{"url_path":"/sec/rdcm/10-k/2026/item-4","section_key":"item-4","section_title":"Item 4 INFORMATION ON THE COMPANY**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1016838/0001213900-26-036862-index.html","accession_number":"0001213900-26-036862","cik":"0001016838","ticker":"RDCM","issuer_name":"RADCOM LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1016838/0001213900-26-036862-index.html","primary_entity_key":"0001016838","primary_entity_name":"RADCOM LTD"},"word_count":9113,"has_tables":true,"body_markdown":"**ITEM\n4. INFORMATION ON THE COMPANY**\n\n** **\n\n \n**A.**\n**HISTORY AND DEVELOPMENT\nOF THE COMPANY**\n\n \n\nBoth\nour legal and commercial name is RADCOM Ltd., and we are an Israeli company. We were incorporated in 1985 under the laws of the\nState of Israel and commenced operations in 1991. The principal legislation under which we operate is the Israeli Companies Law.\nOur principal executive offices are located at 24 Raoul Wallenberg Street, Tel Aviv 6971920, Israel, and our telephone is 972-3-645-5055. Our\nwebsite is www.radcom.com. Information on our website and other information that can be accessed through it are not part of, or\nis incorporated by reference into, this Annual Report.\n\n \n\nIn\n1993, we established a wholly owned subsidiary in the United States, currently named RADCOM, Inc., or RADCOM US. In 1996, we incorporated\na wholly owned subsidiary in Israel, RADCOM Investments (96) Ltd., located at our office in Tel Aviv, Israel. In 2010, we established\na wholly owned subsidiary in Brazil, RADCOM do Brasil Comercio, Importacao e Exportacao Ltda., or RADCOM Brazil. In 2012, we incorporated\na wholly owned subsidiary in India, RADCOM Trading India Private Limited, or RADCOM India. In 2022, we incorporated a wholly owned\nsubsidiary in Canada, RADCOM Canada Limited, or RADCOM Canada.\n\n \n\nIn the years ended December\n31, 2025, 2024 and 2023, our capital expenditures in thousands were approximately $384, $427 and $232, respectively and were spent primarily\non computers and electronic equipment. We have no current material commitments for capital expenditures.\n\n \n\nFor\nmore information, the SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and\nother information regarding us that has been filed electronically with the SEC.\n\n \n\n \n**B.**\n**BUSINESS OVERVIEW**\n\n \n\n**Overview**\n\n \n\nWe\nare a leader in automated assurance and intelligent analytics for telecom operators. Relying on our vast industry-wide experience, we\nunderstand operators’ needs and pain points and the crucial role that enhanced performance, service quality, and customer satisfaction\nplay. Our platform is designed to offer intelligent insights across multiple network layers and technologies from 3G to 5G and beyond.\nIt enables operators to navigate networks’ complexities, assists with advanced troubleshooting, enhances network performance and\noperational efficiencies, ensures service quality and first-rate customer experiences, and optimizes revenue growth.\n\n \n\nWhen\nCSPs seek a solution to assure all or parts of their network, maximize value out of their network data, elevate their customers’\nexperience or deploy a new 5G or greenfield network, they may select RADCOM as their assurance partner. Chosen by AT&T, DISH Purchasing\nCorporation, or Dish, Rakuten Mobile, Rakuten Symphony Singapore Pte. Ltd., Telia Mobil Danmark A/S, or Telia Denmark, and others, we\noffer an intelligent cloud-native assurance solution - RADCOM ACE - that seamlessly integrates into multi-cloud environments. It captures,\nanalyzes, and delivers real-time subscriber analytics and network insights into how the network performs 24/7. Designed to be open, vendor-neutral,\nand cloud-agnostic, RADCOM’s platform captures real-time data using advanced networking technologies. It provides comprehensive\nnetwork observability from radio-access networks, or RAN to the core, delivering actionable, customer-focused insights to enhance customer\nexperience.\n\n \n\nWe\nhave extensive experience with leading telecom operators globally. We offer advanced cloud-native solutions for large-scale networks,\nwhich smartly analyze and correlate multiple data types (network packets, events, performance management and fault management, counters,\nand more) across multiple domains, (mobile and fixed), and generations of technologies (5G, 4G, 3G) providing real-time subscriber analytics\nto drive network automation. We provide operators with an innovative, efficient, and on-demand approach to network assurance that meets\nthe challenges of improving customer experience in the 5G era. Our solution is cloud and vendor agnostic, can be deployed in multiple\ncloud environments and can also deploy on bare-metal, and supports any hybrid deployments of public and private clouds as required in\nthe market.\n\n \n\n18\n\n \n\n \n\nWe\nspecialize in solutions for next-generation mobile and fixed networks, including 5G, Voice over New Radio, or VoNR, Long Term Evolution,\nor LTE, VoLTE, Voice over Wifi, or VoWifi, IP Multimedia Subsystem, or IMS, Voice over IP, or VoIP, and Universal Mobile Telecommunication\nService, or UMTS.\n\n \n\nOur\nsolution portfolio enables CSPs to deploy 5G networks and those still running or migrating their 4G, 3G, and 2G legacy networks to have\none platform covering their entire network, providing fully cloud-native network intelligence and service assurance. Monitoring 5G standalone,\nor SA, requires a new approach that supports different options for traffic tapping and data acquisition. RADCOM supports all methods\ndue to the flexibility of our solution, which has multiple deployment options, allowing us to monitor any network. Being dynamic and\nfully integrated enables operators who deploy RADCOM solutions to take an end-to-end view, from RAN to core, utilizing an on-demand approach\nto assure the customer experience for the first 5G use cases and more advanced use cases along their 5G journey.\n\n \n\n**Our\nglobal customer base**\n\n \n\nOur\nsolution is deployed at multiple CSPs globally, such as AT&T, Dish, Rakuten, and Telefonica, and has received wide industry recognition,\nwinning a Global connectivity award for best AI/ML innovation, a Fierce Network Innovation Award, a Frost & Sullivan Product Differentiation\nInnovation Awards three times, and multiple TMC Labs Innovation Awards.\n\n \n\nBy\ndeveloping and adapting our solutions to meet the industry’s most stringent requirements, we have expanded our customer base to\ninclude new opportunities and markets while expanding our footprint with existing customers by supporting them in transitioning to a\n5G network.\n\n \n\nCSPs\nacross the globe use our solutions to deliver high-quality services, reduce churn, manage network performance, analyze traffic, and enhance\ncustomer experiences. Our solutions incorporate cutting-edge technologies and the vast knowledge we have gained in our advanced work\nwith some of the most technologically innovative CSPs in the industry. Our solutions support both mobile and fixed networks, including\n5G, LTE, VoLTE, VoWifi, VoNR, IMS, VoIP, and UMTS.\n\n \n\nOur\nlong standing investment in research and development was validated in 2019 by our renewed engagement with AT&T, when we entered a\nmulti-year engagement to continue our relationship and expand the integration of our solutions into AT&T’s network. Since then\nwe extended the agreements we signed with AT&T and have expanded our relationship.\n\n \n\nIn\nMay 2019, we entered into a multi-year agreement with Rakuten to provide our Network Intelligence solution for Rakuten’s unique\nand innovative mobile network. Rakuten’s network is the world’s first fully virtualized, end-to-end cloud-native mobile network\nthat has adopted 5G systems architecture since its launch. Rakuten chose RADCOM Network Intelligence because it monitors the entire end-to-end\nnetwork, including the world’s first fully virtualized RAN and we have continued to work with Rakuten since then, among other things\non Rakuten’s successful commercial launch of the world’s first fully virtualized mobile network in April 2020.\n\n \n\nDuring\n2021, we announced partnerships with Amazon Web Services, or AWS, and Microsoft Azure through which we are offering our RADCOM ACE solution\nwith real-time subscriber analytics and advanced troubleshooting for both telecom operators that are rolling out 5G, Internet of Things,\nand edge services and operators already running 4G and VoLTE networks.\n\n \n\nIn\nMay 2022, we announced our selection by Dish to provide RADCOM ACE solution to monitor customers’ experience across Dish’s\n5G Smart Network™ — the first cloud-native, Open RAN-based 5G network in the United States. RADCOM ACE at Dish runs on AWS.\n\n \n\nIn\nApril 2023, we acquired Continual’s technology, intellectual property, and customer agreements for $2.5 million in cash. This leading\nmobility experience analytics company uses AI and ML to deliver advanced insights to help telecom operators improve their subscribers’\nmobility experience.\n\n \n\n19\n\n \n\n \n\nIn\nJanuary 2024 we launched our new GenAI applications, NetTalkTM. Our GenAI applications are part of the RADCOM ACE portfolio,\nenabling operators to adopt the power of GenAI and trusted data to manage their network operations faster and cost-effectively. In May\n2024 we announced the availability of our GenAI applications – RADCOM NetTalkTM on AWS.\n\n \n\nIn\nFebruary 2024, we announced that Wind Tre S.p.A, or WINDTRE, along with NTT DATA Italia S.p.A. and RADCOM have implemented sustainable\nVirtual Drive Test technology that enhanced its customers’ mobile experience on Italy’s roads and railway lines. Through\nthe use of RADCOM’s Virtual Drive Test, WINDTRE analyzes the quality of mobile network services along Italy’s road and rail\nroutes, achieving significant time and cost savings, as well as a significant reduction in CO2 emissions to the environment.\n\n \n\nIn\nJanuary 2025, we announced our contract with Norlys, the owner of Telia Mobil, to provide Telia Mobil with RADCOM ACE to monitor customer\nexperiences across 5G and 4G networks.\n\n \n\nIn\nFebruary 2025, we announced the integration with ServiceNow to automate service and complaint resolution for telecom operators. The integration\nof RADCOM RAN Analytics Solution, part of RADCOM ACE Service Assurance, with ServiceNow, leverages AIOps (the use of Artificial Intelligence\ntechnology to automate Operations) to offer advanced automated complaint resolution.\n\n \n\nIn February 2025, we announced\nthat we are developing a next-generation, high-capacity user plane data capture and analytics solution powered by the NVIDIA BlueField-3\nDPU. This solution is designed to provide real-time, customer-level quality of experience, or QoE insights by capturing and processing\nhigh-volume user plane data across the entire network at the edge. This solution aims to empower telecom operators with greater subscriber\nand service visibility while optimizing network computing resources.\n\n \n\nIn October 2025, we announced\nthe launch of the RADCOM High-Capacity User Analytics Solution. The solution enables telecom operators to process massive volumes of traffic\nacross the entire network at the edge, reducing costs while unlocking real-time, customer-level insights. This announcement follows our\npreviously announced integration of NVIDIA.\n\n \n\nIn\nNovember 2025, we announced that we have secured a contract for our Smart Network Visibility Solution through Rakuten Symphony for a\nleading mobile operator. Acting as a critical layer between the network and a mobile operator’s service assurance platform, the\nsolution delivers accurate, intelligent data collection with flexible options for retention and delivery. We believe this will enable\na comprehensive end-to-end view of the network while significantly reducing monitoring costs.\n\n \n\nIn\nFebruary 2026, we announced the launch of RADCOM Neura, an AI agent suite designed for integration into agentic AI ecosystems, created\nto transform service assurance from reactive monitoring into a foundational enabler of autonomous, intent-driven networks. RADCOM Neura\nutilizes real-time customer-focused data from RADCOM ACE, combined with a comprehensive suite of AI and machine learning tools, to power\na team of specialized AI agents.\n\n \n\nDuring\n2026, we expect to continue to enhance and expand our product offerings and capabilities. We anticipate increased investment in research\nand development to support these efforts. In addition, we expect to increase our sales and marketing activities to support our growth\nobjectives. We intend to leverage our relationships with industry-leading customers to expand our engagement with additional CSPs, particularly\nthose transitioning to 5G networks or investing in advanced technologies to enhance customer experience.\n\n \n\n20\n\n \n\n \n\n**Industry\nBackground**\n\n \n\n**Our\nCustomers and the Market for Our Solutions**\n\n \n\nWe\noperate in the telecom market which is undergoing significant transformation with significant potential for growth, which is evidenced\nby the evolution of the networks and transition to 5G networks and the beginning of outlook to 5G advanced network technologies and GenAI\nand Agentic AI embedded network operations. The customers in our market consist primarily of mobile and fixed CSPs who are responsible\nfor providing mobile and fixed telecommunications services. Our solutions are used by multiple divisions within a CSPs’ organization,\nincluding engineering, operations, marketing, management and customer care departments.\n\n \n\nCSPs\nare expanding their 5G network in an effort to improve coverage and deliver enhanced 5G services to their customers. However, while they\nupgrade technologies, adapting customer-centric strategies is even more critical. It is no longer enough to focus on understanding the\noverall satisfaction and perception of the customers. To maintain customer loyalty, telecom companies, or telcos need to become digital\nservice innovators, setting the standards in service delivery, quality, and performance to match enhanced speeds. This means that operators\nneed to implement a process of monitoring, evaluating, and enhancing the quality of services to understand the actual customer experience\nin real time.\n\n \n\nTo\nultimately drive revenue growth, CSPs need insights and analysis across multiple network domains. Technologies, such as advanced analytics,\nAI, and automation, streamline network operations and offer improved service quality to their customers. In addition, with new technology\nrapidly evolving, AI, GenAI and Agentic AI are central to the vision of next-generation network operations (AIOps).\n\n  \n\nDeploying\na cloud-native AI-based assurance solution, is an essential part of a CSP’s network, derived by the need to smartly manage huge\namounts of various network elements, data and services from multiple vendors and technologies. In addition, CSPs are facing strong competition\nboth from other CSPs and from over-the-top, or OTT, players who are offering competing services. In order to fight for their customers’\nsatisfaction, CSPs will need to gain deeper insight into customer behavior end to end, enabling them to tailor processes based on customer\npreferences.\n\n \n\nCPSs’\nadoption of 5G is accelerating while they continue to operate their 4G, 3G and 2G networks and search for superior solutions that will\nenable them full end-to-end network visibility. In addition, CSP’s requirement to run 5G network analytics in public cloud infrastructure\nis rising.\n\n \n\n**Move\nto the Cloud**\n\n** **\n\nThe\nmove to automation is fueling the transition to the cloud, driving the need for software and cloud-native functions in the network. While\nsoftware-controlled networks reduce capital and operational expenditures, they also demand interoperability with existing solutions across\nprivate, public, and hybrid domains. RADCOM is designed as a scalable set of microservices that can operate across multiple technologies\nand domains, including public, private, and hybrid cloud environments. It ensures network and business continuity, pinpointing the source\nof a problem or degradation in real-time.\n\n** **\n\n**Move\nto Open-RAN**\n\n** **\n\nWhile\nreducing costs, the move to Open-RAN also demands verification of interconnectivity between various components including servers, accelerators,\nbase station software, and virtualization platform software. By collecting data in real-time from multiple RAN environments, including\nOpen-Ran, RADCOM safeguards quality and interoperability between environments and domains, identifying risks and faults in real-time\nand offering an end-to-end, birds-eye view of the network.\n\n** **\n\n**AI\nModels, Generative AI and Agentic AI**\n\n** **\n\nIntroducing\nartificial intelligence and machine learning, or AI/ML, GenAI models and recently Agentic AI are proving transformative in the telecom\nindustry. RADCOM was the first assurance vendor to announce a GenAI assurance application (NetTalkTM) to enable operators\nto tap into the wealth of data insights from their existing network with RADCOM ACE. RADCOM was also the first assurance vendor to announce\na team of network related AI Agents. Operators gain a new, cost-effective, and time-saving interface for accessing data and insights\nin natural language with trusted data accuracy.\n\n \n\n21\n\n \n\n \n\n**Automation**\n\n** **\n\nThe\ntelecom industry is undergoing a digital transformation. While the numbers of IoTs and connected devices have grown and reshaped industries,\nnetwork operations costs have risen. RADCOM helps streamline the process with complete lifecycle management (LCM). We offer automated\non-demand instantiation, scaling, healing, and updating according to policies. We also offer automated insights through AI/ML, and recently\nadded a team of network related AI Agents enabling operators to save engineering resources, manage the network more efficiently, and\ngain proactive assurance features such as anomaly detection, predictive analytics, and automated root cause analysis before degradations\naffect customers.\n\n** **\n\n**Security**\n\n \n\nCSPs\nneed to prioritize security in their customer offerings. RADCOM promotes adherence to security standards while ensuring operators can\nmaintain quality of service and connectivity. We extend security through a native design, where elements that are deployed, distributed,\nand communicated, use encryption to enhance security, especially across domains.\n\n \n\n**Our\nStrategy**\n\n \n\nOur\nobjective is to be the worldwide market leader for 5G automated assurance solutions and customer experience analytics while maintaining\nour leadership by providing end-to-end network visibility. We believe our leadership and innovation around 5G assurance solutions is\none of our core competencies and will be advantageous to us as these types of solutions are expected to play a key role in the deployment\nof 5G networks. We plan to increase our sales by leveraging our unparalleled experience gained from implementing some of largest, most\nadvanced network deployments to date, where we are providing complete end-to-end network visibility from the RAN to the network core\nin multiple deployment models including public cloud.\n\n \n\nWe\noffer our solutions and expertise to CSPs worldwide, with a focus on CSPs which are deploying or have already deployed 5G SA networks.\nWe plan to maintain our technical advantage over competitors by further investing in enhancing the analytics and automation capabilities\n(including advanced AI\\ML capabilities), embed GenAI capabilities and open our solution to adjacent partnerships to allow for a wider\nscope and target market.\n\n \n\nKey\nelements of our strategy include:\n\n \n\n \n●\n**Targeting Tier 1, Greenfield\nOperators and other CSPs worldwide, who have deployed, or are planning to deploy 5G networks**. The ongoing deployments of 5G networks\nand the benefits that come with it are expected to drive a greater opportunity for advanced automated assurance and customer experience\nanalytics solutions like ours. We believe that our solutions are significantly more advanced than competitors’ offerings and\nthat we are better positioned than competitors who lack the experience deploying in cloud-native and AI-native environments or do\nnot offer true 5G-ready solutions that can be deployed at large scale. In order to transition to 5G networks, CSPs generally need\nto replace or upgrade their assurance solutions with software that can support both their legacy networks as well as their future\nnetwork architectures, including 5G use cases, in a cost-effective manner. Our solution, which monitors both legacy and next-generation\nnetworks, ensures a smooth migration and enables CSPs to future-proof their investment in a cost effective, modern, GenAI and Agentic\nAI based automated assurance solution. With our advanced deployment with customers such as AT&T, Rakuten and Dish, and our position\nas a 5G assurance leader which is cloud-native and can be deployed on any public or private cloud, we believe we are well positioned\nto leverage our vast experience in true 5G assurance solutions in order to successfully expand our deployment base to other CSPs\nas we focus our sales and marketing activities on Tier 1, galaxy (multi-carrier) and innovative CSPs and other CSPs.\n\n \n\n \n●\n**Shifting to multi-year\nrecurring revenue contracts**. We aim to leverage our offering to CSPs and offer long term multi-year business engagement\nmodels, which will allow them to meet their system planning needs through subscription or term licensing, operational services,\nmanaged services, annual maintenance and support and software upgrade packages. Such multi-year contracts also provide us with the\nability to add new capabilities over-time to ensure that the CSPs are always benefitting from our most-up to date cutting-edge software\nsolutions.\n\n \n \n \n\n \n●\n**Expand our addressable\nmarket via internal development, strategic partnerships and M&A**. We are expanding our addressable market through a three-pronged\napproach. Our internal development efforts are driving the creation of new products and addressing broader business processes within\nour CSP target customer base. We are simultaneously establishing strategic partnerships with complementary product companies, leveraging\ntheir expertise, distribution networks, and customer bases to engage with additional buying personas. Additionally, we are pursuing\nmergers and acquisitions to enter adjacent market segments, gain market share, obtain valuable intellectual property and expand our\ncustomer base. This comprehensive strategy enables us to systematically increase our market reach while managing risks and resources\neffectively.\n\n \n\n22\n\n \n\n \n\n**Products\nand Solutions**\n\n \n\n**RADCOM’s\nTechnology**\n\n \n\nThe\nfirst 5G assurance technology to go cloud-native, RADCOM ACE is RADCOM’s automated assurance platform that provides a closed-loop,\nend-to-end approach to assurance across 3G, 4G, and 5G SA and NSA technologies. The platform ensures data integrity and seamless operation\neven in the face of individual component failures.\n\n \n\nThe\narchitecture, designed for high availability and redundancy, guarantees that operators’ networks remain robust and reliable, fostering\na superior user experience for all subscribers. With an emphasis on flexibility and scalability, RADCOM supports many network technologies\nand infrastructures, ensuring modularity for easy integration and future expansion.\n\n \n\nUsing\nstreaming analytics from AI and ML technologies, real-time subscriber data is automatically collected, correlating RAN and core network\ndata that detects, analyzes, and resolves issues. The platform can easily be installed on mobile (5G or 4G), fixed networks, or as a\ncloud-native function on multiple cloud domains in fully containerized solutions controlled by Kubernetes on both public and private\ncloud. It is available as a virtual network function, or VNF on virtual machines as software or commercial off-the-shelf hardware.\n\n \n\nRADCOM’s\nplatform, RADCOM ACE is deployable from labs to full-scale nationwide networks. It allows operators to troubleshoot in real time, identify\nnetwork bottlenecks, and monitor all traffic loads to ensure premium services.\n\n \n\n**RADCOM\nACE**\n\n** **\n\nRADCOM\nACE is an automated assurance and analytics platform. It provides multiple solutions for telecom operators, including automated assurance,\ndata insights through advanced AI/ML capabilities, advanced 5G troubleshooting, and revenue generation.\n\n \n\nRADCOM\nACE uses built-in AI/ML, and heuristic modeling to proactively and predictively monitor and troubleshoot the network with real-streaming\nanalytics for a closed-loop approach to customer experience management. RADCOM ACE provides full end-to-end coverage from the RAN (including\nvRAN and O-RAN) to the Core. Collecting, analyzing, and correlating all the data into subscriber (international mobile subscriber identity,\nor IMSI-based) insights. This provides hundreds of subscriber-centric metrics and key performance indicators, or KPIs, for end-to-end\nnetwork optimization and advanced troubleshooting. It covers a wide range of customizable use cases, including anomaly detection, automated\nroot cause analysis, mobile device and geographic-based analytics, network dimensioning, network performance monitoring, pinpointing\nradio network issues, complaint investigation, predictive and prescriptive analytics, and QoE analytics. RADCOM ACE can also be\ndeployed to support private network monitoring.\n\n** **\n\nWith\nRADCOM ACE, CSPs are able to manage their networks in a more dynamic and agile way, which can run on private and public clouds such as\nAWS, Google Cloud Platform, or GCP, and Azure. RADCOM ACE is built to ensure that 5G services continuously run at optimal quality, while\nat the same time improving the operators’ operational efficiency through automation and rapidly enhancing time to market for new\nservices and innovations. RADCOM ACE is the culmination of our significant product investment over the last few years and reinforced\nby customer feedback to enable a new way of monitoring 5G services that ensures a high-quality customer experience as operators transition\nto 5G.\n\n \n\n23\n\n \n\n \n\nRADCOM\nACE is a solution that samples, filters, manages, and load balances massive traffic volumes across multiple clouds from the edge to the\nnetwork core. Using AI/ML and heuristic modeling, it proactively and predictively monitors and troubleshoots the network with automated\nroot-cause analysis, anomaly detection, and insights into encrypted traffic for services such as video and data streaming.\n\n \n\nThe\nplatform uses a microservices architecture, which allows each part to be scaled, updated, or replaced. It offers real-time performance\nand elastic scalability. RADCOM ACE fully supports 5G SA and NSA and offers Service Based Architecture readiness for both, Service Based\nInterface, or SBI and non-SBI (supporting complex Control Plane and User Plane Separation correlation).\n\n \n\nRADCOM\nACE encompasses intelligent, containerized, and stateless functions for collecting and correlating network events. Data correlation is\ndone from numerous sources, including network packets, generic network events, JavaScript Object Notation, protocol buffers, counters,\nVNF inputs/events, and call data records, or CDRs from legacy probes (normally packet-based), and other standards/frameworks as they\nevolve.\n\n \n\nIn\naddition to automated assurance, the RADCOM ACE platform provides multiple data analytics functions, such as RAN-DAF, management data\nanalytics function, and network data analytics function, or NWDAF, which offer closed-loop automation.\n\n \n\nAs\noperators increasingly transition to standalone 5G, we see significant potential in offering our intelligent assurance solution to mid-tier\noperators. To seize this opportunity, we are productizing our industry-leading 5G assurance solution, RADCOM ACE, into a scalable, flexible\npackage designed to meet the needs of operators of all sizes. This approach will enable us to introduce new product offerings to a broader\naudience, ranging from full-scale deployments and mid-tier implementations to limited-scope lab environments.\n\n \n\n**RADCOM\nACE solutions**\n\n** **\n\nRADCOM’s\nsolutions are designed to offer unparalleled insights across multiple mobile network layers and technologies from 3G to 5G and beyond.\nThe solutions ensure data integrity and seamless network operation, and are designed for high availability and redundancy. Fostering\nsuperior user experience, networks remain robust and reliable, while maintaining flexibility, scalability and easy integration across\nall technologies. With accelerated computing and high-capacity data capture, RADCOM helps operators process massive volumes of data from\nthe RAN to the core and supports the delivery of ultra-fast, reliable, and personalized digital experiences for users.\n\n \n\n*RADCOM\nRAN Solutions*\n\n* *\n\nRADCOM’s\nRAN Solutions provide essential insights and automated tools designed to improve the performance of Radio Access Networks. Utilizing\nadvanced artificial intelligence and machine learning technologies, RADCOM provides the essential visibility required to optimize network\noperations through functions such as root cause analysis, or RCA, virtual drive testing, comprehensive network evaluation, route analysis,\nand roaming assurance. The vendor-agnostic nature of RADCOM’s solutions enables monitoring and correlation across multiple vendor\ndata feeds, substantially decreasing the time and resources required by network engineers to investigate and resolve technical challenges.\n\n \n\n*RADCOM\nCore Solutions*\n\n* *\n\nRADCOM\nprovides an advanced network core analysis and troubleshooting solution that supports multi-vendor technologies ranging from 2G to 5G\nSA. The platform analyzes, monitors, and optimizes core network performance, proactively identifying issues before they impact subscribers.\nThis ensures superior customer experience and consistently high-quality services. Its core is composed of lightweight, containerized\nmodules designed for dynamic and flexible automated intelligent assurance. The cloud-native solution is deployable across private, public,\nor hybrid networks and integrates seamlessly with the network to enable real-time monitoring of both encrypted and unencrypted traffic.\n\n \n\n24\n\n \n\n \n\n*RADCOM\nEnd-To-End Solutions*\n\n* *\n\nRADCOM\nprovides a unified assurance platform that empowers operators with a holistic view of their network infrastructure. This single, intuitive\ninterface allows operators to comprehensively assess service quality throughout the network, covering both the RAN and core network segments.\nAdditionally, the platform offers granular insights into customer experience, ensuring that operators can address quality of service\nat every level. By generating actionable insights, RADCOM ensures that every aspect of network performance and customer satisfaction\nis addressed efficiently even across encrypted interfaces—ensuring robust, end-to-end monitoring and analysis throughout.\n\n* *\n\n*Customer\nCare Solutions*\n\n** **\n\nCustomer\ncare is often the first touchpoint between the operator and a customer when an issue or problem arises. It is therefore critical that\noperators have as much real-time data as possible to resolve the issue quickly or inform the relevant team to speed up the resolution.\nRADCOM Customer Care Solution provides operators with customer experience insights across all services to improve first-call resolution\nand ensure seamless support interactions. It supports all services, such as video conferencing, video streaming, messaging, gaming, and\ntethering. This includes OTT services, like WhatsApp, Facebook, Teams, Zoom, and YouTube, so that operators can understand the entire\ncustomer experience, whoever provides the service or application.\n\n \n\n*RADCOM\nOperational Efficiencies Solutions*\n\n** **\n\nThe\nRADCOM Operational Efficiencies portfolio provides solutions that enable operators to streamline operations using data-driven insights\nenhanced by telco-focused AI capabilities. Using AI/ML, the solution automatically collects and analyzes massive amounts of network data\nin real time, allowing engineering teams to gain deep insights into the impact of glitches and problems affecting the customer experience.\nThe solution helps operators improve new 5G sites, automate root cause analysis, optimize mobility services, and digitize their network\noperations center.\n\n* *\n\n**RADCOM\nAI Intelligent Module (RADCOM AIM)**\n\n** **\n\nRADCOM\nACE incorporates RADCOM AIM – RADCOM’s AI Intelligent Module for intelligent analytics and automated assurance. RADCOM AIM\nis designed for mobile and fixed networks to allow telecom operators to integrate AI and ML into their networks. It monitors the network\ndata in real time and offers automated insights for various operations. RADCOM AIM uses built-in machine learning models deployed on\nthe network, which learn baseline behavior, automatically creating thresholds without configuring them. The solution is modular, which\nmeans that its ML models can be updated to the solution seamlessly.\n\n \n\nRADCOM\nAIM offers AI-driven analytics to drive automated assurance with RADCOM ACE or legacy assurance solutions. It can also enable zero-touch\nautomation with RADCOM NWDAF. RADCOM AIM automatically finds network anomalies, automates RCA, and performs predictive analytics.\n\n** **\n\n**Generative\nand Agentic AI Solutions**\n\n** **\n\nRADCOM’s\nInnovation Hub is dedicated to developing cutting-edge ideas, leveraging emerging technologies, and deep industry expertise to power\nintelligent networks, and drive customer-driven solutions for telecom operators. By turning subscriber-focused assurance data into autonomous\naction, we help operators move from reactive service models to proactive, self-optimizing networks—improving customer experience,\nreducing operational overhead, and accelerating time to value. Out of this innovation hub additional solutions are launched.\n\n \n\n**RADCOM’s\ngenerative AI suite** transforms telecom operators’ interfaces with quick insights into telco-focused near real-time data. Powered\nby large language models, RADCOM NetTalk™ enables operators to leverage the extensive data insights generated by RADCOM ACE, utilizing\ntrusted data from their network. It provides observations in natural language, accompanied by prompts that reference anonymized data.\nIt enables anyone, from executives to engineers, to understand the issues and challenges driving network operations. Deployable in the\ncloud or as a hybrid model, operators can easily access business and network insights for data-driven decisions and troubleshoot networks\nmore rapidly and efficiently.\n\n \n\n25\n\n \n\n \n\n**RADCOM’s\nagentic AI platform** leverages advanced computing capabilities to deliver real-time, granular-level data, including per-user, device,\nand service analytics. It provides a complete understanding of the network—from the RAN to the core—offering insights into\nuser trends, location intelligence, usage patterns, service interactions, and more. RADCOM’s end-to-end solutions monitor tens\nof millions of connected devices, high-speed voice and data services, and dynamic network conditions. This sheds light on both network\nand customer issues, delivering actionable insights across usage trends and service performance. By embedding an agentic AI layer, RADCOM\nenables operators to harness existing network data, generating reliable and trustworthy insights from real-time, balanced data models.\n\n \n\n**Sales\nand Marketing Organization**\n\n \n\nWe\nmainly sell directly to customers throughout the world through our executives and sales representatives in North America, Europe, Latin\nAmerica, Asia Pacific and Israel, which are supported by local representatives and agents in the local markets. During 2025, these direct\nsales were made mainly in North America, Europe, the Middle East and Africa. or EMEA, and Asia. In North America, we operate mainly through\nRADCOM US, which sells our solutions to end-users directly and provides support to customers in the North American market. Our solutions\nare sold to CSPs in North America either by RADCOM US, RADCOM Canada or by us. In Brazil, we operate through RADCOM Brazil, which primarily\nsells our solutions to end-users in the Brazilian market directly. In India, we operate through RADCOM India, which primarily provides\ncustomer support and development services worldwide. Elsewhere, our solutions are primarily sold through our sales representatives in\nEurope, Latin America, the Commonwealth of Independent States, Asia Pacific and Israel, and supported by local representatives and\nsubcontractors in the local market.\n\n \n\nIn\nterritories in which we do not have direct presence, we expanded our outreach by entering into agreements with local distributors and\nvalue-added resellers. In 2025, we signed agreements with new distributors to penetrate new geographical markets and engage with new\ncustomers, and to better serve our target markets. We continue to search for more of these channels to expand our outreach further. In\ncertain territories, our distributors and resellers serve as part of our sales, marketing and support teams as our local representatives,\nhelping to sell, deploy and service our solutions, offer technical support in the end-user’s native language, and attend to customer\nneeds during local business hours.\n\n \n\n**Geographic\nMarkets:**\n\n \n\nThe\ntable below indicates the approximate breakdown of our revenue by territory, based on the location of the end-customer:\n\n \n\n  \nYear\nended December 31,\n(in millions of U.S. dollars)  \nYear\nended December 31,\n(in percentages) \n\n  \n2025  \n2024  \n2023  \n2025  \n2024  \n2023 \n\nNorth America \n 38.9  \n 36.1  \n 31.8  \n 54.3  \n 59.1  \n 61.6 \n\nAsia \n 9.9  \n 12.7  \n 9.8  \n 13.9  \n 20.9  \n 19.0 \n\nLatin America \n 0.2  \n 0.3  \n 1.3  \n 0.3  \n 0.5  \n 2.5 \n\nEMEA (including Israel) \n 22.5  \n 11.9  \n 8.7  \n 31.5  \n 19.5  \n 16.9 \n\nTotal revenues \n 71.5  \n 61  \n 51.6  \n 100% \n 100% \n 100%\n\n \n\n26\n\n \n\n \n\n**Competition**\n\n \n\nThe market for our solutions\nis competitive, and we expect that competition will continue in the future, both with respect to solutions that we are currently offering\nand solutions that we are developing. Our principal competitors include NetScout System Inc., Infovista S.A. (acquired Empirix Inc.),\nElisa Oyj (acquired Polystar), Anritsu Corporation, Viavi Solutions Inc. and NumoData, Inc. (acquired EXFO Inc.’s Service Assurance\ndivision). In addition to these competitors, we expect competition from established and emerging communications, network management and\ntest equipment companies, as well as traditional players in the network intelligence space such as Huawei, Ericsson and Nokia. Many of\nour competitors have substantially greater resources than we have, including financial, technological, engineering, manufacturing, marketing\nand distribution capabilities, and some of them may enjoy greater market recognition than we do. Furthermore, the transition to cloud-virtualized\nnetwork solutions could possibly open the market to new competitors or bring in competitors from adjacent markets, including network core\nproviders. For more information, see “Item 3.D—Risk Factors— Risks Related to Our Business and Our Industry.”\n\n \n\nWe\nbelieve that we are differentiated from our competitors due to:\n\n \n\n \n●\nour recognized advanced,\ncloud-native 5G-ready service assurance solutions;\n\n \n\n \n●\nour experience deploying\nand scaling cloud-native solutions with Tier 1 CSPs such as AT&T;\n\n \n\n \n●\nour telecom domain expertise\nand knowhow of key members of our company in advanced software development;\n\n \n\n \n●\nour experience deploying\nour solutions on the world’s first fully virtualized network and expansion to 5G SA;\n\n \n\n \n●\nour advanced technology\noffering an end-to-end solution for service assurance from the RAN to the core;\n\n \n\n \n●\nour proven 5G-ready solutions\ndeployed in existing 5G networks such as Rakuten Mobile and Dish Networks;\n\n \n\n \n●\nour multi-technology correlation\ncapabilities that can support all major technologies – 5G, 4G, LTE, IMS, VoLTE, VoIP and legacy 3G and 2G - within the same\nsolution;\n\n \n\n \n●\nour End-to-End (RAN to\nCore) view of the network and ability to correlate into a full customer experience view;\n\n \n \n \n\n \n●\nour cloud-native solutions\nprovide cost-efficiency, rapid deployment times and agility in development;\n\n \n \n \n\n \n●\nour ability to operate\nacross multiple technologies and domains, including public, private, and hybrid cloud environments; and\n\n \n \n \n\n \n●\nour proven flexibility\nand responsiveness in a dynamic customer and technology environment.\n\n \n\nOur\nsolutions are deployed with leading and innovative CSPs such as AT&T, Dish and Rakuten. We believe that we are positioned to be one\nof the most advanced leaders in cloud-native, AI-native 5G assurance and customer experience analytics solutions for CSPs deploying 5G\nnetworks on private and public cloud (such as RCP, AWS, GCP and Azure).\n\n \n\n**Customer\nService and Support**\n\n \n\nWe\nbelieve that providing a high level of customer service and support to end-users is essential to our success, and it is our goal to establish\nRADCOM as an industry leader in customer satisfaction. Investments that we are making to achieve this goal include:\n\n \n\n \n●\n**Enhancement of support:**We are dedicated to the provision of timely, effective and professional support for all our customers. We provide 24x7 NOC services,\nmonitoring customers’ environments remotely, troubleshooting and resolving system and application incidents, and supporting\nthe continuance services of our solutions. Such NOC service captures and resolves problems before customers report them. We have\ninvested in additional AI based automation with a variety of alerts and alarms monitoring, improving our capabilities to identify\nand address near real time problems. In addition, we routinely contact our customers to solicit feedback and promote full usage of\nour solutions. We may provide our customers with a free warranty period which includes bug-fixing and a warranty on our solutions.\nAfter the initial warranty period, we offer extended warranties which can be purchased for multi-year periods. Generally, the cost\nof the extended warranty is an annual maintenance fee based on a percentage of the overall cost of the solutions.\n\n \n\n27\n\n \n\n \n\n \n●\n**Customer-oriented product\ndevelopment:**With the goal of continuously enhancing our customer relationships, we meet regularly with customers, and use the\nfeedback from these discussions to improve our solutions and guide our R&D roadmap.\n\n \n\n \n●\n**Regional technical support:**As the sale of a system and solutions requires a high level of technical skills, we decided to enhance our support with local\nexperts located in our regional offices. This strategy is advantageous in terms of the time zone, culture and language. For example,\nthrough our Israel, U.S., Japan, Brazil, Romania and India offices we established local support teams responsible for first level\nengagements with customers (Tier 1). The physical and cultural proximity contribute to the strength of the relationship, increase\nour proficiency in our customer’s network and needs, and leverage the ability to identify pain points and needs of our customers.\n\n \n\n \n●\n**Support of our sales\nrepresentatives:**We provide a high level of pre- and post-sale technical support to our sales representatives in the field. We\nuse a broad range of channels to deliver this support, including technical training, marketing material and others.\n\n \n\n**Seasonality\nof Our Business**\n\n \n\nOrders\nof our products are affected by numerous reasons, including general market and economic conditions, the impact of inflation and rise\nof interest rates, overall industry consolidation, the pace of adoption of new technologies and CSPs budgets and multi-year roadmap.\nAlthough this results in fluctuations in our revenues from quarter to quarter, such fluctuations are not subject to any clear seasonality\nor consistent seasonal patterns.\n\n \n\n**Headquarters\nFacilities**\n\n \n\nOur\ncorporate office is located in Tel Aviv, Israel. and consists primarily of our corporate units such as legal, finance, human resources\nand operation.\n\n \n\n**Research\nand Development**\n\n \n\nThe\nindustry in which we compete is subject to rapid technological developments, evolving industry standards, changes in customer requirements,\nand new product introductions and enhancements. As a result, our success depends in part upon our ability to continue to enhance\nour existing solutions and to develop and introduce new solutions that improve performance and reduce total costs on a cost-effective\nand timely basis.\n\n \n\nDuring\nthe last several years, we invested significant amounts in research and development in order to create and maintain our technological\nleadership and to meet the current and future needs of the world’s most advanced CSPs. We believe that the widescale rollout of\n5G will bring with it a larger wave of cloud native deployments by CSPs. Through our research and development efforts, we believe that\nwe are well positioned to offer state of the art technologies and capabilities to CSPs. Accordingly, we increased our investments in\nthe development of enhanced automation deployment capabilities as well as in advanced ML based techniques to better identify network\nanomalies and analyze the increased network traffic that is expected following the roll-out of 5G networks. In addition to that, we are\nconstantly focusing on automation as a key goal to reduce costs and optimize the operations of CSPs.\n\n \n\nIn\naddition, we invested in several aspects that differentiate our cloud native approach to 5G networks, enabling a true continuous integration/continuous\ndelivery approach on multiple clouds, including AWS, GCP and other cloud networks, which enables automated deployment and higher security\nstandards. We also enhanced our RADCOM NETWORK DISCOVERY solution, which is the application layer of the RADCOM ACE solution. On the\nAI front, we have made significant investment in advancing our RADCOM AIM (Automated Insights Module), including new initiatives leveraging\nGenAI and Agentic AI, which we believe may have an impact in the future. We are expanding our research and development to new domains\nthat require deep knowledge in ML/AI, GenAI, and Agentic AI leveraging some of the latest advancements in ML/AI models, tools and hardware\nassisted solutions such as graphics processing units. We also plan to continue developing our solutions to integrate with various network\nfunctions and with service management systems while leveraging network data, GenAI and Agentic AI to analyze and predict customer experience,\nand to provide insights into service quality. One of our key goals is to improve the capacity of our solutions, while reducing the total\ncost of ownership. As we recently announced, we are developing, testing and implementing probing solutions that leverage the NVIDIA BlueField-3\nto reach un-matched capacity on small footprint target servers. We believe that this approach will provide cost effective assurance solutions,\nwhile the network data keeps growing.\n\n \n\n28\n\n \n\n \n\nIn\nparallel, we continued to enhance and develop both our cloud native virtualized network and 5G solutions to offer greater value and benefit\nto our current and potential customers.\n\n \n\nWe\nexpect to continue this significant investment in 2026, as we develop new features and new solution offerings to meet the requirements\nof transition to 5G networks, as well as continuing the development of a modular approach for the enabling of targeted packages for the\nservice assurance market. This modular approach will enable us to offer not just the full solution, but also specific modules for smaller\ndeployment of CSPs.\n\n \n\n**Israel\nInnovation Authority**\n\n \n\nWe\nhave received royalty-bearing grants from the IIA for certain research and development activities pursuant to an incentive program, in\nan aggregate amount of $50.2 million, calculated from our inception through December 31, 2025, which are subject to provisions of the\nInnovation Law and the regulations promulgated thereunder.\n\n \n\nIn\naddition, we have filed numerous applications, and in the future may continue to file additional applications, for grants from the IIA\npursuant to the Innovation Law. Grants received under such programs are repaid through mandatory royalty payments based on revenues generated\nfrom products developed pursuant to such programs or deriving therefrom. The receipt of such grants is contingent upon our ability to\ncomply with certain applicable requirements and conditions specified in the Innovation Law and under the applicable program. As of December\n31, 2025, royalties at a rate of 3% are due on revenues from sales of products and related services that incorporate know-how developed,\nin whole or in part, within the framework of projects funded by the IIA.\n\n \n\nIn\n2025, and in previous years, we participated in a Magnet consortium program sponsored by IIA, or Magnet Program. Under the terms of this\nprogram, we cooperate with additional companies, universities and research institutes in Israel, organized in a consortium for the development\nof new technologies. The rules of the consortium include several references to the distribution of knowledge between the consortium members,\nand require us to provide the other members in the consortium with a non-sub-licensable license to use the “new information”\ndeveloped by such member, without consideration. These programs do not require payments of royalties to the IIA, but all other restrictions\nunder the Innovation Law, such as local manufacturing obligations and know-how transfer limitations, as further detailed in this annual\nreport on Form 20-F, are applicable to the know how developed by us with the funding received in such programs.\n\n \n\nSince\nwe commenced operations, we have received royalty-bearing grants from the IIA. As of December 31, 2025, our total contingent liability\nto the IIA in respect of grants received including accumulated interest and net of accumulated royalties paid, was approximately $56.0\nmillion.\n\n \n\nBelow\nis a description of our obligations in connection with the grants received from the IIA under the Innovation Law:\n\n \n\n*Local\nManufacturing Obligations*\n\n \n\nThe\nterms of the grants under the Innovation Law require that we manufacture the products developed with these grants in Israel (but do not\nrestrict the sale of products that incorporate the know-how). Under the regulations promulgated under the Innovation Law, the products\nmay be manufactured outside Israel by us or by another entity only if prior approval is received from the IIA (such approval is not required\nfor the transfer of up to 10% of the manufacturing capacity in the aggregate, in which case a notice must be provided to the IIA and\nnot objected to by the IIA within 30 days of such notice). According to the IIA regulations, that are relevant to our projects, submitted\nuntil October 2023, companies that moved the manufacturing of their products outside of Israel, may be subject to an increased royalties\ncap ranging between 120% to 300% of the grants, depending on the manufacturing volume that is performed outside of Israel. We do not\nhave IIA projects involving manufacturing activities after October 2023.\n\n \n\n29\n\n \n\n \n\n*Know-How\nand Know-How Transfer Limitation*\n\n \n\n \n●\nThe Innovation Law provides\nthat the IIA is authorized to determine the ownership requirements of know-how developed under an approved research and development\nprogram and/or derived therefrom and/or rights associated with such know-how including intellectual property, which is not the product\nthat was developed under such program, or the Funded Know-How.\n\n \n\n \n\n  \n\n●\nThe Innovation Law further\nprovides that Funded Know-How cannot be transferred to any third parties without the IIA’s approval. The approval may be subject\nto certain requirements, as determined in each approval separately.\n\n \n\n \n●\nAmong others, the IIA may\ndetermine that certain Funded Know-How can be transferred to third parties in Israel only if such transferee company will also be\nsubject to the same terms and conditions that were levied upon the transferor company under the Innovation Law prior to the transfer\nof such know-how and that the transferor will need to pay 3% of the consideration for the transfer to the IIA\n\n \n\n \n●\nThe IIA may approve the\ntransfer of Funded Know-How from Israel to abroad, generally, provided that (a) the IIA will receive a payment of the portion of\nthe sale price, which portion will not exceed six times the amount of the grants received plus interest (or three times the amount\nof the grant received plus interest, in the event that the recipient of the know-how has committed to retain at least 75% of the\nR&D positions of the grant recipient in Israel after the transfer for a minimum period of three years)); (b) the grant recipient\nreceives an alternative know-how from a third party in exchange for its Funded Know-How, subject to certain requirements, among which\nthe alternative know-how will generate higher revenues than the Funded Know-How for the company; or (c) such transfer of know-how\narises in connection with a liquidation by reason of insolvency or receivership of the grant recipient and the Funded Know-How is\nsold for a lower price than the amount of funds invested in it, in which case the payment set forth in (a) may be reduced.\n\n \n\n \n●\nApproval to manufacture\nproducts outside of Israel or consent to the transfer of Funded Know-How, if requested, is within the discretion of the IIA. Furthermore,\nthe IIA may impose certain conditions on any arrangement under which it permits us to transfer Funded Know-How or manufacturing out\nof Israel.\n\n \n\n \n●\nApproval of transfer of\nFunded Know-How to another Israeli company may be granted only if the recipient abides by the provisions of the Innovation Law and\nrelated regulations, including the restrictions on the transfer of know-how and manufacturing rights outside of Israel.\n\n \n\n*Change\nIn Control*\n\n \n\nThe\nInnovation Law generally imposes reporting requirements with respect to certain changes in the ownership of a grant recipient. The Innovation\nLaw requires the grant recipient and its controlling shareholders or the foreign interested party of such grant recipient to notify the\nIIA of any change in control of the recipient or a change in the holdings of the means of control of the grant recipient that results\nin a non-Israeli citizen or non-Israeli resident or an Israeli citizen or corporation incorporated in Israel becoming an interested party\ndirectly in the grant recipient, and requires the new interested party to undertake to the IIA to comply with the Innovation Law. In\naddition, the IIA may require additional information or representations in respect of such events. For Innovation Law purposes, “control”\nis defined as the ability to direct the activities of a corporation except the ability that stems from serving as an officer or director\nof the company. A person is presumed to have control if such person holds 50% or more of the means of control of a company. “Means\nof control” generally refers to voting rights in a company’s shareholders meeting or the right to appoint directors or the\nchief executive officer. An “interested party” of a company includes a holder of 5% or more of its outstanding share capital\nor voting rights, its chief executive officer and directors, someone who has the right to appoint its chief executive officer or at least\none director, and a company with respect to which any of the foregoing interested parties owns 25% or more of the outstanding share capital\nor voting rights or has the right to appoint 25% or more of the directors. Accordingly, any non-Israeli who acquires 5% or more of our\nordinary shares will be required to notify the IIA that it has become an interested party and to sign an undertaking to comply with the\nInnovation Law.\n\n \n\n30\n\n \n\n \n\n**Proprietary\nRights**\n\n \n\nTo\nprotect our rights to our intellectual property, we rely upon a combination of trademarks, contractual rights, trade secret law, copyrights,\nnon-disclosure agreements and technical measures to establish and protect our proprietary rights in our solutions and technologies. We\nown registered trademark for the name RADCOM®. We currently have nine registered patents, one pending patent application\nand one pending provisional patent application in the United States. In addition, we usually enter into non-disclosure and confidentiality\nagreements with our employees, distributors, sales representatives and with suppliers and sub-contractors who have access to sensitive\ninformation.\n\n \n\n**Employees**\n\n \n\nOur\ntotal headcount as of December 31, 2025, was 325 including employees and contractors. See “Item 6.D—Directors, Senior Management\nand Employees—Employees.”\n\n \n\nWe\nconsider our relations with our employees to be good and we have never experienced a strike or work stoppage. Except for employees\nlocated in Brazil, none of our employees are represented by labor unions.\n\n \n\nAlthough\nwe are not a party to a collective bargaining agreement in Israel, we are subject to certain provisions of collective bargaining agreements\namong the General Federation of Labor in Israel, or the Histadrut, and the Coordinating Bureau of Economic Organizations (including the\nIndustrialists’ Association), or the CBEO, that are applicable to our Israeli employees by virtue of expansion orders of the Israeli\nMinistry of Economy and Industry, including transportation allowance, annual recreation allowance, the lengths of the workday and workweek\nand mandatory general insurance pension. In addition, we may be subject to the provisions of the extension order applicable to the Metal,\nElectricity, Electronics and Software Industry. Israeli labor laws are applicable to all our employees in Israel. These provisions\nand laws principally concern the length of the workday, minimum wages for workers, procedures for dismissing employees, determination\nof severance pay, leaves of absence (such as annual vacation or maternity leave), sick pay and other conditions of employment.\n\n \n\nIn\nIsrael, we follow a general practice, which is the contribution of funds on behalf of most of our employees to an individual insurance\npolicy known as “Managers Insurance” or a pension fund. The contribution rates towards such Managers’ Insurance are\nabove and beyond the legal requirement. This policy provides a combination of savings plan, disability insurance and severance pay benefits\nto the insured employee. It provides for payments to the employee upon retirement or death and accumulates funds on account of severance\npay, if any, to which the employee may be legally entitled upon termination of employment. Each participating employee contributes\nan amount equal to up to 7% of such employee’s base salary, and we contribute between 15.83% and 23.33% of the employee’s\nbase salary. Pursuant to changes to Israeli law as well as collective bargaining agreements entered into by the Histadrut and the\nCBEO, the amounts that we are required to contribute may increase from time to time.\n\n \n\nOur\nemployment agreements with new employees in Israel are in accordance with Section 14 of the Israeli Severance Pay Law – 1963, or\nthe Israeli Severance Pay Law, which provides that our contributions to severance pay fund shall cover our entire severance obligation.\nUpon termination, the release of the contributed amounts from the fund to the employee shall relieve us from any further severance obligation\nand no additional payments shall be made by us to the employee. As a result, the related obligation and amounts deposited on behalf of\nsuch obligation are not stated on the balance sheet, as we are legally released from severance obligation to employees once the amounts\nhave been deposited, and we have no further legal ownership on the amounts deposited.\n\n \n\n31\n\n \n\n \n\nWe\nalso provide employees of RADCOM with an Education Fund, to which each participating employee contributes an amount equal to 2.5% of\nsuch employee’s base salary and we contribute an amount equal to 7.5% of the employee’s base salary (generally up to a certain\nceiling provided in the Israeli Income Tax Regulations). Israeli employees and employers also are required to pay pre-determined sums\nwhich include a contribution to national health insurance to the Israel National Insurance Institute, which provides a range of social\nsecurity benefits.\n\n \n\nIn\nthe United States, we provide benefits in the form of health, dental, vision and disability coverage and matching 401(k) plan contributions,\nin an average amount equal to approximately 23.96% of the employee’s base salary.\n\n \n\nIn\nBrazil, we provide benefits in the form of health coverage, including health, vision and dental coverage, in an average amount equal\nto approximately 19% of the employee’s base salary.\n\n \n\nIn\nIndia, we provide benefits in form of health coverage, education fund, house rent allowance and health insurance fund, in an average\namount equal to approximately 26.48% of the employee’s salary.\n\n \n\n \n**C.**\n**ORGANIZATIONAL STRUCTURE**\n\n \n\nOur\nsubsidiaries are: (1) RADCOM US, which conducts the sales, marketing, and customer support of our products mainly in the United States;\n(2) RADCOM Investments (96) Ltd, for the purpose of making various investments, including the purchase of securities; (3) RADCOM Brazil,\nwhich conducts the sales, marketing and customer support of our products mainly in Brazil; (4) RADCOM India, which primarily provides,\ncustomer support and development services worldwide; and (5) RADCOM Canada, which conducts the sales and marketing of our products in\nCanada. The following is a list of our subsidiaries, each of which is wholly owned:\n\n \n\n**Name\nof Subsidiary**\n \n**Jurisdiction\nof Incorporation**\n\nRADCOM, Inc.\n \nNew Jersey\n\nRADCOM Investments (96) Ltd\n \nIsrael\n\nRADCOM do Brasil Comercio,\nImportacao Exportacao Ltda\n \nBrazil\n\nRADCOM Trading India\nPrivate Limited\n \nIndia \n\nRADCOM Canada Limited\n \nCanada\n\n \n\n \n**D.**\n**PROPERTY, PLANTS AND\nEQUIPMENT**\n\n \n\nWe\ncurrently lease an aggregate of approximately 22,421 square feet of office space in Tel Aviv, Israel. This space includes our development\nfacilities, which consist primarily of programming, documenting, quality control, testing and bug fixing, as well as from time to time,\ninstallation of software components on third party hardware.\n\n \n\nIn\n2025, our aggregate annual lease and maintenance expenses were approximately $802 thousands for our Tel Aviv offices.\n\n \n\nWe\nalso lease an aggregate of approximately 5,377 square feet of office space in Paramus, New Jersey. In 2024, our aggregate annual lease\npayments for such premises were approximately $122 thousands.\n\n \n\nWe also lease an aggregate\nof approximately 40 square feet of office space in Brazil and 5,809 square feet in India. The aggregate annual lease and maintenance payments\nfor those premises in 2025 were approximately $7 thousands and $99 thousands, respectively.\n\n \n\nWe\nbelieve that our offices and facilities are adequate for our current needs and that suitable additional or substitute space will be available\nwhen needed."}