Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, compared to $4.6 million for the same period in fiscal 2025, and $6.3 million in the previous quarter [18] - Gross margin was 54.8% in the second quarter of fiscal 2026, up from 38.6% in the year-ago quarter but down from 58.1% in the preceding quarter [18] - The operating loss for the second quarter of fiscal 2026 was $3.2 million, an improvement from a loss of $5.6 million in the prior year period and a loss of $2.2 million in the previous quarter [19] - The net loss for the second quarter of fiscal 2026 was $3.2 million or $0.11 per diluted share, compared to a net loss of $2.2 million or $0.08 per diluted share for the same period in fiscal 2025 [20] Business Line Data and Key Metrics Changes - Sales to KYEC were $802,000 or 12.5% of revenues, compared to $650,000 or 14.3% in the same period a year ago [16] - Sales to Nokia were $200,000 or 3.1% of revenues, down from $812,000 or 17.8% in the same period a year ago [16] - Military defense sales accounted for 28.9% of second quarter shipments, down from 40.2% in the comparable period a year ago [16] - SigmaQuad sales represented 50.1% of second quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [16] Market Data and Key Metrics Changes - The company is focusing on the military defense sector and edge applications, with significant interest in low power solutions for drones and military vehicles [10][12] - The Gemini II project has been approved for prototyping by an offshore defense contractor, indicating strong market validation [10] Company Strategy and Development Direction - The company aims to convert proof of concept projects into commercial customers and extend those relationships into large production programs [7] - The focus is on hardware and software development for Gemini II and the acquisition of necessary IP for the PLATO chip [6][12] - The company is prioritizing edge applications over data center solutions due to resource limitations and positive market feedback [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini II, particularly in defense applications, and highlighted the importance of low power consumption [45] - The company is actively engaging with strategic partners for the PLATO chip, which is expected to tape out in early calendar 2027 [13] - Management noted that the recent Cornell University validation of their technology has generated increased interest from potential customers [86] Other Important Information - The company closed a $50 million equity financing to accelerate execution across hardware and software development [5] - The company had $25.3 million in cash and cash equivalents as of September 30, 2025, compared to $13.4 million at the end of the previous quarter [20] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged with the auto industry but sees potential for future adaptation of their technology in that space [23] Question: Was the recent $50 million placement with a strategic investor? - The placement was not with a strategic investor and there is no required holding period for the shares [26] Question: Is there a plan to have Cornell validate the Gemini II technology? - Discussions are ongoing to get a Gemini II board to Cornell and other researchers for validation [30] Question: How is the company differentiating its APU versus GPU competitors? - The company emphasizes its low power consumption and competitive performance metrics compared to NVIDIA GPUs [45] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be in the tens of billions, with the company well-positioned to address it due to its power profile and algorithm work [53] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and will be distributed evenly between Gemini II and PLATO development [59]