Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $9.5 million, a decline of 2% compared to $9.7 million in Q3 2024, while year-to-date revenue increased by 8% [12] - Gross margin for Q3 2025 was 67.3%, slightly down from 68% in the previous year [15] - Operating income for Q3 2025 was $1.1 million, down 37% from $1.8 million in Q3 2024, with an operating margin of 12.1% compared to 18.8% in the prior year [16] - Net income attributed to shareholders was $1.04 per share, compared to $1.3 million or $0.06 per share in the same quarter last year [17] Business Line Data and Key Metrics Changes - Revenue from core verticals increased by 12% year-over-year and 23% year-to-date, with notable strength in correction and energy verticals [4] - The company is focusing on repeatable deployments and scalable account growth, experiencing increasing market demands for advanced solutions [5] Market Data and Key Metrics Changes - North America accounted for 51% of revenue in Q3 2025, up from 43% in the prior year, with revenue increasing by 17% in Q3 2025 [15] - The U.S. market saw a 22% increase in revenue year-over-year, driven by demand in corrections and energy verticals [12] - EMEA revenue declined by 10% in Q3 but increased by 15% year-to-date, while APAC experienced a 14% decline due to a phased-out customer contract [12][13] Company Strategy and Development Direction - The company is committed to innovation and investing in next-generation security solutions to enhance competitive positioning [11] - Strategic initiatives include targeting security for non-critical infrastructure such as hospitals and educational institutions [9] - The focus remains on expanding market presence and strengthening competitiveness in core verticals while maintaining a gross margin above 60% [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of technological innovation and operational leverage in driving profitability and market share [6] - The company is optimistic about capturing new opportunities in the EMEA region and stabilizing growth in APAC [8] - Management refrained from providing specific forward-looking statements but emphasized ongoing efforts to achieve sustainable growth [39] Other Important Information - The company has zero debt as of September 30, 2025, with cash and cash equivalents totaling $21.7 million [18] - A one-time government subsidy for an AI development initiative was awarded, validating the company's innovative technology solutions [16] Q&A Session Summary Question: What caused the significant jump in corporate expenses? - Corporate expenses increased due to abnormal costs associated with consulting fees [22] Question: How is the company leveraging AI in its operations? - AI is being used to enhance sensor data analysis, improve operational efficiency, and support the development of new data centers [25][26] Question: What verticals are most interested in the MultiSensor solution? - The MultiSensor is being tested across various verticals, including corrections, utilities, and logistics, with growing interest [30] Question: What is the expected growth rate going forward? - The company is striving for a 10% organic growth rate but did not provide specific forward-looking statements [39] Question: Will the consulting fees support future growth? - The company hopes that the investment in consulting will translate into future growth [40] Question: Are there specific regions or verticals targeted for growth? - The company aims to grow globally by increasing market share in its core verticals and expanding into non-critical infrastructure [42]

Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $9,700,000, representing a 16.2% increase compared to $8,300,000 in the second quarter of 2024 [16] - Gross margin improved to 66.1% from 63.2% year over year, reflecting a 292 basis point increase [19] - EBITDA for the second quarter was $1,100,000, with margins expanding by 161 basis points to 11.8% from 10.2% in the prior year [20] - Net income attributable to shareholders was $1,200,000 or $0.05 per share, compared to $493,000 or $0.02 per share in the same period last year [21] Business Line Data and Key Metrics Changes - The four core verticals experienced a 27% aggregate growth year over year, with notable strength in corrections and energy [6][11] - Operating expenses increased by 18% to $5,400,000, primarily due to one-time administrative costs and the addition of key personnel [19] Market Data and Key Metrics Changes - EMEA region revenue grew by 52%, now representing 35% of total revenue, up from 27% a year ago [9][18] - North America, the largest market, saw a 29% revenue increase, driven by corrections and utilities [10] - The Asia Pacific region faced a 47% revenue decline due to a challenging year-over-year comparison [10][18] - LatAm region returned to growth with a 26% revenue increase, attributed to security modernization demand [11][17] Company Strategy and Development Direction - The company is focused on technological innovation to strengthen competitive positioning and drive growth in key verticals [12] - Plans to expand the Business Development team to support large key accounts and accelerate market share gains [14] - The strategy includes targeting critical points within non-critical infrastructure, such as hospitals and educational institutions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resiliency, with continued revenue growth and margin expansion [14] - The company remains committed to differentiating itself through innovative security solutions for international customers [14] Other Important Information - The company had zero debt as of June 30, 2025, with cash and cash equivalents totaling $21,900,000 [22] Q&A Session Summary Question: Can you elaborate on the one-time expense and the border control segment? - Management indicated that the one-time administrative fees were related to consulting for finalizing processes related to the Israeli entity's redomiciliation to Canada [27] - Regarding border control, while not a main target vertical, the company is active in this sector due to current geopolitical tensions, contributing technologically to enhance safety [26]

Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $9.7 million, representing a 16.2% increase compared to $8.3 million in the second quarter of 2024 [16] - Gross margin improved to 66.1% from 63.2% in the prior year, reflecting a 292 basis point increase [20] - EBITDA for the second quarter was $1.1 million, up from $846,000 in the same quarter last year, with margins expanding by 161 basis points to 11.8% [21] - Net income attributable to shareholders was $1.2 million or $0.05 per share, compared to $493,000 or $0.02 per share in the prior year [22] Business Line Data and Key Metrics Changes - The four core verticals experienced a 27% aggregate growth year over year, with notable strength in energy and corrections [6] - Operating expenses increased by 18% to $5.4 million, primarily due to one-time administrative costs and the addition of key personnel [20] Market Data and Key Metrics Changes - EMEA region revenue grew by 52%, now representing 35% of total revenue, up from 27% a year ago [9][19] - North America, the largest market, saw a 29% revenue increase, driven by corrections and utilities [10] - The Asia Pacific region faced a 47% revenue decline due to a challenging year-over-year comparison and the phase-out of a large customer contract [10][19] - LatAm region returned to growth with a 26% revenue increase, attributed to successful execution of security modernization strategies [11][18] Company Strategy and Development Direction - The company is focused on technological innovation to strengthen competitive positioning and drive growth in targeted verticals [12] - Plans to expand the Business Development team to support large key accounts and accelerate market share gains [14] - The strategy includes targeting critical points within non-critical infrastructure, such as hospitals and educational institutions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resiliency of the business model, with continued revenue growth and margin expansion [14] - The company remains committed to investing in innovative security solutions to differentiate from competitors [14] Other Important Information - The company had zero debt as of June 30, 2025, with cash and cash equivalents totaling $21.9 million [22][23] Q&A Session Summary Question: Can you elaborate on the one-time expense and the border control segment? - Management clarified that the one-time administrative fees were related to consulting fees for concluding processes related to the Israeli entity's redomiciliation to Canada [28] - The border control segment is not a main target vertical but the company is active in this sector due to current geopolitical tensions [27]