SCHEDULE: Intracoastal Capital Discloses 9.99% Stake in Actelis Networks

Intracoastal Capital LLC, along with Mitchell P. Kopin and Daniel B. Asher, reported a 9.99% beneficial ownership stake in Actelis Networks, Inc. as of December 31, 2025.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC collectively reported beneficial ownership of 849,800 shares of Actelis Networks, Inc. common stock.
• This represents approximately 9.99% of the company's common stock outstanding.
• The ownership includes 401,677 shares directly held by Intracoastal Capital LLC and shares issuable upon the exercise of three warrants: 235,000 from Intracoastal Warrant 1, 81,301 from Intracoastal Warrant 2, and 131,822 from Intracoastal Warrant 3.
• The calculation of beneficial ownership is based on 8,058,392 shares of common stock outstanding as of December 31, 2025, plus the exercisable warrant shares.
• Blocker provisions in Intracoastal Warrant 3 and Intracoastal Warrant 4 prevent the exercise of an additional 30,780 shares and 875,000 shares, respectively, to maintain beneficial ownership below specified thresholds (9.99% and 4.99%).
• Without these blocker provisions, the reporting persons would have beneficial ownership of 1,755,580 shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, as a substantial stake by an institutional investor group can signal confidence in Actelis Networks, Inc., although the filing is purely a disclosure of ownership and not an operational update.

Positives

• A significant institutional investor group has taken a substantial 9.99% stake in Actelis Networks, potentially signaling confidence in the company's future.
• The reporting persons explicitly certify that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11, which can be viewed as a stable, long-term investment intent.

Negatives

• The presence of blocker provisions in warrants, limiting beneficial ownership to just under 10% and 5%, suggests a strategic decision to avoid triggering certain regulatory or corporate governance thresholds, which might limit the investor group's immediate influence.

Risks

• The existence of blocker provisions in warrants means a significant portion of potential ownership (an additional 905,780 shares) is currently unexercised, which could impact future share price if exercised or if the provisions are removed.
• While the filing states the shares are not for control, the 9.99% stake is a substantial position that could still exert influence on corporate decisions, potentially leading to shareholder activism.

Industry Context

StockSavvy.ai notes that Schedule 13G filings are standard disclosures for passive investors acquiring significant stakes, and this filing does not provide specific industry-related insights beyond the ownership itself.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake could influence investor perception and potentially the stock price.
• Management: Awareness of a large shareholder group may influence strategic decisions, even if the group states a passive intent.

Key Dates

Recommendation

A seasoned investor would likely 'hold' based solely on this Schedule 13G filing. While the disclosure of a significant institutional stake (9.99%) by Intracoastal Capital and its principals is generally a positive signal of confidence, this filing provides no operational or financial performance data to warrant a 'buy' or 'sell' recommendation. The passive nature of the investment, as certified by the reporting persons, suggests no immediate intent to influence control, reducing the likelihood of near-term activist-driven value creation. Further analysis of Actelis Networks' fundamentals and market conditions would be required for a more definitive recommendation.

Keywords

Actelis Networks, Intracoastal Capital, Mitchell P. Kopin, Daniel B. Asher, Schedule 13G, Beneficial Ownership, Common Stock, Warrants, SEC Filing, Institutional Investor, Shareholder Stake