Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, an increase from $4.6 million in the same period of fiscal 2025 and slightly up from $6.3 million in the first quarter of fiscal 2026 [14] - Gross margin was 54.8% in the second quarter of fiscal 2026, compared to 38.6% in the year-ago quarter and 58.1% in the preceding quarter [14] - The second quarter operating loss was $3.2 million, an improvement from an operating loss of $5.6 million in the prior year period and $2.2 million in the prior quarter [16] - Net loss in 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 first quarter of fiscal 2026 [17] 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% of revenues in the same period a year ago [12] - 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 [12] - Military defense sales accounted for 28.9% of second-quarter shipments, down from 40.2% in the comparable period a year ago [13] - Sigma Quad sales were 50.1% of second-quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [13] Market Data and Key Metrics Changes - The company is focusing on high-value edge and defense applications, such as drones and military vehicles, which are expected to drive future growth [6] - The Gemini 2 project has been approved for prototyping by an offshore defense contractor, indicating strong market interest [7] Company Strategy and Development Direction - The company is accelerating execution across hardware and software development, particularly for the Gemini 2 and PLATO chip initiatives [4] - The strategy includes converting proof-of-concept projects into commercial customers and expanding those relationships into large production programs [5] - The company aims to strengthen ties with key defense and government partners through its POC and SBIR programs [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini 2, which is positioned to deliver superior processing at a fraction of the power compared to existing solutions [3] - The company is focused on the edge market rather than data centers, citing resource limitations and a strategic decision to concentrate on areas with more immediate opportunities [50] Other Important Information - The company closed a $50 million equity financing to support its growth initiatives [3] - A recent extension of a Space Development Agency contract provided $751,000 for radiation-hardened beam testing of Gemini 2 [11] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged in the auto industry but believes its technology will adapt well in those areas in the future [20] 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 [22] Question: Is there a plan to validate the Gemini 2 information by Cornell or another third party? - The company is in discussions with Cornell about getting a Gemini 2 board for validation [25] Question: Are there plans to enhance military defense experience on the management team? - There are currently no plans to revise the board, but it could be considered in the future [26] Question: Why is the company developing its own large language model? - The company is not developing its own large language model but is working on an open-source model for specific applications [27][29] Question: How does the company differentiate its APU versus GPU competitors? - The company claims significant advantages in power consumption, with Gemini 2 using 98% less power than NVIDIA's A6000 GPU [32] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be very large, potentially in the tens of billions, with the company well-positioned to address it [36] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and evenly distributed funding between Gemini 2 and PLATO development [40] Question: Has the company attracted new customers after the Cornell study? - The company has not seen new customer traction specifically due to the Cornell paper, but it has validated existing claims [56]

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 a net loss reduced by 47% from $20,100,000 in 2024 to $10,600,000 [5][25] - Gross margin for Q4 2025 was 56.1%, up from 51.6% in Q4 2024, primarily due to higher revenue and product mix [20] - Total operating expenses in Q4 2025 were $5,600,000, down from $7,200,000 in Q4 2024 [21] - Cash and cash equivalents as of March 31, 2025, were $13,400,000 compared to $14,400,000 a year earlier [25] Business Line Data and Key Metrics Changes - 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 [18] - Military defense sales accounted for 30.7% of Q4 shipments, down from 35.5% in the comparable period a year ago [18] - SigmaQuad sales were 39.3% of Q4 shipments, compared to 42.4% in Q4 2024 [19] Market Data and Key Metrics Changes - Demand for high-density SRAM is driven by critical systems in chip manufacturing, particularly from a leading GPU provider [11] - The company anticipates continued demand from this customer in fiscal year 2026 at similar levels to 2025 [11] Company Strategy and Development Direction - The company plans to build on the progress of APU development and drive continued growth in sales while maintaining operational efficiency [9] - There is a focus on securing funding to support the next phase of development, particularly for AI strategy [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the initial order for radiation-hardened SRAM, which carries a higher gross margin than traditional SRAM [12] - The company is actively working to secure heritage status for its radiation-hardened SRAM to enhance market acceptance [12] - Management highlighted the strategic interest in the PLATO chip due to its new capabilities for AI applications [8] Other Important Information - The company reported a gain on the sale of assets of $5,800,000 from the sale of its headquarters building [23] - The ongoing SBIR programs have generally received payments totaling $1,600,000, with an additional $1,000,000 anticipated upon program completion [7] Q&A Session Summary Question: Market size and scaling for PLATO and GEMINI II chips - Management has not released TAM numbers yet but indicated that GEMINI II is an extension for edge applications, while PLATO targets the LLM market at the edge [27][28][30] Question: Interest in GEMINI II from commercial companies - Most early interest has come from military defense applications, with some companies looking for chip-only solutions for drones or satellites [36][38] Question: Details on Needham's contributions - Management stated that nothing is off the table regarding potential contributions from Needham, including asset sales or funding opportunities [40] Question: Cash flow from operations and CapEx - Cash used in operating activities for the year was about $12,900,000, with minimal CapEx of approximately $45,000 [49][50]