Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $42.5 million, a slight increase from $42.2 million in the prior quarter, driven by a 2% year-over-year subscriber growth [5][20] - Adjusted EBITDA increased to $12.8 million with a margin of 30.2%, marking the third consecutive quarter with margins above 30% [6][23] - Recurring revenue constituted 92.6% of total revenue, indicating a stable SaaS business model [6][20] - Total operating expenses decreased by 9% year-over-year, from $39.2 million to $35.6 million, contributing to improved profitability [19][22] Business Line Data and Key Metrics Changes - The company reported a year-over-year reduction in operating expenses while driving high-margin subscriber revenue [8][19] - The Personal Cloud version 25.5 was released, enhancing user experience with new AI features [9][10] Market Data and Key Metrics Changes - Subscriber growth was particularly strong with AT&T, driven by improved digital onboarding processes [12] - Verizon's retail activations are growing, contributing to overall subscriber growth [13] - The U.S. mobile market for value-added services is estimated to grow at least 10% annually, positioning the company to capitalize on this trend [15][16] Company Strategy and Development Direction - The company is focused on enhancing its product offerings and exploring adjacent products and verticals to create greater shareholder value [8] - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in signing at least one new customer in 2025, with ongoing discussions with various prospects [17][32] - The macroeconomic environment presents uncertainties, but the company remains optimistic about its growth trajectory [14][15] Other Important Information - The company received a total of $33.9 million in CARES Act tax refunds, which allowed for a significant debt reduction and improved financial flexibility [6][18] - The company validated its privacy framework under the EU-US data privacy framework, enhancing trust with telecom operators [11] Q&A Session Summary Question: Will the foreign exchange losses continue? - Management indicated that the foreign exchange losses are tied to the strength of the dollar and are difficult to predict, but they expect some level of performance in the future [29][30] Question: Is the debt restructuring complete? - Management confirmed that the major impact of debt costs is primarily behind them, although some expenses will flow through in the upcoming quarters [31] Question: What type of new customers are expected? - Management is in discussions with a variety of prospects, including those similar in scale to AT&T and smaller customers across different geographies [32][33] Question: Is a stronger second half expected? - Management confirmed that guidance implies a stronger second half of the year [34]

Financial Data and Key Metrics Changes - The company reported a 48% increase in revenue year-over-year, reaching $33.2 million in Q2 2025, up from $22.5 million in the prior year period [6][30] - Operating EBITDA grew by 71% year-over-year to $24.6 million, compared to $14.4 million in the prior year [6][33] - Core operating expenses totaled $17.2 million, down 19% from $21.2 million in the prior year [6][31] - The net loss attributable to stockholders was $3 million, an improvement from a loss of $8.6 million in the prior year [31] Business Line Data and Key Metrics Changes - The company’s operating expenses, including SG&A and O&M, decreased significantly, with O&M expenses dropping 52% year-over-year to $2.1 million [31][32] - The NJR acquisition contributed to increased lease revenues and SREC revenues, driving overall financial performance [30][33] Market Data and Key Metrics Changes - The company manages approximately 85,000 home solar assets and customer contracts, with significant room for growth in the residential solar market despite recent policy changes [10][12] - The U.S. solar market has over 5 million installations, with 97% on residential rooftops, indicating a large addressable market for the company [11] Company Strategy and Development Direction - The company aims to achieve positive free cash flow through growth in solar installations and cost containment [7] - A multi-pronged strategy includes opportunistic M&A, programmatic off-take partnerships, and expanding the Spruce Pro servicing business [14][18] - The company is focused on maximizing the value of existing solar assets through operational efficiencies and superior asset management [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the residential solar sector due to policy changes but emphasized the company's resilient business model [8][9] - The company expects an accelerated shift toward leases and PPAs, driven by rising utility rates and increasing power demand [14][13] - Management is confident in the ability to identify and execute new agreements that add shareholder value despite market uncertainties [23] Other Important Information - The company successfully launched a new CRM platform to enhance customer interactions and operational efficiency [25] - Total cash at the end of Q2 2025 was approximately $90.5 million, with $53.5 million being unrestricted [36] Q&A Session Summary - There were no questions during the Q2 2025 earnings call, and the session concluded without further inquiries [38]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $32.5 million, a decrease of $7.3 million year over year, primarily due to disruptions in Army programs [23] - Gross margin for the second quarter was 25%, down from 27.8% in the comparable period [24] - The net loss for the second quarter was $228.6 million, driven by changes in the fair value of derivatives and a goodwill impairment charge [24] - Adjusted EBITDA for the second quarter was negative $8.5 million, compared to negative $3.7 million in the prior year [25] - The company ended the quarter with $391 million in cash, marking an all-time record, and a net positive cash position of almost $250 million [21][22] Business Line Data and Key Metrics Changes - The biometric solution Veriskan has become a market standard for enhanced passenger processing, with expanded deployments across 12 airports and seaports in North America [16] - The company is preparing to support multiple critical IT systems at Customs and Border Protection (CBP) as the agency pursues several acquisitions [17] - The autonomous command and control software, ConductorOS, performed well during the Talisman Sabre exercise, enhancing battlefield decision-making [17] Market Data and Key Metrics Changes - The U.S. and allies have committed to unprecedented partnerships in AI, including a $1.4 trillion investment with the UAE [12] - The "one big beautiful bill" (OB3) includes $170 billion in supplemental funding for the Department of Homeland Security (DHS) over the next four years, with $70 billion earmarked for CBP [13] - Federal procurement for AI/ML-enabled mission systems is estimated to grow by approximately 10% to 15% year over year [15] Company Strategy and Development Direction - The company aims to capitalize on significant market tailwinds and has a clear strategy to go on offense, focusing on organic growth and targeted acquisitions [27][30] - Investments will be made to enhance marketing efforts and attract top-tier talent from the tech and national security sectors [28] - The company is pursuing strategic transformational acquisitions to accelerate scale and unlock new markets [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disruptions in federal contracts but emphasized the importance of adapting to streamline data layers and enhance software delivery [9] - The company is confident in its mid-term outlook due to historic funding levels focused on areas where it has leading capabilities [10] - Management is committed to building the business for the long term, focusing on future growth prospects rather than short-term quarterly results [11] Other Important Information - The company raised approximately $293 million through the sale of shares, demonstrating strong market execution [22] - The company plans to withdraw its adjusted EBITDA guidance due to a reduction in revenue outlook and increased investment spending [26] Q&A Session Summary Question: What is the company's outlook on federal contracts? - Management noted disruptions in Army programs but expressed confidence in competing for new contracts and adapting to changes in government technology investment [9] Question: How does the company plan to utilize its strong cash position? - The company plans to aggressively invest in growth initiatives, both organically and through acquisitions, leveraging its record cash position [21][27]

Financial Data and Key Metrics Changes - Cash and cash equivalents and marketable securities totaled $624.8 million as of June 30, 2025, compared to $754.4 million as of December 31, 2024, indicating a decrease in liquidity [28] - The company anticipates having sufficient cash to fund operations into 2027 based on current operating plans [28] Business Line Data and Key Metrics Changes - The Phase III clinical trial for EZETUCALIMER, EXTOL-two, has completed patient recruitment, with top-line results expected in early 2026 [6][12] - The company is expanding its product portfolio through earlier stage ion channel programs, including KV7 and NAV1.7 [21][23] Market Data and Key Metrics Changes - The company is focusing on the U.S. market for the commercialization of EZETUCALIMER for focal onset seizures [4] - There is significant potential for EZETUCALIMER beyond epilepsy, with initial focus on major depressive disorder (MDD) and bipolar depression [10][17] Company Strategy and Development Direction - The company aims to drive towards Phase III data, NDA submission, and commercialization of EZETUCALIMER [4] - There is a strategic focus on broadening the ASETE COLENDAR opportunity across additional epilepsy and neuropsychiatric indications [5] - The company is also investing in its early-stage pipeline targeting ion channels, which includes multiple promising drug candidates [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of EZETUCALIMER to provide a new treatment option for epilepsy, highlighting its differentiated product profile [6][9] - The management team is excited about the upcoming data readouts and the potential for additional indications in neuropsychiatry [20][35] Other Important Information - The company has welcomed Darren Klein as the Chief Commercial Officer to lead the commercial strategy for EZETUCALIMER [29][32] - The company plans to present data at the upcoming International Epilepsy Congress and the American Epilepsy Society [13][14] Q&A Session Summary Question: How quickly do you think they'll be able to file on the back of that top-line FOS data? - Management indicated that they expect approximately six months from top-line data to filing the NDA [40] Question: Can you talk about your confidence regarding safety issues in the NAV1.7 program? - Management believes they have a good handle on safety based on preclinical data and have not seen cardiovascular signals in preclinical safety data [41] Question: When would you expect all the patients to be randomized for EXTOL-two? - Management confirmed that the last patients will go through a baseline period, and they will provide updates as the study progresses [47] Question: Have you seen any compassionate use interest? - Management noted there is significant interest in the mechanism, but currently, there is no compassionate use program in place [53] Question: Can you talk about the molecules profile for NAV1.7? - Management stated that they will provide more information on pharmacokinetics and bioavailability as they progress through the first cohorts in humans [70] Question: How do you see the potential read-through from Biohaven's pending MDD readout? - Management expressed confidence in their mechanism for MDD and is looking forward to seeing Biohaven's data [96] Question: What are the key headwinds you anticipate upon approval and launch? - Management acknowledged the need to overcome inertia among neurologists and epileptologists who are set in their ways [100] Question: Can you provide some color on the difference between Type I and Type II bipolar depression? - Management confirmed that the bipolar depression studies will include a mixture of Type I and Type II patients, with stratification to avoid imbalances [105]

Financial Data and Key Metrics Changes - The company ended the quarter with $127 million in cash, cash equivalents, and restricted cash [12] - Combined operating revenue, interest, and investment income for the second quarter was $44.7 million, with income from operations at $5.8 million and non-GAAP adjusted EBITDA at $17.3 million [12][14] - For the first six months of 2025, net income grew by $20 million and non-GAAP adjusted EBITDA increased by $32 million compared to the same period last year [14] Business Line Data and Key Metrics Changes - Gevo North Dakota generated income from operations of $17.1 million and non-GAAP adjusted EBITDA of $24.2 million [13] - Gevo RNG generated income from operations of $1.5 million and non-GAAP adjusted EBITDA of $2.6 million [13] - The company sold $22 million worth of clean fuel production credits in the second quarter, contributing to the financial results [14][20] Market Data and Key Metrics Changes - U.S. jet fuel demand is projected to increase by 2.3 billion gallons per year over the next decade, while new refinery construction is not occurring [8][28] - The marketplace for carbon dioxide removal credits has exceeded $10 billion in recent years, reflecting nearly 40 million tons of CO2 removals [19] Company Strategy and Development Direction - The company is focused on deploying renewable resource-based jet fuel plants while improving profitability through existing operations [6][11] - The strategy includes leveraging current assets to enhance carbon credit sales and tax credit sales [11] - The company is translating its ATJ 60 plant design to a more cost-effective ATJ 30 design for deployment at the North Dakota site [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for significant growth in the renewable jet fuel market [6][28] - The company aims to achieve a low carbon footprint while maintaining competitive production costs [8][11] - Management highlighted the importance of carbon credit sales as a co-product to enhance overall profitability [11][18] Other Important Information - The company has developed a software platform, Verity, for traceability and compliance reporting in the agriculture and renewable fuels sector [21][22] - The GIVO North Dakota facility has a total estimated sequestration capacity of up to 1 million metric tons of CO2 per year [19] Q&A Session Summary Question: What is holding back the monetization of biogas credits? - Management explained that the monetization of clean fuel production tax credits for ethanol has been successful, and they expect similar success for biogas credits in the future [34][36] Question: Can we expect a similar cadence for the RNG business? - Management confirmed that the transaction structure for monetizing tax credits for the RNG facility is similar to that of the ethanol facility [37] Question: Is the $10 million benefit per quarter from CFPC a base case? - Management indicated that the $10 million figure is conservative, and they expect to exceed this amount based on production levels [40][42] Question: How will the company achieve $30 million in CDR sales? - Management stated that growth in CDR sales will come from increased capacity utilization and market development [43][45] Question: How does the 45Z tax credit affect capital allocation in North Dakota? - Management noted that while the 45Z tax credit is beneficial, it does not significantly influence their capital allocation strategy for ATJ projects [58][60] Question: How many customers does Verity currently have? - Management reported that Verity has agreements with five ethanol customers and expects significant growth in this area [66][68] Question: What is the market opportunity for accommodating third-party volumes in CCS? - Management highlighted the potential for third-party CO2 volumes and the flexibility of their North Dakota site to accommodate additional capacity [90][92]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 26% year over year to $20.2 million, with OviTex revenue growing by 12% and OviTex PRS revenue growing by 53% [28] - Gross margin improved to 69.8% from 68.8% in the prior year, primarily due to lower charges for excess and obsolete inventory [28] - Net loss decreased to $9.9 million from $12.6 million in the prior year [30] Business Line Data and Key Metrics Changes - OviTex unit sales grew by 17% for the quarter, while PRS unit sales grew by 40% [28] - OviTex IHR revenue grew by 322% compared to 2024 and 29% sequentially over Q1 sales [9] - Liquefix revenue saw year-over-year growth of 121% this quarter [8] Market Data and Key Metrics Changes - European sales grew by 25% over Q2 last year, driven by 29% unit growth [10] - Contracts secured with three major national GPOs to improve market access for Liquefix [8] Company Strategy and Development Direction - The company aims to transition from a niche player in complex abdominal wall reconstruction to a broad portfolio provider in hernia repair [60] - A focus on building patient and outcome-centric partnerships with healthcare providers is emphasized [16] - The company is launching educational initiatives targeting teaching hospitals to engage the next generation of surgeons [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company and the impact of recent organizational changes on sales performance [33] - The company reiterated its full-year 2025 revenue guidance, anticipating revenue in the range of $85 million to $88 million, representing growth of 23% to 27% over 2024 [30] Other Important Information - The company plans to share a patient case each quarter to highlight the real-world performance of the OviTex platform [31] - Recent publications and presentations have underscored the clinical utility of OviTex products [14] Q&A Session Summary Question: Update on Salesforce headcount and expectations for 2025 - The company has 69 territory managers and 25 account specialists, with plans to reach 76 territory managers [37][39] Question: Update on guidance and revenue cadence - The revenue cadence is expected to follow historical patterns, with a heavier second half compared to the first half [41][42] Question: Details on spending and patient-centric culture - The company is revising travel and expense policies and focusing on recruiting the right hires to enhance patient-centric culture [46][49] Question: Performance of reinforced tissue matrix contracts - Approximately 25 contracts are in place, with positive reception and a focus on patient-centric approaches to transcend existing pricing structures [51][52] Question: Confidence in reiterating sales guidance - Confidence stems from historical performance and the productivity of the sales team, with expectations for increased activity in Q4 [70][72]

Financial Data and Key Metrics Changes - The company reported revenue of $26 million for Q2 2025, representing a 16% year-over-year growth driven by increased product adoption [4][17] - Total swap volume for the quarter reached $1.38 billion, supported by renewed market activity [17] - Monthly active users declined by 6% sequentially, remaining unchanged from the previous year [22] Business Line Data and Key Metrics Changes - Exchange aggregation accounted for 91% of total revenue, with ExoSwap contributing 10% of revenue and 15% of quarterly volume [17] - ExoPay, launched in May, allows customers to buy crypto directly within the Exodus mobile wallet, supporting major cryptocurrencies [7][8] Market Data and Key Metrics Changes - Bitcoin prices increased by 30%, Ethereum by 36%, and Solana by 24% during the quarter, contributing to business momentum [9] - The adoption of stablecoins is accelerating globally, with over $250 billion issued and a forecast of $1.5 trillion by 2030 [13] Company Strategy and Development Direction - The company aims to bridge today's financial needs with future digital sovereignty, focusing on scaling wallet adoption and expanding access to both dollars and Bitcoin [26] - Partnerships, such as the recent integration with MetaMask, are seen as key to driving growth and enhancing user experience [6][28] Management's Comments on Operating Environment and Future Outlook - The regulatory environment in the U.S. has improved, with the passage of the Genius Act, which provides clearer definitions for digital assets [10] - Management expressed optimism about future growth, emphasizing the importance of innovation and seamless user experiences [16][26] Other Important Information - The company held $291 million in digital and liquid assets as of June 30, maintaining a debt-free position and increasing Bitcoin holdings to 2,058 [25] - Marketing and event spending reached $7.3 million, driven by sponsorships and increased advertising [19] Q&A Session Summary Question: Can you discuss the benefits and opportunities of the MetaMask deal? - The partnership allows Exodus to provide technology to MetaMask's millions of customers, enhancing their user experience with cross-chain swaps [30][32] Question: What are the economics behind the MetaMask deal? - Specific details cannot be disclosed, but the deal is expected to be significant given MetaMask's size and unique position in the market [34][36] Question: Can you elaborate on the mix shelf filed in May? - The mix shelf is intended to keep options open for future capital needs, allowing for a more deliberate approach to potential opportunities [42][44] Question: What is the strategy for customer acquisition and wallet growth? - Short-term growth will focus on partnerships, while long-term strategies will enhance existing products and attract new customers [69][70] Question: How will ExoSwap integrate with the MetaMask app? - The integration will likely provide a seamless experience for users to swap assets, similar to existing functionalities in other wallets [72][73]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $71.1 million, down from $76.2 million, a decrease of $5 million primarily due to the divestiture of underperforming Bombshells locations [10] - Net income attributable to common shareholders was $4.1 million compared to a loss of $5.2 million, a difference of $9.3 million [11] - GAAP EPS was $0.46 per share compared to a loss of $0.56 per share [12] - Adjusted EBITDA was $15.3 million compared to $20.1 million, reflecting lower margins in nightclubs and Bombshells [12] Business Line Data and Key Metrics Changes - Nightclub revenues totaled $62.3 million, down less than 1% year over year, with a 3.7% decline in same-store sales [13] - Bombshells revenues were $8.6 million, a decrease of $4.5 million, impacted by the sale of five underperforming locations and a 13.5% decline in same-store sales [15] - Operating income for nightclubs was $17.8 million with a margin of 28.5%, while Bombshells reported an operating income of $87,000 with a margin of 1% [14][16] Market Data and Key Metrics Changes - The company ended the quarter with cash and cash equivalents of $29.3 million, having used $5.25 million for acquisitions and $3 million for share buybacks [18] - Debt at June 30 was slightly reduced to $201,000 from March, with an average weighted interest rate of 6.68% compared to 6.74% a year ago [19] Company Strategy and Development Direction - The company aims to allocate 40% of free cash flow to club acquisitions and 60% to share buybacks, debt reduction, and dividends, targeting a 10% to 15% annual growth in free cash flow per share [22] - The focus remains on improving same-store sales and operational efficiency in the nightclub segment while completing the development of remaining Bombshells locations [24] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty related to tariffs and tax policies has affected customer spending but expressed optimism about future performance as new money enters the market [50] - The company anticipates that as new locations generate revenue, occupancy costs and debt metrics should improve [20] Other Important Information - The company has reduced its outstanding shares by approximately 15.5% over the past ten years, from about 10.3 million to 8.7 million [26] - The company is not interested in sale-leaseback arrangements for its real estate, preferring to maintain ownership for operational flexibility [94] Q&A Session Summary Question: How much nonperforming real estate could be sold? - Management estimated the value of nonperforming real estate at about $28 million, with ongoing negotiations for some properties [30] Question: How much of the proceeds from real estate sales would go to debt repayment? - Approximately 40-45% of proceeds would go to cash, with the remainder servicing debt [32] Question: What is the expected reserve for self-insurance going forward? - Year-to-date, the reserve is $9.4 million, but future amounts are uncertain due to the nature of claims [34] Question: Who are the competitors in the acquisition space? - The company competes with various operators and private equity groups but is seen as a preferred acquirer due to its cash availability [44] Question: Is there an uptick in activity due to tax policy changes? - Management believes companies are starting to make major purchases before year-end due to recent tax changes [49] Question: What is the burden of startup costs on EBITDA? - Startup costs typically range from $400,000 to $500,000 per unit, impacting EBITDA during the preopening phase [84]

Financial Data and Key Metrics Changes - Net sales increased by 10.9% to a record $188.4 million for Q1 2026 compared to $169.9 million in the prior year [17][18] - Gross profit rose by 16.3% to a record $33.9 million from $29.2 million a year earlier, with gross margin improving to 18% from 17.2% [19][20] - Operating income increased to $20.1 million from an operating loss of $6.5 million in the prior year, reflecting a 153.6% increase when excluding non-cash foreign exchange impacts [20][21] - Net income for Q1 2026 was $3 million or $0.15 per diluted share, compared to a net loss of $18.1 million or $0.92 per share in the prior year [22] Business Line Data and Key Metrics Changes - The hard parts business, particularly rotating electrical products, continues to perform well, contributing to overall sales growth [7][10] - Brake offerings, including brake calipers, are gaining market share and are expected to enhance operating efficiency and margins [9][10] - The diagnostic business, led by the JBT-one benchtop tester, is growing, with additional service-related revenue anticipated as more testers are deployed [12] Market Data and Key Metrics Changes - The average age of U.S. light vehicles has increased to 12.8 years, leading to more replacement opportunities for aftermarket parts [8] - The number of vehicles on the road rose to 293.5 million from 289 million a year ago, indicating a growing market for replacement parts [8] Company Strategy and Development Direction - The company is focused on continuous improvement and leveraging its North American operational and distribution footprint to drive growth [6][10] - There is a strategic emphasis on reducing dependence on the Chinese supply chain and enhancing operational efficiencies [12][13] - The company aims to grow sales of existing product lines while improving operational efficiencies to enhance margins and mitigate tariff impacts [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for fiscal 2026, citing strong sales growth and favorable industry dynamics for non-discretionary aftermarket parts [14][41] - The company anticipates continued organic growth supported by favorable industry tailwinds and increased demand for aftermarket parts in Mexico [14][23] - Management highlighted the importance of maintaining strong liquidity and low leverage to enhance shareholder value [42] Other Important Information - The company generated $10 million in cash from operating activities during Q1 2026, a significant improvement from a cash use of $20.8 million in the prior year [23] - Net bank debt decreased by $7 million to $74.4 million, reflecting ongoing efforts to reduce debt [23] Q&A Session Summary Question: Impact of tariffs this quarter compared to last quarter - Management noted a smaller impact from tariffs this quarter, with a $1.4 million impact compared to $4.6 million in the previous quarter [28][29] Question: Assumptions made for full year guidance regarding tariffs - Management indicated that while they raised sales guidance, they are not disclosing specific details on tariff pass-throughs due to confidentiality [30][31] Question: Major growth opportunities in rotating electric and braking businesses - Management highlighted significant growth potential in the professional installer market and emphasized opportunities for market share growth in brake-related products [34][36]

Financial Data and Key Metrics Changes - Average production increased by 3% to 3,220 BOE per day compared to 3,128 in the prior year quarter, attributed to wells drilled and completed in the last six months of 2024 [7] - Net revenue decreased by 22% to $10.8 million compared to the prior year quarter due to a 24% decrease in average prices and lower oil production from shut-in wells [8] - Adjusted EBITDA was $7.7 million, a decrease of 23% from $10 million in the prior year quarter, primarily due to lower prices [8] - Net income was $2.9 million with basic EPS of $0.08 per share, down from $4.1 million or $0.11 per share in the prior year quarter [9] - Year-to-date average production increased by 13% to 3,646 BOE per day compared to 3,216 in the prior year period [10] - Year-to-date net income was $8.6 million with basic EPS of $0.24 per share, up from $7.4 million and $0.21 per share in the prior year period [10] Business Line Data and Key Metrics Changes - Production from the field was strong, with over 3,200 BOE per day despite temporarily shutting in about 540 BOE per day for well completions [5] - Operating expenses remained low at approximately $7.15 per BOE [5] - The company brought on four Lovina wells with high oil percentages, which are still cleaning up fracture stimulation fluid [5] Market Data and Key Metrics Changes - The company experienced a 24% decrease in average prices, impacting net revenue significantly [8] - The net back from operations decreased to $29.66 per BOE compared to $40.40 in the prior year quarter due to lower average prices [9] Company Strategy and Development Direction - The company plans to bring on nine new wells in the second half of the year, anticipating significant increases in production and cash flow [12] - There is an ongoing strategy to return capital to shareholders through share buybacks, with approximately 130,000 shares purchased in July [14] - The company aims to continue building and growing value for shareholders while actively participating in conferences and presentations to enhance visibility [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate good returns even in a $60 oil price environment, indicating a commitment to proceed with drilling plans [17][18] - The management is optimistic about the performance of the new wells and their impact on cash flow, especially following the completion of the last wells in December 2024 [13] Other Important Information - The company's credit facility was redetermined, increasing the borrowing base by 30% from $50 million to $65 million, providing more flexibility in managing working capital [11] Q&A Session Summary Question: Thoughts on original production guidance for the year given the timing of the Laveena wells - Management will monitor production and adjust guidance if necessary, depending on well performance and price conditions [16] Question: Any changes to near-term capital allocation plans due to oil price environment - Currently, the company plans to proceed with drilling as the economics of the wells remain favorable, but they have the option to delay completions if prices drop significantly [17][18] Question: Insights on the higher liquids content from the Laveena wells - The higher liquids content was encouraging and slightly better than anticipated, which may influence future drilling and completion strategies [19][21] Question: Status on the Fortis and East Side acreage - It is too early to provide insights, but initial completions went well, and the company is awaiting flowback results [23]