Thank you for your patience, and welcome to Our Bond's business update webinar. We appreciate your continued interest in the company and are pleased to have you with us today. Our host today is Doron Kempel, Founder and Chief Executive Officer of Our Bond. During today's presentation, Doron will provide an update on Bond's recent business momentum, key corporate developments, and ongoing growth initiatives. He will also share management's perspective on the company's outlook and strategic priorities moving forward. With that, I'm pleased to turn the webinar over to Doron. Please go ahead.
Thank you, Ali. Thank you, everybody, for participating, and thank you for investing. It's good to have you here again. As usual, let's give everybody a chance to read very quickly the disclaimer. I know that you read very quickly, so here you go. Our intention today is to update you regarding the business momentum, key corporate developments, and specifically, we're going to talk about the Bond business. We're going to talk about the reverse stock split of 1: 20, and we're going to take some questions. Hopefully, we're going to have a little bit more time for questions and for my answers. Let's start with the Bond business update. Just as a reminder of the background, we are addressing a TAM of over $400 billion. The product and the service work as designed.
Not only does the technology work, I would say near flawlessly over nine fives, if you know what that means, very high degree of reliability already for a few years, and the service addresses the needs of our end users around the world. We have a proven ability to sell to the largest corporations in the world, and now recently, also to cities, which is very important, very promising. The economics of the business are very positive. The cost of sales is low, and the margin is high. One more word about that. We've invested significantly in the infrastructure. If we need to go into a new country as we have to Mexico, to Brazil, to France, to U.K., to Israel, to South Africa, when we do that, it requires another investment getting into a new country.
But we only do that when a customer requires us or requests us to do that. Now that the infrastructure is set for each additional customer, we have the required technological infrastructure, and sometimes we need to add more security agents, but we do that in a manner that is factored into our very high margins on a per-deal basis. So low customer acquisition cost, high margin, hence very favorable economics, a business model that is built to scale globally. In terms of competition, we do not run into competition, so there hasn't been a case that I recall in the last few years where we were selling to an account, any type of an account, they said, "No, you're not getting the business.
This is the company that gets the business, or this is the entity." What we offer does not have competition that we have seen or heard of, and we're a recognized sole supplier. When we sell to governments or to municipalities, they typically get a document from an expert in their country that says there is nothing like Bond, not in this country, not globally. Now, we believe that it's very difficult to emulate what we do. This is not something that two students and a dog in a garage can do. They can say that they do that, but would you offer your kids to be taken care of by two students and a dog in a garage? This is a very complicated business, and we ran it for about a year until I was confident to offer it to customers in the real world.
Significant moat in terms of barriers to entry, technologically, operationally, in terms of technologies, the type of advisors and relationships that we have. Growth. Now, we've made a major investment starting about February 2026. During 2025, we're very short on capital as we focus just on a few very large deals while focusing the rest of the capital on going public, which has been an expensive endeavor for us. We thought that this would be concluded October 2025. It concluded in February. So very little money relative to what we believe we should have invested went into growth in 2025. But we've started investing in 2026, and we've moved from a mode of focusing on a specific set, a small set of very large deals to now focusing on a much broader set of accounts across a few countries.
I anticipate that that is going to yield, and from time to time, we update you about wins that each in its own right is very valuable and demonstrates that what we do is relevant to humans, whether they're realtors, students, residents of cities, employees of airlines, employees of banks, employees of retail companies, and beyond. This is a service that applies to everyone, wherever they are. That's why the total available market in item number one is so high. All of these check marks are significant in understanding the value that is being created here and the opportunity that is presented here. All of those are statements about the opportunity.
Then there's also the question of availability of cash, because I assume that when investors look at the company and they ask themselves, "How much is this company worth?" They need to look on one hand at the opportunity. These are points one to seven. On the other hand, they need to look at the risks. There could be technology risks, there could be market risks, there could be execution risks. I don't think that anybody looking at this company assumes that these are major risks as it pertains to Bond, because it's clear that we don't have an execution problem. It's clear that the technology works. The markets can go up and down, but we're dealing with security. Typically, security is not impacted by market turbulence.
What's left is our ability to raise capital in order to continue fueling growth, which is why we've been raising and investing money in growth, and the question of dilution, the ability to raise capital and the implied dilution. When you think about the ability to raise capital, this company has been raising capital for quite some time, has had no hiccups, including during the COVID era, before as we were going into production, and a lot of it has to do with who are the investors, and these are sophisticated entities, professional investors, venture capital firms, yours humbly, the largest investors in terms of capital and market share, and very large, affluent family offices that you would know the names of because they own very large, recognized brands. These investors believe in the business, and they've always been investing. I wouldn't say that I'm not concerned.
I'm always concerned about all the aspects of the business, but I would say that it has been proven that this company can raise capital, therefore, we have another check mark here. This is the big picture as we descend into the details. I'd like to remind you which business we're in. Those of you who've attended the prior webinar have gotten into some of the details of that, but it's also important, or it always is important to remember what do we do at the end, at the point at which the rubber touches the road, because this also gives you a sense about the value of the service.
What I typically like to talk about in any meeting, whether it's with a mayor, with a minister, with a Chief Executive Officer, Chief Human Resource Officer, or Chief Security Officer, I talk to them about the personal security gaps that fall into two ends of the same continuum. The first problem is that a lot of the people that we care about, including Lisa, find themselves routinely in situations that make them feel unsafe, where it's too early to dial 911 despite the fact that they feel unsafe. 40% of Americans, 45% of women, 35% of men, report feeling unsafe when they walk alone at night. In the United Kingdom, nine out of 10 women say they feel unsafe. It's 88% of women say they feel unsafe walking alone at night. Smaller percentage, but still high percentage of men.
When all these humans, our family members, our employees, are in these situations where they walk alone at night, or they're in a ride-sharing vehicle, or they receive a delivery at home when they're by themselves, or they receive their dinner when they're alone in a hotel room, or any other situation. They're going to meet a client that they don't know, they're a welfare worker who walks into somebody's house. In all these situations, they feel unsafe. But since this is not an emergency, it is too early to dial 911 or 17 in France or 999 in the U.K. This is a peace-of-mind problem that impacts billions, with a B as in Bravo, people globally. It has no solution. You can dial your mom, your dad, your boyfriend, your girlfriend, but they're not professionals. You typically don't want to bother them.
People are embarrassed about the fact that they feel unsafe, and this is an unresolved problem, number one, that all of us have as mayors, as CEOs, as heads of universities, as family leaders. The other problem is that when somebody dear to us is facing unwanted company, a threat, again, in all the situations that I described in this particular photo, when Lisa is in the parking garage, when you notice that person, best case scenario, he's two cars away. He could be 3 ft away if he's just opened the door to your house, or if he's in the same car with you, driving your car. The point is that even if it's 30 ft, two cars away, it takes a man two seconds to run that distance, which means that it's impractical for anybody to complete a 911 call.
This is what we call the too late to dial 911. The terrifying statistics in the United States, according to Bureau of Justice, is that over 500,000 women are severely sexually assaulted. I'm not talking about harassments here. I'm talking about the real thing that results in medical impact. Forget about the psychological impact. But if you're an employer, it results in significant medical costs that are borne by the corporation. Then there's lost days of work. Then there's typically churn, especially if it's an incident that involves a stigma of sorts. Then HR needs to recruit new people, needs to train more people. All of this is very expensive to corporations. Where that happens on the job or off the job, we discussed that last week. It's all part of the EY report. In other words, we're always on these two ends of the continuum.
Over 10 billion cases per year in the United States where people feel unsafe. They want somebody to look after them. A smaller percentage of that, but still a number that is far too large too late to complete a 911 call. The way that Bond addresses these two problems in a distinct manner is by introducing a paradigm of preventative personal security. In other words, the reactive approach, whereby you're going to activate some button when you believe that it is an emergency, that doesn't work. It's too late. You need somebody looking after you and being able to respond in the place, metaphorically like a smoke detector at home and a sprinkler system, right? The smoke detector detects the problem in real time inside our homes if there's fire, and then the water sprinkler system might extinguish the fire. That does not exist in personal security.
That metaphorically is what Bond does. As you know, we've handled close to 1.5 million service requests and over 10,000 emergencies and life-saving situations. In other words, arguably, there is no private sector entity anywhere on Earth that has seen as much action as we have. In fact, there is no private sector company on Earth that is protecting, at this moment as we speak, more people than we do. The Secret Service does it better than we do. They're armed with whomever they protect, but they don't protect as many people as we do. We basically democratize personal security, and we do that by offering all of our members, that's what we call the end users, a variety of services that are available to them before a situation is in the too late. You see that in the green category.
Those are the preventative security services, and they include the blue bar that you see below the green. Those are three services that can be used in order to reach out to us. When Lisa is outside, not facing anybody, feeling uncomfortable, she clicks the video monitoring button, and within five seconds she gets a Bond agent on her phone who is there to look after her. With Bond, you are never alone again—
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—anywhere in the 29 countries where we operate, within five seconds, you get a Bond agent. You are not alone. If you are facing an assailant or somebody whom you feel uncomfortable with, if that person does not back off by merely seeing that you have a witness on a recorded call, the Bond agent can speak with them.
We have done that in more than 400 cases, all of them successful. Despite that, I say that we are successful in 99% of cases because we assume that there is going to be 1% that we have not yet seen in the field where somebody is going to be out of their right mind, and they still hit our member or toss their phone away, but unlikely that they are going to take them away. This is the other side of the problem that we uniquely address. Bond is transforming the world of personal security. It is the only company that has been able to deliver a solution that is effective, affordable, scalable, and privacy-preserving. We talked about why it is hard to replicate. I will not repeat all of that. I want to get to other points.
From a business perspective, as you know, the main business that we validated is the B2B, us selling to corporations, they offering the Bond service to their employees. Recently we have started selling to cities. So far, it is going well. We have won a few deals. We are in dialogue probably with about 20 cities, mainly in France and in Israel. We are starting now also to present to cities in the United States, and I think that that represents a great opportunity for us. Think about it. We come to a city. We are in dialogues with cities in France right now. They say, "We would like to buy this service just for our students." By virtue of funding the service for their students, we also get the parents.
Typically, in a normal city, that is 40% of the population of the city, just by focusing on the students and their parents that will want the service in order to basically also have an eye on the kids. Then we think that there is an opportunity in business-to-business to consumer. In other words, selling to large corporations so they offer the service to their consumers. Could be banks, credit card companies, could be the Expedias of the world, the Airbnbs in the world. We do not have deals with them. I am just giving you a sense. Lastly, direct to consumer. We will be waiting with that. That is a more expensive route to market. You know who the customers are.
I don't need to tell you that they include, because you've heard it on television, that it includes companies like Walmart and Apple and Verizon and Roche and Nike and Disney and more. You know who the customers are, and it's not a coincidence with these very sophisticated companies, buy the Bond service on behalf of their employees and then roll it out outside the United States. That means that what we're doing here is very important, very unique, and typically, when you see these types of companies buying and buying again and not churning, this is very important for anybody who knows anything about building new businesses. Third-party validation. We've covered all these points. You know who's buying the service for their employees. We save lives daily. We now have the EY report that is helping us.
Since we launched the EY report and started talking about that with customers, that has already accelerated and increased the conversion rate. When I talk about an inflection point, I say more of the companies that we speak with decide to engage. That speaks to conversion. The length of the sales cycle, I believe, is going to be shortened by that. Evidence is to come. We've just started, and we believe the deal sizes, initial deal sizes are going to be larger. All of that is already in play. We're about to cross the chasm or are crossing the chasm. This is of course not something that happens in one day, though sometimes it's marked by a large deal.
That large deal has not happened, but I will tell you that in my prior two companies, in one of them, the deal was a company named Cingular, later became part of AT&T. They bought a few million dollars of gear from that company, and shortly after that, we were acquired by IBM. In other words, that was a transformational point and inflection point in the market. The prior company, we won a large deal with a company called Allianz, 26th largest company in the world, but where we basically replaced all the gear in three data centers. Months later, we were acquired by Hewlett-Packard. I'm not saying that because we plan to sell Bond. We do not. I think that Bond is going to be a very large freestanding company. But sometimes this inflection point is marked by large deals.
When I look at our pipeline, there are quite a few such deals of that magnitude. I'm talking about deals that could be worth upwards of $10 million. I'm not promising that right now. Even if it happens, I don't know when it would happen. These are large, complicated sales processes where the company needs to make a decision with their CEO, with their board, that they're now going to fund the Bond service for everyone. We're talking about companies that have upwards of 0.5 million and 1 million employees. But I'm confident that this will happen. When it happens, it's going to transform anything. Because think about it, if Bond takes a deal like that or two deals like that, we become profitable. That changes—
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—the equation. I cannot point to when exactly that's going to happen. I'm just telling you that from my experience, speaking with these companies, speaking with these executives, that it's just a matter of time. I can't pinpoint it. Recent business momentum. You already know about municipal wins. You all know about wins in real estate. You know about the GSX activity, the excellent conversations that we have there. What I'm very happy to report to you is that if GSX happened at this point in time, we're now a month or so after that, and we see whether these meetings that we had at GSX are translating to follow-ups and momentum, and the answer is yes.
I'm very positive about what I'm seeing, and I weekly look at the funnel, so to speak, of all the deals that are coming down, or as I described it momentarily over time, and I see what is the graduation rate over phases. First meeting, second meeting, "I want you to now brief my HR team. We want to run a pilot. Let's start negotiating." All of that takes about nine months, but it is happening, and I'm very confident about that. You know about the Q2 results. Just today, we announced another deal that we've closed with a very important company that you know. It's an S&P 500 financial technology company in order to protect all of their executives and at-risk employees. This is the first step with this company.
Typically, once you get in and you do a good job, and we have been doing a good job without exception, then it starts to expand. How quickly will it expand? That depends on the overall manner in which the market evolves. All of this will happen, I have no doubt. Let's talk about the reverse split quickly. One of the main concerns that we are trying to address is this gross misalignment between the value of the company, represented throughout this presentation, has to do with a great opportunity, and the price per share. There are a lot of factors in play, including who owns the stock today, who are the main people who own and trade the stock, and what is their focus. Are they thinking about the topics that I just described, or are they thinking about the intraday ability to buy and sell?
I think mainly the latter, and I think that that's one of the things that we're going to help the market evolve towards, more long-term investors who care what happens to the company as it grows and matures. We'd like to address this misalignment that we think the reverse split helps us with. It reduces float, and it also invites into the stock some of those long-term investors that we brief continuously and are starting to invest in the company, and I know that for sure. We're also secondarily addressing Nasdaq minimum bid price requirement of $1. The split details is that we went effective yesterday, the 19th. I think you're familiar with all these deals. We now have approximately 1.63 million shares outstanding after the split. Summary. Strong fundamentals, proven market validation, significant growth potential.
We talked about the market opportunity, the differentiation, the proven traction, very strong growth indicators, significant disconnect between business value and share price that we're working to resolve. That is my number one concern. That's the one issue that we have not yet been able to resolve, and we're working on that. With that, let's take some questions.
Thank you, Doron. With the last six minutes we have left, we'll move into the Q&A portion of today's webinar and address some of the questions we've received from investors. Let's begin with our first question. Can Bond turn its broad vision into a repeatable customer acquisition and revenue engine before its cash needs and dilution overwhelm the progress it makes? Do you also feel that there will be support from a revenue standpoint to keep the stock price from significantly collapsing after the stock split?
Thank you. That's a very rich question. Thank you very much. I think that it touches upon all the points that we've just discussed. Let me try and realign them in answering this question. What we need to do is continue to do what we do, which is mainly invest in and realize growth. We all understand that with growth, everybody will understand that this is a stock that they need to own, and long-term investors will come in. Once they do, that's going to resolve the issue with the misalignment between the price per share and the value of the company. The main thing that we need to do, and that's priority number one, two, and three, is continue to invest in growth.
And we can all see how a few deals, when they arrive, will turn the tide, because the investors are probably asking themselves, why isn't there growth? Well, there isn't growth because we've made investments in some very large accounts. We haven't lost them, but sometimes, true depiction, we work with one of the largest companies in the world. They decide that they're going to start by buying the service for 10,000 people. They say that's wave one pilot. It goes successfully. We summarize the deal, and now the deal is transferred from the security that initiated it to HR benefits. We're supposed to now get the budget for all the employees of that company. That is a deal that is north of $10 million. Now, HR has a lot of priorities. They're trying to fit that into everything that they're doing. Think about it's a very large company.
And if that happens, because we know that they're very pleased and their adoption rate has been over 60% across their organization, this is going to be a deal that is going to transform Bond. When it happens, if it happens, among others that are similar, I don't know. This is what we need to do, and until then, we need to be very ginger and responsible in the way that we raise capital, because we don't want to dilute our investors. And we need to continue communicating to the market in order to make sure that we correct this misalignment of price per share and the value of the company. In terms of realizing the vision, same answer. We have the right technologies that we've invested in. I think that we're making the right steps in terms of investing and investing heavily in sales and marketings.
And I think that results are going to arrive, and that's going to correct some of the distortions that we're talking about in terms of value, price per share. Ali, next question.
Thank you. Our next question, management has repeatedly stated that there is a significant misalignment between Bond's share price and the underlying value of the company. What specific evidence supports that belief?
Well, in terms of evidence, somebody needs to run a discounted cash flow analysis and needs to project growth. We're not going to do that in the next two minutes. But if you think about at the end of the day, this is something that I touched upon earlier, there is the opportunity that is associated with a TAM, with a proven product, with the economics of the product, with competitive landscape, and with growth. I think that out of all of those, the question that is in the mind of investors, what about growth? I addressed all of that. Now I just need to prove everything that I said. On the other hand, there's the risk. I think that the risk of technology is very low, market risk is low, execution risk with this company is low.
What's left is capital risk, and I addressed that as well. I think that everybody thinks that this company is going to run out of cash, has not looked at the background of this company and who are the investors. There's still the dilution issue that we need to address, and I believe in the next few months we will. But it's completely normal to experience dilution when you're investing in a company that is going to do something that is monumental. There is no investment in these companies, even if you're OpenAI or you're Apple or you're Amazon. Dilution is part of the game. You try to minimize that by making sure that the value of the company is high. But we all understand that even the Amazon stock was below $1 at one point in time.
If you look at Nvidia, they suffered low price per share as well. I'm not saying that we're Amazon or Nvidia, I'm just saying this reality is not new, and it's not unique to Bond.
Well, thank you, Doron. Unfortunately, that's all the time we have for questions today. If we weren't able to address your questions or if you have any additional inquiries, please feel free to reach out to us at investorrelations@ourbond.com. Doron, I'll turn it back to you for any final remarks.
Thank you, everybody. Appreciate it. investorrelations@ourbond.com. Have a great week.