Our quarterly meeting

Every quarter, we will send you a detailed update on our achievements, successes, and failures. This update will be presented in a manner that ensures fluency and comprehensibility for every investor.

Good luck.

Finance

• Innovation Authority Grant - After successfully receiving a grant and support from the Innovation Authority last year, we have submitted a request for a continuation grant. This submission is part of our plan to secure additional funding.
• Launching the Investment Round Following the First Sales Campaign:

1. Qualified Investors - For those interested in further investment under attractive conditions, we strongly recommend arranging a personal meeting.

2. Next Crowdfunding Round - The decision regarding the crowdfunding round will be made only after completing the first sales campaign for the product and will be based on its results.

Preparation for mass production

• Completion of necessary regulations:

1. ASTM for baby products in the USA.
2. FCC for products containing electronics in the USA.
3. IP67 (waterproof).
4. Additional standards that are common in retail sales in preparation for the future.

• Production of boxes and printing materials.
• Starting mass production of 1000 units in batches of 250 each.
• Packaging and shipping to outsourced warehouses in the USA for door-to-door deliveries in the USA to parents.

Product feature and design

After receiving feedback from parents who participated in the beta test in the US, we have added new capabilities to the device.

1. Touch Sensor: A touch sensor has been integrated into the device. Over the last quarter, we also updated the software to be compatible with this new sensor.
2. Air Quality Monitoring: Recognizing the importance for many American parents to know the air quality surrounding their baby, we are excited to introduce this new feature.
3. Voice Tags: The touch sensor enables the activation of voice tags. Parents can now press the device to record various events related to their baby in natural language - such as feeding, the amount of intake, medication, etc. Utilizing speech-to-text technology, these events are logged and displayed in the LittleOne.Care Application.

The core of our system is AI

1. We are currently engaged in a continuous process of enhancing our AI's ability to analyze data in the environment of babies up to the age of 6 months.
   Our focus is on accurately identifying:

• Talking, crying, singing and music around the baby
• Sleep patterns, activity levels, and tummy time.
• The air quality in the baby's environment

2. By analyzing and presenting this data, we are able to offer insights on:

• The number of words the baby is exposed to each day, encouraging parents to talk more to their baby.
• Identifying deviations in the baby’s care routine, such as unusual instances where the baby cries without prompt attention.
• The quality of the air surrounding the baby, providing information in an accessible manner to help parents improve their baby’s living environment.
• Tummy Time: A daily summary of the time the baby spends on their belly to strengthen neck and shoulder muscles.

Application updates

• A new version of the app, compatible with the latest device, has been launched and is now available in app stores.
• This version lays the necessary technological groundwork to showcase reports and trends in the baby's life on a timeline.
• The design of the new version maintains the same graphical language, but with a cleaner layout.
• The presentation of daily data has been improved for better understanding and interpretation.
• The application's structure has been revamped, making it more user-friendly for parents to navigate and perform actions.
• Parents’ voice tags are shown as various events in the baby's diary, assisting in monitoring the baby's care.
• The baby diary within the app has been enriched with more details and functionalities.

Baby Care Specialist within the Application

background:
The production and sale of our product, along with the development of our application, represent only one part of the comprehensive solution we aim to offer parents. We are enabling parents to connect with counselors and baby care experts directly within the app.

Our goal is to create a comfortable platform for direct communication between parents and experts. For the first time, we are allowing baby care specialists, with the parant consent, to review the data on the baby's well-being in conjunction with the parents' observations.

Important Notes:

At this stage, this service is offered free of charge.

We do not assume responsibility for the cost or the quality of the baby care services.

The product is not intended for medical use.

Why Do We Offer This?

• Our product is the first baby monitor of its kind, attracting the interest of professionals in sleep consultancy, breastfeeding, nutrition, speech therapy, play therapy, psychology, and parental counseling.
• We provide these experts with a free opportunity to engage with potential clients.
• Our proposal includes the possibility for experts to earn through affiliate sales of our product.
• The primary reason is brand strengthening. By attracting an increasing number of baby care experts in key positions, we aim to enhance our market penetration and brand stability.

Operation:

• We are conducting regular shipments of the product to the USA for experimental use.
• Integration with a distribution infrastructure, which has proven capabilities and a full connection to our store, is in the scale up stage.
• We are validating the product's entry into the USA against American customs regulations.

Beta in Israel

• The tests in Israel aim to collect specific information and improve particular algorithms for R7D and patenting processes. A limited number of parents are using the device in Israel.

Final Product Sample Tests in the USA:

• By March 15, approximately five products from the sales sample will be sent to influencers and parents in collaboration with Caitlin.
• The goal is to create videos of parents using the final product.
• These videos will be utilized in our marketing campaign, coinciding with the product's official launch.

Rally USA - Completed:

• A series of meetings and events with professionals, key figures, baby experts, and parents took place in Buffalo, Rochester, Boston, and Baltimore.
• During the rally, we strengthened connections with professionals, met new baby experts, and recruited them for the product launch.

Marathon Meetings in Salt Lake City - Ariely Capital:

• Ariely Capital invited us for a week of meetings in Salt Lake City.
• The visit included a marathon of one-on-one meetings with investors, professionals, key figures, and entrepreneurs from the Salt Lake City business community and surrounding areas.
• Several dozen meetings were conducted over four days.
• The aim was to maintain contact with potential investors until the end of the first sales round.
• We acknowledge the professionalism, care, and support of Ariely Capital's team in maintaining investor relations.

Marketing and Promotion

• Preparations for the product launch on March 15 are underway, with key focuses on collaborating with top professionals in the USA and connecting with significant figures in pregnancy and childbirth.

Engagement with Warschavski Media Agency:

• After thorough consideration, we have contracted Warschavski Media Agency, known for its proven capabilities, achievements, and awards in advertising for small and medium businesses.

Caitlyn Joins LittleOne.Care

• Caitlyn, with a background in nursing, doula services, and an ongoing training as a nurse midwife, has joined our team as the "feet on the ground" in the US.
• She is a mother of twins, a former US Army first aid specialist, owner of a successful pregnancy and childbirth business, a social media influencer with nearly a million followers, and a former Mrs. America.

Product Launch on March 15: Online and Offline

• The launch will be supported by Warschavski Media Agency, Caitlyn, and leading influencers in pregnancy and childbirth.
• The launch will utilize both digital platforms and Caitlyn’s retail store opening for exposure and engagement with our product.
• Pre-launch efforts include creating films by parents using the product.

American Students

Three American students are employed at student wages for content writing, post-production, organic promotion management, technical customer support, and marketing software operation.

Two volunteer student groups are conducting market analysis and mapping operations, focusing on evolving marketing needs.