Our Bond, Inc. Common Stock Status update

Hello, everyone. Thank you for joining. We have several participants still joining, so we're going to give them another moment. While we still have participants joining, we'd like to begin. Please welcome Doron Kempel, Bond Founder and CEO.

Hey, friends. Thank you for joining us today. What inspired this webinar are questions that we received from you, from other investors, regarding some of our announcements, and our belief that we should explain better the significance of some of the announcements that we make, some of the progress that we experienced in the context of the life of a company that creates a new market, and that's the purpose of today's webinar. Secondly, I believe that it's always better to over-communicate other than under-communicate. With that, let me bring the presentation. Marley, let me know if you can see it.

Yes, we can see. Terrific.

We'll give people 20 more seconds while you all consume this title, Creation of a New Market. Let me also remind everybody of the disclaimer, whereby we may mistakenly make some forward-looking statements. So take a look, take a read. Okay. The objective of today's session, review recent news and put it and them in strategic perspective. In terms of the agenda, I'll very briefly talk about the difference between a new product or bringing a new product into an existing market and creating a new market altogether. The importance of references in each one of those situations. The importance of predictable product results in each one of those situations. Then we'll talk about the Bond status relative to everything that we touched upon in the prior three bullets, and we'll allow you to ask questions, which we will address, and Marley will keep us on time.

With that, let's address the notion or the difference between a new product and creating a new product. Introduction of a new product into an existing market typically implies that there are customers that already recognize the need for the product. For instance, if you're a corporation and you're already using cloud services, you've already decided that cloud is something that you're going to use. Now you need to make choices regarding the different cloud providers. It is clear that you've accepted the fact that you need it, you're already purchasing that type of service or a product, you already have an existing budget or existing budgets, and you have procurement processes. All of these take time to develop, and they already exist in the world where we're just introducing a new product into an existing market.

You're already using the product or the service, so you have practices around that measurability, and there is limited market education required. In other words, if you're already using product number 1, and I believe that I'm bringing a better product to you, I'd say you're getting everything that you're getting with product number 1, or you're getting with me the same thing cheaper, or the same thing faster, or the same thing bigger. In other words, you just need to make an adjustment in order to clarify what's better about Lyft as opposed to Uber. I switched to consumer markets. I think that's clear about the situation where we're introducing a product or a new product into an existing market. In a world where we create a new market altogether, that is very rare.

The market education is required because nobody is used to a pattern of behavior or consumption in that new reality. Customers are not yet familiar with the consumption of such a product or a service. There are no procurement processes, and very importantly, there's no budget. In that particular world, the world of Bond, when we come to a chief security officer or head of HR and we say, "It's now possible for you to offer personal security for all your employees," there's no budget for that. They never thought that this is possible.

We need to convince them why it is a good idea, and then need to go and get a budget, which sometimes means that you may get pushed to the next year unless you present to them evidence of why they should start doing it right now and get budget that was not approved. The sales cycles are typically much longer because there's much more convincing, and they say that your decision-makers, chief of security or chief of HR, they need to go to finance and sometimes to the CEO and generate a new budget requisition in order to buy the new product. All that takes more time. Now, in these realities, it's very important to find references, but also, we'll talk about it momentarily to demonstrate predictable results. Let's start with the two requirements in all those situations.

Number one is that companies do not buy a new product unless there is somebody else who is already using the new product. There are very few individuals and corporations who are willing to take a risk on a new product without references, and they do it because they need it. They need to generate some change, and they are willing to take the risk. But the early majority, most of the market will not buy without references, and the references need to be in their own market. In other words, if I am a bank, I will not accept a retail as a reference for me. The second requirement is that early adopters want predictable, positive results, because otherwise I may risk my job.

It is a human intuition that wants predictable proofs, and also corporations want to make sure that what they are spending money on has been tested by others and they are going to get predictable results. That makes sense. Companies do not view early adopters from other markets as references. That is the point that I made earlier. A bank will not view a transportation company as a legitimate reference. Now, you may want to double-click on that and say, why does it matter? If you are offering them a service that offers security, what does it matter if it is a bank or a transportation company? You are right in most of the cases, but that is not how the psychology of it works. The bankers want to know that other bankers are using it because it is a safer decision for them.

A company that brings to market a new product, even more so a company that creates a new market or category, must win references in each sector. So we need references in retail in order to get other retailers to adopt, and the same thing in banking, airlines, and so forth. Winning the first reference in a sector is very important and very difficult, and from time to time, we announce to you that we have just won the first deal, the first meaningful deal in retail. We just announced that. Or we might say we have just won the first city that funds the service for all of their residents. That is tremendously important and equally as hard to do. It is also very meaningful and potentially very valuable.

We are not going to announce to you that we want a first reference or a first customer in a market that means nothing. What we are trying to do is we are trying to win deals and set references in large markets, and we have been announcing that of late. Now, Bond gradually has been winning reference customers in key verticals. The largest companies in the world already offer Bond to all types of employees. This is incredibly important and for all of you investors, incredibly reassuring. And you know that we have been sharing you some of this datasets regarding the type of customers that we have. In other words, when we say that we have a retailer, as in row 4 here, it is not a retailer. It is one of the three largest retailers in the world.

When we say that we have a reference in media and entertainment, it is not just a media entertainment company, it is one of the three largest in the world, and so forth. What does not appear here is that our customers now include one of the three largest private equity companies in the world, one of the three largest venture capital companies in the world, and so on. You know that we have other wins in other categories. They are not one of the three largest companies in the world. That is not necessary, though it helps. We have great references, and we are now making inroads and making progress in those sectors. Recently, Bond secured new customers in important new verticals. We recently announced that we have won a city that purchased the service for all residents. That is a great precedent.

Just recently today, we announced that Jerusalem, a city of about 1 million residents, has purchased the Bond service for all 10,000 city workers. You could say that there is overlap between the two, and indeed, but when we speak with cities, we want to tell them, "Hey, you can start by offering Bond to all of your city workers, and you can also offer it to all the residents." Two possible services that they can consume. We also announced the fact that we have a new, meaningful real estate brokerage that is buying the Bond service, has bought the Bond service for all of their agents. This is very meaningful because real estate brokerages do not view the agents as their employees. There is a different relationship that they have, and they have shied away from offering security to their agents.