Summary of InVenture (INV) Conference Call - June 12, 2025 Company Overview - InVenture operates as a conglomerate model, launching wholly owned companies in collaboration with multinationals, acting as founders, funders, owners, and operators of these companies [3][4][10] - The company focuses on technology solutions that are either invented or adopted by multinationals, which are outside their core operations [4][9] Core Model and Strategy - InVenture employs a closed loop model with four core aspects: uniqueness of technology, fully developed technology, leveraging multinational experience, and catalyzing early adoption through multinational relationships [4][6][7] - The model aims to reduce risk by ensuring that technology solutions are in pilot form before full commercial launch, thus increasing the likelihood of success [7][12] - The company has launched four companies to date, including PureCycle and Aeroflex in partnership with Procter & Gamble, and Excelsius, which addresses critical cooling technology needs in data centers [10][11][15] Excelsius and Market Opportunity - Excelsius is positioned to capitalize on the growth of data centers and generative AI, addressing a critical infrastructure gap in cooling technology [15][16] - The current cooling methods in data centers are inadequate, with 8% still using air conditioning, while the industry is moving towards two-phase cooling solutions [16][18] - Excelsius offers a cost-effective two-phase cooling solution that reduces energy costs and allows for denser server configurations, providing both critical need and economic incentive for adoption [21][22] Financial Performance and Growth Potential - InVenture aims to demonstrate high earnings per share growth by systematically launching companies that exhibit an S-curve of growth, potentially leading to premium valuations [14] - The company has invested approximately $10 million into PureCycle, which went public at a $1.2 billion valuation and is currently trading at around $2 billion [23] - The company plans to maintain a disciplined capital allocation approach, aiming to launch approximately one company per year while managing operational strain and dilution of focus [34][36] Capital Strategy and Market Position - InVenture has closed approximately $150 million in financing and plans to raise additional capital to support its growth and operational needs [40][41] - The company emphasizes the importance of a strong capital markets team to navigate funding challenges and ensure long-term success [43][45] - The value proposition for investors lies in accessing early-stage venture opportunities with a better risk-adjusted basis, particularly through the growth potential of Excelsius and the systematic launch of new companies [52][54] Conclusion - InVenture's model is designed to create value through strategic partnerships and innovative technology solutions, with Excelsius serving as a key proof point for the company's growth strategy [53][54]

Financial Performance - AstroNova achieved a 14.4% revenue increase in Q1 FY2026, driven by double-digit growth in both segments[10] - Product Identification revenue grew by 13.8% year-over-year to $26.3 million[22] - Aerospace revenue increased by 16.8% year-over-year to $11.4 million[23] - Adjusted EBITDA margin increased to 8.3% in Q1 FY26[45] - The company reaffirms FY2026 revenue guidance to range from $160 million to $165 million, with an adjusted EBITDA margin expected to expand to 8.5% to 9.5%[15, 55] Strategic Initiatives and Cost Reduction - AstroNova is implementing cost reduction actions, with $1.9 million of annualized savings achieved in Q1 FY26 and a total of $3 million expected in the first half of FY2026[15] - The company reduced headcount by 10% and simplified the leadership structure[7] - Three Product ID products were launched, with six more in development[12] Orders and Backlog - Aerospace orders increased from $25.5 million in Q1 FY25 to $31.6 million in Q1 FY26[18] - Product Identification backlog increased from $33.1 million in Q1 FY25 to $34.9 million in Q1 FY26[18] Aerospace Sector - 42% of total unit shipments in Aerospace constituted ToughWriter shipments, with a target of over 80% by year-end[28] - The company renewed a $10 million multi-year Aerospace defense contract[13]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $21.5 million, with product revenue of $9.8 million and R&D revenue of $11.6 million. For the year ended December 31, 2024, revenue was $59.3 million compared to $62 million in the prior year [29][31] - The net loss for Q4 2024 was $10.4 million, down from $15.3 million in Q4 2023. The net loss for the year was $65.3 million compared to $84.4 million in the prior year [37][40] - Product gross margin was 63% in Q4 2024, down from 71% in Q4 2023. For the year, gross margin was 56%, compared to 63% the prior year [34][35] Business Line Data and Key Metrics Changes - The company is focused on expanding its Pharma Biocatalysis business, which has shown growth and stable gross margins, providing a solid foundation for investment in new technologies [32][33] - The ECO Synthesis platform is expected to achieve commercial liftoff in 2025, transitioning from development to commercial execution [10][11] Market Data and Key Metrics Changes - The company is seeing increased customer engagement for its RNA ligase and ECO Synthesis platforms, with multiple feasibility studies completed with leading siRNA innovator companies [9][12] - The company aims to secure a CDMO scale-up partner in 2025 to facilitate larger scale manufacturing for clinical trials and commercial production [21][23] Company Strategy and Development Direction - The company is transitioning from a declining business model to one focused on growth, particularly through its ligase and ECO Synthesis platforms [32][33] - The strategy includes building a full-service development and manufacturing offering to capture the emerging drug innovator market [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved revenue growth in 2025 and beyond, driven by the maturation of the ligase and ECO services platform [32][38] - The company is guiding for total 2025 revenue in the range of $64 million to $68 million, expecting double-digit growth across its entire revenue base [38][40] Other Important Information - The company ended 2024 with $73.5 million in cash, cash equivalents, and short-term investments, which is expected to fund operations until achieving cash flow positivity by the end of 2026 [40] Q&A Session Summary Question: What will drive the value proposition in rare disease markets? - Management believes both validated platforms and successful case studies from larger indications will drive interest in rare disease markets [58] Question: How will the company communicate progress to the market? - The company will carefully balance communication of progress while maintaining confidentiality with partners [62] Question: Can you elaborate on the customer pipeline and revenue conversion? - The company indicated that relationships with customers are multifaceted and evolve over time, making it difficult to categorize them neatly [71][74] Question: What are the expectations for gross margins in 2025? - Management expects gross margins to improve year-over-year as they retire lower-margin products [85] Question: How will the GMP facility impact cash flow guidance? - The GMP facility is still in planning phases, and more visibility will be available in the summer [91] Question: Will the company consider alternative payment structures with cash-strapped innovators? - The company is open to sensible upfront payments in exchange for back-end economics, recognizing the financial constraints of smaller innovators [125]