December 2021 Edition
Dear hlnbidoffer,
This is the first of our new series Elsight monthly activity update Newsletters. These monthly newsletters will contain important news and updates to make you, the reader, more aware of our activities. Apart from elaboration on material announcements made on the ASX platform, we will also use this channel to update you on our activities, initiatives, and relevant developments which we expect will lead to material progress on our strategy.[1]
As most followers of Elsight are aware, during 2020 and 2021, the Company made a deliberate strategic change by moving from a multi-product, project-oriented strategy, to a single solution product focused on an exciting, but still emerging unmanned market. While there are many vertical applications for this, our initial focus has a strong emphasis on providing BVLOS[2]control solutions for Drone operations.
While we are excited about the future potential of this pioneering space, we are still in an early, pre-launch state. Currently, our prospective and existing customers are starting with limited quantities to support only their lab trials, demos, and first deployments. While at this stage a handful of Halo are sufficient, once deployed commercially at scale, those quantities will grow with each one of those prospects/ customers. Therefore, the revenues we’re about to receive now, including the largest projects, are not yet considered material. However, revenues will gradually increase in line with the growth of the respective projects, new use cases, and the increase in the number of drones per use case. Even in the largest events, like the recent NAAMA[1]Tel-Aviv (with tens of thousands of flights over large and densely populated cities) required only a handful of Halos by each of the participants, resulting in no material revenues. We will keep you informed of our progress as we grow the number of commercial deployments, POCs, successful trials and design wins in this nascent but exciting market.
[1]Forward-Looking Statements: the company does not make forward-looking statements about expected revenues. Any material announcements will be made on the ASX platform. Information provided in this newsletter is to share general progress and explain information or correct misinformation that is in the public domain.
[2]BVLOS = FlightsBeyondVisualLineofSight
[3]NAAMA =Hebrew acronym forUrban Aerial Transportdiscussed in the last Quarterly update.
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