Dear Shareholder,  

We've been extremely busy over the past month in both receiving and fulfilling orders, as well as doubling down in our marketing and sales focus on the defense market. This newsletter's aim is to give you a taste from related industry events, customer progress and our news coverage. Hope you enjoy its content. 

Best regards,

IR Team 
Elsight (ASX:ELS) 

ASX Tech June Winners: Defence tech stocks dominate record-breaking month

Elsight has been covered extensively over the past few weeks due to our performance, as well as the outlook for continued business growth and tailwinds in the defence sector. Have a look at the article below to learn more:

In this episode of From the helm, Bell Financial Group’s Grady Wulff speaks with Elsight (ASX: ELS) Director, Howard Digby

 If you would like to understand Elsight's investment thesis, and share it with others, feel free to use the following interview with Bell Direct and our Australian based Director, Howard Digby. It also briefly explains our flagship product Halo and its adoption in both civilian and defence  markets.  . 

The Drone Industry and Elsight Strategy

Elsight has adopted a “Design win” Strategy in which our flagship product, Halo, is embedded in the specification of products made by Original Equipment Manufacturers (OEMs). This approach means as we sell to OEMs enabling their success, we too succeed. As the whole industry “takes off”, Elsight stands to benefit.  A key investment thesis enables  anyone interested in drones to select a single company for investment. ELS now has over 100 drone companies with its Halo product embedded. 

To learn about another customer's success, read the following article:

Elsight in the Defence Industry

The Defence Industry has been extensively followed as a hot sector, with Elsight mentioned as a big mover, especially among ASX listed companies. Within the military sector, the UAV space is a hot segment and Elsight has demonstrated significant traction and revenue growth in this area. Click on the following story to understand the potential of the sector and what analysts are saying about Elsight.

Growth Prospects for Elsight

Elsight Financial Model

Elsight operates a "Capital Lite” model allowing for significant incremental revenue generation for small incremental investments. Our products are plug-and-play, and recent successes indicate a short and reliable sales cycle. Support is minimum and the product has been demonstrated as extremely reliable. Recent ASX announcements have detailed defence related orders which are profoundly cashflow positive, including a considerable payment up front with the remaining upon delivery. As a result, the company expects to significantly add to our cash balances when announcing its quarterly results later this month. 

We believe that in the industries and verticals we currently serve, we are only just getting started. Future growth in the defence UAV sector is expected to be driven by the need for governments around the world to invest and scale up their drone warfare and defence capabilities.  

However, the growth opportunities extend further to: 

1. More unmanned assets including humanoid robots
2. Other mission-critical communications and C4 opportunities in defence
3. The overall UAV market beyond defence which is not only predicted to be many times larger, but is already being turbocharged by the use of drones in wartime combined with significant policy initiatives in the USA and around the world.