Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, while full-year revenue increased to $66.4 million from $60.8 million [14] - Gross margin for Q4 2025 improved to 34.5% from 26.8% in Q4 2024, and full-year gross margin rose to 32.7% from 28.3% [14] - Operating expenses for Q4 2025 were $6.5 million, compared to $5.4 million in Q4 2024, with full-year operating expenses increasing to $26.8 million from $23.8 million [15] - Net loss for Q4 2025 was $1.2 million, or $0.07 per share, compared to a net loss of $2.2 million, or $0.13 per share in Q4 2024 [15] - Non-GAAP net loss for Q4 2025 was $30,000, or $0.00 per share, compared to a non-GAAP net loss of $1.9 million, or $0.11 per share in the prior period [16] - Cash and cash equivalents at the end of the quarter were $1.3 million, up from $600,000 a year ago [17] Business Line Data and Key Metrics Changes - Increased sales for the full year 2025 were driven by higher volume in both material handling and ground support equipment markets, with higher average selling prices in the GSE market [14] - A significant purchase order for 120 units of the G80-420 lithium-ion battery pack was received from a major North American airline, valued at over $2 million [9] - An additional purchase order of $1.2 million was received for a G80 lithium-ion energy solution along with the SkyEMS software platform [9] Market Data and Key Metrics Changes - The company is targeting expanded opportunities in North and Central America, leveraging its strong foothold in the United States [12] - The quoting activity has increased significantly, indicating a positive trend for future orders [13][41] Company Strategy and Development Direction - The company is focused on five strategic initiatives: achieving profitable growth, executing operational efficiency, implementing a solution selling approach, building the right products for customer needs, and integrating value-added software across its battery portfolio [5] - The management team is committed to a solutions-based sales approach to increase value provided to customers [18] Management's Comments on Operating Environment and Future Outlook - The current tariff and macroeconomic environment create uncertainty, but the growth of sales opportunities and strategic initiatives provide optimism for the latter part of the fiscal year [18] - Management acknowledged the need for ongoing improvements to achieve profitability and cash flow breakeven [6] Other Important Information - The company has shipped over 28,000 battery packs, representing a significant opportunity to add intelligence to existing equipment with the SkyEMS software [10] - A 15% reduction in headcount was implemented to lower ongoing operating expenses [7] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - The improvement was driven by initiatives to reduce product input costs and lower warranty costs, contributing to about 60% of the gross margin improvement [22] Question: How has the beta rollout of SkyEMS 2.0 been received by customers? - The new version addresses customer pain points and has received positive feedback during beta testing [23] Question: What does the pipeline look like, and what is the backlog number? - The current backlog is approximately $9 million, with an increase in quoting activity expected to materialize in future quarters [29] Question: What is driving the recent airline orders? - The orders are driven by redesigned products that are more efficient and the addition of software solutions [37] Question: Can you elaborate on the quoting activity and its dynamics? - The increase in quoting activity is attributed to customers releasing capital for purchases after understanding the tariff impacts [42]