Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or $0.17 per share, compared to a net loss of $4.8 million or $0.19 per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21][22] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] - Cash, cash equivalents, and short-term investments as of March 31, 2025, were $24.1 million, down from $26.8 million on December 31, 2024 [24] Business Line Data and Key Metrics Changes - The partnership with a major capital equipment provider aims to enhance the development and production of advanced material solutions, particularly in gate-all-around technology [4][5] - Significant progress has been made in gate-all-around applications, generating detailed silicon-validated performance enhancement data for customers [9] - New patents focused on DRAM sense amplifiers have been granted, relevant for both high bandwidth and standard DDR memories [9] Market Data and Key Metrics Changes - The epi equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [9] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company is focused on expanding its technology licensing business within the semiconductor industry, particularly in areas related to AI infrastructure and advanced semiconductor applications [20] - The partnership with the capital equipment provider is expected to accelerate the closing of license deals and enhance the company's market position [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology and relationships with large semiconductor companies [26] - The company is actively recruiting for its engineering and sales teams to support the transition to high-volume production and to close deals [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19 [24] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Can you provide details about the partnership with the capital equipment provider? - The partnership involves a long-term relationship with a major equipment provider, focusing on gate-all-around technology and leveraging their capabilities for testing and production [30][34] Question: What is the focus of the work with STMicro? - The work with STMicro is focused on optimizing manufacturability, yield, and throughput in preparation for high-volume manufacturing, with discussions ongoing in multiple product areas [12][40] Question: What is the status of the transformative customers mentioned in previous calls? - Discussions with transformative customers are ongoing, with one customer moving faster than expected and showing significant interest in expanding the scope of work [51][70] Question: What are the implications of the restated employment agreement? - The restated agreement aimed to correct a mistake regarding severance upon change of control, with no significant implications beyond that [66] Question: How are the electrical results from Sandia Lab? - The electrical results show improved device performance, consistent with previous observations of material quality improvements [72]

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or 17¢ per share, compared to a net loss of $4.8 million or 19¢ per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - The increase in operating expenses was attributed to a $397,000 rise in R&D expenses and a $277,000 increase in G&A expenses, partially offset by a $226,000 decline in sales and marketing expenses [22] - The company is actively working on multiple technology areas, including gate all around applications and memory technologies, with significant progress reported in customer engagements [10][14] Market Data and Key Metrics Changes - The EPI equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [10] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company has announced a partnership with a major capital equipment provider to enhance its technology offerings and accelerate customer engagements [4][9] - The focus on advanced node customers and the collaboration with the equipment provider aims to optimize production processes and improve customer solutions [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology licensing within the semiconductor industry [20] - The company is actively recruiting to expand its engineering and sales teams to support growth and high-volume production [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19, maintaining a comfortable cash position [23] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Details on the partnership with the capital equipment company - The partnership involves extensive collaboration on technology development and production, with the partner providing significant resources and capabilities [32] Question: Focus of the partnership - The work is primarily focused on gate all around technologies, applicable to both logic and memory sectors [33] Question: Updates on STMicro collaboration - The company is engaged in discussions with multiple groups within STMicro, indicating strong credibility and interest in various technology areas [36][38] Question: Progress with RF SOI customers - There is increased interest in improving low noise amplifiers (LNAs) due to changing specifications from mobile phone manufacturers [43] Question: Status of transformative customers - Discussions with transformative customers are ongoing, with positive momentum and interest in expanding collaboration [49] Question: Financial outlook and operating expenses - Non-GAAP operating expenses for 2025 are projected to be around $17.25 million to $17.75 million, with a gradual ramp-up expected [54]