TG-17 (NASDAQ:OBAI), the company behind the Bond personal security platform, reported $2.5 million in third-quarter revenue and said it expects revenue to grow 50% in 2027 as it pursues corporate and municipal customers.
Founder and Chief Executive Officer Doron Kempel said subscription revenue grew 41% from a year earlier and 40% from the second quarter. The company recorded $3.1 million in quarterly bookings and reported a $4.7 million net loss, compared with a $4.8 million loss in the previous quarter.
Kempel also outlined plans to reduce operating expenses by approximately $6 million in 2027, citing artificial intelligence developments and greater efficiency at Bond’s command centers.
Municipal Deals and Corporate Customers
Bond’s platform connects users with security agents who can monitor them by video or assist in situations where they feel unsafe. Kempel said the company has handled more than 1.25 million security service requests and over 10,000 emergencies and life-saving situations.
Among recent commercial developments, Kempel cited a citywide agreement funding Bond for approximately 270,000 residents and a deal with an S&P 500 financial technology company. He did not identify either customer during the discussion.
Kempel said Bond is also rolling out its service to approximately 10,000 city workers in Jerusalem after a pilot involving employees and residents. He put adoption among Jerusalem city workers at about 80% to 85% and said he expects, but cannot promise, that the service will eventually be offered to residents.
The Jerusalem contract and the agreement covering the city of 270,000 people are both for Bond’s software-as-a-service platform, rather than physical security services, Kempel said.
The company has also hired an executive with U.S. Secret Service and private-sector experience to expand its reach in executive protection. Kempel said the effort is intended to introduce the platform to executives and their families, and potentially to employees across their organizations.
2027 Growth and Cash Flow Outlook
Kempel expects approximately 90% of the company’s projected 2027 revenue growth to come from its AI-powered SaaS business. He said about half of the expected growth would come from existing customers expanding their use of Bond and half from new customers with whom the company is in discussions.
He cautioned that some prospective customers remain early in the sales cycle. With a relatively small number of targets, individual large deals could have a substantial effect on results, he said.
Asked when Bond could reach positive cash flow, Kempel said he expects that milestone once the company reaches $20 million in annual recurring revenue. He distinguished that measure from reported revenue, which is generally recognized over the life of a contract. The company’s current annual revenue run rate is approximately $10 million, he said.
Capital Realignment and Nasdaq Compliance
Kempel said a post-quarter debt conversion and a private investment in public equity, or PIPE, of up to $10 million had strengthened the balance sheet. He said approximately $15 million had moved from the liability side of the balance sheet as part of the realignment.
The CEO also addressed Nasdaq compliance, saying that one way to meet the requirement is to reach $2.5 million in positive shareholders’ equity. The company had negative $17 million in shareholders’ equity at Sept. 30, and Kempel estimated that, following the realignment, it remained approximately $3 million short of the target.
“We’re taking other steps,” Kempel said, without detailing them, to reach the equity threshold.
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.
