AirBoss of America Corp. ($BOS)

Good morning, ladies and gentlemen, and welcome to the Annual General Meeting of the Shareholders of AirBoss of America Corp. We're making today's meeting available through both the video and teleconference facility. Accordingly, I would like to welcome everyone who's been able to join us today in one form or another. I am Gren Schoch, Chairman and Co-CEO of AirBoss of America Corp. Joining me today are Chris Bitsakakis, President and Co-CEO; Frank Ientile, CFO; Chris Figel, EVP and General Counsel. I would also like to introduce our Board of Directors who are participating electronically or in person: David Camilleri, Robert McLeish, Maxime Robillard, Stephen Ryan, and Alan J. Watson. For your information, we will start the meeting by addressing the formal agenda matters. Once all these matters have been addressed, Chris, Frank, and I will make a short presentation, including a discussion of our first quarter '26 results, a brief overview of our fiscal '25, and an update on our strategic initiatives. We will then follow that with a Q&A session, where we would welcome questions from participants. In conducting the business of the meeting, I would appreciate your cooperation and allowing us to move efficiently through the agenda. In order to make the best use of our time, certain shareholders have been asked to move and second the resolutions, which we will consider at the meeting. I will call on them at the appropriate time. I would now like to call this meeting to order. Chris Bitsakakis and myself will act as co-Chairs of the meeting, and Chris Figel will act as Secretary of the meeting. The Secretary has advised that the annual report containing the audited consolidated financial statements for the corporation for the fiscal year ended December 31, '25, was mailed to all shareholders of the corporation on April 10, '26. The notice of this meeting, the accompanying management information circular and form of proxy were also mailed to the shareholders of the corporation on April 10, 2026. I direct that the proof of service be annexed to the minutes of this meeting. Chris, myself, and Frank will be available to respond to any questions concerning the financial statements during the question period that follows the former business -- formal business, sorry. Before proceeding with the business of the meeting, I would like to take a moment to discuss voting procedure. Each holder of common shares of the corporation is entitled to one vote for each common share held. There are three formal items of business to be dealt with today: a, to receive the annual report and financial statements of the corporation for the fiscal year ended December 31, '25; b, to elect each of the six nominee directors for the Board for the ensuing year; and c, to reappoint the corporation's auditors, KPMG LLP, for the ensuing year and the authorization of the directors to fix the auditors' remuneration, all as described in the management information circular of the corporation dated April 10, 2026. With the consent of the meeting, representatives of Computershare Investor Services, Inc., the corporation's registrar and transfer agent, will act as scrutineers and report on the number of shareholders present in person and the number of shares represented in person or by proxy. I will now ask the Secretary to confirm quorum for this meeting.

Mr. Chairman, I confirm we have at least two persons present holding or representing by proxy 25% of the eligible votes, which results in a quorum.

As a quorum is present, I declare this meeting is properly constituted. I direct that the scrutineers' report on attendance be annexed to the minutes of this meeting. As the first item of formal business, I'd ask Frank Ientile, our Chief Financial Officer, to table AirBoss' annual report to shareholders, which includes the audited consolidated financial statements of the corporation for the fiscal year ended December 31, '25, along with the auditor's report.

Mr. Chairman, the corporation's fiscal 2025 annual report is tabled.

Thank you, Frank. A copy of the '25 annual report has been mailed to all shareholders who requested a copy. Copies can be found online under the AirBoss' profile at sedarplus.com, and there are also some in the back of the room here. We will now move to second of item of -- to the second item of formal business, the election of six directors to AirBoss' Board. Nominations have been proposed by management in the proxy circular. Six of our current directors have agreed to continue serving on the Board of Directors. Details about each of the director nominees are contained in this year's proxy circular. Shareholders are required -- are requested to cast their votes for each individual nominee rather than voting for the entire slate. The meeting is now open for nominations for the election of six nominees. Morris Eddy, would you please nominate the individuals listed in the proxy circular as directors for the coming year?

Mr. Chairman, I nominate each of David Camilleri, Robert McLeish, Maxime Robillard, Stephen Ryan, P. Gren Schoch, and Alan J. Watson as directors of AirBoss to hold office for the ensuing year or until their successors are elected or appointed.

Thank you. Peter de Ruyter, will you second the nominations, please?

Mr. Chairman, I second the nominations.

Thank you. Are there any other nominations? I declare the nominations closed. Morris, may I have a resolution, please?

Be it resolved that each of David Camilleri, Robert McLeish, Maxime Robillard, Stephen Ryan, P. Gren Schoch, and Alan J. Watson be elected as directors of AirBoss for the ensuing year or until their successors are elected or appointed.

Peter, will you second the resolution?

Mr. Chairman, I second the resolution.

Thank you. As you know, management solicited proxies for the business of today's meeting. On behalf of management, I received proxies representing over a majority of votes cast for the election of each of the director nominees named in our proxy circular. Based on the proxy report received, the majority of shares voted were cast in favor of each of management's nominees. Accordingly, along with myself, the following other five nominees have each been properly elected as directors of AirBoss for the coming year. David Camilleri, Robert McLeish, Maxime Robillard, Stephen Ryan, and Alan Watson. We would also like to thank Anita Antenucci for many years of service on our Board. And if any shareholder or proxy holder is interested in the exact number of votes cast for or withheld from each nominee, you can get the particulars after the meeting from the Secretary. A press release and report on voting results indicating the detailed results of the vote on the election of the director will also be publicly filed after this meeting on SEDAR+. The next item of formal business is the reappointment of KPMG LLP as auditors for the corporation, and authorization for the directors to fix the remuneration of the auditors. Morris, may I have the resolution, please?

Mr. Chairman, I move the following resolution. Be it resolved that KPMG LLP, the present auditors of the corporation, are hereby reappointed auditors of the corporation to hold office until the close of the next Annual Meeting of Shareholders or until the successors are appointed and that the directors of the corporation are hereby authorized to fix the remuneration of the auditors in such amounts as the directors may, in their discretion, determine for the current fiscal year.

Peter, will you second the resolution?

Mr. Chairman, I second the resolution.

Thank you. On behalf of management, I've received proxies representing over a majority of votes cast for the reappointment of KPMG as the auditors of the corporation and authorization of the directors to fix the remuneration of the auditors. Based on the proxy report received, the majority of shares voted were cast in favor of this resolution. Accordingly, I declare it carried. If there is no further business for this meeting, I will request a motion that the formal meeting be terminated. Morris, would you please bring a motion to terminate the meeting?

Mr. Chairman, I move that the meeting be terminated.

Thank you. Peter, will you second the motion?

Mr. Chairman, I second the motion.

Thank you. All those in favor of the motion, please raise your hands. Contrary, if any? I declare the motion carried and the formal business of the meeting has concluded. With the formal meeting now over, we will move to our management presentation. In terms of an agenda, we will start with our annual Chairman's Awards, followed by management presentation and overview of the first quarter results, which were released yesterday. And then we will take questions starting with the analysts covering our company and then from shareholders. To respect people's time, we will do our best to be expedient. Turning to the annual Chairman's Award. Every day at AirBoss, there's inspirational work being done across all divisions and departments with team members going above and beyond to ensure our continued success. In 2019, we created our annual Chairman's Award program to formally recognize the efforts made by our AirBoss employees. It's a peer-to-peer recognition program that has employees identify, recognize, and appreciate a broad range of strong contributors who will go above and beyond for AirBoss. When selecting the Chairman's recipient, we ensure that we have a strong representation of our AirBoss employees by presenting award to one peer-nominated hourly employee and to one peer-nominated salaried employee, who both have shown exceptional dedication and commitment as they've gone above and beyond for AirBoss. I'm pleased to announce that yet again, we've had great employee participation this year, a total of 414 employees nominated from across the organization and a selection of 12 divisional winners. From those 12 divisional winners, there were two employees that stood out and best exemplified the Chairman Award's attributes. I'm delighted to announce today that this year's winners are Scott Ogle, a production product manager from our defense business; and Michelle Fanning, a lead trainer from our rubber molded product business in Auburn Hills, Michigan. Scott was instrumental in expedited solution development and validation of a new Bandolier configuration that enabled customer acceptance and continued delivery and support of critical operations in the midst of an unexpected supply chain interruption. Scott's involvement applied his decades of experience and subject matter experience, expertise, and energetics applications to collaborate with our supplier in the development of a new formula that was able to achieve required energetic effect against a wide range of targets. This activity would not have been possible without Scott's creativity and unique depth of knowledge of energetics as well as an intimate understanding of combat operations and associated user requirements for the system. Michelle Fanning is highly deserving of this award for her dedication and contributions to AirBoss Manufactured Products training. She plays a critical role as training specialist in executing and sustaining the Dojo, providing hourly new hire training, maintaining materials, proactively supporting employees on the floor. Her hands-on approach, reliability, strong commitment to employee success consistently go above and beyond in supporting both training and overall operations. On behalf of the Board and our shareholders, I want to take this opportunity to thank all our nominees and winners across the organization for their outstanding contributions to AirBoss. Before we begin with the next portion of our presentation, I'll remind listeners that our remarks today contain forward-looking statements, including estimates of future developments. We invite listeners to review risk factors related to our business in our annual information form and MD&A, both of which are available on SEDAR+ on our corporate website. Also, we will discuss certain non-GAAP measures, including EBITDA. Reconciliations of these measures are available in our MD&A. And finally, please note that our reporting currency is in U.S. dollars. References today will be in U.S. dollars unless we indicate otherwise. With that, I will now turn the call over to Chris for the operational review.

Thank you, Gren, and good morning, everyone. Before beginning, I'd also like to congratulate both Scott and Michelle on winning the Chairman's Awards, and also all 414 people that were nominated and every single employee at AirBoss who go above and beyond every single day that they come into work. Now going on with the agenda. During Q1 2026, AirBoss continued to build on the momentum from the fourth quarter of 2025 while maintaining focus on executing our long-term strategic plan. The company navigated ongoing uncertainty related to economic conditions, geopolitical developments, tariffs, inflationary pressures, and supply chain disruption that affected each segment to varying degrees. AirBoss Rubber Solutions experienced a modest recovery compared to Q4 2025, while AirBoss Manufactured Products saw positive traction across both its defense and rubber-molded products businesses, supported by deliveries under previously announced contracts. Management in both segments remains focused on risk mitigation initiatives in response to these challenges. These included cost management and continuous improvement efforts. Given the cross-border nature of its operations, a significant portion of products manufactured in Canada are sold into the United States and may be subject to existing or future tariffs. While most products qualify under USMCA or CUSMA, the company continues to evaluate and implement contingency plans to mitigate potential impacts, particularly in advance of any future trade negotiations or agreement renegotiations. Despite this environment of continued economic uncertainty, management remains focused on converting key opportunities to support sustainable long-term growth. The company currently expects continued volume volatility at AirBoss Rubber Solutions through 2026, with the timing and magnitude of further recovery subject to general market conditions, geopolitical developments, and the potential for additional tariffs, duties, or evolving trade restrictions, which at this moment in time remain uncertain. AirBoss Rubber Solutions experienced a modest recovery in Q1 2026 compared to Q4 2025. However, volume was still below Q1 2025 with revenue contraction and reduced margins driven by overall softness in most customer sectors. This was primarily attributable to tariff-related market conditions and other economic headwinds, including higher input costs as well as customers continue to manage potential exposure and manage inventories closely. As a segment, AirBoss Rubber Solutions remained focused on investing in research and development to support enhanced collaboration with customers and executing its strategy focused on specialized products, expanded production of a broader array of specialty compounds, and enhanced flexibility in attracting and fulfilling new business opportunities. AirBoss Manufactured Products experienced overall volume improvement in Q1 2026 compared to Q1 2025, primarily driven by its defense products business and improvements in the rubber molded products business. The defense business had improvements in both revenue and gross profit, mainly driven by deliveries under previously announced awards. The rubber molded products business had improved volumes in both auto and non-auto sectors despite continued volatility related to the original equipment manufacturers or the OEMs, periodically shutting production to rebalance vehicle inventory levels. The business continued its focus on cost management, operational efficiencies, automation, and diversification into adjacent product sectors. Management also continued its focus on operational improvements and working with key customers to leverage opportunities aligned with its growth initiatives. The company's long-term priorities consist of the following: growing the core Rubber Solutions segment by emphasizing rubber compounding as the core driver for sustainable growth and productivity, focusing on innovation and custom rubber compounding while aiming to expand market share through organic and inorganic means, while striving to achieve enhanced diversification by a broadening of product breadth through technological advancements and investments in specialty compound niches. Some of those compound niches included the silicone line that we launched last year as an example. And the second priority is for manufactured products growth strategy being focused on diversifying and expanding its range of advanced rubber molded products while positioning current and future core defense products to take advantage of new growth opportunities within NATO and other partner customers around the world. AirBoss continues to focus on these long-term priorities while investing in core areas of the business to expand a solid foundation that will support long-term growth. I will now pass the call over to Frank for the financial review.

Thanks, Chris, and good morning, everyone. As a reminder, all dollar amounts presented today are in U.S. dollars, except for dividends per share, which are in Canadian dollars. Percentage changes compare Q1 of 2026 to Q1 of 2025, unless otherwise noted. To be respectful of your time today, I will aim to be brief in my summary of our Q1 2026 results. Starting from the top line, AirBoss' consolidated net sales for Q1 of 2026 were $105.8 million, an increase of 0.6% from the prior year. The increase was primarily due to higher sales at Manufactured Products defense products business and increases in the rubber molded products business, partially offset by decreased sales at Rubber Solutions across many customer sectors. Consolidated gross profit for Q1 of 2026 increased by $0.7 million to $19.2 million compared with Q1 of 2025. Gross profit as a percentage of net sales increased to 18.1% from Q1 of 2026 from 17.6% in Q1 of 2025. The increase in margin percentage was primarily driven by the continued delivery of previously announced awards at Manufactured Products defense products business, margin improvements at Manufactured Products rubber molded products business, and managing controllable overhead costs and continuous improvement initiatives, partially offset by margin contraction in the Rubber Solutions segment due to unfavorable mix and lower volume across many customer sectors driven by market softness and economic uncertainty. Turning now to our individual segments. Net sales in the AirBoss Rubber Solutions segment for Q1 of 2026 decreased by 5.7% to $53.8 million from $57 million in Q1 of 2025. This was due to softness across certain sectors driven by pronounced and continued economic headwinds. Volume was down 3%. Tolling volume was down 0.9%, while non-tolling volume was down 3%. Gross profit at AirBoss Rubber Solutions for Q1 of 2026 decreased to $6.9 million from $8.5 million in Q1 of 2025. The decrease was primarily a result of unfavorable mix and margin pressure in addition to decreased tolling and non-tolling volumes compared to the same period in 2025. Gross margin percentage decreased to 12.9% of net sales from 14.9% of net sales in Q1 of 2025. Net sales in the Manufactured Products segment for Q1 of 2026 increased by 16.5% to $62.5 million from $53.6 million in Q1 of 2025. The increase was primarily due to higher sales in the defense products business and improved sales in the molded rubber products business. Gross profit at Manufactured Products segment for Q1 of 2026 increased to $12.2 million from $10 million in Q1 of 2025. The increase was primarily a result of volume and mix improvements in the defense products business, driven by the ongoing delivery of new business awards in addition to improvements in the rubber molded products business. Turning again to the consolidated results. Cash provided by operating activity for Q1 of 2026 was $1.2 million compared to $6.4 million at the end of Q1 of 2025. During Q1 of 2026, the company invested $1.4 million in capital equipment. Capital expenditures were related to growth initiatives and upgrades to property, plant and equipment within ARS and AMP. By the end of Q1 2026, our net debt balance was $69.2 million versus $67.6 million at the end of Q4 of 2025. We expect to fund the company's 2026 operating cash requirements, including required working capital investments, capital expenditures, and scheduled debt repayments from cash on hand, cash flow from operations, and committed borrowing capacity. The company's asset-based revolving line of credit facility provided for a maximum borrowing of up to $125 million, with a $25 million accordion. As of March 31, 2026, the total available borrowing capacity under this facility was $73.8 million with $25.4 million drawn. With that, I will now turn the call over to Chris. Chris?

Thank you, Frank. As mentioned at the opening, this meeting is being made available both via conference call and via webcast. We will now take questions from individuals attending in person, following which, we will take questions from those who have submitted questions through the conference call line and then open up the meeting to questions from those attending via webcast. [Operator Instructions] We will now open the floor to questions from anyone attending the meeting in person.

It's Tim James from TD Cowen. I'm just wondering if you could talk about some specific examples of how the kind of tariff environment, the economic uncertainty, activities in the Middle East are negatively impacting your revenue or volumes, I guess, in particular, just some examples across the business.

I think the best example would be from AirBoss Rubber Solutions. In a batch of rubber, the majority of the chemicals that go into batch of rubber are all related to the petrochemical industry in one way or another. And with the shipping constraints in the Middle East, it's caused bottlenecks around the world as it relates to the shipping of a lot of these chemical products because many of them use residual products to be produced. So from that perspective, we have seen and are expecting to see price increases over the next period of time from a lot of those products that are petrochemically related. What we've done in preparation for that, and you'll probably see that in terms of our increased inventory build, we've built up additional inventories to be able to secure enough product to keep our customers taken care of over the next little while, while this volatility continues. It will also give us an opportunity to make sure that during this next period of price volatility, that we can smooth some of those big swings out by carrying a little bit more inventory. So we're doing that to protect our customers and to protect against too much price volatility.

Just to follow up on that then. Do you feel that there's actually demand that's gone away because of this? Or if these are delays related to shipments and what's going on in the Middle East, I mean, do you think that later in the year, when these things subside, that you will have some catch-up there? Or are these things sort of indefinitely pushed out?

I think we've been already, as you know, Tim, in a bit of a trough as it relates to demand from the industrial output in the United States for at least the last three or four quarters. So from that perspective, I think a lot of the volatility that created this drop in demand, I think, was related more to the variety of tariffs that are being applied across different countries, which have affected a lot of the supply chains for our customer base. I think from our perspective, this -- what's going on right now in the Middle East, it's adding some volatility, but I don't think it's going to have an impact on the rebound or the demand curve in any way short term. I think because we're already operating in a bit of a trough as it relates to demand in the U.S. industrial base, I think, of course, getting these most recent concerns out of the Middle East behind us will certainly help accelerate a return to more normalized demand. But I think that the demand itself is already struggling a little bit, and this has only kind of enhanced that. However, with any sort of improvement there, I think we should expect a rebound. We're still forecasting the second half of this year to see some rebound in the generalized industrial economy in the U.S. And so we're hopeful that the current existing issues in the Middle East are taken care of by then, and they don't slow down that demand curve any more than it's already been there.

Maybe a question, if I could, turning to the defense business specifically. I know Canada is not a large component of your defense business historically just by virtue of its size relative to the U.S. and other countries. But I'm wondering, just given the outlook for Canadian defense spending and the plans, if you could just talk about maybe some of the opportunities that you might be seeing. I know maybe it's early days. Just some commentary around if there are opportunities there and what they might be for AirBoss.

We've seen a marked improvement in transparency with the Canadian government on a lot of the plans going forward for defense procurement. We've been in touch with all levels of government, including the Minister of Defense on down a variety of people within the Canadian armed forces and the bureaucracy around the procurement of a variety of needs that the Canadian government has. We have submitted documentation outlining to the Canadian government, everything that AirBoss can do and is prepared to do to support this preparation for sort of a different world order with Canada taking a bit more responsibility for enhancing their armed forces. And AirBoss is a key part of that. We've had multiple high-level meetings. We see a lot more action than we've seen in the past in terms of progressing things quicker. So we're fairly optimistic that we're going to see additional awards that will allow AirBoss to support the Canadian government's plans in defense -- in the strengthening of our defense forces.

Just one last one, if I could, staying with the defense topic. Maybe looking now outside of Canada, I know for a couple of years, at least, getting defense awards, getting those contracts sealed, getting them across the finish line has always been sort of constantly getting deferred and pushed out. Are you seeing, just given the geopolitical environment, any change in that? You mentioned Canada seems a little bit more efficient, a little more with their foot on the gas. But what about NATO, U.S.? Is there any sort of improvement in their sense of urgency to get some of these contracts that they've indicated are required, get those across the finish line?

We're seeing a lot of demand throughout all the NATO partners that we have. We're seeing a lot of demand out of Europe for a lot of the products that we make. The U.S. has been and will continue to always be our biggest customer just because of the sheer volume of what they do. However, during this period of time where there's active conflicts going on, I think because AirBoss doesn't make weapon systems or those kinds of things, I think there's probably some prioritization in terms of the replenishment of some of the equipment that's been used in some of the armaments that have been expended. Of course, AirBoss doesn't necessarily play in that arena. However, our focus on soldier protection is extremely critical. And many of the armed forces around the world are also increasing the numbers of people. The Canadian Armed Forces has had a banner recruitment effort this year that's worked out really well. So as there are more military personnel, there's going to be more military personnel for us to protect. And we do expect to see volume increases because of that with demining as an example, is going to be an important part of the rebuilding of Ukraine at some point. And AirBoss still has a global presence in that space. So we have, I think, a lot of products that are going to be quite in demand over the next few years, and we're seeing, certainly, throughout Europe and the United States and Canada, we're seeing a lot more demand. At this time, if there aren't any more questions here, we will proceed to any questions that are queued up on the conference line.

Your first question comes from the line of Ahmed Abdullah with National Bank of Canada.

Acknowledging the fact that you spoke of the recessionary kind of environment at the ARS business from a volume perspective, where do you see things kind of turning a corner? You kind of pushed the guidance out into volatility throughout 2026. Is there any visibility you have that early '27 should be a turning point for the Rubber Solutions business?

We're still tracking. I mean, and you saw from Q1, an improvement over Q4 of 2025. So we still feel that we're in that trough area now. We're still forecasting a rebound in the second half of this year. I guess, but there's a lot of things out of our control, particularly on the geopolitical landscape that we may have to address the fact that there is possibility that, that rebound is delayed a little bit. But according to our forecasting, we are still forecasting a rebound in Q3 of this year, and we're not prepared yet to push that forward. We're just highlighting the fact that given the geopolitical instability and anything could possibly delay that. However, if things get sort of worked out, then I think we can still continue to rely on that original forecast of a Q3 rebound.

Okay. That's helpful. And just on the defense side, how should we think about the cadence of contract deliveries you have through '26 and into 2027? And I'm talking mostly about what's already been awarded that you have announced.

Right. Well, the MALO contract that we had announced last year, we completed delivery on that in Q2, or I guess we will be computing -- completing deliveries on that in Q2. And the MALO program that we launched in Q3 of last year is going to be ramping up and it has been ramping up since. So there's going to be a little bit of an offset from the drop in revenue from the MALO completing starting Q3 forward. And then -- sorry, the Bandolier completing in Q2 and the MALO having ramped up. So I think we'll -- that's sort of the two main drivers in 2026. So that's where you'll see kind of our revenue line go forward over the next three quarters.

Okay. And just staying on the defense side, given your commentary around, obviously, geopolitical landscape, are you exploring or seeing any interesting potential M&A or partnership announcements that could be of interest to you?

Yes. I mean, as I'm sure you studied carefully with our 2025 results, our balance sheet is much improved over where it was. We ended Q5 -- Q4 of 2025 at a 1.99x multiple of debt over a 12-month trailing EBITDA, and we're ending this quarter at 1.97. So we're -- we feel in a good position to now start entertaining again strategic acquisitions. And we are looking at many of them, some of them that we've been working on for a while now, but we're not comfortable executing on because of our focus on balance sheet improvement last year. But now that we've kind of taken that off the table, we're looking at the ones that we were looking at, and there are some very interesting new ones that have been coming across. Of course, for every 10 or 15 that we see, there may be one or two that could be quite interesting for us, but we are much more active now than we have been in the past year or so.

Any interesting specific areas that you could perhaps provide color around? Like it doesn't necessarily have to be exact products, but like kind of [ defense stuff ].

We've looked at opportunities in both AirBoss Manufactured Products and AirBoss Rubber Solutions. AirBoss Rubber Solutions is kind of interesting now because we're in a little bit of a trough. A lot of our competitors are looking for at least talking about what the future could hold in terms of the total available capacity in the market, who the players will be, and what their long-term plans are. And we stay in close contact with everyone in the industry. So we get a lot of interesting opportunities come across. And of course, on the AirBoss manufactured product side, the same thing. We're always looking to broaden our portfolio, and there looked to be some interesting opportunities out there. We're going to be cautious. We're going to be careful because -- just because we have some breathing room on our balance sheet now, it doesn't mean we're going to go out on an acquisition spree. But certainly, there are some nice bolt-on opportunities that we're looking at that could really enhance both AMP and ARS going forward.

Congratulations on the quarter.

Okay. Well, that concludes questions from the conference call. I would now ask Chris Figel to read any questions which have been submitted electronically.

Thanks, Chris. So this is a question that was submitted electronically. A follow-up on Tim's question. The defense contracts that you have presently, how long do they run for? And can you comment on what size of the defense contracts could be?

Right. Well, as I mentioned earlier, the Bandolier contract that we are completing in Q2, there's going to be a little bit of a gap before the next large-scale Bandolier award, but we are working on several of them. And we have not been publishing our pipeline, only our backlog. But I can assure everyone that our pipeline is very healthy. There are multiple opportunities that we're working on, some smaller in volume, but some quite large as well. And we continue to drive forward on that. The AirBoss Defense Group is active all over the world. We had a demonstration of our Bandolier product in Europe just yesterday with multiple interested European parties. So we have a very strong business development focus in AirBoss Defense Group. The demand is out there. Defense spending is out there, is up quite a bit. So we're fairly optimistic that we're going to be able to bring in some new awards. Of course, there are always -- like Tim mentioned in the beginning, they always take a little bit of extra effort to get them over the finish line, but I can assure you that the ADG team is quite poised and connected through the demand cycle to make sure that, that happens. Any other questions, Chris?

That concludes all the questions, Chris.

Okay. So since there are no other questions, ladies and gentlemen, thank you for taking the time to attend this meeting. If there are any further questions, feel free to contact any of the AirBoss leadership at any time. Thank you again.