Our Bond, Inc. Common Stock 2026 Q2 Earnings Call

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.