Tessera Defense & Homeland Security Inc.

Tessera Sets 2027 Revenue Target of $14-16 Million and Outlines Path to Approximately $30 Million by 2029

Management believes that $14-$16 million of the 2027 revenue target will be supported by backlog, signed contracts or purchase orders, existing customer expansion, new customer, and additional commercial opportunities

Netanya, Israel, September 29, 2026 - Tessera Defense and Homeland Security Inc. (NYSE American: HLSQ) ("Tessera") ("the Company") today announced its initial 2027 revenue target and longer-term financial targets through 2029, outlining a growth strategy centred on scaling the Tessera physical security platform across larger projects, additional customers, new markets and expanded capabilities.

The Company is targeting consolidated revenue of approximately $14 million to $16 million in 2027 .

Tessera currently expects 2027 revenue to be weighted toward the second half of the year , reflecting the anticipated timing of platform deployments, customer projects' cycles and commercial activity. Management believes the potential revenue targets will be comprised of the following: $7 million from backlog, signed contracts or purchase orders; $5 million from existing-customer expansion and identified commercial opportunities; $3 million from new customers and future commercial opportunities.

Using the midpoint of the Company's 2027 revenue target, the 2029 target represents an implied revenue CAGR of approximately 40% from 2027 through 2029 .

Looking beyond 2027, management is targeting consolidated revenue of approximately:

The targets reflect management's current strategic plan, which combines organic growth from Tessera's existing businesses, expansion of the Tessera platform and anticipated contributions from future acquisitions. None of these milestone targets include companies with which Tessera has an unexercised option to acquire.

At the center of Tessera's growth strategy is its integrated, site-tailored physical security platform.

The Tessera platform brings together detection, intelligence and response capabilities, connecting cameras, sensors, detection technologies, AI, software and other security infrastructure into a unified system designed around the requirements of each customer site.

Today, the platform incorporates technologies from Tessera's Zorronet and DFSL subsidiaries, as well as licensed third-party technologies, combining complementary detection and intelligence capabilities within the Tessera physical security platform. Tessera intends to continue expanding the platform by integrating additional technologies developed internally or added through future acquisitions, joint ventures and licensing agreements.

Management believes this platform model creates multiple avenues for growth.

Tessera plans to increase the number of platform deployments, expand the size and scope of individual projects, add capabilities at existing customer sites, enter new verticals and geographies, and extend its reach through integrators and channel partners.

As the installed base grows, the Company also sees an opportunity to expand software, licensing, service and support revenue associated with the platform.

Building More Value Into Each Deployment

Tessera's growth strategy is designed to move beyond selling individual technologies.

By combining multiple capabilities within a single platform, Tessera can address a broader portion of a customer's physical security requirements and pursue larger, higher-value projects.

The Company expects growth to be supported by several key drivers:

● More platform deployments: expanding adoption across critical infrastructure, energy, digital infrastructure and homeland security applications.

● Larger projects: incorporating a broader mix of Tessera technologies and capabilities into individual deployments.

● Expansion within existing customers: extending the platform to additional sites, systems and use cases.

● New markets: entering additional verticals and geographies where the platform can be tailored to local security requirements.

● Broader distribution: expanding relationships with integrators, channel partners and strategic partners capable of bringing Tessera into larger projects.

● Recurring revenue opportunities: increasing software, licensing, service and support revenue as the platform's installed base grows.

● Additional capabilities: integrating complementary technologies through internal development and selective acquisitions.

● B2B2C : increasing cooperation with existing clients who operate command and control centers to protect private and personal property.

Tessera's 2027 priorities are focused on translating the platform strategy into measurable commercial growth.

Increase adoption of the Tessera platform across new and existing customers, with a focus on larger and more complex sites.

Grow the value of each customer relationship

Add technologies, capabilities, sites and applications within existing deployments.

Increase Tessera's presence across priority verticals and geographies, including primarily the EU and USA through direct sales, integrators, channel partners and strategic relationships.

Expand software, licensing, service and support opportunities associated with the growing Tessera platform base.

Integrate additional complementary capabilities that broaden the range of physical security requirements Tessera can address.

Increase resources for potential acquisitions

To the extent the Company decides to exercise acquisition options, deployment of financial resources towards such acquisitions, including available financing.

Management expects to evaluate progress against its 2027 plan using a combination of financial and commercial indicators, including:

● 70 Tessera platform deployments/customer sites

● 15 expansion projects with existing customers

● 16 new or expanded integrator and channel relationships

● Integration of 5 additional platform capabilities