Mobilicom Ltd (MOB) 2025 Q3 法說會逐字稿

Hello everyone. Welcome everyone to Mobilicom Q3 2025 update conference call. A question-and-answer session will follow the presentation. Questions should be raised, through the webinar chat. Please note this conference is being recorded.

We have here online Ornen Kayyam, CEO and co-founder of Mobilicom, and Liad Gelfer, head of finance. This presentation includes forward-looking statement, which are just estimation and not commitments to our operations. We will provide a brief presentation summarizing 2025 Q3 company financial update and company key operating highlights.

I mean now a handover. The call to our CEO Oren Elkkahayyam. Oren.

Please. Hello, everybody. I would like for us to address the report, the webinar format. As you are all aware, we are obligated to report only every six months as a foreign insurer. Yet we see great importance in transparency, constant updates, and the dialogue with our investors. Therefore, we are publishing a quarterly report as we've been doing for the last year.

This time, we are also adding a quarterly webinar to allow another channel to update the investors, share more information, answer any question raised by investors. We see great importance in our communication with both the retail and institutional investors, and we welcome questions and remarks and interaction with our investors.

We have frequent meetings and interviews with investors, financial market experts, research analysts, with about one session to two session a month across different channels, webinars, video interviews, ex in Discord room, Nandi Roadshow and conferences.

Please join us to those channels and share the news with others. To a large extent, we are still a hidden gem on the Nasdaq, and we need any exposure in our. Let's discuss the Mobilicom journey. Mobilicom is a result of dedication and hard work. It didn't happen overnight, and we didn't get here by pure luck.

I would like to present some of the team members. Yossi Segal, which is the co-founder of Mobilicom. Among other things, was in the Israeli Air Force in the Electronic warfare and cybersecurity R&D Center. Later, became a voting member of the US ITEPE standardization body and served in the steering committee of the ITAPE.

Myself I'm a retired officer of the Israeli Air Force from the R&D center, where drones and were incubated and later part of the Israeli NASA sending things to space. Why I'm engineering that? Because many of those. Are, of many of the things that we are doing are closely related to what we are, done in the past.

Our amazing and dedicated mobility management team and our board of directors. If you witness their CV, understand their experience in as leading defense or public companies, you understand that how we got to this, success and milestones at Mobilicom.

And this is a work that we are doing for over a decade. We started our journey with the very with the essential proprietary hardware solution. We continued our journey.

With the cyber security software solution, so you can see that there was A visionary approach and strategic evolution of Mobilicom offering in this market, which is highly correlated to our experience of many years in the Israeli Defense Forces, and IDF, and in the elite R&D centers over there.

Once you dive deeper to the leadership program, you better understand the background that gave us a rare opportunity to identify before others where the market is headed. Another thing that helped us enormously was the work that we've done with governments, understanding the challenges that they see ahead of the market and being innovative in our solution to close the GAAP for those governments. All of that created a forward-looking vision.

Mobilicom is now extremely well positioned to capitalize on the historic moments when militaries and commercial markets are focused on rapidly expanding the drones robotic technology. We are truly at the center of this.

With regard to this quarter, it was a great quarter of continuous execution of our visionary approach. We had a good quarter with about $1 million in revenue this quarter. We maintain a very high growth margin, both for our hardware and our software solution.

I would like to say that 100% of our revenue this year comes from off the shelf product sales to customers. No NRA revenue, no R&D revenue, all pure enterprise, defense, mainly customers. The majority of that. Is coming from the US market, which is our focus for the last few years and we see the results for that. We significantly strengthened our financial position with nearly $18 million in cash in hand right now.

We launched another innovation offering, the secured autonomy framework. We are marketing, that we are making a great progress. With our biggest innovation, the OS3 cybersecurity. Reaching to strategic partnership. And we have launched joint product offering with multiple companies such as arc that have with us a Blue OAS solution.

Bundled with the OS3 cybersecurity. And AI tech, a leading vendor into the US DoD and NAO prime manufacturers. Both have chosen Mobilicom as OS3 as their cybersecurity for the autonomy computer, which is a great proud for us, completing the integration and ready with products to engage with the market.

We scaled our team this quarter with new and experienced US DoD sales members. And new em Europe sales team. Some of our tier one customers are currently shifting to production scale-up. To meet the demand they anticipate from DoD deployments, and this is before program of records are allocated.

We have more leads and prospects in our pipeline with leading players from the industry. We gain more market awareness and credibility as we have more and more units deployed across the USDD via our customer's platform deployments.

We had great feedback for an outcome at the biggest show, defense show in the United States, the ASA show in DC just recently in October. We anticipate more partnership and more design wins out of it.

And I think that this is a great opportunity to thank our team that is working around the clock to fulfill those achievements and others in the pipeline. So now I would like to hand over the call tolia, our head of finance, to review our financial resources for the quarter.

Thank you, Oren.

Our third quarter closed very strongly at almost $1 million dollar revenues, 60% increase over the second quarter we had, and bringing us to total year-to-date revenues of $2.44 million and increased revenues, portion of 65% from the US market, which is expected to for significant increase in the need of drones, platforms and numbers in the upcoming future, as disclosed by recent government statements.

Our confirmed order backlog was $0.9 million, expected for delivery before the end of 2025 and followed with additional orders for tier one customers from the US, Europe, and Asia, which are also expected to be delivered before year end.

Our operating burn rate continues to remain low at about 300,000 per month, which is a result of a low operating cost and efficient cost management. We anticipate to continue to maintain a low burn rate over the next quarter as well.

We closed the quarter with a little bit more than $70 million of cash and equivalents and account receivables. Together we are a low burn rate, we expect this to afford us long cash runway to execute our strategic plans, and continue our organic growth.

We have a clean balance sheet, no debt, no loans, no credit lines, and no convertible debt. Moving on to our equity and cash position. As of October 31, 2025, we had about $11.3 million ADS outstanding. We have 2.8 warrants at the strike price of $5. Fully diluted of $14.1 million ADS shares in the current share price bring us really close to $100 million market cap and we expect even to pass it.

We are glad to announce that all the warrants that were under the January 2024 registered direct offering were exercised. At the end of October, our cash position increased even further to approximately $18 million. We still have $40 million to receive from warrant exercise. We continue to maintain a low band rate of 300,000 per month, which means we can get to cash flow positive run rate faster.

As mentioned earlier, we have clean structure, no debt, no loans, no convertible debt. Sorry. As we indicated over the last year, our goal was to shift to common share trading on Nasdaq. We are glad to update that we are really in the final stage of this process, and we estimate that the final approval for Nasdaq should be received within several days.

This is a wonderful and strategic shift for the company with great benefits. Both for the company and for the shareholders. It will enable access in easier US execution for retail investors, broker, and institution. It facilitated eligibility for some core indexes and ETFs like Russell 3,000 that currently are not enabling and allowing ADR's rated companies to enter.

It expanding potential liquidity and spread benefits, eliminate all these unnecessary ideas, friction and fees. And eliminate, sorry, and eliminating all the confusion and misunderstanding of the conversion between the shares that are presented in these finance channels and the actual number of ideas.

We expected to increase transparency, larger volume, expanding shore order base, and eventually expected increase in our market cut. And important to say that meeting listing criteria of this process done through warrant exercise and NTM funding.

I will now hand off the call to Oren, our CEO to view some other operating achievements.

Orange.

I would like to start with one of the recent announcement that we've made with regard to the new US cybersecurity regulation that was published by the Department of War, just I think a week or so.

And I think that that's an amazing milestone for Mobilicom. You remember earlier that I've discussed and presented Mobilicom's team and our experience across the cyber market, especially working with governments, and the fact that we have developed first to the market, the OS-free cybersecurity solution, and later, the secured autonomy framework.

And that was happening before any other markets. Claire decided to move forward to the cybersecurity segment for the small size drones or robots that we are targeting. And yet, Not long after that, we see that the new resolution of the US, the Department of War, was to change completely.

The cybersecurity. Mechanism that is done today. They are shifting from passive one-time testing of cybersecurity and mandating, again, mandating the shift to online dynamic cybersecurity solution that will run all the time on every defense system, including drones, robots, and autonomous platforms.

And that's in complete in line with what 03 is all about, which is providing online immediate, identification, monitoring, and prevention of cybersecurity threats and vulnerabilities evolving on autonomous platforms. So, we are proud again.

To some extent, be able to understand how the industry will evolve through the work with governments and be ahead of the market with this innovation and then be able to meet the needs of the market and the Department of War.

Bear in mind that in line with other cybersecurity initiatives, it's expected that the due date to complete that is by September 2027, which is less than two years from now, which means that all the companies and big vendors and audiences serving.

The DoD, especially under the drones robotics, have to meet that in a very short time frame, and therefore, more than anything else, it will push them forward to seek for partners that can solve the problem for them and help them meet.

This new regulation, mandatory requirement. And Mobilicom currently is the sole player with solution in the market. The defense markets, cybersecurity solution, in general is a market that is projected to reach $79 billion by 2033, and we are sitting on a great position to capitalize on this great innovation.

Let's discuss some of the other key operating highlights from the quarter. So, earlier in the quarter, in the 3rd quarter, we have published the fact that our biggest customer, tier 1 player in the United States, which is, by the way, one of the biggest, if not the biggest, tier 1 player.

Of, in the drones, robotics and autonomous platform across the United States, both in defense and commercial market, have issued a PO that in the beginning was 1.4 and then was increased to almost $1.6 million to enable the acceleration of manufacturing in view of the Department of War deployment acceleration that they requested from them.

If you compare that to previous purchase orders made by the same customers, all were around $200,000. So, the jump to $1.6 million dollar roughly. Is 8 times of the quarterly one and bigger than any quarter before, which gives some indication on the acceleration which is expected going forward.

We've seen recently amazing publication by the Department of War and the Army stating that their interest is to deploy 1 million small drones in 2026 and then continuing the pace of 50,000 to 1 million units. On a yearly basis, which is an amazing staggering number in comparison to maybe 10,000 units or lower than that across the entire players today in the industry, if we estimate that.

And that jump came to close the GAAP with Russia and China and Iran that are producing in millions on the early days. So we say that is a great sign that as the United States accelerates deployment.

And the department of 4 accelerates. The partners that we work with receive purchase orders for that acceleration and therefore Mobilicom received purchase order for acceleration. And we anticipate that once some of those customers Program of records that will be increased dramatically.

The second publication that we made this quarter is expanding with the Israeli biggest tier one player with a new design wing, a new platform for remote control weapon system. This solution includes our controller solutions, the 10-inch controller pro, which is deployed with the system.

In that case, They are starting to deploy and fill it with Asian customers, large nation, and they anticipate that as the project will scale, production and needs for that will scale as well. The others mentioned are pivotal shift from ADF direct ordinary shares listed on the Nasdaq, which has great benefits for the company, for the shareholders, and we believe that it will lead much more, I mean, will increase in volume and so forth, and that's an important milestone that we promised in the past and we are fulfilling as we speak and very close within days, we believe, to close that.

Secured autonomy, the framework that we released is yet again another innovation of Mobilicom. It's a bigger jump, helping the industry to evolve faster and better into autonomous drones or robotics operation that will then enable scalability to fleet and swarm operations that are dependent on autonomy, and here we elevated our offering from a software or cyber solution under the OS3 to a complete ecosystem solution under The secured autonomy, and that's an important jump forward.

It's backed by partnership, strategic partnership. First, AI tech and Mobilicom integrated. In the past, we announced the partnership, but now, several months later, we completed the integration of the OS3 on top of their hardware solution. Launching together the industry first in media-based AI secured autonomy solution.

Which has all the US Air Force and other certification to be used immediately. I encourage you, go and look for AI, go for their about section in the website. If you go to the history section over there and then scroll down, you will find their amazing list of current customers across the world. You will see the biggest names in the DoD industry in the United States and Europe, utilizing and using their autonomous computers or mission computers, as they call it. The fact that they chose mobility on cybersecurity is great credibility for our solution, and they could be a big bridge and leap forward for the implementation across multiple players in the industry.

We continued with another completion of integration with arc, a US company. That released the second Nvidia-based AI secured autonomy solution with Mobilicom. It's on the blue list. The hardware solution with Nvidia's AI computing at the edge, bundling the OS3 Mobilicom, it's now applicable for sale, and by the way, we continue with them to also integrate Mobilicom's Skypo Daing family.

So they allow their customers and partners to pick multiple mobile com solutions and have a wider solution already fully integrated and you can see that on videos that they released to their customers on the integration and how to build up on a complete ro.

So, definitely a quarter with great achievements. There are more of those, but we focus on the operating hires. So, we are often asked about the outlook for 2026 and what does it mean for Mobilicom scaling forward. Obviously, it's a forward-looking statement, so consider that under the risks involved with that, but let's share with you some of what our anticipation for the coming quarters.

First is our hardware business, the existing families of starper mesh networking, electronic warfare software that we also have under that, and the controllers.

So, we are selling the sales to tier 1 customers and leading defense manufacturers is what we are showing here. There are additional sales to second tier and 3rd tier, but we would like to focus on the big players, those that are most likely to win the majority of the market.

We, in 2025, have two customers in the design wing R&D phase. We simplified stages to only three. We have 4 in initial production phase, 2 of them we are seeing recently are scaling right now and shifting to production ramp up, which is the next phase.

And bringing total the tier one players that we are working with to 6. What we anticipate in 2026. Is that the amount of design wings and R&D. Customers, new ones will be 3 to 4. That will be in that stage.

And then we will have more 3 to 4 tier one leading players working with us on initial production phase, and then 2 already mass production phase, bringing the total amount of tier 1 customers to 8 or to 10.

Which is a big jump market-wise because each one of them is well positioned to capture significant market share and great programs. Not only that, we anticipate that in 2026, 1 or two of our customers will most likely win program of record, large opportunities that last for many years that will bring Mobilicom great visibility on.

The production and on the back of their wing, we will win with them. So we anticipate. A dramatic jump on the amount of tier one customers and in fact, our market share across the world and we focus on the United States.

On the software and cybersecurity business pipeline. We are completing 2025 with two strategic Nvidia-based autonomy computer and we discussed that earlier.

We would like to jump on the amount of players and strategic partners in 2026, to have 4 to 6 strategic partners, both Nvidia and Qualcomm, and by that we would like to bring ourselves to 60%, 70% of the market share and continue them after, and that means that we would like to lock the market for potential competitors that might come with solutions in this field that we are leading. And inc and close the partnership and then the market share with the biggest players working with Nvidia and Qualcomm on that edge autonomy.

In addition to that, under the secured autonomy, we would like to close two AI autonomy software strategic partners and integration that will bundle with our solution and bring a full ecosystem solution that will help others, the players in this industry elevate themselves faster, with lower investment on their side, and take a ready-made ecosystems of solution, harbors of a la carte from 11 side to OS3, the operating system and cybersecurity of this market and other AI autonomy applications and so forth.

So that will be considerable move forward for us. And then, Many ask us what will be the cash flow quality yearly run rate estimated, and we believe that with around $12 million in revenue as a yearly run rate, which is translated to $3 million per quarter, quarterly run rate, we can get to cash flow, positive.

Obviously, With We believe that as the United States accelerates DoD specifically, to drone adoption, the program allocation, program of record and POs as we all anticipate and as the government had mentioned.

On the back of that, Mobilicom's leading customers and partners. If they are the chosen partners and winners of those large programs of record, and then Mobilecom received the sovereign harder purchase order for production ramp up from those customers, as that sequence will happen, we believe that we can expect significant ramp up in our sales that will bring us to this quarterly run rates.

Or $3 million somewhere in the end of 2026, maybe beginning of 2027. And this is our estimation. Bear in mind there is a GAAP in the United States between where America wants to be and the push, enormous push by the DoD and the government behind drones and robotics, especially small ones, and where it is right now, so the shift. Is the activity that we see right now in the market. I hope that with, now that the shutdown has was lifted, things will start rolling again in the industry and we will get there, although it was slightly delayed by the shutdown, and that's the, bright future we see for this industry that Mobilicom is centered and And can capitalize on this amazing shift and transition based on the infrastructure that we have built with amazing product, IP know-how, customers, and the right team members to execute it.

I think that this is the time to move to some Q&A.

Yes, Oren. So the first question that we received from an investor was why Mobilicom use the previous February 2025 ATM?

I think that that was in line with what we had explained earlier in the presentation. It was one of our goals that we have communicated to the investors, along the year. We stated clearly that the shift from ADS to shares, common share trading on the Nasdaq is an important shift forward for the company, for the investors, for the shareholders that will accelerate adoption, more, investors can enjoy that and join Mobilicom and greater visibility as well as more, I think opportunity to be.

Bought by either ETFs or by indexes which is additional institutional passive investment vehicles. For that, we had to meet some criteria of the Nasdaq. Therefore, we have used the fact of the funding that we received from the warrants and then the ATM in addition to that, to meet the criteria of the Nasdaq to exercise the shift and actually listing as common share again.

We've mentioned that we are very close and it's, we believe in days from that and we anticipate, that common share trading will commence on December 1st.

That was an important milestone for us and only for that amazing milestone we have utilized the ATM. Otherwise, we didn't really need the money, for our current operation. Obviously, once we have that, we will strength, it will strengthen our balance sheet as we are preparing and working with the biggest player in the industry and scaling as we anticipate with the government. So that was the reason for that. Everything was known, released to the customer, to the investors, voted on the shareholder meeting and got the great support by all parties for this right move.

Thank you, Oren. Another question. This matter is why did the company issued extended ATM right now?

So that's a common question that we received from institutional investors. Some of them, understand how the company, how a another company would like to perform, and some has raised the question to just understand our vision, and it's important to share it with everybody through this call.

The company currently has a very strong cast position to support its current organic growth, and we've seen that in the numbers that we have published now and it's growing. We believe that an emerging Nasdaq company that is well positioned like Mobilicom to capitalize on this rapid expected market growth. Which is on a marathon race.

To fulfill these great achievements and become a large player in the industry should hold all the different capital facilities to support further growth in the future. And we have the ATM for that, we have the shell for that and we'll also prepare different avenues because we have to be prepared ahead of time for everything that is happening market-wise and as you've seen by the government, 2026 for them is the year of shift and scalability.

We've also seen some other examples of other amazing drone companies utilizing such facility of ATM. I can mention a few of them like Unusual Machines that took significant, millions of dollars with that or Paladig only this year that took additional funding with that.

But it's important to note. Right now that we have no plans now. Definitely at the current share price to use the extended ATM and raise funding that will substantially dilute our shareholders. It's not in line with what we as management and shareholders would like to do and I don't think it's the right move for the company right now.

But preparing infrastructure is one thing and use it when the time is right is another thing. If you ask us as management where we would like to be with capital raise and what will be the future raises, so future raises will be considered for further raising only on the back of significant milestones such as M&A as opportunity will be identified or one of the customers of Mobilicom wins large program of records.

That will require strengthening our balance sheets in the eyes of the Department of War or the European Union countries. So in such future potential rates that would probably be done by a leading brand-name banks. That will elevate Mobilicom's brand name in the market, introducing strategic investors that already expressed interest in such round or significant institutional investors.

And by that have a higher profile of solid players together with our retail investors and others in this market. So, this is how we envision the future. The ATM is an infrastructure like other infrastructure we are preparing and currently there is no plan today at the current share price definitely to utilize that vehicle. And significantly with everybody. So I hope that our, explain what is our motivation on building that and why we've done it, and how we would like to be prepared and what we envision as the right methodology for company growth that might require additional raising in the future.

Thank you, Aaron. I see that we received a few questions from Barry Sine, a CFA from Litchfield. His research, Barry. That's it. Let's see if you can. The microphone is yours.

Good morning, Oren and, Lea. Can you hear me okay?

Yes, we can.

Okay, great. First of all, congratulations on a tremendous amount of strategic process, progress and a great quarter financially. I had a couple of more strategic questions.

First, Oren, maybe we can go back to the recent announcement out of the Pentagon on cybersecurity standards, and you just gave some good information in terms of a timeline.

There's really, no other competitive solutions. So what are you hearing from customers since this? Announcement was made. Is your phone ringing? And then, if you look out of the market, could you give us any way to think about how to how what this might mean from a revenue standpoint?

Thank you.

Thank you, Barry. So, As we stated, the offering and the roadmap of Mobilicom for the oil-free and the cyber cybersecurity and the secured autonomy was not something that we got there by mistake. It was carefully crafted several years ago, understanding the challenges of this government and understanding other industries like the deer industries that did the same path forward the automotive industry and analyze and bringing to in a, bringing our great expertise from the cyber market of the great team that we have in-house to craft the right strategy going forward. We are happy that that was in line with what we anticipated for our discussion and work with government that their regulation has shifted on the right moment and they understood the risk involved definitely on operating drones and robots.

In the battlefield without the proper protection, and therefore they came out with this new cybersecurity regulation. And that's important because it has an amazing impact on the secured autonomy and OS free of mobium because we have carefully planned the solution for the last 3 years.

We have crafted the cybersecurity and participated in standardization in the United States and helping the startup creation. Hand to hand working with governments and then being ready with the commercial first commercial solution in the marketplace for, which is optimized for small size drones or robots, which is the challenging thing, how to reduce things to this small scale of small space, power consumption, CPU power and so on.

And being ready for the revolution to happen and then an amazing timing, the regulation from the government has came indicating to the industry that they have to, they again, they have to shift to a dynamic ongoing live protection, cybersecurity on any defense, solution and let alone all the drones, robotics, and lorym issues that we are observing. And that's for us is an amazing compelling event because that pushed the industry right now from something that they, maybe want to have or they see the importance of give them, some advantage to a mandatory regulatory decision that anticipated to be completed by September 2027, which is just around the corners in defense timing.

Okay, which will push the entire industry forward. So now there is a clear message coming from the Department of War that's stating you have to have such solution. Such large companies can choose to develop it by themselves or to design something, work with partners, but will take them much more time and they will not meet the deadline. And guess what? We are the sole player right now with solutions that fit this specific small drones robotics market which we believe will lead the entire industry.

To fulfill eventually mobilicom solution and we are in the, let's say, I believe. The center of this storm and that's an important milestone for the company and I think that that's the amazing opportunity that we can take from here. I remind everybody that the OS3 and the secured autonomy are software licensing solutions which have High gross margin of 90%. Just imagine that once those will kick in, how it will affect dramatically on the company's scalability. I don't want to use examples, but you understand companies like Palantir and so on that have ruled a new industry from the beginning, and this is what we are planning and envisioning.

The basis of that.

Okay, my second question, if you don't mind. During the quarter there were some pretty interesting news in your industry. The US Army was testing UAS for cybersecurity compliance. I won't mention the name to embarrass them, but a very highly respected Tier 1 manufacturer with highly respected vendors on the drone.

Did not fully pass the army's testing. So my question is, have you gone through similar testing and what were the results? And has this opened eyes in the industry. Are your phones again ringing? If a major tier one vendor doesn't pass the testing, maybe people need to be picking up the phone and talking to Mobilicom.

Can you give us an update on that, please?

So yes, there were Incidents that were published. Probably through The army.

In the cybersecurity of those drones and, UAVs, unmanned vehicles in the air. I think that, Yet again, it signals. To the industry that cybersecurity is going to be what we believed in the past, the biggest issue going forward for loitering for drones, robotics, any autonomous platform that is going to be used and definitely They Ts themselves together.

And that's why we chose this path going forward. I think that such events of, significant vulnerabilities that are published, definitely by the biggest companies in this industry that were getting red flags by the US Army.

Is our indication for that importance. It's a compelling event that pushed the industry forward and then, they have to solve the problem fast and in most cases they have to buy something very fast to implement. For the industry.

I would like to remind the industry that we recently this year fulfilled the milestone of being Blue OAS across our sky hopper families of products, and part of the testing of such products is there is a section for cybersecurity validation of the company, the, bill of material, the software elements, the penetration to the product, and so forth based on standards. It's based on these standards, the most, comprehensive standards of the United States, Federal Market.

I'm proud to say that in those testing, I think that if I recall right from the discussion, we are the first and only company that passed that with flying colors. Meaning that they are having a very long list of tests being done by white hat testers in this industry and those have tested that for many weeks.

And trying to penetrate that, and they issued a report. Our report had 0, high-level threats that were identified, 0 mid-level threats identified, and 0 low-level threats, which means zero any findings on the report. I was proud that one of those, the industry leader in testing for drones or robotic came to our booth. Earlier this year, shook my hand and said that I met a lot of the white hat, hackers, saddened and upset that they couldn't find a way to crack in. So that gives you some indication on Mobilecom cybersecurity. It's never 100% by being on that scale and thus testing and having such a report.

Published, build credibility on the Mobilecom side, which goes hand in hand with what we are able to do with the Ore and cybersecure and the secured autonomy, and we believe that if we have more of those big players.

Seeing such threats and vulnerabilities has happened in other markets, together with the new regulation that came, it only paves the road for OS3 and the secured autonomy of Mobilicom, which was prepared over the last three years. It's not something that we got there right now. We prepared in advance for three years. It could be a meaningful step forward for the company and actually accelerate what we anticipated to be 2027 growth. And again, it's a very high gross margin solution with 90% margins of software licensing.

Okay, and my third and last question, if you don't mind, Oren, you, I think you just referred to it, but you recently attended the Association of the United States Army annual conference in Washington DC, and I assume you had some very good meetings and good reception there.

Could you, elaborate a little bit on, how your meetings went in terms of, did you meet with folks from the Army, tier one, vendors that might be customers, and also, you already have some pretty impressive partners, but have you, did you talk to any new potential partners? How did that, how did the meetings go at a USA? Thank you.

So, as part of our effort in the United States and as an American solution to solve the problems and enable the market in America, we are doing more than 6 shows and conferences this in a yearly basis. Next year we will do more as we are scaling, and this is the biggest one. Obviously, the army is the biggest corp in the United States and this is the biggest show with vendors from all around the world coming.

I think that, we finished up with all because we've seen suddenly things are clicking faster and moving faster. I think 50% of my meetings were around the secure autonomy and OS3 cybersecurity, building the inroads with some of the partners and customers, educating them and help them understand and crafting with them the next steps of when they want to be part of the game with us. And the rest 50% were with additional players, with our current customers, obviously, and additional players that of our, that utilize our hardware and electronic warfare software products and hardware products.

We've also been very proud to see different platforms burden others on the floor by the giants of this industry showcasing solutions which are based on Mobilon and it was in several large boots and that's a great crowd, and we anticipate that within a year from now we will have more than that, and growing. I can share that, We've got first, very positive messages from the current tier one players that we're working with around the world that took part in this big event.

And indicating that their current plans to ramp up starting as early as Q1 2026 are clear, and this is on the back of the US and EU drone acceleration. And we are, happy to hear that. It, we also had great, meetings.

I mean, we have to understand first that as we are expanding the market, we have more success, we have more achievements in the US with the DoD. More units are being deployed by our customers into the DoD that everybody knows that Mobilicom is the heart and soul of that is passing different criteria, frameworks, regulation within the DoD. All this infrastructure is eventually a ripple effect that accelerates and therefore, those that understand that.

Come to us and continue the discussion. We also have witnessed, as we heard from our, from, players in the market, challenges by our competitors, either performances under, threats, under immunity, under cybersecurity, under electronic warfare like seen in Ukraine.

That are having threats and the performance is not as good with their current solution or pricing pressure to scale down as they are scaling in the numbers up to reduce the price per unit and or delivery times that are too long, some of our competitors delivering within 17 weeks. Mobilecom is delivering between 2 to 4 weeks. It's a complete different timing. All of that enables us opportunities to increase market share.

And that's an important thing that we've seen, and on the back of that, we believe that We will see more integration starting with leading players around the world, in particular in the United States, the biggest and hottest names in the industry. I think that that will be reflected in the plan for 2026 that you've seen.

We are under pressure right now in terminating the company to build the right plan to be able to absorb all those needs and all of those, interest level to fulfill them as fast as possible. So this is the challenge, which is a good challenge to have.

And we believe that as the Department of War will continue to scale drones as they indicated and TRY to close the GAAP with China and Russia in the volumes, targeting volumes of drones, that will also implement bigger pressure on the players.

I would like to share another thing. I think that, the shutdown to some extent, on one hand delayed the entire industry and the POs from OEMs that didn't receive that for the last few months. On the other hand, it's enabled us that we have a strong cash position.

To plan ahead, prepare, initiate, and increase production and production to stock, so fulfill faster the deliveries that we have to do for customers and then build, start building stock because we anticipate that once this shutdown is elevated as we've done and then beginning of 2026, we believe that there will be a flood of Purchase orders to some of our customers and some of our new potential customers, they will have to deploy things very fast and as the Department of War we squeeze everybody to for on timing to accelerate, we want to be ready with stocks in hand to enable our current customers and new customers. And by that, increasing the market share formobilicom and then utilize our price advantage, our, timing advantage, and solution advantage to win more market share and to scale up, and this is exactly what we are doing and that's why having more cash in hand will be beneficial if you want to increase that and be ready.

And we'd be in line with the government expressed. Recent, news to scale in the numbers and that's part of what we've seen in 2025 and this is some of the planning that we are currently implementing in the company, which is all about think bigger, move faster if you want to say to COVID. I hope that they answered your question.

Yelle, that's great. Thank you very much for taking my questions.

If there are no further questions, we're closing this, Q&A session. And we want to thank you, all of you attending our equity, I mean, attending this, quarterly update call, and we hope to see you in the upcoming call, any call for Q4 2025. Thank you very much, everyone, and goodbye.

Thank you.