Ladies and gentlemen, thank you for standing by. Welcome to the B.O.S. Conference Call. All participants are at present in listen-only mode. As a reminder, this conference call is being recorded and will be available on the B.O.S. website as of tomorrow. Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements for the respective company's business, financial condition, and results of its operations are subject to risk and uncertainties, which could cause actual results to differ materially from those contemplated. Such forward-looking statements include, but are not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, and the effect of the company's accounting policies, as well as certain other risk factors which are detailed from time to time in the company's filings with the various securities authorities. I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead. Thank you. Good morning, and thank you for making the time to meet with us today. Joining me is Mr. Moshe Zeltzer, our Chief Financial Officer. B.O.S. integrates cutting-edge technologies to streamline and enhance supply chain operations. We delivered strong growth in the first nine months of this year. Revenue grew year over year by 28% to $38 million, continuing our record performance this year. We are strategically expanding overseas by partnering with international subcontractors of our Israeli defense client. These markets are relatively untapped by B.O.S. and represent potential growth for B.O.S. We see India as a major target market because it is a global hub for wire and connector assembly, where we have a competitive advantage. Through this approach, our international revenues grew by 24% year over year, demonstrating the growth potential in the international market. Our net income grew year over year by 54% to $2.8 million, while our revenues grew by 28%, showing our ability to convert revenue into bottom-line results, plus profit leverage, as we scale the operating base of the business. We have demonstrated consistent profitability with steady net income growth, achieving a compound annual growth rate of 51% from year 2021 through the year 2025. These results underscore the strength of our defense-focused strategy, reflecting years of deliberate investment in product diversification and operational excellence that position us to capitalize on the defense sector's robust growth trajectory. Given our strong execution and stable backlog exceeding $24 million, we are raising our full-year 2025 financial guidance. We now expect to meet the high end of our previous guidance range of $45-$48 million in revenue and $2.6-$3.1 million in net income. There are several tailwinds that have accelerated our growth momentum, and we believe will support our long-term organic growth. First, as you know, the global increase in defense budgets. Second, replenishment and expansion of Israeli defense forces' inventory and equipment and vehicles. Third, the potential stabilization and improving geopolitical conditions in the Middle East, which is a pivotal tailwind for the growth of the Israeli civil market and will positively impact the growth of our RFID Division. These drivers support our continued organic growth in conjunction with our outbound sales efforts. We continue to look for opportunities to enhance our organic growth with strategic actions that fit our business and diligent pricing parameters. Through the combination of these efforts, we intend to grow both over the coming years. With that overview, I will turn the call over to Moshe Zeltzer, our CFO, to discuss our financial position. Please, Moshe. Thank you, Eyal. Our financial valuation has never been stronger. Cash and equivalents grow to $7.3 million, up from $3.6 million at year-end. Our shareholders' equity amounts to $25 million, which accounts for 66% of our balance sheet. We have a positive working capital of $18 million and $1.1 million in long-term loans secured by real estate we are using for our own operations. This strong balance sheet gives us the flexibility to capitalize on opportunities as they arise, supporting organic growth and strategic acquisitions. Our valuation offers attractive upside compared to Russell 2000 index multiples. Price-to-earnings ratio: Russell 2000 at 20 versus B.O.S. at 11. Price-to-book ratio: Russell 2000 at 2.2 versus B.O.S. at 1.7. Thank you for your time and attention. We are happy to take your questions. Hi, Eyal. Can I ask a question? Yes, please. Great. This is Scott Weiss at Semco Capital. Hi. Hi. Great quarter. Terrific quarter. I have a few questions, and if it's okay, I'd like to ask them one at a time. In the press release, you highlighted that you're excited about your expanding opportunities with new and existing customers. Can you highlight a couple that you're particularly enthusiastic about, and specifically new customers? Yeah. The main customer that we are joining to our portfolio are mainly overseas clients, mainly from India. I can tell you that in the recent week, there was a huge delegation here in Israel from India, including ministers from India. We were happy to meet with many, many companies from India. Those are the major clients that we are joining our group. Okay. When would you expect revenues to hit the bottom line to impact your P&L? What do you mean? When do you expect revenues from this new Indian customer to impact your P&L? Yeah. It already impacted these nine months. We already see the growth in revenues from the international market by 24% as compared to the comparable period last year. This has mainly come from the Indian market. It's a process. Gradually, we are increasing our market share in this territory. Okay. Thank you. Second question. Can you expand on the loss in the RFID Division and exactly what you mean by logistics center slowdown in Israel? Yeah. The RFID Division engaged mainly in the civil market, not in the defense market segment. This segment had a very challenging time in the recent two years because of the conflict in the Middle East. It adversely affected the business. In the recent two quarters, we also saw the effect of the US dollar devaluing against the Israeli shekel that also adversely affected the business. In the fourth quarter, because of some measures we took operationally and in the business model as well, and the change in the environment in Israel, especially in the geopolitical environment, we see a rebound in the demand. We are optimistic about returning back to profit in the fourth quarter. Okay. Great. That was my next question. Can you expand on the currency impact and how much can you quantify the effect it had on your P&L? Do you hedge? If not, are you going to start hedging? Yes. The US dollar devalued against the Israeli shekel by about 11% in the six months as ended September 30 this year, actually the second and the third quarter. Since most of our operational expenses are denominated in shekels, while our revenues are primarily in dollars, this currency movement created approximately $500,000 in additional cost pressure on operating income during this period, or roughly about $250,000 per quarter. As I mentioned before, we are proactively addressing this headwind through strategic sales price adjustment initiated in the fourth quarter and operational efficiency improvements. Regarding the hedging, we are hedging the balance sheet exposure. For every hedging, each hedging has a limitation period. We do not believe that it is a temporary exchange rate. I think it will be with us for the long term. Any kind of hedging on the dollar is temporary. We are trying to find a solution for the long term. Because of that, we are in the process of sales price adjustment and operational efficiency improvements. Okay. One more question, and I'll jump back in the queue. One of the potential concerns on your P&L and continued growth is the impact of the end of the war in Gaza. Can you address this? How should we think about the end of the war and its impact? I think there are two sides to the coin. On one side, we are in the defense segment. The Supply Chain Division, the biggest division in B.O.S., 90% of its business is in the defense. And its customers are the major client in Israel. There is a direct impact of the tension. On the other hand, we have the RFID Division, which is in the civil market. The civil market does not benefit from the war. Because we have a big exposure to the defense, because of that, we are growing in the top line and in the bottom line. Historically, have you grown faster on the defense side in a time of war or a time of peace? All the years, the main growth came from the supply chain. Because even in time of peace, those three clients are the biggest exporters in Israel. They are growing year by year. Also, the defense budget of Israel is growing year by year, even before the war. I'm not sure about the number, but I think the average growth rate of the defense market in Israel along the years was about 7%. It's growing. Sometimes, in some period, in a sharp way, like in the recent two years, about 17% each year or more. In normal years, about 7%. Thanks. I'll jump back in the queue. Thank you. Good morning, Eyal, Moshe. Congratulations on another great quarter. I see that you have $7.3 million in cash, and I assume that amount is rising in the current quarter. You've talked about M&A possibilities. Will you have to raise equity, or will you be able to use cash for any M&A activity? Hi Todd. Nice to meet you again. Yes. Our current position was strong at the end of the third quarter with over $7 million and zero bank debt. That has continued to grow in the fourth quarter. For M&A, we are targeting profitable Israeli defense sector companies with complementary products serving our major clients and their subcontractors. With acquisition targets of up to $10 million and bank financing typically available for approximately 50% because it is a profitable company, 50% of the purchase price, we can execute this transaction using our existing cash on hand without requiring equity raising while maintaining sufficient working capital for operation and organic growth. That's great. Also, can you kind of give us some clarity on the amount of the percentage of your defense business, which is in Israel, and the amount that's in internationally, and how you expect that to change? I've seen a lot of contracts from India and Europe, and I was hoping you could kind of quantify that for us. Yeah. As we saw in the chart, in the nine months, out of the $38 million, $3.6 million were sales overseas related to the supply chain, related to the defense. We are taking measures to reallocate resources to increase this number by being active and with an active approach, especially in India, and maybe even to change our approach in how to operate the sales in India. We see a lot of potential in this market. I believe that this number of $3.6 million that reflects a 24% increase in sales overseas will continue. We will see this trend continue in the fourth quarter and in year 2026 as well. Okay. I know you had talked about opening up kind of a branch office in India. I assume that's where a lot of the expansion is going to be. Is there any update to that office you're going to open over there? Yeah. We are checking various options on how to make it in the most efficient way. We are taking very conservative measures on how to allocate our financial resources overseas and how to do it in a very lean way. I believe that next year, we will see the actual results of our plan. Okay. I'll hop back in the queue. Congratulations again on a great quarter. Thank you. Thank you, Todd. Hello. Hello. Could I ask a quick question? Hello. My name is Igor. This is my second call with you, and congratulations on a strong quarter. My question is, Israel is expensive. Everything in Israel is expensive in the operations. Now it's getting even more expensive with stronger shekel. Now that you're becoming more and more of an international company with international sales, any thoughts of spreading the costs and moving some of your operations outside of Israel, given that it's so expensive to do anything in Israel? It's a good idea, but maybe it's a good idea. We need to think about it. Actually, I don't see which unit we can operate overseas. One of the options, as I mentioned to Todd, is to, instead of doing the sales to India from Israel, do the sales to India from India. This is the first example of how we can reduce our costs. The main approach to do sales in India was not to save costs, but to increase sales. We can get both of the things together. It's a good idea. I need to be honest. I need to think about it. I will keep you updated in the next call. My other question is, I know that the past years were sort of overshadowed by the Gaza war, and other people referred to this. Historically, if you take many, many years, your company is a bit of a cyclical company. Some periods of time, there is more demand. Some periods, there is a little bit less demand. How do you intend to make your company a little bit less cyclical and more sustainable growth? What is your strategy? What do you see the company like five years down the road? I think by going overseas to increase our sales overseas, as we saw in the number, out of the $38 million, just $3.6 million international sales. If we increase it, we can reduce the cycling. Growing by acquisition and adding more, increasing the portfolio we are offering. By that, we can eliminate the exposure that you mentioned. The structure of B.O.S. is that we have the Supply Chain Division in the defense, and we have the RFID Division in the civil, and we have the Robotic Division in between. We already spread. I have to be honest with you, we are in the defense for many years, more than 10 years, and it is all the time growing. I do not remember a cycle of slowdown in this segment. I'm sure that in three or four years, the demand will come back to normal after the situation in the Middle East and in Europe. I believe it's the best segment to attach to. Okay. My last question about the potential for M&A. Obviously, you put $4.5 million at the market option now, and you have plenty of cash. You do not lack for any cash. Are you looking at any specific opportunities right now, or did you just put it just in case? What is your thought about M&A for the next year or two years? I hope that in next year, we will close an M&A. This is the working plan. My plan is to close one. I hope that every two years, we will be able to close an M&A. By that, with the organic growth to reach to the $100 million, this is a target. Those are our plans. We are working according to those plans. Just curious, I understand it might be opportunistic, but why don't you look to borrow to do an M&A and potentially looking at the equity component, given that your stock is not particularly high? That would be maybe a little bit suboptimal versus borrowing from a bank, given that you're a pretty solid company with good cash flow and earnings. I didn't understand your question. It looks like you put a potentially for M&A, you have an option of $4.5 million equity. Obviously, I do not know what the M&A opportunity is going to look like. I would hope that your first intent would be to borrow money from the bank to do an M&A versus issuing equity, given that your equity is relatively low, given your valuation. What are you thinking about? As I mentioned to Todd, in case of doing acquisition, even of $10 million, which is a frame of investment that we are targeting, assuming 50% by bank loans, because it will be a profitable target company. For the rest, the $5 million, absolutely, we do not need to issue more stock. We have it on hand. Okay. All right. Thank you so much. Yeah. We have $7.5 million as of the end of September, and the cash continues to grow. I don't see any need to raise my equity to consume an M&A. You just have it just in case, in case a big opportunity comes up that you have a $4.5 million offering at the market? We see it. We have tools like every public company should have, like the shelf prospectus that we have, and we have not used for four years, like the ATM that we have, and we have not used since the day it was filed. It was filed. The unused credit lines that we have in the bank are not used. We have all the facilities that we should have. Actually, in order to consume $10 million M&A, we do not need to raise to use any of those tools, except for the unused bank credit lines. How much do you have available credit as now, approximately? Sorry? How much credit do you have unused as of now? $1 million for the real estate. No, unused. We have unused for ongoing use, not for the acquisition. Oh, I see. Okay. Yeah. So that's a capital. I understand. Yeah. It's something like $1.5 million to $2 million unused credit line for evolving credit for organic growth. We already checked with the banks in case of a model of acquisition, a profitable company. I believe we can get 50% financing from the bank for the acquisition. Okay. Thank you. Thank you. Eyal, from an investor relations perspective, have you finalized your dates as to when you're going to come to the U.S. to meet investors? Yeah. I think it will be April next year. In between, I will participate in a virtual summit. We will announce on it. I will continue to do ongoing one-on-one weekly meetings with the potential investors. Scott? Yeah. I got it. Thank you very much. You're welcome. Any further questions? No, no follow-up. I'm good. Although I'd like to meet you when you come to the US, for sure. Yeah. We will meet in April. Thank you again for your participation. If you need more details or would like to follow up, please feel free to reach out to us. Thank you. Thank you. Bye-bye.