Financial Performance - Third quarter 2025 revenue was $7.4 million, a decrease of 9.6% from the prior-year quarter, while year-to-date revenue increased by 7.1% to $20.8 million[5] - The company reported a net income of $384,000, or $0.06 per share, compared to $203,000, or $0.03 per share in the third quarter of 2024[5] - Gross margin improved to 32.7%, up from 21.5% in the prior-year quarter, due to a better contract mix in the CVD Equipment segment[5] - Cash and cash equivalents decreased to $8.4 million as of September 30, 2025, down from $12.6 million as of December 31, 2024[5] Backlog and Workforce - As of September 30, 2025, the backlog was $8.0 million, down from $13.2 million as of June 30, 2025[5] - The company plans to reduce its CVD Equipment division's workforce by December 31, 2025, which is expected to save approximately $2.0 million in annual operating costs for fiscal 2026[4] - The company anticipates incurring approximately $0.1 million in severance and other charges related to the workforce reduction plan[7] Strategic Initiatives - The company is implementing a revised sales strategy utilizing distributors and outside sales representatives to enhance market opportunities[10] - Strategic initiatives include transitioning to outsourced fabrication for certain components to improve operational efficiency[4] - CVD Equipment Corporation remains focused on key markets such as aerospace and defense, silicon carbide high-power electronics, and electric vehicle battery materials[6]

Core Viewpoint - CanAlaska Uranium Ltd. has successfully completed a brokered private placement, raising approximately $15 million through the issuance of common shares, aimed at funding exploration activities in Saskatchewan [1][4]. Group 1: Offering Details - The private placement consisted of 9,757,500 common shares, generating gross proceeds of $14,999,880 [1]. - The offering included 7,333,300 charity flow-through common shares priced at C$1.50 each and 2,424,200 charity flow-through common shares priced at C$1.65 each [1]. - The offering was led by Desjardins Capital Markets as the sole bookrunner, with a total cash commission of $899,992.80 paid to the agents involved [2]. Group 2: Use of Proceeds - The proceeds from the offering will be used for Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures [4]. - The company plans to incur qualifying expenditures related to the exploration of its West McArthur project and other projects in Saskatchewan, with all expenditures to be renounced in favor of the subscribers by December 31, 2025 [4]. Group 3: Company Overview - CanAlaska Uranium is a prominent explorer of uranium in the Athabasca Basin, owning approximately 500,000 hectares of uranium properties [6]. - The company is focused on high-grade uranium expansion at the West McArthur project, with plans for significant exploration activities in 2026 [6].

Core Viewpoint - CVD Equipment Corporation has received an order for two PVT150™ Physical Vapor Transport Systems from Stony Brook University for their new semiconductor research center focused on silicon carbide crystal growth and other wide band gap materials [1] Company Summary - CVD Equipment Corporation (NASDAQ: CVV) is involved in providing equipment for semiconductor research and development [1] - The order from Stony Brook University signifies a commitment to advancing research in silicon carbide and wide band gap materials, which are critical for the semiconductor industry [1] Industry Summary - The establishment of the "onsemi Silicon Carbide Crystal Growth Center" at Stony Brook University highlights the growing importance of silicon carbide in semiconductor applications [1] - Research in wide band gap materials is essential for developing next-generation electronic devices, indicating a trend towards more advanced semiconductor technologies [1]

Core Viewpoint - CVD Equipment Corporation (CVV) has experienced significant stock declines following disappointing earnings results for Q2 2025, with a 20% drop compared to a 1.2% gain in the S&P 500 Index during the same period [1] Revenue and Earnings Performance - Q2 2025 revenues were reported at $5.1 million, a decrease of 19.4% from $6.3 million in Q2 2024 [2] - Gross profit fell by 30.4% year-over-year to $1.1 million, with gross margin narrowing to 20.9% from 24.3% [2] - The company recorded a net loss of $1.1 million, or $0.15 per share, compared to a net loss of $0.8 million, or $0.11 per share, in the same quarter of the previous year [2] Segment Performance - The CVD Equipment division generated $3.4 million in revenues, down 17.1% from $4.1 million year-over-year [3] - The SDC gas delivery systems unit reported revenues of $1.7 million, a decline of 25.1% from $2.3 million [3] - Year-to-date revenues reached $13.4 million, up 19.2% from $11.3 million in the first half of 2024, driven by the CVD Equipment segment [3] Key Business Metrics - Bookings for Q2 were approximately $4.5 million, an increase from $3.2 million in Q2 2024 [4] - Total bookings for the first half of 2025 were $7.3 million, down from $16.9 million a year earlier [4] - Backlog as of June 30, 2025, was $13.2 million, slightly down from $13.8 million at the end of March [4] Financial Position - Cash and cash equivalents totaled $7 million at the end of the quarter, down from $12.6 million at the end of 2024 [5] - Accounts receivable increased by $3.6 million, with expectations of collection in Q3 [5] - Working capital remained stable at $13.9 million compared to $13.8 million as of December 31, 2024 [5] Management Commentary - The CEO highlighted uncertainties due to proposed tariffs, reduced U.S. government funding, and gradual technology adoption [6] - The company is managing expenses and headcount while monitoring customer demand and geopolitical factors [6] Strategic Opportunities - The CEO emphasized growth opportunities in aerospace, defense, industrial silicon carbide applications, high-power SiC electronics, and EV battery materials [7] - Progress was noted with the CVD4000 SiC coating reactor system, which was shipped to an industrial customer in July 2025 [7] Influencing Factors - The revenue decline was attributed to reduced contracts in progress for both CVD Equipment and SDC segments, partially offset by higher non-system sales [8] - Gross margin contraction was due to lower volumes and higher costs from inflation and tariffs on imported components [8] - Customer concentration was significant, with two customers accounting for 23.4% and 17.7% of revenues [9] Guidance and Future Outlook - No formal numerical guidance was issued, but management reiterated a long-term growth strategy in key sectors while maintaining expense control [10] - Confidence was expressed that existing cash, anticipated receivable collections, and backlog revenues would support operations for the next 12 months [10] Other Developments - The company reported progress in shipping FirstNano systems for microelectronics and carbon nanotube applications in 2025 [11] - No acquisitions, divestitures, or restructuring actions were disclosed for the quarter [11]

Financial Data and Key Metrics Changes - The company's revenue for Q2 2025 was $5.1 million, a decrease of 38.5% compared to the same period in 2024, which had revenue of $8.3 million [4][10] - Year-to-date revenue reached $13.4 million, representing a 19.2% increase from the prior year period [5] - The net loss for Q2 2025 was $1.1 million, or $0.15 per share, compared to a net loss of $800,000, or $0.11 per share, in Q2 2024 [12] Business Line Data and Key Metrics Changes - Revenue from the CVD equipment segment decreased by $700,000, while the FCC segment saw a $600,000 decline [10] - The CVD equipment revenue decreased by 17.4% primarily due to lower revenues from contracts in progress [10] - FCC segment revenue was $1.4 million, down from $2.2 million in Q2 2024, attributed to fewer contracts in progress [11] Market Data and Key Metrics Changes - Orders for the second quarter were $4.5 million, driven by strong demand in the FCC segment for gas delivery equipment [5] - Total orders for 2025 were $7.3 million, significantly lower than $16.9 million in 2024 [5] - The backlog as of June 30, 2025, was $13.2 million, down from $13.8 million at March 31, 2025 [7] Company Strategy and Development Direction - The company is focused on growing its presence in key markets such as aerospace, defense, and industrial applications [7] - There is an ongoing commitment to expense management while pursuing new product launches, including the CVD4000 silicon carbide coating reactor system [8][10] - The company is exploring potential uses for silicon carbide in the nuclear energy market and pursuing opportunities in electric vehicle battery materials [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainties related to proposed tariffs and reduced U.S. government funding as factors impacting business [5] - The company is actively monitoring customer demand and geopolitical landscapes to manage operating expenses [6] - Future profitability is contingent on new equipment orders and managing inflationary pressures [12] Other Important Information - Cash and cash equivalents as of June 30, 2025, were $7 million, down from $12.6 million at the end of 2024 [12] - The company believes its cash flow will be sufficient to meet working capital and capital expense requirements for the next twelve months [13] Q&A Session Summary Question: Inquiry about NDA client specifics - The client under the NDA is domestic, located in the United States, but the company has agreements with both domestic and international clients [18][19] Question: Impact of tariffs on orders - Tariffs affect the cost of goods sold, particularly for components sourced from Europe and Asia, but the company is managing these inflationary pressures [20] Question: Revenue recognition for July delivery - Revenue is recognized using the overtime concept, meaning it will be reported in the quarter when the product is manufactured [21]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1 – Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, credit risk, revenue recognition, inventories, debt, earnings per share, stock-based compensation, income taxes, segment reporting, and risks and contingencies for CVD Equipment Corporation and its subsidiaries [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Metric (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------- | :------------ | :---------------- | :------------------------ | | Cash and cash equivalents | $7,023 | $12,598 | $(5,575) | | Total current assets | $18,499 | $19,986 | $(1,487) | | Total assets | $29,945 | $31,686 | $(1,741) | | Total current liabilities | $4,628 | $6,137 | $(1,509) | | Total liabilities | $4,764 | $6,318 | $(1,554) | | Total stockholders' equity | $25,181 | $25,368 | $(187) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's financial performance over specific periods, including revenues, expenses, and net loss Metric (in thousands) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change (YoY) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change (YoY) | | :-------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Revenue | $5,111 | $6,345 | (19.4%) | $13,427 | $11,267 | 19.2% |\n| Gross profit | $1,073 | $1,542 | (30.4%) | $3,769 | $2,326 | 61.9% |\n| Gross margin | 21.0% | 24.3% | (3.3 pp) | 28.1% | 20.7% | 7.4 pp |\n| Operating loss | $(1,140) | $(898) | (26.9%) | $(870) | $(2,526) | 65.5% |\n| Net loss | $(1,061) | $(761) | (39.4%) | $(701) | $(2,233) | 68.1% |\n| Loss per common share - basic | $(0.15) | $(0.11) | (36.4%) | $(0.10) | $(0.33) | 69.7% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details changes in the company's equity accounts, reflecting net loss and stock-based compensation over specific periods Metric (in thousands) | Metric (in thousands) | Balance at April 1, 2025 | Net Loss (Q2 2025) | Stock-based Compensation (Q2 2025) | Balance at June 30, 2025 | | :-------------------- | :----------------------- | :----------------- | :--------------------------------- | :----------------------- | | Total Stockholders' Equity | $25,992 | $(1,061) | $250 | $25,181 | | Metric (in thousands) | Balance at January 1, 2025 | Net Loss (H1 2025) | Stock-based Compensation (H1 2025) | Balance at June 30, 2025 | | :-------------------- | :------------------------- | :----------------- | :--------------------------------- | :----------------------- | | Total Stockholders' Equity | $25,368 | $(701) | $514 | $25,181 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods Metric (in thousands) | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(5,432) | $(3,772) |\n| Net cash used in investing activities | $(100) | $(182) |\n| Net cash used in financing activities | $(43) | $(40) |\n| Net decrease in cash and cash equivalents | $(5,575) | $(3,994) |\n| Cash and cash equivalents at end of period | $7,023 | $10,031 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [NOTE 1: BASIS OF PRESENTATION](index=8&type=section&id=NOTE%201:%20BASIS%20OF%20PRESENTATION) This section outlines the basis of preparation for the unaudited interim financial statements and their indicative nature - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim information and Form 10-Q instructions, with all necessary normal recurring accruals included. Operating results for the three and six months ended June 30, 2025, are not necessarily indicative of the full year's results[16](index=16&type=chunk) - As of June 30, 2025, the Company had **$7.0 million** in cash and cash equivalents and believes these, along with anticipated cash flows, receivables, backlog, inventory sales, and deposits, will be sufficient to fund working capital and capital equipment needs for at least the next 12 months[20](index=20&type=chunk) [NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%202:%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and methods used in preparing the financial statements, including revenue recognition and inventory valuation - Revenue for custom chemical vapor deposition equipment sales is recognized 'over time' using an input method based on costs incurred, as it reflects progress towards satisfying performance obligations. For non-system sales, revenue is recognized 'at a point in time' when control of products or services transfers to the customer[23](index=23&type=chunk)[24](index=24&type=chunk)[30](index=30&type=chunk) - Inventories are valued at the lower of cost (FIFO method) or net realizable value, with work-in-process and finished goods reflecting accumulated production costs. Obsolete or excess inventory is written down to its estimated net realizable value[32](index=32&type=chunk)[33](index=33&type=chunk) - The Company provides a standard one-year warranty on systems from final acceptance or fifteen months from shipment, with estimated warranty costs recorded at revenue recognition and included in 'Cost of revenue'[34](index=34&type=chunk) - The Company is evaluating the impact of new accounting standards ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statements Expenses), effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively[35](index=35&type=chunk)[36](index=36&type=chunk) [NOTE 3: CONCENTRATION OF CREDIT RISK](index=12&type=section&id=NOTE%203:%20CONCENTRATION%20OF%20CREDIT%20RISK) This section details the company's exposure to credit risk, particularly concerning cash, cash equivalents, and accounts receivable concentrations - Cash and cash equivalents decreased from **$12.6 million** at December 31, 2024, to **$7.0 million** at June 30, 2025, with **$5.9 million** in U.S. treasury securities at the latter date. The amount at risk exceeding FDIC limits was **$0.7 million** at June 30, 2025[38](index=38&type=chunk)[39](index=39&type=chunk) - Accounts receivable, net of a **$48 thousand** allowance for credit losses, included **31.5%** from one customer at June 30, 2025. At December 31, 2024, three customers represented **28.6%**, **14.0%**, and **11.9%** of total accounts receivable[41](index=41&type=chunk)[42](index=42&type=chunk) - Sales concentration for the three months ended June 30, 2025, showed two customers exceeding 10% of revenues, representing **23.4%** and **17.7%**. For the six months ended June 30, 2025, two customers represented **34.3%** and **15.4%** of revenues[44](index=44&type=chunk) [NOTE 4: REVENUE RECOGNITION](index=13&type=section&id=NOTE%204:%20REVENUE%20RECOGNITION) This section disaggregates revenue by market and recognition method, and discusses unrecognized contract revenue Revenue Disaggregation by Market and Recognition Method (in thousands) | Market | Three months ended June 30, 2025 (Over time) | Three months ended June 30, 2025 (Point in time) | Three months ended June 30, 2025 (Total) | | :-------- | :------------------------------------------- | :----------------------------------------------- | :--------------------------------------- | | Energy | $ - | $ 7 | $ 7 | | Aerospace | $ 1,412 | $ 562 | $ 1,974 | | Industrial| $ 1,912 | $ 316 | $ 2,228 | | Research | $ 716 | $ 186 | $ 902 | | **Total** | **$ 4,040** | **$ 1,071** | **$ 5,111** | | Market | Six months ended June 30, 2025 (Over time) | Six months ended June 30, 2025 (Point in time) | Six months ended June 30, 2025 (Total) | | :-------- | :----------------------------------------- | :--------------------------------------------- | :------------------------------------- | | Energy | $ - | $ 14 | $ 14 | | Aerospace | $ 3,251 | $ 1,350 | $ 4,601 | | Industrial| $ 6,036 | $ 723 | $ 6,759 | | Research | $ 1,470 | $ 583 | $ 2,053 | | **Total** | **$ 10,757** | **$ 2,670** | **$ 13,427** | - The Company has approximately **$10.9 million** in unrecognized contract revenue at June 30, 2025, which is expected to be substantially recognized within the next twelve months using the over-time revenue recognition method[48](index=48&type=chunk) [NOTE 5: INVENTORIES](index=15&type=section&id=NOTE%205:%20INVENTORIES) This section provides a breakdown of inventory categories and highlights risks associated with specific inventory items Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Raw materials | $1,134 | $1,217 | | Work-in-process | $1,005 | $765 | | Finished goods | $189 | $133 | | **Total** | **$2,328** | **$2,115** | - Included in inventories is approximately **$0.4 million** related to PVT 150/200 systems, purchased and built in anticipation of future orders. The Company faces a risk of additional charges to reduce carrying value if these orders do not materialize[52](index=52&type=chunk)[54](index=54&type=chunk) [NOTE 6: LONG-TERM DEBT](index=16&type=section&id=NOTE%206:%20LONG-TERM%20DEBT) This section details the company's long-term debt obligations, including loan agreements and repayment terms - The Company has a loan agreement from September 2022 for **$432 thousand**, secured by equipment, with a **6% interest rate**, payable in **60 equal monthly installments of $8,352**[55](index=55&type=chunk) [NOTE 7: EARNINGS PER SHARE](index=16&type=section&id=NOTE%207:%20EARNINGS%20PER%20SHARE) This section presents the calculation of basic and diluted earnings per share, including the weighted average common shares outstanding Weighted Average Common Shares Outstanding | Period | Basic Weighted Average Common Shares Outstanding | Diluted Weighted Average Shares Outstanding | | :----- | :--------------------------------------------- | :------------------------------------------ | | Q2 2025 | 6,867,868 | 6,867,868 | | Q2 2024 | 6,816,956 | 6,816,956 | | H1 2025 | 6,860,846 | 6,860,846 | | H1 2024 | 6,813,127 | 6,813,127 | - All stock options were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2025 and 2024, because their effect was antidilutive[56](index=56&type=chunk) [NOTE 8: STOCK-BASED COMPENSATION EXPENSE](index=17&type=section&id=NOTE%208:%20STOCK-BASED%20COMPENSATION%20EXPENSE) This section details the stock-based compensation expense recognized across various line items and unrecognized compensation costs Stock-Based Compensation Expense (in thousands) | Line Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $26 | $38 | $52 | $76 | | Research and development | $45 | $47 | $92 | $94 | | Selling | $21 | $27 | $48 | $54 | | General and administrative| $158 | $155 | $322 | $310 | | **Total** | **$250** | **$267** | **$514** | **$534** | - As of June 30, 2025, there was **$1.1 million** of unrecognized compensation costs related to stock options, expected to be recognized over a weighted average period of **1.6 years**[59](index=59&type=chunk) [NOTE 9: INCOME TAXES](index=18&type=section&id=NOTE%209:%20INCOME%20TAXES) This section explains the company's income tax position, including the valuation allowance against net deferred tax assets - The Company has provided a **full valuation allowance** against its net deferred tax assets as of June 30, 2025, and December 31, 2024, due to management's assessment that it is more likely than not that these assets may not be realized in the future, primarily based on four years of operating losses[60](index=60&type=chunk) [NOTE 10: SEGMENT REPORTING](index=18&type=section&id=NOTE%2010:%20SEGMENT%20REPORTING) This section provides financial information by reportable segment and geographic area, detailing revenue contributions - The Company operates through three reportable segments: CVD Equipment (chemical vapor deposition, physical vapor transport, and thermal process equipment), SDC (ultra-high purity gas and chemical delivery control systems), and MesoScribe (electronic printing services and products, operations closed during 2024)[61](index=61&type=chunk)[64](index=64&type=chunk) Segment Revenue (in thousands) | Segment | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | CVD Equipment | $3,403 | $4,107 | $9,718 | $7,054 | | SDC | $1,734 | $2,315 | $3,876 | $4,246 | | MesoScribe | $9 | $55 | $31 | $114 | | **Total Segment Revenue** | **$5,146** | **$6,477** | **$13,625** | **$11,414** | Revenue by Geographic Area (in thousands) | Geographic Area | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $4,630 | $5,822 | $12,585 | $10,143 | | North America, excluding US | $ - | $16 | $3 | $16 | | Europe, Middle East and Africa | $386 | $220 | $564 | $343 | | Asia-Pacific | $95 | $287 | $275 | $765 | | **Consolidated Total Revenue** | **$5,111** | **$6,345** | **$13,427** | **$11,267** | [NOTE 11: RISKS AND CONTINGENCIES](index=21&type=section&id=NOTE%2011:%20RISKS%20AND%20CONTINGENCIES) This section outlines various risks and contingencies impacting the company, including tariffs and geopolitical conflicts - The Company faces risks from tariffs on imports, which may reduce gross margins and affect future order rates. Geopolitical conflicts (e.g., war in Ukraine) restrict raw material procurement (nickel, integrated circuits) and impact sales into certain regions (China, Russia, Eastern European, and Asian regions)[70](index=70&type=chunk)[72](index=72&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition, including an executive summary, business updates, detailed analysis of results of operations for the three and six months ended June 30, 2025 and 2024, liquidity and capital resources, and critical accounting estimates. It highlights key financial changes, strategic focus areas, and operational challenges [Executive Summary](index=23&type=section&id=Executive%20Summary) This section provides an overview of CVD Equipment Corporation's business, core strategy, and focus on advanced materials markets - CVD Equipment Corporation designs, develops, and manufactures equipment for advanced materials markets, including aerospace, compound semiconductor, battery energy storage, and industrial applications. The core strategy focuses on growth end markets related to aerospace, microelectronics (electrification of everything), and industrial applications[77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) [Business Update](index=23&type=section&id=Business%20Update) This section highlights recent business developments, key financial metrics, significant orders, and strategic market evaluations Key Business Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :-------------- | :-------------------- | :-------------------- | :----------- | | Revenue | $5.1 | $6.3 | (19.4%) | | Gross profit | $1.1 | $1.5 | (30.4%) | | Total bookings | $4.5 | $3.2 | 40.6% | | Backlog (end of period) | $13.2 | N/A | (4.3%) (vs Mar 31, 2025) | | Cash & cash equivalents (end of period) | $7.0 | N/A | (44.5%) (vs Dec 31, 2024) | - The Company received significant orders in 2024, including a PVT200 system for 200mm silicon carbide wafers (shipped Q3 2024), a **$10.0 million** multisystem order for SiC protective coating (first unit shipped July 2025), and a follow-on CVI 3500 system for ceramic matrix composites in aerospace[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - The Company is evaluating market conditions to expand product offerings in the power electronics market, particularly for SiC semiconductors used in high energy efficiency applications like EVs and AI data centers[83](index=83&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 and 2024](index=25&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) This section analyzes the company's financial performance for the three-month periods, focusing on revenue, gross profit, and net loss changes Financial Performance (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :------ | :------ | :--------- | :--------- | | Revenue | $5,111 | $6,345 | $(1,234) | (19.4%) | | Cost of revenue | $4,038 | $4,803 | $(765) | (15.9%) | | Gross profit | $1,073 | $1,542 | $(469) | (30.4%) | | Gross margin | 21.0% | 24.3% | | | | Total operating expenses| $2,213 | $2,440 | $(227) | (9.3%) | | Operating loss | $(1,140)| $(898) | $(242) | (26.9%) | | Net loss | $(1,061)| $(761) | $(300) | (39.4%) | - The decrease in revenue was primarily due to lower system revenues from both the CVD Equipment segment (down **$0.7 million** or **17.4%**) and the SDC segment (down **$0.6 million** or **25.1%**), partially offset by an increase in non-system revenue for CVD Equipment[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Order backlog declined from **$13.8 million** at March 31, 2025, to **$13.2 million** at June 30, 2025, mainly due to lower orders in the CVD Equipment segment. Backlog includes **$12.0 million** for contracts in progress/not started and **$1.2 million** for non-system orders[97](index=97&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 versus June 30, 2024](index=28&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20versus%20June%2030,%202024) This section analyzes the company's financial performance for the six-month periods, focusing on revenue, gross profit, and net loss changes Financial Performance (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :------- | :------- | :--------- | :--------- | | Revenue | $13,427 | $11,267 | $2,160 | 19.2% | | Cost of revenue | $9,658 | $8,941 | $717 | 8.0% | | Gross profit | $3,769 | $2,326 | $1,443 | 61.9% | | Gross margin | 28.1% | 20.7% | | | | Total operating expenses| $4,639 | $4,852 | $(213) | (4.4%) | | Operating loss | $(870) | $(2,526) | $1,656 | 65.5% | | Net loss | $(701) | $(2,233) | $1,532 | 68.1% | - The increase in revenue was primarily driven by higher revenues from the CVD Equipment segment (up **$2.7 million** or **37.8%**), mainly from increased contract and non-system revenues, partially offset by lower revenues from the SDC segment (down **$0.4 million** or **8.7%**)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - Gross profit increased by **$1.4 million**, and gross margin improved from **20.7% to 28.1%**, primarily due to higher system and non-system revenues in the CVD Equipment segment[113](index=113&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term obligations, including cash positions and working capital Liquidity and Cash Flow (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Working capital | $13,900 | $13,800 | | Cash and cash equivalents | $7,000 | $12,600 | | Cash Flow Activity (Six months ended June 30, 2025) | Amount (in thousands) | | :------------------------------------------------ | :-------------------- | | Net cash used in operating activities | $(5,432) | | Net cash used in investing activities | $(100) | | Net cash used in financing activities | $(43) | - The Company believes its current cash and cash equivalent positions, along with projected cash flow from operations, will be sufficient to meet working capital and capital expenditure requirements for the next twelve months[124](index=124&type=chunk) [Critical Accounting Estimates](index=31&type=section&id=Critical%20Accounting%20Estimates) This section discusses the significant judgments and assumptions used in financial reporting, particularly for revenue recognition and asset impairment - The preparation of financial statements requires significant estimates and assumptions, particularly for revenue recognition on custom equipment contracts (over-time method based on costs incurred) and the evaluation of long-lived assets for impairment[125](index=125&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk) - Inaccuracies in estimating total sales, related costs, and progress toward completion on long-term contracts could materially impact gross margins or lead to future loss recognition[130](index=130&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no quantitative or qualitative disclosures about market risk applicable to the Company for the reported period - The Company has no applicable quantitative and qualitative disclosures about market risk for this reporting period[132](index=132&type=chunk) [Item 4 – Controls and Procedures](index=32&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management, under the direction of the CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures, concluding they were effective as of June 30, 2025. No material changes in internal controls over financial reporting occurred during the quarter - The Company's disclosure controls and procedures were evaluated and determined to be **effective** as of June 30, 2025, providing reasonable assurance that information is accumulated and communicated appropriately[133](index=133&type=chunk)[134](index=134&type=chunk) - There were **no changes in internal controls** over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[135](index=135&type=chunk) [PART II - OTHER INFORMATION](index=33&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1 – Legal Proceedings](index=33&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) This section states that there are no legal proceedings to report for the Company - There are **no legal proceedings** to report[138](index=138&type=chunk) [Item 1A-Risk Factors](index=33&type=section&id=Item%201A-Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - **No material changes** to the risk factors disclosed in the Annual Report on Form 10-K filed on March 19, 2025[139](index=139&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds to disclose - There were **no unregistered sales of equity securities** or use of proceeds to report[140](index=140&type=chunk) [Item 3 – Defaults Upon Senior Securities](index=33&type=section&id=Item%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities during the reporting period - There were **no defaults upon senior securities** to report[141](index=141&type=chunk) [Item 4 – Mine Safety Disclosures](index=33&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company - Mine safety disclosures are **not applicable** to the Company[142](index=142&type=chunk) [Item 5 – Other Information](index=33&type=section&id=Item%205%20%E2%80%93%20Other%20Information) This section indicates that there is no other information to report - There is **no other information** to report[143](index=143&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and Inline XBRL data files - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer (**31.1, 31.2, 32.1, 32.2**) and various Inline XBRL Taxonomy Extension files (**101.1, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104**)[144](index=144&type=chunk)[146](index=146&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) This section formally concludes the report with the required signatures from the company's principal officers [Signatures](index=35&type=section&id=Signatures) The report is duly signed on August 12, 2025, by Emmanuel Lakios, President and Chief Executive Officer, and Richard Catalano, Executive Vice President and Chief Financial Officer, on behalf of CVD Equipment Corporation - The report was signed on **August 12, 2025**, by Emmanuel Lakios, President and Chief Executive Officer, and Richard Catalano, Executive Vice President and Chief Financial Officer[149](index=149&type=chunk)[150](index=150&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of CVD Equipment Corporation's financial and operational performance for Q2 2025, highlighting key metrics and strategic developments [Second Quarter 2025 Financial Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Highlights) CVD Equipment Corporation reported a revenue decrease of 19.4% year-over-year to $5.1 million for Q2 2025, with gross margin declining to 21.0%, resulting in a net loss of $1.1 million Key Financial Performance (Q2 2025 vs. Q2 2024 & YTD) | Metric | Q2 2025 | Q2 2024 | YoY Change | YTD 2025 | YTD 2024 | YTD Change | | :------------------ | :------ | :------ | :--------- | :------- | :------- | :--------- | | Revenue | $5.1M | $6.3M | -19.4% | $13.4M | $11.3M | +19.2% | | Gross Margin | 21.0% | 24.3% | -3.3 pp | - | - | - | | Net Loss | $(1.1)M | $(0.8)M | $(0.3)M | - | - | - | | Basic & Diluted EPS | $(0.15) | $(0.11) | $(0.04) | - | - | - | - Cash and cash equivalents decreased to **$7.0 million** as of June 30, 2025, from **$12.6 million** as of December 31, 2024[7](index=7&type=chunk) [Second Quarter 2025 Operational Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Operational%20Performance%20Highlights) Orders for Q2 2025 were $4.5 million, primarily driven by demand in the SDC segment, with total orders for the first six months decreasing year-over-year Orders and Backlog (Q2 2025 & YTD) | Metric | Q2 2025 | YTD 2025 | YTD 2024 | June 30, 2025 | March 31, 2025 | | :------- | :------ | :------- | :------- | :-------------- | :------------- | | Orders | $4.5M | $7.3M | $16.9M | - | - | | Backlog | - | - | - | $13.2M | $13.8M | - SDC segment experienced strong demand for gas delivery systems, leading to a significant increase in its backlog during the quarter, despite lower revenue due to timing of orders[7](index=7&type=chunk) - Accounts receivable increased by **$3.6 million** during Q2 2025 due to achieved contract milestones, with collection expected in the third quarter[7](index=7&type=chunk) - The company improved operating efficiency during 2025 and continues to evaluate opportunities to further reduce operating costs[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management discusses Q2 2025 performance, strategic market positioning, product offerings, and the company's long-term strategy and outlook [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) President and CEO Manny Lakios stated that Q2 bookings and revenue were influenced by uncertainties related to proposed tariffs, reduced US government funding, and product adoption - Bookings and revenue in Q2 reflected uncertainties related to proposed tariffs, reduced US government funding for universities, a lag in product adoption, and the dynamic nature of emerging growth markets[4](index=4&type=chunk) - Management is actively monitoring evolving customer demand, geopolitical landscape, and potential tariff impacts, while tightly managing operating expenses and headcount[4](index=4&type=chunk) [Strategic Market Positioning and Product Offerings](index=1&type=section&id=Strategic%20Market%20Positioning%20and%20Product%20Offerings) CVD Equipment Corporation is strategically positioned to provide solutions across key target markets including aerospace, industrial, SiC high-power electronics, and EV battery materials - CVD Equipment Corporation is well-positioned in key target markets: aerospace and defense, industrial applications (SiC on graphite, nuclear energy), SiC high-power electronics, and EV battery materials[5](index=5&type=chunk)[6](index=6&type=chunk) - Key product offerings include CVI systems for CMCs, SiC coating reactor systems, PVT150™ and PVT200™ SiC crystal growth systems, and PowderCoat™ systems for advanced anode materials[6](index=6&type=chunk) - The first CVD4000™ SiC coating reactor system was shipped to an industrial customer in early July 2025, with resources allocated to this launch partially attributing to reduced revenue from other contracts[8](index=8&type=chunk) [Long-Term Strategy and Outlook](index=2&type=section&id=Long-Term%20Strategy%20and%20Outlook) The company remains committed to its long-term strategy of expanding its presence across key markets while maintaining disciplined expense management to achieve sustained profitability - Long-term strategy focuses on growing market presence and disciplined expense management[9](index=9&type=chunk) - The goal is to achieve sustained profitability and positive cash flow[9](index=9&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of CVD Equipment Corporation's business, forward-looking statement disclaimers, and investor contact details [About CVD Equipment Corporation](index=2&type=section&id=About%20CVD%20Equipment%20Corporation) CVD Equipment Corporation designs, develops, and manufactures various chemical vapor deposition and thermal processing systems for industrial and research applications across key markets - CVD Equipment Corporation designs, develops, and manufactures chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment for materials and coatings[10](index=10&type=chunk) - Products are used in production and R&D centers, targeting aerospace & defense, SiC high-power electronics, EV battery materials, and industrial applications[10](index=10&type=chunk) - The company provides an application laboratory for customers to optimize process performance collaboratively[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, involving known and unknown risks and uncertainties - Forward-looking statements are protected by the Private Securities Litigation Reform Act of 1995[11](index=11&type=chunk) - Potential risks and uncertainties include market and business conditions, success of growth/sales strategies, customer changes, product delays, competition, financing, new product development, future profitability/expansion, raw material sourcing, and geopolitical developments[11](index=11&type=chunk) - The company assumes no obligation to update or supplement any forward-looking statements[11](index=11&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) Contact information for investor relations is provided, with Richard Catalano, Executive Vice President & CFO, as the primary contact - Investor relations contact: Richard Catalano, Executive Vice President & CFO[12](index=12&type=chunk) - Contact details: Phone: (631) 981-7081, Email: investorrelations@cvdequipment.com[12](index=12&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of operations and balance sheets for CVD Equipment Corporation [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue decreased to $5.1 million, resulting in a net loss of $(1.1) million, while year-to-date revenue increased to $13.4 million with improved net loss Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :----- | | Revenue | $5,111 | $6,345 | $(1,234) | | Cost of revenue | $4,038 | $4,803 | $(765) | | Gross profit | $1,073 | $1,542 | $(469) | | Operating expenses | $2,213 | $2,440 | $(227) | | Operating loss | $(1,140) | $(898) | $(242) | | Net loss | $(1,061) | $(761) | $(300) | | Basic and diluted loss per share | $(0.15) | $(0.11) | $(0.04) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :----- | | Revenue | $13,427 | $11,267 | $2,160 | | Cost of revenue | $9,658 | $8,941 | $717 | | Gross profit | $3,769 | $2,326 | $1,443 | | Operating expenses | $4,639 | $4,852 | $(213) | | Operating loss | $(870) | $(2,526) | $1,656 | | Net loss | $(701) | $(2,233) | $1,532 | | Basic and diluted loss per share | $(0.10) | $(0.33) | $0.23 | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $29.9 million, primarily due to reduced cash and cash equivalents, while total stockholders' equity remained stable Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (Assumed) | Dec 31, 2024 | Change | | :-------------------------- | :---------------------- | :----------- | :----- | | Cash and cash equivalents | $7,023 | $12,598 | $(5,575) | | Accounts receivable, net | $4,993 | $2,149 | $2,844 | | Contract assets | $3,768 | $2,226 | $1,542 | | Inventories | $2,328 | $2,115 | $213 | | Total current assets | $18,499 | $19,986 | $(1,487) | | Property, plant and equipment, net | $11,394 | $11,699 | $(305) | | Total assets | $29,945 | $31,686 | $(1,741) | | Current liabilities | $4,628 | $6,137 | $(1,509) | | Long-term debt, net | $136 | $181 | $(45) | | Total stockholders' equity | $25,181 | $25,368 | $(187) | | Total liabilities and stockholders' equity | $29,945 | $31,686 | $(1,741) | - Note: The balance sheet header in the original document states 'June 30, 2024' for the current period, which is inconsistent with the 'Second Quarter 2025 Financial Results' report title and income statement dates. For analysis, it is assumed to be 'June 30, 2025'[16](index=16&type=chunk)

Core Viewpoint - CanAlaska Uranium Ltd. has announced the commencement of its 2025 drill program at the Constellation uranium project, marking the first drilling activity on this site, which is strategically located in the southeastern Athabasca Basin [2][8]. Group 1: Drill Program Details - The 2025 drill program will involve 1,100 to 1,400 meters of drilling, consisting of 3 to 4 drill holes targeting multiple areas identified through a recent helicopter-supported VTEM survey and ground prospecting [3][8]. - The drill program is fully funded by Bayridge Resources Corp. under an option earn-in agreement, which could lead to up to $5 million in exploration expenditures on the project [2][8]. Group 2: Geological Context and Target Areas - The Constellation project is situated in an area with favorable geology for basement-hosted uranium deposits, with strong electromagnetic conductors identified as potential targets for uranium mineralization [7][8]. - Target Area A has shown elevated uranium concentrations, with a maximum value of 52.5 ppm, while Target Area B has the highest concentration recorded at 488 ppm, indicating significant mineralization potential [9][10]. Group 3: Company Background - CanAlaska is a prominent explorer of uranium in the Athabasca Basin, holding approximately 500,000 hectares of uranium properties and focusing on Tier 1 uranium deposit discovery [14]. - The company has a project generator model and has recently achieved success in the West McArthur high-grade uranium expansion, indicating a strong track record in uranium exploration [14].

Core Insights - CanAlaska Uranium Ltd. reported high-grade uranium assay results from its Pike Zone at the West McArthur project, with grades reaching up to 85.4% U3O8 [1][2][19] - The winter 2025 drill program significantly expanded the high-grade footprint of the Pike Zone, confirming multiple high-grade intervals [1][4][19] Drill Results - Drillhole WMA079-01 intersected 8.6 metres at 34.59% U3O8, including 5.5 metres at 53.90% U3O8 [1][4] - Drillhole WMA076-01 intersected 14.8 metres at 14.71% U3O8, including 5.4 metres at 39.67% U3O8 [1][4] - The winter program included 29 unconformity tests, with 22 containing uranium mineralization, indicating a strike length of approximately 250 metres [4][19] Expansion and Future Plans - The company is currently conducting a summer drill program aimed at achieving an estimated 15 to 20 additional unconformity target intersections [16][19] - The unconformity target area remains untested for approximately 1,000 metres to the west and 600 metres to the east of the Pike Zone [16][19] Market Context - The uranium market fundamentals are described as strong, with ongoing reserve depletion at current tier-1 producing assets, highlighting the importance of new high-grade discoveries like Pike Zone [5][19] - CanAlaska is focused on Tier 1 uranium deposit discovery and delineation in a secure jurisdiction, with a significant portfolio in the Athabasca Basin [23]

Core Viewpoint - CVD Equipment Corporation experienced a significant revenue increase in Q1 2025, but its stock has declined sharply since the earnings report, indicating market concerns despite improved financial performance [1][2]. Financial Performance - Revenues rose 68.9% year over year to $8.3 million from $4.9 million, also marking a 12.2% increase from Q4 2024 [2] - Gross profit increased to $2.7 million from $0.8 million, with gross margin expanding to 32.4% from 16.2% [3] - Operating income improved to $0.3 million from a loss of $1.6 million, and net income was $0.4 million, or $0.05 per diluted share, compared to a loss of $1.5 million, or $0.22 per share, in Q1 2024 [4] Order Activity and Backlog - First-quarter 2025 orders totaled $2.8 million, down from previous levels, leading to a backlog reduction from $19.4 million at the end of 2024 to $13.8 million at the end of March 2025 [4] - A $1.2 million semiconductor system order was secured in early April 2025, expected to support near-term revenue [5] Management Insights - CEO Emmanuel Lakios acknowledged improved revenue but cautioned about volatile market conditions and the impact of recently imposed tariffs on costs and future order rates [6] - The company implemented cost control measures, including workforce reductions, to manage demand variability while focusing on long-term profitability [7] Cash Flow and Working Capital - Cash balance decreased from $12.6 million at the end of 2024 to $10.2 million at the end of March 2025, but working capital improved to $14.5 million from $13.8 million [8] - Management expressed confidence that current cash reserves and projected operating cash flow will meet working capital needs over the next 12 months [10] Operational Adjustments - A restructuring initiative was implemented to align operating costs with customer demand, involving workforce reductions and a review of cost efficiencies [11]