Core Viewpoint - Titan Mining Corporation has secured a credit agreement with the Export-Import Bank of the United States for up to US$15.8 million to support capital development at its Empire State Mines, highlighting the importance of domestic critical mineral production [1][2]. Financial Agreements - The EXIM Facility provides funding for critical capital development, supporting current operations and planned expansion at the underground zinc mine in New York [1]. - Titan has also entered into a credit agreement with Augusta Investments Inc. for US$16.5 million, which includes advances made in 2024 [5]. - The EXIM Facility has a competitive interest rate of approximately 4.91% per annum, with an effective interest rate of about 7% after accounting for fees [6]. Job Creation and Economic Impact - The EXIM Facility is expected to retain 135 jobs and create 10 new positions in compliance with domestic employment requirements [6]. - The financing is aimed at enhancing long-term production capacity and supporting operational growth, contributing to job creation in upstate New York [4]. Strategic Importance - This transaction marks EXIM's first direct mining investment under its Make More in America Initiative, emphasizing the strategic importance of domestic critical mineral production [2]. - Titan's partnership with EXIM is seen as a step towards advancing U.S. supply chain security and critical minerals independence [4]. Debt Restructuring - The Augusta Facility will bear an interest rate of 8% per annum, with repayments beginning in 2026 over three years [6][8]. - The agreement with Augusta is considered a related party transaction, approved by the Company's board, ensuring compliance with relevant regulations [9]. Company Overview - Titan Mining Corporation operates the Empire State Mine in New York and is also targeting to become the USA's first end-to-end producer of natural flake graphite in 70 years [10]. - The company is committed to developing critical minerals assets to enhance the security of the domestic supply chain [10].

Production & Expansion - Panasonic aims for full production at its DeSoto, Kansas facility this year, with sales already underway [2] - The company invested $4 billion in the DeSoto facility and is eligible for nearly $7 billion in incentives from the Inflation Reduction Act [15] - Panasonic plans to localize 50% of its supply chain within North America by 2030 to enhance resilience [19] Customer & Market Strategy - Panasonic is diversifying its customer base beyond Tesla to include other established OEMs and startups [8][9] - The company is "very bullish" and not currently experiencing a slowdown in orders from key customers [6] - Panasonic acknowledges the hybrid market's continued relevance alongside EV growth, with EV sales rising by 114% [23] Location & Partnership - Kansas was chosen for its available workforce, infrastructure, and the supportive attitude of state officials [11][12] - Panasonic collaborated with local schools and community colleges to create curriculums to ensure a skilled workforce [14] Supply Chain - Panasonic is actively working to diversify its supply chain to ensure resilience, addressing issues highlighted during COVID-19 [18][20] - The refining process for raw materials is a key focus to ensure the quality needed for battery production [21] Future Outlook - Panasonic's next priority after the DeSoto facility reaches smooth operation is yet to be determined (TBD), focusing on producing quality batteries [22] - The company is hopeful that the 45X manufacturing credit will remain intact, supporting job creation and technology advancement in the US [17]

Financial Data and Key Metrics Changes - The company reported net sales of $47.2 million for the second quarter of fiscal 2025, representing a 28% increase compared to $36.9 million in the same period last year, and exceeding the guidance range of $37 million to $40 million [5][12] - Net income per share was $0.09, which was above the guidance range and showed significant improvement from the previous year [6][12] - The Clearfield segment net sales increased by 47% year over year to $40.6 million, while the NESTER segment net sales decreased by 30% year over year to $6.6 million [12] Business Line Data and Key Metrics Changes - The Clearfield segment experienced strong customer demand across all end markets, leading to faster conversion of quoting activity into revenue [12] - The NESTER segment is focusing on improving its cost structure and prioritizing higher gross margin solutions, particularly with the production of Microduct at the new facility in Estonia [12][13] Market Data and Key Metrics Changes - The company anticipates that the BEAD program will contribute materially to revenue in fiscal 2026, despite current administrative delays and regulatory uncertainties [9] - The Enhanced Alternative Connect America Cost Model (eACAM) is expected to contribute meaningfully in the upcoming build season, allowing providers to leverage both BEAD and eACAM funding across different areas of their networks [9] Company Strategy and Development Direction - The company is focused on diversifying its supply chain to maintain stable product availability amid fluctuating trade policies, with a proactive approach to sourcing and manufacturing [7][8] - The company aims to capitalize on current opportunities and is focused on identifying the next catalyst for growth, particularly in the connected home market [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from government funding programs and a return to a more normal ordering pattern in the industry [9][10] - The management highlighted a U-shaped recovery in the market, particularly within the Clearfield segment, with strong demand anticipated for connected home products [25] Other Important Information - The FieldSmart FiberFlex 600 active cabinet received recognition as one of the best in the industry, validating the company's approach to providing flexible and scalable solutions [10] - The company reiterated its fiscal 2025 outlook for net sales in the range of $170 million to $185 million, with expectations for annual revenue growth in the Clearfield segment to align with or exceed industry forecasts [13] Q&A Session Summary Question: Can you comment on the product mix and subscriber adds? - Management noted strong continuation in products for connecting homes and a resurgence in sales of cabinets, with expectations for increased home connections using Clearfield equipment [16] Question: How is traction coming along on new connected home products? - Management expressed excitement about the hybrid home deployment kits, which streamline the installation process and reduce labor requirements [17] Question: How is diversification within the regional customer category? - Management indicated that a large regional customer contributed approximately $3 million in business this quarter, with one large regional customer becoming a 10% customer [18] Question: Can you elaborate on the gross margin and E&O reserve? - Management clarified that there was a reduction in the excess and obsolete inventory reserve compared to the previous year, contributing to improved gross margins [19] Question: What are the cost reduction approaches for the NESTER segment? - Management discussed the focus on expanding the product mix and producing higher gross margin solutions primarily from the Estonia facility [20]