Financial Data and Key Metrics Changes - The company reported Q2 revenue of $7.5 million, exceeding guidance and reflecting a 98% year-over-year increase, driven by strong product demand [3][29] - Non-GAAP gross margin reached 31%, attributed to a favorable product mix, particularly in the defense sector [3][30] - Operating expenses were $28.8 million, down 5% year-over-year, indicating disciplined spending while executing growth initiatives [30] - The net loss per share improved to $0.03, better than the guidance range of $0.15 to $0.21 [31] Business Line Data and Key Metrics Changes - The A1 product platform was launched, featuring a battery with 900 watt hours per liter and a 3C charge rate, now in commercial qualification with customers [4][3] - The company has begun sampling the A1 battery to major smartphone OEMs and AR eyewear customers, indicating a shift towards commercialization [2][8] - Progress in the defense sector was noted, with increased customer interest and sampling efforts underway [14][21] Market Data and Key Metrics Changes - The company is experiencing strong demand in the smartphone and AR markets, with expectations for increased orders following successful testing [8][10] - The defense market is also expanding, with the company leveraging its Korean asset to meet demand from U.S. defense companies [14][21] Company Strategy and Development Direction - The company aims to establish itself as the battery of choice within the AR ecosystem, collaborating with various technology partners to enhance product offerings [12][10] - A focus on vertical integration in battery manufacturing is emphasized, with recent acquisitions aiding in cost reduction and performance improvements [22][24] - The company is preparing for a significant ramp-up in production capacity, with plans to build out additional manufacturing lines [38][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet customer specifications and the growing demand for high-energy-density batteries, particularly in smartphones and AR devices [66][72] - The management highlighted the importance of energy density in the context of increasing battery requirements across various consumer electronics [24][66] - Future growth is anticipated as the company continues to secure orders and expand its market presence [93][66] Other Important Information - The company issued a warrant dividend to reward shareholders and fund future growth initiatives [2][21] - The factory in Malaysia is operational, with significant progress in customer qualification efforts and production capabilities [14][21] Q&A Session Summary Question: When will Enovix batteries appear in products? - The company is currently sampling the A1 battery to multiple customers, particularly in the smartphone sector, with expectations for product launches following successful testing [34][35] Question: Can you explain the need for the warrants and their intended use? - Proceeds from the warrants will be used to complete the build-out of Fab 2, which is designed to support four full production lines [36][38] Question: Can you discuss customer engagement and product specifications? - The company is finalizing specifications with its first customer and has begun sampling to a second smartphone OEM, with expectations for production next year [41][43] Question: How prepared are capital equipment suppliers for expansion? - The company is working with suppliers experienced in complex semiconductor equipment, ensuring readiness for manufacturing ramp-up [51][52] Question: How important is the airline safety certification? - The certification is crucial for shipping batteries by air and provides confidence in the safety of the new battery design [96][97]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $5.1 million, exceeding the midpoint of guidance [8][19] - Adjusted EBITDA loss was $22.2 million, near the high end of the guidance range [19] - Non-GAAP net loss per share was $0.15, at the high end of the guidance range [19] - The company ended the quarter with approximately $248 million in cash and equivalents [19] Business Line Data and Key Metrics Changes - The company commenced development of a custom smartphone cell for a lead customer, indicating progress in the smartphone segment [8][12] - Significant strides were made in operations, including ISO 9001 certification and yield improvements at Fab Two in Malaysia [9][13] - The company delivered its first smart eyewear customer samples in Q1 [14] Market Data and Key Metrics Changes - The company noted no material impact from recent global trade developments, with planned near-term sales concentrated in Asia [10] - Increased interest from U.S. customers seeking to diversify supply chains towards Malaysia and South Korea was observed [30] Company Strategy and Development Direction - The company is focusing on the smartphone market as a strategic priority, leveraging its technology to meet high energy density demands [14][56] - The acquisition of manufacturing assets in South Korea is aimed at expanding capacity and supporting defense and industrial applications [9][11] - The company is actively engaged with multiple smartphone OEMs to ensure rapid ramp-up once products are established in the market [12][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer engagement and technological advantages [18][19] - The company anticipates that successful qualification of samples will lead to meaningful orders in the defense sector [105] - Management highlighted the importance of meeting stringent requirements in the smartphone market to facilitate entry into adjacent markets [58][60] Other Important Information - The company will no longer provide guidance for GAAP EPS due to estimation difficulties but will continue with non-GAAP EPS guidance [20] - A new financial supplement document compiling historical financial information has been published for transparency [21] Q&A Session Summary Question: Updates on EX3M energy density and sampling timelines - The company expects to sample EX3M by the end of the year, with defined chemistry and anodes locked in [22][24] Question: Status of the first major OEM cell phone development agreement - The company is on track to deliver cells to the first customer in June, with ongoing collaboration and feedback [25][26] Question: Customer conversations post-tariff implementation - No concerns from Chinese customers were reported, and increased interest from U.S. customers was noted [29][30] Question: Importance of the coating line from the SolarEdge acquisition - The acquisition enhances coating capacity and supports the ramp-up of new materials for battery production [40][41] Question: Financial metrics around the South Korea acquisition - The acquisition was an asset purchase for $10 million, significantly expanding manufacturing capacity [52] Question: Revenue profile expectations for 2026 - The company aims to target multiple markets, including smartphones and defense, while being cautious about market entry [60] Question: Milestones for Fab Two and customer samples - Key milestones include delivering samples in June and passing customer qualifications by August [110][112] Question: Competitive positioning in energy density and cycle life - The company is competitive in the 800 watt-hour per liter range, with ongoing improvements in cycle life and energy density [95][101]