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 first quarter revenue was $4.3 million, approximately $300,000 above the midpoint of guidance, but down 28% from Q1 2024 and down 24% compared to Q4 2024 [30] - New product revenue in Q1 was $3.8 million, down 23% from Q1 2024 and down 19% compared to Q4 2024 [30] - Non-GAAP gross margin in Q1 was 45.7%, significantly lower than 71.3% in Q1 2024 and 62.9% in Q4 2024 [31] - Non-GAAP net loss was $1.1 million or $0.07 per diluted share, compared to a net income of $1.7 million or $0.12 per diluted share in Q1 2024 [32] Business Line Data and Key Metrics Changes - Mature product revenue was $600,000, down from $1.1 million in Q1 2024 and $1 million in Q4 2024 [30] - The decrease in total revenue and new product revenue was primarily due to the timing of large eFPGA IP contracts [31] Market Data and Key Metrics Changes - The defense industrial base is increasingly interested in using Intel ETNA for new designs, indicating strong market demand for eFPGA hard IP [14] - The total market for discrete FPGA devices is approximately $1.5 billion, with significant interest from the defense sector [14] Company Strategy and Development Direction - The company aims to capitalize on its unique position as the first available source for eFPGA hard IP for Intel 18A technology, focusing on integration to drive growth [10][14] - The partnership with Faraday is expected to generate production eFPGA Hard IP license revenue beginning in the second half of 2025 [16] - The company is exploring storefront opportunities and has engaged in discussions regarding potential sales of SensiML [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid revenue growth, non-GAAP profitability, and positive cash flow for the full year 2025 despite a slower start [45] - The company anticipates a revenue rebound beginning in Q3, with a full-year non-GAAP gross profit margin expected to be in the low 60% range [37] Other Important Information - The company raised approximately $1.5 million from institutional investors and $1.2 million net from an ATM offering [35] - The strategic RadHard FPGA government contract is valued at approximately $6.6 million, with additional funding modifications expected [18] Q&A Session Summary Question: Can you walk us through the ramp of Intel 18A and its revenue stream? - Management indicated that the revenue stream will include both licensing and royalties, with significant interest from both defense and commercial markets [48][54] Question: What are the key drivers of revenue ramp through the year? - Key drivers include ongoing Anafuse FPGA business, the strategic RadHard contract, and new IP contracts, particularly in the second half of the year [58][60] Question: Can you provide insights on storefront opportunities? - Management highlighted several opportunities in the funnel, including government RFPs and interest from the Intel chiplet ecosystem [66] Question: How does the company plan to address the $1.5 billion FPGA market? - The company aims to reduce verification costs and integrate eFPGA into ASICs, which could lower overall costs for defense applications [70][72] Question: Are opportunities with Faraday limited to the announced node? - Management expressed interest in exploring smaller nodes, indicating potential for future collaborations beyond the current 22nm node [75]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $4.3 million, down 28% from Q1 2024 and down 24% from Q4 2024 [31] - New product revenue in Q1 was $3.8 million, down 23% from Q1 2024 and down 19% from Q4 2024 [31] - Non-GAAP gross margin in Q1 was 45.7%, significantly lower than 71.3% in Q1 2024 and 62.9% in Q4 2024 [32] - Non-GAAP net loss was $1.1 million or $0.07 per diluted share, compared to a net income of $1.7 million or $0.12 per diluted share in Q1 2024 [33] Business Line Data and Key Metrics Changes - Mature product revenue was $600,000, down from $1.1 million in Q1 2024 and $1 million in Q4 2024 [31] - Non-GAAP operating expenses in Q1 were approximately $3 million, compared to $2.5 million in Q1 2024 and $2.9 million in Q4 2024 [32] Market Data and Key Metrics Changes - The discrete FPGA market for U.S. military applications is approximately $1.5 billion, with significant interest in integrating eFPGA technology into ASICs and SoCs [14][44] - The defense industrial base is increasingly interested in using eFPGA technology to reduce costs and improve integration [70][71] Company Strategy and Development Direction - The company aims to capitalize on its unique position as the first available source for eFPGA hard IP for Intel 18A technology, focusing on integration to drive growth [10][14] - The partnership with Faraday is expected to accelerate expansion into new end markets and generate future revenue through storefront services [15][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid revenue growth, non-GAAP profitability, and positive cash flow for the full year 2025 despite a slower start [46][41] - The company anticipates a revenue rebound beginning in Q3 2025, driven by new IP contracts and existing mature product sales [39][60] Other Important Information - The company raised approximately $1.5 million from institutional investors and $1.2 million net from an ATM offering [37] - The strategic RadHard FPGA government contract is expected to contribute significantly to future revenue, with ongoing engagement with the defense industrial base [19][86] Q&A Session Summary Question: Can you walk us through the ramp of Intel 18A and its revenue stream? - Management discussed the progress of Intel 18A and its importance in accelerating customer engagement, particularly in defense applications, with revenue expected from licensing and royalties [50][54] Question: What are the key drivers for revenue ramp in the second half of the year? - Key drivers include ongoing Anafuse FPGA business, the strategic RadHard contract, and new IP contracts, particularly in advanced process technologies [58][60] Question: Can you provide insights on storefront opportunities? - Management highlighted several storefront opportunities, including contracts with defense customers and participation in chiplet ecosystems, indicating a growing trend towards storefront services [64][66] Question: How does the company plan to address the $1.5 billion FPGA market? - The company aims to reduce verification costs and improve integration, which is critical for defense applications, thereby enhancing its market position [68][71] Question: Are there opportunities with Faraday beyond the current node? - Management expressed interest in exploring smaller nodes with Faraday as they gain confidence in the integration of eFPGA technology [74][76]