Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million from $5.5 million in Q3 2024 [27] - Gross profit rose to $4.8 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [28] - Operating income slightly decreased to $1.38 million, with an operating margin of 19.5%, compared to 25.4% in Q3 2024 [30][31] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total revenue [27][28] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [27][28] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [27][28] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6%, reaching $2.7 million compared to $1.3 million in Q3 2024 [9][28] - Revenue from the Echoscope accounted for 57.7% of marine technology revenue, while DAVD contributed 42.3% [9] Company Strategy and Development Direction - The company aims to increase market share in underwater imaging sensors, particularly in the defense sector, leveraging the unique capabilities of the Echoscope and DAVD technologies [6][14] - The launch of the NanoGen series sonars is expected to enhance the company's position in the defense and underwater robotics markets [18][24] - The company is focused on executing its M&A strategy to pivot the revenue model towards multi-year, multiple sales opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth trajectory, particularly in defense-related markets [4][33] - The company is optimistic about the future, citing strong interest in its technologies and ongoing trials with defense customers [14][18] Other Important Information - The company has no debt and reported $26.2 million in cash and cash equivalents as of July 31, 2025, an increase from $22.5 million at the end of the previous fiscal year [31] - The company is experiencing delays in contract awards for the marine engineering business due to funding issues in defense programs [10] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope, which allows for integration into smaller platforms [36][37] Question: Change in DAVD-related revenue target - The company expects to achieve $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million last year [38] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to regulatory barriers [42][43] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have declined due to shifts in funding for offshore renewables [45][46] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, emphasizing a focus on M&A opportunities instead [49][51]