So good morning, and thank you for making the time to join our full year 2025 results call. Joining me is Mr. Moshe Salzer, our Chief Financial Officer. And I'm pleased to report that '25 was an outstanding year for Bosch on multiple metrics, and I'm grateful to our team for the hard work and commitment in achieving these results. We delivered strong revenue growth throughout the year, setting multiple record quarters and increasing our outlook 3x. Ultimately, we completed the year '25 growing 27% year-over-year to a record $51 million in revenues -- and our net income grew year-over-year by 57% to a record $3.6 million, demonstrating our ability to drive profitable growth leverage in our model. Even with this growth, we exited the year with a substantial contracted backlog of $24 million, giving us good visibility into the year ahead. Looking forward, I want to share the key trends that shape -- that will shape our trajectory in 2026. Demand in the defense sector remains robust and is expected to continue driving growth in our Supply Chain and Robotics division throughout the year. We maintain strong backlog visibility and healthy customer relationships across this segment. Alongside that, we are taking steps to extend our geographic reach. In March 2026, we appointed an Indian company to represent Bosch in the Indian market as India is emerging as a growing subcontracting hub for global defense programs. This is a meaningful step in our global expansion strategy. On the product side, our organic growth model is built around continuously broadening the portfolio of manufacturers we represent and embracing the new technologies they develop. Because our manufacturing partners invest heavily in next-generation solutions, we benefit from self-relenishing flow of innovative products to bring our clients. Turning to our RFID division. The ongoing…

Congratulations on a really good year. This is Todd Felty. I was wondering if you could talk about the current conditions over there and how you expect your business impacted if the war, let's say, last another 30 days compared to what happens if it drags on for another 6 months with your various divisions.

Yes. So thank you, Todd. First, most of our business linked to the Defense segment. As you know, the supply chain, which was -- which is a primary growth driver of both -- most of its business is related to the defense segment and the Robotics division as well. So in that aspect, if the war will continue, it will positively affect the growth of those 2 divisions. In regard with the RFID division, currently, it's very sensitive to the geopolitical tension. And if the war will continue, it will negatively impact its business. But as I mentioned before, we are working to shift our sales resources and business development resources towards the new segments which are less sensitive or even the opposite are growing in such period like the hospitals in Israel, defense as well, but we will focus on the hospital segment in Israel. In addition, as you know, if the war will continue, we learn how to work with that. The economy will gradually return to its normal course of business despite several attacks a day. It's not new for us. We are in this situation for 3 years. And still, we are doing good. But hopefully, it will be ended.

Okay. And there was a gentleman who asked a question in the chat, which is I thought a good question. He spoke about the growth rate you've achieved and why there is no growth anticipated in the guidance. I think your guidance is for $51 million, and that's basically what you did last year. So can you kind of give us some insight on that? .

Yes. First, we reached to a record level of revenues, $51 million revenues, compared to $40 million revenues in the previous year, it's phenomenal. Our revenue growth depends on the consumption of our components by the different segment, mainly and the Israel aircraft industry, and there are 100 subcontractors around the board. I believe that there is high potential for continuing growth because the warehouses are empty. But we currently have and at the end of year '25, we have like $24 million backlog, which covers 50% of our outlook for year '26. So we have to be -- as we did all the time to be conservative. And we will update, I believe we will upgrade the outlook quarter-by-quarter. According to the progresses. And we have to remember that we are in a very sensitive period in geopolitical tension. Every day, there are news and we have to be a little bit conservative. And I think that still with $51 million revenues and the $3.6 million net income and all the ratios that I illustrated before, that was illustrated before, compared to the index to the Russell 2000 Index, we -- there is no need for any growth to justify this current valuation. I think we are undervalued with the $51 million revenues and $3.6 million net income, and there is a great upside.

Okay. My last question is just on the M&A front. I see your cash position is up to $11.8 million, can you just kind of go over your M&A strategy? I believe in the past, you plan there would be no dilution on any M&A that you did and that any acquisitions you did would be immediately accretive to revenue and earnings. Is that still the case? And do you plan on investing some of that cash maybe in short-term notes or securities if there's no M&A on the immediate horizon.

Yes. So first, as we have the $12 million cash in hand, I think there are opportunities of M&A are increasing because we can acquire a larger company that can move the needle. So it's great -- it's a great tool to have on hand, and we have several acquisitions that we are evaluating. Hopefully, we will close an acquisition during the year '26. Until then, we invest the cash on hand on on security funds. And that bear like 4% to -- 4%, 5% interest per year, something like that. So the money is working and waiting for utilization. And regarding the dilution, it's not on the -- it's not included in the plan. There is no plan for dilution with $11 million to do an acquisition, it's nice acquisition. And if we want to increase it, we can leverage it with the -- if it's a profitable company, we can leverage it with bank loans, long-term bank loans and together to reach to a significant amount of acquisition. It could be one, it could be two, so I don't expect for any dilution in that aspect in M&A in -- by the way, in any other aspect as well.

I have 2 questions. This is Scott Weis. How are you?

Fine. Thank you, Scott.

Good. Thank you. Regarding India, can you comment on if you've seen revenue in India to date? And what kind of numbers are you expecting for 2026? We see flow of revenues from India. We saw flow of revenues in year '23, in year '24, in -- and we opened the -- we established the officer, the agency there in order to urge it and to have more foot on the ground in India in order to increase this number. we didn't provide any outlook for how many revenues, but hopefully, it will increase significantly. During the year, it's not investment for 1 year, it's for long-term investment, and we will expand our investment in India as its progress -- according to the progress. so this is the -- our addressable market overseas. Can you share 1 or 2 of the larger customers from the Indian markets?

Yes. we are -- our clients, I believe, the biggest -- 1 of the biggest -- or the top 5 subcontractors of assembly subcontractors of electronic systems. They are working with the II. They're working with the Boeing, they are working with a global organization. Among the names are Cosmos, Vinas, DCX. I believe there is a long list of subcontractors that we have not reached yet. And this is a primary reason for having foot on the groud in India in order to go to visit more manufacturers, more assembly company and to start to do business with them because if we have a good offering for 1 -- for the competitors. So I believe we can increase ourselves we can increase our client base in India with the same offer.

My second question is regarding the RFID investment, what kind of investment spend are you expecting to add to the hospital market?

What kind of investment.

Both.

According to the initial plan, I believe it won't be a significant amount in the size of both, but it will be a significant amount for the RFID, it could be around $800 million to -- it could be -- in share, could be like $300,000 in year '26. And then in year '27, this new segment will be in breakeven and in year '28 to start to be perfect. But it is for the long term because in the intervision every time there is a geopolitical tension, it got impacted directly and immediately. So we have to -- and because we don't believe that in year -- going forward, there will be a long-term peace period. So we have to be ready for that, and we have to do this move.

Do you have existing relationships in the hospital segment?

Currently, no. But we have several candidates that we can hire with the related connections. By the way, it could be also through M&A of companies that are already in that field, and to use our system to support the sales and the sourcing of the product to this segment.

Okay. My last question is regarding the guidance. I realize we've been, but the guidance suggests that you've seen a slowdown. And I just want you to flesh that out a little bit. Have you seen any changes from Q4 to Q1 to where we are today?

No. The opposite, I see that the backlog increased. The backlog of the group increased in the first quarter.

Thank you very much.

You are welcome and hope to see you soon in Israel, Scott.

Hello. This is Igor oarletzo. Good afternoon and good morning for me. I have a question, and I think somebody else had the same question about your guidance. So you're projecting the same revenue and the same net income as you had this year. So I understand the revenue part, the net income was affected by 2 things this year, which I assume will not be going forward or maybe it will be. The second part, you paid no taxes are going to pay the taxes next year. So maybe you can just walk me through and say, on the EUR 51 million, how do you get exactly the same metric 1 you had 2 significant items affecting it this year.

Yes. Thank you for your question. I think that Moshe described that we had to point that was impacted year '26 report. And Moshe can return on what you just said regarding the currency exchange, the weakness of the dollar and what what was the impact in '26 is 5%? And what do we expect in year '26?

Yes. In the financial income, in 2025 cause of the Bonacia in Jan, we accepted that our Israeli shekel dominated operating expenses to increase by approximately $600,000 in 2026 compared to 2025. So another effect of the weakness in 2025 was $800,000 in nonrecurring currency exchange income we recognized last year, which arose from the a revaluation of the denominated balance sheet items following the sharp dollar decline. This gain is not expected to repeat in 2026. So the about the impairment of the goodwill, it will offset by the impact of the Israel retains the dollar, which is not supposed to impact in '26 like it was in 2025.

So I agree. In summary, there was a charge of $1.2 million of goodwill in 25 million that we don't expect -- you're right. We don't expect it to recur in '26, okay? But on the other hand, there were some benefits in year '25 if that in the -- because of the weakness of the dollar, the operational expenses in year '25 will be higher by $600,000 than it was in year '25 because we opened the year at 26 with a very low currency rate of 3.1 million is per dollar as compared to something like 3.5 per door at the beginning of year '25. So we expect higher operational costs on by $600,000. And another thing that we recorded the year 25 financial income because of the weakness of the dollar of $800,000. And as long as the currency exchange rate of 26 will remain at 3.18%, we don't expect to record the same income. So the benefit in the currency exchanges in and offset by the goodwill impairment in year '25. So who you compare -- you can easily compare the years of '25 and '26, okay?

Okay. My other question is, it's a little bit difficult to break down if you're paying any taxes. And I know you referred to that you have a tax carryover build unrealized losses. So could you tell me what you expect your taxes are going to be like this year and next year?

Yes. We have a plan to -- the taxes are a little bit tricky because the taxes we're going to use to utilize all the carryforward taxes in both the parent company by the end of year '26, and all of it recorded as an asset in the balance sheet, but we see a level of tax assets in tax carryforward losses in the subsidiary of division that we want to utilize, and we are considering different kind of solution tax solution for that in order to utilize it. because so that all the profit of all the group will be offset by the carry taxes losses of the elevated division. So we don't expect to have any significant tax expenses in year '26.

Okay. And for your '27 is it a little bit too early? Or are you also saying that the taxes keep on carrying over into the next years?

Can you repeat, please, again?

For year '27 going forward, do you see that you're going to still have tax carryovers in your divisions? Or it's probably going to expire?

No, no, there is no expiry date for those losses.

I mean it was that sorry.

Okay. If you will utilize -- if you will execute the tax planning as we wish. I believe we won't have tax expenses in the coming -- in the several coming years.

Okay. And my last comment, when you cannot have to take us a question. you referred to in this call agrees with this. I think there is no better way to more buyback or to have the executive buy some of your own stock because I think it would benefit everybody. So this is just a comment. And I don't know if you agree with this, but that would be, I think, many people's minds.

Yes. I think because we have just $11 million, and we are a very small company -- we have to invest this money by acquiring company in order to support the growth of the company and not to do an artificial financial act to support the stock Personally, I don't believe in in buyback stock, it didn't impose itself according to what I have read in during all the years. And we are very small to activate such plan. companies in big sites that have hundreds of million on cash on hand, they can do it. They can allocate part of it just for public relations. We don't have the space for it. We have to -- we work very hard to gain this money. And we have a lot of opportunities for acquisitions. And I believe this is the best thing to do for the company for the long term. Regarding buying stocks by the officers of the company, I think I can tell you, I know what are the compensation package of those officers. I think they cannot afford to do buyback. They are not -- they don't have a compensation -- huge compensation that they can allocate it. The part of their compensation, its options instead of cash bonus. And I think it's a sign of support from the officer that they believe in the company.

I have a question. It's James -- can in New York. You were talking about India, and I was a little unclear. You said that if I understood it, there were revenues in '23, '24 to '25 in and you're expecting India to grow. But can you quantify how much of your revenue came from India in '23, '24 and '25.

Several million dollars. It's around $3 million on average during that year -- in those years. And we expect to -- following the trends in the market and following our investment in India to grow significantly during -- gradually during the years. Any further questions? Okay. So thank you all for your thoughtful questions today. They reflect exactly the kind of engaged dialogue we value with our investors. Let me close with the final thought, year '25 was a milestone for both record revenues, record net income and record cash on the balance sheet. We enter 2026 with a strong foundation, a clear strategic road map and a team that has demonstrated its liability to execute. We are committed to delivering long-term value for our shareholders. And I look forward to continuing that dialogue with you. Thank you again for your participation, and please feel free to reach out at any time. Have a great day. Thank you.