Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $15.3 million, up from $8 million in Q2 2024, primarily due to variability in Pharma Biocatalysis customers' manufacturing schedules and clinical trial progression [14][15] - Product gross margin increased to 72% in Q2 2025 from 45% in Q2 2024, attributed to shifts in sales to more profitable products [15][17] - The net loss for Q2 2025 was $13.3 million, compared to $22.8 million in Q2 2024, indicating improved financial performance [17] Business Line Data and Key Metrics Changes - The Pharma Biocatalysis business saw increased orders for enzymes supporting late-phase and commercialized APIs, contributing to strong Q2 revenue [6][14] - The Ecosynthesis platform is experiencing strong customer engagement, with over 30 ongoing customer engagements, indicating growing demand [5][21] Market Data and Key Metrics Changes - The demand for the Ecosynthesis platform is expected to exceed supply, prompting the company to explore options to expand capacity [5][12] - The ligation process is becoming the new standard in siRNA manufacturing, with the company focusing on acquiring new ligase customers [9][10] Company Strategy and Development Direction - The company aims to achieve cash flow breakeven by 2026 while exploring ways to maximize stockholder value through the Ecosynthesis platform [4][5] - A strategy is in place to secure early-phase products on the ECO platform, which could lead to significant returns as these products mature into commercial drugs [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards profitability and highlighted the importance of managing expenses while capitalizing on the strong cash position [17] - The company anticipates continued revenue lumpiness in the near term due to the unpredictability of the heritage business, but expects growth from the Ecosynthesis platform in the coming years [15][30] Other Important Information - The company ended the quarter with $66.3 million in cash and equivalents, sufficient to fund operations through 2027 [18] - Management is focused on establishing a GMP facility to improve the scale-up process and service small to medium-sized drug innovators [12][34] Q&A Session Summary Question: Can you provide an update on the pipeline and customer discussions? - The company has over 30 discussions ongoing, potentially growing into the 40s, with a mix of CDMOs and biopharma companies [21][22] Question: What is the status of process development projects in the Eco Innovation Lab? - The company is excited about recruiting early-phase projects and is considering setting up a second Eco Lab to increase capacity [27][28] Question: How does the company plan to expand bandwidth for the ECO platform? - The focus is on filling existing capacity and exploring partnerships while ensuring a credible path to GMP material [33][35] Question: What is the company's IP position around Ecosynthesis? - The company has a strong IP portfolio and emphasizes the importance of trade secrets and know-how in maintaining a competitive edge [37][38] Question: How should investors think about revenue collection pace? - The company aims to lock in a large number of early-stage projects, which could lead to significant future revenues as these assets mature [42][46] Question: What are the options for funding scaling to GMP? - The company is not considering selling its biocatalysis business, as it is profitable and reduces cash needs, while also planning incremental scaling [68][69]

Financial Data and Key Metrics Changes - The company achieved a revenue of EUR 110 million for the full year 2024, an increase of approximately 2.5% compared to EUR 107.4 million in 2023 [18] - Positive gross profit and positive adjusted EBITDA were reported for the first time, with a gross margin of EUR 90.4 million (70.7%) compared to a loss of EUR 9.2 million (-2.7%) in 2023 [20] - Adjusted EBITDA improved from a loss of EUR 38.1 million to a positive EUR 2.2 million [21] - Operating cash flow significantly improved from a loss of EUR 20.7 million to a positive EUR 16.3 million [21] Business Line Data and Key Metrics Changes - Service revenues nearly tripled from EUR 2 million in 2023 to EUR 5.6 million in 2024, driven by a growing base of installed fast charging solutions [19] - The customer base increased by over 200%, reaching 55 customers across Europe, the USA, and Canada [19][25] Market Data and Key Metrics Changes - The company noted improved momentum in North America, winning new customers and expanding its market presence [12] - The market for electric vehicles (EVs) is showing signs of recovery after a downturn, indicating potential growth opportunities [28] Company Strategy and Development Direction - The company aims to strengthen partnerships with existing and new customers, focusing on a resilient business model with multiple revenue streams [6][25] - Plans to develop large-scale battery storage projects are underway, with a significant project of over 500 megawatts in Europe expected to start in 2025 [16][41] - The company is transitioning to a full-service provider model, managing complete infrastructure projects for clients [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of flexibility in operations and the ability to adapt to local market regulations [30] - The overall market for charging and energy trading is expected to grow, with flexibility becoming increasingly valuable [62][63] Other Important Information - The company secured a convertible note of EUR 50 million to support its growth strategy and operational investments [24] - Several awards were received in 2024, including the German Innovation Award and the Green Product Award, highlighting the company's recognized technology [22] Q&A Session Summary Question: What are some challenges and opportunities for companies like ADS-TEC? - Management highlighted ongoing transformation in the market and the return of EV demand as opportunities, while also noting regulatory challenges and market volatility [28][30] Question: How do you see competition with large corporations in the same business? - The company positions itself as a strong partner rather than a utility, focusing on enabling others to participate in the market [34][36] Question: Can you provide financial details on the large-scale battery project? - The project is under development, with site access secured, and further steps will involve applying for grid access [39][41] Question: How will the EUR 50 million financing impact new shares? - The financing will be through a convertible note, with details on share conversion to be determined in the coming months [45] Question: Will the change in strategy impact short-term financials? - Management clarified that the strategy is an expansion rather than a change, maintaining focus on the existing business model while exploring new opportunities [47][51] Question: How many operational chargers are planned for development in 2025? - The company anticipates acquiring between 100 to 500 operational sites, with installation progressing as quickly as possible [56]