Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $5.1 million, exceeding the midpoint of guidance [9] - Adjusted EBITDA loss was $22.2 million, near the high end of the guidance range [19] - Non-GAAP net loss per share was $0.15, at the high end of the guidance range [19] - Capital expenditures for the quarter totaled $6.3 million, with cash used in operations amounting to $16.9 million [19] - The company ended the quarter with approximately $248 million in cash, cash equivalents, and marketable securities [19] Business Line Data and Key Metrics Changes - The company commenced development of a custom smartphone cell for a lead customer, with qualification samples to be delivered later this quarter [9][12] - Significant progress was made in operations, with Fab Two in Malaysia achieving ISO 9001 certification and critical yield improvements [10][14] - The company delivered its first smart eyewear customer samples and is expanding into handheld computer and scanner segments [15] Market Data and Key Metrics Changes - The company noted no material impact from recent global trade developments, as most planned near-term sales are concentrated in Asia [11] - Increased interest from U.S. customers has been observed, particularly in light of tariff developments [31] Company Strategy and Development Direction - The company is strategically focused on the smartphone market, which is seen as the fastest path to utilize Fab Two while maintaining pricing on value [14] - The acquisition of additional manufacturing assets in South Korea is expected to enhance the company's manufacturing footprint and support defense local customers [10][12] - The company aims to leverage its technology to meet stringent requirements in the smartphone market, which will facilitate entry into adjacent markets [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer engagement and a solid capital base [18] - The company is focused on delivering qualification samples to customers by June, which will inform future production volumes [70] - Management highlighted the importance of customer feedback in refining product offerings and meeting market demands [69] Other Important Information - The company will no longer provide guidance for GAAP EPS but will continue to provide non-GAAP EPS guidance [20] - A new financial supplement document compiling historical financial information has been published for transparency [21] Q&A Session Summary Question: Updates on EX3M energy density and sampling timelines - The company expects to sample EX3M by the end of the year, with defined chemistry and anodes locked in [24][25] Question: Status of the first major OEM cell phone development agreement - The company is working closely with two cell phone OEMs, with one customer’s cell dimensions finalized for mass production by the end of the year [26][27] Question: Customer conversations post-tariff implementation - No concerns have been raised by Chinese customers, and there is increased interest from U.S. customers seeking domestic manufacturing options [30][31] Question: Financial metrics around the recent acquisition in South Korea - The acquisition was an asset purchase for $10 million, significantly expanding manufacturing capacity [52] Question: Revenue capacity following the SolarEdge acquisition - It is too early to quantify potential revenue capacity, but the acquisition dramatically increases capacity and supports local defense opportunities [80][81] Question: Update on high-volume manufacturing line throughput - Fab Two is progressing well, with yields improving and production focused on custom cells for customers [87][90] Question: Competitive positioning in energy density and cycle life - The company’s batteries are competitive in the 800 watt-hour per liter range, with ongoing improvements in cycle life and fast charging capabilities [100] Question: Defense pipeline and geographic interest - The company is receiving increased interest in defense applications, with sample orders being shipped for qualification [105]