Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled approximately $384,000, a significant increase from $101,000 in the same period last year, primarily due to growth in research and development services contracts and custom hardware contracts [13] - Gross margin improved to 33% compared to 9% in Q3 2024, although variability is expected due to a small number of active contracts [14] - Net income for Q3 2025 was $2.4 million, or approximately $0.01 per share, compared to a net loss of $5.7 million in Q3 2024 [16] - Total assets increased to $898 million as of September 30, 2025, up from $154 million at year-end 2024 [17] Business Line Data and Key Metrics Changes - The company recorded revenue from the NASA LIDAR initiative and completed a transaction with a major U.S. financial institution, validating its quantum AI and security platforms [7] - Revenue recognition began for cloud-based access to the Direct3 quantum optimization system during Q3 [14] Market Data and Key Metrics Changes - The company is seeing growing adoption of quantum and photonic solutions across research, enterprise, and government sectors, indicating a positive trend in market demand [7] - The integrated photonics platform is positioned to address global energy constraints and computational demands, making it relevant for various sectors [11] Company Strategy and Development Direction - The company aims to transition from prototype and small-batch manufacturing to volume production by the end of the decade, focusing on refining processes and expanding facilities [5][12] - The long-term strategy includes evaluating acquisition opportunities to accelerate the vision of making quantum technology accessible [15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of scaling engineering and manufacturing capabilities and strengthening relationships across government, industry, and academia [19] - The company is positioned to deliver energy-efficient room-temperature quantum devices, which are critical for the next generation of computing [11] Other Important Information - The company raised $500 million in Q3 and an additional $750 million post-quarter, significantly strengthening its balance sheet [3][15] - Operating expenses increased to $10.5 million in Q3 2025, reflecting growth in personnel across various departments [16] Q&A Session Summary Question: Details on Poet Technologies partnership - Management discussed active talks with multiple parties on using thin-film lithium niobate technology for high-speed transceiver technology, highlighting the collaboration with Poet Technologies [22] Question: Use cases for quantum security solutions - Management mentioned discussions with firms to apply quantum communication technology to aerospace platforms and the potential for smaller quantum communication systems [23][24] Question: M&A opportunities and market conditions - Management acknowledged the volatile M&A market and is actively evaluating acquisition candidates to enhance customer revenue and technology roadmap [26][27] Question: CapEx for Fab 1 and plans for Fab 2 - Fab 1 is fully operational with an additional CapEx of about $2 million planned for high-speed testing equipment, while Fab 2 is being scoped for both internal needs and external demand [35][36] Question: International opportunities - Management confirmed active discussions for international partnerships and sales, including projects in Europe and South Korea [57]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled approximately $384,000, compared to $101,000 in the same period last year, primarily due to increases in research and development services contracts and custom hardware contracts [12][14] - Gross margin for Q3 increased to 33% compared to 9% in Q3 2024, although variability is expected due to a small number of active contracts [14] - Net income for Q3 was $2.4 million, or approximately $0.01 per share, compared to a net loss of $5.7 million in Q3 2024 [16] - Total assets stood at $898 million at the end of Q3 2025, up from $154 million at year-end 2024 [17] Business Line Data and Key Metrics Changes - The company recorded revenue from the NASA LIDAR initiative and completed a transaction with a major U.S. financial institution, validating its quantum AI and security platforms [6][7] - The foundry operations in Tempe, Arizona, continue to progress, with plans for Fab 2 to support higher volume manufacturing [8][12] Market Data and Key Metrics Changes - The company is seeing growing adoption of quantum and photonic solutions across research, enterprise, and government sectors, with increasing interest from prospective customers [10][11] - International opportunities are being explored, with sales to institutions in Europe and discussions with potential partners in South Korea and Singapore [37] Company Strategy and Development Direction - The long-term goal is to transition from prototype and small-batch manufacturing to volume production by the end of the decade, focusing on refining processes and expanding facilities [5][12] - The company aims to position itself uniquely in the market by leveraging its integrated photonics platform, which operates at room temperature and offers significant SWaP-C advantages [11] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of scaling engineering and manufacturing capabilities, advancing customer programs, and strengthening relationships across various sectors [18] - The company is actively evaluating acquisition opportunities to accelerate its vision of making quantum technology accessible [15][16] Other Important Information - The company raised $500 million in Q3 and an additional $750 million post-quarter, significantly strengthening its balance sheet [3][15] - Operating expenses for Q3 totaled $10.5 million, up from $5.4 million in the same quarter last year, driven by growth in personnel across various functions [16] Q&A Session Summary Question: Details on Poet Technologies partnership - The company is actively discussing using thin-film lithium niobate technology for next-generation high-speed transceiver technology, with Poet Technologies being one of the collaborations [20][21] Question: Use cases for quantum security solutions - Discussions are ongoing with firms to apply quantum communication technology to various sectors, including aerospace and telecommunications [22] Question: Remaining CapEx for Fab 1 - Fab 1 is fully operational, with an additional CapEx of about $2 million planned for high-speed testing equipment [25][26] Question: Plans for Fab 2 - Fab 2 is being scoped to support both the company's quantum machine manufacturing and to serve external demand for thin-film lithium niobate chips [26] Question: Share count at the end of 2026 - The company currently has 224 million shares outstanding and does not expect to conduct another financing, with a potential increase of a few million shares from options [27][28] Question: International opportunities - The company is exploring international markets and has made sales to institutions in Europe and discussions in South Korea [37]