Financial Data and Key Metrics Changes - The company reported a revenue growth of 6.8% in Q1 2025, marking the second consecutive quarter of year-over-year revenue growth [4] - First quarter net sales reached $13.4 million, with OEM net sales increasing by 10.8% to $8.1 million, while DTC segment revenue declined by approximately 3.6% to $5 million [18] - Gross profit increased by 12.5% to $3.9 million, and gross margin improved by 500 basis points to 29.4% [19] - The net loss for the quarter was $6.8 million, with a diluted loss per share of $0.93, compared to a net loss of $10.4 million and a diluted loss per share of $1.55 in the prior year [19] - Adjusted EBITDA improved to a loss of $3.6 million from a loss of $5.2 million in the previous year [19] Business Line Data and Key Metrics Changes - The OEM channel showed strong growth with a 10.8% increase in net sales, driven by broader integration of solutions at the factory level [4] - The DTC segment faced challenges, reflecting macroeconomic pressures that led to a decline in net sales [4][18] Market Data and Key Metrics Changes - The company highlighted its competitive advantage due to growing US-based production capabilities, which are crucial amid the volatile tariff landscape [8] - The strategic position is further strengthened by a lithium supply agreement with Pioneer, enhancing the company's ability to localize critical mineral supply chains [10] Company Strategy and Development Direction - The company is focusing on long-term growth through the OEM channel while optimizing its product development and rollout efforts [5] - A corporate optimization program has been launched to prioritize near-term revenue-generating opportunities and operational improvements [5][6] - The company aims to transition select components to North American-based sourcing and expand its domestic footprint [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing market volatility while delivering high-quality energy storage solutions [19] - The company anticipates net sales of approximately $14.8 million in Q2 2025, representing year-over-year growth of 12% [19] - Management acknowledged the impact of tariffs on operations and emphasized the importance of cash flow and profitability for future growth [28][30] Other Important Information - The company has increased production capacity without additional headcount through enhanced automation and operational efficiencies [6][7] - The dual flow power pack for the heavy-duty trucking market is highlighted as a key product that addresses current market needs [5][14] Q&A Session Summary Question: Updates on dry electrode manufacturing technology commercialization - Management confirmed ongoing development and interest from commercial partners, but emphasized a focus on near-term revenue and profitability [24][25] Question: Thoughts on cash balance and EBITDA guidance - Management indicated confidence in cash balance post-preferred equity deal and emphasized investments in near-term revenue growth [27][28] Question: Follow-up on EBITDA expectations for Q2 - Management explained that continued investments in product development and the impact of tariffs influenced the EBITDA guidance for Q2 [30]