Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [22] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [22] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [22] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [22][23] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per share in Q4 2024 [24] Business Line Data and Key Metrics Changes - The company is focusing on high-density eFPGA hard IP cores and expects significant revenue contributions from its storefront business model starting in 2026 [7][9] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its products [9] Market Data and Key Metrics Changes - The company is positioned to address both discrete and embedded FPGA designs across a full spectrum of radiation hardness requirements, leveraging its SRH FPGA test chip [11][14] - The company anticipates a mature product revenue of approximately $4 million for the full year 2026 [25] Company Strategy and Development Direction - The company plans to conduct three multi-project wafer (MPW) tape-outs in 2026, with costs covered by customer contracts [33] - The company is expanding its involvement with defense contractors and exploring opportunities in commercial markets [16][66] - The company aims to achieve between 50% and 100% revenue growth in 2026, supported by a solid foundation of government contracts and pending agreements [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 revenue was lower than expected due to contract delays but expressed confidence in achieving nearly 50% sequential revenue growth in Q1 2026 [7] - Management expects evaluations of test chips to occur in 2026, with actual development activities starting in the following year [46] - The company anticipates cash flow positivity in the second half of 2026, with net income also expected to improve during that period [48][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices, and discussions for divestiture are ongoing [20][21] - The company is working to secure a new banking partner to obtain more favorable terms and reduce its line of credit [31] Q&A Session Questions and Answers Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional contributions expected from government contracts and IP licenses [40][41] Question: What is the expected timing for wins with defense industrial bases (DIBs)? - Management expects evaluations to take place this year, with architecture understanding by the end of the fiscal year, leading to development activities next year [46] Question: Will the company be net income positive this year? - Management expects to be cash flow positive in the second half of the year, with net income also anticipated to improve during that period [48][51] Question: Can you elaborate on the dynamics of the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [53] Question: What is the competitive landscape for the company's products? - Management highlighted that the company is well-positioned in the market, particularly in the radiation-hardened FPGA space, with limited competition from U.S.-based companies [66][68]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [22] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [22] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [22] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [22][23] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per share in Q4 2024 [24] Business Line Data and Key Metrics Changes - The company is focusing on high-density eFPGA hard IP cores and expects significant revenue contributions from its storefront business model starting in 2026 [7][8] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its test chips [9][10] Market Data and Key Metrics Changes - The company is positioned to address both discrete and embedded FPGA designs across a full spectrum of radiation hardness requirements, expanding its serviceable addressable market (SAM) [11][14] - The company anticipates a mature product revenue of approximately $4 million for the full year 2026 [25] Company Strategy and Development Direction - The company plans to conduct three multi-project wafer (MPW) tape-outs in 2026, with costs covered by customer contracts [33] - The company is leveraging architectural enhancements to address lucrative markets for very high-density eFPGA cores in ASIC designs [14][33] - The company is exploring the potential to leverage FPGA as a chiplet co-packaged with microcontrollers, indicating a strategic move towards chiplet technology [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 50% to 100% revenue growth in 2026, supported by a solid foundation from government contracts and pending contracts in negotiation [34] - The company expects to be cash flow positive in the second half of the year, with net income also anticipated to be positive during that period [48][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices, but is in discussions for potential divestiture [20][21] - The company is working to secure a new banking partner to obtain more favorable terms and reduce its line of credit [31] Q&A Session Summary Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional contributions expected from government contracts and IP licenses [40][41] Question: What is the expected timing for wins with DIBs? - Management expects evaluations to take place this fiscal year, with actual development activity starting next year [46] Question: Will the company be net income positive this year? - Management expects to be net income positive in the second half of the year [51] Question: Can you clarify the dynamics of the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [53] Question: What is the trajectory of gross margins through the year? - Management anticipates Q1 gross margins around 45%, with potential increases in Q3 and Q4 [98]

Financial Data and Key Metrics Changes - Total fourth quarter revenue was $3.7 million, down 35% from Q4 2024 and up 84% from Q3 2025 [24] - New product revenue in Q4 was $2.8 million, down 39% from Q4 2024 and up 199% compared to Q3 2025 [24] - Mature product revenue was $0.9 million, down from $1 million in Q4 2024 and $1.1 million in Q3 2025 [24] - Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and unexpected costs [24][25] - Non-GAAP net loss was $2.9 million or $0.17 per share, compared to a net income of $0.6 million or $0.04 per diluted share in Q4 2024 [26] Business Line Data and Key Metrics Changes - The company is focusing on both new and mature products, with new product revenue showing significant growth compared to the previous quarter [24] - The company has received orders for its SRH FPGA dev kit, indicating strong demand for its new products [9] Market Data and Key Metrics Changes - The company is positioned to benefit from contracts with the U.S. government, with a potential expansion of its contract to $89 million [34] - The company is also exploring opportunities in the commercial sector, with a focus on non-defense applications [65] Company Strategy and Development Direction - The company plans to accelerate its storefront business model in 2026, with three multi-project wafer (MPW) tape-outs planned [35] - Architectural enhancements have been developed to address lucrative markets for very high-density eFPGA cores [36] - The company aims to deliver between 50% and 100% revenue growth in 2026, supported by a solid foundation of government contracts and mature business [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 revenue was lower than expected due to contract delays but expressed confidence in achieving nearly 50% sequential revenue growth in Q1 2026 [6] - The company expects evaluations to take place this year with defense industry buyers, leading to potential development activity next year [47] - Management anticipates cash flow positivity in the second half of the year, with net income also expected to improve during that period [50][51] Other Important Information - The company took a large impairment charge on SensiML due to accounting practices related to assets held for sale [21] - The company is in discussions with potential buyers for SensiML, focusing on AI and drone projects [22] Q&A Session Summary Question: Can you provide insights on the expected dollar growth from 2025 to 2026? - Management indicated that $4 million will come from the base mature business, with additional revenue expected from government contracts and IP licenses [42] Question: What is the expected timing for wins with defense industry buyers? - Management expects evaluations to occur this year, with development activity starting next year [47] Question: Will the company be net income positive this year? - Management expects to be cash flow positive in the second half of the year, with net income also anticipated to improve during that period [50][51] Question: Can you elaborate on the three MPWs planned for this year? - Management confirmed that two of the MPWs will be fully covered by customer contracts, with the third partially covered [55] Question: What is the competitive dynamic for the company's products? - Management highlighted that the company is well-positioned in the market, particularly in the defense sector, with few competitors meeting the same radiation hardness requirements [68]

Financial Data and Key Metrics Changes - Total third-quarter revenue was $2 million, down 52.5% from Q3 2024 and down 45% compared to Q2 2025 [22] - Non-GAAP gross margin in Q3 was a negative 11.9%, compared to 65.3% in Q3 2024 and 31% in Q2 2025 [23] - Non-GAAP net loss was $3.2 million or $0.19 per diluted share, compared to a loss of $0.9 million or $0.06 per diluted share in Q3 2024 [24] Business Line Data and Key Metrics Changes - New product revenue in Q3 was $1 million, down 73.1% from Q3 2024 and down 67.3% compared to Q2 2025 [22] - Mature product revenue was $1.1 million, up from $0.7 million in Q3 2024 and up from $0.8 million in Q2 2025 [22] Market Data and Key Metrics Changes - The company is targeting total revenue of $6 million for Q4, with a significant portion dependent on a nearly $3 million contract forecasted to be awarded late in the quarter [26][27] - If the contract is awarded late, total revenue for Q4 could be as low as $3.5 million [27] Company Strategy and Development Direction - The company is focusing on expanding its served available market to include very high-density eFPGA hard IP designs targeting advanced fabrication nodes [6] - The strategic initiative includes the development of an SRH FPGA test chip to secure design wins and accelerate storefront business [10][12] - The company anticipates that storefront revenue could represent about 10% of total revenue in 2026, driven by increased demand from defense industrial base (DIB) customers [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the rebound of U.S. government strategic radiation hard FPGA programs despite potential delays due to government shutdowns [38] - The company expects to see a significant increase in revenue recognition from government contracts in Q4 and 2026 [14][33] Other Important Information - Total cash at the close of Q3 was $17.3 million, down from $19.2 million at the close of Q2 2025 [25] - The company raised approximately $2 million using its existing ATM in October, preparing for potential delayed payments associated with U.S. government contracts [29] Q&A Session Summary Question: What impact is the government shutdown having on your business? - Management noted that while there are delays in some projects, existing contracts are not seeing delays, and they anticipate a rebound once funding resumes [38][39] Question: Can you size the range of storefront revenue expected in 2026? - Management indicated that storefront revenue could be significant, potentially around 10% of total revenue, with expectations for notable growth compared to 2025 [41] Question: How do the opportunities with GlobalFoundries 12LP compare to other foundries? - Management believes the 12LP opportunity is larger due to its strategic rad-hard FPGA and IP licensing potential, which could lead to hundreds of millions in revenue [52][56] Question: What is the expected share count for 2025? - The expected ending share count for 2025 is approximately 17 million shares [80] Question: What caused the significant revenue decline forecasted for 2025? - Management explained that the decline is due to the timing of large IP contracts, which if not recognized in the current fiscal year, significantly impacts revenue percentages [82]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $3.7 million, down 10.7% from Q2 2024 and down 15% compared to Q1 2025 [25] - Non-GAAP gross margin in Q2 was 31%, compared to 54.4% in Q2 2024 and 47.1% in Q1 2025 [26] - Non-GAAP net loss was $1.5 million or $0.09 per share, compared to a loss of $0.7 million or $0.05 per share in Q2 2024 [27] Business Line Data and Key Metrics Changes - New product revenue in Q2 was $2.9 million, down 4.5% from Q2 2024 and down 22.3% compared to Q1 2025 [25] - Mature product revenue was $800,000, down from $1.1 million in 2024 and up from $600,000 in 2025 [25] Market Data and Key Metrics Changes - Revenue guidance for Q3 2025 is approximately $2 million, expected to consist of $1.1 million in new products and $900,000 in mature products [29] - Anticipated Q3 non-GAAP gross margin is expected to be approximately 5% due to unfavorable absorption of fixed costs [30] Company Strategy and Development Direction - The company is focusing on two strategic initiatives: advancing the SRH FPGA test chip and the accelerated introduction of AUSTRALIS 2.0, which are expected to enhance storefront design wins and expand the served available market [5][12] - The company aims to leverage the growing demand for radiation-tolerant and radiation-hardened semiconductor devices in defense applications, particularly in the U.S. [6][8] Management's Comments on Operating Environment and Future Outlook - Management anticipates a significant revenue rebound beginning in Q4 2025, despite projecting a modest decline in full-year revenue compared to 2024 [30][34] - The company is confident in the strategic investments made, believing they will lead to substantial future revenue opportunities in the defense sector [34] Other Important Information - The company has raised approximately $2.9 million through ATM sales to support strategic objectives [28] - Acknowledgment of the passing of a long-serving board member and the appointment of a new board member with extensive experience in the semiconductor industry [23] Q&A Session Summary Question: Can you provide insight into the strategic decision to advance the test chip and AUSTRALIS? - Management indicated that the decision was made to capture significant future revenue opportunities in the defense sector, with expectations of test chip revenue starting in early 2026 [38][40] Question: How engaged is the company with prospective customers? - Management confirmed strong engagement with customers, leading to confidence in the decision to self-fund the tape-out of the test chip [42][44] Question: Are there any competitors doing similar work? - Management stated that there are no known competitors offering similar radiation-hardened FPGA technology on the 12nm node, positioning the company uniquely in the market [52][53] Question: What is the expected impact of delays on existing contracts? - Management assured that there would be no negative impacts on existing contracts due to the prioritization of the AUSTRALIS 2.0 initiative [64] Question: Can you elaborate on the monetization of test chips? - Management explained that test chips are sold as engineering samples, which customers are accustomed to paying for in the defense sector [72][75]