Financial Data and Key Metrics Changes - Sales for Q3 2025 were $13.3 million, a slight decrease from $13.5 million in Q3 2024. Gross profit for the quarter was $1.6 million, down from $3.5 million in the previous year. Operating profit was $50,000 compared to $1.9 million in Q3 2024. Net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to net income of $1.7 million, or $0.25 per share in Q3 2024 [9][10]. - EBITDA for Q3 2025 amounted to $0.6 million, down from $2.3 million in the prior year period. Positive cash flow from operating activities was $2 million, compared to $1.6 million in Q3 2024 [10]. Business Line Data and Key Metrics Changes - The defense sector accounted for 63% of quarterly sales, while industrial and medical customers represented 9% and 6%, respectively. RigidFlex products made up 66% of quarterly sales and 65% of sales for the first nine months of the year [6]. Market Data and Key Metrics Changes - Demand for products remains strong, particularly in the defense sector. However, the entry of new foreign competitors is noted, which may limit price increases in certain segments. Delivery times across the industry remain extended due to strong global demand and constrained manufacturing capacity [6][7]. Company Strategy and Development Direction - The company is in a transition period, absorbing significant additional capacity and technology upgrades. A production capacity expansion program is progressing well, with the construction of a new production hall nearing completion. The RP project is also on track to go live in 2026, aiming to integrate all company platforms for improved operational efficiency [7][8]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing operational instability due to the ramp-up of new equipment and the integration of new staff. They expect improvements in production processes and financial performance as employees gain experience and new pricing models take effect [5][6][12]. The company anticipates that gross margins will improve by mid-2026 as production processes stabilize [15]. Other Important Information - The sharp depreciation of the US dollar against the Israeli shekel has negatively impacted reported expenses and gross profits, with an estimated operational profit impact of approximately $800,000 compared to Q3 2024 [4]. Q&A Session Summary Question: Clarification on operational issues and pricing impact due to USD depreciation - Management explained that current operational issues stem from engineering and manpower challenges rather than construction-related problems. They expect to see the effects of price increases from USD depreciation in six to nine months [12][13]. Question: Timeline for resolving operational difficulties - Management indicated that the timeline for resolving operational difficulties is uncertain and depends on the absorption rate of employees and engineering staff [14]. Question: Impact of new competition and price pressure - Management noted that new foreign competitors are entering the defense sector, which is limiting pricing flexibility, particularly in high-volume production. However, competition in low-volume production remains limited, allowing for greater pricing flexibility [23][24]. Question: Continued impact of currency and foreign exchange - Management confirmed that the erosion of the US dollar will continue to affect financial expenses and operating income, particularly if the exchange rate remains lower than at the end of Q3 [26][27].