Q: Under what circumstances would Mobilicom raise capital, given its current runway and no debt? A: Liad Gelfer stated that the company does not need to raise capital for its current plan. With a multi-year runway, no debt, and warrants outstanding representing roughly $20.6 million in additional potential funding, the bar for new capital is an opportunity, not a necessitysuch as a material M&A opportunity. The focus is on converting the balance sheet into production and deliveries.

Q: What is the typical timeline from a design win to initial low-rate production and then to volume revenue? A: Oren Elkayam, Founder and CEO, outlined a three-stage pipeline. The first stage, integration and qualification, historically took lengthy timelines but now typically spans several months for experienced OEMs. The second stage, initial production orders, begins at low rates and spans multiple quarters as OEMs deploy platforms and secure broader sales. The third stage, volume scaling, depends on customer program milestones rather than Mobilicom's own activity, as the company is often faster than its larger OEM partners.

Q: What factors drive a drone manufacturer's selection of Mobilicom, and who are the competitors? A: Oren Elkayam identified four key decision-making criteria: performance in contested environments (range, resilience, electronic warfare resistance), compliance with regulations (NDAA, Blue UAS, FCC Trusted Drone status), price and supply capacity for mass-market scalability, and the ability to offer an integrated stack. He noted that in embedded drone cybersecurity, Mobilicom faces very limited direct competition and is positioned as a leader.

Q: How is Mobilicom positioned for the evolving requirements of the Drone Dominance Program (DDP)? A: Oren Elkayam explained that DDP Phase 1 was purely price-driven with minimal requirements, making it irrelevant for Mobilicom. However, Phase 2, currently underway, shifts requirements from simple analog data links to secured encrypted digital communication, which aligns with the Scarper family. He noted that Phase 3 and Phase 4 in 2027 will be even more appealing, though the company is still deciding whether to pursue the low-end, high-volume FPV market segment.

Q: Can Mobilicom meet the military's pricing expectations for Phase 2 of the Drone Dominance Program? A: Oren Elkayam stated that each step of the program evaluationsecure digital data links, certified vendors, American manufacturing, and cybersecuritymoves toward Mobilicom's existing position. While the FPV market segment offers large volumes, it is very competitive with lower prices. The company is closely monitoring the market and has activities underway to fortify its unique selling point, but it will carefully decide whether to enter this segment without fundamentally losing money.

Q: With the FCC trusted status and Tier 1 wins enhanced, what are the key focus areas for the coming quarters? A: Oren Elkayam listed four priorities: advancing recent design wins with large OEMs through integration and validation toward initial production; delivering the second half by maintaining monthly cadence and encouraging new orders; finalizing the U.S. manufacturing agreement and building U.S. production capacity, with the first production run targeted for 2026; and deepening the software layer (OS3 cybersecurity and secured autonomy framework) as new cybersecurity requirements move into programs, which is where higher-margin recurring licensing revenue lives.

Q: How did the first half's design wins and new product launches convert into orders, and what does this indicate about the company's execution speed? A: Oren Elkayam highlighted that the newly launched Scarper Multiband and Scarper Tactical products converted to design wins and initial orders within the same half-year, the fastest conversion achieved so far. This demonstrates the company's ability to innovate, maintain market gaps, and move from product launch to customer implementation rapidly.

Q: What progress was made on the U.S. manufacturing footprint, and why is it important? A: Oren Elkayam reported significant progress, with the company mapping multiple U.S. manufacturers, shortlisting to five contenders, conducting on-site inspections, and narrowing the field to two final candidates. The selection is in final stages, with the Pentagon closely monitoring progress. This onshoring plan is critical for maintaining the FCC Trusted Drone status and meeting U.S. federal market requirements.

Q: How does the integrated stack position benefit Mobilicom compared to selling individual components? A: Oren Elkayam explained that the AI-enabled autonomous weapon system win, which placed four products (two software and two hardware) on a single new program, proves the integrated stack approach. This results in more components, more value per platform, higher customer retention, and a unique market position unmatched by other players, as it sells a complete solution rather than individual parts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .