ThirdEye and High Lander Integrate Drone Detection Systems

Israeli defense technology company ThirdEye Systems announced a strategic cooperation agreement with High Lander Aviation focused on unmanned traffic management (UTM) and drone detection technologies.

Under the partnership, ThirdEye’s MeduzaX optical drone detection system will be integrated into High Lander’s Vega platform, which is used to manage and monitor drone traffic in low-altitude airspace.

According to the companies, the technical integration phase has already been completed, and the joint platform is now moving toward commercialization and deployment. The combined system is designed to provide airports, ports, utilities, government agencies, and critical infrastructure operators with a unified operational picture of drone activity — including both compliant drones broadcasting identification signals and “non-cooperative” drones that do not transmit identification data.

High Lander’s Vega platform functions as a drone traffic management system that enables authorities and operators to coordinate, monitor, and authorize drone flights. In recent years, the company has participated in multiple UTM projects internationally and promotes a broader vision of a digital operating system for low-altitude airspace, including future support for autonomous aircraft and air taxis.

ThirdEye’s MeduzaX system, meanwhile, is an AI-powered electro-optical and thermal drone detection platform designed to identify and track small, hard-to-detect drones using cameras and computer vision algorithms. Unlike radar or RF-based systems, MeduzaX operates passively without emitting signals, making it suitable for environments where low-signature detection is required.

The collaboration reflects a broader trend in both the drone and counter-UAS markets: a shift away from standalone detection or traffic management systems toward integrated platforms combining sensors, analytics, command-and-control, threat assessment, and in some cases interception capabilities.

As drone activity continues to expand across both civilian and military sectors, governments and infrastructure operators are increasingly seeking systems capable of managing crowded low-altitude airspace while simultaneously detecting unauthorized or potentially hostile drones in real time.

[Lior Segal, founder and CEO of ThirdEye Systems]

BIRD Foundation Awards $7.5 Million to U.S.-Israel Projects in AI, Cybersecurity and Healthcare

The BIRD Foundation, the U.S.-Israel Binational Industrial Research and Development Foundation, announced $7.5 million in funding for seven collaborative projects between Israeli and American companies.

According to the foundation, the participating companies are also expected to secure additional private-sector financing, bringing the total investment across the projects to approximately $20 million.

The newly approved projects span a range of sectors including AI-driven agriculture, cybersecurity, food technology, precision medicine, and mental health.

Among the selected initiatives, Israeli startup Brevel and U.S.-based Ayana Bio will work on a commercial-scale process for producing bioactive plant compounds using illuminated fermentation technology. In cybersecurity, Ensights AI Renewable Energy and Solitude Labs will collaborate on cyber protection technologies for operational technology (OT) systems used in critical infrastructure environments.

In the agtech sector, Greeneye and Nutrien Ag Solutions will develop an AI-powered precision spraying platform designed for commercial crop spraying contractors. In animal health, HT Vet and VCA Animal Hospitals will jointly develop a non-invasive scanning technology for detecting skin and subcutaneous tumors in cats while expanding diagnostic capabilities for dogs.

Additional projects include a prenatal diagnostic platform for monogenic diseases based on cell-free DNA (cfDNA), developed by Identifai-Genetics and Inocras; a cell therapy program targeting progressive multiple sclerosis by Neurogenesis and OrganaBio; and a precision medicine-based platform for personalized depression treatment developed by NeuroKaire and MindfulCare.

Founded nearly five decades ago, the BIRD Foundation was established to promote industrial R&D collaboration between Israeli and American companies. According to the organization, it has supported more than 1,200 joint projects since its inception and invested over $465 million, helping generate more than $10 billion in direct and indirect revenue.

Quantum Machines Achieves Record Performance on Rigetti Quantum Processor

[Photo: Quantum Machines founders. Credit: Ilya Melnikov]

Quantum Machines (QM) announced that it successfully operated Rigetti Computing’s Novera quantum processor using its own control and calibration platform, achieving a median two-qubit gate fidelity of 99.5% — one of the key benchmarks for quantum computer performance.

According to the company, this marks the highest full-system performance achieved to date on a Novera processor using an external control system. While Quantum Machines’ platform already interfaces with a broad range of quantum systems across the industry, the significance of this project lies in the fact that QM was able to bring Rigetti’s processor to the manufacturer’s own target performance levels using a fully external control stack.

Rather than building qubits themselves, Quantum Machines focuses on the orchestration, control, and calibration layers of quantum computers. Its OPX1000 platform provides real-time control hardware capable of generating highly precise pulses, synchronizing quantum operations, and optimizing system behavior to reduce error rates. The company also developed QUAlibrate, an automated quantum calibration framework designed to dramatically reduce the time and complexity involved in tuning quantum systems.

Rigetti, one of the better-known public quantum computing companies in the U.S., develops superconducting quantum processors and full-stack quantum computing systems that combine hardware, software, and cloud infrastructure. Its Novera platform is a commercial 9-qubit quantum processor designed for on-premise deployment in research and development environments.

As part of the project, a Quantum Machines team working onsite at Rigetti operated the processor using OPX1000 hardware and QUAlibrate software, achieving 99.93% median single-qubit gate fidelity and 99.5% median two-qubit gate fidelity across all available qubit connections.

Beyond the technical milestone, the announcement highlights a broader shift taking place in the quantum computing industry: a gradual move away from tightly integrated proprietary systems toward more modular architectures where processors, control systems, and software stacks from different vendors can interoperate. In practice, this could eventually enable organizations to combine quantum hardware and orchestration technologies from multiple suppliers without sacrificing performance.

Founded in 2018, Quantum Machines has raised approximately $280 million to date and says its technology is now used by more than half of the companies developing quantum computers worldwide. The company also collaborates with NVIDIA on hybrid quantum-classical computing systems.

IMCO Begins Manufacturing on European Soil

IMCO Group (TASE: IMCO) announced today that it has begun delivering operational systems through serial production at its Romanian subsidiary, IMROD—marking the transition from facility setup to full-scale manufacturing operations in Europe.

The move enables IMCO to operate as a local manufacturing partner for European customers, shortening delivery times, improving supply chain flexibility, and aligning with regional regulatory requirements. It is also expected to enhance the company’s ability to compete in European defense tenders, where local production capabilities are often a key requirement.

IMROD supplies integrated systems for mission-critical applications across a range of defense platforms, with a focus on armored vehicles and air defense systems. According to the company, operations comply with European Mil-Spec standards and local regulations, while offering engineering, integration, and support services to customers in the region.

The Romanian facility, first announced in September 2025, was designed to support both IMCO’s existing order backlog and growing demand in the European defense market, driven in part by rising defense budgets across the continent. At the time, the company emphasized that a European presence would allow it to qualify as a “local supplier” and deepen collaboration with platform manufacturers and system integrators.

IMCO’s defense activity focuses on electrical, electromechanical, and control systems deployed across a wide range of platforms, including armored fighting vehicles, main battle tanks, and fighter aircraft. The segment has become a key growth driver: in the first half of 2025, the company reported a 24% increase in revenue to approximately NIS 158.5 million, with defense-related sales rising 41% year-over-year.

According to CEO Ariel Kendel, the shift to full-scale operations in Europe allows IMCO to work closer to its customers and support programs in line with European industrial and regulatory frameworks, while also aligning with regional initiatives aimed at strengthening defense manufacturing and ensuring supply continuity.

The company added that the Romanian site has significant expansion potential, including plans to increase its footprint and grow its engineering and technical workforce, as part of IMCO’s broader global growth strategy.

Skylock Excels in NATO Counter-Drone Exercise

[Image: Scene from the NATO exercise in Romania. Courtesy of Autonomous Guard]

Last week, NATO conducted a large-scale operational exercise in Romania to evaluate advanced counter-drone systems—an increasingly critical capability in modern battlefields such as Ukraine. The exercise brought together 21 countries and tested more than 200 technological solutions, including the integrated Sky Dome system developed by Israeli company Skylock, a subsidiary of Autonomous Guard.

According to the company, Sky Dome consistently demonstrated the highest performance in detecting and neutralizing drones throughout the exercise. Autonomous Guard believes these results position the system as a strong contender for future procurement programs across NATO member states.

The exercise, held at the Capu Midia range on the Black Sea coast under the name LCI-X Crucible Eastern Phoenix 2026, was designed as a full-scale field trial rather than a controlled demonstration. Systems were required to operate under realistic combat conditions, handling complex scenarios such as coordinated drone swarms, timed attacks, and multiple simultaneous intrusions. Around 150 different types of drones were deployed, enabling a broad evaluation across diverse threat profiles.

The testing process included several phases. Following an initial screening round, only four systems advanced to the final stage—those developed by Skylock, Rheinmetall, Cognifly, and Bluespace. The final evaluation was attended by senior Romanian defense officials, including the Minister of Defense and the Air Force Commander. Systems that performed well are expected to be listed in NATO’s procurement portal, making them eligible for future acquisition programs.

Sky Dome is built on a multi-layered architecture combining radar, RF sensors, electro-optical systems, and acoustic sensors to deliver precise detection, classification, and tracking. The system operates across multiple ranges and is designed to counter drones that do not rely on GPS, including those using alternative navigation methods. Interception is primarily achieved through “soft-kill” techniques such as communication jamming and navigation spoofing, allowing effective neutralization even against drone swarms.

The company noted that the system also performed well against larger drones, which are typically more challenging to intercept using kinetic methods. Participation in the exercise has reportedly generated interest from additional European NATO members.

Alongside its operational efforts, Skylock is working to establish a local presence in Romania through the SAFE framework—an accelerated defense funding mechanism—in collaboration with a local partner. The company is also exploring the integration of additional interception technologies, including laser-based solutions, in line with evolving battlefield requirements.

Nanox Shuts Down South Korea Production Line and Appoints New CFO

Nanox continues its effort to shift from development and pilot deployments toward broader commercial rollout in the U.S. The company announced a new commercial agreement with Howard Technology Solutions, under which the U.S.-based firm is expected to deploy 300 Nanox.ARC systems over three years, including 60 systems in the first year.

The deal is one of the largest distribution agreements reported by Nanox to date and adds to a series of recent partnerships with U.S. distributors.

Speaking on the company’s earnings call, CEO Erez Meltzer said that recent commercial agreements collectively represent approximately 360 systems over a two- to three-year period, and pointed to a broader potential of around 400 systems globally. He described the shift as “a fundamental change in how we scale—from providing our technology to deploying it at meaningful volume,” signaling what the company views as an approaching commercial inflection point.

Alongside the new agreement, Nanox also announced a leadership change. CFO Ran Daniel will step down after five years to pursue other opportunities. He will be replaced by Guy Nathanzon, who will assume the role on August 1. Nathanzon previously held CFO and COO positions at publicly traded medtech companies, including Valens Semiconductor and Scopio Labs. The company said the appointment is intended to support its next phase of commercialization and global expansion.

At the same time, Nanox is undertaking a significant restructuring of its manufacturing operations. The company is shutting down its chip production line in South Korea, downsizing its local fabrication facility, and transitioning to an outsourced manufacturing model with international partners, including CSEM.

According to management, the Korean facility was established during the COVID-19 period, when global supply chains were disrupted and chip availability was limited. With supply conditions now stabilized, the company believes outsourcing production will reduce costs and improve efficiency. Meltzer noted that the facility will not be fully closed but repurposed primarily as an R&D center for ceramic tube development and future technologies.

The restructuring had a significant impact on fourth-quarter results. Nanox reported revenue of $3.7 million in Q4 2025, up 23% from $3.0 million a year earlier. However, the company posted a gross loss of $3.6 million and a net loss of $33.4 million, compared with a net loss of $14.1 million in the same quarter last year.

The increase in losses was driven בעיקר by a non-cash impairment of $17.5 million related to long-lived assets, following the restructuring of its Korean manufacturing operations. The company also reported higher operating expenses, including sales and marketing costs of $2.0 million (up from $0.9 million) and general and administrative expenses of $6.0 million.

In terms of revenue mix, Nanox remains primarily reliant on its teleradiology business rather than hardware sales. Revenue from teleradiology services reached $3.1 million, up from $2.8 million in the prior year, driven by customer retention, higher pricing, and increased reading volumes.

By contrast, revenue from the sale and deployment of imaging systems remained minimal at just $49,000 for the quarter. The AI and software segment contributed $0.5 million, supported in part by the consolidation of Nanox Health IT, which the company acquired in November 2025.

Beyond the financials, Nanox highlighted a range of business developments. In the U.S., the company continues to expand its distribution network through partnerships with regional imaging providers while also building a direct sales presence. It reported that Regional Sports Medicine and Orthopedic Group is among its first direct customers in the country, marking initial penetration into the orthopedic segment.

The company is also advancing its Nanox Imaging Network initiative, a model in which Nanox provides the system, maintenance, and connectivity, while local partners manage site operations and patient engagement.

Outside the U.S., Nanox continues to expand its footprint. The company announced an exclusive distribution agreement in Argentina with Intec SRL and reported ongoing efforts to build a network of partners across Europe. It also highlighted regulatory progress, including U.S. clearance of TAP2D, which enables 2D imaging output from the Nanox.ARC system, alongside continued development of its AI platform and collaborations with institutions such as Cedars-Sinai Medical Center and Meir Medical Center.

Despite the optimistic tone, management acknowledged that deployment remains relatively slow and dependent on external factors such as import licenses, construction timelines, and regulatory approvals. The company reiterated its 2026 revenue target of $35 million but clarified that most of the expected growth is likely to materialize in the second half of the year, as newly signed distribution agreements begin translating into active, revenue-generating installations.

Nexar Launches BADAS 2.0 Accident Prediction Model

Nexar has announced the launch of BADAS 2.0, the latest generation of its AI-powered road safety model, which the company says marks a significant leap forward in accident prediction technology. The new model is trained on an unusually large dataset of approximately 2 million real-world crash and near-miss events, collected from hundreds of millions of miles of driving, without relying on synthetic data.

Unlike traditional ADAS systems, which focus on detecting existing hazards, BADAS 2.0 is designed to anticipate dangerous situations before they occur. According to the company, about 91% of its alerts are issued before the moment of impact, providing a critical window for drivers or automated systems to respond and prevent collisions. The model achieves approximately 99.4% accuracy in internal benchmarks.

A key advancement in this new generation is the shift from pure prediction to reasoning. The system not only identifies potential risks but also explains the underlying causes and recommends actions, such as braking or steering adjustments. In addition, BADAS 2.0 introduces explainability features, including visual heatmaps and textual insights that clarify how decisions are made.

The model is built on what Nexar describes as a “Physical AI” approach—aimed at enabling the system to understand real-world dynamics such as motion, driver intent, and environmental behavior, rather than simply recognizing objects in images. As a result, it demonstrates strong generalization capabilities, including handling rare or complex scenarios such as low visibility conditions or unusual road situations.

BADAS 2.0 is offered in three configurations: a full model for maximum performance, a Flash version optimized for device-level deployment, and a lightweight Flash Lite version designed for dashcams, in-vehicle systems, and other edge devices. This flexibility is intended to support a wide range of applications, from advanced driver assistance systems (ADAS) to insurance platforms, smart city infrastructure, and mobility services.

The launch comes roughly six months after the introduction of the first-generation BADAS model, which focused on video-native understanding and risk prediction from the vehicle’s perspective. While the initial version demonstrated the feasibility of predicting accidents using real-world data, BADAS 2.0 expands this capability into a system that aims to interpret complex traffic scenarios, explain them, and suggest real-time responses.

From a market perspective, the move positions Nexar in the space between traditional ADAS providers and full autonomous driving platforms, with a focus on an AI layer built on real-world driving data. The combination of a large-scale dataset and a model capable of both prediction and reasoning could become a key component in next-generation safety systems and future mobility services.