Dear ......, Thank you for your important question regarding the...

Dear ......,

Thank you for your important question regarding the FAA.

Please consider that my reply is not an expert opinion, but my own, based on what I know to date. So, you may elect to consult with an FAA expert.

1. We are experts on cellular communication and came to deal with FAA certification through a joint effort with one of our partners who is dealing directly with the FAA authorities on our behalf.

1. To my understanding, we are talking about a “world first”. To date the FAA has not granted any drone company with a TC (Type Certificate).

1. According to Wikipedia: “A type certificate signifies the airworthiness of a particular category of aircraft, according to its manufacturing design (type design). It confirms that the aircraft of a new type intended for serial production, is in compliance with applicable airworthiness requirements established by the national air law.”

1. In my laymen’s words, this is the same license that would be given to any other commercial aircraft, such as a Boeing 787 Dreamliner. In our case we provide the drone with the critical communication component. In our case, we are dealing with an autonomous drone and or a drone flying beyond the line of sight. In other words, when we speak of “communication”, we are talking about safely navigating the aircraft over urban areas.

1. To our understanding, some companies may have received various limited and temporary certifications for their components (like drone’s parachutes). It is important to understand the magnitude of the difference between such certificates to the FAA TC that we are dealing with.

1. For leading companies like Google, Amazon, and others, who inspire to start a drone package delivery, the commercial implication of this TC, versus all other FAA certifications, can best be described in the following way. For them it would be suicidal to try and develop their own communication capability. Their likely choice would be to buy Elsight or at least use our certified onboard Halo card. Please remember that our Halo card would come with a proven FAA in field trial and TC, while enjoying other strong benefits such as lighter weight, smaller size, and much better battery consumption – all reasonably priced. The examples of Amazon or Google are made only to illustrate a point.  

1. For giant companies the rule-of-thumb when assessing “Make or Buy” is anything strategic “Make”, and anything non-strategic “Buy”.

1. I already heard comments by some savvy investors, outside of Australia, who thought that this would justify a massive increase in the company valuation. I cannot attest to that. But I believe that if or once we secure this FAA TC certification, it will change us as a company in a profound fashion.

I hope and trust that this long and detailed explanation adequately address your concerns. If not, please feel comfortable to contact me at any time.


Best regards,

David Furstenberg

+972 54 432 5299