Elsight Limited announced a commercial contract for the `Halo' solution has been signed and a preliminary order received from Speedbird Aero (Speedbird), a leading Brazil-based comprehensive Unmanned Aerial Vehicle (UAV) services provider. Speedbird has built UAV's capable of transporting and delivering packages for commercial, industrial, and healthcare uses. Speedbird's drones have received certification and waivers by ANAC, the Brazilian National Civil Aviation Agency, to operate with `Halo' onboard.

`Halo' provides Speedbird with a reliable, uninterrupted bonded connectivity solution for command-and-control (C&C) redundancy certification, critical and secure data transmission, and a complete end-to-end link between the drone and all communication technologies associated with Speedbird's field drone hub and control-centre. The contract signature, including a commitment for orders during 2022 followed by the first commercial order of Elsight's `Halo', has been placed by Speedbird to support their initial fleet of parcel delivery drones. This contract minimum value for 2022 is USD 72,000 with the potential to reach a value of approximately USD 520,000 during calendar year 2023, subject to expected follow-up orders, 57% of which will be annual recurring revenues.

The contract term with Speedbird expires at the end of calendar year 2023 with an option to extend further. Speedbird is the first customer to be offered Elsight's business promoting and innovative pricing model for `Halo' which better aligns Elsight's business model with that of their customers, and how they in turn derive revenue from their customers, while enhancing Elsight's profitability over time. This innovative Halo-as-a- Service (HAAS) payment model, which is being applied to Speedbird, represents a shift from reliance on upfront hardware sales to a software and managed services-oriented model which allows Elsight to continue making revenue even once the hardware sale has been completed.

This helps customers by reducing their up-front payment required for hardware, during their initial service launch, while moderately increasing their monthly recurring revenue payments, received by Elsight during the term of `Halo' usage.