Tessera Defense and Homeland Security CEO Issues Letter to Shareholders

Tessera details its post-acquisition strategy, security platform focus and recent equity and share-structure changes following its NYSE American relisting as HLSQ.

Rhea-AI Summary

Tessera Defense and Homeland Security (HLSQ)/b) has outlined its strategic shift, capital position and recent corporate actions in a CEO letter to shareholders dated September 15, 2026.The company’s common stock began trading on NYSE American under the symbol HLSQ on September 11, 2026, following a name change from BiomX (PHGE), with trading continuing without interruption. Tessera describes a unified security platform that connects cameras, sensors, detection technologies, artificial intelligence and other security systems to detect threats and coordinate real-time response, supported by subsidiaries Zorronet (AI-powered security intelligence) and DFSL (LADAR-based detection).

For the quarter ended June 30, 2026, stockholders’ equity attributable to the company was $10.9 million and total equity was $17.6 million, including approximately $25.4 million of goodwill and intangible assets from April acquisitions. Over the last three months Tessera raised over $4 million through its at-the-market program at an average price of about $2.20 per share on a split-adjusted basis and effected a 1-for-10 reverse stock split on September 9, reducing authorized shares from 750 million to 150 million.

Positive

• Stock began trading as HLSQ on NYSE American on September 11, 2026, with trading uninterrupted
• Stockholders’ equity attributable to the company was $10.9 million and total equity $17.6 million as of June 30, 2026
• ATM capital raise of over $4 million in the last three months at an average split-adjusted price of about $2.20 per share
• 1-for-10 reverse stock split on September 9 reduced authorized shares from 750 million to 150 million

Negative

• None.

Argus 15 min delay

-2.77% vs previous close $1.04 last price 0.3x rel. volume Open Argus

Details

Market Reaction – HLSQ

+10.7% Peak Tracked

$1.02 $1.10 Day Range

$2.84M Market Cap

Following this news, HLSQ has declined 2.77%, reflecting a moderate negative market reaction. Argus tracked a peak move of +10.7% during the session. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.04.

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Market Context

The September 11 transition announcement was followed by a -31.35% 24-hour reaction, providing relev...

Analysis

The September 11 transition announcement was followed by a -31.35% 24-hour reaction, providing relevant market context for this letter’s confirmation of the completed HLSQ rebrand; the current -15.75% move predates publication.

Key Figures

Stockholders' equity: $10.9 million Total equity: $17.6 million Goodwill and intangible assets: $25.4 million +4 more

Stockholders' equity

$10.9 million

At June 30, 2026

Total equity

$17.6 million

At June 30, 2026

Goodwill and intangible assets

$25.4 million

Arising from the April acquisitions

ATM proceeds

Over $4 million

Raised over the last 3 months

ATM average price

$2.20 per share

Split-adjusted average price

Reverse stock split

One-for-ten

Effective September 9, 2026

Authorized shares

750 million to 150 million

Adjusted in connection with the reverse split

Historical Context

2 past events · Latest: Sep 11

2 events

1. Sep 11

   Name/ticker change

   24h Move

   -31.4%

   Company began trading as Tessera under the HLSQ ticker

2. Sep 01

   Name change announcement

   24h Move

   +2.1%

   Company announced the Tessera name and HLSQ ticker transition

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

form 10-q, at-the-market (atm) program, reverse stock split, ladar

4 terms

form 10-q regulatory

"Our second quarter report on Form 10-Q, filed on August 19"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

at-the-market (atm) program financial

"We raised over $4 million under our at-the-market (ATM) program"

An at-the-market (ATM) program is a way for a company to sell newly issued shares directly into the open market at the current trading price over time, rather than all at once. For investors it matters because it provides a flexible, ongoing source of capital but can dilute existing ownership and put steady selling pressure on a stock’s price—similar to a store quietly adding more items for sale at the posted price.

reverse stock split financial

"We effected a one-for-ten reverse stock split on September 9"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

ladar technical

"the LADAR-based detection systems of our subsidiary DFSL"

Ladar is a sensing technology that uses laser light pulses to map distances and shapes by measuring how long it takes the light to bounce back, similar to how a bat uses echoes but with light instead of sound. Investors care because ladar systems are key components in products like self-driving cars, drones, mapping tools, and defense equipment, so advances or contracts can drive revenue, margins, and competitive position for suppliers and users.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NETANYA, Israel, Sept. 15, 2026 (GLOBE NEWSWIRE) -- Tessera Defense and Homeland Security Inc. (NYSE American: HLSQ) (“Tessera” or “the Company”) formerly BiomX Inc (NYSE American: PHGE), today released the following letter from its Chief Executive Officer to shareholders.

Dear Fellow Shareholders,

On September 11 our common stock began trading on the NYSE American under the symbol HLSQ, and our company name was changed to Tessera Defense and Homeland Security Inc. Trading continued without interruption, and no action was required on your part in connection with the name and symbol change. I want to take a moment to explain what this change represents, because a new name and ticker are the visible part of a much larger transformation.

Why now

Governments and organizations are under mounting pressure to protect the systems and sites upon which modern society depends. Recent attacks and suspected acts of sabotage affecting power infrastructure across Europe, incidents involving energy and transportation infrastructure in Germany, and the heightened protection of critical infrastructure across Poland and the Baltic states have placed physical security firmly on the international agenda.

At the same time, the tools available to security teams have not kept pace. Threats routinely cross the boundaries between physical, digital and operational domains, while the systems meant to stop them remain disconnected, each producing its own isolated alert and none producing a picture. That gap is the opportunity we have built the company to address.

What Tessera does

Tessera provides a unified security platform that connects cameras, sensors, detection technologies, artificial intelligence and other security systems into a single intelligent system, and offers solution design and advisory capabilities alongside it. The platform is designed to detect threats, interpret events as they unfold and coordinate response in real time. We are continuing to advance the technical integration of the technologies across our portfolio.

Our capabilities today include the AI-powered security intelligence technology of our subsidiary Zorronet and the LADAR-based detection systems of our subsidiary DFSL, together supporting an integrated approach to advanced sensing, real-time intelligence and autonomous response. We serve customers in homeland security and critical infrastructure and are targeting energy and digital infrastructure, as well as enterprise organizations that need advanced physical security capabilities. These are markets with long procurement cycles, high switching costs and customers who cannot afford to get it wrong, characteristics we believe reward the integrated approach we are building.

We have also published a new investor presentation that provides a more detailed look at Tessera, our platform, our portfolio of technologies, the markets we are targeting and the strategy behind the company we are building. The presentation is available here.

Where we stand

Our second quarter report on Form 10-Q, filed on August 19, was the first to reflect the businesses we acquired in April. Stockholders' equity attributable to the Company was $10.9 million at June 30, 2026, with total equity of $17.6 million. That is above the continued listing standards of the NYSE American, and includes approximately $25.4 million of goodwill and intangible assets arising from the April acquisitions.

Over the last 3 months we raised over $4 million under our at-the-market (ATM) program at an average price of approximately $2.20 per share on a split-adjusted basis. We effected a one-for-ten reverse stock split on September 9, which adjusted every holder's position proportionately and reduced our authorized shares from 750 million to 150 million.

The name

A tessera is a single tile that becomes part of a larger mosaic. Our new name reflects both how our platform works and how we are building this company: bringing together complementary technologies across detection, intelligence and response to create one integrated system. No single tile is the picture. The value is in how they fit together.

As threats grow more complex, the people responsible for national security and infrastructure protection need to understand what is happening and act faster and more accurately. Everything we build serves that objective.

The date

The name change took effect on the 25th anniversary of the September 11 attacks. We note the date in remembrance of all those who were lost, including the first responders who gave their lives working to save others.

To our shareholders

Many of you have been with this company through a significant strategic transition. I do not take that lightly. What I can tell you is that the rationale is straightforward: we are directing our resources toward markets where we believe demand is growing and where our technologies are differentiated, with the goal of enhancing shareholder value.

The work ahead is execution: integrating and commercializing our technologies, attracting customers and building the operating discipline our business requires. I look forward to reporting our progress, and I thank you for your continued confidence.

Sincerely,

Michael Oster Chief Executive Officer Tessera Defense and Homeland Security Inc. (NYSE American: HLSQ)

Forward-Looking Statements

This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's strategy, platform, capabilities, target markets, the integration of its technologies, its compliance with NYSE American continued listing standards and its financial condition. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties, including risks related to the Company's ability to execute its strategy, integrate and commercialize its technologies, achieve market acceptance, regain and maintain compliance with NYSE American continued listing standards, and raise additional capital, and those risks described in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the Form 10-K/A filed on April 30, 2026, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Actual results may differ materially from those expressed or implied. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

Investor Contact: Yair Ohayon, IR & Communication Manager, Yairo@thlsq.ai

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What markets and customer types is Tessera targeting with its unified security platform?

Tessera serves customers in homeland security and critical infrastructure and is targeting energy and digital infrastructure, as well as enterprise organizations that require advanced physical security capabilities. The company highlights these markets as having long procurement cycles, high switching costs and customers who, in its view, cannot afford to select the wrong solution.

Which technologies are currently integrated into Tessera’s platform?

The platform currently incorporates the AI-powered security intelligence technology of subsidiary Zorronet and the LADAR-based detection systems of subsidiary DFSL. Tessera states that these capabilities together support an integrated approach to advanced sensing, real-time intelligence and autonomous response, and that it is continuing to advance technical integration across its portfolio.

How does Tessera describe the rationale behind its strategic transition and name change?

The company states that it is directing resources toward markets where it believes demand is growing and where its technologies are differentiated, with the goal of enhancing shareholder value. The new name, referencing a single tile in a mosaic, is described as reflecting how Tessera’s platform brings together complementary technologies in detection, intelligence and response into one integrated system.

What does Tessera say about its compliance with NYSE American continued listing standards?

Tessera reports that stockholders’ equity attributable to the company of $10.9 million and total equity of $17.6 million as of June 30, 2026, are above the NYSE American continued listing standards.

When did the 1-for-10 reverse stock split take effect and what did it change?

The company effected a one-for-ten reverse stock split on September 9. Tessera states that the split adjusted every holder’s position proportionately and reduced its authorized shares from 750 million to 150 million.

What additional investor information has Tessera recently made available?

Tessera has published a new investor presentation that provides more detail on the company, its unified security platform, its portfolio of technologies, the markets it is targeting and the strategy behind the business it is building. The company notes that this presentation is available for investors to review.