Actelis Networks, Inc.

Good day and thank you for standing by. Welcome to the Actelis Network's third quarter 2022 earnings conference call. All participants are in a listen-only mode. As a reminder, this call is being recorded. Joining us today from Actelis are Tuvia Barleth, CEO, and Yoav Efron, CFO. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, including but not limited to statements of expectations, future events, or future financial performance. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties. including those identified in the risk factor section of our final prospectus filed pursuant to Rule 424 with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in our earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, November 11, 2022. Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on our investor relations website at ir.actelis.com. I will now turn the call over to our CEO, Tuvia Barlev. Tuvia?

Thank you, operator.

Welcome, everyone, and thank you for joining us today on our earnings call. Recognizing that some of you might still be new to the Actelis story, I'd like to begin today's discussion with a brief overview of who we are. Then, I'll review our operational updates and financial highlights for the three and nine months ended September 30, 2022, before turning the call over to Aptel's CFO, Yoav Efron, to discuss financial results. After that, I'll share some closing remarks. At Actelis, our mission is to enable rapid deployment of fast, cyber-hardened, cost-effective IoT networking over wide areas such as cities, campuses, industrial plants, airports, military bases, roads, and rail systems. Our networking solutions use a hybrid combination of newly deployed fiber infrastructure and existing copper and coaxial lines in the ground that we are able to enhance to fiber-like performance to significantly cut costs and speed up deployment of secure IoT networks, accelerating IoT projects across the world and making them more affordable and predictable to plan and implement, even in hard-to-reach locations. We achieved that by applying our unique single-processing software package to existing infrastructure lines that are readily available in the billions, and by doing so, making the existing lines deliver fast, secure, and reliable data to IoT devices such as cameras, sensors, parking meters, and other smart IoT devices, eliminating the need for expensive and time-consuming civil works to deploy new fiber to hard-to-reach locations. Using our unique signal processing software package, we're able to operate on such existing copper lines at highly accelerated speeds at much longer distances and reach secure fiber-grade communication quality instantly, and has virtually no spending on civil works. Our software packages also offer smart management of large IoT networks and automation of networking services across wide areas such as cities, industrial parks, airports, and highway systems, which saves our customers much headache and manual labor. Our software package implements our triple-shield end-to-end network security to protect critical IoT data, utilizing a powerful combination of coding and encryption technologies as applicable on both new and existing infrastructure within the hybrid fiber-copper network. Actelis' solutions also provide optionally remote powering to IoT over the same existing copper line to IoT devices without the need to deploy new and extensive powering networks. Our solutions have been tested for performance and security by the U.S. Department of Defense Laboratories, approved for deployment, and already deployed with U.S. federal governments and U.S. defense forces, as well as with various IoT operators across the world for mission-critical applications. Now, let me share some operational updates. Octelix continues to invest in generating more sales, growth, creating company awareness, building strategic channel partnerships, and developing new products and services. We strengthened our marketing team with the hiring of Sean Wren in August to the role of Global Vice President of Marketing and Communications. Sean spent the last 14 years leading the marketing efforts for parking and transit giant Flowbird, formerly known as Parkion, in local government and public transportation across the nation. Sean's impact is already felt and we're leveraging his expertise in those critical target markets. We exhibited in 14 conferences and trade shows during Q3 of 2022 focused on intelligent traffic systems or IPS, federal military and telecommunications, including major conferences such as IPS World Congress and ISE Expo 2022. This compared to a handful of shows in both first two quarters of 2022 combined. We're getting good feedback and a high level of interest in these shows. Actelis also strengthened its sales and marketing team with the hiring of Michael Mercier, director of ITS and local government sales. Michael joined Actelis in August and has over 15 years of experience in technology sales with a focus on government agencies. He previously worked for Panasonic and Havis and is focused on the ITS local government verticals for ourselves. We continue to work on the expansion of channel and distribution coverage in many countries and verticals. Specifically, we have signed resale and distribution contracts with new partners in various countries in Asia, such as Singapore, Vietnam, Malaysia, and India, as well as in the U.S. and Europe, and we have many more underway. we announced our new partnership with Norseman, a U.S.-based federal and military system integrator who now has our product and services portfolio included in the SEWP acquisition contract by all federal and military agencies, including NASA. Kevin Foster has joined our close advisory board, bringing with him more than 30 years of experience in technology architecture innovation in networking technologies and standard development, following his career in British Telecom as well as Chairman and President of the Global Broadband Forum.