Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2025, was $5.6 million, down from $7.7 million in 2024, primarily due to the timing of customer equipment purchases [13] - Gross margin improved to approximately 55%, up from 46% in 2024, reflecting lower cost of sales and a reduction in inventory reserves [13] - Total operating expenses decreased by approximately 10% to $6.9 million from 2024 [14] - The net loss was $3.7 million or $0.19 per share, an improvement from a net loss of $4.5 million or $0.22 per share in 2024 [14] Business Line Data and Key Metrics Changes - The backlog of orders for support services increased by 16%, and BIT Solution orders rose by 24% in Q1 2026 compared to the same period last year, indicating a growing recurring revenue trajectory [9][16] - The SteraMist Integrated System achieved its first commercial installation at a leading CDMO in June 2025, with four fully operational SIS enclosure installations by year-end [4][5] Market Data and Key Metrics Changes - The global ethylene oxide market was valued at $5.29 billion last year, with rising demand for sterilized medical consumables and improved healthcare infrastructure driving growth [10] - The company is actively pursuing opportunities in the food safety sector, with significant partners like Danone and Nestlé, following the FDA's approval of hydrogen peroxide as a direct food additive [7][8] Company Strategy and Development Direction - The company is focusing on execution and converting its pipeline into recognized revenue while advancing its technology platform [10] - A shift towards a recurring revenue model is emphasized, moving from episodic revenue to embedded revenue, which is expected to enhance customer dependency and long-term growth [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging year in 2025 due to factors like tariffs and political uncertainty but expressed optimism about future revenue growth, projecting around $12 million for 2026 [25][29] - The company is seeing signs of improvement as customers who deferred capital expenditures are beginning to move forward with projects [56] Other Important Information - The company received approvals from the HSE and BPR submissions, enhancing its market presence in the UK and the Netherlands [9] - The company is preparing to introduce its IHP device to the U.S. market through the FDA 510(k) pre-market notification process [10] Q&A Session Summary Question: Insight into global opportunities mentioned in the quarter - Management expects many EU states to follow suit with registrations, leveraging existing relationships and distributors [40] Question: Thoughts on operating expenses going forward - Operating expenses are expected to grow as a percentage of revenue but not significantly, indicating leverage in cost management [42] Question: Signs of improvement in customer capital expenditure projects - Management confirmed that customers are beginning to move forward with deferred projects [56] Question: Details on BIT Solution revenues for 2025 versus 2024 - There was an increase in BIT Solution usage, with customers moving towards auto shipment and advanced orders [58][60] Question: Potential applications for SteraMist in military settings - Management acknowledged the potential and expressed interest in exploring opportunities with military applications [71][75]

Group 1 - Zhangjiagang City government has signed an agreement with Huazhong University of Science and Technology to establish the Suzhou Institute of Science and Technology, focusing on applied technology research and talent cultivation in fields such as electrical engineering, optoelectronics, and artificial intelligence [1] - The city has set up a 5 billion yuan innovation fund to support the operation of the science and technology institute, reflecting its strong desire for innovation [1] - The establishment of the institute addresses the lack of high-level innovation platforms in Zhangjiagang and injects new vitality into its innovation ecosystem [1] Group 2 - Zhangjiagang pioneered the "enterprise innovation points system" in 2015, quantifying innovation behaviors of enterprises, which has benefited nearly 8,000 companies with 900 million yuan in funding over the past decade [2] - The city has established an innovation committee and introduced a "county-level innovation grading system" to enhance innovation across various sectors, moving from "localized innovation" to "holistic innovation" [2] - Zhangjiagang has implemented a "2+1" model pairing two enterprises with one academician team, establishing partnerships with 129 academicians [2] Group 3 - By the end of the 14th Five-Year Plan, Zhangjiagang will have 13 innovation platforms, 14 independent R&D institutions, and 353 provincial enterprise graduate workstations, along with 1,279 "science and technology small" enterprises and 1,300 high-tech enterprises [3] - The city has 224 "gazelle" enterprises, 22 unicorn-related companies, and 6 listed companies on the Science and Technology Innovation Board, with a continuous increase in national-level talent [3] Group 4 - Zhangjiagang aims to strengthen its innovation ecosystem by attracting high-quality technology projects and has identified technology investment as a top priority, focusing on strategic emerging industries [5] - The city plans to implement the "Science and Technology Rainforest" initiative, aiming for over 80% of new technology projects to come from emerging and future industries by 2028 [5] Group 5 - The city is enhancing its business environment to support innovation, with local government providing resources and professional services to help companies transition from research to market [6] - Zhangjiagang has set a target to achieve a breakthrough of 10,000 technology enterprises and 2,000 high-value invention patents within three years, supported by the development of a robust "Science and Technology Rainforest" ecosystem [6]

Group 1 - The core viewpoint emphasizes the potential for China and the U.S. to transition from "consumptive competition" to "cooperative growth," focusing on creating new opportunities rather than merely adjusting existing trade measures [1][2] - The bilateral trade between China and the U.S. accounts for approximately one-fifth of global trade, indicating the need for both countries to innovate and expand cooperation to ensure sustainable economic relations [1][2] - China is advancing high-level opening-up policies and aligning with international trade standards, which provides broader opportunities for U.S. businesses, while the U.S. should also create a fair business environment for Chinese enterprises [2][3] Group 2 - The shift from a zero-sum game to a collaborative approach in international relations is crucial, as it emphasizes problem-solving and shared responsibilities rather than power struggles [3][4] - The global economy is at a critical juncture, and focusing on collaborative efforts in high-risk, high-reward fields like AI and climate change is essential for sustainable growth [4] - The resilience and inherent dynamics of China-U.S. relations suggest that a broader perspective and mature handling of conflicts can lead to mutual growth and tangible benefits for both nations and the global economy [4]