As filed with the Securities and Exchange Commissionon February 22, 2022

RegistrationNo. 333-        

UNITEDSTATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORMF-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

BeamrImaging Ltd.
(Exact name of Registrant as specified in its charter)

NotApplicable
(Translation of Registrant’s name into English)

10HaManofim Street
Herzeliya, 4672561, Israel

Tel: +1-888-520-8735

(Address,including zip code, and telephone number, including
area code, of Registrant’s principal executive offices)

Beamr, Inc.
16185 Los Gatos Blvd

Ste 205

Mailbox 12

Los Gatos, CA 95032
Tel: (650) 961-3098

(Name, address, including zip code, and telephonenumber,
including area code, of agent for service)

Approximatedate of commencement of proposed sale to the public:

Assoon as practicable after the effective date hereof.

Ifany of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 underthe Securities Act, check the following box.   ☐

Ifthis form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check thefollowing box and list the Securities Act registration statement number of the earlier effective registration statement for the sameoffering.   ☐

Ifthis form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and listthe Securities Act registration statement number of the earlier effective registration statement for the same offering.   ☐

Ifthis form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and listthe Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐

Indicateby check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerginggrowth company  ☒

Ifan emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registranthas elected not to use the extended transition period for complying with any new or revised financial accounting standards † providedpursuant to Section 7(a)(2)(B) of the Securities Act.  ☒

†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting StandardsBoard to its Accounting Standards Codification after April 5, 2012.  

Theregistrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until theregistrant shall file a further amendment which specifically states that this registration statement shall thereafter become effectivein accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date asthe Commission, acting pursuant to said Section 8(a), may determine. 

Theinformation contained in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registrationstatement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securitiesand it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

OrdinaryShares

BeamrImaging Ltd.

This is a firm commitment initial public offeringof ordinary shares, par value NIS 0.01 per share, of Beamr Imaging Ltd. Prior to this offering, there has been no public marketfor our ordinary shares. We anticipate that the initial public offering price will be between $              and$              per ordinary share.

Wehave applied to list our ordinary shares on             under the symbol “BMR.”  Itis a condition to the closing of this offering that our ordinary shares qualify for listing on a national securities exchange.

We are both an “emerging growth company”as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and a “foreign private issuer,” as definedunder the U.S. federal securities laws, and as such, are eligible for reduced public company reporting requirements.

Investingin our securities involves a high degree of risk. See “Risk Factors” beginning on page 11.

Neitherthe Securities and Exchange Commission (or the SEC) nor any state or other foreign securities commission has approved nor disapprovedthese securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

Wehave granted a 45-day option to the representative of the underwriters to purchase up to              additionalordinary shares solely to cover over-allotments, if any.

Theunderwriters expect to deliver the ordinary shares on or about              ,2022. 

ThinkEquity

Thedate of this prospectus is             , 2022. 

TABLEOF CONTENTS

Youshould rely only on the information contained in this prospectus or in any related free-writing prospectus. We and the underwriters havenot authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in anyfree writing prospectus prepared by us or on our behalf or to which we have referred you. We take no responsibility for, and can provideno assurance as to the reliability of, any information that others may give you. This prospectus is an offer to sell only the ordinaryshares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. We are not making an offer to sellthese ordinary shares in any jurisdiction where the offer or sale is not permitted or where the person making the offer or sale is notqualified to do so or to any person to whom it is not permitted to make such offer or sale. The information contained in this prospectusis current only as of the date of the front cover of the prospectus. Our business, financial condition, operating results and prospectsmay have changed since that date.

Personswho come into possession of this prospectus and any applicable free writing prospectus in jurisdictions outside the United States arerequired to inform themselves about and to observe any restrictions as to this offering and the distribution of this prospectus and anysuch free writing prospectus applicable to that jurisdiction. See “Underwriting” for additional information on these restrictions.

Untiland including                 , 2022 (the 25th day afterthe date of this prospectus), all dealers effecting transactions in our ordinary shares, whether or not participating in this offering,may be required to deliver a prospectus. This delivery requirement is in addition to a dealer’s obligation to deliver a prospectus whenacting as an underwriter and with respect to an unsold allotment or subscription.

Forinvestors outside of the United States: Neither we nor any of the underwriters have taken any action to permit this offering or possessionor distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Youare required to inform yourselves about and to observe any restrictions relating to this offering and the distribution of this prospectus.

Theterms “shekel,” “Israeli shekel” and “NIS” refer to New Israeli Shekels, the lawful currency of theState of Israel, and the terms “dollar,” “U.S. dollar” or “$” refer to United States dollars, thelawful currency of the United States of America. All references to “shares” in this prospectus refer to ordinary shares ofBeamr Imaging Ltd., par value NIS 0.01 per share.

Weare incorporated under Israeli law and under the rules of the U.S. Securities and Exchange Commission, or the SEC, we are currentlyeligible for treatment as a “foreign private issuer.” As a foreign private issuer, we will not be required to file periodicreports and financial statements with the SEC as frequently or as promptly as domestic registrants whose securities are registered underthe Securities Exchange Act of 1934, as amended, or the Exchange Act.

Forpurposes of this Registration Statement on Form F-1, “Company”, “Beamr”, “we” or “our”refers to Beamr Imaging Ltd. and its subsidiaries unless otherwise required by the context.

INDUSTRYAND MARKET DATA

Thisprospectus includes statistical, market and industry data and forecasts which we obtained from publicly available information and independentindustry publications and reports that we believe to be reliable sources. These publicly available industry publications and reportsgenerally state that they obtain their information from sources that they believe to be reliable, but they do not guarantee the accuracyor completeness of the information. Although we are responsible for all of the disclosures contained in this prospectus, including suchstatistical, market and industry data, we have not independently verified any of the data from third-party sources, nor have we ascertainedthe underlying economic assumptions relied upon therein. In addition, while we believe the market opportunity information included inthis prospectus is generally reliable and is based on reasonable assumptions, such data involves risks and uncertainties, including thosediscussed under the heading “Risk Factors.”

PRESENTATIONOF FINANCIAL INFORMATION

Ourfinancial statements were prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP.We present our consolidated financial statements in U.S. dollars.

Ourfiscal year ends on December 31 of each year. Our most recent fiscal year ended on December 31, 2021.

Certainfigures included in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tablesmay not be an arithmetic aggregation of the figures that precede them.

TRADEMARKSAND TRADE NAMES

We own or have rights to trademarks,service marks and trade names that we use in connection with the operation of our business, including our corporate name, logos and websitenames. Other trademarks, service marks and trade names appearing in this prospectus are the property of their respective owners. Solelyfor convenience, some of the trademarks, service marks and trade names referred to in this prospectus are listed without the ^®and ™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our trademarks, service marksand trade names.

GLOSSARYOF INDUSTRY TERMS AND CONCEPTS

Thefollowing is a list of certain industry terms and concepts that are used in this prospectus:

“API”means application programming interface, which is a software intermediary that allows two applications to talk to each other.

“ASIC”means an application-specific integrated circuit which is an integrated circuit chip customized for a particular use, rather than intendedfor general-purpose use.

“AVC”means advanced video coding, also referred to as H.264 or MPEG-4 Part 10, which is a video compression standard based on block-oriented,motion-compensated integer-discrete cosine transform coding.

“BQM”means the proprietary Beamr quality measure which is an artificial intelligence trained computer vision processing architecture.

“CABR”means content adaptive bitrate which refers to our technology combined with our BQM that uses a flexible computer vision engine programmedwith a high level algorithm description to achieve maximal compression of the video input while maintaining the input video resolution,format, and visual quality.

“Codec”means a device or computer program which encodes or decodes a data stream, bitstream or signal.

“CPU”means central processing unit which is the electronic circuitry in a computer that executes instructions.

“FPGA”means field-programmable gate array which is a hardware circuit that a user can program to carry out one or more logical operations.

“GPU”means graphics processing unit which is a specialized electronic circuit designed to rapidly manipulate and alter memory using parallelcomputations to accelerate the creation of images in a frame buffer intended for output to a display device.

“HDR”means high dynamic range imaging which is the set of techniques used to reproduce a greater range of luminosity than that which is possiblewith standard photographic or video graphic techniques.

“HEVC”means high efficiency video coding, also known as H.265 and MPEG-H Part 2, which is a video compression standard designed as part ofthe MPEG-H project as a successor to the widely used AVC standard.

“HLG”means hybrid log-gamma, an HDR format that uses the HLG transfer function, BT.2020 color primaries and a bit depth of 10-bits.

“JPEG”means joint photographic experts group which is a commonly used format for lossy compression for digital images, particularly for imagesproduced by digital photography.

“ITUBT. 500” is an international standard for testing image quality.

“OTT”means over-the-top which is a means of providing television and film content over the internet at the request and to suit the requirementsof the individual consumer. Services like Netflix, ViacomCBS and Wowza are video OTT services.

“PSNR”means peak signal to noise ratio which is a quality measure which represents the ratio between the highest power of an original signaland the power level of the distortion, on logarithmic scale.

“SiliconIP” is a reusable unit of logic, cell, or chip layout design and is also the intellectual property of one party. Silicon IPcan be used as building blocks within application-specific integrated circuits (ASIC) chip designs or field programmable gate array (FPGA)logic designs.

“SSIM”means structural similarity index measure which is a technique to predict the perceived quality of digital images and videos.

“UGC”means user generated content which refers to any form of content, such as images, videos, text, and audio, that has been created or postedby users on online platforms.

“VBR”means variable bit rate which relates to the bitrate used in sound or video encoding.

RISKFACTORS

        Investingin our ordinary shares involves a high degree of risk. You should carefully consider the risks and uncertainties described below, inaddition to the other information set forth in this prospectus, including the consolidated financial statements and the related notesincluded elsewhere in this prospectus, before purchasing our ordinary shares. If any of the following risks actually occurs, our business,financial condition, cash flows and results of operations could be negatively impacted. In that case, the trading price of our ordinaryshares would likely decline and you might lose all or part of your investment. This prospectus also contains forward-looking statementsthat involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statementsas a result of certain factors, including the risks faced by us described below and elsewhere in this prospectus. See “SpecialNote Regarding Forward-Looking Statements.”

RisksRelated to Our Business and Industry

Wehave a history of losses and may not be able to achieve or maintain profitability.

We have incurred losses in each year since our incorporation in 2009,including net losses of $0.9 million and $2.4 million in the years ended December 31, 2021 and 2020, respectively. As a result, we hadan accumulated deficit of $29.7 million as of December 31, 2021. We intend to continue to expend substantial financial and other resourceson, among other things:

Theseefforts may prove more expensive than we currently anticipate, and we may not succeed in increasing our revenue sufficiently, or at all,to offset these higher expenses. In addition, to the extent we are successful in increasing our customer base, we may also incur increasedlosses because of unforeseen costs. If our revenue does not increase to offset our operating expenses, we will not achieve profitabilityin future periods and our net losses may increase. Revenue growth may slow or revenue may decline for a number of possible reasons, manyof which are beyond our control, including inability to penetrate new markets, slowing demand for our products and services, increasingcompetition, or any of the other factors discussed in this Risk Factors section. Any failure to increase our revenue as we grow our businesscould prevent us from achieving profitability at all or on a consistent basis, which would cause our business, financial condition andresults of operations to suffer and the market price of our ordinary shares to decline.

Wewill need to raise additional capital to meet our business requirements in the future, and such capital raising may be costly or difficultto obtain and could dilute our shareholders’ ownership interests.

Inorder for us to pursue our business objectives, we will need to raise additional capital, which additional capital may not be availableon reasonable terms or at all. Any additional capital raised through the sale of equity or equity-backed securities may dilute our shareholders’ownership percentages and could also result in a decrease in the market value of our equity securities. The terms of any securities issuedby us in future capital transactions may be more favorable to new investors, and may include preferences, superior voting rights andthe issuance of warrants or other derivative securities, which may have a further dilutive effect on the holders of any of our securitiesthen outstanding. In addition, we may incur substantial costs in pursuing future capital financing, including investment banking fees,legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. We may also be requiredto recognize non-cash expenses in connection with certain securities we issue, such as convertible notes and warrants, which may adverselyimpact our financial condition.

Ourindebtedness could adversely affect our ability to raise additional capital to fund operations, limit our ability to react to changesin the economy or our industry and prevent us from meeting our financial obligations.

We currently have an outstanding loan with the Silicon Valley Bank,or SVB, from February 2017, in the original principal amount of $3.0 million which is secured by all our assets, and on February 17, 2022entered into an additional loan agreement with SVB providing for acredit line against accounts receivables, as further described in “Management’sDiscussion & Analysis—Liqudity and Resources—Loan and Security Agreement” which will be secured by all our assets.As of February 22, 2022, the outstanding balance of loans to SVB is approximately $0.3 million. If we cannot generate sufficient cashflow from operations to service our debt, we may need to further refinance our debt, dispose of assets or issue equity to obtain necessaryfunds. We do not know whether we will be able to do any of this on a timely basis, on terms satisfactory to us, or at all. Our indebtednesscould have important consequences, including:

Tosupport our business growth we are expanding our product offering to include the Beamr HW-Accelerated Content Adaptive Encoding solution,a new SaaS solution, the development and commercialization of which may not be successful. This change in our products and services alsomakes it difficult to evaluate our current business and future prospects and may increase the risk that we will not be successful.

Our current product lineis mainly geared to the high end, high quality media customers and we count among our customers Netflix, ViacomCBS, Snapfish, Wowza andother leading media companies using video and photo solutions.  This product line involves high cost and complexity of deployingour existing software solutions and the long sales lead times.

In order to grow our business,in 2019, we resolved to build a lower cost offering which requires hardware acceleration and started to integrate with hardware encoders.In the first quarter of 2020, we introduced our first proof of concept results with Intel’s GPU. Then, we made a strategic decisionto focus our resources on the development and commercialization of our next-generation product, the Beamr HW-Accelerated Content AdaptiveEncoding solution, a SaaS solution that is designed, based on our own internal testing, to provide up to 10x cost-effective video optimizationthan existing solutions to an industry agnostic target market. This change in strategy and these efforts may prove more expensive thanwe currently anticipate, or may require longer development and deployment times, and we may not succeed in fully developing and implementingour SaaS solution sufficiently, or at all.

Wemay not be successful in establishing and maintaining strategic partnerships, which could adversely affect our ability to develop andcommercialize our SaaS solution and other future products.

Tosuccessfully develop and commercialize our Beamr HW-Accelerated Content Adaptive Encoding solution and other product offerings, we willneed substantial financial resources as well as expertise and physical resources and systems. We may elect to develop some or all ofthese physical resources and systems and expertise ourselves, or we may seek to collaborate with another company or companies that canprovide some or all of such physical resources and systems as well as financial resources and expertise. For example, we are collaboratingwith NVIDIA, a leading developer of GPUs, in the development of our next generation product, the Beamr HW-Accelerated Content AdaptiveEncoding solution, and we are collaborating with Allegro DVT in the development the world’s first content-adaptive silicon IP encoder.

We face significant competitionin seeking appropriate partners for our products, and the negotiation process is time-consuming and complex. In order for us to successfullydevelop and commercialize our products with a strategic partner, potential partners must view our products as economically valuable inmarkets they determine to be attractive in light of the terms that we are seeking and other available products for licensing by othercompanies. Even if we are successful in our efforts to establish strategic partnerships, the terms that we agree upon may not be favorableto us, and we may not be able to maintain such strategic partnerships if, for example, development of a product is delayed or sales ofa product are disappointing. Any delay in entering into strategic partnership agreements related to our products could delay the developmentand commercialization of our products and reduce their competitiveness even if they reach the market. If we fail to establish and maintainstrategic partnerships related to our products, we will bear all of the risk and costs related to the development and commercializationof our products, and we will need to seek additional financing, hire additional employees and otherwise develop expertise which we donot have and for which we have not budgeted.

Therisks in a strategic partnership include the following:

In addition, a strategic partnerfor one or more of our products may have the right to terminate the collaboration at its discretion. For example, our collaboration withNVIDIA is based on a mutual development program of our Beamr HW-Accelerated Content Adaptive Encoding solution that is in advanced stagesand that has been approved at senior levels at NVIDIA however our collaboration has not been reduced to a written agreement and we havenot signed any agreement with NVIDIA, which exposes us to the risk of termination of our collaboration at any time for any or no reason.Any early termination of our collaboration in a manner adverse to us could have a material adverse effect on our liquidity, financialcondition and results of operations. Any termination may require us to seek a new strategic partner or partners, which we may not be ableto do on a timely basis, if at all, or require us to delay or scale back our development and commercialization efforts. The occurrenceof any of these events could adversely affect the development and commercialization of our products or product candidates and materiallyharm our business and share price by delaying the development of our products, and the sale of any products, by slowing the growth ofsuch sales, by reducing the profitability of the product and/or by adversely affecting the reputation of the product.

Further,a strategic partner may breach an agreement with us, and we may not be able to adequately protect our rights under these agreements.Furthermore, a strategic partner will likely negotiate for certain rights to control decisions regarding the development and commercializationof our products and may not conduct those activities in the same manner as we would do so.

Ourfuture growth depends in part upon the successful deployment of the Beamr HW-Accelerated Content Adaptive Encoding solution in the cloud.

Ourcurrent business is based on software licensing and is not capital intensive, usually paid for by our customers upfront on an annualbasis. We are planning to expand our product offering with the Beamr HW-Accelerated Content Adaptive Encoding solution, a SaaS solutionwhich is to be deployed on cloud platforms (e.g., AWS, Azure, and GCP) and will be volume-based solutions. Future payments that we willmake to cloud platforms and payments we will receive from customers are hard to predict and will be based on different terms and conditions.We may also be at risk if there will be gaps between account receivables and account payables. In addition, attracting new customersto our SaaS offering may involve evaluation processes that prospects may not be willing to cover before experiencing satisfying resultswith our products and services, while we will continue to accrue cloud platform service costs.

Weexpect our SaaS operation will be based on spreads in which we first pay for computing platforms (e.g. GPU instances), and then we sellstorage/bandwidth savings (e.g., AWS S3, CloudFront). Any future margins may be at risk if computing platform costs increase and storage/bandwidthcosts decrease. In addition, our ability to grow and maintain customer base and revenue also depends on achieving significant storage/bitratesavings, translating into superior total cost of ownership and return on investment for our customers. While we believe that the BeamrHW-Accelerated Content Adaptive Encoding solution will result in significant savings for our customers, there is a risk that our savingsfor the customers might not be significant.

Inaddition, the Beamr HW-Accelerated Content Adaptive Encoding solution is based on hardware acceleration of our core technology. Whilewe successfully tested our technology and our technology and software libraries have matured, the new implementation of the Beamr HW-AcceleratedContent Adaptive Encoding has only been tested in limited proof of concept testing, and there is a technical risk when we transitionto ultra-high volume production and utilizing platforms that were not tested.

There is a risk that we may not win customers that moved their long-tailassets to cold, or off-line storage services (e.g., Amazon S3 Glacier) for reduced storage costs. In addition, improvements in generalencoding solutions that are based on “content-adaptive” or “content-aware” technologies may reduce the savingswhich our products and services can provide. Moreover, if the public cloud data services that utilize NVIDIA GPUs (e.g., Amazon, GCP,Azure) do not adopt, or take significant time to adopt, the Nvidia driver and firmware with our new capabilities, that could adverselyaffect our market penetration and future revenue growth.

Webelieve any future revenue growth will depend on a number of factors, including, among other things, our ability to:

Ifwe are unable to accomplish any of these objectives, any revenue growth will be impaired. Many factors may contribute to declines ingrowth rate, including increased competition, slowing demand for our offerings, a failure by us to continue capitalizing on growth opportunities,the maturation of our business, and global economic downturns, among others. If our growth rate declines as a result of this or any ofthe other factors described above, investors’ perceptions of our business and the market price of our ordinary shares could beadversely affected.

Ourability to forecast our future results of operations is subject to a number of uncertainties, including our ability to effectively planfor and model future growth. We have encountered in the past, and may encounter in the future, risks and uncertainties frequently experiencedby growing companies in rapidly changing industries that may prevent us from achieving the objectives outlined herein. If we fail toachieve the necessary level of efficiency in our organization as it grows, or if we are not able to accurately forecast future growth,our business would be adversely affected. Moreover, if the assumptions that we use to plan our business are incorrect or change in reactionto changes in our market, or if we are unable to maintain consistent revenue or revenue growth, the market price of our ordinary sharescould be volatile, and it may be difficult to achieve and maintain profitability.

Thefailure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base andachieve broader market acceptance of our offerings.

Ourability to increase our customer base and achieve broader market acceptance of our products and services and in particular the BeamrHW-Accelerated Content Adaptive Encoding solution will depend to a significant extent on our ability to expand our sales and marketingoperations. As part of our growth strategy, we plan to dedicate significant resources to our marketing programs. All of these effortswill require us to invest significant financial and other resources. Our business will be harmed if our efforts do not generate a correspondinglysignificant increase in revenue.

Ourbusiness and operations have experienced growth, and if we do not appropriately manage this growth and any future growth, or if we areunable to improve our systems, processes and controls, our business, financial condition, results of operations and prospects will beadversely affected.

Weplan to make continued investments in the growth and expansion of our business and customer base including in particular substantialinvestment of resources in the development and commercialization of our next-generation product, the Beamr HW-Accelerated Content AdaptiveEncoding solution. The growth and expansion of our business places a continuous and significant strain on our management, operational,financial and other resources. In addition, as customers adopt our offerings for an increasing number of use cases, we have had to supportmore complex commercial relationships. In order to manage our growth effectively, we must continue to improve and expand our informationtechnology and financial infrastructure, our security and compliance requirements, our operating and administrative systems, our customerservice and support capabilities, our relationships with various partners and other third parties, and our ability to manage headcountand processes in an efficient manner.

Wemay not be able to sustain the pace of improvements to our products and services, or the development and introduction of new offerings,successfully, or implement systems, processes, and controls in an efficient or timely manner or in a manner that does not negativelyaffect our results of operations. Our failure to improve our systems, processes, and controls, or their failure to operate in the intendedmanner, may result in our inability to manage the growth of our business and to forecast our revenue, expenses, and earnings accurately,or to prevent losses.

Aswe continue to expand our business and operate as a public company, we may find it difficult to maintain our corporate culture whilemanaging our employee growth. Any failure to manage our anticipated growth and related organizational changes in a manner that preservesour culture could negatively impact future growth and achievement of our business objectives. Additionally, our productivity and thequality of our offerings may be adversely affected if we do not integrate and train our new employees quickly and effectively. Failureto manage our growth to date and any future growth effectively could result in increased costs, negatively affect customer satisfactionand adversely affect our business, financial condition, results of operations and growth prospects.

Theongoing COVID-19 pandemic could adversely affect our business, financial condition and results of operations.

InDecember 2019, an outbreak of a novel coronavirus disease, or COVID-19, was first identified and began to spread across the globe and,in March 2020, the World Health Organization declared it a pandemic. This contagious disease has spread across the globe and is impactingeconomic activity and financial markets worldwide, including countries in which our end users and customers are located, as well as theUnited States and Israel where we have business operations. As a result of the COVID-19 pandemic, government authorities around the worldhave ordered schools and businesses to close, imposed restrictions on non-essential activities and required people to remain at homewhile imposing significant restrictions on traveling and social gatherings.

Inlight of the uncertain and rapidly evolving situation relating to the spread of COVID-19, as well as government mandates, we took precautionarymeasures intended to minimize the risk of the virus to our employees, our customers, our partners and the communities in which we operate,which could negatively impact our business. In the first quarter of 2020, we temporarily closed all of our offices and enabled our entireworkforce to work remotely. We also suspended all travel worldwide for our employees for non-essential business. While we subsequentlyreopened our offices, most of our employees continued to work remotely, a majority of whom continue to do so as of the date of this prospectus.These changes could extend into future quarters.

WhileCOVID-19 has not had a material adverse impact on our operations through the date of this prospectus, the impact of COVID-19 on our abilityto attract, serve, retain or upsell customers is inherently uncertain and depends on the duration, severity and potential resurgenceof the pandemic and its impact on end users, customers and the macroeconomic environment as a whole. Prior to the COVID-19 pandemic,our employees traveled frequently to establish and maintain relationships with one another, as well as our customers, partners, and investors.Although we continue to monitor the situation and may adjust our current policies as more information and public health guidance becomeavailable, continued limitations on travel and doing business in person may negatively affect our customer success efforts, sales andmarketing efforts, challenge our ability to enter into customer contracts in a timely manner, slow down our recruiting efforts, or createoperational or other challenges, any of which could adversely affect our business, financial condition and results of operations.

Furthermore,COVID-19 has disrupted and may continue to disrupt the operations of our customers and technology partners for an indefinite period oftime, including as a result of travel restrictions and/or business shutdowns, all of which could negatively impact our business, financialcondition and results of operations. More generally, the COVID-19 pandemic has adversely affected economies and financial markets globally,leading to an economic downturn, which could decrease technology spending and adversely affect demand for our offerings and harm ourbusiness, financial condition and results of operations. Existing and potential customers may choose to reduce or delay technology investmentsin response to the COVID-19 pandemic, or attempt to renegotiate contracts and obtain concessions, which may materially and negativelyimpact our operating results, financial condition and prospects. For example, as a result of COVID-19, we have experienced and expectto continue to experience an increase in the average length of sales cycles to onboard new customers, delays in new projects, and requestsby some customers for extension of payment obligations, all of which could materially and adversely impact our business, financial conditionand results of operations in future periods. The COVID-19 pandemic has also resulted in, and may continue to result in, significant disruptionof global financial markets, reducing our ability to access capital, which could in the future negatively affect our liquidity. It isalso possible that continued widespread remote work arrangements may have a negative impact on our operations, the execution of our businessplans, the productivity and availability of key personnel and other employees necessary to conduct our business, and on third-party serviceproviders who perform critical services for us, or otherwise cause operational failures due to changes in our normal business practicesnecessitated by the pandemic and related governmental actions. If a natural disaster, power outage, connectivity issue, or other eventoccurred that impacted our employees’ ability to work remotely, it may be difficult or, in certain cases, impossible, for us tocontinue our business for a substantial period of time. The increase in remote working may also result in privacy, data protection, datasecurity, and fraud risks, and our understanding of applicable legal and regulatory requirements, as well as the latest guidance fromregulatory authorities in connection with the COVID-19 pandemic, may be subject to legal or regulatory challenge, particularly as regulatoryguidance evolves in response to future developments.

Itis not possible at this time to estimate the long-term impact that COVID-19 could have on our business, financial condition and resultsof operations as the impact will depend on future developments, which are highly uncertain and cannot be predicted, including, but notlimited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, and how quicklyand to what extent normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, we may experiencematerially adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or mayoccur in the future.

Themarkets for our offerings are new and evolving and may develop more slowly or differently than we expect. Our future success dependson the growth and expansion of these markets and our ability to adapt and respond effectively to evolving market conditions.

Themarkets in which we operate, in particular the video storage market, are relatively new and rapidly evolving. Accordingly, it is difficultto predict customer adoption, renewals and demand, the entry of new competitive products, the success of existing competitive products,and the future growth rate, expansion, longevity, and size of the markets for our products and services. The expansion of these new andevolving markets depends on a number of factors, including the cost, performance, and perceived value associated with the technologiesthat we and others in our industry develop. If we or other companies in our industry experience security incidents, loss of customerdata, or disruptions in delivery or service, the market for these applications as a whole, including the demand for our offerings, maybe negatively affected. If video products and solutions such as ours do not continue to achieve market acceptance, or there is a reductionin demand caused by decreased customer acceptance, technological challenges, weakening economic conditions, privacy, data protectionand data security concerns, governmental regulation, competing technologies and products, or decreases in information technology spendingor otherwise, the market for our offerings might not continue to develop or might develop more slowly than we expect, which could adverselyaffect our business, financial condition, results of operations and growth prospects.

Ourresults of operations are likely to fluctuate from quarter to quarter and year to year, which could adversely affect the trading priceof our ordinary shares.

Ourresults of operations, including our revenue, cost of revenue, gross margin, operating expenses, cash flow, and deferred revenue, havefluctuated from quarter to quarter and year to year in the past and may continue to vary significantly in the future so that period-to-periodcomparisons of our results of operations may not be meaningful. Accordingly, our financial results in any one quarter should not be reliedupon as indicative of future performance. Our quarterly financial results may fluctuate as a result of a variety of factors, many ofwhich are outside of our control, may be difficult to predict, and may not fully reflect the underlying performance of our business.Factors that may cause fluctuations in our quarterly financial results include:

Inparticular, our cost of revenue is generally higher in periods during which we acquire new customers.

Theimpact of one or more of the foregoing or other factors may cause our results of operations to vary significantly. Such fluctuationsmake forecasting more difficult and could cause us to fail to meet the expectations of investors and securities analysts, which couldcause the trading price of our ordinary shares to fall substantially, resulting in the loss of all or part of your investment, and subjectus to costly lawsuits, including securities class action suits.

Theloss of one or more of our significant customers, or any other reduction in the amount of revenue we derive from any such customer, wouldadversely affect our business, financial condition, results of operations and growth prospects.

Our future success is dependenton our ability to establish and maintain successful relationships with a diverse set of customers.

We currently derive a significantportion of our revenue from a limited number of our customers. For the years ended December 31, 2021 and December 31, 2020, our top tencustomers in the aggregate accounted for approximately 62% of our revenues.

Until we can derive revenue,if any, from the Beamr HW-Accelerated Content Adaptive Encoding solution, we expect to continue to derive a significant portion of ourrevenue from a limited number of customers in the future and, in some cases, the portion of our revenue attributable to individual customersmay increase. The loss of one or more significant customers or a reduction in the amount of revenue we derive from any such customercould significantly and adversely affect our business, financial condition and results of operations. Customers may choose not to renewtheir contracts or may otherwise reduce the breadth of the offerings which they purchase for any number of reasons. We are also subjectto the risk that any such customer will experience financial difficulties that prevent them from making payments to us on a timely basisor at all.

Ifwe are not able to keep pace with technological and competitive developments and develop or otherwise introduce new products and solutionsand enhancements to our existing offerings, our offerings may become less marketable, less competitive or obsolete, and our business,financial condition and results of operations may be adversely affected.

Themarkets in which we compete are characterized by rapid technological change, frequent introductions of new products, services, featuresand capabilities, and evolving industry standards and regulatory requirements. Our ability to grow our customer base and increase ourrevenue will depend in significant part on our ability to develop or otherwise introduce new products and solutions; develop or otherwiseintroduce new features, integrations, capabilities and other enhancements to our existing offerings on a timely basis; and interoperateacross an increasing range of devices, operating systems and third-party applications. The success of any new products or solutions,or enhancements to our existing offerings, will depend on a number of factors including, but not limited to, the timeliness and effectivenessof our research and product development activities and go-to-market strategy, our ability to anticipate customer needs and achieve marketacceptance, our ability to manage the risks associated with new product releases, the effective management of development and other spendingin connection with the product development process, and the availability of other newly developed products and technologies by our competitors.

Inaddition, in connection with our product development efforts, we may introduce significant changes to our existing products or solutions,or develop or otherwise introduce new and unproven products or solutions, including technologies with which we have little or no priordevelopment or operating experience. These new products, solutions and updates may not perform as expected, may fail to engage our customerbase or other end users of our products, or may otherwise create a lag in adoption of such new products. New products may initially sufferfrom performance and quality issues that may negatively impact our ability to market and sell such products to new and existing customers.We have in the past experienced bugs, errors, or other defects or deficiencies in new products and product updates and delays in releasingnew products, deployment options, and product enhancements and may have similar experiences in the future. As a result, some of our customersmay either defer purchasing our offerings until the next upgrade is released or switch to a competitor if we are not able to keep upwith technological developments. To keep pace with technological and competitive developments we have in the past invested, and may inthe future invest, in the acquisition of complementary businesses, technologies, services, products, and other assets that expand ourofferings. We may make these investments without being certain that they will result in products or enhancements that will be acceptedby existing or prospective customers or that will achieve market acceptance. The short- and long-term impact of any major change to ourofferings, or the introduction of new products or solutions, is particularly difficult to predict. If new or enhanced offerings failto engage our customer base or other end users of our products, or do not perform as expected, we may fail to generate sufficient revenue,operating margin, or other value to justify our investments in such products, any of which may adversely affect our reputation and negativelyaffect our business in the short-term, long-term, or both. If we are unable to successfully enhance our existing offerings to meet evolvingcustomer requirements, increase adoption and use cases of our offerings, develop or otherwise introduce new products and solutions andquickly resolve security vulnerabilities or other errors or defects, or if our efforts in any of these areas are more expensive thanwe expect, our business, financial condition and results of operations would be adversely affected.

Ifwe are not able to maintain and expand our relationships with third-party technology partners to integrate our offerings with their productsand solutions, our business, financial condition and results of operations may be adversely affected.

Oursuccess depends in part on our ability to integrate our products and services with a variety of network, hardware and software platforms,and we need to continuously modify and enhance our offerings to adapt to changes in hardware, software, networking, browser and databasetechnologies. Third-party products and services are constantly evolving, and we may not be able to modify our offerings to ensure theircompatibility with those of other third parties following development changes. Any losses or shifts in the market position of the providersof these third-party products and services could require us to identify and develop integrations with new third-party technologies. Suchchanges could consume substantial resources and may not be effective. Any expansion into new geographies may also require us to integrateour offerings with new third-party technologies, products and services and invest in developing new relationships with these providers.If we are unable to respond to changes in a cost-effective manner, our offerings may become less marketable, less competitive, or obsolete,and our business, financial condition and results of operations may be negatively impacted.

In addition, a significantpercentage of our customers may choose to integrate our products and services with certain capabilities of third-party hardware and softwareproviders using APIs. The functionality and popularity of our products and services may depend, in part, on their ability to integratewith a wide variety of third-party applications and software. Third-party providers of applications may change the features of theirapplications and software, restrict our access to their applications and software or alter the terms governing use of their applicationsand access to those applications and software in an adverse manner. Such changes could functionally limit or eliminate our ability touse these third-party applications and software in conjunction with our offerings, which could negatively impact customer demand, ourcompetitive position and adversely affect our business.

Wemay not be able to compete successfully against current and future competitors, some of whom have greater financial, technical, and otherresources than we do. If we do not compete successfully, our business, financial condition and results of operations could be harmed.

While there are several companiesoffering video compression solutions such as MainConcept, Ateme and Ittiam and open source (x264/x265), we believe there is currentlyno direct competitor with our content-adaptive video compression solutions. There are companies that offer software solutions for videooptimization such as Harmonic and Elemental, and other companies offering storage optimization (but not involving video technologies)such as EMC and Seagate. In addition, for our quality measure, some of our current competitors include SSIMWave (SSIMPlus), Apple (AVQT),Google (YouVQ) and open source (VMAF). We operate in a highly specialized area that is evolving very quickly with rapid developments.In the future, competitors could develop products or solutions that compete with our video compression solutions. For example, the publiccloud platforms such as AWS, Azure, and GCP could in the future develop their own video optimization hardware accelerated solutions.

Webelieve the following competitive attributes are necessary for our solutions to successfully compete in the video compression market:

Webelieve that we compare favorably on the basis of the factors listed above. However, many of our competitors have substantially greaterfinancial, technical, and marketing resources; relationships with large vendor partners; larger global presence; larger customer bases;longer operating histories; greater brand recognition; and more established relationships in the industry than we do. Furthermore, newentrants not currently considered to be competitors may enter the market through acquisitions, partnerships, or strategic relationships

Additionally,we compete with home-grown, start-up, and open source technologies across the categories described above. With the introduction of newtechnologies and the entrance of new market participants, competition has intensified, and we expect it to continue to intensify in thefuture. Established companies are also developing their own video encoding and optimization platforms, products and solutions withintheir own core product lines, and may continue to do so in the future. Established companies may also acquire or establish product integration,distribution or other cooperative relationships with our current competitors. New competitors or alliances among competitors may emergefrom time to time and rapidly acquire significant market share due to various factors such as their greater brand name recognition, largerexisting user or customer base, consumer preferences for their offerings, a larger or more effective sales organization and greater financial,technical, marketing and other resources and experience. Furthermore, with the recent increase in large merger and acquisition transactionsin the technology industry, particularly transactions involving cloud-based technologies, there is a greater likelihood that we willcompete with other larger technology companies in the future. Companies resulting from these potential consolidations may create morecompelling product offerings and be able to offer more attractive pricing options, making it more difficult for us to compete effectively.

Manyof our competitors have, and some of our potential competitors may have, greater financial, technical, and other resources, longer operatinghistories, greater brand recognition, larger sales forces and marketing budgets, broader distribution networks, more diverse productand services offerings, larger and more mature intellectual property portfolios, more established relationships in the industry and withcustomers, lower cost structures and greater customer experience resources. These competitors may be able to respond more quickly andeffectively than we can to new or changing opportunities, technologies, standards and customer requirements. They may be able to leveragethese resources to gain business in a manner that discourages customers from purchasing our offerings, including through selling at zeroor negative margins, product bundling, forced product migrations, auto-installation of applications, or closed technology platforms.Potential customers may also prefer to purchase from companies with which they have an existing relationship rather than a new supplier,regardless of product performance or features. Furthermore, we expect that our industry will continue to attract new companies, includingsmaller emerging companies, which could introduce new offerings. We may also expand into new markets and encounter additional competitorsin such markets. These competitive pressures in the markets in which we operate, or our failure to compete effectively, may result inprice reductions, fewer customers, reduced revenue, gross profit and gross margins, increased net losses and loss of market share. Anyfailure to effectively address these factors could significantly and adversely affect our business, financial condition and results ofoperations.

Ifwe are unable to increase sales of our products and services to new customers, expand the offerings to which our existing customers subscribe,or expand the value of our existing sales, our future revenue and results of operations will be adversely affected.

Oursuccess depends on our ability to sell our products and services to new customers and to expand within our existing customer base byselling products and services for additional offerings to our existing customers and expanding the value of existing customers’subscriptions, and to do so in a cost-effective manner. Our ability to sell new products and services and expand the value of existingsales depends on a number of factors, including the prices of our offerings and their functionality, the prices of products offered byour competitors, and the budgets of our customers. We also plan to offer an initial trial period for certain of our offerings. To theextent prospective customers utilize this trial period without becoming, or lead others not to become, paying customers, our expensesmay increase as a result of associated hosting costs, and our ability to grow our business may be adversely affected. There is no guaranteethat such events will translate into new customers.

Inaddition, a significant aspect of our sales and marketing focus is to expand deployments within existing customers. The rate at whichour customers purchase additional offerings and expand the value of their existing offerings depends on a number of factors, including,among other things, customers’ level of satisfaction with our offerings and customer support, the nature and size of the deployments,the desire to address additional use cases, and the availability of, and customers’ awareness of and perceived need for, additionalfeatures, integrations, capabilities or other enhancements, as well as general economic conditions. If our customers do not recognizethe potential of our offerings, our business would be materially and adversely affected.

Ifour existing customers do not renew their order of products or subscription to services, or if they renew on terms that are less economicallybeneficial to us, it could have an adverse effect on our business, financial condition and results of operations.

Weexpect to derive a significant portion of our revenue from renewals of subscriptions. Customers have no contractual obligation to renewtheir subscriptions after the completion of their subscription term. Subscriptions for most of our offerings are offered on either anannual or multi-year basis. Our subscriptions may also generally include committed usage amounts. As a result, we cannot provide assurancethat customers will renew their subscriptions for a similar contract period or with the same or greater product depth, number of users,functionality or other terms that are equally or more economically beneficial to us, if they renew at all.

Ourcustomers’ renewals may decline or fluctuate as a result of a number of factors, including their satisfaction with our productsand our customer support, the frequency and severity of product outages, our product uptime or latency, the pricing of our offering inrelation to competing offerings, additional new features, integrations, capabilities or other enhancements that we offer, updates toour products as a result of updates by technology partners, and customers or users no longer having a need for our offerings . Renewalrates may also be impacted by general economic conditions or other factors that reduce customers’ spending levels. If our customersdo not renew their subscriptions or renew on terms less economically favorable to us, our revenue may decline or grow less quickly thananticipated, which would adversely affect our business, financial condition and results of operations.

Ifwe fail to meet contractual commitments under our customer agreements, we could be subject to contractual penalties, litigation and otherliabilities, and could experience an increase in contract terminations or decrease in contract renewals in future periods, which wouldlower our revenue, increase our costs and otherwise adversely affect our business, financial condition and results of operations.

Ourcustomer agreements may contain service-level commitments. If we are unable to meet the stated service-level commitments, including failureto meet the uptime and response time requirements under our customer agreements, we may be contractually obligated to provide these customerswith service credits, or customers could elect to terminate and receive refunds for prepaid amounts related to unused subscriptions,either of which could significantly affect our revenue in the periods in which the failure occurs and the credits are applied or refundspaid out. In addition, customer terminations or any reduction in renewals resulting from service-level failures could significantly affectboth our current and future revenue. We cannot guarantee that we will not experience a material decrease in customer renewals in futureperiods as additional customers cycle through their subscription terms.

Furthermore,any service-level failures or failure to meet committed delivery schedules and milestones could also create negative publicity and damageour reputation, which may discourage prospective customers from adopting our offerings. In addition, if we modify the terms of our contractualcommitments in future customer agreements in a manner customers perceive to be unfavorable, demand for our offerings could be reduced.The occurrence of these or any of the events discussed above could have a significant adverse effect on our business, financial condition,results of operations and cash flow, as well as our ability to grow our business.

Werely on third parties, including third parties outside the United States, for some of our software development, quality assurance, operations,and customer support.

Wecurrently depend on various third parties for some of our software development efforts, quality assurance, operations, and customer supportservices. Specifically, through our subsidiary Beamr Imaging RU we outsource some of our software development and design, quality assurance,and operations activities to third-party contractors that have employees and consultants located in Russia. Our dependence on third-partycontractors creates a number of risks, in particular, the risk that we may not maintain development quality, control, or effective managementwith respect to these business operations. In addition, poor relations between the United States and Russia, and sanctions by the UnitedStates and the European Union, or the EU, against Russia could have an adverse impact on our third-party software development in Russia.We anticipate that we will continue to depend on these and other third-party relationships in order to grow our business for the foreseeablefuture. If we are unsuccessful in maintaining existing and, if needed, establishing new relationships with third parties, our abilityto efficiently operate existing services or develop new services and provide adequate customer support could be impaired, and, as a result,our competitive position or our results of operations could suffer.

Wedepend on our management team and other key employees, and the loss of one or more of these employees or an inability to attract andretain highly skilled employees could adversely affect our business.

Our future success depends, inpart, on our ability to continue to attract and retain highly skilled personnel. The loss of the services of any of our key personnel,the inability to attract or retain qualified personnel, or delays in hiring required personnel, particularly in engineering and sales,may seriously and adversely affect our business, financial condition and results of operations. Although we have entered into employmentor consulting agreements with our personnel, their employment is generally for no specific duration. We are also substantially dependenton the continued service of our existing IT personnel because of the complexity of our products.

Ourfuture performance also depends on the continued services and continuing contributions of our senior management team, which includesSharon Carmel, our founder and Chief Executive Officer, to execute on our business plan and to identify and pursue new opportunitiesand product innovations. The loss of services of our senior management team, particularly our Chief Executive Officer, could significantlydelay or prevent the achievement of our development and strategic objectives, which could adversely affect our business, financial conditionand results of operations.

Additionally,the industry in which we operate is generally characterized by significant competition for skilled personnel, as well as high employeeattrition. There is currently a high demand for experienced software industry personnel, particularly for engineering, research and development,sales and support positions, and we may not be successful in attracting, integrating and retaining qualified personnel to fulfill ourcurrent and future needs. This intense competition has resulted in increasing wages, especially in Israel, where our headquarters islocated and most of our research and development positions are located, and in California, where our sales offices are located, whichmay make it more difficult for us to attract and retain qualified personnel, as many of the companies against which we compete for personnelhave greater financial resources than we do. These competitors may also actively seek to hire our existing personnel away from us, evenif such employee has entered into a non-compete agreement. We may be unable to enforce these agreements under the laws of the jurisdictionsin which our employees work. For example, Israeli labor courts have required employers seeking to enforce non-compete undertakings ofa former employee to demonstrate that the competitive activities of the former employee will harm one of a limited number of materialinterests of the employer that have been recognized by the courts, such as the protection of a company’s confidential informationor other intellectual property, taking into account, among other things, the employee’s tenure, position, and the degree to whichthe non-compete undertaking limits the employee’s freedom of occupation. We may not be able to make such a demonstration. Also,to the extent we hire personnel from competitors, we may be subject to allegations that they have been improperly solicited or that theyhave divulged their former employers’ proprietary or other confidential information or incorporated such information into our products,which could include claims that such former employers therefore own or otherwise have rights to their inventions or other work productdeveloped while employed by us.

Inaddition, in making employment decisions, particularly in the internet and high-technology industries, job candidates often considerthe value of the equity they are to receive in connection with their employment. Employees may be more likely to leave us if the sharesthey own or the shares underlying their equity incentive awards have significantly appreciated or significantly reduced in value. Manyof our employees may receive significant proceeds from sales of our equity in the public markets after this offering, which may reducetheir motivation to continue to work for us and could lead to employee attrition. If we fail to attract new personnel, or fail to retainand motivate our current personnel, our business, financial condition, results of operations and growth prospects could be adverselyaffected.

Ifwe are not able to maintain and enhance awareness of our brand, especially among companies who store large amounts of video files, ourbusiness, financial condition and results of operations may be adversely affected.

Webelieve that developing and maintaining widespread awareness of our brand, especially with companies who store large amounts of videofiles, is critical to achieving widespread acceptance of our products and services and attracting new users and customers. Brand promotionactivities may not generate user or customer awareness or increase revenue, and even if they do, any increase in revenue may not offsetthe expenses we incur in building our brand. If we fail to successfully promote and maintain our brand, we may fail to attract and retainusers and customers necessary to realize a sufficient return on our brand-building efforts, and may fail to achieve the widespread brandawareness that is critical for broad customer adoption of our offerings.

Ourcorporate culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity,and entrepreneurial spirit we have worked to foster, which could adversely affect our business.

Webelieve that our corporate culture, which is based on openness, flexibility, and collaboration, has been and will continue to be a keycontributor to our success. We expect to hire aggressively as we expand. If we do not continue to maintain our corporate culture as wegrow, we may be unable to foster the innovation, creativity, and entrepreneurial spirit we believe we need to support our growth. Thegrowth and expansion of our business and our transition from a private company to a public company may result in changes to our corporateculture, which could adversely affect our business, including our ability to recruit and retain qualified personnel.

Ourfailure to offer high quality customer support would have an adverse effect on our business, reputation and results of operations.

Ourcustomers depend on our customer success managers to resolve issues and realize the full benefits relating to our products and services.If we do not succeed in helping our customers quickly resolve post-deployment issues or provide effective ongoing support and education,our ability to renew contracts with, or establish contracts for additional offerings to, existing customers, or expand the value of existingcustomers’ contracts, would be adversely affected and our reputation with potential customers could be damaged. In addition, mostof our existing customers are large enterprises with complex information technology environments and, as a result, require significantlevels of support. If we fail to meet the requirements of these customers, it may be more difficult to grow sales or maintain our relationshipswith them.

Additionally,while growing our need for customer success managers is a key component of our growth strategy, it can take several months to recruit,hire and train qualified engineering-level customer support employees, and we may not be able to hire such resources fast enough to keepup with demand during the relevant time in the future. To the extent that we are unsuccessful in hiring, training and retaining adequatesupport resources, our ability to provide adequate and timely support to our customers, and our customers’ satisfaction with ourproducts and services, will be adversely affected. Any failure by us to provide and maintain high-quality customer support services wouldhave an adverse effect on our business, reputation and results of operations.

Thesales prices of our offerings may change, which may reduce our revenue and gross profit and adversely affect our financial results.

Thesales prices for our offerings may be subject to change for a variety of reasons, including competitive pricing pressures, discounts,anticipation of the introduction of new products, promotional programs, general economic conditions, or our marketing, user acquisitionand technology costs and, as a result, we anticipate that we will need to change our pricing model from time to time. In the past, wehave sometimes adjusted our prices for individual customers in certain situations, and expect to continue to do so in the future. Moreover,demand for our offerings is price-sensitive. Competition continues to increase in the market segments in which we operate, and we expectcompetition to further increase in the future, thereby leading to increased pricing pressures. Larger competitors with more diverse offeringsmay reduce the price of offerings that compete with ours or may bundle them with other offerings and provide for free. Similarly, certaincompetitors may use marketing strategies that enable them to acquire customers more rapidly or at a lower cost than us, or both, andwe may be unable to attract new customers or grow and retain our customer base based on our historical pricing. Additionally, currencyfluctuations in certain countries and regions may negatively impact actual prices that customers and resellers are willing to pay inthose countries and regions. As we develop and introduce new offerings, as well as features, integrations, capabilities and other enhancements,we may need to, or choose to, revise our pricing. There can be no assurance that we will not be forced to engage in price-cutting initiativesor to increase our marketing and other expenses to attract customers in response to competitive or other pressures. Any decrease in thesales prices for our products, without a corresponding decrease in costs, increase in volume or increase in revenue from our other offerings,would adversely affect our revenue and gross profit. We cannot assure you that we will be able to maintain our prices and gross profitsat levels that will allow us to achieve and maintain profitability.

Ourinternational operations and expansion expose us to risk.

Our products and services address the needs of customers and end usersaround the world, and we see continued international expansion as a significant opportunity. For the years ended December 31, 2021 and2020, we generated approximately 21% and 19% of our revenue, respectively, from customers outside the United States. Our customers, endusers, employees and partners are located in a number of different jurisdictions worldwide, and we expect our operations will become increasinglyglobal as our business continues to grow. Our current international operations involve, and future initiatives will also involve, a varietyof risks, including:

Ifwe are unable to address these difficulties and challenges or other problems encountered in connection with our international operationsand expansion, we might incur unanticipated liabilities or we might otherwise suffer harm to our business generally.

Currencyexchange rate fluctuations affect our results of operations, as reported in our financial statements.

Wereport our financial results in U.S. dollars. We collect our revenue primarily in U.S. dollars and NIS. A portion of the cost of revenue,research and development, selling and marketing and general and administrative expenses of our Israeli and Russian operations are incurredin NIS or in Russian Ruble, or RUB. As a result, we are exposed to exchange rate risks that may materially and adversely affect our financialresults. If the NIS or RUB appreciates against the U.S. dollar, or if the value of the NIS or RUB decline against the U.S. dollar, ata time when the rate of inflation in the cost of Israeli and Russian goods and services exceed the rate of decline in the relative valueof the NIS and RUB, then the U.S. dollar-denominated cost of our operations in Israel and Russia would increase and our results of operationscould be materially and adversely affected. We cannot predict any future trends in the rate of inflation in Israel and Russia or therate of depreciation (if any) of the NIS and RUB against the U.S. dollar, and our ability to hedge our exposure to currency exchangerate fluctuations may be limited.

In addition, we use productsand services and offer our products and services through cloud services, which may publish different prices in different locations. Thesedifferences in prices and locations may impact our costs and margins, and value we bring to our customers.

RisksRelated to Information Technology, Intellectual Property and Data Security and Privacy

Areal or perceived bug, defect, security vulnerability, error, or other performance failure involving our products and services couldcause us to lose revenue, damage our reputation, and expose us to liability.

Ourproducts and services are inherently complex and, despite extensive testing and quality control, have in the past and may in the futurecontain bugs, defects, security vulnerabilities, errors, or other performance failures, especially when first introduced, or otherwisenot perform as intended. Any such bug, defect, security vulnerability, error, or other performance failure could cause damage to ourreputation, loss of customers or revenue, order cancellations, service terminations, and lack of market acceptance of our offerings.As the use of our offerings among new and existing customers expands, particularly to more sensitive, secure, or mission critical uses,we may be subject to increased scrutiny, potential reputational risk, or potential liability should our offerings fail to perform ascontemplated in such deployments. We have in the past and may in the future need to issue corrective releases of our software to fixthese defects, errors or performance failures, which could require us to allocate significant research and development and customer supportresources to address these problems. Despite our efforts, such corrections may take longer to develop and release than we or our customersanticipate and expect.

Anylimitation of liability provision contained in an agreement with a customer, user, third-party vendor, service provider, or partner maynot be enforceable, adequate or effective as a result of existing or future applicable law or judicial decisions, and may not functionto limit our liability arising from regulatory enforcement or other specific circumstances. The sale and support of our offerings entailthe risk of liability claims, which could be substantial in light of the use of our offerings in enterprise-wide environments. In addition,our insurance against any such liability may not be adequate to cover a potential claim, and may be subject to exclusions, or subjectus to the risk that the insurer will deny coverage as to any future claim or exclude from our coverage such claims in policy renewals,increase our fees or deductibles or impose co-insurance requirements. Any such bugs, defects, security vulnerabilities, errors, or otherperformance failures in our products and services, including as a result of denial of claims by our insurer or the successful assertionof claims by others against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, includingincreases or the imposition of large deductible or co-insurance requirements, could have a material adverse effect on our business, includingour financial condition, results of operations and reputation.

Ifwe or our third-party service providers experience a security breach, data loss or other compromise, including if unauthorized partiesobtain access to our customers’ data, our reputation may be harmed, demand for our products and services may be reduced, and wemay incur significant liabilities.

Our business products andservices involve the collection, storage, processing, transmission and other use of data, including certain confidential, sensitive, andpersonal information. Any security breach, data loss, or other compromise, including those resulting from a cybersecurity attack, phishingattack, or any unauthorized access, unauthorized usage, virus or similar breach or disruption could result in the loss or destructionof or unauthorized access to, or use, alteration, disclosure, or acquisition of, data, damage to our reputation, litigation, regulatoryinvestigations, or other liabilities. These attacks may come from individual hackers, criminal groups, and state-sponsored organizations.If our security measures are breached as a result of third-party action, employee error or negligence, a defect or bug in our offeringsor those of our third-party service providers, malfeasance or otherwise and, as a result, someone obtains unauthorized access to any data,including our confidential, sensitive, or personal information or the confidential, sensitive, or personal information of our customers,or other persons, or any of these types of information is lost, destroyed, or used, altered, disclosed, or acquired without authorization,our reputation may be damaged, our business may suffer, and we could incur significant liability, including under applicable data privacyand security laws and regulations. Even the perception of inadequate security may damage our reputation and negatively impact our abilityto win new customers and retain and receive timely payments from existing customers. Further, we could be required to expend significantcapital and other resources to protect against and address any data security incident or breach, which may not be covered or fully coveredby our insurance and which may involve payments for investigations, forensic analyses, regulatory compliance, breach notification, legaladvice, public relations advice, system repair or replacement, or other services. In addition, we do not maintain cybersecurity insuranceand therefore have no insurance coverage in the event of any breach or disruption of our or our customers’ or service providers’systems, including any unauthorized access or loss of any personal data that we may collect, store or otherwise process. To the extentthat any disruption or security breach were to result in a loss of, or damage to, our data or systems, or inappropriate disclosure ofconfidential or proprietary information, we could incur liability, our competitive position could be harmed and our business, operations,and financial results could be adversely affected.

Inaddition, part of the process of our solution is replacing our customer’s native image and video files with optimized, compressedfiles. This process and replacement of files can result in data loss. Additionally, we do not directly control content that our customersstore or use in our products. If our customers use our products for the transmission or storage of personal, confidential, sensitive,or other information about individuals and our security measures are or are believed to have been breached as a result of third-partyaction, employee error, malfeasance or otherwise, our reputation could be damaged, our business may suffer, and we could incur significantliability.

Weengage third-party vendors and service providers to store and otherwise process some of our and our customers’ data, includingpersonal, confidential, sensitive, and other information about individuals. Our vendors and service providers may also be the targetsof cyberattacks, malicious software, phishing schemes, and fraud. Our ability to monitor our vendors and service providers’ datasecurity is limited, and, in any event, third parties may be able to circumvent those security measures, resulting in the unauthorizedaccess to, misuse, acquisition, disclosure, loss, alteration, or destruction of our and our customers’ data, including confidential,sensitive, and other information about individuals.

Techniquesused to sabotage or obtain unauthorized access to systems or networks are constantly evolving and, in some instances, are not identifieduntil after they have been launched against a target. We and our service providers may be unable to anticipate these techniques, reactin a timely manner, or implement adequate preventative and mitigating measures. If we are unable to efficiently and effectively maintainand upgrade our system safeguards, we may incur unexpected costs and certain of our systems may become more vulnerable to unauthorizedaccess or disruption. Any of the foregoing could have a material adverse effect on our business, including our financial condition, resultsof operations and reputation.

Insufficientinvestment in, or interruptions or performance problems associated with, our technology and infrastructure, including in connection withour Beamr HW-Accelerated Content Adaptive Encoding solution is to be deployed on a public cloud infrastructure, and our reliance on technologiesfrom third parties, may adversely affect our business operations and financial results.

Customersof our offerings will need to be able to access our platform at any time, without interruption or degradation of performance. Our BeamrHW-Accelerated Content Adaptive Encoding solution is to be deployed on a public cloud infrastructure with the goal of providing improvedstability, reliability, scalability and elasticity for our offerings. We may discover deficiencies in our design, implementation or maintenanceof our Beamr HW-Accelerated Content Adaptive Encoding solution that could adversely affect our business, financial condition and resultsof operations. Furthermore, we cannot yet know the ultimate impact of this or any similar future event on our customer relationships.

Inaddition, third-party cloud providers run their own platforms that we access, and we are, therefore, vulnerable to their service interruptionsand any changes in their product offerings. Any limitation on the capacity of our third-party hosting services could impede our abilityto onboard new customers or expand the usage of our existing customers, which could adversely affect our business, financial conditionand results of operations. In addition, any incident affecting our third-party hosting services’ infrastructure that may be causedby cyber-attacks, computer viruses, malware, systems failures or other technical malfunctions, natural disasters, fire, flood, severestorm, earthquake, power loss, telecommunications failures, terrorist or other attacks, protests or riots, and other similar events beyondour control could negatively affect our cloud-based offerings. It is also possible that our customers and regulators would seek to holdus accountable for any breach of security affecting a third-party cloud provider’s infrastructure and we may incur significantliability in investigating such an incident and responding to any claims, investigations, or proceedings made or initiated by those customers,regulators, and other third parties. We may not be able to recover a material portion of such liabilities from any of our third-partycloud providers. It may also become increasingly difficult to maintain and improve our performance and cost, especially during peak usagetimes, as our processing cost might be higher during peak hours. Moreover, our insurance may not be adequate to cover such liabilityand may be subject to exclusions. Any of the above circumstances or events may adversely affect our business, financial condition andresults of operations.

Inthe event that our service agreements with our third-party hosting services are terminated, or there is a lapse of service, eliminationof services or features that we utilize, interruption of internet service provider connectivity or damage to our providers’ facilities,we could experience interruptions in access to our platform as well as significant delays and additional expense in arranging or creatingnew facilities and services and/or re-architecting our cloud-based offerings for deployment on a different cloud infrastructure serviceprovider, which could adversely affect our business, financial condition and results of operations. Upon the termination or expirationof such service agreements, we cannot guarantee that adequate third-party hosting services will be available to us on commercially acceptableterms or within adequate timelines from the same or different hosting services providers or at all.

Wemay also rely on cloud technologies from third parties in order to operate critical functions of our business, including financial managementservices, relationship management services, and lead generation management services. If these services become unavailable due to extendedoutages or interruptions or because they are no longer available on commercially reasonable terms or prices, our expenses could increase,our ability to manage our finances could be interrupted, our processes for managing sales of our products and supporting our customerscould be impaired, and our ability to generate and manage sales leads could be weakened until equivalent services are identified, obtained,and implemented. Even if such services are available, we may not be able to identify, obtain and implement such services in time to avoiddisruption to our business, and such services may only be available on a more costly basis or otherwise less favorable terms. Any ofthe foregoing could have a material adverse effect on our business, including our financial condition, results of operations and reputation.

Failureto protect our proprietary technology, or to obtain, maintain, protect and enforce sufficiently broad intellectual property rights therein,could substantially harm our business, financial condition and results of operations.

Oursuccess depends to a significant degree on our ability to protect our proprietary technology, methodologies, know-how, and brand. Werely on a combination of trademarks, copyrights, patents, trade secret laws, contractual restrictions, and other intellectual propertylaws and confidentiality procedures to establish and protect our proprietary rights. However, our competitors or other third partiescould reverse engineering our code and use it to create software and service offerings that compete with ours. While software can, insome cases, be protected under copyright law, in order to bring a copyright infringement lawsuit in the United States, the copyrightmust first be registered. We have chosen not to register any copyrights, and rely on trade secret protection in addition to unregisteredcopyrights to protect our proprietary software. Accordingly, the remedies and damages available to us for unauthorized use of our softwaremay be limited.

Further,the steps we take to protect our intellectual property and proprietary rights may be inadequate. We may not be able to register our intellectualproperty rights in all jurisdictions where we conduct or anticipate conducting business, and may experience conflicts with third partieswho contest our applications to register our intellectual property. Even if registered or issued, we cannot guarantee that our trademarks,patents, copyrights or other intellectual property or proprietary rights will be of sufficient scope or strength to provide us with anymeaningful protection or commercial advantage. We will not be able to protect our intellectual property and proprietary rights if weare unable to enforce our rights or if we do not detect infringement, misappropriation, dilution or other unauthorized use or violationthereof. If we fail to defend and protect our intellectual property rights adequately, our competitors and other third parties may gainaccess to our proprietary technology, information and know-how, reverse-engineer our software, and infringe upon or dilute the valueof our brand, and our business may be harmed. In addition, obtaining, maintaining, defending, and enforcing our intellectual propertyrights might entail significant expense. Any patents, trademarks, copyrights, or other intellectual property rights that we have or mayobtain may be challenged by others or invalidated through administrative process or litigation. Even if we continue to seek patent protectionin the future, we may be unable to obtain further patent protection for our technology. In addition, any patents issued in the futuremay not provide us with competitive advantages, may be designed around by our competitors, or may be successfully challenged by thirdparties. Furthermore, legal standards relating to the validity, enforceability, and scope of protection of intellectual property rightsare uncertain.

Wemay be unable to prevent third parties from acquiring domain names or trademarks that are similar to, infringe upon, dilute or diminishthe value of our trademarks and other proprietary rights. Additionally, our trademarks may be opposed, otherwise challenged or declaredinvalid, unenforceable or generic, or determined to be infringing on or dilutive of other marks. We may not be able to protect our rightsin these trademarks, which we need in order to build name recognition with customers. If third parties succeed in registering or developingcommon law rights in such trademarks and we are not successful in challenging such third-party rights, or if our trademark rights aresuccessfully challenged, we may not be able to use our trademarks to commercialize our products in certain relevant jurisdictions.

Despiteour precautions, it may be possible for unauthorized third parties to copy our products and use information that we regard as proprietaryto create offerings that compete with ours. Effective patent, trademark, copyright, and trade secret protection may not be availableto us in every country in which our products are available. The laws of some countries may not be as protective of intellectual propertyrights as those in the United States, and mechanisms for enforcement of intellectual property rights may be inadequate. As we continueto expand our international activities, our exposure to unauthorized copying and use of our products and proprietary information willlikely increase. Accordingly, despite our efforts, we may be unable to prevent third parties from infringing upon, diluting, misappropriatingor otherwise violating our intellectual property rights.

Wehave devoted substantial resources to the development of our technology, business operations and business plans. We attempt to protectour intellectual property and proprietary information, including trade secrets, by implementing administrative, technical and physicalpractices, including source code access controls, to secure our proprietary information. We also seek to enter into confidentiality,non-compete, proprietary, and inventions assignment agreements with our employees, consultants and contractors, and enter into confidentialityagreements with other parties, such as licensees and customers. However, such agreements may not be self-executing, and there can beno guarantee that all applicable parties have executed such agreements. No assurance can be given that these practices or agreementswill be effective in controlling access to and distribution of our proprietary information, or in providing adequate remedies in theevent of unauthorized access or distribution, especially in certain states and countries, including Israel and Russia, that are lesswilling to enforce such agreements or otherwise provide protection for trade secrets. Further, these agreements may not prevent our competitorsfrom independently developing technologies that are substantially equivalent or superior to our products, and in such cases we wouldnot be able to assert trade secret rights against such parties. We also employ individuals who were previously employed at other companiesin our field, and our efforts to ensure that such individuals do not use the proprietary information or know-how of others in their workfor us may not prevent others from claiming that we or our employees or independent contractors have used or disclosed intellectual property,including trade secrets or other proprietary information, of a former employer or other third parties. Litigation may be necessary todefend against any such claims. If we are unsuccessful in defending against any such claims, we may be liable for damages or preventedfrom using certain intellectual property, which in turn could materially adversely affect our business, financial condition or resultsof operations; even if we are successful in defending against such claims, litigation could result in substantial costs and distractmanagement and other employees.

Inorder to protect our intellectual property and proprietary rights and to monitor for and take action against any infringement, misappropriationor other violations thereof, we may be required to spend significant resources. Litigation may be necessary to enforce and protect ourtrade secrets and other intellectual property and proprietary rights, which could be costly, time-consuming, and distracting to management,and could result in the impairment or loss of portions of our intellectual property. Further, our efforts to enforce our intellectualproperty and proprietary rights may be met with defenses, counterclaims, and countersuits attacking the ownership, scope, validity andenforceability of such rights. Our inability to protect our proprietary technology or our brand against unauthorized copying or use,as well as any costly litigation or diversion of our management’s attention and resources, could delay further sales or the implementationof our offerings or impair their functionality, delay introductions of new offerings, result in our substituting inferior or more costlytechnologies into our offerings, or injure our reputation. Any of the foregoing could materially and adversely affect our business, financialcondition, results of operations and growth prospects.

Wecould incur substantial costs and otherwise suffer harm as a result of any claim of infringement, misappropriation or other violationof another party’s intellectual property or proprietary rights.

Inrecent years, there has been significant litigation involving patents and other intellectual property and proprietary rights in the softwareindustry. Our competitors and others may now and in the future have significantly larger and more mature patent portfolios than we have.Even a large patent portfolio may not serve as a deterrent to litigation by certain third parties, some of whose sole or primary businessis to assert patent claims and some of whom have sent letters to and/or filed suit alleging infringement against us or some of our customers.We could incur substantial costs in prosecuting or defending any intellectual property litigation. If we sue to enforce our rights orare sued by a third party claiming that our offerings infringe, misappropriate or violate their rights, the litigation could be expensiveand could divert management attention and resources away from our core business operations. In addition, there could be public announcementsof the results of hearings, motions or other interim proceedings or developments, and if securities analysts or investors perceive theseresults to be negative, it could have a material adverse effect on the price of our ordinary shares.

Anyintellectual property litigation to which we might become a party, or for which we are required to provide indemnification, may requireus to do one or more of the following:

Ifwe are required to make substantial payments or undertake or suffer any of the other actions and consequences noted above as a resultof any intellectual property infringement, misappropriation or violation claims against us or any obligation to indemnify our customersfor such claims, such payments, actions and consequences could materially and adversely affect our business, financial condition, resultsof operations and growth prospects.

Wecould incur substantial costs and otherwise suffer harm as a result of patent royalty claims, in particular patents related to the implementationof image and video standards

Ourproducts and services decode and encode media files which are compressed using compression methods that are standardized by internationalstandard bodies such as ISO and ITU. These standard compression methods include, for example, JPEG and HEIC for images, and H.264, HEVC,EVC and VVC for video. Some of the algorithms included in these image and video compression standards are covered by patents which arelicensed by patent pools, such as MPEG-LA, Access Advance and Velos Media, and by independent patent holders. Depending on the use caseand application of these image and video standards in our products and services, we may be required to pay patent royalties to such patentpools and independent patent holders, which might affect our margins and our profitability. Historically, almost all of our productsand services have not required such patent royalty payment however as we expand our SaaS offering, we expect to pay such patent royaltiesin the future. In addition, in order to avoid paying patent royalties, some of our customers may opt to use open source compression standardssuch as VP9 or AV1, which in turn would require us to support such standards in our products and services, causing additional productdevelopment costs due to this fragmentation.

Indemnityprovisions in various agreements potentially expose us to substantial liability for intellectual property infringement, misappropriation,violation, and other losses.

Ouragreements with customers and other third parties may include indemnification provisions under which we agree to indemnify them for lossessuffered or incurred as a result of claims of intellectual property infringement, misappropriation or violation, damages caused by usto property or persons, or other liabilities relating to or arising from our software, services or other contractual obligations. Largeindemnity payments could adversely affect our business, financial condition and results of operations. Although we normally seek to contractuallylimit our liability with respect to such indemnity obligations, we do not and may not in the future have a cap on our liability in certainagreements, which could result in substantial liability. Substantial indemnity payments under such agreements could harm our business,financial condition and results of operations. Any dispute with a customer or other third party with respect to such obligations couldhave adverse effects on our relationship with that customer, other existing customers and new customers, and other parties, and couldharm our reputation, business, financial condition and results of operations.

Werely on software and services licensed from other parties. The loss of software or services from third parties could increase our costsand limit the features available in our products and services.

Componentsof our offerings include various types of software and services licensed from unaffiliated parties. If any of the software or serviceswe license from others or functional equivalents thereof were either no longer available to us or no longer offered on commercially reasonableterms, we would be required to either redesign the offerings that include such software or services to function with software or servicesavailable from other parties or develop these components ourselves, which we may not be able to do without incurring increased costs,experiencing delays in our product launches and the release of new offerings, or at all. Furthermore, we might be forced to temporarilylimit the features available in our current or future products and solutions. If we fail to maintain or renegotiate any of these softwareor service licenses, we could face significant delays and diversion of resources in attempting to license and integrate functional equivalents.We and our customers may also be subject to suits by parties claiming infringement, misappropriation or other violation of third-partyintellectual property or proprietary rights due to the reliance by our solutions on such third-party software and services, such third-partysoftware and services may contain bugs or other errors that cause our own offerings to malfunction, and our agreements with such thirdparties may not contain any, or adequate, warranties, indemnities or other protective provisions on our behalf. Any of the foregoingcould materially and adversely affect our business, financial condition and results of operations.

RisksRelated to Other Legal, Regulatory and Tax Matters

Changesin laws and regulations related to the internet, changes in the internet infrastructure itself, or increases in the cost of internetconnectivity and network access may diminish the demand for our offerings and could harm our business.

Thefuture success of our business depends upon the continued use of the internet as a primary medium for commerce, communication, and businessapplications. Federal, state, or foreign governmental bodies or agencies have in the past adopted, and may in the future adopt, lawsor regulations affecting the use of the internet as a commercial medium. The adoption of any laws or regulations that could reduce thegrowth, popularity, or use of the internet, including laws or practices limiting internet neutrality, could decrease the demand for ourofferings, increase our cost of doing business, and adversely affect our results of operations. Changes in these laws or regulationscould require us to modify our offerings, or certain aspects of our offerings, in order to comply with these changes. In addition, governmentagencies or private organizations have imposed and may impose additional taxes, fees, or other charges for accessing the internet orcommerce conducted via the internet. These laws or charges could limit the growth of internet-related commerce or communications generallyor result in reductions in the demand for internet-based products such as ours. In addition, the use of the internet as a business toolcould be harmed due to delays in the development or adoption of new standards and protocols to handle increased demands of internet activity,security, reliability, cost, ease-of-use, accessibility, and quality of service. Further, our platform depends on the quality of ourcustomers’ and end users’ access to the internet.

OnJune 11, 2018, the repeal of the “net neutrality” rules of the Federal Communications Commission, or the FCC, took effectand returned to a “light-touch” regulatory framework. The prior rules were designed to ensure that all online content istreated the same by internet service providers and other companies that provide broadband services. Additionally, on September 30, 2018,California enacted the California Internet Consumer Protection and Net Neutrality Act of 2018, making California the fourth state toenact a state-level net neutrality law since the FCC repealed its nationwide regulations, mandating that all broadband services in Californiamust be provided in accordance with state net neutrality requirements. The U.S. Department of Justice has sued to block the law goinginto effect, and California has agreed to delay enforcement until the resolution of the FCC’s repeal of the federal rules. A numberof other states are considering legislation or executive actions that would regulate the conduct of broadband providers. We cannot predictwhether the FCC order or state initiatives will be modified, overturned, or vacated by legal action of the court, federal legislationor the FCC. With the repeal of net neutrality rules in effect, we could incur greater operating expenses, which could harm our resultsof operations.

Asthe internet continues to experience growth in the number of users, frequency of use, and amount of data transmitted, the internet infrastructurethat we and our customers and end users rely on may be unable to support the demands placed upon it. The failure of the internet infrastructurethat we or our customers and end users rely on, even for a short period of time, could adversely affect our business, financial conditionand results of operations. In addition, the performance of the internet and its acceptance as a business tool has been harmed by “viruses,”“worms” and similar malicious programs and the internet has experienced a variety of outages and other delays as a resultof damage to portions of its infrastructure. If the use of the internet is adversely affected by these issues, demand for our offeringscould decline.

Internetaccess is frequently provided by companies that have significant market power and the ability to take actions that degrade, disrupt,or increase the cost of user access to our offerings. As demand for online media increases, there can be no assurance that internet andnetwork service providers will continue to price their network access services on reasonable terms. The distribution of online mediarequires delivery of digital content files and providers of network access and distribution may change their business models and increasetheir prices significantly, which could slow the widespread adoption of such services. We could incur greater operating expenses andour customer acquisition and retention could be negatively impacted if network operators:

Inorder for our services to be successful, there must be a reasonable price model in place to allow for the continuous distribution ofdigital media files. We have limited or no control over the extent to which any of these circumstances may occur, and if network accessor distribution prices rise, our business, financial condition and results of operations would likely be adversely affected.

Failureto comply with anti-bribery, anti-corruption, anti-money laundering laws, and similar laws, could subject us to penalties and other adverseconsequences.

Weare subject to the U.S. Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the U.S. domestic bribery statute contained in18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act, Chapter 9 (sub-chapter 5) of the Israeli Criminal Law, 5737-1977, theIsraeli Prohibition on Money Laundering Law, 5760–2000 and other anti-bribery and anti-money laundering laws in countries outsideof the United States in which we conduct our activities, such as Russia. Anti-corruption and anti-bribery laws have been enforced aggressivelyin recent years and are interpreted broadly to generally prohibit companies, their employees, and their third-party intermediaries fromauthorizing, offering, or providing, directly or indirectly, improper payments or benefits to recipients in the public or private sector.

Wesometimes leverage third parties to sell our offerings and conduct our business abroad. We and our third-party intermediaries may havedirect or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities and may beheld liable for the corrupt or other illegal activities of these third-party business partners and intermediaries, our employees, representatives,contractors, partners, and agents, even if we do not explicitly authorize such activities. We cannot assure you that our employees andagents will not take actions in violation of applicable law, for which we may be ultimately held responsible. As we increase our internationalsales and business operations, our risks under these laws are likely to increase.

Anyactual or alleged violation of the FCPA or other applicable anti-bribery, anti-corruption or anti-money laundering laws could resultin whistleblower complaints, sanctions, settlements, prosecution, enforcement actions, fines, damages, adverse media coverage, investigations,loss of export privileges, severe criminal or civil sanctions, or suspension or debarment from U.S. government contracts, any of whichwould adversely affect our reputation, as well as our business, financial condition, results of operations and growth prospects. Respondingto any investigation or action would likely result in a materially significant diversion of management’s attention and resourcesand significant defense costs and other professional fees. In addition, the U.S. government may seek to hold us liable for successorliability for FCPA violations committed by companies in which we invest or that we acquire.

Changesin financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our resultsof operations.

Theaccounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting StandardsBoard, or the FASB, the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. Recent actions andpublic comments from the FASB and the SEC have focused on the integrity of financial reporting and internal controls. In addition, manycompanies’ accounting policies are being subject to heightened scrutiny by regulators and the public. Further, the accounting rulesand regulations are continually changing in ways that could materially impact our financial statements.

Wecannot predict the impact of future changes to accounting principles or our accounting policies on our financial statements going forward,which could have a significant effect on our reported financial results and could affect the reporting of transactions completed beforethe announcement of the change. In addition, if we were to change our critical accounting estimates, including those related to the recognitionof subscription revenue and other revenue sources, our operating results could be significantly affected.

Changesin U.S. and foreign tax laws could have a material adverse effect on our business, cash flow, results of operations or financial conditions.

Weare subject to taxation in several countries, including the United States and Israel; changes in tax laws or challenges to our tax positionscould adversely affect our business, results of operations, and financial condition. As such, we are subject to tax laws, regulations,and policies of the U.S. federal, state, and local governments and of comparable taxing authorities in foreign jurisdictions. Changesin tax laws, including the U.S. federal tax legislation enacted in 2017, commonly referred to as the Tax Cuts and Jobs Act of 2017, aswell as other factors, could cause us to experience fluctuations in our tax obligations and effective tax rates in the future and otherwiseadversely affect our tax positions and/or our tax liabilities. There can be no assurance that our effective tax rates, tax payments,tax credits, or incentives will not be adversely affected by changes in tax laws in various jurisdictions.

TheBiden administration has proposed a number of changes to the U.S. tax system. The proposals include changes that would increase U.S.corporate tax rates, impose a corporate minimum book tax, and double the tax rate on and make other tax changes to “global intangiblelow-taxed income” earned by foreign subsidiaries. Many aspects of the proposals are unclear or undeveloped. We are unable to predictwhich, if any, U.S. tax reform proposals will be enacted into law, and what effects any enacted legislation might have on our liabilityfor U.S. tax.

Unanticipatedchanges in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could expose us to greaterthan anticipated tax liabilities.

Thetax laws applicable to our business, including the laws of the United States, Israel, Russia, and other jurisdictions, are subject tointerpretation, and certain jurisdictions may aggressively interpret their laws in an effort to raise additional tax revenue. The taxingauthorities of the jurisdictions in which we operate may challenge our methodologies for valuing developed technology or intercompanyarrangements or our revenue recognition policies, which could increase our worldwide effective tax rate and adversely affect our financialposition and results of operations. It is possible that tax authorities may disagree with certain positions we have taken, and any adverseoutcome of such a review or audit could have a negative effect on our business, financial condition and results of operations. Further,the determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment by management,and there are transactions where the ultimate tax determination is uncertain. Although we believe that our estimates are reasonable,the ultimate tax outcome may differ from the amounts recorded in our consolidated financial statements and may materially affect ourfinancial results in the period or periods for which such determination is made.

Ourcorporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated topay additional taxes, which would adversely affect our results of operations.

Basedon our current corporate structure, we are subject to taxation in several jurisdictions around the world with increasingly complex taxlaws, the application of which can be uncertain. The amount of taxes we pay in these jurisdictions could increase substantially as aresult of changes in the applicable tax principles, including increased tax rates, new tax laws or revised interpretations of existingtax laws and precedents. The authorities in these jurisdictions could review our tax returns or require us to file tax returns in jurisdictionsin which we are not currently filing, and could impose additional tax, interest, and penalties. These authorities could also claim thatvarious withholding requirements apply to us or our subsidiaries, assert that benefits of tax treaties are not available to us or oursubsidiaries, or challenge our methodologies for valuing developed technology or intercompany arrangements, including our transfer pricing.The relevant taxing authorities may determine that the manner in which we operate our business does not achieve the intended tax consequences.If such a disagreement were to occur, and our position was not sustained, we could be required to pay additional taxes, interest, andpenalties. Such authorities could claim that various withholding requirements apply to us or our subsidiaries or assert that benefitsof tax treaties are not available to us or our subsidiaries. Any increase in the amount of taxes we pay or that are imposed on us couldincrease our worldwide effective tax rate and adversely affect our business, financial condition and results of operations.

Wecould be required to collect additional sales, use, value added, digital services or other similar taxes or be subject to other liabilitiesthat may increase the costs our customers would have to pay for our offerings and adversely affect our results of operations.

Wecould be required to collect sales, value added and other similar taxes in a number of jurisdictions. One or more U.S. states or countriesmay seek to impose incremental or new sales, use, value added, digital services, or other tax collection obligations on us. Further,an increasing number of U.S. states have considered or adopted laws that attempt to impose tax collection obligations on out-of-statecompanies. Additionally, the Supreme Court of the United States has ruled that online sellers can be required to collect sales and usetax despite not having a physical presence in the state of the customer. As a result, U.S. states and local governments may adopt, orbegin to enforce, laws requiring us to calculate, collect, and remit taxes on sales in their jurisdictions, even if we have no physicalpresence in that jurisdiction. A successful assertion by one or more U.S. states requiring us to collect taxes where we presently donot do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial liabilities,including taxes on past sales, as well as interest and penalties. Furthermore, certain jurisdictions, such as the United Kingdom andFrance, have recently introduced a digital services tax, which is generally a tax on gross revenue generated from users or customerslocated in those jurisdictions, and other jurisdictions have enacted or are considering enacting similar laws. A successful assertionthat we should have been or should currently be collecting additional sales, use, value added, digital services or other similar taxesin a particular jurisdiction could, among other things, result in substantial tax payments, create significant administrative burdensfor us, discourage potential customers from subscribing to our platform due to the incremental cost of any such sales or other relatedtaxes, or otherwise adversely affect our business.

RisksRelated to Our Operations in Israel

Political,economic and military conditions in Israel could materially and adversely affect our business.

We have offices in Herzeliya,near Tel Aviv, Israel where our primary operations, research and development, and certain other finance activities are based. In addition,a number of our officers and directors, as well as our founder, are residents of Israel. As of February 22, 2022, we had 7 full-time employeesand one part-time employee in Israel. Accordingly, political, economic and military conditions in Israel and the surrounding region maydirectly affect our business and operations. Since the establishment of the State of Israel in 1948, a number of armed conflicts havetaken place between Israel and its neighboring countries, as well as terrorist acts committed within Israel by hostile elements. In recentyears, Israel has been engaged in sporadic armed conflicts with Hamas, an Islamist terrorist group that controls the Gaza Strip, withHezbollah, an Islamist terrorist group that controls large portions of southern Lebanon, and with Iranian-backed military forces in Syria.In addition, Iran has threatened to attack Israel and may be developing nuclear weapons. Some of these hostilities were accompanied bymissiles being fired against civilian targets in various parts of Israel, including areas in which our employees, and some of our consultantsare located, and negatively affected business conditions in Israel. Any hostilities, armed conflicts, terrorist activities involving Israelor the interruption or curtailment of trade between Israel and its trading partners, or any political instability in the region couldadversely affect business conditions and our results of operations and could make it more difficult for us to raise capital. Parties withwhom we do business have sometimes declined to travel to Israel during periods of heightened unrest or tension, forcing us to make alternativearrangements when necessary in order to meet our business partners face to face. In addition, the political and security situation inIsrael may result in parties with whom we have agreements involving performance in Israel claiming that they are not obligated to performtheir commitments under those agreements pursuant to force majeure provisions in such agreements.

Continuedhostilities between Israel and its neighbors and any future armed conflict, terrorist activity or political instability in the regioncould adversely affect our operations in Israel and adversely affect the market price of our ordinary shares. An escalation of tensionsor violence might result in a significant downturn in the economic or financial condition of Israel, which could have a material adverseeffect on our operations in Israel and our business.

Ourcommercial insurance does not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeligovernment currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannotassure you that this government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damagesincurred by us could have a material adverse effect on our business. Any armed conflicts or political instability in the region wouldlikely negatively affect business conditions and could adversely affect our results of operations.

Further,in the past, the State of Israel and Israeli companies have been subjected to economic boycotts. Several countries still restrict businesswith the State of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on our operatingresults, financial condition or the expansion of our business. A campaign of boycotts, divestment and sanctions has been undertaken againstIsrael, which could also adversely impact our business.

Israel’smost recent general elections were held on April 9, 2019, September 17, 2019, March 2, 2020 and March 23, 2021. Uncertainty surroundingfuture elections and/or the results of such elections in Israel may continue and the political situation in Israel may further deteriorate.Actual or perceived political instability in Israel or any negative changes in the political environment, may individually or in theaggregate adversely affect the Israeli economy and, in turn, our business, financial condition, results of operations and growth prospects.

Ouroperations could be disrupted as a result of the obligation of certain of our personnel residing in Israel to perform military service.

Manyof our officers and employees reside in Israel and may be required to perform annual military reserve duty. Currently, all male adultcitizens and permanent residents of Israel under the age of 40 (or older, depending on their position with the Israeli Defense Forcesreserves), unless exempt, are obligated to perform military reserve duty annually and are subject to being called to active duty at anytime under emergency circumstances. Our operations could be disrupted by the absence for a significant period of one or more of our keyofficers and employees due to military service. Any such disruption could have a material adverse effect on our business, results ofoperations and financial condition.

Wemay not be able to enforce covenants not-to-compete under current Israeli law.

Wehave non-competition agreements with most of our employees, many of which are governed by Israeli law. These agreements generally prohibitour employees from competing with us or working for our competitors for a specified period following termination of their employment.However, Israeli courts are reluctant to enforce non-compete undertakings of former employees and tend, if at all, to enforce those provisionsfor relatively brief periods of time in restricted geographical areas and only when the employee has unique value specific to that employer’sbusiness and not just regarding the professional development of the employee. Any such inability to enforce non-compete covenants maycause us to lose any competitive advantage resulting from advantages provided to us by such confidential information.

Wemay become subject to claims for remuneration or royalties for assigned service invention rights by our employees and consultants, whichcould result in litigation and would adversely affect our business.

Asignificant portion of our intellectual property has been developed by our employees and consultants in the course of their engagementwith us. Under the Israeli Patent Law, 5727-1967, or the Patent Law, inventions conceived by an employee during the scope of his or heremployment relationship with a company are regarded as “service inventions,” which belong to the employer, absent a specificagreement stating otherwise. The Patent Law also provides that absent an agreement providing otherwise, the Israeli Compensation andRoyalties Committee, or the Committee, a body constituted under the Patent Law, shall determine whether the employee is entitled to remunerationfor his or her inventions. Case law clarifies that the right to receive consideration for “service inventions” can be waivedby the employee and that such waiver does not necessarily have to be explicit. The Committee will examine, on a case-by-case basis, thegeneral contractual framework between the parties, using interpretation rules of the general Israeli contract laws. Further, the Committeehas not yet determined one specific formula for calculating this remuneration, but rather uses the criteria specified in the Patent Law.Although we generally seek to enter into assignment-of-invention agreements with our employees and consultants pursuant to which suchindividuals assign to us all rights to any inventions created in the scope of their employment or engagement with us, we cannot guaranteethat all such agreements are self-executing or have been entered into by all applicable individuals. Even when such agreements includeprovisions regarding the assignment and waiver of rights to additional compensation in respect of inventions created within the courseof their employment or consulting relationship with us, including in respect of service inventions, we cannot guarantee that such provisionswill be upheld by Israeli courts, as a result of uncertainty under Israeli law with respect to the efficacy of such provisions. We mayface claims demanding remuneration in consideration for assigned inventions, which could require us to pay additional remuneration orroyalties to our current and former employees and consultants, or be forced to litigate such claims, which could negatively affect ourbusiness. 

Itmay be difficult for investors in the United States to enforce any judgments obtained against us or some of our directors or officers.

Themajority of our assets are located outside the U.S. In addition, our officers are nationals and/or residents of countries other thanthe U.S., and all or a substantial portion of such persons’ assets are located outside the U.S. As a result, it may be difficultfor investors to enforce within the United States any judgments obtained against us or any of our non-U.S. officers, including judgmentspredicated upon the civil liability provisions of the securities laws of the U.S. or any state thereof. Additionally, it may be difficultto assert U.S. securities law claims in actions originally instituted outside of the U.S. Israeli courts may refuse to hear a U.S. securitieslaw claim because Israeli courts may not be the most appropriate forums in which to bring such a claim. Even if an Israeli court agreesto hear a claim, it may determine that the Israeli law, and not U.S. law, is applicable to the claim. Further, if U.S. law is found tobe applicable, certain content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly process, andcertain matters of procedure would still be governed by the Israeli law. Consequently, you may be effectively prevented from pursuingremedies under U.S. federal and state securities laws against us or any of our non-U.S. directors or officers.

RisksRelated to Our Operations in Russia

Operational risks in Russia could adverselyaffect our business.

Inaddition to our U.S. and Israel operations, we have operations in Russia through our wholly owned subsidiary, Beamr Imaging RU, and mayexpand international operations and development in the future. We face risks associated with our operations in Russia, including possibleunfavorable regulatory, legal, political, tax and labor conditions, which could harm our business. Additional risk may involve any futureinability to transfer certain data into or outside of Russia, and the Russian government may limit the access to certain data outsideof Russia. For Example, LinkedIn is blocked for access within Russia.

Politicalor other risks in Russia could adversely affect our business.

Themajority of our developers are located in Saint Petersburg, Russia and are employed by our Russian subsidiary, Beamr Imaging RU. Anychange in the Russian Government or its program of reform or lack of consensus between the Russian President, the Prime Minister, theRussian Government, the Parliament and powerful economic groups could lead to political instability, which could pose a risk to our continuedbusiness operations in the region.

Russiais a federative state consisting of 85 constituent entities, or “subjects.” The Russian Constitution reserves some governmentalpowers for the Russian Government, some for the subjects and some for areas of joint competence. In addition, eight “federal districts”(“federal’nye okruga”), which are overseen by a plenipotentiary representative of the President, supplement the country’sfederal system. The delineation of authority among and within the subjects is, in many instances, unclear and contested, particularlywith respect to the division of tax revenues and authority over regulatory matters. For these reasons, the Russian political system isvulnerable to tension and conflict between federal, subject and local authorities. This tension creates uncertainties in the operatingenvironment in Russia, which may prevent us from carrying out our strategy effectively. The risks associated with these events or potentialevents could materially and adversely affect the investment environment and overall consumer and entrepreneurial confidence in Russia,and our business, prospects, financial condition, hiring ability, and results of operations could be materially and adversely affected.

Political and economic relationsbetween Russia the United States and the EU are complex. The Russian economy has often been impacted by actions taken by governmentsoutside of Russia and by political risk within Russia. The United States, the EU and certain other countries have imposed economic sanctionson certain Russian government officials, private individuals and Russian companies, as well as “sectoral” sanctions affectingspecified types of transactions with named participants in certain industries. In 2019 and 2020, these sanctions were prolonged and extended.Although we do not operate in any sectors of the Russian economy that have been targeted by U.S. or EU sanctions and have no reason tobelieve that we would be targeted by any sanctions in the future, further confrontation in Ukraine and any escalation of related tensionsbetween Russia and the United States and/or the EU, the continuation of existing sanctions, the imposition of further sanctions, or uncertaintyregarding the scope thereof, could have a prolonged adverse impact on the Russian economy, which could impact our ability to hire andmaintain employees, including developers and could have a material adverse impact on our research and development, product developmentor operations.

Furthermore,high levels of corruption reportedly exist in Russia, including the bribing of officials for the purpose of initiating investigationsby government agencies. Corruption and other illegal activities could disrupt our ability to conduct our business effectively, and claimsthat the we are involved in such corruption or illegal activities could generate negative publicity, of which could harm our development,financial condition, results of operations or prospects.

Economicand other risks in Russia could adversely affect our business.

Themajority of our developers are located in Russia, who are employed by our wholly owned subsidiary, Beamr Imaging RU. Operating a businessin an emerging market such as Russia can involve a greater degree of risk than operating a business in more developed markets.

Over the last two decades,the Russian economy has experienced or continues to experience at various times:

The Russian economy has beensubject to abrupt downturns in the past, including as a result of the global financial crisis, and, as an emerging market, remains particularlyvulnerable to further external shocks and any future fluctuations in the global markets. For example, the recent outbreak of COVID-19pandemic has materially adversely affected the Russian economy due to mitigation measures to reduce the spread of the virus and the impactof the sharp decline in oil demand, among other factors. Any deterioration in the general economic conditions in Russia (whether or notas a result of the events mentioned above) could have a material adverse effect on the Russian economy and may result in hiring and operationaldifficulties, as well as potential flight of human capital, which could have a material adverse effect on our business, product developmentand results of operations.

Legal risks in Russia could materiallyadversely affect our operations and Russian tax legislation is subject to frequent change.

Among the risks of the Russianlegal system are: inconsistencies among laws, presidential decrees, and government and ministerial orders and resolutions; conflictinglocal, regional and federal laws and regulations; the untested nature of the independence of the judiciary and its sensitivity to economicor political influences; substantial gaps in the regulatory structure due to the delay or absence of implementing legislation; a highdegree of discretion on the part of governmental authorities; reported corruption within governmental entities and other governmentalauthorities; the relative inexperience of judges and courts in interpreting laws applicable to complex transactions; and the unpredictabilityof enforcement of foreign judgments and foreign arbitral awards. Many Russian laws and regulations are construed in a way that providesfor significant administrative discretion in application and enforcement. Unlawful, selective or arbitrary actions of the Russian Governmenthave reportedly included the denial or withdrawal of licenses, sudden and unexpected tax audits, criminal prosecutions, and civil claims.Any of the above events may have a material adverse effect on our product development and results of operations.

Despite certain improvementsin the taxation system made by the Russian Government over the past decade, Russian tax legislation is still subject to frequent change,varying interpretations, and inconsistent and selective enforcement. There are currently No clear rules for distinguishing between lawfultax optimization and tax evasion. In addition, Russian tax laws do not contain detailed rules on the taxation in Russia of foreign companies.As such, taxpayers often have to resort to court proceedings to defend their position against the Russian tax authorities. However, inthe absence of consistent court practice or binding precedents, there is inconsistency amongst court decisions. Further, the possibilityexists that the Russian Federation would impose arbitrary or onerous taxes and penalties in the future, which could have a material adverseeffect on our product development and results of operations.

Risks Related to this Offering and Ownershipof our Ordinary Shares

The market price for our ordinary sharesmay be volatile or may decline regardless of our operating performance, and you may not be able to resell your shares at or above theinitial public offering price.

The market price of our ordinaryshares may be highly volatile and may fluctuate or decline substantially as a result of a variety of factors, many of which are beyondour control, including:

Furthermore, the stock markethas experienced extreme volatility that in some cases has been unrelated or disproportionate to the operating performance of particularcompanies. These and other factors may cause the market price and demand for our ordinary shares to fluctuate substantially, which maylimit or prevent investors from readily selling their shares and may otherwise negatively affect the liquidity of our ordinary Shares.In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securitiesclass action litigation against the company that issued the stock. If any of our shareholders were to bring a lawsuit against us, wecould incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from ourbusiness.

No public market for our ordinary sharescurrently exists, and an active public trading market may not develop or be sustained following this offering.

Prior to this offering, therehas been no public market for our ordinary shares. An active public trading market for our ordinary shares may not develop followingthe closing of this offering or, if developed, it may not be sustained. The lack of an active market may impair your ability to sellyour shares at the time you wish to sell them or at a price that you consider reasonable. The initial public offering price of our ordinaryshares will be determined by negotiations between us and the underwriters and may not be indicative of prices that will prevail in theopen market following the closing of this offering. The market price of our ordinary shares may decline below the initial public offeringprice, and you may not be able to resell your shares of our ordinary shares at or above the initial offering price, or at all. The lackof an active trading market may also reduce the fair value of your shares. An inactive market may also impair our ability to raise capitalby selling shares of our ordinary shares and may impair our ability to acquire other companies or technologies by using our ordinaryshares as consideration.

After this offering, our principal shareholderswill continue to have significant influence over us.

After the closing of thisoffering, our principal shareholders each holding more than 5% of our outstanding ordinary shares will collectively beneficially ownapproximately % of our outstanding ordinary shares (or approximately % of our outstanding ordinary shares if the underwriters’option to purchase additional shares is exercised in full). See “Principal Shareholders.” These shareholders or their affiliateswill be able to exert significant influence over us and, if acting together, will be able to control matters requiring shareholder approval,including the election of directors and approval of significant corporate transactions, including a merger, consolidation or sale ofall or substantially all of our assets and the issuance or redemption of equity interests in certain circumstances. The interests ofthese shareholders may not always coincide with, and in some cases may conflict with, our interests and the interests of our other shareholders.For instance, these shareholders could attempt to delay or prevent a change in control of our company, even if such change in controlwould benefit our other shareholders, which could deprive our shareholders of an opportunity to receive a premium for their ordinaryshares. This concentration of ownership may also affect the prevailing market price of our ordinary shares due to investors’ perceptionsthat conflicts of interest may exist or arise. As a result, this concentration of ownership may not be in your best interests.

We will have broad discretion in the useof the net proceeds from this offering and may not use them effectively.

The principal purposes ofthis offering are to increase our capitalization and financial flexibility, create a public market for our ordinary shares and enableaccess to the public equity markets for us and our shareholders. We intend to use the net proceeds from this offering for general corporatepurposes, including working capital, operating expenses and capital expenditures. Accordingly, we will have broad discretion in the applicationof the net proceeds from this offering, and you will not have the opportunity as part of your investment decision to assess whether suchnet proceeds are being used appropriately. Investors will need to rely upon the judgment of our management with respect to the use ofsuch net proceeds. Pending their use, we may invest our proceeds in a manner that does not produce income or that loses value. Our investmentsmay not yield a favorable return to our investors and may adversely affect the price of our ordinary shares.

You will experience immediate and substantialdilution in the net tangible book value of the ordinary shares you purchase in this offering and may experience further dilution in thefuture.

The initial public offeringprice of our ordinary shares is substantially higher than the pro forma as adjusted net tangible book value per share of our ordinaryshares. If you purchase ordinary shares in this offering, you will suffer immediate dilution of $           per share, representing the difference between our pro forma as adjusted net tangible book value per share as of December 31, 2021 andthe assumed initial public offering price of $            per share. We also havea significant number of outstanding options to purchase shares of our ordinary shares with exercise prices that are below the assumedinitial public offering price of our ordinary shares. To the extent these options are exercised, you will experience further dilution.See the section of this prospectus titled “Dilution” for additional information.

Future sales of substantial amounts ofour ordinary shares in the public markets, or the perception that such sales might occur, could reduce the price that our ordinary sharesmight otherwise attain.

Future sales of a substantialnumber of shares of our ordinary shares in the public market, particularly sales by our directors, executive officers, and significantshareholders, or the perception that these sales could occur, could adversely affect the market price of our ordinary shares and may makeit more difficult for you to sell your ordinary shares at a time and price that you deem appropriate. Upon the closing of this offering,based on the number of shares of our ordinary shares outstanding as of December 31, 2021 and after giving effect to a reverse share spliteffected on               , 2022 at a ratio of 1-for-          and the immediate conversion upon closing of this offering of (i) convertible preferred shares on a one (1) for one (1) basis into ordinaryshares, and (ii) ordinary shares issuable upon the conversion of            . Thisincludes ordinary shares that we are selling in this offering, which may be resold in the public market immediately without restriction,unless purchased by our affiliates. Substantially all of the remaining shares are currently restricted as a result of securities lawsor restrictions in market stand-off provisions or the lock-up agreements described elsewhere in this prospectus under the caption “Underwriting”(which may be waived at any time, with or without notice, by ThinkEquity LLC).

In addition, following theclosing of this offering and the expiration of the lock-up period described above, holders of an aggregate of approximately ordinaryshares, based on the number of shares outstanding as of this prospectus (after giving effect to a reverse share split effected on             ,2022 at a ratio of 1-for-             and the immediate conversion upon closingof this offering of convertible preferred shares on a one (1) for one (1) basis into ordinary shares), will be entitled to certain rightswith respect to the registration of these shares under the Securities Act pursuant to our Investors’ Rights Agreement. We alsointend to register the offer and sale of all ordinary shares that we may issue from time to time under our equity compensation plans.Once we register these shares, they will be freely tradable in the public market, subject to the volume limitations under Rule 144 ofthe Securities Act in the case of our affiliates and the lock-up agreements or market stand-off provisions referred to above and describedin the “Underwriting” and “Shares Eligible for Future Sale” sections of this prospectus.

The market price of our ordinaryshares may drop significantly when the restrictions on resale by our existing shareholders lapse or if there is an expectation that sucha lapse of resale restrictions or registration of shares will occur. A decline in the trading price of our ordinary shares might impedeour ability to raise capital through the issuance of additional shares of our ordinary shares or other equity securities and may impairyour ability to sell ordinary shares at a price higher than the price you paid for them or at all.

Your ownership and voting power may bediluted by the issuance of additional shares of our ordinary shares in connection with financings, acquisitions, investments, our equityincentive plans or otherwise.

After this offering, we will have ordinary shares authorized but unissued, based on the number of ordinary shares outstanding as of this prospectus, and after giving effect to a reverse share split effected on             , 2022 at a ratio of 1-for-           and the immediate conversion upon closing of this offering of (i) convertible preferred shares on a one (1)for one (1) basis into ordinary shares, and (ii) ordinary shares issuable upon the conversion of              ). Subject to compliance with applicable rules and regulations, we may issue ordinary shares or securities convertible into ordinary shares from time to time for the consideration and on the terms and conditions established by our board of directors in its sole discretion, whether in connection with a financing, acquisition, investment, our equity incentive plans or otherwise. As of this prospectus, we had ordinary shares issuable upon the exercise of outstanding options at a weighted average exercise price of $            per share, of which were vested as of such date, and additional ordinary shares reserved for future issuance under our 2015 Plan. See “Management—Compensation.” Any additional ordinary shares that we issue, including under our 2015 Plan or other equity incentive plans that we may adopt in the future, or in connection with the exercise of our warrants, would dilute the percentage ownership and voting power held by the investors who purchase ordinary shares in this offering. In the future, we may also issue additional securities if we need to raise capital, including, but not limited to, in connection with acquisitions, which could constitute a material portion of our then-outstanding ordinary shares. Any such issuance could substantially dilute the ownership and voting power of our existing shareholders and cause the market price of our ordinary shares to decline.

Our management team has limited experiencemanaging a public company, and the requirements of being a public company may strain our resources, divert management’s attention,and affect our ability to attract and retain qualified board members.

As a public company listedin the United States, we will incur significant additional legal, accounting, and other expenses. In addition, changing laws, regulations,and standards relating to corporate governance and public disclosure, including regulations implemented by the SEC and The Nasdaq StockMarket LLC, or the Nasdaq, may increase legal and financial compliance costs, and make some activities more time consuming. These laws,regulations and standards are subject to varying interpretations, and as a result, their application in practice may evolve over timeas new guidance is provided by regulatory and governing bodies.

Most members of our managementteam have no experience managing a publicly traded company, interacting with public company investors, and complying with the increasinglycomplex laws pertaining to public companies. Our management team may not successfully or efficiently manage our transition to being apublic company that is subject to significant regulatory oversight and reporting obligations under the federal securities laws and thecontinuous scrutiny of securities analysts and investors. Furthermore, we are committed to maintaining high standards of corporate governanceand public disclosure, and our efforts to establish the corporate infrastructure required of a public company and to comply with evolvinglaws, regulations and standards are likely to divert management’s time and attention away from revenue-generating activities tocompliance activities, which may prevent us from implementing our business strategy and growing our business. Moreover, we may not besuccessful in implementing these requirements. If we do not effectively and efficiently manage our transition into a public company andcontinue to develop and implement the right processes and tools to manage our changing enterprise and maintain our culture, our abilityto compete successfully and achieve our business objectives could be impaired, which could negatively impact our business, financialcondition and results of operations.

Additionally, as a publiccompany, we may from time to time be subject to proposals by shareholders urging us to take certain corporate actions. If activist shareholderactivity ensues, we may be required to incur additional costs to retain the services of professional advisors, management time and attentionwill be diverted from our core business operations, and perceived uncertainties as to our future direction, strategy or leadership maycause us to lose potential business opportunities and impair our brand and reputation, any of which could materially and adversely affectour business, financial condition and results of operations.

In addition to increasingour legal and financial compliance costs, the additional rules and regulations described above might also make it more difficult forus to obtain certain types of insurance, including director and officer liability insurance, and we might be forced to accept reducedpolicy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficultfor us to attract and retain qualified persons to serve on our board of directors, on committees of our board of directors or as membersof our senior management team.

We are an “emerging growth company”and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our ordinary sharesless attractive to investors.

For so long as we remainan “emerging growth company” as defined in the JOBS Act, we may take advantage of certain exemptions from various requirementsthat are applicable to public companies that are not “emerging growth companies.” These provisions include, among other exemptions,that:

We may take advantage ofthese exemptions until the last day of our fiscal year following the fifth anniversary of the closing of this offering or such earliertime that we are no longer an emerging growth company. We will cease to be an emerging growth company if (i) we have $1.07 billion ormore in annual revenue in any fiscal year, (ii) the market value of our ordinary shares held by non-affiliates is at least $700 millionas of the end of our most recently completed second fiscal quarter, or (iii) we issue more than $1.0 billion of non-convertible debtover a three-year period. We have elected to take advantage of certain of the reduced reporting and other obligations described abovein the registration statement of which this prospectus forms a part, and intend to take advantage of reduced reporting requirements inthe future for so long as we are able to do so. The JOBS Act also permits an emerging growth company like us to delay the adoption ofcertain accounting standards until those standards would otherwise apply to private companies. We have elected not to use this extendedtransition period for complying with new or revised accounting standards.

We cannot predict if investorswill find our ordinary shares less attractive because we may rely on these exemptions. If some investors find our ordinary shares lessattractive as a result, there may be a less active trading market for our ordinary shares and our stock price may decline or be morevolatile.

We do not anticipate paying dividends onour ordinary shares in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciationin the price of our ordinary shares.

We have never declared orpaid any cash dividends on our ordinary shares and do not anticipate paying any cash dividends on our ordinary shares in the foreseeablefuture. We anticipate that we will retain all of our available funds and any future earnings for use in the operation and expansion ofour business and the repayment of outstanding debt. Any future determination as to the payment of cash dividends will be at the discretionof our board of directors and will depend on, among other things, our business prospects, financial condition, results of operations,current and anticipated cash needs and availability, industry trends and other factors that our board of directors may consider to berelevant. Our ability to pay cash dividends on our ordinary shares in the future may also be limited by the terms of any preferred securitieswe may issue or financial and other covenants in any instruments or agreements governing any additional indebtedness we may incur inthe future. Consequently, investors who purchase ordinary shares in this offering may be unable to realize a return on their investmentexcept by selling sell such shares after price appreciation, which may never occur. Our inability or decision not to pay dividends, particularlywhen others in our industry have elected to do so, could also adversely affect the market price of our ordinary shares.

There can be no assurance that we willnot be classified as a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S.Holders of our ordinary shares.

We would be classified asa passive foreign investment company, or PFIC, for any taxable year if, after the application of certain look-through rules, either:(i) 75% or more of our gross income for such year is “passive income” (as defined in the relevant provisions of the InternalRevenue Code of 1986, as amended, or the Code), or (ii) 50% or more of the value of our assets (generally determined on the basis ofa quarterly average) during such year is attributable to assets that produce or are held for the production of passive income. For thesepurposes, cash and other assets readily convertible into cash or that do or could generate passive income are categorized as passiveassets, and the value of goodwill and other unbooked intangible assets is generally taken into account. Passive income generally includes,among other things, rents, dividends, interest, royalties, gains from the disposition of passive assets and gains from commodities andsecurities transactions. For purposes of this test, we will be treated as owning a proportionate share of the assets and earning a proportionateshare of the income of any other corporation of which we own, directly or indirectly, at least 25% (by value) of the stock. Based onour market capitalization and the composition of our income, assets and operations, we do not expect to be a PFIC for United States federalincome tax purposes for the current taxable year or in the foreseeable future. However, this is a factual determination that must bemade annually after the close of each taxable year. Moreover, the value of our assets for purposes of the PFIC determination may be determinedby reference to the public price of our ordinary shares, which could fluctuate significantly. In addition, it is possible that the InternalRevenue Service may take a contrary position with respect to our determination in any particular year, and therefore, there can be noassurance that we will not be classified as a PFIC in the current taxable year or in the future. Certain adverse U.S. federal incometax consequences could apply to a U.S. Holder (as defined in “U.S. Federal Income Tax Considerations”) if we are treatedas a PFIC for any taxable year during which such U.S. Holder holds our ordinary shares. U.S. Holders should consult their tax advisorsabout the potential application of the PFIC rules to their investment in our ordinary shares. For further discussion, see “Taxation—U.S.Federal Income Tax Considerations—Passive Foreign Investment Companies.”

If a United States person is treated asowning at least 10% of our ordinary shares, such holder may be subject to adverse U.S. federal income tax consequences.

If a United States personis treated as owning (directly, indirectly, or constructively) at least 10% of the value or voting power of our ordinary shares, suchperson may be treated as a “United States shareholder” with respect to each controlled foreign corporation, or CFC, in ourgroup (if any). Because our group includes a U.S. subsidiary, certain of our non-U.S. subsidiaries will be treated as CFCs (regardlessof whether or not we are treated as a CFC). A United States shareholder of a CFC may be required to report annually and include in itsU.S. taxable income its pro rata share of “Subpart F income,” “global intangible low-taxed income,” and investmentsin U.S. property by CFCs, regardless of whether we make any distributions. An individual that is a United States shareholder with respectto a CFC generally would not be allowed certain tax deductions or foreign tax credits that would be allowed to a United States shareholderthat is a U.S. corporation. Failure to comply with these reporting obligations may subject a United States shareholder to significantmonetary penalties and may prevent the statute of limitations with respect to such shareholder’s U.S. federal income tax returnfor the year for which reporting was due from starting. We cannot provide any assurances that we will assist investors in determiningwhether we are or any of our non-U.S. subsidiaries is treated as CFC or whether any investor is treated as a United States shareholderwith respect to any such CFC or furnish to any United States shareholders information that may be necessary to comply with the aforementionedreporting and tax paying obligations. The United States Internal Revenue Service has provided limited guidance on situations in whichinvestors may rely on publicly available information to comply with their reporting and tax paying obligations with respect to foreign-controlledCFCs. A United States investor should consult its advisors regarding the potential application of these rules to an investment in ourordinary shares.

We will incur significantincreased costs as a result of operating as a public company, and our management will be required to devote substantial time to new complianceinitiatives.

As a public company whoseordinary shares will be listed in the United States, we will incur significant legal, accounting and other expenses that we did not incuras a private company. We will be subject to the reporting requirements of the Exchange Act, the other rules and regulations of the SEC,and the rules and regulations of The NASDAQ Stock Market, or Nasdaq, and provisions of the Companies Law that apply to public companiessuch as us. The expenses that will be required in order to adequately prepare for being a public company will be material, and compliancewith the various reporting and other requirements applicable to public companies will require considerable time and attention of management.For example, the Sarbanes-Oxley Act and the rules of the SEC and national securities exchanges have imposed various requirements on publiccompanies, including requiring establishment and maintenance of effective disclosure and financial controls. Our management and otherpersonnel will need to devote a substantial amount of time to these compliance initiatives. These rules and regulations will continueto increase our legal and financial compliance costs and will make some activities more time-consuming and costly. For example, we expectthese rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, andwe may be required to accept reduced policy limits on coverage or incur substantial costs to maintain the same or similar coverage. Theimpact of these events could also make it more difficult for us to attract and retain qualified personnel to serve on our board of directors,our board committees, or as executive officers.

The Sarbanes-Oxley Act requires,among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular,we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to reporton the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, beginningas early as our second annual report on Form 20-F for the fiscal year ended December 31, 2022. In addition, we will be required to haveour independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting beginningwith our annual report on Form 20-F following the date on which we are no longer an emerging growth company. Our compliance with Section404 of the Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant management efforts. Wecurrently do not have an internal audit group, and we will need to hire additional accounting and financial staff with appropriate publiccompany experience and technical accounting knowledge. If we are not able to comply with the requirements of Section 404 in a timelymanner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reportingthat are deemed to be material weaknesses, the market price of our shares could decline and we could be subject to sanctions or investigationsby Nasdaq, the SEC or other regulatory authorities, which would require additional financial and management resources.

Our ability to successfullyimplement our business plan and comply with Section 404 requires us to be able to prepare timely and accurate financial statements. Weexpect that we will need to continue to improve existing, and implement new operational and financial systems, procedures and controlsto manage our business effectively. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems,procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financialreporting is effective and to obtain an unqualified report on internal controls from our auditors as required under Section 404 of theSarbanes-Oxley Act. This, in turn, could have an adverse impact on trading prices for our ordinary shares and could adversely affectour ability to access the capital markets.

We have identified a material weaknessin our internal control over financial reporting, and we may not be able to successfully implement remedial measures.

Wehave identified control deficiencies in our financial reporting process that constitute a material weakness for the years ended December31, 2020 and 2021 which are primarily due to the fact that we were a private company prior to this offering. The material weakness relatedto lack of sufficient internal accounting personnel, segregation of duties, lack of sufficient internal controls (including IT generalcontrols, entity level controls and transaction level controls).

Followingthe completion of this offering, we expect to take a number of measures to address the material weaknesses that have been identified.See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Internal Control Over FinancialReporting.” However, we cannot assure you that these measures may fully address the material weaknesses in our internal controlover financial reporting or that we may conclude that they have been fully remediated.

Weexpect to complete our remediation plan within the next 12 months. However, we have not tested the effectiveness of our internal controlover financial reporting and cannot assure you that we will be able to successfully remediate this material weakness and, even if wedo, we cannot assure you that we will not suffer from other material weaknesses in the future. Except for additional personnel costs,the cost of systems and the costs of our third-party service providers, we do not expect to incur any material costs related to our remediationplan.

Further,there can be no assurance that we will not suffer from other material weaknesses or significant deficiencies in the future. If we failto remediate these material weaknesses or fail to otherwise maintain effective internal controls over financial reporting in the future,such failure could result in a material misstatement of our annual or quarterly financial statements that would not be prevented or detectedon a timely basis and which could cause investors and other users to lose confidence in our financial statements, limit our ability toraise capital and have a negative effect on the trading price of our common stock. Additionally, failure to remediate the material weaknessor otherwise maintain effective internal controls over financial reporting may also negatively impact our operating results and financialcondition, impair our ability to timely file our periodic and other reports with the SEC, subject us to additional litigation and regulatoryactions and cause us to incur substantial additional costs in future periods relating to the implementation of remedial measures.

Our disclosure controls and proceduresmay not prevent or detect all errors or acts of fraud.

Following the closing ofthis offering, we will be subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls andprocedures to provide reasonable assurance that information we must disclose in reports we file or submit under the Exchange Act is accumulatedand communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and formsof the SEC. We believe that any disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable,not absolute, assurance that the objectives of the control system are met.

These inherent limitationsinclude the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake.Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorizedoverride of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraudmay occur and not be detected.

If our estimates or judgments relatingto our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fallbelow the expectations of securities analysts and investors, resulting in a decline in the trading price of our ordinary shares.

The preparation of financialstatements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidatedfinancial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that webelieve to be reasonable under the circumstances, as discussed in the section titled “Management’s Discussion and Analysisof Financial Condition and Results of Operations” included elsewhere in this prospectus, the results of which form the basis formaking judgments about the carrying values of assets, liabilities, equity, revenue, and expenses that are not readily apparent from othersources. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those inour assumptions, which could cause our results of operations to fall below our publicly announced guidance or the expectations of securitiesanalysts and investors, resulting in a decline in the market price of our ordinary shares.

Unfavorable conditions in our industryor the global economy or reductions in information technology spending could limit our ability to grow our business and negatively affectour results of operations.

Our results of operationsmay vary based on the impact of changes in our industry and the global economy on us and our customers. Current or future economic uncertaintiesor downturns could adversely affect our business, financial condition and results of operations. Negative conditions in the general economyboth in the United States and abroad, including conditions resulting from changes in gross domestic product growth, financial, and creditmarket fluctuations, political turmoil, natural catastrophes, the ongoing COVID-19 pandemic, any other pandemic, epidemic or outbreakof infectious disease, warfare, protests and riots, and terrorist attacks on the United States, Europe, the Asia Pacific region, or elsewhere,could cause a decrease in business investments by our customers and potential customers, including spending on information technology,and negatively affect the growth of our business. To the extent our offerings are perceived by customers and potential customers as discretionary,our revenue may be disproportionately affected by delays or reductions in general information technology spending. Also, customers maychoose to develop in-house software as an alternative to using our offerings. Moreover, competitors may respond to market conditionsby lowering prices. We cannot predict the timing, strength or duration of any economic slowdown, instability or recovery, generally orwithin any particular industry. If the economic conditions of the general economy or markets in which we operate do not improve, or worsenfrom present levels, our business, financial condition and results of operations could be adversely affected.

The estimates of market opportunity andforecasts of market growth included in this prospectus may prove to be inaccurate, and even if the markets in which we compete achievethe forecasted growth, our business could fail to grow at similar rates, or at all.

The estimates of market opportunityand forecasts of market growth included in this prospectus may prove to be inaccurate. Market opportunity estimates and growth forecastsare subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate, including as a resultof any of the risks described in this prospectus.

In addition, the variablesthat go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particularnumber or percentage of addressable users or companies covered by our market opportunity estimates will purchase our offerings or generateany particular level of revenue for us. In addition, our ability to expand in any of our target markets depends on a number of factors,including the cost, performance, and perceived value associated with our platform and those of our competitors. Even if the markets inwhich we compete meet the size estimates and growth forecasted in this prospectus, our business could fail to grow at similar rates,or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to manyrisks and uncertainties. Accordingly, the forecasts of market growth included in this prospectus should not be taken as indicative ofour future growth.

If industry or financial analysts do notpublish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our ordinary shares, themarket price and trading volume of our ordinary shares could decline.

The trading market for ourordinary shares is influenced by the research and reports that industry or financial analysts publish about us and our business. We donot control these analysts or the content and opinions included in their reports. As a new public company, we may be slow to attractresearch coverage and the analysts who publish information about our ordinary shares will have had relatively little experience withour company, which could affect their ability to accurately forecast our results and make it more likely that we fail to meet their estimates.In the event we obtain industry or financial analyst coverage, if any of the analysts who cover us issues an inaccurate or unfavorableopinion regarding our company, the market price of our ordinary shares would likely decline. In addition, the share prices of many companiesin the technology industry have declined significantly after those companies have failed to meet, or significantly exceed, the financialguidance they have publicly announced or the expectations of analysts and investors. If our financial results fail to meet, or significantlyexceed, our announced guidance or the expectations of analysts or investors, analysts could downgrade our ordinary shares or publishunfavorable research about us. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly,our visibility in the financial markets could decrease, which in turn could cause the market price or trading volume of our ordinaryshares to decline.

SPECIAL NOTE REGARDINGFORWARD-LOOKING STATEMENTS

This prospectus containsforward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectivesand expectations for our business operations and financial performance and condition. Any statements contained herein that are not statementsof historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminologysuch as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,”“could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,”“objective,” “plan,” “predict,” “potential,” “positioned,” “seek,”“should,” “target,” “will,” “would,” and other similar expressions that are predictionsof or indicate future events and future trends, or the negative of these terms or other comparable terminology.

Forward-looking statementscontained in this prospectus include, but are not limited to, statements about:

Forward-looking statementsare based on our management’s current expectations, estimates, forecasts and projections about our business and the industry inwhich we operate and our management’s beliefs and assumptions, and are not guarantees of future performance or development andinvolve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. As a result, any or all ofour forward-looking statements in this prospectus may turn out to be inaccurate. Important factors that may cause actual results to differmaterially from current expectations include, among other things, those listed under “Prospectus Summary,” “Risk Factors,”Use of Proceeds,” Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Business”and elsewhere in this prospectus. Potential investors are urged to consider these factors carefully in evaluating the forward-lookingstatements. You should read thoroughly this prospectus and the documents that we refer to with the understanding that our actual futureresults may be materially different from and worse than what we expect. We qualify all of our forward-looking statements by these cautionarystatements.

The forward-looking statementsincluded in this prospectus speak only as of the date of this prospectus. Although we believe that the expectations reflected in theforward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstancesreflected in the forward-looking statements will be achieved or will occur. Except as required by law, we assume no obligation to updateor revise these forward-looking statements for any reason, even if new information becomes available in the future. You should, however,review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this prospectus.See “Where You Can Find More Information.”

USE OF PROCEEDS

We estimate that the netproceeds from the sale of ordinary shares in this offering will be approximately $          million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, based onan assumed initial public offering price of $           per ordinary share, which isthe midpoint of the price range set forth on the cover page of this prospectus. If the underwriters exercise their option to purchaseup to an additional ordinary shares in full, we estimate that the net proceeds to us from this offering will be approximately $           million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Each$1.00 increase (decrease) in the assumed initial public offering price of $          per ordinary share would increase (decrease) the net proceeds to us from this offering, after deducting the estimated underwriting discountsand commissions and estimated offering expenses payable by us, by $           million,assuming that the number of ordinary shares offered by us, as set forth on the cover page of this prospectus, remains the same. We mayalso increase or decrease the number of ordinary shares we are offering. An increase (decrease) of 1.0 million in the number ofordinary shares we are offering would increase (decrease) the net proceeds to us from this offering, after deducting the estimated underwritingdiscounts and commissions and estimated offering expenses payable by us, by $          million, assuming the assumed initial public offering price stays the same.

We currently expect to usethe net proceeds from this offering for the following purposes:

Although we currently anticipatethat we will use the net proceeds from this offering as described above, there may be circumstances where a reallocation of funds isnecessary. Amounts and timing of our actual expenditures will depend upon a number of factors, including our sales, marketing and commercializationefforts, demand for our products, operating costs and other factors described under “Risk Factors” in this prospectus. Accordingly,our management will have flexibility in applying the net proceeds from this offering. An investor will not have the opportunity to evaluatethe economic, financial or other information on which we base our decisions on how to use the proceeds.

Based on our current plans,we believe that our existing cash, cash equivalents and short-term deposits, together with the net proceeds of this offering, will besufficient to enable us to fund our operating expenses and capital expenditure requirements through          . We anticipate that these funds, together with the net proceeds of this offering, will be sufficient to           . We have based this estimate on assumptions that may prove to be incorrect, and we could use our available capital resources soonerthan we currently expect.

Pending our application ofthe net proceeds from this offering, we plan to invest such proceeds in short-term, investment-grade, interest-bearing securities anddepository institutions.

DIVIDEND POLICY

We have never declared orpaid any cash dividends to our shareholders of our ordinary shares, and we do not anticipate or intend to pay cash dividends in the foreseeablefuture. Payment of cash dividends, if any, in the future will be at the discretion of our board of directors in compliance with applicablelegal requirements and will depend on a number of factors, including future earnings, our financial condition, operating results, contractualrestrictions, capital requirements, business prospects, our strategic goals and plans to expand our business, applicable law and otherfactors that our board of directors may deem relevant.

The Companies Law imposesfurther restrictions on our ability to declare and pay dividends. See “Description of Share Capital” for additional information.

Payment of dividends maybe subject to Israeli withholding taxes. See “Taxation” for additional information.

CAPITALIZATION

The following table sets forthour cash and cash equivalents and our capitalization as of December 31, 2021:  

The pro forma as adjustedinformation set forth in the table below is illustrative only and will be adjusted based on the actual public offering price and otherterms of this offering determined at pricing.

You should read this tablein conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”and our financial statements and related notes included elsewhere in this prospectus.

(1) Each $1.00 increase or decrease in the assumedinitial public offering price of $          per ordinary share, which is the midpoint ofthe price range set forth on the cover page of this prospectus, would increase or decrease, respectively, the amount of cash, cash equivalentsand short-term deposits, total shareholders’ (deficiency) equity and total capitalization by $         million, assuming the number of ordinary shares offered by us, as set forth on the cover page of this prospectus, remains the same, andafter deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increaseor decrease the number of ordinary shares we are offering. An increase or decrease of 1.0 million in the number of ordinary shareswe are offering would increase or decrease, respectively, the amount of cash, cash equivalents and short-term deposits, total shareholders’(deficiency) equity and total capitalization by $          million, assuming the assumedinitial public offering price per ordinary share, as set forth on the cover page of this prospectus, remains the same. The pro formaas adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price andother terms of this offering determined at pricing.

The number of the ordinaryshares to be issued and outstanding immediately after this offering as shown above assumes that all of the ordinary shares offered herebyare sold, and is based on                ordinary shares outstandingas of    , 2022 after giving effect to a                reverseshare split effected on                , 2022 at a ratioof 1-for-              and the immediate conversion upon closing ofthis offering of (i) convertible ordinary shares and convertible preferred shares on a one (1) for one (1) basis into ordinary shares,and (ii) ordinary shares issuable upon the automatic conversion of advance investment agreements at a conversion price equal to $ , themidpoint of the price range set forth on the cover page of this prospectus, and excludes:

DILUTION

If you invest in our ordinaryshares in this offering, your interest will be immediately diluted to the extent of the difference between the initial public offeringprice per ordinary share in this offering and the pro forma as adjusted net tangible book value per ordinary share after this offering.Dilution results from the fact that the initial public offering price per ordinary share is substantially in excess of the net tangiblebook value per ordinary share. As of December 31, 2021, we had a historical net tangible book value of $          million, or $           per ordinary share. Our net tangible book value per share representstotal tangible assets less total liabilities, divided by the number of ordinary shares outstanding on December 31, 2021.

Our pro forma net tangiblebook value as of December 31, 2021 was $           million, or $          per ordinary share. Pro forma net tangible book value per share represents total tangible assets less total liabilities, divided by thenumber of ordinary shares outstanding as of December 31, 2021, after giving effect to (i) the automatic conversion of all of our outstandingconvertible ordinary shares and convertible preferred shares as of December 31, 2021 into an aggregate of ordinary shares, and (ii) theautomatic conversion of advance investment agreements into ordinary shares at a conversion price equal to $ , the midpoint of the pricerange set forth on the cover page of this prospectus, as if such conversions had occurred on December 31, 2021.

After giving effect to thesale of ordinary shares in this offering at an assumed initial public offering price of $ per ordinary share, which is the midpoint ofthe price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and commissions andestimated offering expenses, and after taking into the pro forma adjustments described above, our pro forma as adjusted net tangible bookvalue at December 31, 2021 would have been $ per share. This represents an immediate increase in pro forma as adjusted net tangible bookvalue of $ per share to existing shareholders and immediate dilution of $ per ordinary share to new investors. The following table illustratesthis dilution per ordinary share: 

The pro forma and pro formaas adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price andother terms of this offering determined at pricing. A $1.00 increase (decrease) in the assumed initial public offering price of $         per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease)our pro forma as adjusted net tangible book value as of December 31, 2021 after this offering by approximately $         per ordinary share, and would increase (decrease) dilution to investors in this offering by $         per ordinary share, assuming that the number of ordinary shares offered by us, as set forth on the cover page of this prospectus, remainsthe same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may alsoincrease or decrease the number of ordinary shares we are offering. An increase (decrease) of 1.0 million in the number of ordinaryshares we are offering would increase (decrease) our pro forma as adjusted net tangible book value as of December 31, 2021 after thisoffering by approximately $          per ordinary share, and would decrease (increase) dilutionto investors in this offering by approximately $          per ordinary share, assuming theassumed initial public offering price per ordinary share remains the same, after deducting the estimated underwriting discounts and commissionsand estimated offering expenses payable by us.

If the underwriters exercisein full their option to purchase additional ordinary shares, the pro forma as adjusted net tangible book value will increase to $         per ordinary share, representing an immediate increase in pro forma as adjusted net tangible book value to existing shareholders of $         per ordinary share and an immediate dilution of $          per ordinary share to new investorsparticipating in this offering.

The following table shows,as of December 31, 2021, on a pro forma as adjusted basis, the number of ordinary shares purchased from us, the total consideration paidto us and the average price paid per share by existing shareholders and by new investors purchasing ordinary shares in this offering atan assumed initial public offering price of $ per ordinary share, which is the midpoint of the price range set forth on the cover pageof this prospectus, before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us:

A $1.00 increase (decrease)in the assumed initial public offering price of $        per ordinary share (the midpoint of the pricerange set forth on the cover page of this prospectus) would increase (decrease) the total consideration paid by investors participatingin this offering, total consideration paid by all shareholders and the average price per share paid by all shareholders by approximately$        million, $        million and $       , respectively, assuming that the number of ordinary shares offered by us, as set forth on the cover page of this prospectus, remainsthe same and before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly,a 1.0 million share increase (decrease) in the number of ordinary shares offered by us, as set forth on the cover of this prospectus,would increase (decrease) the total consideration paid by investors participating in this offering, total consideration paid by all shareholdersand the average price per share paid by all shareholders by approximately $        million, $       million and $        , respectively, assuming the assumed initial public offering price of $       per ordinary share (the midpoint of the price range set forth on the cover page of this prospectus) remains the same, and after deductingthe estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The number of the ordinaryshares to be issued and outstanding immediately after this offering as shown above assumes that all of the ordinary shares offered herebyare sold, and is based on        ordinary shares outstanding as of       , 2022 after giving effect to a        reverse share split effected on       , 2022 at a ratio of 1-for-        and the immediate conversion upon closing of this offering of (i)convertible ordinary shares and convertible preferred shares on a one (1) for one (1) basis into ordinary shares, and (ii) ordinary sharesissuable upon the automatic conversion of advance investment agreements at a conversion price equal to $ , the midpoint of the pricerange set forth on the cover page of this prospectus, and excludes::

To the extent that outstandingoptions are exercised, new options or warrants are issued or we issue additional ordinary shares in the future, there will be furtherdilution to new investors. We may choose to raise additional capital due to market conditions or strategic considerations even if webelieve we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through thesale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our equity holders.

MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the followingdiscussion in conjunction with our audited consolidated financial statements including the related notes thereto as of and for the financialyears ended December 31, 2021 and 2020 contained elsewhere in this prospectus. In addition to historical information, this discussioncontains forward-looking statements that involve risks and uncertainties. You should read the sections of this prospectus titled “RiskFactors” and “Special Note Regarding Forward-Looking Statements” for a discussion of the factors that could cause ouractual results to differ materially from our expectations.

Overview

We are a leading innovatorof video encoding, transcoding and optimization solutions that enable high quality, performance, and unmatched bitrate efficiency forvideo and images. With our Emmy®-winning patented technology and award-winning services, we help our customers realize the potentialof video encoding and media optimization to address business-critical challenges. Our customers include tier one OTT, content distributors,video streaming platforms, and Hollywood studios who rely on our suite of products and expertise to reduce the cost and complexity associatedwith storing, distributing and monetizing video and images across devices.

At the heart of our patentedoptimization technology is the proprietary BQM, that is highly correlated with the human visual system. BQM is integrated into our CABR,system, which maximizes quality and remove visual redundancies resulting in a smaller file size. The BQM has excellent correlation withsubjective results, confirmed in testing under ITU BT.500, an international standard for rigorous testing of image quality. The perceptualquality preservation of CABR has been repeatedly verified using large scale crowd-sourcing based testing sessions, as well as by industryleaders and studio “golden eyes”.

We currently license threecore video and image compression products that help our customers use video and images to further their businesses in meaningful ways:(1) a suite of video compression software encoder solutions including the Beamr 4 encoder, Beamr 4X content adaptive encoder, Beamr 5encoder and the Beamr 5X content adaptive encoder, (2) Beamr JPEGmini photo optimization software solutions for reducing JPEG file sizes,and (3) Beamr Silicon IP block, a hardware solution for integration into dedicated video encoding ASICs, GPUs, and application processors.

Our current product line ismainly geared to the high end, high quality media customers and we count among our enterprise customers Netflix, ViacomCBS, Snapfish,Wowza, Microsoft, VMware, Genesys, Deluxe, Vimeo, Encoding.com, Citrix, Walmart, Photobox, Antix, Dalet, and other leading media companiesusing video and photo solutions.

We currently derive a significantportion of our revenue from a limited number of our customers. For the years ended December 31, 2021 and December 31, 2020, our top tencustomers in the aggregate accounted for approximately 62% of our revenues.

Due to the high cost and complexityof deploying our existing software solutions and the long sales lead times, we have a made a strategic decision to focus our resourceson the development and commercialization of our next-generation product, the Beamr HW-Accelerated Content Adaptive Encoding solution,a SaaS solution that is designed, based on our own internal testing, to be up to 10x more cost efficient than our existing software-basedsolutions, resulting in reduced media storage, processing and delivery costs.

We are currently collaboratingwith NVIDIA, a multinational technology company and a leading developer of GPUs, with an annual revenue of $26.9 billion for the fiscalyear 2022, to develop the world’s first GPU accelerated encoding solution that would allow fast and easy end-user deployment combinedwith superior video compression rates powered with our CABR rate control and BQM quality measure. Our BQM quality measure software willexecute directly on NVIDIA GPU cores and interact with the NVIDIA video accelerator encoder known as NVENC. NVIDIA NVENC is a high-quality,high-performance hardware video encoder that is built into most NVIDIA GPUs. NVENC offloads video encoding to hardware, and provides extremeperformance for applications such as live video encoding, cloud gaming and cloud storage. NVIDIA GPUs with NVENC are available on allmajor cloud platforms. We are in the advanced stages of development and expect to beta release the Beamr HW-Accelerated Content AdaptiveEncoding solution during the second half of 2022 and expect that following release, end-users of the solution will enjoy significant end-userstorage cost savings, potentially reducing their return on investment for storage optimization to approximately four months, comparedto approximately two years with our existing software encoder solutions.

Impact of COVID-19

In December 2019, an outbreakof the COVID-19 disease was first identified and began to spread across the globe. In March 2020, the World Health Organization declaredCOVID-19 a pandemic, impacting many countries around the world, including where our end users and customers are located. As a resultof the COVID-19 pandemic, government authorities around the world have ordered schools and businesses to close, imposed restrictionson non-essential activities and required people to remain at home while instilling significant limitations on traveling and social gatherings.In response to the pandemic, in the first quarter of 2020, we temporarily closed all of our offices, enabled our entire work force towork remotely and implemented travel restrictions for non-essential business. During the second quarter of 2020 we reopened our offices,however most of our employees continued to work remotely, a majority of whom continue to do so as of the date of this prospectus. Inaddition, as a result of COVID-19, we have experienced and expect to continue to experience an increase in the average length of salescycles to onboard new customers, delays in new projects, and requests by some customers for extension of payment obligations, all ofwhich could materially and adversely impact our business, financial condition and results of operations in future periods. The changeswe have implemented to date have not materially affected us and are not expected to materially affect our ability to operate our business,including our financial reporting systems. While the potential economic impact brought by, and the duration of, any pandemic, epidemicor outbreak of an infectious disease, including COVID-19, is difficult to assess or predict, the widespread COVID-19 pandemic has resultedin, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital, whichcould in the future negatively affect our liquidity.

For additional information,see “Risk Factors—Risks Related to Our Business and Industry – “The ongoing COVID-19 pandemic could adverselyaffect our business, financial condition and results of operations.”

Components of Our Results of Operations

Revenue

Software Licensing

Our revenues are mainly comprisedof revenue from licensing the rights to use our software for a limited term (mainly for a period of one to three years) or on a perpetualbasis for enterprises that incorporate our perpetual license in their own products delivered to end users and for the our products soldto thousands of private consumers, as applicable to each contract, and from and provision of related maintenance and technical supportservices (i.e. . Post-Contract Customer Support, or PCS).

Revenue from the sale of softwarelicense (either timely-based or perpetual) is recognized at a point in time in which the license is delivered to the customer. The softwarelicense is considered a distinct performance obligation, as the customer can benefit from the software on its own. Revenue from PCS servicesare also derived from annual maintenance providing for unspecified upgrades on a when-and-if-available basis. The right for an unspecifiedupgrade for the version acquired by the customer and enhancements on a when-and-if-available basis that do not specify the features, functionalityand release date of future product enhancements for the customer to know what will be made available and the general timeframe in whichit will be delivered. We consider the PCS performance obligation as a distinct performance obligation that is satisfied over time andrecognized on a straight-line basis over the contractual period (mainly over a period of one year either for timely-based license or forperpetual license).

As we bundle software licenses(either timely-based or perpetual) together with PCS, the transaction price is allocated to the separate performance obligations on arelative standalone selling price basis.

Since we do not sell PCS ona stand-alone basis and due to the fact that these services are usually involved with limited customer support, mainly based on severalhours of technical support per contract (as management believes the technology and products covered under the software license componentare mature and fully functional), the standalone selling prices of the PCS are determined based on the expected cost plus a margin basedon estimation of direct fulfillment cost (an hourly service) and a reasonable margin. Such estimate is also corroborated with the pricethat the customer would have to pay to a third-party service provider for a similar support service.

The stand-alone selling priceof the software licenses (either timely-based or perpetual) is estimated by management based on adjusted market assessment approach whichrepresents management estimation of the price that a customer in the market will be willing to pay for such license on a stand-alone basis(i.e. without any PCS).

Due to the fact that theseservices are usually involved with limited customer support, mainly based on several hours of technical support per contract, the transactionprice allocated to the PCS is considered insignificant. Consequently, most of the transaction price is allocated to the softwarelicenses as management believes the technology and products covered under the software license component are mature and fully functional.

Cost of Revenue

Cost of software licensingand related maintenance and technical support services revenues primarily consist of costs related to salaries, of our support team andadditional overhead allocation costs such as rent, utilities and supplies to all departments based on relative headcount.

Cost of revenue decreasedin absolute dollars and as a percentage of total revenue from the years ended years ended December 31, 2020 to 2021.

Gross Margins

Gross margins have been,and will continue to be, affected by a variety of factors, including the average sales price of our products and services, volume growth,the mix of revenues, software licenses, maintenance and technical support and professional services, onboarding of new media and telecomcustomers, and changes in cloud infrastructure and personnel costs.

Operating Expenses

Research and Development

Our research and developmentexpenses consist primarily of costs incurred for personnel-related expenses for our technical staff, including salaries and other directpersonnel-related costs. Additional expenses include consulting, amortization of acquired technology intangible asset and professionalfees for third-party development resources. We expect our research and development expenses to increase in absolute dollars for the foreseeablefuture as we continue to dedicate substantial resources to develop, improve and expand the functionality of our solutions. Subsequentcosts incurred for the development of future upgrades and enhancements, which are expected to result in additional functionality, mayqualify for capitalization under internal-use software and therefore may cause research and development expenses to fluctuate.

Selling and MarketingExpenses

Our selling and marketingexpenses consist primarily of personnel related costs for our sales and marketing functions, including salaries and other direct personnel-relatedcosts. Additional expenses include marketing program costs, amortization of acquired customer relationships and trade names, intangibleassets, and payment processer commissions. We expect our selling and marketing expenses will increase on an absolute dollar basis forthe foreseeable future as we continue to increase investments to support our growth. We also anticipate that selling and marketing expenseswill increase as a percentage of revenue in the near and medium-term.

General and AdministrativeExpenses

Our general and administrativeexpenses consist primarily of personnel-related costs for our executive, finance, human resources, professional fees, information technologyand legal functions, including salaries and other direct personnel-related costs. We expect general and administrative expense to increaseon an absolute dollar basis for the foreseeable future as we continue to increase investments to support our growth and as a result ofour becoming a public company.

We allocate overhead expensesrelated to the services agreement and the office agreement expenses under which we receive recurring consulting and related servicesfrom our founder, Mr. Sharon Carmel as Chief Executive Officer and an entity controlled by him, Sharon Carmel Management, Ltd. The allocationwas done based on the management estimation to reflect the contribution to the related activity.

Other Income

Other income consists primarilyof loans forgiveness as it were utilized for qualifying expenses under the Coronavirus Aid, Relief, and Economic Security Act.

Financing Expenses, Net

Financing expenses, net consistsof amortization of discounts and interest expense on our indebtedness, modification of terms relating to our loan with SVB and changesin the fair value of warrants and convertible advanced investments. Financial expenses, net also includes foreign exchange gains andlosses.

Taxes on Income

We are subject to taxes injurisdictions or countries in which we conduct business. Our effective tax rate is affected by tax rates in jurisdictions and the relativeamounts of income we earn in those jurisdictions, changes in the valuation of our deferred tax assets and liabilities, applicabilityof any valuation allowances, and changes in tax laws in jurisdictions in which we operate. Due to cumulative losses, we maintain a valuationallowance against our deferred tax assets. We consider all available evidence, both positive and negative, in assessing the extent towhich a valuation allowance should be applied against our deferred tax assets. Realization of our deferred tax assets depends upon futureearnings, the timing and amount of which are uncertain. Our effective tax rate is affected by tax rates in foreign jurisdictions andthe relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation,and changes in our valuation allowance.

Results of Operations

Year Ended December 31, 2021 Compared toYear Ended December 31, 2020

The following tables summarizekey components of our results of operations for the periods presented. The period-to-period comparisons of our historical results arenot necessarily indicative of the results that may be expected in the future.

Revenues, Cost of Revenues and Gross Profit

The following table presentsour revenue, cost of revenues and gross profit for the periods indicated:

Revenues increased by $0.1million, or 4%, to $3.3 million for the year ended December 31, 2021, from $3.2 million for the year ended December 31, 2020. The increasewas primarily due to higher volume of transactions in which license renewal transactions have occurred in 2021 which resulted in recognizingthe related revenues in higher amount in such reported year compared to 2020.

Operating Expenses

Research and DevelopmentExpenses

Research and development expensesdecreased by $0.7 million, or 25% to $2 million for the year ended December 31, 2021, from $2.7 million in 2020. The decrease was primarilydue to (i) a reduction in salary and expenses related to a change in priority of deployment of our resources, (ii) a decrease in depreciationand amortization of intangible assets, and (iii) our focus of our R&D on our new SaaS solution, the Beamr HW-Accelerated Content AdaptiveEncoding solution.

Selling and Marketing Expenses

Selling and marketing expensesdecreased by $0.4 million, or 30%, to $1 million for the year ended December 31, 2021, from $1.4 million in 2020. The decrease was primarilydue to (i) a reduction in salary and expenses related to a change in priority of deployment of our resources, (ii) a decrease in depreciationand amortization of intangible assets, and (iii) our focus of our R&D on our new SaaS solution, the Beamr HW-Accelerated Content AdaptiveEncoding solution.

General and Administrative

General and administrativeexpenses increased by $0.1 million, or 15%, to $0.8 million for the year ended December 31, 2021, from $0.7 million in 2020. The increasewas primarily due to IPO related service providers.

Other Income

Other income of $0.1 millionfor the year ended December 31, 2021, was due to forgiveness of loans under paycheck protection program. Other income of $0.02 millionfor the year ended December 31, 2020, was due to a government grant in Israel related to COVID-19 benefits.

Financing Expenses, Net

Financing expenses decreasedby $0.2 million, or 32%, to $0.5 million for the year ended December 31, 2021, from $0.7 million in 2020. The decrease was primarily dueto a decrease in the change of fair value of convertible advanced investment and a decrease in exchange rate differences offset by anincrease in amortization of discount and accrued interest on our loan from SVB.

Taxes on Income

Taxes on income decreasedby $0.04 million, or 45%, to $0.05 million for the year ended December 31, 2021, from $0.1 million in 2020. The decrease was primarilydue to tax provision adjustments related to amortization of intangible assets.

Liquidity and Capital Resources

Overview

We have financed our operationsthrough cash generated from operations, the proceeds from our private offerings, proceeds from receiving convertible advanced investmentsfrom our current shareholders and others. Cash and cash equivalents on December 31, 2021 were approximately $1 million.

We believe that our existingcapital resources and cash flows from operations together with funds from the 2022 Loan Agreement (as described below) will be adequateto satisfy our expected liquidity requirements through the next twelve months. Without derogating from the foregoing estimate regardingour existing capital resources and cash flows from operations, we may decide to raise additional funds in 2022. We believe that, if required,we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity beyond the next twelvemonths.

Our future capital requirementswill depend on many factors, including our revenue growth, the timing and extent of investments to support such growth, the expansionof sales and marketing activities, increases in general and administrative costs and many other factors as described under “RiskFactors.”

To the extent additionalfunds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that they willbe obtained through the incurrence of additional indebtedness, additional equity financings or a combination of these potential sourcesof funds; however, such financing may not be available on favorable terms, or at all. In particular, the widespread COVID-19 pandemichas resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital.If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adverselyaffected.

Loan and Security Agreement

On February 19, 2017, we and Beamr, Inc., our wholly owned subsidiary,entered into a Loan Agreement, or the 2017 Loan Agreement, with SVB under which we had a right to borrow from SVB up to $3 million bearinginterest at a floating per annum rate equal to the Wall Street Journal Prime Rate plus 3.5% (upon occurrence of an ‘default event’as defined in the Loan Agreement, the principal amount shall bear interest at a rate per annum which is 5% above the rate that is otherwiseapplicable thereto) which shall be payable monthly. In June 2018, we subsequently drew down a cash amount in the aggregate principal amountof $3 million, or the 2017 Loan, payable in 36 equal installments on a monthly basis commencing the following month after draw down. Asof February 22, 2022, the principal outstanding amount under the 2017 Loan is $0.3 million. The Loan is sometimes referred to herein asa “straight loan”.

In connection with the executionof the 2017 Loan Agreement, we issued to SVB a 15-year warrant to purchase (i) 205,200 Series C Convertible Preferred Shares at an exerciseprice of $1.024 per share or (ii) 205,200 shares to be issued in the ‘next round’ at an exercise price equal to the lowestprice per share at which we will sell and issue shares of the next round shares.

To secure our obligationsunder the 2017 Loan Agreement, we provided a fixed and floating collateral on all our assets.

On April 15, 2020, we signeda deferral agreement in connection with the 2017 Loan Agreement with SVB according to which it was agreed that the original monthly repaymentdate for the principal due from May 2020 to October 2020 shall be extended by a period of six months commencing November 2020.

In addition, on April 29,2021, or the Deferral Effective Date, we signed a second deferral agreement in connection with the 2017 Loan Agreement with SVB accordingto which it was agreed that the original monthly repayment date for the principal due from May 2021 to October 2021 shall be extendedby a period of six months commencing November 2021. In consideration, we agreed to (i) pay to SVB a total deferral facility fee equalto $50, which fee shall be fully earned at the Deferral Effective Date, and payable in 10 monthly equal installments over the period commencingApril 29, 2021 through January 29, 2022; (ii) reimburse SVB for all reasonable legal fees and expenses incurred in connection with thedeferral agreement and (iii) issue to SVB a 15-year warrant to purchase 48,820 shares exercisable at an exercise price of $1.024 per share(subject to standard adjustments) into either Series C Preferred Shares or a class of securities sold and issued by us in the next equityfinancing round. Furthermore, if SVB exercises the warrant and the warrant value (as determined in the warrant) is lower than $50,000,then immediately following such exercise, we are required to pay the holder an amount equal to the difference between the $50,000 andthe warrant value.

On February 17, 2022 we entered into a second Loan and Securities Agreement,or the 2022 Loan Agreement providing a credit line against our accounts receivables. According to the 2022 Loan Agreement, commencingas of August 1, 2022 through December 31, 2022, SVB may, in its sole discretion in each instance, pursuant to our request, finance specificeligible account receivables of ours, as determined in the 2022 Loan Agreement, in a total amount equal to the face amount of the eligibleaccount receivable multiplied by a rate of 80%, subject to reduction by SVB in its discretion, or the Advance, provided that the aggregateamount of all outstanding Advances shall not exceed the lesser of (i) an aggregate principal amount equal to $350,000, or the RevolvingLine, or (ii) 80% of all eligible account receivables minus the sum of all outstanding principal amounts of any Advances, subject to reductionby SVB in its discretion. The outstanding principal amount of any Advance shall accrue interest at a floating rate per annum equal tothe greater of (i) 8.25% and (ii) a floating per annum rate equal to the Wall Street Journal Prime Rate plus 5% (upon occurrence of a'default event' as defined in the 2022 Loan Agreement, the aggregate loan principal amount shall bear interest at a rate per annum whichis 5% above the rate that is otherwise applicable thereto). Interest on the principal amount of each Advance will be payable in monthlyarrears (i) on each the last day of each month and (ii) on December 31, 2022, or the Revolving Line Maturity Date. The security interestgranted in the 2022 Loan Agreement shall at all times continue to be a first priority perfected security interest in the collateral anda first priority fixed and floating charges as set forth in the 2017 Loan Agreement.

Upon making of the initialAdvance, we agreed to issue to SVB a warrant to purchase (i) 23,921 Series C Convertible Preferred Shares, or (ii) ordinary shares inthe event that we have listed its securities for trading on Nasdaq, or (iii) upon SVB’s written irrevocable election in its solediscretion, the same class and series, or other designation, of convertible preferred share or other senior equity security sold and issuedby us in the next equity financing over a 15-years period commencing the issuance date of such warrant, at an exercise price of $1.024per share, provided that if the class is the next equity financing securities, then the exercise price shall be the lowest price per sharefor which next equity financing securities are sold or issued by us.

Cash Flows

The following table summarizesour cash flows for the periods presented:

Net cash used in operatingactivities

For the year ended December31, 2021, net cash provided by operating activities was mainly due to a net loss of $1 million and $0.1 million of forgiveness ofloan under a paycheck protection program note, which was offset by $0.2 million of depreciation and amortization, $0.2 million of share-basedcompensation, $0.01 million of amortization of discount relating to our loan from SVB, $0.3 million of change in the fair value of convertibleadvanced investments, $0.1 million of modification of terms of our loan from SVB, $0.7 million change in trade receivables and $0.2 millionchange in other working capital items as shown in the condensed consolidated statement of cash flows of the interim financial statements.

For the year ended December31, 2020, net cash used in operating activities was mainly due to a net loss of $2.4 million, which was offset by $0.6 million ofdepreciation and amortization, $0.1 million of share-based compensation, $0.02 million of amortization of discount relating to our loanfrom SVB, $0.4 million of change in the fair value of convertible advanced investments and $0.1 million of change in other working capitalitems as shown in the consolidated statement of cash flows of the annual financial statements.

Investing Activities

For the years ended December31, 2021 and 2020, the change in net cash used in investing activities was immaterial.

Financing Activities

Net cash used in financingactivities of $0.1 million for the year ended December 31, 2021 was related to repayment of a straight loan and facility fees of $0.5million and deferred offering costs of $0.2 million and offset by proceeds received from a paycheck protection program note of $0.05 millionand proceeds received from issuance of convertible advanced investments of $0.6 million.

Net cash used in financingactivities of $0.4 million for the year ended December 31, 2020 was related to repayment of our loan from SVB of $0.5 million and offsetby proceeds received from a paycheck protection program note of $0.07 million and proceeds received from exercise of share options intoshares of $0.01 million.

Off-Balance Sheet Arrangements

We did not have any off-balancesheet arrangements as of December 31, 2020 and December 31, 2021.

Internal ControlOver Financial Reporting

Prior to our initial publicoffering, we have been a private company with limited accounting and financial reporting personnel and other resources to address ourinternal controls and procedures. In connection with the audit of our consolidated financial statements as of December 31, 2020 and2021, we identified control deficiencies in our financial reporting process that constitute a material weakness for the years ended December31, 2020 and 2021. The material weakness related to lack of sufficient internal accounting personnel, segregation of duties, and lackof sufficient internal controls (including IT general controls, entity level controls and transaction level controls).

Asdefined in the standards established by the Public Company Accounting Oversight Board of the United States, a “material weakness”is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timelybasis.

Followingthe completion of this offering, we expect to take a number of measures to address the internal control deficiencies that have been identifiedincluding expanding our existing accounting and financial reporting personnel, establishing effective monitoring and oversight controlsand engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley compliance requirements and improvement of overallinternal controls. However, we cannot assure you that these measures may fully address the material weaknesses in our internal controlover financial reporting or that we may conclude that they have been fully remediated.

Weexpect to complete our remediation plan within the next 12 months. However, we have not tested the effectiveness of our internal controlover financial reporting and cannot assure you that we will be able to successfully remediate this material weakness and, even if wedo, we cannot assure you that we will not suffer from other material weaknesses in the future. Except for additional personnel costs,the cost of systems and the costs of our third-party service providers, we do not expect to incur any material costs related to our remediationplan.

Theprocess of designing and implementing an effective financial reporting system is a continuous effort that requires us to anticipate andreact to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a financialreporting system that is adequate to satisfy our reporting obligation. See “Risk Factors— Risks Related to this Offeringand Ownership of our Ordinary Shares— We have identified a material weakness in our internal control over financial reporting,and we may not be able to successfully implement remedial measures.”

Asa company with less than US $1.07 billion in revenue for our last fiscal year, we qualify as an “emerging growth company”pursuant to the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other requirements that areotherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement underSection 404 of the Sarbanes-Oxley Act of 2002, in the assessment of the emerging growth company’s internal control over financialreporting.

Critical Accounting Policies and Estimates

Use of Estimates

The preparation of financialstatements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reportedin the consolidated financial statements and accompanying notes. Our management believes that the estimates, judgment and assumptionsused are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financialstatements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

We believe that the accountingpolicies described below require management’s most difficult, subjective or complex judgments. Judgments or uncertainties affectingthe application of these policies may result in materially different amounts being reported under different conditions or using differentassumptions. Accordingly, we believe these are the most critical to aid in fully understanding and evaluating our financial conditionand results of operations. See Note 2 to the audited consolidated financial statements included elsewhere in this prospectus for additionalinformation regarding these and our other significant accounting policies.

Share-based compensation

Service-based awards

We account for share-basedcompensation in accordance with ASC 718, “Compensation - Stock Compensation”, or ASC 718, which requires companies to estimatethe fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the awardis recognized as an expense over the requisite service periods by applying the straight-line method in our consolidated statements ofcomprehensive loss.

We selected the Black-Scholesoption-pricing model as the most appropriate fair value method for its option awards. The Black-Scholes option-pricing model requiresthe input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected volatility of theprice of our ordinary shares, the expected term of the option, risk-free interest rates and the expected dividend yield of our ordinaryshares. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions are estimatedas follows:

Key Assumptions

Ordinary shares valuation

The fair value of ordinaryshares was determined by our board of directors, with input from management, and taking into account the most recent valuation from anindependent third-party valuation specialist. These valuations were determined in accordance with the guidelines outlined in the AmericanInstitute of Certified Public Accountants Accounting and Valuation Guide: Valuation of Privately-Held-Company Equity Securities Issuedas Compensation. The assumptions we used in the valuation models were based on future expectations combined with management judgment.Numerous objective and subjective factors were considered in the determination of the fair value of our ordinary shares as of the dateof each option grant, including the following factors:

In valuing our ordinary shares,absent an arm’s-length current/recent round of financing, the fair value of our business, or equity value, was determined usingboth the income approach and market approach.

The income approach estimatesvalue based on the expectation of future cash flows that we will generate. These future cash flows are discounted to their present valuesusing a discount rate based on the capital rates of return for comparable publicly traded companies and are adjusted to reflect the risksinherent in our cash flows relative to those inherent in the companies utilized in the discount rate calculation.

The market approach estimatesvalue based on a comparison of us to comparable public companies in a similar line of business. From the comparable companies, representativemarket value multiples are determined and then applied to our financial results to estimate our value.

The resulting equity valuewas then allocated to each share class using an OPM. Under the OPM, preferred and ordinary shares are treated as a series of call options,with the preferred shares having an exercise price based on the liquidation preference of the respective preferred share. The OPM operatesthrough a series of Black-Scholes-Merton option pricing models, with the exercise prices of the options representing the upper and lowerbounds of the proceed ranges that a security holder would receive upon a liquidity event. The strike prices occur at break points wherethe allocation of firm value changes among the various security holders. The ordinary shares are presumed to have value only if fundsavailable for distribution to shareholders exceed the value of the respective liquidation preferences at the time of a liquidity event.

For each valuation date,after the ordinary shares value was determined, a discount for lack of marketability, or DLOM, was applied to arrive at the fair valueof the ordinary shares on a non-marketable basis. A DLOM is applied in order to reflect the lack of a recognized market for a closelyheld interest and the fact that a non-controlling equity interest may not be readily transferable. A market participant purchasing thisshare would recognize this illiquidity associated with the shares, which would reduce the overall fair value. The discount for lack ofmarketability was determined using a put option as a proxy for measuring discounts for lack of marketability of securities.

We also considered any secondarytransactions involving our capital shares. In our evaluation of those transactions, we considered the facts and circumstances of eachtransaction to determine the extent to which they represented a fair value exchange. Factors considered include:

Application of these approachesinvolves the use of estimates, judgments, and assumptions that are highly complex and subjective, such as those regarding our expectedfuture revenue, expenses, future cash flows, discount rates, market multiples, the selection of comparable companies, and the probabilityof possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impactour valuations as of each valuation date and may have a material impact on the valuation of our ordinary shares.

Recent Accounting Pronouncements

Please see Note 2V to ourconsolidated annual financial statements included elsewhere in this prospectus for information regarding recent accounting pronouncements.

Jumpstart Our Business Startups Act of 2012

Under the JOBS Act, an “emerginggrowth company” can take advantage of an extended transition period for complying with new or revised accounting standards. Thisprovision allows an “emerging growth company” to delay the adoption of new or revised accounting standards that have differenttransition dates for public and private companies until those standards would otherwise apply to private companies. Although we meetthe definition of an “emerging growth company” and we have elected not to use this extended transition period for complyingwith new or revised accounting standards.

Quantitative and Qualitative Disclosures aboutMarket Risk

We are exposed to marketrisk from changes in exchange rates, interest rates and inflation. All of these market risks arise in the ordinary course of business,as we do not engage in speculative trading activities. The following analysis provides additional information regarding these risks.

Foreign Currency andExchange Risk

Our functional currency andall of our subsidiaries all of which are primarily a direct and integral component of our operation is the U.S. dollars, as the U.S. dollarsis the primary currency of the economic environment in which us and our subsidiaries have operated (which is the currency of the environmentin which an entity primarily generates cash) and expects to continue to operate in the foreseeable future. Our sales are mainly denominatedin U.S. dollars. A significant portion of our operating costs are in Israel and in Russia, consisting principally of salaries and relatedpersonnel expenses, and facility expenses, which are denominated in NIS and RUB. This foreign currency exposure gives rise to market riskassociated with exchange rate movements of the U.S. dollar against the NIS and RUB. Furthermore, we anticipate that a significant portionof our expenses will continue to be denominated in NIS and RUB. We do not hedge against currency risk. A hypothetical 10% change in foreigncurrency exchange rates applicable to our business would have had an impact on our results for the year ended December 31, 2020 and theyear ended December 31, 2021 of $0.2 million and $0.2 million, respectively, due to NIS, and $0.1 million and $0.1 million, respectively,due to RUB. 

Interest Rate Risk

As of December 31, 2020 andDecember 31, 2021, we had outstanding floating rate debt obligations of $1 million and $0.5 million, respectively (consisting, in eachcase, of the outstanding principal balance under our credit facilities). Accordingly, fluctuations in market interest rates may increaseor decrease our interest expense which will, in turn, increase or decrease our net income and cash flow. We seek to manage exposure toadverse interest rate changes through our normal operating and financing activities. At this time, we do not use derivative instrumentsto mitigate our interest rate risk. A hypothetical 10% change in interest rates during the periods presented would have resulted in achange to interest expense of $0.01 million for the year ended December 31, 2020 and $0.005 million for the year ended December 31, 2021.

Impact of Inflation

While it is difficult toaccurately measure the impact of inflation due to the imprecise nature of the estimates required, we do not believe inflation has hada material effect on our historical results of operations and financial condition. However, if our costs were to become subject to significantinflationary pressures, we may not be able to fully offset higher costs through price increases or other corrective measures, and ourinability or failure to do so could adversely affect our business, financial condition and results of operations.

BUSINESS

Overview

We are a leading innovatorof video encoding, transcoding and optimization solutions that enable high quality, performance, and unmatched bitrate efficiency forvideo and images. With our Emmy®-winning patented technology and award-winning services, we help our customers realize the potentialof video encoding and media optimization to address business-critical challenges. Our customers include tier one OTT, content distributors,video streaming platforms, and Hollywood studios who rely on our suite of products and expertise to reduce the cost and complexity associatedwith storing, distributing and monetizing video and images across devices.

At the heart of our patentedoptimization technology is the proprietary Beamr quality measure, or BQM, that is highly correlated with the human visual system. BQMis integrated into our content adaptive bitrate, or CABR, system which together maximizes quality and removes visual redundancies resultingin a smaller file size. The BQM has excellent correlation with subjective results, confirmed in testing under ITU BT.500, an internationalstandard for rigorous testing of image quality. The perceptual quality preservation of CABR has been repeatedly verified using largescale crowd-sourcing based testing sessions, as well as by industry leaders and studio “golden eyes”.

We currently license threecore video and image compression products that help our customers use video and images to further their businesses in meaningful ways:(1) a suite of video compression software encoder solutions including the Beamr 4 H.264 encoder, Beamr 4X H.264 content adaptive encoder,Beamr 5 HEVC encoder and the Beamr 5X HEVC content adaptive encoder, (2) Beamr JPEGmini photo optimization software solutions for reducingJPEG file sizes, and (3) Beamr Silicon IP block, a hardware solution for integration into dedicated video encoding ASICs, GPUs, and applicationprocessors.

Our current product line ismainly geared to the high end, high quality media customers and we count among our enterprise customers Netflix, Snapfish, ViacomCBS,Wowza, Microsoft, VMware, Genesys, Deluxe, Vimeo, Encoding.com, Citrix, Walmart, Photobox, Antix, Dalet, and other leading media companiesusing video and photo solutions. Due to the high cost and complexity of deploying our existing software solutions and the long sales leadtimes, we have a made a strategic decision to focus our resources on the development and commercialization of our next-generation product,the Beamr HW-Accelerated Content Adaptive Encoding solution, a SaaS solution that is designed, based on our own internal testing, to beup to 10x more cost efficient than our existing software-based solutions, resulting in reduced media storage, processing and deliverycosts.

We are currently collaboratingwith NVIDIA, a multinational technology company and a leading developer of GPUs, with an annual revenue of $26.9 billion for the fiscalyear 2022, to develop the Beamr HW-Accelerated Content Adaptive Encoding solution, the world’s first GPU accelerated encoding solutionpowered with our CABR, which will allow fast and easy end-user deployment combined with superior video compression rates. Upon completion,our CABR software will execute directly on NVIDIA GPU cores and interact with the NVIDIA video accelerator encoder known as NVENC. NVIDIANVENC is a high-quality, high-performance hardware video encoder that is built into most NVIDIA GPUs. NVENC offloads video encoding tohardware, and provides extreme performance for applications such as live video encoding, cloud gaming and cloud storage. NVIDIA GPUs withNVENC are available on all major cloud platforms.

We expect the first version of the integrated video optimization engineto be ready by the end of the second quarter of 2022. Following this, we plan to build out the cloud based SaaS platform and test it withbeta customers in the fourth quarter of 2022. Following that, we plan to commercially launch the first release of our cloud based BeamrHW-Accelerated Content Adaptive Encoding solution in the second quarter of 2023 and expect that following release, end-users of the solutionwill enjoy significant end-user storage cost savings. Using the Beamr HW-Accelerated Content Adaptive Encoding solution will potentiallyreduce their return on investment for storage optimization to approximately four months, compared to approximately two years with ourexisting software encoder solutions.

Our Business Strengths

We believe that the followingbusiness strengths differentiate us from our competitors and are key to our success:

Our Market Opportunity

According to Fortune BusinessInsights, the global cloud video storage market is projected to grow from $7.3 billion in 2021 to $13.5 billion in 2025 and to $20.9billion by 2028, at a compound annual growth rate, or CAGR, of 16% during the forecast period.

The fact that the video datais often required to be stored and accessed forever cannot be ignored for long periods. This brings about the problem of lifetime costsassociated with the efficient storing and managing of data. While the upfront cost might appear manageable but over a period, the risein data volumes might require organizations to result in the need to pay more in the future to keep the data in the cloud. In today’senvironment, with deployment of media and entertainment, user generated content, enterprise video, agricultural technology, or AgTech,and industrial solutions, autonomous vehicles, surveillance and smart cities, we believe that the usage of video and its storage on publiccloud platforms is expected to increase exponentially and we believe existing solutions are not suitable for large volume storage optimization.

Our Growth Strategies

We intend to pursue the following growth strategies:

Our CABR System

At the heart of our patentedoptimization technology is the proprietary BQM, a novel, efficient and reliable quality evaluation algorithm which is highly correlatedwith the human vision system. The CABR technology, with the BQM at its core, allows encoders to make smarter, quality driven, encodingdecisions. CABR is a closed-loop content-adaptive rate control mechanism enabling video encoders to lower the bitrate of their encode,while simultaneously preserving the perceptual quality of the higher bitrate encode. An integrated CABR encoding solution consists ofa video encoder and the CABR rate control engine. The CABR engine comprises the CABR control module responsible for managing the optimizationprocess and a module which evaluates video quality. The video encoder first encodes a frame using a configuration based on its regularrate control mechanism, resulting in an initial encode. Then, Beamr’s CABR rate control instructs the encoder to encode the sameframe again with various values of encoding parameters, creating candidate encodes. Using the BQM, each candidate encode is comparedwith the initial encode, and then the best candidate is selected and placed in the output stream. The best candidate is the one thathas the lowest bitrate but still has the same perceptual quality as the initial encode. Due to very efficient control algorithms, onlyapproximately 1.5-2 iterations are required on average to find the best candidate. Combined with the real-time oriented design of BQM,and the possibility to reuse encoding decisions from the initial encode, the impact on overall performance is quite manageable.

The following is a depictionof the CABR system showing how the BQM interacts with a video encoder.

In testing, BQM demonstratedhigher correlation with subjective results than other quality measures such as PSNR and SSIM. In user testing, under ITU BT.500, an internationalstandard for testing image quality, the correlation of our BQM with subjective (human) results was very high.

Beamr’s CABR technologywas integrated as a new rate control mechanism into our software H.264 and HEVC encoders. With regular VBR encoding, the user of theencoder sets a target bitrate, and the resulting bitrate of the encoded video will be that target bitrate. With CABR encoding, the useralso sets a target bitrate, but the resulting bitrate of the encoded video will be lower than that target. The video will be encodedto the lowest possible bitrate that is still perceptually identical to a VBR encode at that target bitrate. CABR with BQM can also beused to optimize an input video stream, by removing redundancies and creating an equivalent, lower bitrate, perceptually identical outputvideo stream.

As seen in the two graphsbelow, for VBR encoding the actual average bitrate of the encoded clip is very similar to the requested target bitrate. For CABR encoding,the actual bitrate of the encoded clips is lower than the requested target bitrate. The difference between the requested target bitrate(dotted line) and the actual encoded CABR bitrate (blue line) is the bitrate savings. As seen in the graphs, the bitrate savings increaseas the target bitrate increases, since for higher target bitrates there is more redundancy present in the encoded stream, redundancywhich CABR removes.

Ultimately, Beamr’s CABR system enables the bitrate of videofiles to be reduced by up to 50% over the current state of the art standard compliant block based encoders, without compromising imagequality, bitstream standard compliance or changing the artistic intent. We believe that a source video and a Beamr-optimized video viewedside-by-side will look exactly the same to the human eye.

Beamr has integrated theCABR engine into its AVC software encoder, Beamr 4, and into its HEVC software encoder, Beamr 5. Similarly, the CABR engine can be integratedwith any software or hardware video encoder, supporting any block-based video standard such as AVC, HEVC, and AV1. In addition,CABR with BQM can be used to optimize an input video stream, by removing redundancies and creating an equivalent, lower bitrate, perceptuallyidentical output video stream.

Our Product Offerings

Our Next-Generation SaaS Product: Beamr HW-Accelerated ContentAdaptive Encoding

We are currently collaboratingwith NVIDIA, a leading developer of GPUs, to develop the world’s first GPU accelerated encoding solution that would allow fast andeasy end-user deployment combined with superior video compression rates powered with our CABR rate control and BQM quality measure.

Our BQM quality measure softwarewill execute directly on NVIDIA GPU cores and interact with the NVIDIA video accelerator encoder known as NVENC. NVIDIA NVENC is a high-quality,high-performance hardware video encoder that is built into most NVIDIA GPUs. NVENC offloads video encoding to hardware, and provides extremeperformance for applications such as live video encoding, cloud gaming and cloud storage. NVIDIA GPUs with NVENC are available on allmajor cloud platforms.

Our current product lineof CABR software encoders run on the CPU. In proof of concept tests with both Intel and NVIDIA, we have demonstrated that when our CABRis offloaded from the CPU to the GPU, the cost/performance ratio is up to 10x better than on the CPU.

To accommodate Beamr’s content-adaptiveGPU accelerated encoding solution, NVIDIA is currently modifying the API of the NVENC,. We are also porting the CABR to run on the GPUand when the modified API is made public we will be able to use the NVENC as the video encoder for CABR, offloading CABR-based video encodingfrom the CPU to the GPU enabling low-cost, high resolution, real time CABR encoding.

Upon release, we believethe Beamr HW-Accelerated Content Adaptive Encoding solution will provide a simple, easily deployable, fast, scalable, low cost and best-in-classvideo optimization solution resulting in reduced media storage, processing and delivery costs. We initially plan to offer our Beamr HW-AcceleratedContent Adaptive Encoding solution as a SaaS offering through public cloud data services that utilize NVIDIA GPUs (e.g., AWS, MicrosoftAzure, GCP) allowing us to potentially access and acquire large numbers of new customers with relatively low sales investment.

We initiated thecollaboration with NVIDIA on developing the Beamr HW-Accelerated Content Adaptive Encoding solution in January 2021. Ourcollaboration with NVIDIA is based on a mutual development program that is in advanced stages and that has been approved at seniorlevels at NVIDIA. While our collaboration has not been reduced to a written agreement, we believe that NVIDIA has a commercialincentive to complete the development and deploy the software update that enables the CABR powered NVENC because of the superiorvideo compression rates of the NVENC when combined with our CABR solution. Since commencing the collaboration, we have successfullycompleted the following steps: (i) demonstrated proof of concept; (ii) jointly defined the required frame-level APIs that enable ourCABR system to determine the optimal tradeoff between bitrate and quality; (iii) NVIDIA has approved the plan of record; (iv) NVIDIAcompleted delivery of the first version of the APIs; and (v) we verified implementation of the APIs that result in significantreduction of the bitrate of video streams.

With the completion of the foregoing steps, we expect the first versionof the integrated video optimization engine to be ready by the end of the second quarter of 2022. Following this, we plan to build outthe cloud based SaaS platform and test it with beta customers in the fourth quarter of 2022. Following that, we plan to commercially launchthe first release of our cloud based Beamr HW-Accelerated Content Adaptive Encoding solution in the second quarter of 2023 and expectthat following release, end-users of the solution will enjoy significant end-user storage cost savings. Using the Beamr HW-AcceleratedContent Adaptive Encoding solution will potentially reduce their return on investment for storage optimization to approximately four months,compared to approximately two years with our existing software encoder solutions.

Below is a depiction of howwe expect the end-user dashboard of the Beamr HW-Accelerated Content Adaptive Encoding to look.

Following integration intothe NVIDIA GPU, we believe the Beamr HW-Accelerated Content Adaptive Encoding solution will provide the following key benefits including:

Using our content adaptive bit ratesolution, we estimate end users will be able to save an average of 30% in their cost of video public cloud storage, which, based on 2020amounts, according to Fortune Business Insights, currently stands at $6 billion.

Video Compression Software Encoder Solutions

Beamr 4 AVC Encoder

Beamr4 is our fully standardcompliant AVC (H.264) video encoder. This encoding standard is still the primary format used in video applications across the market.While the decoder and bitstream are fully defined by the standard, video coding standards do not define the encoder, and this is completely upto the implementation ingenuity. At Beamr we have spent many years perfecting our encoder, resulting in an efficient, high performance,high quality AVC encoder, which enables using less computation to achieve the same compression efficiency as competing implementations.(Compression efficiency is defined by how much you can compress the video to obtain a target quality, or vice-versa, what quality canbe obtained at a specified bitrate, The higher the compression efficiency, the less bits are needed for a certain quality level). Beamr4has an extensive API enabling deep control of the encoder configuration to maximize the benefit for each and every application or usecase, and our support team is available to help users find the best setup for their specific needs.

Beamr 5 HEVC Encoder

Beamr5 is our fully standardcompliant HEVC (H.265) video encoder. This encoding standard is the primary format used today for high resolution (4K, 8K) and premiumquality encoding of 10 and 12 bit and High-Dynamic-Range content. Once again, only the decoder and bitstream are defined by the standard,and encoders can differ quite significantly in how well they perform the encoding and utilize the advanced tools availablein HEVC to obtain maximum compression efficiency without incurring prohibitive performance costs. An important factor in supporting liveencoding is to be able to reach very good parallelization of the encoding tasks. This is not easy in video encoding which is very serial,and unevenly distributed by nature. At Beamr we have developed a unique architecture for the encoder, which enables very efficient deepparallelization making the best concurrent use of all available cores, enabling the world’s first live 8K HEVC encoder. In addition,Beamr5 is one of the few HEVC codecs that has wide support for HDR and can be used in conjunction with Dolby Vision, HDR10 and HLG -various HDR formats used around the globe. Beamr5 also has an extensive API enabling deep control of the encoder configuration to maximizethe benefit for each and every application or use case, and our support team is always available to help users find the best setupfor their specific needs.

Beamr 4X AVC ContentAdaptive Encoder

Beamr4x is achieved byadding our Content Adaptive Bit-Rate rate control, to Beamr4. Video encoders generally operate either in a bit-rate driven mode,such as VBR (Variable Bit-Rate), or in a quality driven mode. The new mode introduced in Beamr4x, enables encode that is bit-rate driven,but where any bits that are redundant for the perceptual quality of the video are swiftly removed. This is done by first compressingthe video frame according to the bit-rate considerations. Then, for each frame, more aggressive compression is applied, reducing theframe size in bits to the maximal extent that is possible without compromising perceptual quality of this video frame.This is done using our novel, award winning quality measure, which can reliably report the perceptual quality of the reducedsize frame, relative to the initial encode, and make sure we get to the best compression point. While this may sound like a difficultproblem to solve for each frame, using our sophisticated search algorithm, we actually guess the correct compression point on the firsttry more often than not, and on average require less than two attempts per frame. The resulting bitstream has the same perceptual qualityas the VBR encode to target bitrate would have, while offering significant bitrate savings for many use cases.

Beamr 5X HEVC Content Adaptive Encoder

Similarly, Beamr 5x combinesBeamr 5 with CABR, enabling HEVC encoding with significant bitrate savings.

JPEGMini Photo Optimization Solutions

JPEGmini is a patented photorecompression technology, which significantly reduces the size of photographs without affecting their perceptual quality. JPEGmini isfully compliant with the JPEG standard, resulting in files that are fully compatible with any browser, photo software or device thatsupport the standard JPEG format.

JPEGmini is capable of reducingthe file size of standard JPEG photos by up to 50%, while the resulting photos are visually identical to the original photos. The JPEGminialgorithm imitates the perceptual qualities of the human visual system, ensuring that each photo is compressed to the maximum extentpossible by removing redundancies, without creating any visual artifacts in the process. This enables fully automatic, maximal compressionof photos with no human intervention required. JPEGmini has also been successfully tested with artificial intelligence/machine learningimage sets in which a reduction of storage cost of up to 50% was obtained, without compromising classification and detection accuracy.

Silicon IP

Our CABR technology, whichhas been integrated with Beamr software codecs to create Beamr4x and Beamr5x, has also been implemented as a silicon IP design, whichcan be integrated with any HW video encoder. This enhances the encoder by providing the additional, bitrate saving, encoding mode.

We are currently collaboratingwith Allegro DVT, a leading provider of video processing silicon IPs, to create the world’s first content-adaptive silicon IP encoder.By integrating our CABR silicon IP library with Allegro’s E2xx family of silicon video encoders, we aim to bring the optimizationbenefits to ASIC providers so they will be able to create high-performance, low latency video encoding chips that significantly reducevideo bitrate without compromising quality.

The Allegro DVT E2xx/BeamrCABR solution is currently in the proof of concept stage of development and we expect that its development will take at least two yearsuntil a commercial version of the solution will be available for release.

Sales and Marketing

As of February 22, 2022,we have four full time sales and marketing employees and consultants, whose focus is to work together to accelerate the adoption of ourexisting products, to drive awareness and increase brand recognition of our products and technologies, to improve new customer acquisitionsand to increase revenue from our existing customers.

Forour next-generation Beamr HW-Accelerated Content Adaptive Encoding solution, we plan tolaunch our solution on the largest cloud platform, AWS, and after initial deployment on AWS to integrate our solution both with Azureand GCP. Since NVIDIA GPUs are widely adopted by cloud platforms, we believe that by making the Beamr HW-Accelerated Content AdaptiveEncoding solution on cloud platforms will allow us to potentially access and acquire large numbers of new customers with relativelylow sales investment through a self service, online sales process, with low touch pay as you go subscription service to our SaaS solution.

In addition, since the BeamrHW-Accelerated Content Adaptive Encoding solution is designed to be deployable across all environments, including public cloud, privatecloud, on-premise and multi-cloud hybrid environments, we intend to focus our direct sales efforts on particular vertical markets thatstore large amounts of video including internet of things (IoT), smart cities, surveillance, autonomous cars, AgTech, and medical imaging.

Weprimarily market and license directly our existing products to media customers through outbound sales networking and customer and partnerreferrals. Our direct customers include category leaders such as Netflix, Snapfish, ViacomCBS,Wowza and Encoding.com. Our sales cycles for our existing products typically require a significant investment of time and a substantialexpenditure of resources before we can realize revenue from the sale of our solutions, if any. Our typical sales cycle consists of amulti-month sales and development process involving our customers’ system designers and management and our sales personnel andsoftware engineers. If successful, this process culminates in a customer’s decision to use our solutions in its system, which werefer to as an account win.

We focus our marketing effortson the strength of our product and technology innovation, the value we provide and our domain expertise. We target the video engineeringand information technology (IT) operations community through our marketing activities, using diverse tactics to connect with prospectivecustomers, such as content marketing, events, social media, and public relations.

Weintend to continue to invest in our sales and marketing capabilities to capitalize on our market opportunity.

Weenter into written contracts with our customers pursuant to which we license the rights to use our software and provide maintenance andtechnical support. Our contracts are generally for one to three-year terms, with automatic renewal terms of one year terms. Some of ourcontracts are on a perpetual basis. We bill most of our customers annually in advance for the fees associated with the software licensesand related support. Some of our customers are billed on a quarterly basis.

Research and Development

Our research and developmentteam is responsible for the design, development, testing and delivery of new technologies, features and integrations of our solutions,as well as the continued improvement and iteration of our existing products. It is also responsible for operating and scaling our solutionsincluding the underlying infrastructure. Our research and development investments seek to drive core technology innovation and bringnew products to market.

Members of our researchand development team specialize in many functional areas including algorithms, machine learning, and electrical engineering as well ascomputer science. As we shift our focus to a SaaS based cloud service offering, we intend to make significant investments in a cloud-optimizeddelivery model while continuing to invest in our software offerings, both for standalone consumption and for deployment in hybrid environments.

Our main research and developmentfacility is located in central Israel, which we believe is a strategic advantage for us, allowing us to leverage a talented pool of engineersand product experts.

As of February 22, 2022, wehad 22 full-time employees dedicated to research and development. We have made substantial investments in product and technology developmentsince our inception. Research and development expense totaled $2.7 million and $2 million in the years ended December 31, 2020 and 2021,respectively. We expect our research and development expense to increase significantly for the foreseeable future as we enhance our existingproduct, develop new products for our current markets and introduce new products in new markets.

Acquisition

In2016, we acquired Vanguard Video, a provider of HEVC and H.264 codec technologies, which enabled us to integrate our CABR technologywith Vanguard Videos video encoders, which today are available as Beamr 4x and Beamr 5x.

Competition

While there are several companiesoffering video compression solutions such as MainConcept, Ateme and Ittiam and opensource (x264/x265), we believe there is currently no direct competitor with our content-adaptive video compression solutions.There are companies which offer software solutions for video optimization such as Harmonic and Elemental, and other companies offeringstorage optimization (but not involving video technologies) such as EMC and Seagate. In addition, for our quality measure, some of ourcurrent competitors include SSIMWave (SSIMPlus), Apple (AVQT), Google (YouVQ) and open source (VMAF). We operate in a highly specializedarea that is evolving very quickly with rapid developments. In the future, competitors could develop products or solutions that competewith our video compression solutions. For example, the public cloud platforms such as AWS, Azure and GCP could in the future developtheir own video optimization hardware accelerated solutions.

We believe the followingcompetitive attributes are necessary for our solutions to successfully compete in the video compression market:

We believe that we comparefavorably on the basis of the factors listed above. However, many of our competitors have substantially greater financial, technical,and marketing resources; relationships with large vendor partners; larger global presence; larger customer bases; longer operating histories;greater brand recognition; and more established relationships in the industry than we do. Furthermore, new entrants not currently consideredto be competitors may enter the market through acquisitions, partnerships, or strategic relationships. See “Risk Factors—RisksRelated to Our Business and Industry—We may not be able to compete successfully against current and future competitors, some ofwhom have greater financial, technical, and other resources than we do. If we do not compete successfully, our business, financial conditionand results of operations could be harmed.”

Intellectual Property

Intellectual property isan important aspect of our business and we seek protection for our intellectual property rights as appropriate. To establish and protectour proprietary rights, we rely on a combination of patent, copyright, trade secret and trademark laws, know-how and continuing innovation,and contractual restrictions such as confidentiality agreements, licenses, and intellectual property assignment agreements. We striveto protect the proprietary technologies that we believe are important to our business, including seeking and maintaining patent protectionintended to cover our system.

As of February 22, 2022, ourexclusively owned patent portfolio includes 51 issued patents, of which thirty three (33) are U.S. patents and eighteen (18) foreign patentshave been issued, and two (2) U.S. and three (3) foreign patent applications are pending. The claims of these owned patents and patentapplications are directed toward various aspects of our family of products, method of their manufacturing and research programs.

We pursue the registrationof our domain names that we consider material to the marketing of our products, including the beamr.com.

We generally seek to enterinto confidentiality agreements and proprietary rights agreements with our employees and consultants and to control access to, and distributionof, our proprietary information. However, we cannot guarantee that all applicable parties have executed such agreements. Such agreementscan also be breached, and we may not have adequate remedies for such breach.

Intellectual property laws,procedures, and restrictions provide only limited protection, and any of our intellectual property rights may be challenged, invalidated,circumvented, infringed, misappropriated or otherwise violated. Furthermore, the laws of certain countries do not protect intellectualproperty and proprietary rights to the same extent as the laws of the United States, and we therefore may be unable to protect our proprietarytechnology in certain jurisdictions. Moreover, our platform and many of our products and services incorporate software components licensedto the general public under open-source software licenses. We obtain some components from software developed and released by contributorsto independent open-source components of our platform. Open-source licenses grant licensees broad permissions to use, copy, modify andredistribute certain components of our platform. As a result, open-source development and licensing practices can limit the value ofour proprietary software assets.

Despite our efforts to protectour proprietary rights, unauthorized parties may attempt to copy or obtain and use our technology to develop products and services withthe same functionality as our platform. Policing unauthorized use of our technology is difficult. Our competitors could also independentlydevelop technologies like ours, and our intellectual property rights may not be broad enough for us to prevent competitors from sellingproducts and services incorporating those technologies. For more information regarding the risks relating to intellectual property, see“Risk Factors—Risks Related to Information Technology, Intellectual Property and Data Security and Privacy.”

Regulatory Environment

Weare subject to a number of U.S. federal and state and foreign laws and regulations that involve matters central to our business. Theselaws and regulations involve privacy, data protection, intellectual property, competition, consumer protection and other subjects. Manyof the laws and regulations to which we are subject are still evolving and being tested in courts and could be interpreted in ways thatcould harm our business. In addition, the application and interpretation of these laws and regulations are often uncertain, particularlyin the new and rapidly evolving industry in which we operate. Because global laws and regulations have continued to develop and evolverapidly, it is possible that we may not be, or may not have been, compliant with each such applicable law or regulation.

Employees

As of February 22, 2022, wehad eight employees in Israel, 18 employees who are employed by our wholly owned subsidiary in St. Petersburg, Russia and three employeeswho are employed by our wholly owned subsidiary in California, U.S. We are not bound by any collective bargaining agreements. We considerthe relationship with our employees to be good. We also use outside consultants and contractors with special expertise and skills forlimited engagements, including manufacturing and quality assurance.

Corporate History and Structure

Our legal and commercial nameis Beamr Imaging Ltd. We were incorporated in Israel on October 1, 2009 under the name I.C.V.T Ltd. On January 11, 2015, we changed ourname to Beamr Imaging Ltd.

We have two wholly ownedsubsidiaries: Beamr, Inc. and Beamr Imaging RU LLC. Beamr, Inc. is our wholly owned subsidiary incorporated in 2012 in the Stateof Delaware. Beamr, Inc. is engaged in reselling our software and products in the U.S. and Canada. Beamr Imaging RU LLC is our whollyowned subsidiary, a limited Russian partnership formed in 2016. Beamr Imaging RU LLC is engaged in research and development for us.

In addition, we previouslyhad a wholly owned subsidiary, Beamr UK Ltd, which was incorporated in 2017 in England. Beamr UK Ltd was engaged in reselling our softwareand products in the U.K. Beamr UK Ltd was dissolved in May 2020.

Facilities

Our principle executive officesare located in Herzliya, Israel and consist of approximately 300 square feet of office space. Our wholly owned Russian subsidiary operatesfrom a leased office located in St Petersburg, Russia. Our employees in our wholly owned US subsidiary operate primarily from their homeoffices. During 2020, we substantially reduced our office space globally and implemented working from home throughout the company.

We lease all of our facilitiesand do not own any real property. We intend to procure additional space in the future as we continue to add employees and expand geographically.We believe our facilities are adequate and suitable for our current needs and that, should it be needed, suitable additional or alternativespace will be available to accommodate our operations.

Legal Proceedings

We are not currently partyto any pending material legal proceedings. From time to time, we may become a party to litigation incident to the ordinary course ofour business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversionof management resources and other factors.

MANAGEMENT

Executive Officers and Directors

The following table setsforth information regarding our executive officers and directors, including their ages as of the date of this prospectus:

Sharon Carmel, Chief Executive Officer,Director

Sharon Carmel, 51,serves as our Chief Executive Officer and as the Chairman of the board of directors since he founded our company in October 2009. Priorto founding Beamr, Mr. Carmel is a serial entrepreneur with a proven track record in the software space. Prior to founding Beamr, inAugust 2002, Mr. Carmel co-founded, BeInSync, which developed P2P synchronization and online backup technologies. Prior to that, in January1994, Mr. Carmel co-founded Emblaze (LON: BLZ), a software company, which developed the Internet’s first vector-based graphicsplayer. Mr. Carmel received his training in computer science and software development during his mandatory military service in the IDF.

Danny Sandler, Chief Financial Officer

Danny Sandler, 36,serves as our Chief Financial Officer since December 2021. Mr. Sandler joined us in May 2020, and prior to his current role, served asour Director of Finance. Prior to joining us, between December 2014 and May 2020, Mr. Sandler served in various roles and, most recentlyas Assurance Manager, in the Hi-Tech and Life Science Practice at EY, a global accounting and consulting firm. Prior to that, betweenNovember 2011 and November 2014, Mr. Sandler was a finance associate at Seeking Alpha, a crowd-sourced content service for financialmarkets. Mr. Sandler holds a Bachelor’s degree in Economics and Accounting from Bar-Ilan University.

Tamar Shoham, Chief Technology Officer

Tamar Shoham, 47,serves as our Chief Technology Officer since November 2021. Mrs. Shoham is a leading imaging and video scientist, with over 20 years’experience in algorithm development and industry-oriented research, primarily in the field of video quality and compression. Mrs. Shohamjoined us in August 2009, and prior to her current role, served as our Vice President of Technology where she led our algorithm and intellectualproperty development. Prior to joining us, between 2006 and 2009, Mrs. Shoham was a research fellow at the NEGEV consortium, Signal andImage Processing Lab at the Technion Institute of Technology. Prior to that, between 1997 and 2005, Mrs. Shoham served as a digital signalprocessing algorithm developer at Comverse Ltd. Mrs. Shoham holds a Master’s degree in Electrical Engineering from the TechnionInstitute of Technology and a Bachelor’s degree in Electrical Engineering from Tel Aviv University.

Dan Julius, V.P. of Research and Development

Dan Julius, 45, servesas our Vice President of Research and Development. Mr. Julius brings more than two decades of experience in management and software development.Mr. Julius joined us in March 2011, and prior to his current role served as a team lead for our system overseeing design, development,and quality control. Prior to joining us, between February 2008 and May 2011, Mr. Julius was the co-founder and served as Chief TechnologyOfficer at Joliper Ltd. Prior to that, between February 2007 and February 2008, Mr. Julius served as a software developer and a team leaderat BeInSync Ltd., a software platform enabling users to backup, synchronize, share and access their files, documents and other data online.Prior to that, between November 2001 and August 2004, Mr. Julius served as a CAD engineer at Intel. Between February 1999 and August 2001,Mr. Julius served as a software developer and a team leader at TeleVend Inc. Mr. Julius holds a Master’s degree in Computer Sciencefrom the University of British Columbia and a Bachelor’s degree in Computer Science from Tel Aviv University.

Eliezer Lubitch, President, Beamr, Inc.

Eliezer Lubitch, 60,serves as the President of our subsidiary, Beamr, Inc. since 2011. Mr. Lubitch heads our U.S. operations, including sales, business development,new markets, and strategic partnerships. Prior to joining us, between 2008 and 2011, Mr. Lubitch served as Vice President of BusinessDevelopment and Brand Licensing at Eastman Kodak Company. Prior to that, between 2004 and 2007, Mr. Lubitch served as Vice President ofBusiness Development at Kodak Versamark Inc., a wholly owned subsidiary of Kodak. Between 1990 and 2003, Mr. Lubitch served in variousroles at Scitex Corporation, Ltd. (NASDAQ: SCIX), including Vice President of Business Development, Director of Business Development,Product Line R&D Manager, and software engineer. Mr. Lubitch was a seed investor in Tivella, Inc., a pioneering company of IPTV (acquiredby Cisco in 2007). Mr. Lubitch holds a Master’s degree in Business Administration from the Technion Institute of Technology, a Master’sdegree in Computer Science from Tel Aviv University, and a Bachelor’s degree in Mathematics and Computer Science from Hebrew University.

Tal Barnoach, Director

Tal Barnoach, 58,serves as a board member in our company since January 2014. Mr. Barnoach is a general partner at Disruptive VC, a venture capital fundsince July 2014 Disruptive Opportunity Fund since 2018 and Disruptive AI since 2020. Besides his role as a general partner in Disruptiveand serving as a board member of Beamr, Mr. Barnoach serves as a board member in several other technological companies like Idomoo, Anodot,Tailor Brands, Bit, Lumen, Deep, Replix, Qwilt, Minta and more. Over the last 20 years, Mr. Barnoach has founded and led companies suchas S.E.A. Multimedia (which went public in 1996), Orca Interactive (acquired by France Telecom in 2008), BeInsync (acquired by PhoenixTechnologies in 2008) and Dotomi (acquired by ValueClick in 2011). Mr. Barnoach holds a B.A. degree in economics from Tel Aviv University.

Lluis Pedragosa, Director

Liuis Pedragosa, 43,serves as a board member in our company since August 2016, and was appointed by our shareholder, Marker LLC. Since May 2018, Mr.Pedragosa is a managing partner and the Chief Financial Officer of Team8, a cybersecurity and fintech company creation platform and aventure capital fund. Prior to that, between December 2012 and April 2018, Mr. Pedragosa was a partner and founding team member at MarkerLLC, a venture capital firm with over $400 million under management. Besides his role in Team8 and serving as a board member of Beamr,Mr. Pedragosa serves as a board member in Screenz, and as a board observer in Overwolf Ltd. Mr. Pedragosa holds a Master’s degreein Business Administration from The Wharton School of the University of Pennsylvania, a Master’s degree in International Studiesfrom the University of Pennsylvania, and a Bachelor’s of science in Business Administration from ESADE Business School.

Yair Shoham, Director Nominee

Yair Shoham, 68, hasagreed to serve on our board of directors subject to the consummation of this offering. Mr. Shoham brings more than two decades of globalexperience in venture capital and is a serial entrepreneur with a track record in the software and hardware spaces. Prior to joining us,between 2018 and December 2021, Mr. Shoham served as Managing Director and Israel Country Manager at Intel Capital, the venture arm ofIntel Corporation. Prior to this role, between July 2012 and 2018, he served as Investment Director at Intel Capital. Prior to that, between1999 and 2012, Mr. Shoham served as General Partner at Genesis Partners, a leading early stage Israel-based venture capital firm. Duringhis career, Mr. Shoham has founded and led several companies such as VDOnet Corp. (acquired by Citrix Systems, Inc.), Butterfly VLSI Ltd.(acquired by Texas Instruments Incorporated), and RFWaves Ltd. (acquired by Vishay Intertechnology Inc.). Between 1995 and 2006, Mr. Shohamserved as an independent board member at M-Systems Ltd., until the company was acquired by SanDisk Corporation. Mr. Shoham holds a JurisDoctor degree from Loyola University School of Law and a Bachelor’s degree in psychology from the University of Haifa.

Osnat Michaeli, Director Nominee

Osnat Michaeli, 53,has agreed to serve on our board of directors subject to the consummation of this offering. Ms. Michaeli brings more than two decadesof global experience in finance and operations. Prior to joining us, between May 2019 and August 2021, Ms. Michaeli served as Chief FinancialOfficer at Twine Solutions Ltd, a leading digital thread-dyeing technology company. Between March 2017 and May 2019, Ms. Michaeli servedas Chief Financial Officer at Cardo Systems Ltd., a leading company for Bluetooth® and Dynamic Mesh Communication, and entertainmentsystems for motorcycle riders. Prior to that, between March 2011 and August 2015, Ms. Michaeli served as Chief Financial Officer at KornitDigital Ltd., an international manufacturing company, which produces high-speed industrial inkjet printers, pigmented ink, and chemicalproducts, where she held a key role in leading the company to its Initial Public Offering in, 2015 (NASDAQ: KRNT). Ms. Michaeli holdsa Bachelor’s degree in economics and a Master’s degree in Business Administration, both from Tel Aviv University.

Family Relationships

There are no family relationshipsbetween any members of our executive management and our directors.

Arrangements for Election of Directorsand Members of Management

Thereare no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any of our executivemanagement or our directors were selected. See “Certain Relationships and Related Party Transactions” for additional information.

Compensation

The following table presentsin the aggregate all compensation we paid to all of our directors and senior management as a group for the year ended December 31, 2021.The table does not include any amounts we paid to reimburse any of such persons for costs incurred in providing us with services duringthis period.

All amounts reported in thetable below reflect our costs in U.S. dollars. Amounts paid in NIS are translated into U.S. dollars at the average annual exchange rateof NIS 3.23 = U.S. $1.00, based on the average representative rate of exchange between the NIS and the U.S. dollar as reported by theBank of Israel during such period of time.

Forso long as we qualify as a foreign private issuer, we will not be required to comply with the proxy rules applicable to U.S. domesticcompanies regarding disclosure of the compensation of certain executive officers on an individual basis. Pursuant to the Companies Law,we will be required, after we become a public company, to disclose the annual compensation of our five most highly compensated officerson an individual basis. This disclosure will not be as extensive as that required of a U.S. domestic issuer. We intend to commence providingsuch disclosure, at the latest, in the annual proxy statement for our first annual meeting of shareholders following the closing of thisoffering, which will be filed under cover of a report on Form 6-K.

Employment Agreementswith Executive Officers

We have entered into writtenemployment or consulting agreements with each of our executive officers. All of these agreements contain customary provisions regardingnoncompetition, confidentiality of information and assignment of inventions. However, the enforceability of the noncompetition provisionsmay be limited under applicable law. In addition, we intend to enter into indemnification agreements, subject to the listing of our securitieson the Nasdaq Capital Market, with each executive officer, director, and director nominee pursuant to which we will indemnify each ofthem up to a certain amount and to the extent that these liabilities are not covered by directors and officers insurance.

Fora description of the terms of our options and option plans, see “Management—Share Option Plans” below.

Directors’Service Contracts

Other than with respect toour directors that are also executive officers, we do not have written agreements with any director providing for benefits upon the terminationof his employment with our company.

Differences betweenthe Companies Law and Nasdaq Requirements

The Sarbanes-Oxley Act, aswell as related rules subsequently implemented by the SEC, require foreign private issuers, such as us, to comply with various corporategovernance practices. In addition, following the listing of the ordinary shares on Nasdaq, we will be required to comply with the NasdaqStock Market rules. Under those rules, we may elect to follow certain corporate governance practices permitted under the Companies Lawin lieu of compliance with corresponding corporate governance requirements otherwise imposed by the Nasdaq Stock Market rules for U.S.domestic issuers.

In accordance with Israelilaw and practice and subject to the exemption set forth in Rule 5615 of the Nasdaq Stock Market rules, we have elected to followthe provisions of the Companies Law, rather than the Nasdaq Stock Market rules, with respect to the following requirements:

Board Practices

Introduction

Upon the consummation of this offering, our board of directors willconsist of                members. We believe that                ,               and            are“independent” for purposes of the Nasdaq Stock Market rules. We intend to appoint an additional “independent”director following the consummation of this offering, so that our board of directors will have a majority of “independent”directors. Our amended and restated articles of association will provide that the number of board of directors’ members shall beset by the general meeting of the shareholders provided that it will consist of not less than two and not more than nine. Pursuant tothe Companies Law, the management of our business is vested in our board of directors. Our board of directors may exercise all powersand may take all actions that are not specifically granted to our shareholders or to management. Our executive officers are responsiblefor our day-to-day management and have individual responsibilities established by our board of directors. Our Chief Executive Officeris appointed by, and serves at the discretion of, our board of directors, subject to the service agreement that we have entered into withhim. All other executive officers are appointed by our Chief Executive Officer. Their terms of employment are subject to the approvalof the board of directors, and are subject to the terms of any applicable employment agreements that we may enter into with them.

Each director, except externaldirectors that may be required to be appointed under the Companies Law under certain circumstances, will hold office until the next annualgeneral meeting of our shareholders following his or her appointment, or until he or she resigns or unless he or she is removed by amajority vote of our shareholders at a general meeting of our shareholders or upon the occurrence of certain events, in accordance withthe Companies Law and our amended and restated articles of association.

In addition, under certain circumstances, our amended and restatedarticles of association will allow our board of directors to appoint directors to fill vacancies on our board of directors or in additionto the acting directors (subject to the limitation on the number of directors), according to the duration of office of the director whomhe replaces. External directors may be elected for up to two additional three-year terms after their initial three-year term under thecircumstances described below, with certain exceptions as described in “External Directors” below. External directors maybe removed from office only under the limited circumstances set forth in the Companies Law.

Under the Companies Law,any shareholder holding at least one percent of our outstanding voting power may nominate a director. However, any such shareholder maymake such a nomination only if a written notice of such shareholder’s intent to make such nomination has been given to our boardof directors. Any such notice must include certain information, including the consent of the proposed director nominee to serve as ourdirector if elected, and a declaration that the nominee signed declaring that he or she possesses the requisite skills and has the availabilityto carry out his or her duties. Additionally, the nominee must provide details of such skills, and demonstrate an absence of any limitationunder the Companies Law that may prevent his or her election, and affirm that all of the required election-information is provided tous, pursuant to the Companies Law.

Under the Companies Law,our board of directors must determine the minimum number of directors who are required to have accounting and financial expertise. Indetermining the number of directors required to have such expertise, our board of directors must consider, among other things, the typeand size of the company and the scope and complexity of its operations. Our board of directors has determined that the minimum numberof directors of our company who are required to have accounting and financial expertise is two.

The board of directors mustelect one director to serve as the chairman of the board of directors to preside at the meetings of the board of directors, and may alsoremove that director as chairman. Pursuant to the Companies Law, neither the chief executive officer nor any of his or her relativesis permitted to serve as the chairman of the board of directors, and a company may not vest the chairman or any of his or her relativeswith the chief executive officer’s authorities. In addition, a person who reports, directly or indirectly, to the chief executiveofficer may not serve as the chairman of the board of directors; the chairman may not be vested with authorities of a person who reports,directly or indirectly, to the chief executive officer; and the chairman may not serve in any other position in the company or a controlledcompany, but he or she may serve as a director or chairman of a controlled company. However, the Companies Law permits a company’sshareholders to determine, for a period not exceeding three years from each such determination, that the chairman or his or her relativemay serve as chief executive officer or be vested with the chief executive officer’s authorities, and that the chief executiveofficer or his or her relative may serve as chairman or be vested with the chairman’s authorities. Such determination of a company’sshareholders requires either: (1) the approval of at least a majority of the shares of those shareholders present and voting on the matter(other than controlling shareholders and those having a personal interest in the determination) (shares held by abstaining shareholdersshall not be considered); or (2) that the total number of shares opposing such determination does not exceed 2% of the total voting powerin the company.

The board of directors may,subject to the provisions of the Companies Law, delegate any or all of its powers to committees of the board, and it may, from time totime, revoke such delegation or alter the composition of any such committees, subject to certain limitations. Unless otherwise expresslyprovided by the board of directors, the committees shall not be empowered to further delegate such powers. The composition and dutiesof our audit committee, financial statement examination committee and compensation committee that will be established upon the listingof our ordinary shares on the Nasdaq Capital Market, are described below.

The board of directors oversees how management monitors compliancewith our risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks facedby us. The board of directors is assisted in its oversight role by an internal auditor. The internal auditor undertakes both regular andad hoc reviews of risk management controls and procedures, the results of which will be reported to our audit committee.

External Directors

Underthe Companies Law, except as provided below, companies incorporated under the laws of the State of Israel that are publicly traded, includingIsraeli companies with shares listed on the Nasdaq, are required to appoint at least two external directors who meet the qualificationrequirements set forth in the Companies Law. The definitions of an external director under the Companies Law and independent directorunder Nasdaq Stock Market rules are similar such that it would generally be expected that our two external directors will also complywith the independence requirement under Nasdaq Stock Market rules.

Pursuantto regulations under the Companies Law, the board of directors of a company such as us is not required to have external directors if:(i) the company does not have a controlling shareholder (as such term is defined in the Companies Law); (ii) a majority of the directorsserving on the board of directors are “independent,” as defined under Nasdaq Rule 5605(a)(2); and (iii) the company followsNasdaq Rule 5605(e)(1), which requires that the nomination of directors be made, or recommended to the board of directors, by a NominatingCommittee of the board of directors consisting solely of independent directors, or by a majority of independent directors. The Companymeets all these requirements. Our board of directors has resolved to adopt the corporate governance exemption set forth above, and accordinglywe will not have external directors as members of our board of directors.

Alternate Directors

Our amended and restated articles of association will provide, as allowedby the Companies Law, that any director may, subject to the conditions set thereto including approval of the nominee by our board of directors,appoint a person as an alternate to act in his place, to remove the alternate and appoint another in his place and to appoint an alternatein place of an alternate whose office is vacated for any reason whatsoever. Under the Companies Law, a person who is not qualified tobe appointed as a director, a person who is already serving as a director or a person who is already serving as an alternate directorfor another director, may not be appointed as an alternate director. Nevertheless, a director who is already serving as a director maybe appointed as an alternate director for a member of a committee of the board of directors so long as he or she is not already servingas a member of such committee, and if the alternate director is to replace an external director, he or she is required to be an externaldirector and to have either “financial and accounting expertise” or “professional expertise,” depending on thequalifications of the external director he or she is replacing. A person who does not have the requisite “financial and accountingexperience” or the “professional expertise,” depending on the qualifications of the external director he or she is replacing,may not be appointed as an alternate director for an external director. A person who is not qualified to be appointed as an independentdirector, pursuant to the Companies Law, may not be appointed as an alternate director of an independent director qualified as such underthe Companies Law. Unless the appointing director limits the time or scope of the appointment, the appointment is effective for all purposesuntil the appointing director ceases to be a director or terminates the appointment.

Committees of the Board of Directors

Upon completion of this offering, our board ofdirectors will establish two standing committees, the audit committee and the compensation committee.

Audit Committee

Under the Companies Law,we will be required to appoint an audit committee subject to the listing of our ordinary shares on the Nasdaq Capital Market. The auditcommittee must be comprised of at least three directors, including all of the external directors, if applicable, (one of whom must serveas chair of the committee). The audit committee may not include the chairman of the board; a controlling shareholder of the company ora relative of a controlling shareholder; a director employed by or providing services on a regular basis to the company, to a controllingshareholder or to an entity controlled by a controlling shareholder; or a director who derives most of his or her income from a controllingshareholder.

Our audit committee willbe comprised of                   ,                 and                   .

Under the Companies Law,our audit committee is responsible for: