Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $307 million, exceeding the midpoint of guidance, with non-GAAP earnings per share of $0.99, boosted by a $0.28 discrete tax benefit [16] - For FY2025, total revenue reached $1.35 billion, a 6% year-over-year increase, with non-GAAP earnings per share of $4.24 [17] - Operating cash flow was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue was $282 million, while products and services revenue was $25 million for Q4 2025 [16] - Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in FY2025, representing 45% of licensing revenue [17] - Foundational audio technology revenue declined just under 1%, aligning with expectations of flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in the mobile segment, driven by the GE Licensing acquisition, while PC and broadcast grew in mid-single digits [17] - Consumer electronics (CE) revenue was down, consistent with expectations [17] - The automotive sector continues to grow rapidly, with new agreements signed with major brands like Maruti Suzuki and VinFast [7][8] Company Strategy and Development Direction - The company aims to expand its total addressable market through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [11][12] - Dolby is focusing on innovation and collaboration within the ecosystem to enhance the quality and efficiency of entertainment experiences [13][14] - The company is optimistic about growing Dolby Atmos, Dolby Vision, and Imaging Patents at a rate of 15%-20% per year over the next three to five years [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have not seen specific impacts from tariffs, and partners are resilient [48] - The company expects revenue for FY2026 to be between $1.39 billion and $1.44 billion, reflecting a 3%-7% year-over-year increase [19] - For Q1 FY2026, revenue is expected to be between $315 million and $345 million, with licensing revenue between $290 million and $320 million [20] Other Important Information - The company recorded a $6 million restructuring charge in Q4 2025 as part of operational streamlining [16] - The first licensees for the new imaging patent pool were signed in the second half of FY2025, with revenue recognition expected in FY2026 [10] Q&A Session Summary Question: Expansion of Total Addressable Market - Management confirmed that the video distribution program for streamers combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [24][26] Question: Imaging Patents and Revenue Generation - The imaging patent licensing is primarily driven through patent pools, with five licensees signed up in the second half of FY2025, expected to generate revenue in FY2026 [29] Question: Automotive Market Progress - Management anticipates that automotive will become a separate end market, with ongoing efforts to deepen partnerships with existing brands [35] Question: Macro Environment Observations - Management has not identified specific impacts from tariffs and noted that the device market is stabilizing after previous declines [48] Question: Capital Allocation Strategy - The company has over $270 million remaining in share repurchase authorization and continues to evaluate its capital allocation strategy regularly [52]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $229 million, an 11% increase year over year, and at the high end of guidance [5][12] - Non-GAAP gross margin for Q4 was 34%, up 130 basis points from the same quarter last year [6][15] - Non-GAAP earnings per share for Q4 was $0.37, up $0.21 compared to last year [6][18] - For the full fiscal year, total revenue was $845 million, a 4% increase compared to fiscal 2024 [6][12] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6][19] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year over year to $152 million in Q4, while industrial segment revenue surged by 25% to $77 million [5][12] - For the full year, medical revenue was $593 million, a 2% increase, and industrial revenue was $252 million, a 10% increase [6][12] - The industrial segment achieved its highest revenue quarter ever at $77 million [5][12] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year over year [13] - Sales volume to China remained steady, contributing 14% of total revenues, despite tariff challenges [13][18] Company Strategy and Development Direction - The company is focusing on growth initiatives, including innovative technologies like photon counting for CT and expanding production in India [9][25] - The strategy includes strengthening geopolitical resiliency through supply chain and manufacturing regionalization [22][24] - The company plans to invest in R&D to maintain a competitive edge and target growth markets such as India, South Asia, and Latin America [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to fiscal 2025 due to global tariff situations, but customer ordering patterns normalized as the situation stabilized [22] - Customers in China are projecting stronger orders for 2026 compared to previous years, driven by demand for value-tier and mid-tier CT systems [22][24] - The company expects gradual growth throughout fiscal 2026, with medical business anticipated to grow, while China is modeled to be stable [42][44] Other Important Information - The company ended the year with $155 million in cash, down from $213 million the previous year, primarily due to debt reduction [6][19] - The company reported a net cash flow from operations of $8 million in Q4 [19] Q&A Session Summary Question: Can you split the top 10 customers' contribution between medical and industrial? - The company does not break out the contribution between medical and industrial due to commercial reasons, but top 10 customers generally account for 50%-55% of sales [33] Question: Is there a structural shift in the medical and industrial segments? - Industrial sales are growing and approaching 30% of overall sales, while medical segment volatility is influenced by geopolitical factors [35] Question: Any implications from GE or Siemens divesting their China business? - The majority of business in China comes through Chinese OEMs, so these announcements do not have significant implications for the company [38] Question: Can you provide a high-level outlook for the full year? - The demand environment looks solid, with expectations for growth in both medical and industrial segments, though China is modeled to be stable [42][44] Question: What is the impact of tariffs on gross margin? - Tariffs are impacting gross margin by approximately 100 to 150 basis points, but rerouting supply chains may help mitigate this in the future [83]

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $7.0 million, an increase of 6% over Q2 2025, driven by strong volume improvements in key product lines [3] - Gross profit for the quarter was $0.9 million, down from $1.6 million in Q2 2025, reflecting investments in direct labor and manufacturing overhead [3][4] - Adjusted EBITDA for the year-to-date totaled $2.1 million, compared to $2.2 million in the same period last year, indicating stable performance despite temporary increases in expenses [4] - The net loss for the quarter was $1.4 million, or $0.04 per share, compared to a loss of $0.01 per share in Q2 2025 [4] Business Line Data and Key Metrics Changes - Strong volume improvements were noted in LEO Satellite Optics, Night Vision Optics, and other defense-related programs, contributing to revenue growth [3][8] - Operational initiatives focused on yield, throughput, and efficiency are expected to enhance margin performance in the coming quarters [4][7] Market Data and Key Metrics Changes - The global space economy is projected to reach $1 trillion by 2040, with significant growth in the hyperspectral imaging market expected to reach $28 billion by 2030 [11] - There is a growing demand for satellite-enabled communications, as nearly 30% of the world's population still lacks broadband access [11] Company Strategy and Development Direction - The company is focused on operational execution, innovation, and partnerships with OEMs across defense, communication, biomedical, and consumer markets [8] - Investments in manufacturing capacity and capabilities are ongoing, with $0.6 million allocated for targeted capital improvements year-to-date [5] - The introduction of Automated Flash Reporting aims to enhance operational transparency and improve performance metrics [9] Management's Comments on Operating Environment and Future Outlook - Management expects continued demand strength across space communications, defense optics, and biomedical automation, supported by long-term tailwinds [6][7] - For Q4 2025, revenue is expected to be in the range of $7.3 million to $8.0 million, indicating continued sequential growth [7] - The company remains confident in its long-term strategic position, supported by a strong customer base and an expanding product portfolio [7][12] Other Important Information - The company was not in compliance with certain covenants under its credit facility but received a waiver from M&T Bank, allowing continued access to its revolving credit facility [5][6] - A new position of Assistant Director of Strategic Military Sales has been created to enhance alignment with military end-user requirements [10] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [14]

Financial Data and Key Metrics Changes - The third quarter revenue was $697,000, which included first-time staking rewards income of $342,000, marking a significant increase from the prior year period [25] - Cost of revenue decreased to $103,000 from $187,000 in the prior year, primarily due to reduced inventory reserve and production scrap expenses [25] - Total operating expenses for the third quarter were $36 million, compared to $3.9 million in the third quarter of 2024, resulting in a loss from operations of $35.4 million, up from a loss of $4.1 million in the prior year [26] - The net loss for the third quarter was $352.8 million, or a loss of $32.89 per share, compared to a net loss of $3.7 million in the prior year [27][28] Business Line Data and Key Metrics Changes - The company has increased its holdings of SOL by approximately $100,000 in the first month of operation, totaling over 2.3 million tokens [15] - The average gross staking yield for October was 7.03% APY, outperforming the stake-weighted average of the top 10 largest validators [16] Market Data and Key Metrics Changes - Trading volume in HSDC has significantly outperformed the average of peer DATs, indicating growing awareness of Solana's fundamentals [10] - The company has been actively engaging with the Asian market, which is seen as a significant under-penetrated area with high potential for Solana [9] Company Strategy and Development Direction - The company aims to build the "Berkshire Hathaway of the Solana ecosystem," focusing on compounding shareholder value and maintaining a strong balance sheet [11] - The digital asset treasury strategy is centered around three pillars: advocacy, capital markets, and treasury management [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the digital asset treasury market has cooled after a period of rapid expansion, entering an execution and consolidation phase [14] - The company believes it has the necessary ingredients for long-term success, including balance sheet strength and institutional sponsorship [15] Other Important Information - The company successfully raised over $500 million to fund its digital asset treasury strategy in September [4] - The PoNS device submission for FDA 510(k) designation has been filed, reflecting positive clinical outcomes from the stroke registration program [22][23] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with closing remarks from management [29][30]

Financial Data and Key Metrics Changes - KULR Technology Group reported approximately $6.9 million in revenue for Q3 2025, representing a 116% year-over-year growth and a 75% sequential increase from the previous quarter [4] - Product revenue more than doubled, growing 112% year-over-year, while services revenue decreased by 74% [22] - The company has approximately $140 million in cash and digital assets, with no debt following the repayment of an $8 million loan [4] Business Line Data and Key Metrics Changes - The transition from a service-oriented to a product-driven company is evident, with product revenue significantly increasing [4] - The KULR One Air platform launched in July, resulting in over 150 battery SKUs, marking it as one of the largest made-in-USA battery portfolios [5][10] - The company is targeting to scale production from a few thousand packs per month to over 50,000 packs per month by mid-2026 [13] Market Data and Key Metrics Changes - The UAV and drone battery market is projected to grow from approximately $1.5 billion in 2025 to over $2.4 billion by 2030, driven by increased adoption in various sectors [11] - KULR is expanding into AI data centers and telecom infrastructure, which are among the fastest-growing energy markets globally [5] Company Strategy and Development Direction - KULR aims to capitalize on a super growth cycle in energy storage and management, expecting a tenfold growth in this sector over the next three years [5] - The company is focused on enhancing its Texas headquarters and production capabilities to meet rising demand [6] - KULR's strategy includes leveraging its domestic supply chain and advanced safety features to differentiate itself in the market [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for advanced energy storage solutions, particularly in UAVs, drones, and AI data centers [7] - The company is positioned to benefit from the increasing focus on domestic battery supply chains and safety standards [8] - Management highlighted the importance of maintaining a strong cash position to navigate market volatility [28] Other Important Information - KULR's Bitcoin treasury strategy involves disciplined acquisitions through mining operations, with a current Bitcoin holding valued at approximately $120 million [25][18] - The company is also developing KULR Vibe technology for vibration mitigation in aviation, with plans for a consumer app launch in 2026 [20] Q&A Session Summary Question: What is KULR's strategic priorities today as a Bitcoin treasury company with operations? - Management emphasized a focus on core energy management and storage business alongside vibration reduction technologies, which are expected to drive revenue growth for 2026 [26] Question: What is the long-term strategy for the Bitcoin treasury and mining operations? - The strategy includes accumulating Bitcoin through mining while exploring new opportunities in energy storage solutions, maintaining a strong cash position to buffer against market volatility [27][28] Question: Given the previous reverse split and ongoing share price pressure, what outcomes have been achieved in terms of institutional participation? - Since the reverse split in June 2023, institutional ownership has more than doubled, and there are no plans for another reverse split [30] Question: Can management provide updates on partnerships and their contribution to revenue? - Management noted steady progress on partnerships across various sectors, emphasizing the importance of these engagements for long-term growth [31][32] Question: Is communication with shareholders a priority? - Management plans to issue an investor letter in early 2026 and increase communication through events and updates on contracts and programs [34] Question: What steps is management taking to stabilize the stock price? - The focus remains on accelerating revenue growth in core markets, with a conservative approach to Bitcoin holdings and no debt [36][37] Question: How is management viewing changes in relation to revenue growth and stock price appreciation? - Management anticipates material revenue growth in 2026, which they believe will positively influence stock price as the business scales [40][42] Question: Will KULR tokenize aggregated datasets on a public blockchain? - Management discussed the potential for data monetization through energy as a service, emphasizing the importance of data collection and application for future business models [43][48]

Financial Data and Key Metrics Changes - KULR Technology Group reported approximately $6.9 million in revenue for Q3 2025, representing a 116% year-over-year growth and a 75% sequential increase from the previous quarter [4] - The company achieved a new trailing 12-month revenue record of $16.7 million, marking the fifth consecutive quarter of revenue growth compared to the prior year [23] - Product revenue grew by 112%, while services revenue declined by 74% [23] - The company has approximately $140 million in cash and digital assets, with no debt following the repayment of an $8 million loan [4] Business Line Data and Key Metrics Changes - The transition from a service-oriented to a product-driven company is evident, with product revenue more than doubling [4] - KULR One Air was launched, resulting in over 150 battery SKUs, positioning the company in a rapidly growing market [5][10] - The company is expanding its KULR One platform into AI data centers and telecom infrastructure, indicating a strategic shift towards high-demand markets [5][6] Market Data and Key Metrics Changes - The UAV and drone battery market is projected to grow from approximately $1.5 billion in 2025 to over $2.4 billion by 2030, driven by increased adoption in various sectors [11] - KULR's KULR One Max platform is positioned to meet the growing energy demands of AI data centers, which are experiencing significant power consumption increases [14] Company Strategy and Development Direction - KULR aims to capitalize on a super growth cycle in energy storage and management, with expectations of tenfold growth over the next three years [5] - The company plans to expand its Texas headquarters to over 100,000 sq ft and scale production from a few thousand to over 50,000 battery packs per month by mid-2026 [6][13] - KULR is focusing on building a domestic, secure battery supply chain, leveraging its Texas-based operations as a strategic advantage [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for advanced energy storage solutions across core markets, including UAVs, drones, and AI data centers [7][8] - The company is committed to maintaining a strong cash position and no debt to navigate market volatility [30][40] - Management anticipates significant revenue growth in 2026, driven by increased customer engagements and market demand [46] Other Important Information - KULR's Bitcoin treasury strategy involves disciplined acquisitions through mining operations, with a current Bitcoin holding valued at approximately $120 million [17][26] - The company is also developing KULR Vibe, a vibration mitigation technology for aviation, which is gaining traction in both civilian and government sectors [19][20] Q&A Session Summary Question: What is KULR's strategic priorities today as a Bitcoin treasury company with operations? - Management emphasized a focus on core energy management and storage business, alongside vibration reduction technologies, which are expected to drive revenue growth for 2026 [28] Question: What is the long-term strategy for the Bitcoin treasury and mining operations? - The strategy includes growing Bitcoin holdings through mining, which aligns with energy storage solutions, while maintaining a strong cash position to buffer against market volatility [29][30] Question: What outcomes have been achieved in terms of institutional participation and market perception since the reverse split? - Institutional ownership has more than doubled since the reverse split in June 2023, and management confirmed there is no basis for considering another reverse split [32] Question: Can management provide updates on partnerships and their contribution to revenue? - Management noted steady progress on partnerships across various sectors, emphasizing the importance of these engagements for long-term product integration [33][35] Question: How is management viewing changes in relation to revenue growth and stock price appreciation? - Management believes that revenue growth will lead to stock price appreciation, supported by a strong balance sheet and increasing market demand [44][46]

Financial Data and Key Metrics Changes - The third quarter revenue was $697,000, which included first-time staking rewards income of $342,000, marking a significant increase from the prior year period [25] - Cost of revenue decreased to $103,000 from $187,000 in the prior year, primarily due to reduced inventory reserve and production scrap expenses [25] - Total operating expenses for the third quarter were $36 million, compared to $3.9 million in the third quarter of 2024, resulting in a loss from operations of $35.4 million, up from a loss of $4.1 million in the prior year [26] - The net loss for the third quarter was $352.8 million, or a loss of $32.89 per share, compared to a net loss of $3.7 million in the prior year [27][28] Business Line Data and Key Metrics Changes - The company has increased its holdings of SOL by approximately 100,000 tokens in the first month of operation, totaling over 2.3 million tokens [15] - The average gross staking yield for October was 7.03% APY, outperforming the stake-weighted average of the top 10 largest validators [16] Market Data and Key Metrics Changes - Trading volume in HSDC has significantly outperformed the average of peer DATs, indicating growing awareness of Solana's fundamentals [10] - The company has been actively engaging with institutional investors and media, enhancing its visibility in traditional financial markets [8][9] Company Strategy and Development Direction - The company aims to build the "Berkshire Hathaway of the Solana ecosystem," focusing on maximizing shareholder value through disciplined execution of its digital asset treasury strategy [11] - The three pillars of execution include advocacy, capital markets, and treasury management, with a strong emphasis on promoting Solana as a compelling asset [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the digital asset treasury market has cooled after a period of rapid expansion, entering an execution and consolidation phase [13][14] - The company believes it has the necessary ingredients for long-term success, including balance sheet strength and institutional sponsorship [15] Other Important Information - The company successfully raised over $500 million to fund its digital asset treasury strategy in September [4] - The PONS device has shown positive clinical outcomes, supporting its submission for FDA 510(k) designation [22][23] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from investors [29]

Financial Data and Key Metrics Changes - KULR Technology Group reported approximately $6.9 million in revenue for Q3 2025, representing a 116% year-over-year growth and a 75% sequential increase from the previous quarter [4][23] - The company achieved a new trailing 12-month revenue record of $16.7 million, marking the fifth consecutive quarter of revenue growth compared to the prior year [23] - Product revenue grew by 112%, while services revenue declined by 74%, indicating a strategic shift towards a product-driven business model [23] Business Line Data and Key Metrics Changes - The transition from services to product revenue is evident, with product revenue more than doubling [4] - The launch of KULR One Air has resulted in over 150 battery SKUs, positioning the company in a rapidly growing market segment [5][11] Market Data and Key Metrics Changes - The UAV and drone battery market is projected to grow from approximately $1.5 billion in 2025 to over $2.4 billion by 2030, driven by increased adoption in various sectors [12] - KULR is expanding its KULR One platform into AI data centers and telecom infrastructure, tapping into some of the fastest-growing energy markets globally [5][14] Company Strategy and Development Direction - KULR aims to grow its energy storage and management business tenfold over the next three years, supported by a strong financial foundation and strategic investments [5] - The company plans to expand its Texas headquarters to over 100,000 sq ft and scale production significantly to meet rising demand [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a super growth cycle as demand surges for advanced energy storage solutions across core markets [8] - The company is well-positioned to capitalize on the increasing demand for high-performance energy systems, particularly in the context of AI and telecom infrastructure [9][10] Other Important Information - KULR holds approximately $120 million in Bitcoin, reflecting a disciplined approach to its digital asset strategy [26][34] - The company has no debt and a strong cash position, allowing it to navigate market volatility effectively [34] Q&A Session Summary Question: What is KULR's strategic priorities today as a Bitcoin treasury company with operations? - KULR's priorities are focused on its core energy management and storage business, alongside vibration reduction technologies, both of which are expected to drive strong revenue growth for 2026 [27] Question: What is the long-term strategy for the Bitcoin treasury and mining operations? - The company believes in a favorable long-term pricing outlook for Bitcoin and has shifted to growing its position through mining, which also aligns with its energy storage solutions [29] Question: What outcomes have been achieved in terms of institutional participation and market perception since the reverse split? - Since the reverse split in June 2023, institutional ownership has more than doubled, and there are no plans for another reverse split [30] Question: Can management provide updates on partnerships with government, military, aerospace, and corporate sectors? - KULR is making steady progress on partnerships, which involve multi-stage qualification and certification processes, and these engagements are crucial for establishing long-term pathways for product integration [31] Question: What concrete steps is management taking to stabilize the stock price? - The primary focus is on accelerating revenue growth in core markets, with significant traction in autonomous systems and energy storage solutions [33]

Financial Data and Key Metrics Changes - The third quarter revenue was $697,000, which included first-time staking rewards income of $342,000, marking a significant increase from the prior year period [25] - Cost of revenue decreased to $103,000 from $187,000 in the prior year, primarily due to reduced inventory reserve and production scrap expenses [25] - Total operating expenses for Q3 2025 were $36 million, compared to $3.9 million in Q3 2024, resulting in a loss from operations of $35.4 million, up from a loss of $4.1 million in the prior year [26] - The net loss for Q3 2025 was $352.8 million, or a loss of $32.89 per share, compared to a net loss of $3.7 million in the prior year [27][28] Business Line Data and Key Metrics Changes - The company has increased its holdings of SOL by approximately 100,000 tokens in the first month of operation, totaling over 2.3 million tokens [15] - The average gross staking yield for October was 7.03% APY, outperforming the stake-weighted average of the top 10 largest validators [16] Market Data and Key Metrics Changes - Trading volume in HSDC has significantly outperformed the average of peer DATs, indicating growing awareness of Solana's fundamentals [10] - The company has been actively engaging with institutional investors and has appeared in major media outlets, enhancing its visibility in the market [8] Company Strategy and Development Direction - The company aims to build the "Berkshire Hathaway of the Solana ecosystem," focusing on maximizing shareholder value through disciplined execution of its digital asset treasury strategy [11] - The strategic focus includes advocacy for Solana, capital markets management, and treasury management, with an emphasis on operational excellence and capital discipline [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a cooling digital asset treasury market but expressed confidence in the company's ability to navigate the execution and consolidation phase [12][14] - The company believes it has the necessary ingredients for long-term success, including balance sheet strength and institutional sponsorship [15] Other Important Information - The company successfully raised over $500 million to fund its digital asset treasury strategy in September 2025 [4] - The PONS device has shown positive clinical outcomes, supporting its submission for FDA 510(k) designation [22] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from investors [30]

Financial Data and Key Metrics Changes - The company reported record net income of $5.6 billion for Q3 2025, marking the highest level to date [4][18] - Shareholder equity increased by over $22 million from Q2 to Q3, driven by the retirement of debt and preferred shares [5][17] - The company retired $41 million of senior and seller debt and $27 million in preferred shares, enhancing its balance sheet significantly [5][17] Business Line Data and Key Metrics Changes - The company acquired a 10% override with the original seller group related to the Grayburg Jackson field, enhancing its operational capabilities [5] - A horizontal well drilling program is set to commence next year, with plans to drill up to 92 wells over the next five years [6][10] Market Data and Key Metrics Changes - Current production remains consistent above 1,000 gross barrels of oil per day across the Grayburg Jackson and South Justice fields [21] - The company anticipates initial production from new wells in the range of 300-500 barrels of oil per day per well [25] Company Strategy and Development Direction - The company aims to enhance shareholder value by focusing on increasing production and reducing operational costs [27][29] - Plans include a material acquisition in the first half of next year without taking on debt or diluting shares [28] - The company is exploring opportunities in energy supply for data centers and Bitcoin mining, indicating a strategic pivot towards innovative energy solutions [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather low oil prices due to a debt-free status and cost-saving measures [29] - The company expects to see increased production and improved financials through 2026, with a long-term outlook extending to 2030 [27][28] - Management is optimistic about the potential for future drilling and workover projects, emphasizing a robust inventory of opportunities [10][11] Other Important Information - The company has not had any reportable safety incidents since taking over operations in November 2023, highlighting a strong safety record [21] - The company is currently in the process of installing a two-mile injection pipeline to enhance production capabilities [22] Q&A Session Summary Question: What is the company's strategy regarding energy supply to data centers and AI mining? - Management acknowledged the potential in this area but indicated that they are still exploring proposals and do not have a concrete plan yet [34][35] Question: When is the first horizontal drilling expected to start? - The company anticipates that permitting will be submitted this year, with drilling potentially starting by the end of Q2 2026 [39][40] Question: What is the current status of the EON warrants? - Management clarified that there is only one expiration date for the warrants, which is five years from the public company date in November 2028 [41][49] Question: At what oil price does the company start making money? - The company indicated that it is currently operating at a slight loss but believes it can be profitable at current prices with better cost control [58][59] Question: What issues are being faced in selling gas? - The company is currently facing curtailment issues due to maintenance at the gas plant but expects these to be resolved soon [61][62] Question: Are there any requirements for Vertus to drill the first three wells? - The drilling of the first three wells is at Vertus's discretion, but management is confident they will proceed as long as oil prices remain favorable [63][64] Question: What is the dilution risk from current convertible notes? - Management indicated that the dilution risk is minimal, with only a small number of shares potentially affected by the conversion of notes [70]