Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and consistent with prior communications that revenue growth would be weighted towards the second half of the year [35][36] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [36][37] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [38] - Adjusted EBITDA for the quarter was a loss of $21.8 million, indicating a significant operational loss but reflecting the anticipated revenue growth in the future [38][39] Business Line Data and Key Metrics Changes - Excelsius is positioned to capitalize on the growing demand for two-phase direct-to-chip liquid cooling technology, with significant market opportunities identified [35][36] - The liquid cooling market is projected to grow from $1.3 billion to $5 billion by 2028, driven by advancements in AI and chip technology [14][15][34] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for Excelsius [10] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of about 30% [14][15] Company Strategy and Development Direction - The company aims to build enterprises with a minimum of $1 billion in enterprise value, focusing on Excelsius as a key growth driver [7] - Excelsius is leveraging partnerships with hyperscalers, OEMs, and global resellers to enhance market reach and capitalize on the growing demand for liquid cooling solutions [20][27] - The company is focused on developing a robust supply chain and manufacturing capacity to meet anticipated market needs, ensuring scalability and reliability [31][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will be an inflection point for revenue growth, driven by increasing demand for liquid cooling solutions [34][35] - The management highlighted a significant uptick in lead generation and engagement with potential customers since the release of NVIDIA's roadmap, indicating a shift in market dynamics [66][69] Other Important Information - The company has seen a 200% increase in its strategic partner network since the beginning of 2025, indicating strong market interest and engagement [27] - The average proposal size has increased significantly, reflecting a shift towards larger scale production opportunities [28] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement, allowing for a broader customer base [44][46] Question: Will the potential inflection point be served largely through the white label agreement? - Management indicated that while some volume is expected from the agreement, there is a much broader pool of customers engaged [51][52] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and headroom compared to pool boiling, which can lead to operational issues [57][59] Question: How is the company ensuring it can scale manufacturing to meet demand? - The company has established partnerships with contract manufacturers and has a strong internal team to support large volume orders [74][76]

Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and previous communications about revenue growth being weighted towards the second half of the year [38] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [39] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [40] - EBITDA for the quarter was a loss of approximately $248 million, with adjusted EBITDA reflecting a loss of $21.8 million [41] Business Line Data and Key Metrics Changes - Excelsius is positioned at the forefront of the two-phase direct-to-chip liquid cooling market, which is expected to grow significantly due to increasing data center budgets driven by AI and evolving chip technology [10][15] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of approximately 30%, projected to reach $5 billion by 2028 [14][15] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for critical infrastructure providers like Excelsius [10] - The overwhelming majority of data centers still use inefficient air-cooled solutions, with single-phase water cooling technologies representing only a small percentage of installations [10] Company Strategy and Development Direction - The company aims to build enterprises that can achieve a minimum of $1 billion in enterprise value, with Excelsius being a key focus due to its market potential [6] - Excelsius is developing relationships with hyperscalers, multinational OEMs, global resellers, and AI as a service providers to drive growth [21][29] - The company is focused on enhancing its manufacturing capacity and partnerships with global contract manufacturers to meet anticipated market demands [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will represent an inflection point for revenue growth at Excelsius, driven by significant demand from large global players [37] - The company is optimistic about the future, citing a substantial increase in lead generation and engagement with potential customers since February [70][72] Other Important Information - The company has seen a notable increase in its strategic partner network, growing by nearly 200% since the start of 2025, indicating strong market interest [29] - The average proposal size has increased significantly, reflecting a shift towards full-scale production opportunities [30] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement [47][49] Question: Will the potential inflection point be served largely through the white label agreement? - The company expects some volume from those agreements but emphasizes a broader pool of engaged customers [54][56] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and excess fluid availability compared to pool boiling, which can lead to operational issues [61][63] Question: Will NVIDIA mitigate hotspots in the next generation architecture? - The response was cautious due to non-disclosure agreements [65] Question: Can you discuss the increase in lead generation and fulfillment capabilities? - There has been a significant spike in activity since late February, with a paradigm shift in conversations towards deployment of two-phase cooling solutions [70][72]