Zorronet Secures Initial Commercial Order for Its Edge AI Systems from a Leading Global Defense Company

New autonomous Edge AI system combines thermal sensing, AI and local processing, with potential for a follow-on order of more than 1,000 units

NETANYA, Israel, Oct. 20, 2026 /PRNewswire/ -- Zorronet Ltd. ("Zorronet"), a subsidiary of Tessera Defense and Homeland Security Inc. (NYSE American: HLSQ) ("Tessera" or the "Company") today announced that it has received an initial purchase order from a leading global defense company for a newly developed Edge AI system and according to the customer, subject to successful field testing and performance validation, potential for a follow-on order of up to 1,000 units.

The system was jointly developed to address specific operational requirements defined by the customer. Combining thermal sensing, advanced AI, computer vision and high-performance local processing, it can detect and analyze events in real time and initiate predefined responses directly in the field. The customer ordered two initial units for further testing and demonstration of operational capabilities under field conditions following an initial evaluation of a working prototype.

Designed for deployment in open areas and challenging conditions, the system uses an Edge AI architecture that processes information locally, without relying on cloud services or external servers. This enables rapid decision-making and continued operation when communications are limited or unstable while keeping data processing and system control local.

The system is developed and manufactured in Israel, with Zorronet responsible for the software, integration, assembly, enclosure design and environmental sealing. The joint project demonstrates Zorronet's ability to combine its AI-powered intelligence technologies with physical sensing and computing hardware to engineer complete operational systems tailored to customer requirements.

This initial purchase order is an important step in Zorronet's expanding defense business. Zorronet is progressing from technology demonstrations and prototype development to customer orders for operational systems while broadening its capabilities beyond software integration to deliver complete, customer-specific solutions combining sensing, AI, processing and response.

"What matters to us isn't only the order itself, but the trust behind it," said Idan Wasserman, CEO of Zorronet. "We received a real operational requirement from a company with exceptional technological capabilities and experience. They brought their expertise, we brought our AI and integration capabilities, and together we developed a working solution. To me, that's how technology should be built - working alongside the people at the forefront of their field, understanding the real challenges on the ground, and creating solutions that can improve capabilities and potentially save lives. The first two units are just the beginning. Now it's our job to prove the system in the field."

"This order reflects an important development in Zorronet's capabilities and its role within Tessera," said Michael Oster, CEO of Tessera. "Defense customers increasingly need intelligent systems that can operate independently, process information locally and respond in real time, even when communications are limited. Zorronet's ability to bring together AI, sensing and computing into integrated solutions tailored to specific operational requirements positions it to pursue additional opportunities across defense, homeland security and critical infrastructure."

About Zorronet Ltd.

Zorronet develops tailored AI-powered operational intelligence solutions designed around each organization's unique environment, challenges and operational needs. Zorronet connects existing cameras, sensors and security systems to create a unified operational picture. Combining AI, machine learning, computer vision and vision-language models, Zorronet learns activity patterns, validates information across multiple sources and interprets events in context, transforming complex data into actionable intelligence. Through tailored engineering and system integration, Zorronet enables earlier threat awareness, informed decision-making and coordinated or authorized autonomous responses. Its mission is to make advanced operational intelligence accessible to organizations of different sizes and capabilities, building on their existing infrastructure and resources.

About Tessera Defense and Homeland Security Inc.

Tessera Defense and Homeland Security Inc. (NYSE American: HLSQ) is a physical security technology company providing integrated, bespoke security solutions that connect detection, intelligence and response across complex security environments. The Tessera platform integrates cameras, sensors, detection technologies, AI and other security infrastructure to identify threats, understand events and coordinate response in real time. Tessera provides the technology, hardware and implementation expertise needed to tailor security solutions to the specific requirements of each site, helping customers deploy and optimize integrated security systems across critical infrastructure, energy, digital infrastructure and homeland security applications. For more information, visit https://thlsq.ai/.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words such as "expects," "intends," "plans," "believes," "will," "may," "anticipates," "estimates," "potential," and similar expressions. These statements are based on the Company's current expectations and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those expressed or implied.

These risks and uncertainties include, among others: the ability of Zorronet Ltd. ("Zorronet") to successfully complete the testing and field evaluation of its newly developed Edge AI system and meet the defense customer's technical, operational and performance requirements; the risk that the system may not perform as anticipated under actual field conditions, including harsh environmental conditions or limited or unstable communications; the risk that the initial order may not lead to a follow-on order for additional units, and that any such orders may be delayed, reduced, modified or cancelled; the ability of Zorronet to manufacture, scale production and deliver additional units in accordance with customer specifications, schedules and quality requirements; the availability and cost of necessary components, sensors, computing hardware and other materials; the performance, reliability and accuracy of the Company's AI-powered sensing, processing and autonomous response technologies; the risk of technical challenges, system failures, integration difficulties or delays in the defense project; the ability of Zorronet to expand from software-based solutions into complete operational systems and realize the anticipated technological, strategic and commercial benefits of this expansion; the risk that the initial order may not result in material revenues or additional commercial opportunities; the Company's ability to expand its presence in defense, homeland security, critical infrastructure, autonomous systems and other target markets; the risk that geopolitical, regulatory, procurement, budgetary, technical or other factors may affect current or future projects and commercial opportunities; the Company's ability to successfully execute its acquisition and integration strategy; the risk that contemplated acquisitions or partnerships may not be completed on anticipated terms or at all; the Company's ability to obtain sufficient financing, including through its credit facilities, at-the-market equity offering program or other sources, and the potential dilution of existing stockholders; the risk that the Company may not regain compliance with the NYSE American continued listing standards within the plan period or at all; the possibility that the Company's common stock may be suspended from trading or delisted from the NYSE American; the Company's ability to raise additional capital and execute its business and strategic initiatives; the Company's going concern qualification; and the other risks described in the Company's filings with the Securities and Exchange Commission, including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026, as supplemented by the Form 10-K/A filed with the SEC on April 30, 2026, and in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, filed with the SEC on May 20, 2026 and August 19, 2026, respectively, as well as the Company's other filings with the SEC.

The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Yair Ohayon, IR & Communications Manager
[email protected]

SOURCE Tessera Defense and Homeland Security Inc