Alcohol & Drug Detection Sys.

Q1 05
Q3 2011
Strictly Confidential
HA’INBAL GROUP
RAPID ALCOHOL & DRUG

DETECTION SYS.
Business Plan
Q4 2020
Disclaimer
The Company (as defined hereinafter) is furnishing this Business Plan solely for the consideration of eligible
investors who have the knowledge and experience in financial and business matters and the capability to conduct
their own due diligence investigation in connection with the investment outlined herein. Prospective investors
are urged to conduct an independent evaluation of the Project.
The Business Plan is based on data, estimates and forecasts and other trade and statistical sources. While the
Company believes that the information contained herein is accurate, it expressly disclaims any and all liability
for representations or warranties, expressed or implied, contained in, or for omissions from, this Business Plan or
any other written or oral communication transmitted or made available to prospective investors. Any and all
representations and warranties regarding the information described in this Business Plan shall be only as set
forth in a definitive agreement if and when such definitive agreement is executed. Any prospective investor
acknowledges its responsibility to perform a due diligence review prior to consummating a transaction involving
the Company.
This Business Plan includes certain statements provided by the Company with respect to its current status and
anticipated future performance of the project. Such statements are based on estimates and assumptions by the
Company that are subject to significant economic and competitive uncertainties beyond the control of the
Company. The Company makes no representation or warranty with respect to the statements and there can be no
assurance that the future results can be realized or that actual results will not be materially different from those
projected. The Company undertakes no responsibility to update or revise any forward-looking statements.
The Company and its respective affiliates, directors, officers, employees, consultants and representatives
expressively disclaim any and all liability relating to or resulting from the use of the Business Plan or such other
information regarding the Company by a prospective investor or any of its affiliates or representatives.
In furnishing this Business Plan, the Company undertakes any obligation to provide the recipient with access to
any additional information. In addition, the Company reserves the right to negotiate with one or more
prospective investors at any time and to enter into a definitive written agreement without prior notice to the
recipient or other prospective investors.
Disclaimer/clarification: For all, business and practical matters, the proposed project, i.e. “Rapid Alcohol and
drug detection system”, should and will be regarded as a stand-alone project, will not be part of the proposing
Company and as such; a new “autonomous” company will be registered, by the parties, in due time.
All inquiries should be directed to:

Dr. Zwi Ronai
Telefone (Israel):+972-52 448 52 44
E-Mail: [email protected], [email protected]
ALCOHOL & DRUG DETECTION SYSTEM Ha’Inbal Group
Table of Contents
1. EXECUTIVE SUMMARY 4
2. THE NEED 11
2.1. OVERVIEW 11
3. THE COMPANY'S TECHNOLOGY 11
3.1. VALUE PROPOSITION 12
4. COMPETITIVE LANDSCAPE 12
4.1. DIRECT COMPETITION 12
4.2. INDIRECT COMPETITION 13
5. BUSINESS STRATEGY 14
5.1. MISSION STATEMENT AND STRATEGIC OBJECTIVES 14
5.1.1. Mission Statement 14
5.1.2. Strategic Objectives 14
5.2. MILESTONE STRATEGY 14
5.2.1. First Generation – The Stand-Alone Device 14
5.2.2. Second Product – OEM Partnerships 15
5.3. CURRENT STATUS 16
5.3.1. Current Development Status 16
5.3.2. Development Schedule 16
5.4. KEY MILESTONES 17
6. SWOT 18
7. ORGANIZATION AND MANAGEMENT 19
7.1. MANAGEMENT TEAM 19
8. FINANCIAL HIGHLIGHTS 21
9. FINANCIAL ANALYSIS
9.1. Historical Financing 22
9.2 Budget 22
10. Profit & Loss projection 2021-2025 24
RECORD 25
Confidential 3 Q4 2020
1. EXECUTIVE SUMMARY
Mission Statement
To become a world leader in the mobile, (hand-held) AI based, real time Rapid Alcohol and Drug
Detection System and embedded technologies for the law enforcement, criminal justice systems,
surveillance, security management and transportation markets.
Corporate Overview
HA’INBAL (hereinafter: The Company) is a provider of a unique range of mobile video surveillance
systems, targeting the surveillance, security, emergency and transportation industries.
Founded in 2009, with headquarters in Haifa, Israel, the Company is engaged in the development,
manufacturing, marketing and selling of video surveillance products initially to the security industry
through a network of distributors.
The Company has produced sales across Israel, Europe and the Asian region demonstrating its rapid
acceptance in the marketplace with its best of breed technological offering ATALEF™, superior
mobile real time wireless video solutions. In addition, the Company has continued to develop new and
customized products in close conjunction with intended customers such as the hereinafter proposed
Rapid Alcohol & Drug Detection System
The Need
In recent years, the AI based imaging industry has experienced accelerated growth due to diversified
use in a variety of vertical markets. Key markets include1 mobile video surveillance, monitoring and
control, and personal video capturing devices, including video/camera phones, digital cameras and
camcorders as well as in the AI and machine learning based applications’.
In today’s drug and alcohol infected world, the security and public safety challenges emphasize the
need for superb real-time visual high quality, rapid alcohol and drug detection/screening system for law
enforcement agencies. Yet in the present real life situation, the limitations imposed by increasing
number of illicit drug user over low, law enforcement resources and complicated; costly, cumbersome,
time consuming, invasive drug detection test, such as urine, saliva & blood testing, cripple most of
today's solutions' ability to rapidly and effectively use the drug detection as an operational tool for
decision making1.
In most critical situations, the ability to obtain real-time information is regarded as the most important
piece of information for a law enforcement agent to make decision on the spot. Obtaining essential
“real time” information on the road, the field or hostile/target areas, i.e. immediate visual information,
can help a Law Officer oversee/screen multiple individuals.
Such crucial real time information can significantly improve the outcome of any mission being it law
enforcement, military of public safety related.
Current drug detection/screening technologies are usually limited to fixed location whereas a urine and
blood test can be conducted. This limits the coverage and is very inflexible when the “test facilities”
are, 99% of the time, remote. In addition, there are too many legal issues involved in invasive drug
1
The Company targets the mobile outdoor Alcohol and Drug detection market. Therefore, these markets are considered the most relevant
to its cause, and will be discussed in detail.
testing, such as consent, arrest, incarceration…, blind spots, that need not to be concerned about when
using the proposed rapid drug detection device. The portability and mobility also make it time-saving
as for the law enforcement agent it is just an additional piece of equipment in his arsenal.
This will have a direct consequence in the, crime management, security, transportation… segments,
that are having an overwhelming need for live drug detection at all times.
Current drug detection methods offer no solutions to live drug detection, since each suffers of one or
more of the following disadvantages: (i) they offer only remote testing facilities; (ii) require
significant time and capital investments; (iii) require significant operational investments, thus reducing
their financial feasibility for mass-use applications; (iv) they cumbersome and not user-friendly. As a
result, such solutions are pricy, offer limited effectiveness and may require complicated and
specialized handling.
The Company has developed a unique AI based mobile technology which specifically addresses
alcohol and drug detection issues, enhancing efficacy, speed and quality considerably.
Based on sophisticated, proprietary algorithms’, encoding and robust management functions, the
Company's technology essentially brings a ground- braking, new, effective, rapid, alcohol and drug
detection system resulting in a high quality, cost effective solution.
The Company’s Solution

Overview
Ha’Inbal has developed a world leading, integrated, AI based, platform that uses highly sophisticated
video processing and state-of-the-art algorithms’.
More particularly, the system is designed to be a noninvasive

physiological/ophthalmological method for rapid (15-20s) Alcohol
and drug abuse screening and detection.
The Hand-Held device will give an immediate reading/rapport to the

operator/law enforcement officer and, optionally, will have the ability
to immediately transmit the acquired data, to a central data base, using
available commercial network infrastructures such as 4-5G, RF, Wi-Fi.
Those operational abilities have been achieved due to a proprietary

(encoding, encrypting and transmission) central module for remote
operations at affordable costs.
The key technology that differentiates Ha’Inbal products from the competition is the high-quality AI
algorithms’ and Machine Learning abilities developed and optimized for the mobile hand-held drug
detection systems using its proprietary encoding algorithms.
Ha’Inbal technology also enables users to transmit live (or recorded) high quality information to
remote data bases.
In the development of this product, the Company aims to answer to the law enforcement, criminal justice
systems, surveillance, security and transportation industry needs for high quality alcohol and drug
screening and detection system while maintaining cost-effective, and fast time-to-market.
Value Proposition
The Company's ground breaking technology will revolutionize the drug screening and “on the go”
detection abilities and by thus bring to any law enforcement agency an invaluable tool to fight the,
global, illicit drug epidemic, drive a fast ROI while reducing costs and increasing overall effectiveness,
creating a strong value proposition for players in the law enforcement, Security and transportation
sectors:
Market Highlights
The Global Drug Detection Market
The global drug screening market is projected to
reach USD 10.0 billion by 2025, from USD 4.5
billion in 2020, at a CAGR of 17.3%. Growth in this
market is attributed to the rising drug & alcohol
consumption, the enforcement of stringent laws
mandating drug and alcohol testing, government
funding in major markets, and regulatory approvals
and product and service launches. On the other hand,
bans on alcohol consumption in Islamic countries
and the prohibition of drug testing at workplaces in
certain regions are some major factors that may
hinder the market growth.
DRIVER: Growing drug and alcohol consumption

Drug abuse and alcohol consumption are increasing across the globe. According to the World Drug
Report 2019, in 2017, about 5.5% of the global population aged 15–64 consumed drugs at least once. In
2017, 35 million people had substance use disorders, a 14.8% increase from 30.5 million in 2016. In the
same year, 585,000 people died as a result of drug use. The extent of harm caused by drugs is equal to
losing 28 million years of “healthy” life (disability-adjusted life years or DALYs) globally. Alcohol
consumption has shown similar increases, with consequences witnessed in the rising incidence of
impaired driving. To curb the menace of drug and alcohol abuse, authorities in various countries are
focusing on implementing comprehensive drug and alcohol testing measures. Thus, the demand for drug
and alcohol testing is expected to increase in the coming years.
RESTRAINT: prohibition on workplace drug testing in some countries

Some countries, such as Canada, Colombia, Argentina, Chile, and South Africa, consider drug and
alcohol testing at the workplace to be a violation of employee privacy. For instance, in France, pre-
employment drug testing is only performed when physicians recommend the test. In Poland and the
Czech Republic, drug and alcohol tests in the workplace are prohibited. In Canada, the Eastern Canadian
case laws permit drug and alcohol testing only when workplace operations are inherently dangerous or
where drug and alcohol testing is limited to a few special cases. This may hinder the adoption of drug
and alcohol testing in these markets.
OPPORTUNITY: Emerging economies

Fingerprint-based2 drug testing is a relatively new concept that has gained ground due to the COVID-19
pandemic. The coronavirus has made it difficult to carry out drug testing in hospitals, labs, and other
facilities because of the risk of transmitting the infection. Here, fingerprint-based drug screening can
help limit the spread of COVID; it is non-invasive, less time-consuming, hygienic, enables social
distancing, portable, user-friendly, and requires no specific preparation for sample collection and
handling. This test is very easy to implement whenever and wherever required, thus offering flexible and
effective workplace drug testing. The test analyzes small traces of sweat in the fingerprint to detect drug
and drug metabolites. If this test is widely adopted, it is expected to replace urine, hair, and blood-based
drug tests. This is a significant opportunity for the market players to capitalize on in the drug screening
market.
Ha’Inbal programs to incorporate the fingerprint- based
The rapid testing devices segment will witness the highest growth during the forecast period.
Based on product, the drug screening market is segmented into analytical instruments, rapid testing
devices, and consumables. Rapid testing devices market is further sub segmented into urine testing
devices and oral fluid testing devices. The urine testing devices segment is expected to account for the
largest market share in 2019. However, the oral fluid testing devices segment is projected to register
highest CAGR during the forecast period. The high growth in this segment is attributed to the benefits it
offers such as shorter detection window, non-invasive nature, and low risk of sample tampering.
The workplace end-user segment accounted for the largest share of the drug screening market in
2019 and is also expected to grow at the highest CAGR during the forecast period.
Based on end-users, the drug screening market is segmented into workplaces, criminal justice systems
& law enforcement, drug treatment centers, pain management centers, schools & colleges, hospitals,
individual users, and drug testing laboratories. In 2019, the workplace testing segment is expected to
account for the largest share of the market. The growth of this end-user segment can be attributed to the
growing safety concerns in the workplace and the increasing number of organizations that have made
regular drug screening mandatory.
North America was the largest regional

market for drug screening market in 2019.
The drug screening market is segmented into
North America, Europe, the Asia Pacific, and the
Rest of the World. In 2019, North America was
the largest regional segment of the overall
market, followed by Europe. The dominance of
the North American market is attributed to
factors such as rising consumption of illicit
drugs, availability of government funding to
curb drug abuse, and the presence of laws
supporting drug screening, and growing burden
of accidents due to unsafe levels of alcohol
consumption.
KEY MARKET PLAYERS
The prominent players operating in this market include LabCorp (US), Quest Diagnostics (US), Alere
(US), OraSure (US), Alfa Scientific Designs (US), Thermo Fisher Scientific (US), Drägerwerk
(Germany), LifeLoc (US), MPD Inc. (US), Omega Laboratories (US), Premier Biotech (US),
Psychemedics (US), Roche (Switzerland), Shimadzu (Japan), and Siemens Healthineers (Germany).
Source:
2Ha’Inbal programs to incorporate the fingerprint-based test, once matured, into its 3th generation Hand
Held units. This together with the Ophthalmological solution will bring the screening/detection to near
100% accuracy.
Business Strategy
Business Model
The Company plans to launch its product offering through the following major product stages;
▪ The ‘plug and play’ Hand Held devices - this type of products will be offered to diversified
players in the law enforcement, surveillance, security and transportation markets. The Company
will target these customers in two primary ways: (i) Direct sales by the Company’s direct sales
force or through sales representatives. The purpose of the Company's direct sales efforts is to obtain
strategic supply agreements with key clients and service suppliers; (ii) Indirect sales through
partners or VARs - strategic and business alliances with different business partners in order to
accelerate market penetration and business growth.
▪ Embedded chips sold through OEM partnerships - the Company believes that OEMs constitute an
attractive distribution channel; the Company will interact or partner with service providers, and will
provide its solution to their customer base as an add-on capability embedded into the
manufacturers’ products.
Current Status
The Ha’Inbal technology has been tested and found effective in a variety of outdoor scenarios.
Currently, the Company is completing the development for its first-generation line of products.
The Company's estimated further technology development schedule is as follows: (i) Phase I - further
improvements of the Alcohol and Drug Detection System ADDS algorithms’ and Machine Learning
database 1st generations: 10 months. (ii) Phase II - development of the 2nd generation of ADDS,
including basic chip design and production of the first 10,000 pcs Hand Held units: 14-24 months.
Financial Highlights
Revenues Forecast
The projected sales forecast assumes:

nd generation Hand Held system will launch in Q2 2022
 2
 Chip will lunch on Q2 2023
 The following table summarizes the expected revenue streams from its applications:
Year 2021 2022 2023 2024 2025

ADDS
Units - 10,000 20,000 50,000 75,000
Ex-factory price ($) - 1,000 1,000 850 850
Projected Sales (M$) - 10 20 42.5 63.75
Chip
Units - 100,000 250,000 400,000
Ex-factory price ($) - 30 25 20
Projected Sales (M$) - 3 6.25 8
Total Projected Sales (M$) 10 23 48.75 71.75
Financial Highlights.
Ha’Inbal Budget is summarized below (K$):

1st generation …………………………………… 1200
2nd generation ……………………………….. 1800
Regulations……………………………………… 1300
Marketing and Sales program……………….... 1800
G&A…………………………………………….. 1400
Total Budget…………………………………….. 7,500
Ha’Inbal currently seeks an investment of US$ 7.5 million to accomplish its research
and development program and for launching its mass marketing plan.
Key Management Team

Ha’Inbal is run by expert personnel, including leading engineers with a vast experience in different
fields enabling reduction of development time and cost.
Dr. Zwi A. Ronai – (BSc.IE, MBA, DBA) - Founder - President and CEO
Dr. Ronai brings to the company over 40 years’ experience in manufacturing, project management,
international operations and management consulting, through his past experience as an executive in
major corporations. Dr. Ronai has acted as Project Manager, Managing Director and VP of several
recognized corporate firms (Clal Investment and Technologies Ltd. Israel and Baldwin United Inc.
USA – MD &VP International Operation, Sunshine Inc. USA) where he was involved in improving
operations, financing, turnarounds, expansions including the establishment of foreign manufacturing
facilities and global positioning, Dr. Ronai currently serves as an advisor on three private company
boards.
Mr. Pini Shanzer – (BSc.CS) - CTO and co-founder
Mr. Shanzer brings to the company over 17 years of product development, AI and IT applications and
system integrations experience. Mr. Shanzer resume includes successful QA, PDM, and CTO positions
within leading national and international corporations.
Mrs. Aurora Semeu, (BSc.EC) -VP Business Development

Mrs. Semeu served as a Captain in the Israeli Defense Force. Before joining Ha’Inbal, Mrs. Semeu
gained significant experience in Business development management as the Managing Director and
Business Development Manager in the electro-optical and medical industry, including remote sensing,
image processing and multi-spectral signature measurements.
Dr. A. Fischer – (Prof. Dr.med, D.Phil.) – Head Ophthalmological R&D Dep.

Prof. Fischer brings to the company more than 30 years’ experience Ophthalmology. Professor Fischer
is a Consultant Ophthalmic Surgeon specializing in retinal diseases and their treatment, holds an
appointment as Consultant Ophthalmic Surgeon and Principal Investigator.
Mr. Alik Ron – (BA.IR&MH) - Chairman of the Homeland Security Advisory Board
Major General Alik Ron brings to the company over 40 years of military and police experience,
accumulated during his outstanding career as founder and commander of the leading Military and
Police Special Units and Swat teams in Israel.
Mr. Ron's extensive Military and HLS experience reassures that all company's products are designed,
adapted and tested to meet the most rigorous operation requirements of our costumers.
2. THE NEED
OVERVIEW
Growing drug and alcohol consumption

Drug abuse and alcohol consumption are increasing across the globe. According to the World Drug
Report 2019, in 2017, about 5.5% of the global population aged 15–64 consumed drugs at least once. In
2017, 35 million people had substance use disorders, a 14.8% increase from 30.5 million in 2016. In the
same year, 585,000 people died as a result of drug use. The extent of harm caused by drugs is equal to
losing 28 million years of “healthy” life (disability-adjusted life years or DALYs) globally. Alcohol
consumption has shown similar increases, with consequences witnessed in the rising incidence of
impaired driving. To curb the menace of drug and alcohol abuse, authorities in various countries are
focusing on implementing comprehensive drug and alcohol testing measures. Thus, the demand for drug
and alcohol testing is expected to increase in the coming years. Key markets include:
Law enforcement agencies,
Criminal justice systems (parole officers,
correction facilities)
Border control,
Workplaces, *
Drug treatment centers,
Pain management centers,
Schools & colleges,
Hospitals,
Drug testing laboratories,
Individual users,
etc.
* The workplace end-user segment accounted for the largest share of the drug screening market in 2019 and is
also expected to grow at the highest CAGR during the forecast period.
Based on end-users, the drug screening market is segmented into In 2019, the workplace testing segment is expected to
account for the largest share of the market. The growth of this end-user segment can be attributed to the growing safety
concerns in the workplace and the increasing number of organizations that have made regular drug screening mandatory.
Source:
3. THE COMPANY’S TECHNOLOGY .
3.1 VALUE PROPOSITION
The Company's technology significantly enhances the Alcohol and illicit drug screening and detection
capacities drives a faster ROI while reducing costs and increasing overall effectiveness, creating a
strong value proposition for players in the law enforcement, criminal justice, workspace security….
sectors:
▪ Fast and efficient configuration – minimizing the time spent in control overhead and ensures fast
delivery of real-time data.
▪ Light and Miniaturized design - this miniaturization saves a great deal in volume ,mass and
complexity. Troops can benefit from light-weight detection solution.
▪ All-In-One device - Some companies
in the market are offering some of
the features of the Ha’Inbal product,
The Company technology enables
Multi Features Combination
embedded in one device.
▪ Cost reduction - compared to all the

other available solutions, this
proposed high-end technology,
significantly reduces time-to-result as
well as operational costs.
Real-time handling events – Ha’Inbal

system can capture and analyze,
selectively, the most critical
Physiological/Ophthalmological data, to
deliver fast and accurate data, such as:
presence of alcohol, illicit drug, drug types, intensity, duration, etc.…
▪ Real-time automatic wireless transmission – (optional) enabling the operator to transmit the data
to a central data base on the spot. This information can help a commanding officer oversee, control
and multiple sites. Such crucial real time information can overturn or significantly improve the
outcome of any mission.
▪ Automatic video streams analysis
▪ User friendly - the stand-alone miniaturized device connects to standard outlets, providing
fundamentally natural, intuitive familiarity. The user is free from any hassles and additional cables.
▪ Advanced AI algorithms ensures rapid, high-quality and fluent data output
4. COMPETITIVE LANDSCAPE
4.1. DIRECT COMPETITION
The global drug screening market by sample type is segmented into urine, breath, oral fluid, hair, and
other samples. The urine sample segment is estimated to account for the largest share in 2019;
however, the oral fluid samples segment is expected to register the highest growth rate during the
forecast period.
The newly introduced Fingerprint-based drug screening it is a non-invasive, less time-consuming,

hygienic, portable, user-friendly, and requires no specific preparation for sample collection and
handling. This test is very easy to implement whenever and wherever required, thus offering flexible
and effective workplace drug testing. The test analyzes small traces of sweat in the fingerprint to detect
drug and drug metabolites. If this test is widely adopted, it is expected to replace urine, hair, and blood-
based drug tests. This is a significant opportunity for the market players to capitalize on in the drug
screening market.
Possible direct competitors may include the following:
EyeDetect is an ocular-motor based lie detection technology that asks a series of

true/false questions. The system’s eye-tracking camera determines if an examinee is
truthful or deceptive regarding recent drug or alcohol use by taking approximately 60
measurements per second of involuntary eye behavior in each eye — including pupil
dilation, blink rate, response time, and other eye movements. Peer-
reviewed studies show EyeDetect detects deception with an 86
percent accuracy.
PassPoint.net™ eye tracking systems, designed by Drug Impairment Detection

Services and engineered by ISCAN Inc, provides a highly accurate prescreening for
drug and/or alcohol response testing.
However, their screening apparatus is bulky, resembling an ATM machine, and as
such not mobile.
4.2. INDIRECT COMPETITION
As mentioned, the Company defines indirect competition as companies which provide the same need
(alcohol and drug screening/detection) but not by on site and real-time response, but rather providing
improvements on the existing, urine, breath, oral fluid, hair, i.e. ages old tests, using diversified
techniques.
The prominent players operating in this market include; LabCorp (US), Quest Diagnostics (US),
Alere (US), OraSure (US), Alfa Scientific Designs (US), Thermo Fisher Scientific (US),
Drägerwerk (Germany), LifeLoc (US), MPD Inc. (US), Omega Laboratories (US), Premier
Biotech (US), Psychemedics (US), Roche (Switzerland), Shimadzu (Japan), and Siemens
Healthineers (Germany).
5. BUSINESS STRATEGY
5.1 MISSION STATEMENT AND STRATEGIC OBJECTIVES
5.1.2. Mission Statement
To become a world leader in the mobile, (hand-held) AI based, real time Rapid Drug Detection
System and embedded technologies for the law enforcement, criminal justice systems (parole
officers, correction facilities), surveillance, security management and transportation markets.
5.1.3. Strategic Objectives
The following are the Company’s specific objectives:
▪ Upgrading the first-generation algorithm, and successful development of the second generation
including the design and manufacturing of an embedded OEM microchip.
▪ To successfully introduce its initial product to enterprises in the North and South America, Asia,
Europe and other selected geographic markets.
▪ To establish a recognized and trusted brand, emphasizing quality, cost, efficiency and reliability.
▪ To establish a global network of regional and/or local distributors that will sell the company’s
products in selected geographic markets; to form a strategic partnership with Tier-1 and CE
manufacturers and distributors, in order to leverage the complementary advantages of the
Company’s solutions with the forceful advantages that an established manufacturers/distributor
may bring (e.g. a large user base).
▪ To achieve high rates of device sales worldwide. To pursue new corporate alliances and new
territorial customers aggressively.
5.2. MILESTONE STRATEGY
The Company plans to launch its product offering through the following major product stages; (i) The
‘plug and play’ stand-alone device; (ii) Embedded modules sold through OEM partnerships.
5.2.1. First Product – The HAND HELD (Stand-Alone Device)
At first, the Company will launch the ‘plug and play’ Hand Held devices - this type of products will
be offered to diversified players in the law enforcement, criminal justice systems (parole officers,
correction facilities),
▪ security and transportation… markets. The Company will target these customers in two primary
ways: (i) Direct sales by the Company’s direct sales force or through sales representatives. The
purpose of the Company's direct sales efforts is to obtain strategic supply agreements with key
clients and service suppliers; (ii) Indirect sales through partners or VARs - strategic and business
alliances with different business partners in order to accelerate market penetration and business
growth.
The Company will target these customers in two primary ways:
▪ Direct sales by the Company’s direct sales force or through sales representatives. The purpose of
the Company's direct sales efforts is to obtain strategic supply agreements with key clients and
service suppliers.
▪ Indirect sales through partners or VARs - strategic and business alliances with different business
partners in order to accelerate market penetration and business growth. The Company will seek to
cooperate with potential business partners that have established market presence, operational and
support infrastructures, existing brand recognition, and established customer base.
In both ways, revenues are based primarily on unit sales, i.e. unit shipments multiplied by the agreed
ASP for the specific product in question. Certain strategic customers that prefer to customize the
product to their specific requirements may add additional NRE arrangements and NRE payments,
depending on the nature and scope of the envisaged customization process.
5.2.2. Second Product - OEM Partnerships
▪ Embedded chips sold through OEM partnerships - the Company believes that OEMs constitute
an attractive distribution channel; the Company will interact or partner with service providers,
and will provide its solution to their customer base as an add-on capability embedded into the
manufacturers’ products.
OEMs purchase products from manufacturers, and then "bury the brand" of the product in another
offering. An OEM sale is, in a sense, a hidden form of resale. That is, when customers buy an OEM’s
product, they are also buying the Company's technology, but it is bundled into the offering and pricing.
This activity has high strategic potential, yet requires higher efforts per prospect and longer time to
reach first revenues, as it targets the higher level of the value chain.
The Company believes that OEMs constitute an attractive distribution channel; the Company will
interact or partner with Tier-1 service providers, and will provide its solution to their customer base as
an add-on capability embedded into the manufacturers’ products.
This type of distribution is beneficial to all parties, as following:
▪ OEM partners - it is in the interest of the above manufacturers to add integrated innovative
capabilities to their product offering, in order to compete effectively in their respective market.
▪ The Company - The Company will leverage the partner’s effective sales capabilities to its core
market and existing installed base, while keeping sales and support costs low (interaction with a
single channel and not multiple end-customers), gaining faster and potentially easier market
penetration for lower investments. Moreover, by cooperating with leading OEM partners, the
Company will have facilitated access to existing and potential OEM customers in different sectors
and geographic markets.
▪ End-customers - the need for self purchase, upgrade and integration of additional components
separately will be replaced by a comprehensive package, which aims to answer customer functional
needs. The end user will receive a complete product, with all of the required features, interacting
with a familiar and trusted long lasting product provider (the OEM partner) as a single point of
contact for both product purchase and later support.
Thus, the Company will continue to build close and ongoing relationships with major manufacturers,
on two levels: sales of existing products as an ongoing business, and strategic cooperation with these
companies in order to develop new products to meet future market needs.
The Company’s Product Launch and Marketing Stages - Summary
penetration level within the
manufacturers’ products
OEM
‘Plug and play’ stand-

alone device
Revenue potential from customers
5.3 CURRENT STATUS
5.3.1 Current Development Status

The Ha’Inbal technology has been tested and found effective in a variety of outdoor scenarios.
Currently, the Company is completing the development for its first-generation algorithms’.
5.3.2 Development Schedule:
The Company's estimated further technology development schedule is as follows: (i) Phase I - further
improvements of the Alcohol and Drug Detection System ADDS algorithms’ and Machine Learning
database 1st generations: 10 months. (ii) Phase II - development of the 2nd generation of ADDS,
including basic chip design and production of the first 10,000 pcs Hand Held units: 14-24 months.
5.4 KEY MILESTONES
Year I Year II
Milestone Plan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1st generation upgrade
2nd generation PDR and CDR
Implements search engine
Interfacing engines to coordinate search
Algorithmic
Integrated UI
2nd generation-Beta testing
Regulations & Licensing

2nd generation launch
Source: The Company
6. SWOT
Strengths Weaknesses
▪ Unique proprietary core ▪ Small company - Limited R&D,

technology Marketing & Sales resources
▪ Delivers high quality solution at ▪ Needs to manufacture high
relatively low costs volume inventory which may not
▪ Superior product performance - sell
including detection quality, ease ▪ No tier 1 customers
of use and integration ▪ No brand recognition
▪ Technological and product ▪ Relatively limited resources.
flexibility. Enables immediate Need to raise additional funds and
product commercialization ensure sufficient financial
▪ Adaptable architecture. Ability to backing
address specific needs of targeted ▪ Dependence on third party
customers production facilities
▪ Market know-how and expertise
▪ Highly qualified and experienced
multi-disciplinary engineering
team
Opportunities Threats
▪ Large target market: continued ▪ Failure to obtain strategic

growth in the global drug partnership agreements with drug
detection needs in the coming testing equipment manufacturers/
years distributors and other targeted
▪ Drug detection solutions are strategic partners
required for an ever-growing ▪ Competition, limiting the market
number of clientele in terms of revenue
▪ Clear market demand for ▪ Price erosion
technological solutions with ▪ Difficult to switch business model
economical, effective and flexible ▪ Limited product portfolio
adaptations ▪ No previous knowledge of the
▪ Dispersal of risk - The Company emerging markets
plans to approach a wide range of ▪ Possible emergence of copy-cat
target markets substitutes
▪ Few direct competitors, allowing
winning Tier-1 clients and setting
a leading market position
7. ORGANIZATION AND MANAGEMENT
HA’INBAL (hereinafter: The Company) is a provider of a unique range of video surveillance solutions
for mobile systems, targeting the law enforcement, criminal justice systems (parole officers, correction
facilities), surveillance, security management and transportation markets.
Founded in 2009, with headquarters in Haifa, Israel, the Company is engaged in the development,
manufacturing, marketing and selling of video surveillance products initially to the security industry
through a network of distributors.
The Company has produced sales across Israel, Europe and the Asian region demonstrating its rapid
acceptance in the marketplace with its best of breed technological offering ATALEF™, superior
mobile, real-time wireless video solutions. In addition, the Company has continued to develop new
and customized products in close conjunction with intended customers such as the hereinafter
proposed Rapid Alcohol and Drug Detection System
7.1. MANAGEMENT TEAM
Ha’Inbal is run by expert personnel, including leading engineers with a vast experience in different
fields enabling reduction of development time and cost.
Dr. Zwi A. Ronai – (BSc.IE, MBA, DBA) - Founder - President and CEO
Dr. Ronai brings to the company over 40 year’s experience in manufacturing, project management,
international operations and management consulting, through his past experience as an executive in
major corporations. Dr. Ronai has acted as Project Manager, Managing Director and VP of several
recognized corporate firms (Clal Investment and Technologies Ltd. Israel and Baldwin United Inc.
USA – MD &VP International Operation, Sunshine Inc. USA) where he was involved in improving
operations, financing, turnarounds, expansions including the establishment of foreign facilities and
global positioning, Dr. Ronai currently serves as an advisor on three private company boards.
Mr. Pini Shanzer – (BSc.CS) - CTO and co-founder
Mr. Shanzer brings to the company over 17 years of product development, AI and IT applications
and system integrations experience. Mr. Shanzer resume includes successful QA, PDM, and CTO
positions within leading national and international corporations.
Mrs. Aurora Semeu, (BSc.EC) -VP Business Development

Mrs. Semeu served as a Captain in the Israeli Defense Forces. Before joining Ha’Inbal, Mrs. Semeu
gained significant experience in Business development management as the Managing Director and
Business Development Manager in the electro-optical and medical industry, including remote
sensing, image processing and multi-spectral signature measurements.
Dr. A. Fischer – (Prof. Dr.med, D.Phil) – Head Opthalmological R&D Dep.

Prof. Fischer brings to the company more than 30 years’ experience Ophthalmology. Professor
Fischer is a Consultant Ophthalmic Surgeon specializing in retinal diseases and their treatment,
holds an appointment as Consultant Ophthalmic Surgeon and Principal Investigator.
Mr. Alik Ron – (BA.IR&MH) - Chairman of the Homeland Security Advisory Board
Major General Alik Ron brings to the company over 40 years of military and police experience,
accumulated during his outstanding career as founder and commander of the leading Military and
Police Special Units and Swat teams in Israel.
Mr. Ron's extensive Military and HLS experience reassures that all company's products are
designed, adapted and tested to meet the most rigorous operation requirements of our customers.
8. FINANCIAL HIGHLIGHTS
Revenues Forecast:
The projected sales forecast assumes:
nd generation system will launch in Q2 2022
 2
 Chip will launch in Q1 2023
 The following table summarizes the expected revenue streams from its applications:
Year 2021 2022 2023 2024 2025

ADDS
Units - 10,000 20,000 50,000 75,000
Ex-factory price ($) - 250 250 200 200
Sale price - 1,000 1,000 850 850
Projected Sales (M$) - 10 20 42.5 63.75
Chip
Units - - 100,000 250,000 400,000
Ex-factory price ($) - - 15 10 10
Sales price - - 30 25 20
Projected Sales (M$) - - 3 6.25 8
Total Projected Sales (M$) - 10 23 48.75 71.75
HEADCOUNT
The following table details Atalef’s expected human resource requirements in the
following years:
Sales General and

2021 2022 2023 2024 2025
Administrative
Chief Executive Officer 1 1 1 1 1
VP BD & Marketing 1 1 1 1 1
Chief Financial Officer 1 1 1 1 1
Sales Force - 3 5 6 6
Administrative 2 5 5 6 6
Total 5 11 13 15 15
Production Team
Production Management - 1 2 2 2
Support Technicians 1 3 4 4 4
Quality Assurance 1 2 2 2 2
Total 2 6 8 8 8
R&D Team
Chief Technology Officer 1 1 1 1 1
AI development & Supp.Team 5 5 3 2 2
Ophthalmology research 3 2 1 1 1
QA 1 1 1 1 1
Total 9 8 5 4 4
Total Headcount 17 26 27 28 28
Major recruitment in the coming year is expected to expand the Company’s production team and
business development and marketing crew.
9. FINANCIAL ANALYSIS
9.1. HISTORICAL FINANCING
Since its founding in 2009, Company activities were financed by shareholder’s loans and by organic
growth of increasing sales. The Company currently seeks an investment of $7.5 million to accomplish
its research ad development program and for launching its mass marketing plan of the Rapid
Alcohol and drug detection system.
Clarification: For all, business and practical matters, the proposed project i.e. “Rapid Alcohol and
drug detection system” should be regarded as a stand-alone project, and as such; a new
“autonomous” company will be set up/registered in due time.
9.2. BUDGET
The assumptions for Atalef’s budget for 2021 to 2025 are detailed below:
 The Company is expected to complete its 1st generation system during Q3 2021.
 The Company is expected to launch its 2nd generation Q2 2022.
 The Company is expected to launch its Chip Q1 2023.
 Rent fees includes utilities
 General and administrative team expenses are expected to be allocated towards: CEO, CFO and
administrative staff. Other expenses include traveling abroad for; regulatory, conferences, trade
shows and exhibitions.
The following summarizes Atalef’s budget for 2021 to 2025 (thousands $):
2021 2022 2023 2024 2025

Production
Production Management 120 120 240 240 240
Production Team & Support 170 425 510 510 510
Total Production Costs 170 545 750 750 750
Marketing & Business

Development
BD & Marketing Manager 150 150 170 170 170
Sales Force - 210 350 420 420
Administrative 70 175 175 210 210
Marketing Travel 75 80 100 120 120
Total Marketing Costs 295 615 620 920 920
R&D
Chief Technology Officer 150 150 170 170 170
AI development team 700 700 420 280 280
Ophthalmologists 450 300 150 150 150
QA 120 120 120 120 120
R&D Travel 110 150 75 75 75
Total R&D Costs 1,530 1,420 935 795 795
General and Administrative

Team 35 70 70 70 70
Intellectual Property 50 40 30 30 30
Regulatory 50 100 50 50 50
Rent 35 45 60 60 60
Vehicles 60 60 80 80 80
Insurance 5 10 15 20 20
Accounting and Legal 10 30 30 30 30
Miscellaneous 30 30 30 30 30
Public Relations 15 30 50 50 50
Total General and 290 415 415 420 420
Administrative
Total Budget 2,285 2,995 2,720 2,885 2,885
Monthly Burn Rate 190 250 227 240 240
Accumulated Budget 2,285 5,280 8,000 10,885 13,770
10. PROFIT & LOSS PROJECTION 2021-2025 (SHORT)
Year 2021 2022 2023 2024 2025

Total Projected Sales (M$) - 10 23 48.75 71.75
OEM Production costs:
Hand Held 2.5 5.0 10.0 15.0
Chip 0 2.0 6.0 8.0
Total production costs: -2.5 -7.0 -16.0 -23.0
Total operational budget - 2,3 -3 -2.7 -2.9 -2.9
Profit -2.3 4.5 13.3 29.1 45.1
Projected EBT (earning before tax) 2021-2025 = 89.7 Mil. US$
Following:
Our record in a nutshell
Thank you!
Our record - In a Nut Shell

The Company has launched its first leading wireless mobile video systems in 2008:
A stand-alone vehicle mounted surveillance system – high speed PTZ camera, 3600X1800
(continuous) built in real-time video encoder. The reference design guarantees a stable video/audio
streaming by using the proprietary Dynamic Bandwidth Management (DBM) technology to ensure a
smooth streaming quality even over the noisy power line
environment.
The mobile IP based system can
be remotely monitored and
controlled, anytime and from
anywhere, using commercial
network infrastructure such as
3G, Wi-Fi, WiMAX, RF,
Microwave or satellite BGAN
(Broadband Global Area
Network
(ii) Miniaturized 3G Body Worn surveillance system.
Atalef V demonstrating the adage "A picture is worth a thousand words"

referring to the idea that a complex idea can be conveyed with just a
single still image. It also aptly characterizes one of the main goals of
visualization – to absorb large amounts of data quickly. Since the
Company's core technology is not still images but real time high quality
video imaging, the “picture is even clearer”
Atalef V can and will also solve the frequent and unfortunate “hit by
friendly fire” issue on active battlefields or during covert or even overt
operations of SWAT or Special Forces thus by supplying real time
positioning information of every soldier/agent in the operations arena, via
the embedded A-GPS
Atalef V 2nd generation is to be a sophisticated Intelligence, Surveillance and Reconnaissance (ISR)

apparatus capable to relay, additional, mission critical, biometrical and intelligence information to
remote Intelligence and Security Command centres.
Selective Intelligence Collection: In the heat of battle, selective/focused intelligence collection is also
needed - and needed quickly. A Web-based application can help system users, in various functional
roles and at different command levels, to synchronize requirements and support military operations and
priorities.
As future development, the Company consider to

develop a Portable Biometric Toolset (PBT) to be
used by soldiers, agents, rescue teams, security
personnel, etc. to relay vital biometric data,
fingerprint, iris and facial scans. Furthermore, the
Company can also consider providing the SW
operational support for the system for easy
deployment and integration.
A secondary but not least issue is the Atalef V
ability to effectively solve, local (i.e. restricted
area) communication issues between team
members via Wi-Fi presently solved with 2 way,
easily discoverable, RF communication that can
sometimes compromise the whole mission.
Atalef V has a technically superior product to

any present competitor and that it will be able to grow its business rapidly in the coming years in
the security industry.
Source: The Company

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Q1 05

RAPID ALCOHOL & DRUG

All inquiries should be directed to:

The Company’s Solution

More particularly, the system is designed to be a noninvasive

The Hand-Held device will give an immediate reading/rapport to the

Those operational abilities have been achieved due to a proprietary

DRIVER: Growing drug and alcohol consumption

RESTRAINT: prohibition on workplace drug testing in some countries

OPPORTUNITY: Emerging economies

North America was the largest regional

KEY MARKET PLAYERS

The projected sales forecast assumes:

 Chip will lunch on Q2 2023

Year 2021 2022 2023 2024 2025

Ha’Inbal Budget is summarized below (K$):

Key Management Team

Mrs. Aurora Semeu, (BSc.EC) -VP Business Development

Dr. A. Fischer – (Prof. Dr.med, D.Phil.) – Head Ophthalmological R&D Dep.

Growing drug and alcohol consumption

3. THE COMPANY’S TECHNOLOGY .

3.1 VALUE PROPOSITION

▪ Cost reduction - compared to all the

Real-time handling events – Ha’Inbal

▪ Automatic video streams analysis

▪ Advanced AI algorithms ensures rapid, high-quality and fluent data output

4.1. DIRECT COMPETITION

The newly introduced Fingerprint-based drug screening it is a non-invasive, less time-consuming,

Possible direct competitors may include the following:

EyeDetect is an ocular-motor based lie detection technology that asks a series of

PassPoint.net™ eye tracking systems, designed by Drug Impairment Detection

4.2. INDIRECT COMPETITION

5.1 MISSION STATEMENT AND STRATEGIC OBJECTIVES

5.1.2. Mission Statement

5.1.3. Strategic Objectives

The following are the Company’s specific objectives:

5.2. MILESTONE STRATEGY

5.2.1. First Product – The HAND HELD (Stand-Alone Device)

The Company will target these customers in two primary ways:

5.2.2. Second Product - OEM Partnerships

‘Plug and play’ stand-

Revenue potential from customers

5.3 CURRENT STATUS

5.3.1 Current Development Status

5.3.2 Development Schedule:

5.4 KEY MILESTONES

Regulations & Licensing

Source: The Company

▪ Unique proprietary core ▪ Small company - Limited R&D,

▪ Large target market: continued ▪ Failure to obtain strategic

7. ORGANIZATION AND MANAGEMENT

7.1. MANAGEMENT TEAM

Mrs. Aurora Semeu, (BSc.EC) -VP Business Development

Dr. A. Fischer – (Prof. Dr.med, D.Phil) – Head Opthalmological R&D Dep.

 Chip will launch in Q1 2023

Year 2021 2022 2023 2024 2025

Sales General and

9.1. HISTORICAL FINANCING

2021 2022 2023 2024 2025