TG-17 (NASDAQ:OBAI), which presented its second-quarter results under the Our Bond brand, said it is prioritizing growth initiatives, expanding its work with municipalities and managing capital conservatively as it seeks to broaden adoption of its personal-security service.
Founder and CEO Doron Kempel said the company’s service is being used by large corporate customers and is gaining traction with cities seeking to offer personal-security support to employees and residents. He characterized the company’s approach as preventative security, with agents available to users before an emergency develops.
Second-Quarter Financial Update
The company also reduced debt by $4.3 million through a $3.3 million debt-to-equity conversion and the extension of roughly $950,000 of debt from 2026 to 2027, according to Kempel. He said the $3.3 million conversion was completed at a per-share price representing a four-times premium to the market price at the time.
Kempel said the company does not intend to raise more capital than it considers necessary to execute its growth plan, citing concerns about dilution at its current valuation. He added that the company has access to a working-capital revolver of up to $3 million from him personally, which he described as non-dilutive financing with an interest rate just below 4% annually.
During the question-and-answer session, Kempel said the company’s focus is on execution rather than its Nasdaq compliance issue. He said regaining compliance would require the stock price to rise above $1, though he made no promises about future share-price performance.
Municipal Contracts and Pipeline
A key development during the quarter was the continued expansion of the company’s municipal efforts. Kempel said a city with 270,000 residents has signed an agreement to provide the Bond service to all residents. The company has begun onboarding the city, and Kempel said 60% of residents who had been informed about the service adopted it.
He said adoption rates at both municipal and corporate customers have generally ranged from 50% to 70% among people made aware that the service is available.
Kempel also said Jerusalem signed a contract to provide Bond’s service to its 10,000 city workers following a pilot program involving residents and city workers. The company had previously said it had received a verbal award from the city; Kempel said the agreement is now signed and onboarding has begun.
Bond is in discussions with more than eight additional cities across two focus countries, Kempel said. He said the company has met with mayors in those markets and sees municipalities as a potentially larger opportunity than corporate accounts because cities may serve millions of residents.
At the same time, Kempel said a previously announced $3 million government contract is now unlikely to proceed. While the company had been verbally told it won the opportunity, he said negotiations reached impasses over payment terms, risk allocation and operational requirements. The company remains in discussions with the potential customer, but Kempel said investors should expect that the deal will not occur based on its current status.
He said the loss of that potential contract is not expected to affect 2026 cash flow because the project would have required investments and did not fully align with the company’s primary business.
Revenue Recognition and Growth Investments
Kempel explained that the company generally signs customer agreements with terms of at least two years and receives payment for the first year in advance, typically within 30 to 60 days after a deal closes. Revenue is then recognized monthly over the service period.
For the 270,000-resident city agreement, he said Bond expects to receive cash ahead of recognizing revenue over the following 12 months. The arrangement is a one-year agreement. The Jerusalem city-worker contract was signed within the past several weeks, and the company expects to recognize that revenue over the next year as services are provided.
The company is investing in awareness, lead generation, sales activity and customer success efforts, Kempel said. Those efforts include media relations, outbound engagement with corporate security, human resources and finance leaders, and localized business-development personnel in the United Kingdom, France and Israel. He said about 90% of the company’s activity remains in the U.S.
Kempel said sales cycles can take six to nine months from an initial meeting through customer approvals and budgeting. As a result, he expects some benefits from growth investments in the second half of 2026, with the majority of the impact expected in 2027.
- Bond plans to attend the GSX security trade show in Atlanta from Sept. 13 through Sept. 16.
- Kempel said the company expects to invest about $500,000 in its GSX presence, including its booth, personnel and customer outreach.
- He said Bond will sponsor an event at GSX with Amazon focused on next-generation professionals and women in security.
ROI Study and Market Positioning
Kempel pointed to an EY study released July 29 as an important tool for customer discussions. According to Kempel’s description of the study, employers that provide the Bond service to all U.S. employees could expect bottom-line savings of $181 to $280 per employee annually.
He said the company is using the research in discussions with chief security officers, human-resources teams and finance executives. Bond can also use public company information, such as employee counts and U.S. demographics, to generate projected return-on-investment analyses for potential customers, Kempel said.
Kempel said the company has seen approximately a 95% success rate in converting pilots to broader customer agreements. He said pilots may range from a minimum “30-by-30” test involving 30 people for 30 days to larger paid programs covering thousands of people.
Looking ahead, Kempel said the company is focused on transitioning from early adopters to a broader market of corporate and municipal customers. He said Bond’s immediate priorities are expanding awareness, generating qualified leads, converting pilots and onboarding new customers while maintaining sensitivity to capital needs and shareholder dilution.
About TG-17 (NASDAQ:OBAI)
TG-17, Inc, dba Bond (“Bond”) was formed under the laws of the State of Delaware on April 11, 2017. We provide preventative personal security powered by AI. Once activated, the cloud-based Bond Preventative Personal Security Platform provides users with remote protective services via phone app (using its Bond Preventative Personal Security Platform) and with 24/7 support from our Personal Security Agents, who are in Bond Command Centers and can respond rapidly. We offer 14 distinct services through our phone app (the “Bond App”) and fully automated Bond Command Centers located around the world, that allow Bond members to choose when and how Bond will keep them secure while preserving their privacy.
