Good day, and welcome to the Ondas Networks' first quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance today, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and one on your touch-tone phone. To withdraw your question, please press star and two. Please note today's event is being recorded. I would now like to turn the conference over to Eric Brock, CEO. Please go ahead, sir. Thank you, operator, and good morning, and welcome to our first quarter investor call. This is an exciting day for Ondas. In addition to sharing our earnings release, we've also announced the acquisition of American Robotics. This is a deal combining two leading mission-critical industrial data platforms. Of course, I'm talking about Ondas' mission-critical FullMAX wireless network and American Robotics' world-class drone system. This is a home run. It's a great deal for customers, employees, and importantly, a huge win for our investors. I'm thrilled to be sharing this news with you, and we'll be sure to dedicate enough time on this call to properly introduce American Robotics to the investor community. Of course, we'll also spend time covering Q1 results and give you an update on where we stand on our critical business development activity. I'm joined today by Stewart Kantor, our President and CFO. In addition, we're joined by American Robotics CEO, Reese Mozer, and CTO, Vijay Somandepalli. Reese and Vijay, along with their teams, have built an incredible technology platform, and they are here to share details of their business. Before we get going on the quarter and the outlook, I want to take a few minutes here to share a couple of thoughts on American Robotics. AR is leading the charge in the commercial drone sector. They bring both a first-in-class and a best-in-class complete drone-in-a-box platform called the Scout System. Scout is the type of solution that is coveted by our critical infrastructure customers. The platform fits like a glove with our mission-critical FullMAX wireless platform, both from a customer marketing and distribution standpoint, as well as from a wireless connectivity perspective. The drone needs connectivity. The significant marketing synergies and technical wireless platform integration provide an even more valuable turnkey data and edge computing solution for our customers. This is a bold move for Ondas, and that's exactly what Ondas and American Robotics need to do to create value in the mission-critical data markets we are serving. It's exactly what our customers and shareholders should expect from us. We are leading the charge in defining and delivering these data solutions for the critical industrial, public safety, and government markets we address. Now, let's outline the agenda for today. We're going to start first with a financial review from Stewart. I will then give a business outlook focusing on the key areas of business development. Of course, that means I'm going to be highlighting where we are with Siemens, the rails, and AURA, and then we're going to turn our attention back to providing information regarding American Robotics and the announced acquisition today. We will leave time for Q&A. These are clicking for Ondas. As Stewart will describe in detail, we generated both record revenue and bookings in the first quarter, demonstrating clear progress on our plan. We continue to drive towards platform adoption in our critical rail and drone markets with both the Class I rails and AURA, and we're broadening our ecosystem, particularly through our Siemens partnership, which is expanding through new product development agreements, and we see more of that to come. Stewart, I will now hand the call over to you to provide more details on Q1 and the financial outlook. Great. Thank you, Eric, welcome everyone. I want to begin by highlighting that we made excellent progress on all of our key business initiatives in the first quarter, including achieving both record revenues and bookings. We booked approximately $2.4 million in new orders and generated $1.2 million in revenue, with revenue growth of 480% over Q1 2020. Our growth came primarily from joint development programs with Siemens Mobility, our partner in the North American rail market, and AURA, our partner, which is deploying a nationwide drone and unmanned aircraft navigation network. Our financial results have shown substantial improvement year-over-year and reflect excellent progress toward scaling both the rail and drone communications markets. Our operating expenses were $3.4 million, an increase of approximately $1.1 million over Q1 2020. The increase in operating expenses was primarily the result of $1.3 million in non-cash stock-based compensation. We expect bookings and revenues to continue to grow substantially in the coming quarters, driven primarily by our sales activity from Siemens and AURA. Revenue and profitability will fluctuate quarter- to- quarter because our major commercial orders and new system deployments don't happen on a fixed timeline. Because of this, as we've mentioned in previous calls, we don't intend to provide full-year financial guidance. For Q2 2021, we expect revenue between $1 million and $1.5 million, and that revenue will come from our backlog, as well as new sales orders from Siemens, the Class I railroads, and AURA. Eric will tell you more about this in the next section in greater detail. Our cash operating expenses, which exclude non-cash expenses such as stock-based compensation, are expected to be between $2.5 million and $3 million in the second quarter. We believe we're positioned to see bookings and revenues grow on a quarterly basis throughout the year. We continue to have a strong balance sheet with $24 million in cash at the end of first quarter. Relative to the large revenue opportunities in our customer pipeline, we have a modest cash burn. Given all these factors, we feel we're in a great position moving forward. Now Eric will provide more details on the customer activity and growth outlook for 2021. Eric? Thank you, Stewart. As you can see, we've made a lot of progress in Q1, though, of course, as I like to remind my team, we have more work to do. While the big news today is, of course, the American Robotics acquisition, Q2 remains busy and milestone-heavy as we set up for a strong year. We expect to see significant business development progress throughout this second quarter with the Class I rails, Siemens, and AURA. Starting with the rails. We continue to highlight that we have multiple networks in our line of sight beyond the 900 MHz. That includes a 150 MHz voice and data network, as well as a 450 MHz network where the rails connect on-locomotive systems. While the 900 MHz network is obviously a huge deal and where we will start commercial deployments, I want to make clear that we expect to demonstrate activity on these other systems and outside of North American rail as we move through 2021. We will be supported as we do by our ecosystem partners, including Siemens. Let's turn to that all-important 900 MHz network. We continue to drive towards adoption on that large nationwide system where our customer has greenfield spectrum to put to work. As we previously shared, we've worked principally with the wireless group under the AAR umbrella to establish FullMAX as the new 900 MHz network platform, and that effort is now evolving and expanding. This Wireless Communications Committee, or WCC, has now elevated Ondas to the senior operating committees for the rails in order to formally ratify the establishment of the MC-IoT Rail Lab in Sunnyvale. We expect purchase orders related to these decisions this quarter, and the critical takeaway is that the users of the network, those in charge of field area operations, of functions such as train control, switching, crossing safety, and other applications, including drones, those folks are now engaged with their networking peers in the planning for the new network. This approval will be a very important strategic development in further validating this large opportunity for Ondas. We continue to expect commercial deployments on the 900 MHz network to begin in the second half of 2021. We're not able to share detailed guidance on the timing of these deployments. When we know, we will share that with you, but we are making progress. Moving to Siemens. Our strategic partnership here continues to pay dividends for both parties. Ondas' platform creates systems upgrades opportunities for Siemens, with the potential for them to drive additional revenues from the critical train systems they provide the Class Is. We are seeing Siemens gain traction and build awareness with the field operating groups I referred to earlier across the board with all of the Class I rails. Again, these business operating units that use the network for critical train system operations. Awareness is building rapidly beyond the network engineers as the users of the network begin to anticipate the increased bandwidth and all the benefits that entails. Let's turn to Siemens and Siemens ordering activity. Recall that the initial 900 MHz ATCS product development is complete and is now being qualified for sale. We expect Siemens to place orders for ATCS in the second half. In addition, we noted on the last call that Siemens initiated a new product development program with us during Q1. That revenue-generating program is underway and expected to be completed by the end of the year. I want to remind you that this new product with Siemens is for a separate application on a different frequency band away from the 900 MHz network. This product will also be marketed globally by Siemens. This is clear evidence of the broader rail opportunity that we have been highlighting. We expect to secure additional development programs with Siemens during the year, with our FullMAX software-defined platform being embedded in additional critical train systems globally. Let's turn to AURA. Our work with AURA has continued to move forward in 2021, with AURA achieving their own key development milestones. In January, AURA received an FCC waiver for their air-to-ground radio spectrum license in the 450 MHz band. This waiver allows for the drone navigation network they're planning. As Stewart mentioned, we're now completing work on the optimization of the FullMAX platform to create transitional network equipment for AURA's UAS application. This work has included extensive aerial testing, and we are very pleased with the results to date. This will allow Ondas and AURA to provide testing and demonstration networks for AURA's UAS customers. We will realize product sales for this AURA-optimized equipment soon. In parallel, Ondas and AURA are scoping the development program, technical roadmap, and expanded partnership structures for a significant FAA commercialization program related to this nationwide command and control or C2 UAS network. We expect a big ecosystem play here with additional partners to emerge, and we look forward to sharing more details on expanding our relationship and program roadmap and timeline soon. Now let's turn back to American Robotics. I want to start by saying that this is an incredible company with massive talent and vision. Importantly, AR is an American drone company located just outside of Boston is a region many people consider to be a robotics and drone capital of the world. American Robotics stands out as a leader in this community. Reese and Vijay and team have solved the biggest problem there is in UAS, that is commercializing a complete, fully automated drone system, a drone-in-a-box specialized for industrial use cases. This is called the Scout System. The Scout System enables the operation of drones beyond visual line of sight with FAA approval. With no on-the-ground human operation, Scout is the first and only truly scalable drone platform on the market. Of course, the drone is the ultimate MC-IoT weapon for Ondas. It's a mobile data gathering solution, and we believe this groundbreaking Scout System will be coveted by our industrial customers. At Ondas, we love huge addressable markets. We love huge TAMs, we love platform businesses, and this is exactly what we have here with American Robotics and their patented Scout System. Pricewaterhouse sizes the UAS markets addressed by AR as $100 billion or more. It's a huge opportunity. American Robotics also brings a high margin, high return on capital business, also known as a robot-as-a-service business model. We believe this model is great for customers, and it can lead to very attractive returns for Ondas investors. Reese is going to share more on that robot-as-a-service business model and the value of bringing a turnkey platform to the market, and how the very important first-mover advantage via the FAA approval will allow American Robotics and Ondas to define the commercial drone market in the years ahead. Ondas and AR couldn't be a better fit to drive market penetration of the Scout System. The synergies between Ondas and American Robotics are significant. The combination of Ondas' wireless connectivity with AR's commercial drone-in-a-box system is powerful. Again, the drone is the ultimate mobile data gathering device at the edge of a mission-critical network. The value to our customers to gather valuable information at a frequency they've never before been able to access is huge, and we believe the pent-up demand is significant. Today, railroads, utilities, oil and gas field operators, in addition to the critical industrial public safety and government markets, are spending significant CapEx and OpEx dollars on drones. The drone provides valuable data services, and the budgets are in place and growing. The marketing synergies with Ondas and AR are very real and valuable, as are the technical. The value of a reliable, secure, FullMAX wireless network reinforces the value of the Scout drone platform and vice versa. The customers are going to love this. Ondas and AR attack the same end markets, and Ondas' robust networking capability will expand the market for American Robotics Scout drones. The drone is the most scalable and the most valuable when it's attached to a reliable, secure, mission-critical wireless network. For Ondas, the benefit is clear. Broader customer solutions combined with an even greater ability to lay claim to the drone command and control navigation radio market. That C2 market starts with AURA. It extends to the private networks. For example, drones can be an application for the rails and other industrial government customers for Ondas. Of course, the C2 market extends to American Robotics in the local, beyond visual line of sight markets the Scout System is defining. Ondas can now take a leadership position in the critical navigation link, which is needed to address FAA requirements for the deployment of drones flying beyond visual line of sight at scale. American Robotics puts us squarely in the huge market for smaller drones. That's why shorter missions beyond visual line of sight at lower altitudes. AR also has overlap with the private industrial networks we're deploying where customers operate both small and large drones, often at low altitudes. We expect to see immediate interest from our customers who are already engaging Ondas, asking us to solve their drone radio network challenges. Of course, in addition to the local and private wide area network applications, we're tackling the high-end drone missions with AURA. While American Robotics' Scout System is a crown jewel and a terrific standalone platform, the acquisition brings the added value of Ondas' FullMAX software-defined network being positioned as a navigation backbone or the nervous system, potentially, for all industrial drone applications. Infrastructure solutions for drones is a big opportunity, and you will see Ondas playing an important and valuable role bringing the picks and shovels to the drone economy. I want to now hand the call to American Robotics CEO, Reese Mozer, so he can provide more information on American Robotics and its best-in-class Scout System. Reese? Thank you, Eric. Good morning, everybody. Great to meet you all in this new chapter of American Robotics and Ondas. My name is Reese Mozer, and I'm the co-founder and CEO of American Robotics. American Robotics is a developer of fully automated industrial drone systems. As Eric mentioned at the beginning of his presentation, in January, we became the first company approved by the FAA to operate fully automated drones with no humans on site. The most important thing to understand about American Robotics and the commercial drone industry is the problem. Drones have been talked about for a long time now, and there's been a lot of success with drones in the military sector. There's been a lot of success with drones in the consumer sector. In the middle is this very large opportunity for commercial drones that today we are still barely scratching the surface of. The reason for that is for the vast majority of commercial drone applications, using a manually operated drone is simply not practical. It takes way too much time and ends up not being an economical solution because when you look at these industries and these use cases, whether it's oil and gas or agriculture, railways, stockpile monitoring, you have to operate this drone and collect data and analyze data multiple times a day, every day, for it to have value. Having a person stand out there in the field with a remote control while that's occurring, quickly doesn't make sense. On top of that, default FAA regulations prohibit this kind of automated operation. Today, anytime a drone is flying, a human has to be present on the ground with that drone, typically with eyes on it at all times, obviously prohibiting the ability to operate in this fully autonomous manner. We have solved this problem with the Scout System. The Scout System is a truly automated platform, and it consists of a number of software and hardware systems that are proprietary to American Robotics that were developed from the ground up to work together to create this completely hands-off experience and really change the dynamic of what it means to use a drone in the commercial sector. It comprises our autonomous drone, our automated base station, our detect and avoid sensors, and the software to tie that all together, both at the back end and at the front end. Everything has been automated. Flight is actually just one component of what it takes to use a drone for a business purpose. At the end of the day, what our product is data, not the drone itself. We've automated mission planning, precision landing, charging, data processing, data storage, data transmission, physical storage, all of that together. Now you can install these systems in your field, and they will live there indefinitely, conducting 10, 20 missions per day, every day, processing that data at the edge, and transferring it back to the customer. This, again, changes the dynamic of what it means to use a drone, and it changes the economics as well. Yeah, as has been mentioned a few times now, American Robotics in January of this year became the first company approved by the FAA for fully automated drone operation with no humans on site. Now, this is the most important approval that has occurred yet, in the commercial drone space. As of right now, we're actually the only company that has this approval, which means, at the moment, American Robotics has exclusive access to any of those markets which require this degree of automation, which by our estimation, incorporates about 90% of all commercial drone markets. To recap, our system can fly beyond line of sight with no visual observers or no humans on the ground at any time. That means before, during, or after flight, at no point does a person have to be co-located with this drone, which again, completely changes the dynamic and the economics of what drones can do for commercial businesses. The number of markets and the number of use cases for this type of technology is incredibly broad. As I mentioned, 90% of all commercial applications require this level of automation for drones to actually be a scalable solution. We divide this into three overarching categories, the industrial market, the agricultural market, and the defense market. Within each one of those, you have things like oil and gas, solar, nuclear, railways, utilities, stockpile yards, row crops, and specialty crops, just to name a few. The use cases are broad, but the common theme among all of them is you want to be able to monitor your assets on a frequent basis. Whether you have 500 well pads or 10,000 acres of farmland, our system is able to digitize that physical world and allow you to monitor those assets remotely and increase the efficiencies of your business. The final piece of the puzzle is once you've achieved this type of automation, you can now combine it with the robot-as-a-service model. We've extracted what is historically the most expensive part of operating a drone, which was the pilot. With that removed from the equation, now we can focus on the service that the system provides. Instead of customers purchasing this hardware, this is provided in terms of an annual subscription. This has two effects. This lowers the annual cost of data acquisition for our customers, and it also provides American Robotics, now American Robotics and Ondas, with recurring software-like margins. Eric, I'll hand it off to you from here. All right. Thanks, Reese. Let me wrap it up before we move on to Q&A. Ondas continues to position itself for huge growth in our large open-ended markets. We have momentum, and we're executing on our critical initiatives driving platform adoption. That starts with the Rails and Siemens and AURA Network Systems. We are establishing our mission-critical IoT platform as the default next-generation wide-area mission-critical network. Now we integrate American Robotics. American Robotics' drone-in-a-box Scout platform is best in class, and it will be in high demand in our end markets and beyond. This also positions Ondas as a leading player in all C2 markets, with drones of all sizes and applications ranging from very large to small, and for altitudes ranging from high to low, and for flight missions spanning local to regional for long durations. The drone age is here, and Ondas will be a key player driving innovation, infrastructure, and end-to-end solutions, as well as market penetration. Operator, let's move to Q&A. Today's first question comes from Mike Latimore with Northland Capital Markets. Please go ahead. All right. Thanks. Yeah, congratulations on the acquisition and quarter here. I guess just starting with a couple questions on the acquisition. These may be kind of basic, but what do you charge per month? What's an ARPU on a specific drone? Then maybe just what is your ROI pitch to customers? What kind of ROI can you prove there? All right. I'm going to ask Reese to answer the question. I think we're going to be a little sensitive on the price points at this moment, and we will be providing a lot more information regarding this. We should note that the acquisition is expected to close in August. We got a couple of months here, but we will be providing more details. Reese, can you share some perspective on this for Mike? Yeah, absolutely. As Eric mentioned, not disclosing specific pricing at this time, but we do look forward to sharing that publicly soon. I can say, when you look at the pricing, as a result of this robot-as-a-service model, we are able to deliver the highest quality data at the lowest cost. Our system, again, because that human is removed from that operation, it can run continuously at essentially marginal increasing costs all day, every day. That allows an entirely new category of data that has never even been feasible to collect before. We're talking about sub-centimeter resolution, multiple times a day, every day, which most importantly unlocks a new category of data analytics that was never possible before, which we're excited to get talking more into that concept as we move ahead. Hopefully that answers some of that question. Yeah. Let me just add a couple of things, Mike, just to think about conceptually how it works. When American Robotics deploys a Scout System in a field, they're typically going to get a long-term contract from the customer, say, five years. The idea is in the initial year, that subscription agreement covers the cost to deploy the system, then you get extremely high margins in years two, three, four, and five. Okay. Makes sense. Just to be clear on the data that you're gathering, is this largely video, imagery data that you're gathering? I'm guessing it pulls in a lot of data, so maybe is there some AI in the background that sort of analyzes the data and sends back the most important stuff to the user? Absolutely. It's been a focus of ours to create and deliver a full stack complete solution, which is, again, one of the reasons why we've joined up with Ondas. One of the aspects of that is not just delivering raw data to the customer, but actual analytics and actual actionable information. That's part of our product stack as well. There's multiple steps to that. Actually going back to the first part of your question, what type of data do we collect? That depends on the market and the use case. Our system is largely payload agnostic. Within agriculture, that is RGB and multispectral. Within the industrial markets, it's typically RGB and thermal. There are other types of sensors on the horizon, things like methane sensors, for example. Typically, we're talking about collecting a very large amount of image data on the order of 20 GB a day that is all offloaded to the base station. Within that base station, again, these also function as edge computing centers, which is a key step to making this work. Those images are stitched together, processed, and to some degree, analyzed at the edge, and then that finished product is uploaded to the cloud through our front-end software called ScoutView. From that point on, you can apply additional AI to analyze that data. Okay, great. Thank you. Just on the core business here, maybe can you talk a little bit about the timing of, there's this lab, shipping orders from the lab trial, I think this quarter. Is the success of that critical to the eventual commercial orders you get in the second half or are there a couple rails that might buy regardless of that lab? There's going to be rail activity irregardless of the lab. However, the lab is important, and it's a place where all the rails can come to collaborate on that shared system we've talked about. It is an important step, and as I highlighted earlier, it validates the market opportunity even further because we're now emerging not just with this Wireless Comms Committee, but we're now interacting and engaging with those senior operating committees, the folks who are going to use the network. Yeah. Hey, Eric, maybe I can jump in too. Yeah, please. I think although they work collectively, they also, obviously, the rails work independently. The number of applications continue to grow and the interest. I think the lab is critical, but also lots of activity going on individually with the rails. All right. Thanks a lot. Good luck. Thanks, Mike. Today's next question comes from William Morrison of National Securities. Please go ahead. Hi, Eric. Hi, Reese. I'm great. Hi, Bill. Couple questions. Sorry if you hear any. How you doing? There's hammering in the background. We have construction going on here. Sorry. No problem. Couple questions, Reese. Is CloudLink also a WiMAX radio too? Or do you have a radio in there? If so, are you going to migrate this to Ondas WiMAX radio or software? Do you interoperate with any AI cloud platform in the cloud, like C3.ai or Palantir? How does that work? Yeah, that's a great question. To the question of how we get the data to the cloud. Sorry, my AirPods just died. The answer depends on the site. The short answer is yes, integrating with the FullMAX to help us get that information to the cloud. If cellular connectivity is available in the site that we're operating in, which is sometimes the case, we can also use that method. Okay. When you get into the cloud, does it interoperate with a different AI platform, or is it your platform in the cloud too? It is our platform in the cloud, but the system is developed in such a way where we have the opportunity to integrate with other softwares as well, whether that's a third party or that is something developed by the customer that we work with. Okay, good. On the drone itself, is there any compute resources like an Intel NUC or anything like that? On the drone itself, the compute and the intelligence focus is mainly on mission planning, intelligence, flight dynamics, things like precision landing. The data itself from the customer perspective is stored on there in a raw format, and then that's offloaded to the base for processing after the flight occurs. Can you give us an idea, Reese, of what your pipeline looks like and when do you expect to start to ramp into orders? Yeah, absolutely. In coordination with R&D efforts over the past five years, we've been building up a deep customer pipeline in anticipation of our recent FAA approval. Now that we've achieved that milestone, back in January of this year, we're looking ahead to deployments with a number of Fortune 500 companies across the U.S. and across multiple sectors, including energy, agriculture, and rail. Our immediate focus now turns to building out our team and inventory to support this interest, with initial target deployments in Q3 and Q4 of this year. Great. Thanks. I'll circle back. Ladies and gentlemen, this concludes the question and answer session. I'd like to turn it back to the management team for any final remarks. All right. Thank you, operator. I'd like to close by reminding our investors that Ondas is bringing tremendous value to the critical industrial and government markets we're targeting. We're focusing on delivering big networks for important end markets. We're proving this with the rails and AURA. The flywheel is working. Today's announcement with American Robotics is proof of our commitment to bring valuable and complete next-generation solutions to these markets. Adding the industrial market's best drone platform via American Robotics Scout System is a huge win for our customers and investors. To close, I want to thank you again for joining the call. I also want to express gratitude on behalf of the entire team at Ondas for your support. We began the year with terrific momentum. We look forward to sharing updates on our key initiatives over the course of the year. Thanks again for joining us this morning. Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.