Welcome everyone, and thank you for joining B.O.S.' virtual investor event on strategy, execution, and financial discipline. Today's conversation is designed to give you a concise and candid look at how B.O.S. is executing in 2026, converting their backlog into revenue, strengthening its supply chain platform, and driving profitability across aerospace, defense, and industrial and retail markets. We will touch on the composition and quality of B.O.S.' backlog, recent order activity in key geographies, and how operational discipline in the Supply Chain Division supports both growth and the margins. We are going to also look ahead to what investors should think about in the coming quarters. With that, I am going to turn it over to our speakers to introduce themselves, starting with Eyal, and then we will go to the rest of you. Eyal, will you kick us off, please? Thank you, Toni. Eyal Cohen, I joined the company 20 years ago and acting of the company CEO in the recent five years. Hello. Hi, my name is Avidan Zelicovsky. I am currently the President of the group. I am also the CEO of the Supply Chain Division, which is about 20 years. Before that, the Supply Chain Division bought the company, B.O.S. Odem, which now I am in the industry for the last 30 years. Hi, I am Moshe Zeltzer. I am the CFO of the group, and I joined the company five years ago. Perfect. Eyal, will you give us a brief introduction here before we get started and kick off the presentation? First, thank you for joining B.O.S. first Investor Summit. Before we start the presentation, I would like to give a brief on B.O.S. B.O.S. integrates supply chain of technologies for defense manufacturers and retailers. B.O.S. has delivered 21 consecutive profitable quarters with $ 51 million in annual revenue, $3.6 million in net income, and $4.6 million in EBITDA. A solid balance sheet with $ 30 million in equity, $10 million in cash, and only $1 million in loans. In a moment, we will play a 10-minute video presentation that we have carefully prepared for this summit. It covers who we are, what we do, our financial performance, and where we see B.O.S. heading. Once the video conclude, we will be right here to answer any questions, and have open discussions. Let's begin. At B.O.S., we're built around one idea, that supply chains can be smarter, faster, and more efficient, and that the right technology makes that possible. We pursue that idea through three specialized divisions, each one tackling a different layer of the supply chain challenge. Our Robotics Division replaces manual labor with automated solutions, transforming how inventory is handled. Our RFID Division brings precision to tracking and end-of-line automation, from sorting to packing across the entire supply chain. Our Supply Chain Division works even closer to our clients, integrating our franchised electromechanical components directly into their products. Together, these three divisions give B.O.S. a broad and complementary platform, one that allows us to serve clients across multiple touch points in their operations. B.O.S. is led by an experienced executive team of eight and a board of four, including a former head of procurement for the Israel Ministry of Defense. Given our technology focus, we have two dedicated CTOs, one for Robotics, one for RFID. In total, we're a team of 80 professionals, with 30% being engineers and technicians. Let's look at each division in more detail. Our Supply Chain Division integrates franchised electromechanical components directly into the products of leading defense and high-tech companies. Our engineers work hand in hand with our clients' R&D teams, ensuring seamless integration that generates long-term OEM revenue as those products move into production. The growth driver here is simple. The more components we embed, the more we grow. That's why over the past two years, we've doubled our engineering team and tripled the number of manufacturers we represent. We're proud to serve global defense leaders Israel Aerospace Industries, Elbit Systems, and RAFAEL, along with their hundreds of subcontractors across the USA, India, and Europe. This network is our launchpad for global expansion without the need for costly overseas offices. Our RFID Division delivers end-to-end supply chain automation for logistics centers, covering inventory tracking, automated sorting, and automatic packing. We create real-time inventory visibility by connecting warehouse operations directly to our clients' ERP, WMS, and MES systems. Our integrated platform combines ruggedized industrial hardware from Tier 1 manufacturers like Zebra Technologies and Honeywell with our own proprietary middleware software. Beyond tracking, we deploy complete turnkey automation, automatic sorters, carton packing machines, robotic palletizing, and pallet wrapping, enabling fully integrated order fulfillment. Our business model is built for predictability and scale, recurring revenue from annual service contracts, ongoing consumable sales, and expansion revenue as clients grow to new facilities. We serve top-tier enterprises across Israel, including Shufersal, IKEA, and Teva. Our Robotics Division designs and deploys custom automation solutions, replacing labor-intensive processes with precision robotics and automated machinery. Our engineers evaluate client production lines, identify automation opportunities, and deliver a complete proposal from concept design and cost breakdown to ROI projections. Each robotic cell we build is fully integrated. Robotic arms, custom grippers, proprietary peripheral machines, and end-to-end electrical and software systems. Over the past two years, we've strategically focused on the defense industry, a sector that still relies heavily on manual labor, yet faces growing pressure for speed and quality. That's a powerful tailwind for automation. Our flagship client is Elbit Systems, one of Israel's largest defense manufacturers. We've successfully developed and installed robotic production lines at Elbit Systems sites worldwide. Though due to confidentiality, we're unable to share footage of those systems. With this offering in mind, let's turn to the financials and where we see growth. When we talk about growth at B.O.S., we think about it in two ways: organic growth, building on what we have, and strategic acquisitions that expand our reach. Over the past four years, the story has been primarily organic, and the numbers speak for themselves. Revenue grew from $33.6 million in 2021 to $51 million in 2025. That is meaningful, sustained growth built on real demand from real clients, and we believe that demand is only accelerating. Three tailwinds in particular give us confidence. The first is the global increase in defense budgets. This is not a short-term cycle. It is a structural, long-term shift in how governments around the world are prioritizing security. B.O.S. is well-positioned to benefit from this trend for years to come. The second is closer to home. The replenishment and expansion of the Israel Defense Forces inventory, driven by the conflict that began in October 2023, has created significant and ongoing demand that directly supports our business. The third is newer and very promising. India is rapidly emerging as a major subcontracting hub for global defense programs, and the numbers are already telling that story. In the first quarter of 2026 alone, we received $3.3 million in orders from Indian customers, compared to just $172,000 in the same quarter last year. To capture this momentum and build on it, we appointed an Indian representative company in March 2026 to establish a dedicated presence in that market. We are only at the beginning of what we believe is a significant long-term opportunity. Alongside organic growth, we are actively building our acquisition pipeline, and we have the financial strength to act on it. Our balance sheet is solid. Shareholders' equity stands at $29 million, and we hold $9.5 million in cash net of loans. That gives us real flexibility. We are targeting companies valued at up to $20 million with two non-negotiable criteria. First, financial strength, a proven track record of profitability and consistent growth. Second, strategic fit, companies that deepen and expand what we can offer to our existing clients. On the financing side, approximately half of each acquisition will be funded through long-term bank loans, with the remainder coming from our own resources. I want to be clear on one point. No shareholder dilution is expected. Let me now turn to where we stand heading into the rest of 2026, and the picture is an encouraging one. When we combine our backlog of $31 million as of March 31st, 2026, with Q1 revenues, we are already at $42.4 million, 83% of our full year 2025 revenues. As a result, we expect to exceed year 2025 revenues that amounted to $51 million. The depreciation of the US dollar against the new Israeli shekel is creating pressure on our profitability, and as a result, we are maintaining our net income target of $3.6 million for the full year. B.O.S. is a company with a growing backlog, accelerating revenues, a clean balance sheet, and exposure to some of the strongest structural trends in the global economy: defense spending, automation, and supply chain modernization. Yet B.O.S. currently trades at book value. The Russell 2000, the index of small cap companies we are measured against, trades at approximately 2.4 x book value. Our price to earnings ratio stands at roughly nine times, compared to 20 times for the index. We believe this gap exists primarily because not enough investors know our story yet. That is what we are working to change, and calls like this one are part of that effort. All right. We're back. Let's go ahead and jump into some questions that I have and then some questions that have come in through the chat. Let's start here. In one or two sentences, how would you describe what B.O.S. does today for aerospace defense, industrial, and then retail customers? Yeah. In one sentence, B.O.S. leverages cutting-edge technologies to optimize supply chain operation through its three business divisions, the Supply Chain Division, the Robotic Division, and the RFID Division. Can you give us a sense of how these three divisions complement each other? Yeah, sure. B.O.S. integrates technology that improves the efficiency of inventory production and logistics. The initial point is when our Supply Chain Division embeds our franchise components in the development process of our client's product. It continues when our Robotic Divisions offer robotic cell for manufacturing the client's product. Thereafter, our RFID Division marks and tracks the product through the production and logistics phases using RFID, and at the end of the line, it provides automatic packing and sorting machines. Wonderful, thank you. Avidan, this one might be for you, but how would you describe the Supply Chain Division in one sentence, and then the main problem that you solve for customers? Well, generally, our customers come from the technology sector, mainly defense and aerospace, which we are in the last 25 years focused on. Not only, we also supply to the high level medical, industrial, and other tech. What we do supply is components of various technologies which include sensors, displays, electromechanical, GPS navigation components, and others. Our base is with engineers, which goes to the R&D engineering team in the tech industry and help them design the components in which we work closely with partners and distribution centers, which includes huge companies such as Amphenol Aerospace, all are traded in the Nasdaq, Collins, Sensata, Fischer, and we distribute their product and help design sell their components. It varies from U.S. companies to European companies to Asian companies. We have a big variation, which we go to customers and help them design their product. Wonderful, thank you. Taking a step back here, where is B.O.S. physically located? Hi. We are located in one site in Israel, and we use 3,000 sq m to operate our business. In addition, we have two sales offices, one in India and one in the U.S.A. to serve the global operation of our Supply Chain Division. Great, thank you. What portion of this business is defense-related? Yeah, that's a great question. Approximately 65% of our business serves the defense segment in general. There is a varied exposure among our three divisions. Most of our Supply Chain and Intelligent Robotics Divisions revenues are associated with the defense segment, while RFID Division engages mainly with retailers. We are in the process of transitioning a significant portion of the RFID Division to the defense segment. For that purpose, we have recently engaged a specialized consulting firm led by IDF veterans, Israeli Defense Forces veterans, to expand the RFID Division into the Israeli defense sector. Got it. Thank you. I know some of these questions, some current investors might already know the answers, but want to make sure that we answer all these questions for any potential investors who might be watching or anyone new to B.O.S.' story. Let's go this direction here. What is the revenue profile and what portion of it is highly predictable? I will take it. More than 80% of our revenues are predictable. A major portion of our product is defined as a consumable for our clients versus CapEx, capital expenditure. For example, the electronic component that our Supply Chain Division sells to our defense clients are embedded into munitions, which are consumables. Hence, the orders are highly repeated and highly predictable. In the RFID Division, the annual service contracts for equipment and software and the printed materials like ribbons for industrial printers and RFID and barcode tags are highly repeated and highly predictable. On the other hand, the robotic cells of our Intelligent Robotics Divisions are capital expenditure for our clients. Thus, we have a very low visibility into the timeframe of new orders from these divisions. From this division, from the Robotic Division. Wonderful. Thank you. Avidan, this one maybe for you here. I know that you've doubled your engineering team and then tripled the number of manufacturers that you represent over the past two years. What would you say drove that decision, what does that mean for future revenue? The Supply Chain Division has a unique, I would say, solution to the customers, which makes our company unique even a little bit in the industry. First, I would like to highlight both Soldier and the Supply Chain Division. We have a very, very strong business development and sense for where the technology will go. For example, in the corona, the medical innovation in Israel to solve medical issues that were raised in the corona, we immediately drove our engineering sales team to medical companies which developed a medical system for that, and we have been growing with that field. In the last years, if you look at what happens worldwide, the air defense became the most important technology in the world. Israel is top number one because they have three variations of technology of air defense. The Arrow missile, which intercepts ballistics. You have the mid one, which is the David's Sling, and you have the short one, which is the Iron Dome. All of which makes above 90% interception. There's a huge demand due to the Russian-Ukraine War and also other tension worldwide, unfortunately. We already inside all these technologies with our components. This means a lot of need for sales engineering for my team, and we have doubled it because there's a big need for a lot of innovations. You have a formula here, which on one hand, we are conservative because we don't use a huge amount of people in R&D because we don't develop. On the other hand, if any success of any technology in the market, we design the components of our partners worldwide, we get the full business of their export and local sale. We sell profit, but we have less exposure to cost affiliated with R&D development. This is a unique version, and we want to be unique in one hand in business development and second with high-level sales engineering. Great. Thank you. A follow-up question to that. I know that you serve global defense leaders like Elbit Systems, IAI, RAFAEL, and their subcontractors in the U.S., India, and Europe. How does that network actually work as a launchpad for this global expansion? Let's take India as an example. India became a very big hub for contract manufacturers, and it's a huge country, which is growing very fast, top worldwide. Israel has a very deep connection to India. We have been, in the last 15 years, took manufacturing sites to India in some areas. The customers in India came to us because we supply to the Israeli-oriented projects, and they come and buy from us. We also, by the way, build up offices in India today. We have office in India, under a company that we serve the Indian market. The companies in India, and also in the U.S., in Europe, Greece, Italy, and even in the U.S., are contract manufacturers of Israeli projects. Iron Dome is being manufactured in the U.S., for example. They buy the components from us because we design. Some of them are customized with our IP with the manufacturer, we have an extra value that they don't supply the catalog item, they supply customized. We have an advantage there. In that field, we have penetrated the global market, aided by the Israeli project. Not only Israeli projects they buy, they also buy some of their other projects locally or outside of the local market. They started to buy more and more components from us due to our service. We also agreed with some of our partners worldwide to sell overseas, and not only in Israel because of our capabilities. You see the result in the last six months, we have been selling worldwide over $7 million, in which the parallel, we've done $1.6 million. That is an effect of this global marketization. We have a good future ahead of us to penetrate more into the Indian market and other markets. Very helpful. Thank you for that information there. Eyal, I think I'll actually kick it to you here for some questions about the robotics sector. I know that defense automation is a key focus for robotics. Back to this kind of line of questioning here, why defense specifically, a sector that traditionally has been very conservative about adopting new technology? Yes. The defense segment is defined by us as a heavy consumer of automation. We can expect that we can increase the visibility of revenues from this segment because it's a heavy consumer of automation. The defense manufacturers have no choice. They are facing resilient demand, pressure for short lead times, and shortage of employees in the production line. This segment is where we are focusing our resources. Okay. Elbit Systems is your flagship robotics client. How dependent is the entire division on Elbit Systems, and what is your strategy for broadening that customer base? That's right. Elbit Systems is a major client of our Intelligent Robotics Division. Recently, we received an initial order from RAFAEL, another leading defense manufacturer in Israel, and we are in initial sales processes with Israel Aerospace Industries, another leading defense manufacturer. I think by the end of this year, we will have a footprint with the key players in Israeli defense segment in addition to Elbit Systems. Great. Thank you. Let's pivot to everyone's favorite. Let's talk about revenue. Revenue grew from $33.6 million in 2021 to $51 million in 2025. Can you walk us through a few things that drove that growth? I think in one word, the defense segment, let's go into detail. There have been three main pillars behind our growth. First, we have increased the number of manufacturers we represent. Second, we have tripled the number of our sales engineers. Third, we have benefited from the strong demand in the defense segment. Great. Do you think that these demands are sustainable? Well, as I've said previously, we are working with the defense sector quite a bit as we worked in the COVID medical system. We see now on the aerospace defense a very strong sustainable for the coming two, three years at least. Why is that? If you look at the global tension, as I said before, now, if you look at what's going on, there's wars coming in Russia, Ukraine, and the Middle East. They use all the warehouse ammunition and air defense. Just to give you a brief recall on this. If you look now at what happens even now today, you see a lot of launched missiles from Iran, but in the end, there's some interception issues in some areas in the Middle East, including the Gulf countries, because they don't have enough interceptors already, which means the U.S. keep their interceptors what they left, Israel has, but there's a big need, and there's also in Ukraine, not enough interceptors. Money is not an issue for the Gulf countries. By the way, also in the UAE, there was an Israeli air defense system, the Iron Dome. What happens now is they will use all their money to buy as much interceptors as they can. There's limited production ability yearly, so they build up more and more facilities to sustain the demand. Therefore, whatever you see now, it actually should be the beginning of what we call a big record sale of air defense, which Israeli is again, number one. That is something we see, of course, sustainable and also penetrating the Indian market and other areas more and more. We believe in this as well. Don't forget, we are very creative, so when there was COVID, we went into more of the medical. We also sell to large names in the industry of the customers. For example, Biosense Webster, we are selling some components. We sell also to HP Israel. They were buying local companies and became HP and became Biosense Webster, and they buy components, design sets from us. We have a bit of what I say, segments that we can play if we see a lower demand in some areas, we will try to see the next future. This is one of our key advantages. Yes, I see sustainable business from the defense, but I also, as a company DNA, being 20 years involved with Eyal together, we always fight to see where we can make more money and see more opportunities. Yeah, we have the sustainability for the coming two to three years. Got it. Great. Thank you. Eyal, I'll kick it back over to you. I know that in the past you've mentioned that you believe that you'll exceed last year's $51 million. Let's talk a little bit about that and really what gives you that confidence. Yeah, very simple. Because during the first quarter, we sold $11 million, and our backlog at the end of the quarter amounted to $31 million. By the end of the first quarter, we had secured approximately $42 million in revenue. It makes sense that we will exceed the $51 million in revenue in the year 2026. Got it. Thank you. Moshe, to bring you back into the conversation here, let's talk a little bit about the U.S. dollar depreciation against the new Israeli shekel and pressures against profitability. How are you managing that and what's your hedging strategy there? Most of the sales are quoted in U.S. dollar, and we buy most of the products in U.S. dollar. Most of our operational expenses are in new Israeli shekel. The devaluation of the U.S. dollar against the new Israeli shekel increases our operational expenses and presses our profit margin. Since we believe that the U.S. dollar will stay weak over the long term, we are working through two channels to offset it. First, increasing revenue on the existing operational platform. And second, increasing our sale margin. In the first quarter, our gross profit margin increased by one point to 24.9% from 23.9% in the comparable quarter last year. Great, thank you for that clarity. Avidan, again, back to you here. I know that you cited global defense budgets rising as a structural tailwind here, and I think we talked a little bit about this, but just to clarify, which geographies or programs would you say that you're most focused on? Well, as I've said previously, India is a very key market. I just have to maybe expand the information about India. India is becoming a worldwide global hub for defense aerospace for few factors. The China market, which was a big CM, contract manufacturer sites, has, from various reason, decreased their position, especially on high-level industrial tech and military aerospace. The Indian market became a safe haven for global companies to come and manufacture high-level technology and the aerospace defense. We have built up, in the last 20 years, the Indian relationship between us. It's very difficult to enter India from various reason. If you do that, if you know how to, what you call, play the game in India, there's a world of opportunities. We have succeeded doing that, and we see that as a firm future. Also we have opened these offices under a company which we started just this year. Also, the U.S. is a prime market. We sell to the U.S., also part of the Israeli relationship and partnership between Israel and the U.S. in aerospace defense. We sell also to Europe. We are going to work also on increasing that opportunities as we have done $7 million as I said in six months versus $1.6 million. We see that as a growing market. As Eyal mentioned, you've seen our backlog, the work all of us do to ensure future. Backlog is future. If you look at investors, they look at every quarter, but if you look at most, I would say one of the most key point is the backlog, and we have a very strong backlog, and we see still that it should be a strong backlog. Many of it also include Indian-based business and U.S.-based business. This is our prime market, India and U.S. Great. Thank you. I want to also make sure that I'm pulling in some questions here that are coming in through the chat. Eyal, this one I'm going to read, it seems like it might be a question for you to answer here, but it says: "You're targeting acquisitions of up to $20 million with no shareholder dilution. Can you say more about what kind of companies you're looking at and how advanced your pipeline is? The first and most important condition is profitable companies with a solid history of profits and a positive outlook. The second condition is a synergy with our core business. We currently have several opportunities on the table, and absolutely, we will share with you once we sign them. Great. Thank you. A few more here from the chat. It says: "Why use only half bank financing for acquisitions? Is that a policy or is it driven by current market conditions? [Okay, I'll take that]. Our financial model is based on three principles. One, no dilution for the shareholders. Yeah, let's start this question again. Sorry. Yeah, no worries. Appreciate it, that was my fault, I forgot. I was just focused on making sure that you guys all had Coke. I wasn't focused on telling you to silence your phone. That's okay. This is for wake up call. It's time to go to sleep now. All right. Let's go ahead and jump here to another question that I see coming into the chat a few more. It says here: "Why use only half bank financing for acquisitions? Is that a policy or is it driven by current market conditions? Okay, take that. Our financing model is based on three principles. One, no dilution for the shareholders. Second, leveraging the $10 million in cash we have on hand into $20 million in investment through bank loans. The third, we can use bank loans because the target company should be profitable, and it will allow us to finance 50% of the acquisition by bank loans. Got it. Another one here in the chat. It says: "You trade at book value while the Russell 2000 trades at 2.4 x. What do you think is the single biggest reason for that discount, and what is going to close it? I think the major point here is, the major word is exposure. There are thousands of companies listed on the Nasdaq, and we need to grab investors' attention for both story, for our story. For that, we hire the IR firm for the first time in year 2025. Recently, we change our IR strategy toward digital marketing as opposed to the legacy method. For that purpose, we hire the Allele Communications, which specialize in digital marketing for investors. Hopefully, it will yield a higher exposure. Yep. Looking forward to a lot more events like this. Okay. I want to get a few more questions here before we wrap it up today. Moshe, let's go to you here on the first one. It says: "What is the floated number of shares? We have about 7 million outstanding shares, all of which are floated. Great. Do you have derivatives? Yes. We have 430,000 option and warrants, with an average exercise price of $3 and an average remaining life of two years. Great. Eyal, what is research coverage looking like? Do you have research coverage? Yes. Recently, we have been covered by AGP. I think the first report initiated three months ago. Great. The target price for BOSC, what is that today? Yeah, the target price, according to AGP, is $8, which is approximately double what we are trading at today. Great. Again, as we wrap up, just a few more questions here. Eyal, maybe you can give us a few of the key priorities for BOSC in 2026. With the 2026 approaching, I am pleased to know that we have already secured 80% of our annual target revenues out of the end of the first quarter. That said, we continue to closely monitor the impact of currency fluctuations on operational expenses, as Moshe outlined earlier. Looking ahead, our primary focus is driving B.O.S. growth through M&A, and I am hopeful we will close at least one transaction before the year end. Great. Then one question I'd like to Can I pop in a second? Yeah. I want to also add on this. Me and Eyal worked together for the last 20 years to make B.O.S. great again, as Trump said. Anyway, we work very hard. We see ourselves as blue collars because we work physically every day, and we like it. We love the job, and we are passionate for the company, as if even if it was ours, we work as if it was ours. This is something unique. We come every day to make this happen, and we truly believe in the future because we have the experience, the managerial experience. We took, at the past, it was a losing company. We took it to make it profitable for sustainable period. We look for the future with all our knowledge and expertise, and we are sure that we will futurally make it again better and better. This is what we aim. This is something that we feel together. That is a great answer to that one. The last question, I was going to say, all of you can comment on this if you'd like, what would your message to investors be who are hearing B.O.S.'s story for the first time today? That's how I'll end it. Especially in the current environment in the market, the investment risk in B.O.S. is relatively low, the upside is relatively high. The risk is relatively low because we have been profitable for 21 quarters in a row. We have strong balance sheet, as I mentioned before, with $10 million in cash, less than $1 million in long-term loans, $29 million in equity, most of our business tied to the growing defense segment. The upside is the valuation. We trade at the book value, if we take off the cash on hand, our enterprise value is less than $20 million. This is for a company with net income of $3.6 million, EBITDA of $4.6 million. This is the exact definition of upside. Great. Any other final closing comments here before we wrap today, do you feel like maybe you've said it all? I think if you look at the three of us, we have something special in our DNA. We wake up every morning even just for the passion of it, not for the money, not for us at least. We do it passionately because we love the business. We come every day, we do our work, and we always look for the future, and we have the passion for it. This is it, something that you might see, if you don't. This is something I think will conclude what we feel. Great. Thank you. Always very important. With that, I think that we can end it here today. Thank you all for sharing your time and your perspectives with us. Thank you to everyone who joined today's virtual investor event. If you have any additional questions or you'd like to learn more, visit the investor section of the boscom.com website. Any other questions, feel free to email the email that will pop up in a second on the screen. Thank you again, and we really appreciate your time today. Thank you very much.