Good day, welcome to the iAccess Alpha Virtual Best Ideas Summer Investment Conference 2026. Our next presenting company is BOS. If you'd like to ask a question during the webcast, you may do so at any point during the presentation by clicking on the Ask Question button on the left side of your screen. Type your question into the box and click Send. I'd now like to turn the floor over to today's host, first, Eyal Cohen, CEO of BOS, who has led the company's strategic direction for seven years. Joining him is Moshe Zeltzer, BOS' Chief Financial Officer, who oversees the company's financial strategy. Please go ahead. We are excited to participate in iAccess Alpha Investment Conference for the second time. Before we start the presentation, I would like to give a brief on BOS. BOS integrates supply chain technologies for defense manufacturers and retailers. BOS has delivered 21 consecutive profitable quarters with $51 million in revenue, $3.6 million in net income, and $4.6 million in EBITDA in 2025. With a solid balance sheet with $30 million in equity, $10 million in cash, and less than $1 million in loans. In a moment, we will play a 10-minute video presentation that we have carefully prepared for this event. It covers who we are, what we do, our financial performance, and where we see BOS heading. Once the video concludes, we will be right here to answer any questions you may have, whether on strategy, financials, operations, or anything else on your mind. Let's begin. At BOS, 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 BOS a broad and complementary platform, one that allows us to serve clients across multiple touchpoints in their operations. BOS 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 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 BOS, 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. BOS 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, 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. 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, we are maintaining our net income target of $3.6 million for the full year. BOS 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 BOS currently trades at book value. The Russell 2000, the index of small cap companies we are measured against, trades at approximately 2.6 times book value. Our price to earnings ratio stands at roughly nine times, compared to 21 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, calls like this one are part of that effort. Thank you for watching. Good afternoon, everyone. My name is Toni McLaughlin. I am the director of communications at Allele Communications, I am going to run through these questions that came in through the chat, to the BOS team here. Let's go ahead and get started with some questions that I see here. Eyal, let's start with you. Could you please tell us a little bit about yourself, when you joined the company, in what role, and what is your professional background? Thank you. In my background, I am an Israeli and a U.S. CPA. I worked for several years at PwC, and since 1997, have played varied financial roles in Nasdaq companies. I joined BOS in 2003, and since 2019, I've been serving BOS as the CEO and member of the board of directors. Amazing. Thank you. All right. Let's go to the next one. Can you give us a sense of how the three divisions, robotics, RFID, and supply chain complement each other? Yeah. BOS integrates technologies that improve the efficiency of inventory, production, and logistics. The initial point usually is when our supply chain division embeds our franchise components into the client's product during the development It continue when our robotic division offers robotic cell for manufacturing the client product. Thereafter, our RFID division marks and tracks the product through the production and logistic phases using RFID, and at the end of the line, it provides automatic packing and sorting machines. This is the exact cycle that you saw in the presentation. Mm-hmm. Thank you. Another one here, where is the company physically located? First, we are located in Israel in one site, 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. Wonderful. Which portion of your business is defense related? Yes. Approximately 65% of our business serves the defense segment. Most of our supply chain and robotic divisions revenues are associated with the defense segment, while our RFID division engage mainly with retailers. Because of that, recently we have engaged a specialized consulting firm led by IDF veterans to expand our RFID division into Israeli defense sector. Great. Another one here, what is the profile of your revenues and what portion of it is highly predictable? Great question. More than 80%, more or less, of our revenues are predictable. A major portion of our products is defined as consumables for our clients versus CapEx, capital expenditure. For example, let's take an example. The electronic components that our supply chain division sells to our defense clients are embedded in munition, which are consumables, hence the orders are highly repeated and highly predictable. On the other hand, the robotic cells of our robotic division are defined as a capital expenditure, CapEx, thus we have very low visibility into the timeframe of new orders. Thank you. Here's a good one. It says, "You've doubled your engineering team and tripled the number of manufacturers you represent over the past two years. What drove that decision, and what does that mean for future revenue? Yeah, while our clients develop new product, our sales engineers offer the client our relevant franchise component. Once our component is approved by the client and the client's product goes live, we get orders according to our client's production rate. Because of that, we tripled our engineering team over the past two years, and it played an instrumental role in our growth. Thank you. Okay, this one definitely knows what's going on here. It says, "You serve global defense leaders like Elbit, IAI, and Rafael, and their subcontractors in the U.S., India, and Europe. How does that network actually work as a launchpad for global expansion? Typically our client in Israel, the defense manufacturer uses subcontractors for the assembly of the product. Those subcontractors have to buy our franchise components from us, as they are part of the product bill of materials. As a result, we received $7 million in orders from subcontractors in India and the U.S. in the first five months of 2026. This is a business model. Thank you. All right. This one, a good question here. It says, "It seems like defense automation is a key focus for the robotics division. Why defense specifically, a sector that is traditionally conservative about adopting new technology? Sorry, can you repeat on the question, Toni? Absolutely. It says, "It seems here like defense automation is a key focus for the robotics division. Why defense specifically, a sector that is traditionally conservative about adopting new technology? Yeah. The defense segment is defined by us as in the strategic plan that we prepared as a heavy consumer of automation. Actually, they have no choice. They are facing resilient demand, short lead time, and the shortage of employees, and this is exactly the segment where we will focus or should focus our resources. Another question here. Elbit Systems is your flagship robotics client. How dependent is the division on Elbit, and what is your strategy for broadening the customer base? Yeah. Elbit is a major client of our robotic division, and it's great. Recently, we received an initial order from Rafael, another leading defense manufacturer. We are in initial sales processes with IAI within the robotic division. By the way, the IAI and Rafael are also the main client of the supply chain division. We think by the end of this year, the robotic division will have a footprint with the key players in the Israeli defense segment. Nice. All right, another one here. It says, "Revenue grew from $33.6 million in 2021 to $51 million in 2025. Can you walk us through what drove that growth? Yeah, sure. There are three pillars behind our growth. First, increasing the number of manufacturers we represent, so it increase our product offering, solution offering. Second, tripling the number of our sales engineer in order to support all the manufacturers we represent. Third, the resilient demand in the defense segment. Those are the three pillars. Thank you. It seems like a follow-up to that question. It says, "Are those demands sustainable? Hey, great question. I believe that the strong demand will continue for several years for three reasons. First, after three years of intensive conflict, the Israel Defense Forces have to replenish their empty warehouses. Second, the new perception in Europe, driven by the conflict with Russia and the lack of confidence in NATO, is pushing countries in Europe, especially Germany, to significantly increase their defense budget, and I believe the Israeli defense industry will gain a significant portion of those budgets. Thank you. All right, it seems another follow-up question here. It says, "Eyal, you mentioned that you'll exceed last year's $ 51 million. What gives you that confidence? It's simple, because during the first quarter, we sold 11 million total, about 11 million. Our backlog at the end of the first quarter amounted to $31 million. By the end of the quarter, we have secured approximately $42 million in revenue, it makes sense that we will exceed the $51 million in the year 2026. All right, switching gears here. This question says, "The dollar depreciation against the shekel is pressuring profitability. How are you managing that, and what's your hedging strategy? Okay, I take that. Most of our sales are quoted in US dollars, we buy most of the products in US dollars. Most of our operational expenses are in Israeli shekels. The devaluation of the US dollar against the Israeli shekel increases our operational expenses and pressures our profit margin. Since we believe that the 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. The second, increasing our selling 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. Wonderful. Thank you, Moshe. Another question here, coming back to something you mentioned earlier. It says, "You cited rising global defense budgets as a structural tailwind. Which geographies or programs are you most focused on? Our key territories are India. Global territories are India and the U.S. In the first five months of 2026, we got $7.1 million in orders from those territories as compared to only $1.5 million in the comparable period last year, which was a record year last year, 2025. Most of our programs are currently related to Israeli projects, but with the support of the office we launched in India a few months ago, I believe we will also secure programs in India that are not related to our Israeli clients. Thank you, Eyal. Another one here, it says, "You are targeting acquisitions of up to $20 million with no shareholder dilution. Can you say more about what kinds of companies you are 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. This is the first and most important condition. The second condition is a synergy with our core business. We currently have several opportunities on the table, and we will share with you once we decide. Thank you. A question here, Moshe, this one might be for you. It says, "Why use only half bank financing for acquisitions? Is that a policy, or is it driven by current market conditions? Our financial model is based on three principles. One, no dilution for the shareholders. The second, leveraging the $10 million in cash we have on hand into $20 million in investments from bank loans. The third, we can use the bank loans because the target company shall be profitable, and it will allow us to finance 50% from the acquisition by bank loans. Okay, great. Thank you. Then another question here. We'll get a few more, and then we can wrap it up. It says, "You trade at book value while the Russell 2000 trades at 2.6 times. What do you think is the single biggest reason for that discount, and what will close it? This is a big question. Great question. The major point, I believe, is the exposure. There are thousands of companies listed on the Nasdaq, and we need to grab investor attention for our story. It's very challenging. For that, we hired an IR firm for the first time in year 2025, recently we changed our strategy toward digital marketing as opposed to the legacy method. For that purpose, we hired the Recommunication, which specialized in digital marketing for investors. Hopefully, it will yield a higher exposure. Thank you very much. Let's go through these last few questions here. I'm seeing one that says, "What is the floated number of shares? We have about 7 million outstanding shares, all of which are floated. Okay. Another one here, it says, "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. Okay, "Do you have any research coverage? Yes. Just recently we have been covered by A.G.P., and I am very pleased with that. Yes. The last two questions here. First one being, "What is the target price for BOS? Oh, yeah. The target price according to A.G.P. is $8, which is double than what we are currently trading. Noted. Let's wrap it up here with this final question that I see. I know that we are not getting to all the questions today, but let's end here with this one. It says, "What is your message to investors who are hearing the BOS story for the first time today? First, welcome. The investment risk in BOS is relatively low, and 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 with $10 million in cash, less than $1 million in long-term loans, $30 million in equity, and most of our business tied to the growing defense segment. The upside is the valuation. We trade at book value, and if we take off cash on hand, our enterprise value is less than $20 million. I believe that this is the exact definition of upside. Yeah. Wonderful. Eyal, Moshe, thank you so much for your time here today. I see that there are a few other questions that we can't get to, but we'll be sure to follow up. If anyone joining is looking for more information, you can visit the company's website at boscom.com. Thank you everyone so much for joining. Really appreciate your time and looking forward to keeping that conversation going. All right. Thank you very much. Thank you. That concludes Better Online Solutions' presentation. You may now disconnect. Please consult the conference agenda for the next presenting company