Our Bond, Inc. Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Our Bond, Inc. performed this year. My goal is to explain their business and numbers without the confusing financial jargon, so you can decide if this company belongs in your portfolio.

1. What does this company do?

Think of Our Bond as a "digital bodyguard." Their smartphone app connects you to 24/7 human security agents. These agents can track your location, video-chat if you feel unsafe, or call the police. They call this "pre-911" security—they want to help before an emergency becomes life-threatening.

They sell this service in two ways. About 70% of their revenue comes from selling subscriptions to corporations to protect their employees. They also sell directly to individuals for $19.99 per month.

2. Financial Health: The "Survival Mode" Reality

To be blunt, this company is in a race to grow before they run out of cash. In 2023, they brought in $24.5 million in revenue, a 35% increase from the previous year. However, they lost $42.8 million, which is worse than their $38.2 million loss in 2022.

They have $18.4 million in cash left. Management expects this to last only through the third quarter of this year. Because they aren't profitable, they frequently issue more shares to raise money. This reduces your ownership percentage. They are in "hyper-growth" mode, but that growth depends on spending heavily on marketing and sales, which took up 55% of their operating expenses this year.

3. The "Controlled Company" Factor

Before buying, you should know this is a "controlled company." The founder, Doron Kempel, holds over 50% of the voting power through special shares. He makes all the decisions. Even if you own stock, you have little say in how the company is run or its future direction. Kempel controls the board of directors and major decisions, such as potential sales or mergers.

4. Major Risks

• Frequent Share Issuance: Because the company needs cash to stay afloat, they often issue new shares. In the last year, they increased the total share count by 12%, which diluted your stake in the company by about 8.5%.
• Tech Dependency: They rely on Amazon Web Services for their cloud infrastructure, costing $4.2 million annually. If those systems fail or suffer a data breach, it could ruin their reputation and finances.
• Liability: If their technology fails or an agent makes a mistake, the company could face massive lawsuits. Their $10 million insurance policy might not cover a major legal settlement.
• Fixed Costs: They must pay for staff and command centers regardless of customer numbers. Payroll costs $18.2 million annually. They have little room to cut costs if they miss sales targets.
• AI Uncertainty: They rely on AI to monitor threats. If this technology fails or is hacked, they could lose their operating licenses.

5. Future Outlook

The company is in a "build" phase. They have handled over 1.28 million service requests, proving people use the app. However, they need to raise $50 million within 18 months to expand into Europe and reach break-even. There is no guarantee they will get this money on terms that favor shareholders. If they fail to raise these funds, the company could face a serious cash crisis.

Final Thought for Your Portfolio: When looking at Our Bond, ask yourself if you are comfortable with a high-risk, high-growth play. The company is currently spending significantly more than it earns, and your influence as a shareholder is limited by the founder's control. If you decide to invest, keep a close eye on their quarterly cash balance—it is the single most important metric for their survival right now.