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]