Financial Data and Key Metrics Changes - Revenue for the third fiscal quarter increased 16% to $16.7 million compared to $14.5 million in the same quarter of the previous year, driven by higher demand in material handling and ground support equipment markets [18] - Gross profit increased 32.5% to $5.3 million, with gross margin rising to 32% from 28% year-over-year [18] - Net loss for the quarter was $1.9 million, an improvement from a net loss of $3 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - The company reported unit growth of 1025% in the material handling and ground support equipment markets [18] - Selling and administrative expenses increased to $5.7 million, primarily due to professional fees related to a multi-year restatement of financial statements [19] - Research and development expenses decreased to $1.1 million, driven by lower salaries and severance costs [19] Market Data and Key Metrics Changes - The company is experiencing increased interest from Tier 1 customers in adopting lithium-ion solutions for distribution centers, indicating a shift towards electrification [30] - The company is seeing a rise in quotation activities as part of its sales force, suggesting a growing demand in the market [31] Company Strategy and Development Direction - The company has aligned five strategic initiatives: profitable growth, operational efficiencies, solution selling, product innovation, and software/recurring revenue [5][7] - The launch of the G96 solution aims to electrify airline drone support equipment, addressing demands for higher power and sustainable operations [8] - The company is focusing on building a diversified and agile supply network to support long-term scalability and innovation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operational resilience despite geopolitical complexities and tariff pressures [12] - The company is optimistic about its future, emphasizing the importance of software-driven value and intelligent energy solutions [21] - Management noted that customer commitment to environmental goals remains strong, despite potential impacts from tariffs and subsidy reductions [25] Other Important Information - The company announced a patent award for an AI-based algorithm for Intelligent Battery Lifecycle Maximization, indicating a shift towards becoming a technology-driven energy solutions provider [11] - Cash on hand was $500,000 as of March 31, 2025, reflecting changes in working capital management [20] Q&A Session Summary Question: Sensitivity of customers to pricing actions from tariffs - Management indicated that customers are committed to their ESG goals and the transformation process, with minimal impact from tariffs at this stage [25] Question: Feedback on Sky BMS and potential ROI - Management highlighted that Sky BMS is crucial for customers to realize value, with expected ROI from reduced maintenance visits and better integration with existing technologies [27] Question: Order trends and visibility - Management noted good inventory levels that are not subject to tariffs, anticipating minimal impact on Q4 demand [43] Question: Changes in sales personnel and market penetration - Management reported positive changes from new sales personnel, emphasizing the opportunity to position the company as a software provider with strong battery solutions [36][37] Question: Timeline for deployment of new models - Management confirmed that the G96 model is already in customer testing and production, with plans to expand into higher voltage categories [39]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 16% to $16.7 million compared to $14.5 million in Q3 2024, driven by higher demand in material handling and ground support equipment markets [15] - Gross profit for Q3 2025 increased by 32.5% to $5.3 million, with gross margin rising to 32% from 28% in Q3 2024 [15][16] - Net loss for Q3 2025 was $1.9 million, an improvement from a net loss of $3.0 million in Q3 2024 [17] Business Line Data and Key Metrics Changes - Unit growth in material handling and ground support equipment markets was reported at 1025% [15] - Selling and administrative expenses increased to $5.7 million in Q3 2025 from $5.3 million in Q3 2024, primarily due to professional fees related to a multi-year restatement of financial statements [16] Market Data and Key Metrics Changes - The company is experiencing increased interest from Tier 1 customers in adopting lithium-ion solutions for distribution centers, indicating a shift towards electrification despite economic uncertainties [28] Company Strategy and Development Direction - The company has aligned five strategic initiatives: profitable growth, operational efficiencies, solution selling, product innovation, and software/recurring revenue [5][6] - The launch of the G96 solution aims to advance electrification in airline drone support equipment, positioning the company as a technology leader in clean, high-performance ground support equipment [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operational resilience despite tariff pressures and geopolitical complexities, focusing on supplier diversification and domestic assembly capabilities [12][14] - The company anticipates minimal impact from tariff increases in Q4 2025 due to good inventory levels [40] Other Important Information - The company announced a patent award for an AI-based algorithm for Intelligent Battery Lifecycle Maximization, indicating a shift towards becoming a technology-driven energy solutions provider [9][10] Q&A Session Summary Question: Sensitivity of customers to pricing actions from tariffs - Management noted that customers are committed to their ESG goals and transformation efforts, indicating a stable business environment despite tariff impacts [22] Question: Feedback on Sky BMS and potential ROI - Management highlighted that Sky BMS is crucial for customers to realize value, with expected ROI from reduced maintenance visits and better integration with existing technologies [24][25] Question: Adoption of lithium-ion in the forklift market - Management reported increased interest from customers in adopting lithium solutions, with competitors facing challenges due to tariffs, potentially providing a market share advantage [28] Question: Changes from new sales personnel - Management indicated positive changes from new sales personnel, positioning the company as a software provider with strong battery solutions [34] Question: Deployment timeline for G96 model - Management confirmed that the G96 model is in customer testing and production, with expectations for rapid deployment in the GSE market [37]