Our Bond (BND) Q2 2026 Earnings Call - Enterprise ROI Validation and Municipal Expansion Drive Growth Strategy

Moderator: While we still have people joining, I suggest we begin. Would like to welcome Doron Kempel, Bond’s founder and CEO.

Doron Kempel, Founder and CEO, Our Bond: Thank you, Marlee. Thank you everybody for joining us, much appreciated. We’re going to discuss our earnings for Q2. In terms of the process, let’s first allow all of you a second or two to read this statement, because some of what we say may be construed as forward-looking statements, and this is a disclaimer 2122. In terms of the objective of this session is to review Q2 performance, understand the key drivers, and discuss the priorities for the remainder of the year. Also, very importantly, to give you my interpretation of what’s going on and what’s the big picture. In terms of the agenda, we’re going to talk the Q2 highlights, key wins, and developments. Then we’ll discuss the financial performance, results, and key drivers. Then forward outlook, opportunities, and priorities. Then we’re going to open it up to questions, which Marlee will orchestrate on our behalf.

With that, let’s remind you all of what the Bond mission and direction is. As you know, we’re democratizing personal security, and our aim is to be the largest personal security and peace-of-mind company in the world for all. You’re all familiar with that. In terms of context, let’s also remind everybody where we are. Before we disappear in the trees of Q2, let’s understand the big picture here, which is that the largest companies in the world already offer Bond to all types of their employees. This has never happened before. This is a new reality. We’re not just offering personal security executives or to traveling professionals, together making up less than 1% of a corporation. We can cover, and are covering, everybody. So let’s think about who some of our customers are. Given that we’re offering security, I’m very cautious.

I don’t want to give their names, but you know the names of all of these companies, including one of the three largest companies in the world in terms of number of employees, one of the three largest companies in the world in terms of revenues, one of the three largest companies in the world in terms of smartphones, one of the three largest smartphone vendors. You know who that is. One of the three largest companies in the world in retail, in media and entertainment, in telecommunications, in sports apparels, and companies, sport apparel companies. As you know, this is the third company that I’ve founded and am bringing to market, and I’ve never been so fortunate to have companies like that being our early adopters. So something very big is happening here.

For those of you who follow companies, though not only when they’re public and mature, but also towards or during their progression to becoming public. Bond has become public relatively early, but this is very meaningful. The reason that they’re doing all of that is, of course, they care about their employees, but in addition, something that they recently announced, EY research. We announced that on July 29, a couple of weeks ago. EY has conducted a research interviewing a lot of our customers, law enforcement, academia, other statistics that are available by the Bureau of Justice, FBI, Secret Service, et cetera. They have concluded that when an employer in the U.S. offers the Bond service to all of their employees, they should expect a bottom-line savings of anywhere between $181 and $280 per employee per year.

If you’re a company the size of, let’s think about the three large telcos in the U.S. They’re Verizon, AT&T, and T-Mobile. Each one of them is about 100,000 people wide. That means that a company like that, I’m not saying that they’re our customers, I’m saying a company like that, but one of them, by the way, is our customer. A company like that, if it gives the Bond service to all of their employees, they should expect about a $2 million, excuse me, a $20 million saving, right? 100,000 employees times, say, $200. That’s $20 million bottom-line savings. $20 million. What does it take for a company like that to generate free cash flow of $20 million? Probably something like 10 to 20 times that number in order to go through all their costs, their COGS, their cost of operations, their various fees, et cetera.

This is a number that CFOs cannot be oblivious to. This is basically the change that is being introduced right now into the market when we’re sharing the EY report with chief security officers and tell them, "Hey, you need to make sure that HR and finance are aware of that." We’re already seeing some of the benefits of that. Just to put things in perspective, Bond is already the largest provider of personal security in the world, if you just count the number of people that we take care of. There is no other company in the world that offers personal security to as many people as Bond does. I’m not saying that we’re offering armed security, I’m just saying that we’re offering personal security. This is just to put things in perspective about the forest rather than the trees that we’re going to drill into. Developments.

First of all, let’s look at traction with cities or within cities. This is a new development in 2026. We started dialogues with cities in the past, but we’re seeing some very exciting developments with cities. Let’s start with a city of 270,000 residents. This is a city abroad I’ve already updated you and updated the market about the fact that we signed an agreement with them to offer the service to all residents. But since the last time that I’ve updated, we’ve started onboarding them, and we’re seeing very positive results. 60% of all residents who are being informed about Bond, could be that somebody’s now asleep in their living room, they don’t know about Bond. But from the ones that have been informed about Bond, 60% adopt. If you look at any other consumer services that are being consumed via an app, this is a tremendous statistic.

By the way, it’s very similar to the stats that we see when corporations inform their employees about the fact that they have made Bond available to them. So here we have a city that has purchased the Bond service on behalf of all 270,000 residents, and on the other side, we’ve had experience with corporations that have done the same on behalf of their employees. What we’re seeing is 50%-70% adoption across this, which is very important and very valuable. There’s another city of 1 million residents. I never share the name of that company. It’s actually Jerusalem. So Jerusalem is a very important city because everybody knows Jerusalem. It’s referenceable worldwide. It’s also a very complicated city in terms of security. The 3 major religions in the world live in that city. There’s a lot of friction, so it’s a very diversified city.

That city, as I’ve already informed, has conducted a pilot that covered both residents and city workers. The pilot was very successful. We were identified as a sole supplier. So they reached out to a third party. The third party, who’s a former Brigadier General in police, reported to them, developed an analysis that Bond is a sole supplier. In other words, there’s nobody else that offers the Bond services in the world or in Israel, which is where Jerusalem is. They’ve decided to start with buying Bond for all 10,000 city workers. Last time that I talked about it, I think it was on June 16th or 17th, I’ve announced the fact that we have been verbally given the deal, but we haven’t yet completed the contract. We were verbally given the deal but haven’t completed the contract.

Since then, we have signed the contract with them and have started onboarding their city workers. This is very exciting. This is also very important. This is a very important referenceable account. The next point is that we’re also in dialogue with 8 other mayors across 2 countries that are focused countries. The other cities that we’re in dialogue with, there are 3 other cities that we’re in dialogue with at the mayor level. In one of them, we’re in dialogue actually with the prime minister. That is moving very well, and I’m very positive about the potential of cities because think about it. When we deal with a corporation, if it’s a large corporation, they have what? 100,000 employees? 200,000 employees? There are very few companies, maybe a handful of companies that have 1 million or 2 million employees, but that’s it.

The largest company in the world has 2.1 million employees. Once you get to play with cities, and cities want to fund this on behalf of their residents, we’re talking about cities that might have 2 million, 5 million, 10 million residents, which is a much larger funnel towards the people whom we want to protect. So this is all good news. Note that the city of 1 million residents that I just referenced, this is the first time that I’m sharing with you, this is the city of Jerusalem. I’ve already announced on the 17th of June that we were awarded the deal verbally but didn’t yet sign the contract. There were still negotiations going on. That is now a signed deal. We’ve started onboarding. I also announced on June 17th, I believe, that we have won a 3 million government contract.

I said on June 17th that we were awarded the deal verbally. They told us, "You won the deal." Then we were still working on the contract, and we continued to negotiate. Unfortunately, we have reached some points that, from my perspective, are impasses. We are not going to do this deal at any cost because we do not want to get into precedents that are going to be unhealthy for us relative to other customers. There are certain conditions that we demand when we get into a deal that includes terms of payment. It includes allocation of risk. What are you responsible for? What are we responsible for? If we are responsible for your people, there are certain things that we expect you to do. We also expect you to be responsive.

If we call somebody on the other side and they do not respond, this is a very bad sign for us because we are dealing with security. We need everybody to be very responsive. It is my view, with regard to that particular deal, that it is not going to happen. We are still in dialogue with them. Things might change. But I would like everybody to manage their expectations as I do mine and the expectations of the team at Bond that given where we stand right now in the dialogue with them, this deal is not going to happen. Just wanted to update you about that particular point.

The good news, if there is good news in that regard, because we wanted that deal if we would have gotten all the conditions that we require, is that this is going to have no impact on cash flow in 2026 because that deal would have required us to make some investments in order to handle that particular deal. That deal does not 100% fall into our main course of business, but we wanted it because we wanted the people that are in the institution that we protect. That is another update for you. I remind everybody the vision for Bond which is to be the number one provider of personal security and peace of mind around the world, and we are on our way to accomplishing that.

In so doing, another concept that we discussed in the prior webinar is there is a certain pattern, there is a theory about how new transformative technologies get into markets, and we are still at the visionaries level. All of these largest companies in the world, and now cities, some of them are the most recognizable cities in the world, like Jerusalem, they are all visionaries. In other words, they understand something that the pragmatists, which is the majority of companies, will want more evidence for before they adopt. The EY report is that evidence. In my mind, the combination of referenceable accounts, the largest ones in the world, and the EY evidence that there is positive ROI, that is the evidence that is now going to propel us across the chasm from visionaries to early majority, which is the far largest market.

When that happens, all of you who are familiar with this theory understand that everything becomes easier. Suddenly, the salespeople become superstars because they get calls. They do not need to chase. They are being called by customers. That is where we are.

Moderator: 30 minutes remaining.

Doron Kempel, Founder and CEO, Our Bond: Thank you. Now, let us talk about the financial aspects. We have in Q2 reported improvement to our operating leverage, 41% sequential reduction in operating expense, 28% sequential improvement in net loss. We are growing liquidity. We finished Q2 with $5.2 million of cash. Now let me say something that I think is idiosyncratic to Bond, unique to Bond. When you look at normal companies, you want to know that they have cash for, I do not know, two years, three years, four years, et cetera. We do not want to take cash for two or three years because we do not like the price per share. We think that there is a gross misalignment between the value of this company that, in my humble opinion, is going to be one of the most impactful companies in the world in terms of the livelihood of people and one of the most profitable companies to investors.

That is my humble opinion. That is why I invest. That is why I am the largest investor in Bond. I do not want to take more cash than we need in order to do what? Execute on our growth strategy. You are not going to see us raise a lot of capital at this valuation. We are just going to raise the capital that we need in order to execute, and at some point in time, the company is going to be profitable, and then we are not going to need to raise as much. But right now, priority number one is growth. We have a growth strategy, and we have as much capital as we need to fund that strategy. Also, connecting the dots for everybody on this call, notice that when this company, Bond, needs capital, we can go to our investors and ask them to convert $3.3 million into stock.

We announced that on the 16th of June. $3.3 million of debt was converted to equity at a price per share that was a 4x premium over the market value per share. When we asked the other investor to postpone payment on the debt, this is a company, this other company called Eastward Capital. They were a venture debt provider in my prior company and the company before that, so they have made money with my prior companies in the last 20 years. They’re not in a rush. They gave us $10 million already in 2018. Since COVID, we have not paid a dollar. We have not paid a dollar. That’s just accrued in terms of interest rate. They converted half of their debt into equity.

When I called them again, something that I’ve announced on the 16th of June, and asked them, "Please postpone a million dollars," it was $9.5 million. Excuse me, "$950,000. Push them out of 2026 because I want to put the dollars into growth," they agreed. In other words, when the market thinks about this particular company, remember who are the investors behind the company. Remember that these investors have always had capital for the company, and as you know, I personally have provided a revolver line of credit to the company up to $3 million. If the company needs money, I can give them non-dilutive cash at I think just below 4% per year. That’s the lowest interest rate allowable by law.

You can think about the company as any other company, or you can think about it within the context of the idiosyncrasies that have followed this company over its life since 2017. We have enough capital at all times in order to execute on our growth strategy, and at the same time, we don’t take that for granted, and we’re being very sensitive to dilution at this moment in time where there is such a gross misalignment between value of the company and price per share. We’ve strengthened the balance sheet. I’ve already talked about that $4.3 million reduction in debt. That’s the 3.3 that was converted to equity at a 4x premium on the price per share in the market and about a million that was pushed out from 2026 to 2027.

Lastly, this is the non-dilutive working capital revolver that I referenced earlier, and I think that these are important points for you to know. Summary and outlook before we open it up to questions. I’m putting everything in vogue. Proven operationally and technologically. Remember, you’re not investing here in a company that is as mature as Verizon or Disney or Walmart. You’re dealing with a company that, in normal circumstances, would have stayed private for a long time, that you would not have had visibility to. But this company is now public, I’m talking about Our Bond, and it’s important for you to know that everything that we do that is unique, that is first of its kind in the world, is operationally and technologically sound. It’s proven, it’s very stable. We’re proven commercially.

The largest companies in the world are buying the service, they’re paying, the margin per deal is very high. Now we have cities that are also joining along. There’s no direct competition that’s observed. There hasn’t been a customer or a prospect that I met with over the course of the last few years that said to me, "Well, there’s somebody just like you." If they say, "Well, I’ve seen something like it," I say, "Well, let’s double-click on that. What do you mean something like us? You mean somebody that has an app?" Yeah, you can say that I’m like Michael Jordan. We both walk on two legs, but we’re not the same. I’m giving credit to Michael Jordan, clearly, not to myself. So there is no direct competition anywhere in the world. I summarize meetings with prospects and customers.

I tell them, typically when I end these meetings, I’m asked by the chief security officer or by HR, "Remind us, Doron, because you’ve talked now for 30 minutes, what is it that distinguishes Bond from anybody else in the world?" Say, well, first of all, everybody’s offering reactive security that doesn’t work. Nobody completes a 911 call. Nobody pushes a panic button when they’re facing an assailant. According to the Bureau of Justice, 500,000 women are raped just in the United States every year. Not harassed, not attempted, raped. It does not happen. The panic button is in the ability to dial 911 anywhere in the world does not work when you face an assailant. That’s the reactive approach. Doesn’t work. New paradigm by Bond, preventative security. We are available to your employees, to your family members before it’s an emergency, and think about the capabilities of that.

We offer deterrence over the phone, and in my mind, in 99% of situations where somebody’s going to face somebody who might have bad intentions, in 99%, we’ve thus far seen 100%, but I say that in 99%, because some of them are going to be out of their minds, that will deter. This is a different paradigm. Think about the depth technologically and in terms of human operational excellence that we deliver. We deliver 15 services. We respond in five seconds. Nobody does that. It requires a completely different operating model. No competition observed, and tying in with everything that I said, significant moat. If anybody wants to get into this game, good luck. They need to know how to develop technologies. They need to know how to operate people.

As I like to say, they need to know how to move humans in time and space, three dimensions, humans in time and space. We’re not talking about accountants. We’re not talking about computer scientists. We’re not talking about AI scientists. We’re talking about people who operate more like coaches in football and in basketball, moving humans in time and space. Bond embodies these two competencies at very high level, technological innovation and moving people in time and space. 2025 was dedicated to preparations to go public, and as we switched to 2026, we’re focused now on growth. Most of the yield of those investments take time, right? Once we start putting more capital into growth, that means that we invest more in marketing, we invest more in lead generations, we participate in more trade shows. We hire more sales professionals and customer success people.

But all of that takes time from the first meeting that needs to be set up with the decision maker until they go through all the approvals and they get the budget, it could be 6 to 9 months. Assuming that all of this starts around March, remember, we go public early in February, and then we pivot to start focusing on growth. All of that will start yielding in the second half of this year, but most of it will yield in 2027. I have no doubt. I’ve been selling to enterprises for the last 25 years. 2026 is dedicated to growth and to reaching this inflection point that’s associated with crossing the chasm from the visionary customers that we have in abundance to early majority, which is a very large and easier market in the U.S. and abroad.

Bond continues to demonstrate ability to fund growth operations while remaining sensitive to dilution while raising capital. This balance is very important, and Bond is very unique in the sense of who are our investors. Our investors are some of the richest family funds in the world. They’re owners of banks, of retail brands that you know. They believe in the company. They’re patient. If ever we need more capital on good non-dilutive terms, that’s going to be available to us. So those of you who are evaluating Bond in the ordinary way of thinking how many cash we have, do that at your own peril. Q2 to date. EY ROI study released. By the way, we already see very positive reactions in corporations.

So when we talk with security people today and we show them EY study, and we tell them, "Your human resource organization needs to know about it, and it’s better," better for you, by the way, "that they hear about it from you rather than from their HR counterparts." Because then they’ll be asking, "Why am I not being told about it when the largest companies in the world are already doing that?" In other words, we help security bring this to attention of HR and finance. So initial resonance is very positive, early resonance. I already updated you about the city of 270,000 people, where the city pays for everybody. That, ladies and gentlemen, is revolutionary. Tell me, where else in the world has any city purchased a consumer service for all of its residents? There is no precedence to that.

This is a new reality that is enabled by a new technology. By the way, if we stop here for a second, think about it. Revolutions typically arise due to a combination of two factors. Number one, a new technology, and a new operating model that allows that technology to be harnessed. Let me give you a few examples. Drones in the modern battlefield. If Zelensky, I’m not talking politics, I’m talking revolutionary developments. If Zelensky, the head of Ukraine, wanted to compete against the Russians in the old paradigm of getting more missiles, getting more planes, and getting more human resources and tanks, they would have no chance. What do they do? They use a new technology with a new operating model. The new technology is drones. They’re using drones to attack deeply into Russia. This is a new paradigm.

A new paradigm allows Ukraine to compete or fight against Russia. I’m not taking sides, I’m just describing. What’s another example? Think about crypto. What is the new technology? Blockchain. What’s the new operating model? The ability to harness blockchain in order to create a revolution in the way that funds can be delivered. Cloud computing, the same thing. What’s the underlying technology? Virtualization of compute resources, such that they’re now fungible, so you can consume them from Amazon Web Services or Google, or from Microsoft Azure. Again, technology, new operating model, revolution. We are creating such paradigm shift, and that’s going to be a topic of a different webinar, but I’m just connecting the dots for everybody. A city of 1 million, Jerusalem, has contracted Bond. I’ve announced that we were awarded the deal verbally. The contract is now signed. We’ve started onboarding all 10,000 city workers.

Terrific reference for us when we talk with other mayors. There are actually more than 8 other cities that we’re in dialogue with. In all of them, I personally met with the mayors, and I’ve discussed with them what can be done on behalf of their residents. Mayors, by the way, are a little different than chief security officers in that they want to be reelected. Think about that. The pipeline is progressing. All of that is this transition since we went public as part of our growth strategy. For those of you who are planning to be in Atlanta between the 13th and the 16th of September, let us know. We’re going to be attending. This is the largest security trade show in the world. We’re going to have a large booth. We’re going to invite everybody.

We’re going to inform them about Bond, and there’s more that’s associated with that. But I’m excited about this trade show. We did not have the funds to participate in this show since 2021. So we’ve been out since 2021 until now, September 2026. So for 5 years, we haven’t been there. Now we have the capital to do that. With that, let’s take questions, Marlee and friends.

Moderator: Great. We have about 15 minutes remaining. Looking through our questions. Do we have a question from Tom Cusick? Tom, do you have a question?

Tom Cusick, Fund Manager and Investor: I do. Thank you. Good morning. This is Tom Cusick. I am a fund manager and investor in Bond. Based on everything we have seen so far, Bond is addressing an extremely large market and is considered a first mover in the space. Can you speak in more detail about the investments you are making to capture that market? Do you believe those investments are enough? How will you measure the success of those investments?

Doron Kempel, Founder and CEO, Our Bond: Thank you very much, Tom. Thank you for being an investor. Thank you for participating today and for the question. Basically, the question is, how are you, in a less abstract manner, investing in growth? Do you have enough capital? How are you going to measure results? The way that we think about the route to market is along a funnel. At the top, the first thing that we need to do is invest in awareness so people know what we are doing. Secondly, we need to invest in lead generation. Now we need to reach out to ICPs. This is ideal customer profile. For instance, we want chief security officers, we want heads of HR, we want some finance people and other type of professionals in specific companies. We need to reach out to them and set up meetings with them.

Once those meetings occur, we now need to follow the process of getting follow-up meetings, informing about the EY study. By the way, we have a model that allowed us to take the publicly available information about a certain company, choose any company, and we know how many employees they have, what demographics were in the United States. We load that into the model, and we generate a projected ROI for them. Then in some cases, they want to run some sort of a pilot or a trial run, and then we need to execute on the contract and then onboard them. So if you think about everything that we do, it follows this particular hierarchy. We are already investing in awareness. Since we went public, we have initiated media relations. We did not have a media relations department before that.

Some of you have seen that we are more in the news, we are on television, so the world is becoming aware of Bond, not only in the United States but in other countries. We have about three countries that we focus on right now outside the United States. That is awareness. That costs money. The way that we measure that, for everything that we do, there is an intended outcome. There are intended objectives that are measurable, what exactly you are trying to accomplish over time, and then there is a plan. Then we have reviews on a weekly basis where we check the progress. Are we executing the way that we wanted? Are we getting the results that we wanted? What adjustments did we need to make? Everything that we do includes these parameters.

We’ve already started investing in media relations, and we’re informing people on television, on social media, and on other channels. We’ve invested in what we call a business development program. These are individuals who sit at phones and place calls to decision-makers who meet our ideal customer profile. In other words, these are executives in companies or cities that we want to meet with, and we invest greatly in order to set up those meetings. We seek contact engagement, live engagement with decision-makers, and we have enough people, and we need to add more people to take those calls. We’ve just recruited somebody in the U.K. who can hold those calls in the U.K. with the right accent that I do not have. We have such person in France. We have such team, of course, in Israel.

The largest team and capability is in the U.S., by far the largest market, 90% of our activity is in the U.S. Again, awareness, media relations, then setting up meetings. In some cases, the meetings are set by people who hit the phones, call somebody, tell them about the EY study, tell them about what we do, set up meetings for us executives and sales professionals. After that happens, after the first meeting, it continues. They sometimes want to meet with HR. They want us to present the ROI projections for them. Sometimes they want to run a short test, 30-by-30 is the minimal test, 30 people, 30 days. Sometimes they require a larger pilot.

Some of the customers whom I referenced earlier started with a pilot that is for pay for large quantities of people, 3,000 people, 10,000 people, where they pay upfront, and they don’t take the service away from people. By the way, we have about a 95% success rate on all pilots. If a pilot doesn’t translate into a deal, we check what have we done wrong. We probably did not qualify them. The problem is typically not with the service, it’s just that we spoke with the wrong person, or we didn’t have a plan of, "Okay, what constitutes a successful pilot? If it meets these parameters, what’s next? Let’s start working on the deal. Let me know who your procurement people are." Again, down the funnel all the way to the pilot, these are the things that we’re doing.

Of course, I can get into more details, and all of them are measured according to plans that we have put together. Thank you for that great question. By the way, the event at GSX, just so people have a sense, that’s a $500,000 investment. That’s a $500,000 investment getting the right booth at the right location, bringing the right number of people, reaching out to a lot of customers and prospects, inviting them to our booth, and making sure that the booth and everything that we do at GSX brings attention, the right type of attention for the right type of people to Bond. For example, you should know that Bond, together with Amazon, is sponsoring event at GSX for next generation and women in security. We’re the sponsors of that particular event.

We are going to have a lot of activities in order to bring a large number of people into the booth and generate leads from that. This is everything that we are doing in terms of awareness, lead generation, and of course, the process of engaging with customers down the funnels. Thank you, Tom. Marlee?

Moderator: Excellent. We have about 9 minutes remaining. Our next question is from Jack Vander Aarde at Maxim Group. It is a two-part question. The question is on, Doron, your outlook-

Doron Kempel, Founder and CEO, Our Bond: Jack, I think, is the head of research for Maxim, for those who do not know. Thank you, Marlee. Go ahead.

Moderator: Yes. Yep. The two-part question is about the two contracts awarded in June in 8 additional cities you are in dialogue with to better understand the steps and timing of each potential contract and revenue recognition. First part, the second international city you mentioned, they purchased the service for all 250,000-plus residents. To clarify, did this contribute to revenue in June or Q3 2026? Second part of the question, the major international city, I believe Jerusalem, with over 1 million residents, this has been signed and is beginning onboarding. Could you walk us through the steps going forward and how we should expect this to translate into revenue?

Doron Kempel, Founder and CEO, Our Bond: Thank you. Let me reverse the order in which the question was presented, because I think it’s going to be easier for people to understand. First, let’s start with revenue recognition. In all the deals that Bond does in this space, we typically sign an agreement for a minimum of 2 years. Could be a deal for 3 years, and we get paid a year in advance. Let’s assume that we signed a deal with any one of those cities or other corporations. We sign the deal, and within their Net 30, Net 45, we get paid a year in advance. In other words, cash comes in on average 45 days after a deal was closed. Could be 30, could be 60 on average. Think about it as 45 days until we get the cash. Revenue recognition is month by month.

Let’s assume that we signed a 2 or 3-year deal with a city, and we’re getting paid for year number 1. Let’s assume that we got paid $12. I’m saying something silly that is easy for me to calculate. If we get paid $12 per year, that means that every month we’re going to revenue recognize a dollar out of the $12. However, we got the cash already on day 45. I’m differentiating the accounting revenue recognition from cash availability for us to immediately invest again in the business. That principle applies to most of the deals that we do. In terms of the 2 deals that we were asked about, there is a city of, Jack referred to it as 250,000 people.

It’s actually 270,000, but when we announced it on the 16th or maybe earlier of June, I said a city of about a quarter of a million people. It’s 270,000 people. That contract is signed. We are now waiting to get the cash in the door, but we have already started the onboarding efforts. We’re going to revenue recognize over the course of the next 12 months. With that particular city, it’s a 1-year deal, but we expect to do a good job and for the resident to like Bond, and for the city to probably re-up. But that’s a 1-year deal. Remember, that’s the first city in the world that buys the Bond service for that many residents. So, you now understand when we’re expecting the cash. You’re probably going to see it as part of our Q3 cash report at the end of the quarter.

In terms of revenue recognitions, monthly from the time that we signed the deal and started rendering the service, and I don’t know exactly at what day we started offering the service, but it was probably in the last month or so, give or take. The other city that bought the service, Jerusalem, that is, for their 10,000 city workers, that contract was signed probably in the last 2 or 3 weeks, and from that time, we’re going to start revenue recognizing the value of that particular deal over the course of the next year. Then we will get, I expect, paid for year number 2, and we’ll revenue recognize that second year. Marlee, was that the mention of the questions that I may have missed?

Moderator: No, I think that covers the two key parts.

Doron Kempel, Founder and CEO, Our Bond: Great.

Moderator: We have five minutes remaining. Our next question will come from Bill Hiten, I believe. William Hiten.

Bill Hiten, Investment Fund Manager and Investor: Thank you very much, Doron, for this call. As you know, I manage a very large investment fund catered to families, foundations, and endowments, and I am a personal investor from almost day one in Bond. It seems like you’re getting a lot of interest, you’ve talked about it a lot on the call today, from cities and towns lately. What do you think is really making this compelling for them to buy this for their residents?

Doron Kempel, Founder and CEO, Our Bond: Great question. Bill, thank you for your longstanding belief and support in Bond and in me. Greatly appreciated. I think that your question is specifically with regard to cities. Cities have problems today, and in most cities, by the way, I always need to be careful when I talk about it because it has become such a political issue, but people feel unsafe. Let me give you a few examples. In the U.K., 88% of women report feeling unsafe when they walk alone at night. Everybody, take a few seconds and digest that. Is that even possible? 88% of women, nine out of 10 women, don’t want to walk alone because they feel unsafe. Is this even possible in a developed country? Yes, it is. That’s what people are reporting.

If you’re a mayor and the people who voted you into power and into responsibility tell you that they feel unsafe, this is not a small issue. This is the second tier of Maslow’s hierarchy of needs. Let me give you an example that still addresses Bill’s question. We reached out to a mayor of a city of about 200,000 residents. Excuse me, 250,000 residents. Not any of the cities that we described. The mayor says, "I’d like you to meet with my head of security." I meet with the head of security, with the people who arranged the meeting, including a former mayor who’s helping us set meetings. I meet with this head of security. The head of security tells me, "Doron, my problem is reducing my response time, the response time of first responders from 12 minutes to 10 minutes.

I don’t see how you help me." I’m, of course, paraphrasing. I tell him, "You’re thinking about your problem in the context of an old paradigm. You’re like Ukraine trying to beat the Russians in the old paradigm. You’re not going to have a chance." He just told us, by the way, that he needs $2.5 million, $2.5 million in order to reduce the response time from 12 minutes to 10 minutes. Then I tell him, "Okay, so you reduce it from 12 minutes to 10 minutes at the cost of $2.5 million. That’s great. It’s better. But have you saved anybody in 10 minutes? In 10 minutes, somebody’s stabbed 10 times, robbed five times, raped one and a half times. You’re still too far out. You’re at the point of the Pareto curve where you’re not going to make any meaningful impact by investing $2.5 million.

In addition, you’re putting a lot of cameras in the city. You have about 1,000 cameras in the city, so from your security operations center, you can see better what’s going on." Even that is at the point where it doesn’t help anymore. It requires millions of dollars to add more cameras. Now, let me shift you to a new paradigm. The new paradigm that we’re shifting you to is that I’m going to give you a response of five seconds. In 99% of the cases where residents of your city are going to face an assailant or something that frightens them, they’re going to get a Bond agent in five seconds on their phone. So you’re paying $2.5 million to reduce from 12 to 10 minutes.

I’m telling you that for a significantly smaller amount of dollars, for the 250,000 people that you have in the city, I’m going to give you a five-second response time. This is even impossible for you to comprehend. In 99%, we can deter. A new paradigm. What I’m saying, Bill, is what we offer is very compelling. In addition, what I say to him is, "You’re trying to add another 100 cameras, another 500 cameras at costs of millions of dollars. Think about the new paradigm. I give you, we give you, Bond gives you a camera times 250,000 residents. All of them now have cameras on their phones, and when they’re concerned about something, they activate Bond. We are your extension." Completely different paradigm.

Now, this is the type of story that the mayor needs to hear, not the chief of security, because the mayor wants to be reelected. Bringing you to another meeting that I had with another mayor of a city of 100,000 after we met with his security team. We didn’t have much time. I was in a rush. I’ll tell the mayor, "Let me speak very quickly," of course, politely. What we do is this and that. I show him the video monitoring, and then I tell him, "Look, the resident of your city are soon going to hear that in few other cities in this particular country, the mayors are buying the service or have arranged a discount on the service of Bond.

Your residents can still buy the service by themselves, but they’re going to understand that this city is not helping them the way that the other cities do." I didn’t spell it out to him. I’ll just tell him, "Your residents can buy it, no problem. If they buy it, this is how much they pay per individual and for a family of six people.

Or you can arrange the discount for them or fund it all." He says, "That’s what I want to do, but Doron, you don’t have to talk with my residents about what other cities are saying." In other words, what’s very compelling to mayors is the ability to reduce the fear, the feeling of insecurity that humans feel today globally in developed countries and democracies, and we provide a new paradigm that allows them to respond in 5 seconds as opposed to 10 minutes, which don’t move the needle. Thank you very much, Bill. Marley, I believe that we’re out of time, right?

Moderator: We are over time, but we have just one more question.

This is from Radek Susak, and the question is, "Do you have any concerns about cash position or NASDAQ compliance?

Doron Kempel, Founder and CEO, Our Bond: Thank you, Radek, for the question. If it’s the Radek that I assume he is, Radek is also an investor in Bond and an investor in the two other companies, as Radek is from Europe. As CEO, I need to be concerned about everything and to pay attention to everything, and of course, we need to pay great attention to cash and to the compliance issue. With regard to cash, I’ve already addressed that. Given who the investors are, including you, Radek, I’m not too worried because I know that the company has access to capital, and we do not raise more capital than we need in order to execute a reasonable stretch of time and funds towards growth. Secondly, we’re very sensitive to dilution, which I assume all of the investors on this call want us to be.

With regard to compliance, the fix to the compliance issue is getting the stock to over $1. Given what I think is going to happen in the weeks and months to come, I’m not overly concerned, and I think that as the stock ascends beyond a dollar, I’m not making any promises here, you’re just asking me if I’m worried or not. I think that as this happens, that will fix the compliance issue. That is not a high priority. The priority is on execution, and we believe that as we continue to build this exciting business, and as we do a good job informing the market, those things will take care of the compliance issue. Thank you.

Moderator: Excellent. With that, we are out of time. We will follow up with anyone else who has asked questions in the chat. In the meantime, please do reach out to us at [email protected] or visit investors.ourbond.com.

Doron Kempel, Founder and CEO, Our Bond: Thank you, everyone. I will just show the slides again, Marley, for those people who are still on the call.

Moderator: Thank you.