Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $16.1 million, a 38% decrease from $25.8 million in Q2 2024 [13] - Gross profit for Q2 2025 was $2.5 million, a 45% decrease from $4.6 million in Q2 2024 [14] - Net loss for Q2 2025 was $1.5 million, compared to a net income of $0.3 million in Q2 2024 [14] - Cash and cash equivalents increased to $18.4 million from $17.3 million at the end of Q1 2025, driven by $1.8 million in cash flow from operations [15] Business Line Data and Key Metrics Changes - The company has signed several long-term contracts with new and existing customers, with over 80 customers now under long-term agreements [8] - A new product purchase agreement was established with Innovative Renal Care, representing a multimillion-dollar commitment over three years [9][10] Market Data and Key Metrics Changes - The company remains a leading supplier in the hemodialysis concentrates market, serving over 12,000 purchasing facilities in the U.S. and select international markets [7] - The transition of the largest customer to another supplier has significantly impacted sales, but the company is working to stabilize and grow its customer base [5][11] Company Strategy and Development Direction - The company aims to secure its base business with long-term contracts and fill revenue gaps caused by customer transitions [5] - Focus on capital investment in equipment to enhance manufacturing efficiency and reduce costs [26] Management's Comments on Operating Environment and Future Outlook - Management believes the company is well-positioned for growth in the latter half of the year despite current challenges [6] - Discussions with the largest customer, DaVita, are ongoing for a long-term supply agreement, which could positively impact future revenues [22][23] Other Important Information - The company has reduced customer concentration risk, with the largest customer now accounting for only 10% of revenue, down from 40-45% [37] - The company is focused on creating a reliable and reproducible business model to ensure consistent performance and cash flow [28][29] Q&A Session Summary Question: Expansion plans in the Western United States - Management sees significant opportunities in the West, with a potential market of approximately $100 million, and is working on acquiring larger customers [19][20] Question: Negotiations with the largest customer - Ongoing discussions with DaVita aim to establish a long-term supply arrangement, which could impact financials positively towards the end of the year [22][23] Question: Capital allocation priorities - Current focus is on investing in capital equipment to enhance manufacturing efficiency, while ensuring sufficient resources for debt obligations [26] Question: Gross margin stability despite revenue decline - The organization has been right-sized, and investments in new equipment have improved efficiency, helping to maintain gross margins [33][34] Question: Customer concentration risk mitigation - The company has successfully diversified its customer base, significantly reducing concentration risk [37][38] Question: Impact of competitor's product recall - The company is working closely with customers to supplement supply due to issues faced by a competitor, which has created opportunities for Rockwell [41][42]