ACTELIS NETWORKS INC (ASNS)

Actelis Networks, Inc. provides cyber-hardened, rapid-deployment networking solutions for wide-area IoT applications. Its hybrid fiber-copper networking combines newly deployed fiber with existing copper and coaxial lines, which its patented signal-processing technology upgrades to fiber-grade performance. The company says this avoids the cost and delay of running new fiber to hard-to-reach locations. The same copper and coax lines can also carry power to connected devices such as cameras and 5G small cell and Wi-Fi base stations. Security is a central focus, built around a multi-layered "Triple Shield" of data coding, multi-line scrambling and 256-bit hardware encryption.

The product portfolio is the MetaLIGHT family of hardened network elements and software. The ML500/600/700/800/900 series are compact Ethernet access devices installed near IoT devices, indoors or outdoors. The ML2300 aggregator series connects hundreds of locations at control centers. The XR239 series is a remotely powered repeater that extends copper reach up to 100 km. The MetaLIGHT EMS software handles remote management, monitoring, configuration and security for networks of up to thousands of elements, and may include separately licensed encryption or cyber-safety keys. Actelis also sells support and maintenance services, including consulting, remote support, training, repairs and software updates. It released its first hardened, encrypted hybrid fiber-copper family with 10Gbps switching capacity in 2022 and expects to release multi-Gigabit families in 2023. It is also working on network-wide cyber-protection software as a license-based service and is certifying its products for FIPS.

Actelis originally served telecommunication service providers, and its products have been deployed with more than 100 of them worldwide. It now focuses mainly on IoT verticals: intelligent traffic systems, rail, federal and military, airports, energy and water, smart city, and education and industrial campuses. Named deployments include the City of Los Angeles, Highways England, the Federal Aviation Administration, the US military and Stanford University. Sales have been strongest in intelligent transportation, rail, federal and military, and airports, mainly in the US, Canada, Europe and Japan. Telco customers made up about 35% of 2022 revenue, down from 48% in 2021, and the top ten customers made up about 82% in 2022, up from 78%. The company sells through a multi-channel approach with partners, system integrators, distributors and consultants.

Actelis says it has invested over ten years, and nearly $100 million, in copper and hybrid fiber-copper technology. As of December 31, 2022, it had an accumulated deficit of $33.4 million, had funded operations through equity financing, and had a Migdalor loan of about $4.9 million outstanding, secured by all its assets. It closed its IPO in May 2022, raising net proceeds of $15.4 million before additional offering expenses, and in November 2022 authorized a stock repurchase program of up to $1.0 million.