Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $625,000, representing a 36% increase year-over-year and a 29% sequential increase [19] - EVOLVE sales increased by 94% year-over-year and accounted for 83% of total revenue, while ContraPest sales decreased by approximately 45% [19] - Gross profit margins improved to 65.4%, up from 54.2% in the same quarter last year and 64.5% sequentially [22] Business Line Data and Key Metrics Changes - EVOLVE now constitutes 83% of total quarterly revenue, with gross profit dollars up 64% compared to last year's Q2 [6][22] - E-commerce sales grew by 78% year-over-year and accounted for over 50% of quarterly sales, with Amazon leading the channel [8][20] - Municipal sales saw a 538% increase year-over-year, driven by deployments in cities like Chicago and New York [21] Market Data and Key Metrics Changes - E-commerce sales were up 78% compared to last year and up 18% sequentially, with significant growth in brick-and-mortar retail sales, which increased nearly 500% sequentially [8][21] - International sales included a follow-on order from the Caribbean, with ongoing regulatory approvals in Australia and New Zealand [12][21] Company Strategy and Development Direction - The company is focused on expanding its market presence through the EVOLVE product line, which has opened new verticals and distribution channels [5][16] - Plans are in place to accelerate e-commerce growth and expand into agricultural applications, where significant opportunities exist [32][14] - The company aims to achieve cash flow breakeven at approximately $1,500,000 in quarterly revenue, with expectations for growth in 2026 [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth from city and government trials, anticipating increased orders as results from trials prove successful [33] - The company is optimistic about its position in the market, citing a large addressable global market and regulatory tailwinds [28] - Management highlighted the importance of focusing on the EVOLVE product line to maximize market penetration and operational efficiency [49] Other Important Information - The company ended the quarter with $6,100,000 in cash, following successful financing activities [26] - The new manufacturing facility has the capacity to produce approximately $10,000,000 in revenue, with plans for further expansion [34] Q&A Session Summary Question: Should we expect incremental improvements to gross margins in the coming quarters? - Yes, management expects margins to remain consistent and possibly improve [30] Question: Is there room to accelerate e-commerce growth with additional digital marketing spend? - Yes, plans are in place to accelerate growth across all channels [31] Question: Should we expect higher volumes from cities where the product has been launched? - Yes, as trials prove successful, increased orders and revenues are anticipated [33] Question: What is the potential capacity in terms of dollars of the expanded manufacturing facility? - The facility can produce roughly $10,000,000 in revenue with current operations [34] Question: Are you planning to do more capital raises in the future? - No further financings are anticipated in the near future, as the company has sufficient cash to reach cash flow profitability [36] Question: Would a full-scale New York City expansion require a big capital investment? - No significant capital investment is required immediately, but future expansions may need some capital [38] Question: Do you need to hire additional people to meet growth expectations? - Yes, the company is hiring salespeople and expanding its field team to support growth [40] Question: Are there any active trials that have not been announced? - Yes, there are ongoing trials that have not yet been disclosed [42] Question: How long before you are in store with Tractor Supply? - The company hopes to have news on this in the coming months [46] Question: Can you specify how OpEx will be cut? - Cuts have already been made, and there are no specific plans for further reductions at this time [47]