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]