Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [12] - Gross margins in Q3 2025 were 21%, compared to 51% in Q3 2024, due to revenue composition and pricing variability [12][13] - Operating loss for Q3 2025 was $20.5 million, compared to $17.3 million in the prior year [14] - GAAP net loss for Q3 2025 was higher than in Q3 2024, primarily due to non-cash changes in fair value of derivative liabilities [15] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt [15] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [6][7] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was announced to advance superconducting quantum networking [8] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue [12] - The company is engaged with various academic and government institutions to advance quantum computing capabilities [9][10] Company Strategy and Development Direction - The company plans to deliver a 100+ qubit chiplet-based quantum system by the end of 2025, with a roadmap to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027 [5][6] - The company is focusing on public-private partnerships to advance quantum technologies [9] - The company intends to open an Italian subsidiary to pursue business opportunities in the region [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales driven by recent contracts and collaborations, despite current revenue challenges [12][15] - The company is focused on achieving quantum advantage within the next three to five years, targeting 1,000 qubits with 99.9% fidelity [18][22] - Management is optimistic about potential funding increases for quantum initiatives from the U.S. government [88][89] Other Important Information - The company is exploring options for a new chip fab facility to enhance capabilities beyond the current 150 mm fab [63][66] - The potential investment for a new quantum fab could be in the hundreds of millions of dollars, significantly less than a traditional CMOS fab [66] Q&A Session Summary Question: Can you talk about DARPA phase B and the feedback received? - Management noted that while not selected for phase B, constructive feedback was received, focusing on error correction and long-range coupling [17][18] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management expressed confidence in achieving 99.7% fidelity at 150+ qubits by 2026 and 99.8% at 1,000 qubits by 2027 [22][23] Question: Will the 1,000-qubit system be chiplet-based? - The plan is to use 36-qubit chiplets for the 1,000-qubit system, with no significant challenges anticipated for long-range coupling [28][30] Question: How will revenue recognition work for the Novera sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [32] Question: What is the expected gross margin profile moving forward? - Management indicated that margins may improve with upcoming sales, particularly from Novera systems [71] Question: What types of applications will the 1,000-qubit system run? - The system is expected to handle complex applications like drug discovery and financial forecasting, which current CPUs and GPUs struggle with [76][77] Question: How does the recent funding from the Energy Department affect the business? - The reinstatement of the National Quantum Initiative funding is seen as a positive step, although discussions for higher funding amounts are ongoing [88][89]

Financial Data and Key Metrics Changes - Total consolidated revenues for Q3 2025 were $45.1 million, reflecting a 1% year-over-year increase compared to pro forma Q3 2024 [24] - Third-quarter net loss attributable to common stockholders was $33.2 million, a year-over-year decline of approximately $700,000 or 2%, with a net loss per share of $2.61, improving by $3.28 per share or 56% compared to Q3 2024 [31] - Non-GAAP adjusted net loss attributable to common stockholders for Q3 was $7.2 million, representing an improvement of around $18 million or 71% versus the comparable period in 2024 [32] Business Line Data and Key Metrics Changes - Hospitality revenues declined 4% year-over-year in Q3, primarily due to lower revenues at the Tin Building and softness in certain legacy standalone restaurants [25] - Same-store hospitality revenue rose 11%, driven by the success of the Long Club and the strong launch of Dutano [25] - Entertainment segment revenues decreased 5% year-over-year, primarily due to hosting seven fewer concerts at the Rooftop at Pier 17 compared to the prior year [26] Market Data and Key Metrics Changes - International visitation to New York City remains below pre-pandemic levels, currently at about 90% of 2019 volume, while domestic travel remains resilient [6][7] - Total New York City visitation is projected to reach almost 65 million visitors in 2025, surpassing 2024 levels and approaching pre-pandemic visitation levels [7] Company Strategy and Development Direction - The company aims to refine its focus and priorities to stabilize and optimize operating models, emphasizing financial discipline and thoughtful capital deployment [4] - Plans include further reinvestment into existing assets to fill vacancies and improve space utilization, while also seeking opportunities to create long-term value through partnerships in real estate-driven hospitality and entertainment [5] - The company is committed to enhancing the Seaport as a cultural and experiential destination, leveraging events to drive foot traffic and awareness [45][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the mixed picture of the New York City market, with a focus on curating high-quality experiences to drive visitation and customer spending [10] - The company remains optimistic about the performance of new concepts and events, which are expected to enhance the overall guest experience and drive incremental spending [16][18] - Management plans to outline a go-forward strategy for the Tin Building in the next earnings call, indicating a focus on improving operational efficiency [53] Other Important Information - The sale of 250 Water Street is expected to positively impact historical cash burn by more than $7 million, eliminating interest expenses and related carrying costs [10] - The company has completed technology initiatives to centralize point-of-sale and procurement systems across hospitality businesses, enhancing purchasing power and financial visibility [14] Q&A Session Summary Question: What are the biggest levers to drive profitability? - Management highlighted the importance of getting tenants open and operational, focusing on operational models, and creating efficiencies in G&A to achieve break-even and profitability [37] Question: Can you discuss the demand for prospective spaces? - Management noted strong demand for restaurant space and is focusing on finding the right partners and experiences for the community [38][39] Question: What is the expected timing for tenant openings? - Management anticipates increased velocity in tenant openings in the back half of the year, with specific timelines for various tenants [40][41] Question: How will special events drive exposure and awareness? - Management emphasized that events like the Macy's Wine and Food Festival are crucial for marketing and pulling visitors to the Seaport, enhancing its position as a cultural destination [43][44] Question: Will the restructuring with Jean-Georges lead to break-even in 2026? - Management stated that they are not in a position to provide forward guidance on the Tin Building's performance in 2026 but are focused on outlining plans in the next earnings call [52][53] Question: What are the expectations for capital expenditures in Q4? - Management indicated that capital expenditures for Q4 will likely be light, with a ramp-up expected in the first half of 2026 [59]

Summary of Sierra Madre Gold and Silver Conference Call Company Overview - **Company**: Sierra Madre Gold and Silver (OTCPK:SMDR.F) - **Industry**: Mining, specifically silver and gold production - **Location**: Mexico - **Current Production**: Producing silver from La Guitarra mine, with quarterly production between 150,000 and 190,000 ounces since Q4 2024 [1][2] Key Highlights - **Production Achievement**: Successfully put the mine into production on time and on budget, marking a significant milestone for the company [2][6] - **Investor Support**: Welcomed notable investors including Eric Sprott and Fidelity, enhancing the company's financial backing [2] - **Expansion Plans**: Aiming to triple production over the next two years, with plans to increase production capacity from 500 tons per day to 1,500 tons per day [7][9] Financial Performance - **Revenue and Profit**: Generated $5 million in revenue and approximately $1.2 million in net profit in Q2, prior to a surge in silver prices [6] - **Production Costs**: Targeting production costs below $22 per ounce, with potential margins of around $30 per ounce if silver prices remain at $50 [8] Resource and Exploration - **Silver Resource**: Currently holds a resource of 50 million ounces of silver, with plans for 25,000 meters of drilling to increase this resource [5][11] - **Historic Mines**: The company operates in a historically significant silver and gold district with nine historic mines, including the recently opened Coloso and Nazareno mines [4][5] Future Projects - **El Rincón Mine**: Plans to drill at El Rincón, which historically produced silver at 800 grams per ton and gold at 6.5 grams per ton [9][10] - **Tepic Project**: A second project with a resource of about 10 million ounces of silver, but currently not the main focus due to the need for permits [11][14] Management and Ownership - **Management Team**: Includes experienced individuals with a history of successful mine operations in Mexico [3][4] - **Ownership Structure**: Management and founders retain 21% ownership, indicating strong alignment with long-term investor interests [12][13] Market Position - **Valuation**: The company is considered undervalued, with a market cap below CAD 200 million, presenting a potential investment opportunity [12][18] - **Investor Sentiment**: Despite recent market fluctuations, the company is viewed as a good entry point for investors [17][18] Additional Notes - **Permitting Status**: La Guitarra is fully permitted for underground operations, while Tepic requires further permitting [14] - **Support from First Majestic**: First Majestic has been supportive, providing loans and not selling shares on the market, which is seen as a positive for future capital [16][17]

Summary of Arcutis Biotherapeutics FY Conference Call Company Overview - **Company**: Arcutis Biotherapeutics (NasdaqGS:ARQT) - **Focus**: Development and commercialization of dermatological therapies, particularly advanced topical treatments Industry Insights - **Market Dynamics**: The topical dermatology market has been historically dominated by topical steroids, which have been the standard of care for inflammatory skin conditions for over 70 years. Despite advancements in biologics and systemic therapies, topicals remain prevalent due to their effectiveness and cost-effectiveness [3][4][5] - **Market Shift**: There is a growing recognition among dermatologists regarding the safety issues associated with topical steroids, leading to a shift towards advanced topical therapies like Zoryve. This shift is expected to continue as more dermatologists become aware of the risks associated with steroids [4][5] Key Product Insights - **Zoryve**: - Zoryve has seen a dramatic increase in usage, with a 50% growth in volume year-over-year [5] - The company projects a market share of 15-20% for Zoryve, which is considered achievable [5] - Zoryve has high-quality coverage, with about 80% of patients having access through a single step, typically a generic steroid [9] - The product is positioned well in Medicaid, with over half of recipients having access without significant barriers [9] Financial Performance - **Quarterly Growth**: The third quarter reported a 22% growth quarter-over-quarter, with 13% attributed to volume and 9% to price adjustments [15] - **Cash Flow Breakeven**: The company expects to achieve cash flow breakeven starting in Q4 2025, with a focus on reinvesting in Zoryve and its lifecycle management [21] Future Opportunities - **Pediatric Market**: Recent approvals for pediatric indications (ages 2-5) present a significant market opportunity, as a large percentage of atopic dermatitis sufferers are children [11][12] - **Research and Development**: Arcutis is exploring new indications for Zoryve, including studies in nail psoriasis and vitiligo, based on positive clinician feedback [25][26] - **Pipeline Expansion**: The company is also pursuing a biologic (CD200R) for atopic dermatitis, addressing unmet needs in systemic therapies [27][28] Strategic Considerations - **Pricing Strategy**: Arcutis adopted a lower pricing strategy compared to competitors to enhance market access and minimize patient copays, particularly in the Medicare and Medicaid spaces [8][9] - **Business Development**: The company is focused on in-licensing molecules with large markets and high unmet needs, avoiding high-risk drug discovery [30][32] Intellectual Property - **Patent Portfolio**: Arcutis holds 23 issued U.S. patents covering Zoryve formulations, with protection extending through 2037 and beyond for specific formulations [41][42] Conclusion - Arcutis Biotherapeutics is positioned to capitalize on the ongoing shift in the dermatology market towards advanced topical therapies, with a strong product pipeline and strategic focus on market access and pediatric opportunities. The company aims to sustain growth while achieving cash flow breakeven and exploring new indications for its products.

Financial Data and Key Metrics Changes - The company reported record results in Q3, with adjusted EBITDA of $20.8 million, up approximately 15% year-over-year and 6% sequentially [6][14] - Total rental revenue grew 11.1% year-over-year and 4.9% sequentially to $41.5 million, driven by a 27,000 horsepower increase [14] - Net income was $5.8 million or $0.46 per diluted share, an increase of $800,000 year-over-year and $600,000 sequentially [14] - The leverage ratio was 2.5 times, up from 2.31 times in the previous quarter, remaining the lowest among public compression peers [16] Business Line Data and Key Metrics Changes - Rented horsepower ended the quarter at approximately 526,000, an 11% increase year-over-year and 5% sequentially [15] - Fleet utilization reached a record 84.1%, up 204 basis points year-over-year and 45 basis points sequentially [15] - Rental adjusted gross margin was $25.5 million, up $2.6 million year-over-year and $1.5 million sequentially, with a margin percentage of 61.5% [14] Market Data and Key Metrics Changes - The company is taking market share in large horsepower compression, with all new sets under long-term contracts [5] - Devon Energy now represents more than 10% of year-to-date revenue, indicating strong customer relationships [5] Company Strategy and Development Direction - The company plans to add approximately 90,000 horsepower over 2025 and early 2026, with significant new electric and gas units already under contract [8] - The company aims to optimize fleet assets and improve rental revenue per horsepower, which finished the quarter at $27.08 per horsepower per month, a 1.7% sequential increase [10] - The company is focused on balancing capital returns with growth opportunities, having initiated a quarterly dividend of $0.10 per share [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver improved performance despite global macroeconomic uncertainty, citing strong demand for compression tied to existing production [9] - The company anticipates continued growth in 2026, with preliminary expectations for growth CapEx of $50 million to $70 million [17] - Management highlighted the importance of technology and service excellence in maintaining competitive advantages [7][9] Other Important Information - The company is not focused on real estate investments but aims to convert non-productive assets into productive horsepower [11] - The company is seeing strong demand for compression driven by rising electricity demand and LNG infrastructure buildout [9] Q&A Session Summary Question: Can you talk about the outlook for 2026 and customer conversations? - Management noted that there is no hesitancy from customers regarding 2026 contracts, with a broad range of interest observed [22][23] Question: What are the opportunities for margin improvement? - Management indicated that margins are expected to remain in the low 60s in the near term, with potential for improvement through a mix shift to large horsepower [25] Question: Is the majority of demand still for gas lift in the Permian? - Management confirmed that while gas lift remains the majority, there is growing demand for data center natural gas loads, creating incremental opportunities [29][30] Question: How did the relationship with Devon Energy develop? - Management explained that the long-term relationship with Devon was strengthened by demonstrating the capabilities of their technology and service [46][47] Question: What is the outlook for capital expenditures in 2026? - Management indicated that 2026 is expected to be in line with 2024, with significant growth anticipated [54][55]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.5 million, down 16.7% from $102.7 million in Q3 2024 [17] - Non-GAAP gross margin was 35%, slightly up from the prior year period [18] - Non-GAAP net income for Q3 2025 was $1.7 million or $0.02 per diluted share, compared to $14.1 million or $0.16 per diluted share in Q3 2024 [22] - Free cash flow generated in Q3 2025 was $3.3 million, reflecting strong cash generation [23] Business Line Data and Key Metrics Changes - North America was the strongest region, contributing $36 million in revenue, while India contributed $24.4 million [17] - Research and development expenses were $6.8 million, down from $8.6 million in Q3 2024 [18] - Sales and marketing expenses increased to $12 million from $10.4 million in Q3 2024, reflecting increased business in North America [19] Market Data and Key Metrics Changes - Visibility improved in North America and India, with renewed order flow from a major carrier in India [14][15] - The company is optimistic about growth in 2026, driven by opportunities in both CSPs and private networks segments [15] Company Strategy and Development Direction - The company is focusing on high-capacity, low-latency connectivity solutions driven by AI and data-intensive applications [8] - Ceragon's E-band and point-to-multipoint offerings are positioned to address network capacity and resiliency challenges [9][10] - The company is pursuing additional potential acquisitions to enhance its capabilities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4 and 2026, citing improved visibility and a strong funnel of opportunities [28][29] - The company is encouraged by the growth in private networks and the demand for higher capacity driven by AI [32][33] - Management noted that the impact of the U.S. government shutdown has not been significant so far [51] Other Important Information - The company has been awarded contracts for private 5G and Wi-Fi technologies, showcasing its capabilities in managed services [12] - The balance sheet remains solid, with cash position increasing to $43 million [22] Q&A Session Summary Question: Outlook for the fourth quarter and 2026 growth - Management is optimistic about Q4, driven by visibility from India and North America, and sees potential for growth in 2026 across all regions [28][29] Question: Drivers of tier one ramp-up in North America - The increase is driven by demand for higher capacity due to 5G and fixed wireless access [37] Question: Update on E2E and commercial activity - E2E is meeting plans, with significant opportunities expected to materialize [39] Question: Supply chain concerns regarding component availability - There are slight increases in component costs, but no significant impact on overall costs is anticipated [40][41] Question: Defense and security business opportunities - The company sees numerous opportunities in defense and security, particularly with its 60 GHz product [56][58]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $13.5 million for Q3 2025, a 29% increase compared to $10.5 million in the same period last year [5][15] - Gross profit for the quarter was $10.2 million, up from $7.7 million in the prior year, maintaining a gross margin of 75% [16] - Operating profit increased to approximately $1.3 million from $0.3 million year-over-year [16] - Adjusted EBITDA rose to $2 million from $1.1 million in the prior year [16] - The company ended the quarter with $70.7 million in cash and cash equivalents, an increase of $1.1 million from the end of 2024 [17] - Remaining performance obligations grew to $65 million, a 37% year-over-year increase [17] Business Line Data and Key Metrics Changes - The company shipped 90 Deep TMS systems during the quarter, representing a 43% increase compared to the same period last year, bringing the total install base to over 1,600 systems globally [5][15] - Approximately 70% of recent customer engagements were structured as multi-year lease agreements, indicating a strong transition to this sales model [8] Market Data and Key Metrics Changes - The company is focusing on expanding its market presence, particularly in Asia-Pacific and Europe, with strong demand anticipated from countries like Japan, China, South Korea, and India [36][38] - The company has received FDA clearance for an accelerated treatment protocol for major depressive disorder, which is expected to enhance patient appeal and drive demand [10] Company Strategy and Development Direction - The company’s strategy includes elevating market awareness of Deep TMS, advancing its R&D roadmap, and broadening patient access through global extension and health system integration [9] - The company is pursuing minority equity investments in mental health providers to enhance market awareness and expand access to Deep TMS [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s growth trajectory, citing strong market demand and a solid book-to-bill ratio of 1.3x for the quarter [8] - The company raised its revenue guidance for the full year 2025 to a range of $51 million-$52 million, reflecting a year-over-year growth rate of 24%-27% [18] Other Important Information - The company announced a virtual investor and analyst day on December 1 to discuss operational, clinical, regulatory, and financial progress in more detail [14] Q&A Session Summary Question: Can you discuss the accelerated protocol and its current treatments? - Management highlighted that the accelerated protocol shortens the acute phase from four weeks to six days, increasing treatment frequency, which is driving demand for growth [20] Question: What can be expected regarding minority equity investments? - Management indicated a robust pipeline for minority investments, aiming to sign at least one more agreement by year-end, with promising opportunities for 2026 [21] Question: Any updates on Neurolief's activities in Japan and the EU? - Management anticipates FDA clearance for Neurolief by year-end, which will enable marketing and distribution through various channels [22] Question: What are the expectations for system placements from minority partners? - Management noted that minority investments are expected to lead to the opening of 10-15 new clinics annually, with early investments showing over 50% utilization growth [28][29] Question: Will there be changes in metrics reporting going forward? - Management plans to provide more granularity on metrics such as system shipments and performance of minority investments during the analyst day [35] Question: What is the outlook for international growth? - Management expects strong growth from Asia-Pacific and Europe, with increasing demand in countries like Japan, China, and Germany [36][38]

Summary of Edgewise Therapeutics FY Conference Call Company Overview - **Company**: Edgewise Therapeutics (NasdaqGS:EWTX) - **Event**: 2025 Healthcare Innovations Conference - **Date**: November 11, 2025 Key Points Industry and Product Focus - Edgewise Therapeutics is focused on developing treatments for hypertrophic cardiomyopathy (HCM) and heart failure with preserved ejection fraction (HFpEF) [1][2] PART-D Study Insights - The PART-D data is expected to be released by the end of the year, with ongoing discussions about the efficacy data from the 25 mg dose [7][9] - Initial data from the PART-BC study showed no correlation between ejection fraction changes and drug concentration, indicating a differentiated profile compared to current treatments [2][13] - The company has faced enrollment challenges but has implemented measures to ensure a representative patient group [4][6] Efficacy and Safety Observations - Significant improvements were noted in patient feel and function, as measured by New York Heart Association (NYHA) changes and Kansas City Cardiomyopathy Questionnaire (KCCQ) scores [2][21] - The compound was generally well tolerated, with a few cases of atrial fibrillation observed, which is common in HCM patients [2][3] - The company aims to eliminate the need for multiple echocardiograms in dosing, which is a barrier for many cardiology practices [14][15][20] Competitive Landscape - Edgewise's drug aims to provide a safer alternative to current treatments that require titration and monitoring of ejection fraction [14][15] - The company believes that their drug can be a first-line treatment for patients with borderline ejection fraction, potentially replacing current therapies that have safety concerns [16][17] Future Studies and Registration Plans - Plans for future studies include potentially head-to-head trials against beta blockers and similar studies to previous successful trials [27][30] - The primary endpoints for future studies will likely include KCCQ and NT-proBNP levels, with a focus on achieving significant clinical benefits [33][37] HFpEF Program Development - The company plans to initiate a phase 2A study in HFpEF, focusing on NT-proBNP as a primary measure of efficacy [36][38] - The anticipated timeline for this study is in 2026, with a focus on patient tolerability and dose range [37][38] Sarasantan and DMD Strategy - Discussions are ongoing regarding the registration study for Sarasantan in Duchenne Muscular Dystrophy (DMD), with a focus on patient backgrounds and competitive landscape [39][40] - The company is considering using SV95 as a primary endpoint for DMD studies, pending discussions with regulatory agencies [42][43] Financial Position - Edgewise Therapeutics has $560 million in cash, which is expected to fund operations through 2028, supporting their commercialization plans [47][51] Conclusion - Edgewise Therapeutics is positioned to make significant advancements in the treatment of HCM and HFpEF, with promising data and a strong financial foundation to support ongoing and future studies [52][56]

KalVista Pharmaceuticals (NasdaqGM:KALV) Q3 2025 Earnings Call November 11, 2025 08:30 AM ET Company ParticipantsBen Palleiko - CEONicole Sweeny - Chief Commercial OfficerBrian Piekos - CFOPaul Audia - CMORyan Baker - Head of Investor RelationsConference Call ParticipantsNone - AnalystNone - AnalystJoe Schwartz - AnalystStacy Ku - AnalystDebanjana Chatterjee - AnalystMaury Raycroft - AnalystNone - AnalystOperatorThank you for standing by. Welcome to KalVista Pharmaceuticals' 2025 third-quarter financial upd ...

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [10] - Gross margins decreased to 21% in Q3 2025 from 51% in Q3 2024, attributed to the composition of revenue and pricing variability [10] - Total operating expenses increased to $21 million in Q3 2025 from $18.6 million in the same period of the prior year, due to salary increases, new hires, and higher stock-based compensation [11] - GAAP net loss for Q3 2025 was higher than in Q3 2024, primarily due to a non-cash change in the fair value of derivative warrant and earn-out liabilities [12] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt, and this increased to approximately $600 million by November 6, 2025 [12] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [5] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was secured to advance superconducting quantum networking [6] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue, with future sales dependent on its renewal [10] - The company is engaged with various academic and government sectors to enhance quantum computing capabilities, including collaborations with Montana State University and the Center for Development of Advanced Computing [7][8] Company Strategy and Development Direction - The company aims to deliver a 150-plus qubit system by the end of 2026 and a 1,000-plus qubit system by the end of 2027, with anticipated gate fidelity improvements [4][5] - The strategy includes deepening support for quantum computing capabilities in academic and government sectors and integrating with NVIDIA's NVLink for AI supercomputer quantum integration [8] - The company plans to open an Italian subsidiary to accelerate business opportunities in the region [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales from recent contracts and collaborations, which are expected to benefit revenue in Q4 2025 and into 2026 [10] - The management acknowledged challenges in achieving long-range coupling and error correction, which are critical for future milestones [17] - The company is optimistic about being selected for phase B of the DARPA Quantum Benchmarking Initiative project in the coming months [18] Other Important Information - The company is exploring options for potential M&A to accelerate its roadmap, although it believes it can execute its current plans organically [47][48] - The company is considering significant capital expenditures for upgrading its chip fabrication facility in the future [56][60] Q&A Session Summary Question: Can you talk about DARPA phase B and the feedback received? - Management noted that while they were not selected for phase B, constructive feedback was received regarding error correction and long-range coupling, which are important for future milestones [16][17] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management expressed confidence in achieving 99.8% fidelity with 1,000 qubits by the end of 2027, emphasizing the importance of error correction [20][22] Question: Will the 150-qubit and 1,000-qubit systems use chiplet-based approaches? - The company plans to use 9-qubit chiplets for the 150-qubit system and 36-qubit chiplets for the 1,000-qubit system [27] Question: How will revenue recognition work for the Novera system sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [31] Question: What is the expected gross margin profile moving forward? - Management indicated that while gross margins were lower in Q3, future sales, particularly from Novera, are expected to have better margins [64] Question: How does the recent funding for the National Quantum Initiative affect the business? - Management noted that the reinstatement of funding to $625 million over five years is a positive step, although discussions for higher funding amounts are ongoing [81][82]