Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, compared to $4.6 million for the same period in fiscal 2025, and $6.3 million in the previous quarter [18] - Gross margin was 54.8% in the second quarter of fiscal 2026, up from 38.6% in the year-ago quarter but down from 58.1% in the preceding quarter [18] - The operating loss for the second quarter of fiscal 2026 was $3.2 million, an improvement from a loss of $5.6 million in the prior year period and a loss of $2.2 million in the previous quarter [19] - The net loss for the second quarter of fiscal 2026 was $3.2 million or $0.11 per diluted share, compared to a net loss of $2.2 million or $0.08 per diluted share for the same period in fiscal 2025 [20] Business Line Data and Key Metrics Changes - Sales to KYEC were $802,000 or 12.5% of revenues, compared to $650,000 or 14.3% in the same period a year ago [16] - Sales to Nokia were $200,000 or 3.1% of revenues, down from $812,000 or 17.8% in the same period a year ago [16] - Military defense sales accounted for 28.9% of second quarter shipments, down from 40.2% in the comparable period a year ago [16] - SigmaQuad sales represented 50.1% of second quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [16] Market Data and Key Metrics Changes - The company is focusing on the military defense sector and edge applications, with significant interest in low power solutions for drones and military vehicles [10][12] - The Gemini II project has been approved for prototyping by an offshore defense contractor, indicating strong market validation [10] Company Strategy and Development Direction - The company aims to convert proof of concept projects into commercial customers and extend those relationships into large production programs [7] - The focus is on hardware and software development for Gemini II and the acquisition of necessary IP for the PLATO chip [6][12] - The company is prioritizing edge applications over data center solutions due to resource limitations and positive market feedback [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini II, particularly in defense applications, and highlighted the importance of low power consumption [45] - The company is actively engaging with strategic partners for the PLATO chip, which is expected to tape out in early calendar 2027 [13] - Management noted that the recent Cornell University validation of their technology has generated increased interest from potential customers [86] Other Important Information - The company closed a $50 million equity financing to accelerate execution across hardware and software development [5] - The company had $25.3 million in cash and cash equivalents as of September 30, 2025, compared to $13.4 million at the end of the previous quarter [20] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged with the auto industry but sees potential for future adaptation of their technology in that space [23] Question: Was the recent $50 million placement with a strategic investor? - The placement was not with a strategic investor and there is no required holding period for the shares [26] Question: Is there a plan to have Cornell validate the Gemini II technology? - Discussions are ongoing to get a Gemini II board to Cornell and other researchers for validation [30] Question: How is the company differentiating its APU versus GPU competitors? - The company emphasizes its low power consumption and competitive performance metrics compared to NVIDIA GPUs [45] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be in the tens of billions, with the company well-positioned to address it due to its power profile and algorithm work [53] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and will be distributed evenly between Gemini II and PLATO development [59]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 14% year over year and 9% sequentially to $5,900,000 driven by strong demand for SRAM chips [4] - Annual revenue for fiscal year 2025 declined by 6% compared to the prior year, with net loss reduced by 47% from $20,100,000 in 2024 to $10,600,000 [5][24] - Gross margin for Q4 2025 was 56.1%, up from 51.6% in Q4 2024, primarily due to higher revenue and product mix [19] - Total operating expenses in Q4 2025 were $5,600,000, down from $7,200,000 in Q4 2024 [20] Business Line Data and Key Metrics Changes - The primary revenue driver in Q4 2025 was the strong demand for high-density SRAM, particularly from a leading GPU provider [10] - Sales to KYEC were $1,700,000 or 29.5% of net revenues in Q4 2025, compared to $544,000 or 10.6% in the same period a year ago [17] - Military defense sales accounted for 30.7% of Q4 shipments, down from 35.5% in the comparable period a year ago [18] Market Data and Key Metrics Changes - The company anticipates continued demand for its products in fiscal year 2026, particularly from the North American prime contractor for radiation-hardened SRAM [11] - The market for the PLATO chip is focused on large language models (LLM) and generative AI at the edge, while the Gemini II chip targets high-performance computing applications at the edge [30] Company Strategy and Development Direction - The company plans to build on the progress of APU development and continue growth in sales while maintaining operational efficiency [8] - There is a focus on securing funding to support the next phase of development, particularly for the AI strategy [9] - The integration of a camera interface into the PLATO chip enhances its marketability for AI applications requiring object recognition [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for radiation-hardened SRAM and the potential for follow-on orders in fiscal year 2026 [11] - The company is exploring strategic alternatives to secure funding and is committed to maintaining operational efficiency [8][9] Other Important Information - The company reported cash and cash equivalents of $13,400,000 as of March 31, 2025, down from $14,400,000 a year earlier [24] - The company achieved a gain on the sale of assets of $5,800,000 from the sale of its headquarters building in a sale and leaseback transaction [22] Q&A Session Summary Question: Can you talk about the market for the PLATO chip and the GEMINI two chip? - The company has not released total addressable market (TAM) numbers yet, but Gemini II is positioned for edge applications, while PLATO targets the LLM market at the edge [28][30] Question: Is the company experiencing interest in the Gemini two chip from commercial companies? - Most early interest has come from military defense applications, but there is also interest in chip-level procurement for drones and satellites [36][38] Question: Can you share more detail on what Needham is bringing to the table? - The specifics are not available at this time, but options could include asset sales or funding opportunities [40][42] Question: What was cash flow from operations in the quarter and what was CapEx? - Cash used in operating activities for the year was about $12,900,000, with minimal CapEx of approximately $45,000 [49][50]