Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024, with a gross margin gain of $100,000 in the previous year [26] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [27] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [27] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [28] Business Line Data and Key Metrics Changes - The company has made significant progress in UL certification for the KARNO Power Module, nearing completion of testing for the full module after successfully completing tests for the linear electric motor and battery pack [6][8] - The company achieved over 175 kW of power production in testing, with expectations to reach the full 200 kW design power rating by year-end [9][10] Market Data and Key Metrics Changes - The company has nearly 500 units under non-binding letters of intent, indicating strong demand across commercial, data center, and military markets [12] - The data center market is seeing particularly strong long-term interest, with a shift towards 800V DC architectures for next-generation AI facilities [13][14] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization, with plans to deploy approximately 10 early adopter units prior to commercialization [12][13] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions, enhancing customer access across various applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which will enable broader customer site deployments [21] - The company anticipates generating approximately $10 million in revenue during 2026 from a combination of commercial customer activity and R&D service contracts [32] Other Important Information - The company operates more than 30 additive manufacturing machines and plans to optimize printer throughput to meet production needs for 2026 and 2027 [19][20] - The company has made progress in mitigating supply chain risks related to magnet supply, improving confidence in supporting planned production [20] Q&A Session Summary Question: About commercialization and end markets for units - Management highlighted military applications as a major focus, with additional opportunities in prime power and data centers [37] Question: Manufacturing capacity and costs - Management indicated that improvements in printer speed and throughput are the current focus, with confidence in production capacity for 2026 and 2027 [39][40] Question: Potential military revenue opportunities - Management clarified that the $40 million-$50 million potential is focused on additional applications and unique development for the military [45] Question: Comparison of KARNO technology with competitors - Management provided insights on cost comparisons with internal combustion engines and fuel cells, emphasizing the efficiency and lower maintenance of the KARNO system [48][49] Question: ABM partnership details - Management described ABM's expertise in power generation and their role in site engineering and Energy-as-a-Service solutions [52][53]

Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024 [27] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [28] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [28] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [29] Business Line Data and Key Metrics Changes - The company achieved over 150 kilowatts of power generation, later demonstrating 175 kilowatts, with expectations to reach 200 kilowatts by year-end 2026 [9][10] - Five KARNO units are currently at the facility, including two development units and three early adopter customer units [9] Market Data and Key Metrics Changes - The company has nearly 500 units under non-binding letters of intent, indicating strong demand across commercial, data center, and military markets [12] - The data center market shows particularly strong long-term interest, especially with the shift towards 800V DC architectures for next-generation AI facilities [13] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization in 2026 [12][25] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions, enhancing customer access across various applications [18][19] - The company plans to demonstrate its 800V DC capability in live environments in 2026, aligning with industry trends [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which is crucial for customer deployments [21] - The company anticipates generating approximately $10 million in revenue in 2026 from a mix of R&D services and commercial customers [31] - Management highlighted the importance of execution in 2026 as the company transitions to scaled operations and seeks opportunities in data center infrastructure and military applications [34] Other Important Information - The company has made progress in mitigating supply chain risks related to magnet supply, improving confidence in supporting planned production [20] - The company plans to slow capital spending in 2026 while optimizing the output of existing printers [31] Q&A Session Summary Question: About commercialization and end markets for units - Management indicated that military applications are a major focus, with other applications including prime power and data centers [38] Question: Manufacturing capacity and costs - Management did not provide specific capacity numbers but emphasized improving printer speed and throughput as a priority for 2026 [40][41] Question: Potential military revenue - The $40 million-$50 million potential from military contracts is focused on additional applications and unique developments, not just standard purchase orders [46] Question: Comparison of KARNO module with competitors - The company highlighted its competitive positioning in terms of cost and efficiency compared to internal combustion engines and fuel cells [50] Question: ABM partnership details - ABM has extensive experience in power generation and offers Energy-as-a-Service solutions, enhancing deployment capabilities for the company [56]

Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024 [26] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [27] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [27] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [28] Business Line Data and Key Metrics Changes - The company achieved over 175 kilowatts of power production in testing, up from 150 kilowatts previously, and expects to reach the full 200 kilowatt design power rating by year-end 2026 [9][20] - The company has five KARNO units at its facility, including two development units and three early adopter customer units [8] Market Data and Key Metrics Changes - The company is seeing strong demand across commercial, data center, and military markets, with nearly 500 units under non-binding letters of intent [12] - The data center market is particularly promising, with a shift towards 800V DC architectures for next-generation AI facilities [13] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization in 2026 [12][24] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions [17] - The company plans to demonstrate its 800V DC capability in live environments in 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which is crucial for customer deployments [20] - The company anticipates generating approximately $10 million in revenue in 2026 from a mix of R&D services and commercial customers [30] - Management highlighted the importance of military applications and the potential for $40 million-$50 million in new revenue opportunities from military contracts [15][46] Other Important Information - The company is working to optimize its additive manufacturing capabilities and plans to slow capital spending in 2026 [30][31] - The company has made progress in mitigating supply chain risks related to magnet supply [19] Q&A Session Summary Question: What are the end markets for the units going to the U.S. Navy? - Management indicated a focus on military applications, including unmanned autonomous ships, prime power for facilities, and data centers [37] Question: What is the manufacturing capacity expected as the year ends? - Management did not provide specific numbers but emphasized improving printer throughput as a priority for 2026 [40] Question: Can you elaborate on the $40 million-$50 million potential from military contracts? - Management clarified that this potential is focused on additional applications and unique development for the military, not just standard purchase orders [46] Question: How does the new 800 kilowatt module compare to existing solutions? - Management noted that the KARNO system is positioned between traditional internal combustion engines and fuel cells in terms of cost and efficiency [48] Question: What is the status of the control systems development? - Management confirmed that all software is developed in-house, which is seen as a key part of their solution [90]