-down government. We're not talking with the people on the ground, we're talking with the people that are creating the strategy and everything.

Getting to them can be done without any marketing effort because it's mainly on a personal basis and connection, and we have a very strong team and advisory board that are helping us to push this to the market and getting it in front of the potential customers. Seeing the execution that we have done actually in two years and seeing the potential that we have in front of us, both from market growth perspective, new product offering, and getting into new region and new customers, I think that Elsight today is positioned in a super interesting position within the perfect storm of the uncrewed market.

We are ready to take over this opportunity with a lot of excitement, a lot of passion about the problem we're solving, about the market we're serving. Being part of this growth in the industry is super interesting for us.

With that, I'll hand it over back to Mel and happy to answer any question.

Not sure also, but please put your question on the Q&A. I think it's everyone who has question, please feel free put them on the Q&A button on the bottom.

Sure. For the two points, first of all, remind you all that the backlog is contract that we already signed, and we are delivering based on schedule.

The previous quarter number was $12 million, and obviously as you look on our revenue number, those are part of the $12 million that we delivered during the quarter. Not all of it was there, part of it is still need to be delivered like you see as part of this $3.2 million backlog that we have here.

The reason why that backlog is decreased is because we delivered part of it, and we didn't converted from the commercial discussion to contracted in the same rate. Basically we delivered faster than we are signing new contracts.

On the top of the funnel, I think that the number have grown pretty nicely. If you look on the number from the previous quarter, it was $156 million on the top of the funnel.

Again, those are accumulated numbers, the difference is not only the $19 million that you're seeing between them, it's basically add to that the difference in the backlog that was already delivered. I think overall we are happy with the top of the funnel growth that we're having today.

Remind you all that when we're talking about pipeline opportunities, we're talking about tangible opportunities. We're not putting here wishful thinking of programs that we might be relevant for, or we have seen some titles and we add them to the pipeline.

Identified opportunities are only companies or end users or OEMs that we actually have discussion with, we actually spoke with them, we have people on the other side. Those are numbers that are coming from the customer and customers that we have relationship with.

For us, pipeline is opportunities that are literally tangible, and we understand what we need to do to convert them into revenue.

For the first part of the question, like I said during the presentation, we are expecting to have more orders like we had in the first half from the European customers in the same scale. We are expecting in the second half and we're feeling comfortable there.

It's more about timing rather than a question of if. On the second part, as I said, we are seeing a growing traction in the US market and in the NATO country market.

In the US, we're looking at that as a standalone market, and we're putting a lot of effort there and we are seeing great results. Looking on our pipeline numbers, big chunk of the pipeline is coming from the US market specifically.

We definitely starting to see the results or the fruit of the efforts and the investment we're doing in this market, and part of our plan is to continue and even make those investments bigger because this is where we see a lot of the opportunities that we have in front of us is in the US market. I think that we will be able to demonstrate to the market, like I said, in the coming weeks, months, and quarters, the fact that we actually converted into material revenue and not just small numbers of hundreds of thousands of dollars, but in the millions of dollars of contracts that we will start to see even during the second half of the year.

Looking on the US market in general, we are super comfortable and confidence in our ability to continue the penetration where we started there, and those of our efforts will start to show fruits in a meaningful way, like I said, during the second half. Then

our timing there is having the prototype ready by October and GA, general availability, in January 2027. It's very much connected to the if you look on the Drone Dominance program, which that's the program we are we are targeting with this product to be ready for.

Gauntlet 2, who already started, and I would say that Gauntlet 2, which is going to happen this month, during August, we have a couple of OEMs that are going there to what called the innovation lane with our solution on board. We are expecting more OEMs to come as the main solution for their platform during Gauntlet 3 and 4, which are going to be in the first half of 2027.

I would say that the product is going to go for the upper tier of the SPV market. The reason I'm mentioning it, because there are drones that cost $600 and $800 for the entire drone or the entire platform.

That's not a market we're targeting. We're targeting the more sophisticated one, which cost low thousands of dollars.

The Drone Dominance program, for example, target price is $4,200 US per drone, including all the system on board. This is the market we're targeting with that.

We believe that we have a very, very interesting value proposition there, and we will see in the next six, eight months, both the launch of this product, and also starting to see sales from this direction.

The person who asked the question is referring to the Project Fly. It's a plan, basically, present capabilities in front of end users.

The reason I mentioned the 101st Airborne Division, for example, that's a lead or that's a result of the Project Fly process, which then translate into actual procurement. We are seeing this progress as we move along.

As I said from the first time we started to talk about this program in September or October last year, there is not budget that attached to that. It's a procurement process basically.

There is not a definitive date that says this is where the program ends. It's an ongoing program that present capabilities in front of end users.

I would say that we already generate over the first half of the year a nice revenue numbers from this program.

For the first question, like I said, 100% of the $65 million is with existing customer. Now a customer can be a small customer or a big customer, but all of them small in revenue numbers, not necessarily in the company size.

Those are all companies that we already have transaction with, whether they completed what we call smart start, which is basically the proof-of-value process that we're doing with them and they are paying for that, or they already have first orders that came in. On the second part of the question in terms of the number of different opportunities that are in there, I would say that in the $65 million, there is more than 25 different opportunities that are breaking down into this number.

Part of them are with the same customers, part of them is with different customers. In terms of the size, we're now more focused on showing the actual results and progress of revenue.

If you look on our 2025, the revenue came from 84 different customers. I would say loud and clear that there is a clear Pareto for Elsight of the top customers that are still generating most of the revenue of what we're doing.

Part of our objective for the year is to diversify not only the customer base, but also the product base and the market base in terms of region. We are seeing the result of it in diversifying the revenue.

The percentage of the biggest customers have went down as a percent of the overall revenue that we did in the first half. That's a continuous progress that we're doing without getting into names because of the reason I mentioned before.

That's the best color I can put into it in terms of the numbers.

The entire pipeline that you see here, the vast majority of it is Halo solution, the connectivity communication solution of what we're selling today. That's what we have a long experience with, and that's where most of the opportunities and the pipeline is coming from.

A small part of it is starting to be from the positioning solution, the one that I mentioned before that we soft-launched and started to see opportunities there. Looking forward, we do believe that we'll have expansion, a big expansion of the pipeline only as a result of it, because the beauty of those products is that most of them, the positioning, the communication, the autonomy, and the sensor processing that I mentioned, they can not only go on new product, they can go to existing systems that are already deployed with a software upgrade basically.

That provide a very good access, a very good distribution in the market, and we do expect this number to grow. I'll talk about addressable numbers or total addressable numbers.

Generally speaking, the non-GNSS solution market is, according to different estimation, is around $3 to $4 billion market. It's slightly smaller than the communication market, but it's a very big market, and it's parallel to that, because communication is one challenge, there is another challenge that is not necessarily have something to do with communication, which is navigation and positioning in a GNSS-denied environment.

We do expect to see a big pipeline inflection once we will start to actually include those numbers in the pipeline as we are expanding that. I think that in 2027, when we will look on Q1 '27, a lot of the pipeline will be from the new product that part of it we already soft launched, part of it we are already in the development phase, and then we'll go into the go-to-market phase.

Speaking about the stealth mode business unit, that's entirely a separate pipeline, because it's going to a new customers. I think it's too early to talk about pipeline there, because as I said, it's still in early stage.

We did sign the first customer, we are talking with additional potential customers and prospects, but I think there is too early to talk about the pipeline. I believe that during 2027, when we will start to talk about what is actually behind this business unit, we will start to talk also about pipeline and opportunities, but that will be in a separate pipeline because those two are completely separate efforts.

That's how currently the split of the pipeline looks.

Like I said before, during the previous quarters, if you look, a lot of the revenue have is orders that came in during the quarter and and quarter and was delivered in the quarter. It's about timing and the time we're getting the order basically, and then how long we have to deliver it, or what is the schedule of the delivery that the customer have.

I would say that from production perspective or delivery perspective, we are making sure that we will have all the goods on the shelf basically, once we're starting to get those contracts, it will be even faster to deliver than what it was before. That's how we mitigate this gap between the backlog that we have to the actual revenue that we're expecting in the second half, Q3 and Q4 together.

If I understand the question correctly, you see the split in the numbers here. Like I said, the bottom part of the pipeline is with existing customers, and the top part is that with net new.

As you see the numbers, we have more opportunities in the net new rather than the existing customers that we have. I would say that part of them are because of growing programs, and also because of new customers that we're talking with.

This is how the split look like today from existing or the existing design win to new design win on the top of the funnel.

I'll try to talk about top-down analysis if anyone wants to model it. Allow me not to talk about the overall defense spend of, for example, in the US $1.5 trillion or 150 or 110 in Germany of billion euros in Germany as an example.

I'll talk about from the percentage or from the budget that is going for unmanned systems, if you look on a typical unmanned system, whether it will be a drone, or ground robot, or a vessel, around 12 to 17% of it will be those solution or let's call it 12 to 20% of it will be the solution that Elsight is selling. If we're looking on the budget for unmanned systems, take from that, if you want to be conservative, 12%, that's Elsight service addressable market basically, and that's how we look on that top down.

Obviously, we also look on that bottom up, but that's our top-down approach.

It won't be three or four times the pricing, but the way we structure the pricing, if I'll go to this slide, there is the platform pricing, the Halo. Platform means the actual hardware.

It can be the Halo, the Aura, the new product that I mentioned, and so on. Then there is different modules that every customer can choose which module they want to take.

Those who will take the communication, they will pay only for the communication module; for the positioning, only the positioning module, and so on and so forth. In terms of the pricing, what we're doing is that we're reducing the platform price, but increasing the modules prices basically.

I won't say that it will be three or four times the average revenue we're getting for a single unit, but it definitely can double the revenue we're generating per unit on this layer. It's important because that's where we have the highest margin, and it's also a big portion of the recurrent revenue.

This is what we are expecting to see when we're deploying more systems.

I think that what we have learned or what the West have learned more than anything looking on the different conflict that are currently happening around the world is that the technology is moving so fast, and there is so much of chicken and egg kind of development that are happening. When someone is putting out some capability, and then there is the dot and the antidote basically.

I think that we created a big confidence to ourselves, because in the last two, three years, we have seen a lot of new EW, or jamming, EW stands for electronic warfare, or jamming capabilities. When we're talking about contested environment, there will always be new capabilities that are coming out, and then we need to find a solution to that.

I tried to answer it short in the beginning, but I would say that it's becoming one of Elsight core strengths that when we're seeing new EW or new jamming capabilities to come with solutions, I think that's making our value proposition even stronger, not less relevant.

I would say that we're constantly thinking about what are the best path for Elsight to be a big company. Our belief is that happy customer and growing revenue numbers creating happy investors, and it's never the other way around.

If we will do a listing in the US, for example, just because the short term looks great, but the long term will be bad, and obviously creating the focus for the management, mainly for Dan and me, and also the rest of the team, I think that today with the opportunity that we have in front of us, being listed in Australia was very good for us over the last couple of years. We have everything we need there, and we need to focus on expanding the revenue.

Having said that, I would say that we are constantly looking on what we will earn from being listed in other exchanges if it will be relevant, and making sure that if we would like to do that, that the path doing that will be shorter and not longer. It's definitely not something that we have for Elsight today.

I think that the cycle will be a long sales cycle because it's super sensitive system connected to sensitive databases. The upside of it is that this product is super sticky, much more sticky than the Halo within a design win, because a switch cost there is so significant and so sensitive that I think that we will have a very strong and big first-mover advantage in this market.

I don't want to comment on the specific of what will be the portion of the $20 billion total addressable market, but I think that if we'll play our cards correctly, we definitely can enjoy first-mover advantage in a market that will have a very high switching cost. That's why we're keeping it in stealth, to make sure that we're getting this competitive edge of having a couple of governments that are already signed with us, and then we'll start to talk about it publicly.

Like I said, we are looking to become the backbone of unmanned systems, and unmanned systems is everything that is unmanned, including robotics as an example. Robotics is definitely one of them.

By the way, not only with connectivity, but also with other type of solutions that we're putting out. We think that this market is going to grow very significantly, not only the defense market, but also on the commercial market, which still, let's call it, lagging behind the defense.

It definitely the next big cycle of this industry, which we're still in the defense cycle, I think that the next one will be in commercial, which will be as big, if not bigger, than defense market growth that we're seeing.

Definitely. I will give two points about that.

In Elsight in general, we're thinking that if something can cannibalize our product, we want to be the ones that are doing this cannibalization. There is a very big difference between what the Halo offer, what the Aura offer, and what the new product will offer in terms of performance and capabilities, as a result of reduced bill of material and reduced processing power, and so on and so forth.

When we're talking about small SPVs or PBAS, we're talking about platforms that are usually flying for short distance or driving for a short distance, and need much less sophisticated capabilities of what we have in the Halo. That's why we presented a new big bill of material with a product that is smaller in terms of SWaP—size, weight, and power consumption—and also by cost.

Generally speaking, those SPV markets are optimized for cost more than performance, but we still believe that we have strong value proposition to offer there. That's how we make sure that the customers that need the Halo will continue and use the Halo, and those that need a reduced capabilities product will be able to enjoy this new product or the Aura.

I think it's about timing and the schedule of the contract that we're signing and making sure that we can deliver them on time. The measure that we're taking to mitigate those risks are, first of all, making sure that we're ready in our production line to give deliveries fast once we get the orders, and also making sure that we are in a very close relationship with those prospects and customers that are expected to generate those orders.

This is what we're doing to mitigate that. Other than that, I think that we're in a good position in terms of looking on that second half of the year and also the years to come.

I think that the growth that I was talking about in the overall market will translate into very interesting growth for Elsight.

I would say in general, not commenting on specific conflict or specific area, like I said, most of our pipeline today is coming from the US market, both OEMs there and actual government customers there. Looking forward, I believe that's where the biggest market will be, as we saw in the numbers, and again, the addressable market that we have there.

I don't think that if there is a ceasefire or anything like that in any of those conflicts that was mentioned in the question will direct affect Elsight. I think that what we're seeing today in the industry is not a cyclical kind of event, it's much more structural event that governments understood that they need to steer their investment in defense to other kind of solutions, and that's what we're seeing today.

I don't think that the conflict in the Middle East or any others will directly affect our numbers in the short or medium, long term. This is how we see it.

It's much more structural than that.

Thank you everyone for all the questions. As I said during the presentation, we're trying to peg this quarterly webinars to make sure that we can answer all investor questions.

I want to support everyone for continuing sending questions through the [email protected]. We also happy to answer any follow-on questions, like I said, on the realm of what we can disclose because of the sensitivities we have as part of the business.

I want to leave you all with what I started with. I think that what we're seeing in Elsight today is very interesting traction from different markets that are not only the existing market that we have seen the last two years, but starting to see meaningful orders from other directions.

I think that in the second half of the year, we will be able to demonstrate to investors and to ourselves that we translate it into a material revenue numbers and starting to see more traction and more proof of those pipeline numbers that we presented. For those of you who are looking in this market and thinking what is the best exposure to it, I think that what special in Elsight is that we're not a platform manufacturer, like I said, and we're not only communication.

We're looking on this market much more broadly, and if investor wants to have a good exposure to this market, I think that Elsight it's been a very, very interesting spot to do that. I want to thank you all for the support, and thank you, Mel, for hosting this webinar.

Thank you, everyone.