Elsight Limited announced it has been selected for a two-year National Technological Innovation with Governmental Bodies Grant ("The Grant") of 1.57M ILS/USD 450,000 from the Israeli Innovation Authority. Elsight is one of 10 companies to be selected as part of the second phase of Israel's National Drone Initiative (link). The second phase pilot project conducted by the Israel Innovation Authority, Ayalon Highways, the Ministry of Transportation and the Civil Aviation Authority of Israel (CAAI), will examine use cases and integration into the National airspace of large drones that are designed to carry passengers and heavy cargo.

Following the successful previous pilot phase where all pre-defined metrics were met, this second phase pilot project will commence January 2023 and require the 10 participating companies to carry out one week of flights across designated Israeli airspace every month for the following 24 months. The pilot project's aim is to expand tests with long-range aircraft flights carrying heavy loads, with the goal that in the future, it will be possible to fly passengers from one location to another and improve the congestion situation in Israel through the use of drones. The Grant provided to the Company will partially support the financing of the expansion of the Halo roadmap, particularly Elsight's continued appearance and operations under the aegis of Israel's National Drone Initiative (NAAMA).

The Grant is attractive to the Company, funding a portion of estimated capital costs for Elsight's expansion of the Halo roadmap. As part of the Grant, Elsight will promote the development of additional and next-generational Halo features, including additional Remote ID support, hyper-accurate GNSS, and the next generation of LTE and 5G modems for the Halo.