Good day, and welcome to the iAccess Alpha Virtual Best Ideas Summer Investment Conference 2025. The next presenting company is Mobilicom Ltd. If you'd like to ask a question during the webcast, you can do so at any point during the presentation by clicking on the Ask Question button on the left side of your screen. Type your question into the box and hit the send button to submit. I'd now like to turn the conference over to today's host, Oren Elkayam, Chief Executive Officer of Mobilicom Ltd. Sir, the floor is yours.
Hello, and thank you very much for the audience and for the opportunity to present Mobilicom. Mobilicom is a company that is traded on the Nasdaq. Our ticker is MOB, and we have another ticker, MOBBW, for traded warrants. I would like to start with a short introduction of the company. In Mobilicom, we are designing, developing, and selling cybersecurity and end-to-end solutions for drones and robotics. What that means is that we are providing the critical systems and solutions for drones or robotics manufacturers. We are not doing our own drone. We are doing the elements that are going inside those drones or robots that you see. We are providing the cybersecurity, the software and the hardware elements that are the heart and soul of those drones.
Those are the elements that enable them to operate, enable them to safeguard themselves, enable them to communicate, and so forth. We are unique in the market by the fact that we are providing the cybersecurity and have a comprehensive cybersecurity approach to this market that is only in the initial stage, and that we are providing a one-stop shop of critical systems and solutions, both hardware and software and cyber, to the drone providers. It's a multinational company with operation in the United States, in Israel, and in Australia. We have numerous customers that are already working with us in 18 countries and patents that are already claimed and granted, and additional technology that is created constantly. We are looking on the market of drones and robots.
We are focusing mainly on the small size angle of this market, which are elements under 250 lbs, still big. Anything between the mini, the small, and medium size of those drones. The interesting portion of this market is that we are targeting both the defense and commercial market segment, the professional market. We don't do consumer, don't do recreation, only those that need our unique IP and know-how within our product that will create differentiation, and therefore we can claim high gross margin for our solutions. The important part of this market that is scaling, and we are just now in the beginning of this market evolution, is the fact that small UAS drones or robots tend to be replaced very fast because they are damaged very fast.
Therefore, every 3-4 years, you have to replace your entire fleet, which makes it a very lucrative market, that the space of replacement is very high. Therefore, there is recurring business even in the hardware business, in addition to the software and cyber, which is completely software's SaaS approach. Therefore, it's a very interesting market to be at. The market is ramping up significantly, and we are already covering the important segments of this market. As the market will grow and the OEM manufacturers that we are working with will sell more, we will grow with them and increase our market share as well as the volume of our sales. One of the important factors about Mobilicom is the fact that we are an end-to-end provider.
If you are looking on any drone in the market or robot, you will see that there is many hundreds of pieces inside, but only 9 or 8 of those systems are the important elements that cater for 80% of the drone or robot value. We focus on those. You can see in the diagram in front of you the critical systems that any drones or robot must have in order to serve and perform the mission. The red sections are already elements that Mobilicom provides. What is clear from that is Mobilicom, as an end-to-end provider of several critical software, cyber, and hardware pieces, is already able to support multiple elements to the manufacturer, and by that, a significant value of the entire system. We are not in the business of selling additional drone to some market application.
We are in the business of selling the critical systems to all drones or robotic manufacturers, and by that, we are unique. That set us apart because we don't care about the logo on the drone as long as they are using one, two, three, four of our systems inside, and we are getting the majority of the revenue from their sales. If you would like to compare it, we are very similar to the car industry. When, as the market became more and more mature, the car manufacturers are producing the brand and solution, but they are all buying from the large providers like Continental or Bosch that are selling to all car manufacturers. In some sense, Mobilicom is the Bosch or Continental for the small drones or robot manufacturers.
The advantages of working with an end-to-end provider like ours versus others is the fact that we can enhance performance as our systems were designed to work perfectly with each other, so the performance of the system is much better. We can bundle the solutions together. It's cheaper for us to bundle, it's cheaper for the end customers to use our solution, and that's an advantage as the market is scaling. We can enhance the security and cyber of the solutions, which are becoming critical factors going forward because we cover all the aspects and provide the entire solution. Therefore, working with an end-to-end provider has very great advantages on the market. If you are looking on the next slide, we can see how the elements that Mobilicom is providing are actually working together in a typical deployment of drones or robots.
We can see in the center a diagram that shows multiple drones in the sky on the right and left side, being piloted by teams on the ground, sharing information with mobile teams on the scene, and they are being monitored and supervised by headquarters in the region, which is a typical operational scenario. It doesn't matter if it's an energy company, utility company, or surveillance or defense operation. Let's see where Mobilicom solutions are actually playing. We have the SkyHopper data link family of products. Those are the elements incorporated on the drones and robots that are sharing the video and data to the controls of the operator on the ground and to the users that would like to get live feed of the information. We have mesh networking solutions.
Those elements enable to interconnect multiple drones and robots to a fleet or swarm operation, because as the market will become more mature, operation will not be one-to-one, but many of those elements communicating between them and perform the mission together. That's the solution that will enable that. We have the Ground Control Stations. Those are consoles. Okay? Those consoles are providing the software and hardware and joysticks and others to receive the information, but also control the information in live. We have a set of multiple product in this field. Now we are coming to our software and cyber solutions. We have the ICE, which stands for Immunity, Cybersecurity, and Encryption, which is a software that enhancing the radio to overcome the challenges that we see today in the field and definitely in the battlefield of operation under jamming, interception, and electronic warfare.
We are unique in that. Last but not least, our great capability in the platform security, where we are the first in the world to provide cybersecurity for safety, security of the entire platforms, and we'll discuss that later on. Much like the cyber revolution happened in other fields, banking or areas of healthcare or Industry 4.0, robotics, drones, and autonomous platform will have the same thing, and we are unique in that because we are first to implement it. We can see that Mobilicom's solutions and platforms are currently covering the different operational scenario and players in such deployment. The company is designed to concentrate on and focus on the critical challenges that the industry is solving, and by that, enable the growth of the industry and the growth and footprint of Mobilicom.
First and foremost is the cybersecurity threat that we see that is evolving and growing. It's an obvious thing. As deployments are starting, cybersecurity is ramping up, and there, more and more solutions are needed. We are unique with the comprehensive suite of solution based on the U.S. standardization activity that we've been part of. That is the first solution in the market that provide active and continuous cyber detection, monitoring, and prevention of incidents and vulnerabilities. As those platforms become more and more autonomous and operating by themselves, the fact that they are now not secured at all is critical.
As the problems are starting to occur, standardizations and requirements will enforce that, as well as we anticipate that also the elements of insurance companies for coverage, and therefore everybody will be mandatory to use those, and we are first with solution in the market, and that's clearly solving a challenge that we are solving. The business and the entire market is showing scalability. Everybody is learning from the Israeli operation and the Ukrainian operation that are scaling the numbers of usage of drones dramatically. The Ukrainians are already using 2.4 million drones a year, and that means that the scalability requires change in the pricing, and we are enabling such solution, but also maintaining high gross margin. There is other standardization and complex thing that we have achieved with our Blue UAS unique certification for the U.S. DoD, one of few players that have that worldwide.
The NDAA, which is according to the government in the United States, a trusted cyber, and so forth. Thanks to the fact that we are now part of a very close number of providers that is certified for U.S. and for NATO, and we are being used by great number of companies. You can see on the right side some of Mobilicom customers today. We can see large companies like Airbus, the biggest aviation company in the world, that chose Mobilicom integrated for one of their platform, which is important. We see Teledyne FLIR, one of the huge conglomerates in the United States and one of the biggest players worldwide, also in this field and providers to the DoD. They are a New York Stock Exchange company, of course. ST Engineering, one of the biggest conglomerates in Asia-Pacific.
All the three biggest players in Israel, the U.S. DoD, and the Israel Ministry of Defense are some of our partners and customers. With the next slide, we can understand the go-to-market strategy of Mobilicom. It's built on the idea of design win, which means that in the first phases, we are working with partners that would like to use Mobilicom as their solution of choice for the next robot or drone. Then there is the commercialization phase, done by the partners and customers themselves without Mobilicom involvement. As they are growing, we are growing with them automatically. In phase one, we are being introduced to these customers and working with them and convince them to choose us as a partner. Phase two is engineering work with them, supplying the software, the cyber, the hardware pieces that are the heart and soul of their solution.
Then this is the work that has to be done that takes many months, sometimes 6, sometimes 9, sometimes 12, depends on the solution. In phase three is when they are doing the certification in the market, either by FAA for commercial application or by the DoD for government applications. Only after they are certified, they can go forward to commercialization. Once they're certified, changing one of the building blocks that Mobilicom is providing will require them to go back to phase two and do the integration all over again and do the certification all over again, which is seldom something that they choose to do. Therefore, it's a sticky business model that guarantee in the commercialization phase, long periods of revenue for many years, because it's actually solutions that are certified.
In phase four, the customers are feeding the market and going to different programs and units and deploying in order to educate the market and build their audience and customers. Phase five is when they are experiencing high growth and mass production. As they are producing in volume, we are producing in volume with them in order to fulfill their needs. This is the revenue ramp-up significant stage. Phase six is unique to Mobilicom alone because we are able to cross-sell the cyber and software on top of the hardware elements we sold earlier, and by that double or triple the revenue from each customer per year, or to cross to another platform by the same manufacturer.
Those are the advantages that only end-to-end providers that have an array of solutions that can come one on top of the other can do, and others that bring one piece of the game are unable to do. I would like to spend the next few minutes on some of the examples of Tier 1 real case studies that are right now growing with us, and I would like to use this customer. The first one is an American large corporation. We've mentioned their name. They are one of the top three players in the United States selling to government as well as to commercial. I think that they are number one in numbers, but it doesn't matter. They are huge. They chose Mobilicom after they carefully tested a few other solutions, and we won based on performance in the field, size, and price.
We've done engineering process for the new innovation that took them almost 2 years because it was the first thing, and we expect that others will go faster, and they will do faster. Here we got several purchase orders, each one small size, just showing engineering continuity. We move to the next phase, when they certified with the U.S. DoD, and then they were able to see the market in phase four. In phase four, we received a sequence of purchase orders starting from late 2023. Each one of them enabled them to deploy additional units in the United States. By that, we show a scale of dramatic pipeline of programs that they have chased. Every quarter, we are getting a purchase order, which is for a few hundred thousand dollars that shows continuity and work.
The important part is that now they're entering fifth phase, which, remember, this is the scalability, their scalability with our scalability. Why we believe that that's the case is this is because they're running after six programs of record. Program of record is a term under the U.S. government of a long-term dedicated budget under the Pentagon or the DoD for many years, usually 5 or 10 years, that can be extended again and again, that cannot be changed and dedicated for a program in large scale manufacturing, deployment, support, maintenance, and so forth. That's why it's a holy grail that everybody's looking for. They are already chasing six of those. Two of them are coming right now to the final decisions. They've been in the shortlist, and they have high likelihood of winning those.
They will make announcement based on DoD decision in the coming months, and therefore, as they are shifting to that will guarantee many years of production and deployment. Remember, those drones are one-time use drones or short-term use drones, so you have to replace them again and again and again. This is important as well because they have already established and built a production site in Tennessee to fulfill their deployment and mass production, which means that they mean and believe that they can win volume, and they are scaling in their activity. I would like to mention that if, let's take some numbers, and small numbers. Let's assume that they are doing only 5,000 units a year of this thing, which is very small. It is translated for Mobilicom to $15-$20 million in revenue. It's based on one product into one platform.
If we have more platform and more product, that will double or triple. We intend to expand with them on those additional capabilities. That shows that just one program with one of those customers can scale us dramatically in revenue and ramp up from there. This is in phase five. We have good reasons to believe that they have high likelihood that in the coming months, they will be announced as winners to one of those programs, or maybe few, and that will completely change the game. That's one of the growth that we anticipate. We have another case study with an Israeli tier one player that is providing much like the American one, is a great provider selling worldwide. This is a giant company in loitering kamikaze drones that are exploding in the end, replaceable immediately, one-time use.
They are one of the biggest vendors in the world. Under their family of Spike solutions, they already sold $10 billion of solutions in different large mid-size. We are incorporated into their new mini-solution. We passed all the process with them. We've done here 2 subsystems, our Mobilicom, the communication elements to an assistant and the controller. We have higher value within the subsystem. They've done initial penetration into European market, which is one of their biggest market. They're selling to 30, I think 30 or 32 of the NATO countries, which is a lot, and 40 states around the world. We have sequence of purchase orders for initial production to seed the market, and there is expectation that they will scale again with the win and the investment in Europe to high number of installations.
Like they succeeded in the additional product in this family, we expect them to scale with this product. As they are winning, we will scale with them in the coming months. Let's move to the next. We understand how some case studies of existing customers already moving to scalability, which any one of those wins in one of the programs can dramatically change Mobilicom, and we anticipate some of those things could happen in the coming months. Let's understand about another milestone that Mobilicom has achieved, which is called Blue UAS. Blue UAS is the certification done by the U.S. DoD in order to enable safe drones and robots to be used under the government for federal use cases, for defense use cases, so forth.
It's expected to increase into commercial applications as well because they don't want solutions coming from China or using subcomponents from China to be used in the United States because of the security issues that it's related to. To be a Blue UAS certification and platform, you have to use subsystems that are Blue UAS framework, and that's the idea. What happened is that Mobilicom, after thorough work of the last two years, have five and multiple products of Mobilicom were accepted just recently to the Blue UAS framework, which means that we are part of a small amount of vendors that are able to produce elements that are going to the U.S. government and are on the trusted, recommended list of the U.S. DoD. It can be seen. The list is public.
Just put Blue UAS framework, and in the subsegment of networking communication and sort, you will see multiple products by Mobilicom. There is only five vendors worldwide that are selling into that, so the market will be divided one way or another between those five vendors, which means that we can expect scalability and new business. Why it will change the Mobilicom map and growth is because this recent win will allow us to access multiple programs and be recommended and used by tier one players in the United States that want to be Blue or required or mandated to be Blue. It will open the door for large-scale activity with additional vendors. The fact that we are providing combat-proven used solution with great advantages and affordable pricing and very small size, put us as a very unique candidate, especially with our cybersecurity features.
That's a big milestone that is going to increase the usage of Mobilicom and accelerate growth. Few figures about the market itself, which is expanding. We see that the market is expanding rapidly, and we see the requirements are building up. Any of the recent events is if it's from the Ukrainian use cases that are huge numbers exceeding 2 million drones a year. You understand that the 5,000 a year, as I mentioned earlier, is a very small number. You can see use cases obviously with the events of the Israeli deployment in Middle East conflict, large usage of drones and autonomous platform, U.S. preparing for sanctions and supporting Taiwan with special budgets or closing the gap with China, with massive budget being allocated in programs. All of that is pushing forward this market in Europe, in United States, and elsewhere.
The cybersecurity effects and the issues are all showing that Mobilicom solutions are right in the middle for that. If we are looking on the next evolution of the company and why Mobilicom will scale and how it will scale, it will be built on three pillars of growth. First is existing customers that we are working with on the last few years, okay, that are going to scale dramatically because they are getting to the programs of record win. If they are going to mass production, we will win with them, and we anticipate that some of them will happen in the near future. That's the first growth that can bring the company to cash flow positive and very successful growth.
The next thing is based on the recent win of becoming a Blue UAS approved shortlisted companies that are on the recommended list of the DoD, and that will open the door for additional fast-track sales and partnership with the tier-one players. The next one is our innovation, mainly on the cybersecurity and autonomous platforms built on NVIDIA AI and Qualcomm AI machines, which we are unique at. We are the first to market with solution, and that will bring by itself additional growth to the company. We have three engines or vectors of growth. Each one of them separately is transforming the company. All of them together in a sequence will accelerate the company to new heights. We are building this position by a sequence of releases that was published, but if you connect the dots, you understand all the achievements that we've done.
We can see some of those members that are experienced members in our team that are working on that. Financially, the company has 7.5 million ADR shares traded on the Nasdaq, very limited amount. We have warrants that are in the money and additional warrants listed or traded. Altogether, they can represent $16 million. According to the recent report, we had $8 million at the end of last quarter. We have strong cash position. We are consuming around $300,000 a month, which is very little. The company is already on the verge of cash flow positive and any new programs will completely transform the company. We have no bank loans, no loan and no debt, no convertibles, no credit lines. We understand the situation as a clean company.
I would like to skip to some comparables, and this is few companies that are pure play, either hardware or software that exists on the Nasdaq. Most of the companies out there are doing drones, which is not Mobilicom case. We are much like two of the others, like UMAC, Unusual Machines, and Paradym. One is doing just hardware, small, simple hardware, really around $50-$60 per piece. We are doing elements that are highly IT-oriented with thousands of dollars per piece. Paradym, which is doing amazing AI autonomy capability software, and we are doing equivalent cybersecurity software for the same AI machines. You can say that Mobilicom has assets that Unusual Machines and Paradym, similar assets that both of them have. Therefore that's where pure play list of companies that we can compare ourselves with.
If you are looking on their parameters, which are from the end of May, obviously now it's much higher for all of us, but the matrix is the same. By any parameter, we have a very good position because our multipliers are EV to revenue is an amazing situation. They are above 30, we are around 1.5. We have a certification, we have low burn rate, we have cash to EV, which is significant position, no debt, and so forth. If you compare, you can say that our assets is very similar to the assets of the combined two businesses. It's only market recognition that should translate to that. With additional few wins that are going to happen, as we believe, soon, we will get there significantly. We have limited time for Q&A, so I'll try to answer some of your questions.
One of the question is how we differentiate Mobilicom cybersecurity communication system from other small drones communication peers. There are few communication peers in the market that are providing. I mean, one of the systems that we are providing is communication. We have other elements. Cyber wise, we are the unique company that only we provide cybersecurity for those markets. Yes, they are having some communication, great companies that are doing nicely. We are the last one that joined, of the five in United States, that joined the Blue UAS, and we believe that it will open the door for scalability because of our cybersecurity advantages on top of the communication. Timeline for revenue.
Timeline for revenue, as I mentioned, we anticipate that with the win of some of our tier-one players, and I've shown some case studies of specific companies that's supposed to get their wins in the coming months. As they will transform to mass production, we will transform to mass production and scale with them. We believe it's a short-term thing. In addition to additional revenue that will come from the cybersecurity, and growth in market share because of the Blue UAS certification that we just recently won. Just the existing customers we have will scale in the short term. One of the questions, if the most of the purchase orders that we received are for pilot and testing and not for production.
As I explained in the go-to market, in the first phases 1-3, the purchase orders are small because they are building the engineering. Much like if you are chosen as a provider for Ford new car, and you're providing the engine for the car, in the initial stages of engineering and testing and validation, they are not buying volume. If they are starting to produce first productions batches and then ramp up to mass production, the volume is created. You know that we are the vendors of choice for those players. You know that they're most likely to win the Programs of Record because they are one of the biggest players worldwide and in the United States.
We believe that with that statistics and the fact that they are winning on other fronts, they have good position to win, if not all the programs, some of the programs, and we just need one of the program to happen, and we believe it should be happening in the coming months, the first ones in 2025 and scale in 2026, but the first signs are there. From the moment you will see that the first COs that we will get on a quarterly basis is not hundreds of thousands, it's $1 million, $1.5 million, $2 million, that means it's already happened. This is the sign. You've seen that means that it's already happened. On top of that, we will have acceleration with the Blue UAS and the fact that we have succeed with the cybersecurity being first in the world.
Someone asked about Palladyne AI and new market, can we incorporate with them? Yes, definitely, we can incorporate with them, and we can work with them. We are not competing. We are able to cooperate, and that will scale the Mobilicom market share and growth. I think that the time is running up, and I think that we have to conclude. Thank you very much for being there and listening to our lecture. If you would like to have more questions, my information is available, and we'll be happy to provide more info.
Thank you.
Thank you.
That concludes Mobilicom Ltd's presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.