Cyabra, Inc. Common Stock LD Micro 20th Annual Main Event Conference

Greetings everyone. Thank you again for joining us on a wet Wednesday. This is the second fireside chat that I have done in the last 20 years, and of course, I didn't really have any preparation. This is a topic that I think most of us in this room think about often. Actually, even before I do that, let's do this. We were very fortunate to have the CEO of CitroTech, Mr. Wes Bolsen, make a presentation yesterday. I felt that the solution to what he has is significant enough to talk about, and see exactly where we are, because this is a very big problem. Healthcare is obviously a very big problem in our country. Homelessness is a very big problem. Gun control is massive, right?

But at least depending on your geography, wildfires, they've now gone from something that were anomalies to essentially occurrences every 2, 3 months. A lot of it now has no real correlation with rainfall or proximity to densely green areas. We all know exactly what happened to the Palisades a year and a half ago. That community is going to be in recovery mode for the next decade. Just as a show of hands, how many people in this room are from the state of California? Okay. Keep your hand up if you're from California. How many people live in a densely vegetative place that could catch fire? Okay, cool. Most of the people in California. Okay. Just as my own, how many of you live in a condo? Okay, cool. Okay. The HOA fees must be terrible. Wes, let's talk about history.

Let's talk about history even before, I think a lot of it is just they're building houses in places where there were no houses 10 years ago, 20 years ago- Right 50 years ago.

Urban density if you will.

Wildland-urban interface, wildland comes into where we are building. The WUI is what it is called in our industry.

The WUI. The WUI. I would love to know what the history of this has been for, say, the last century.

And how that has ultimately changed within recent memory.

Sure. Then we can go from there.

Yeah. So big history. Smokey Bear has told us, "Put out every fire." U.S. Forest Service has done a great job, and Smokey Bear has told us to stop every fire. That is not what our nation nor our forest and communities need. We need good fire, too. We need to have good fire on the landscape, but we're scared, so we've come to a mode of suppression. Stop every fire, put air tankers up, drop toxic red stuff out of the sky. Make it stop. We don't even want prescribed burns. "I don't want smoke." You don't want your community to burn down either. So we're going to have to get back to the mentality of our First Nations people who put fire onto the landscape 100 years ago.

The buffalo would move, the good fire would come across, it would actually burn off the bad plants, and then you would have good regrowth. But we need to stop the bad fire. So we need to prevent the fires. We need to start preventing the fires where they're going to burn down communities and introducing good fire back onto the landscape. But over the last 10 or 20 years, we've just thrown all of our budget. We've doubled the amount of budget needed for suppression. We just put more red stuff out of the sky with more air tankers to stop more after they've started. And I think we're going to have to get back to prevent the fires under power lines, along roadsides, along railroad lines. We're going to have to start protecting assets where the fire is coming in. Our homes. We can't even insure homes anymore.

Let's talk insurance. Let's talk personal. Let's start protecting the homes. Let's start building the homes. California and Colorado especially, are mandating we build homes that are fire prone. Now we're talking building materials. There's investments around fire-prone materials, wood materials. CitroTech can play part of that. We're talking about how we would protect communities and on roadsides. That's another one. Then you get down to, "Hey, I want a sprinkler system on my home that if a fire were coming in, could autonomously deploy and protect my most precious thing, my home.

So you believe that the approach has to be multifaceted no matter what?

I do. In this example, do you feel that what Cal Fire, because this has become a pretty significant topic, at least for the state of California.

Do you feel that they have the right mindset and the right strategy to do their very best to essentially prevent conflagrations?