Financial Data and Key Metrics Changes - The meeting confirmed that over 89% of outstanding shares were present for voting, indicating strong shareholder engagement [4][8] - The final voting results will be filed with the SEC, reflecting the company's commitment to transparency [8] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting [10] Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [10] Company Strategy and Development Direction and Industry Competition - The meeting included proposals for board member elections and executive compensation, indicating a focus on governance and leadership continuity [5][6] Management's Comments on Operating Environment and Future Outlook - There were no comments from management regarding the operating environment or future outlook during the meeting [10] Other Important Information - The meeting was conducted virtually, and the formal business portion was concluded before moving to the Q&A session [9][10] Q&A Session Summary - There were no questions raised during the Q&A session, leading to a prompt conclusion of the meeting [10]

Financial Data and Key Metrics Changes - The company's second quarter revenue was $500,000, with $300,000 from Acelsius and $200,000 from management fees of the Inventis ESG fund [24] - General and administrative expenses were approximately $18.6 million, down from $19.7 million in the prior quarter [26] - EBITDA for the quarter was a loss of approximately $135 million, with adjusted EBITDA showing an improvement to a loss of $16.2 million from a loss of $21.8 million in the first quarter [27] Business Line Data and Key Metrics Changes - Acelsius generated $300,000 in revenue, marking its continued growth in the data center liquid cooling market [24] - The company has engaged with its first hyperscaler for a proof of concept system, with expectations for further engagements [9][10] - The contracted go-to-market partner network has grown to 21, an increase of over 100% since the beginning of 2025 [11] Market Data and Key Metrics Changes - The data center liquid cooling market is experiencing rapid growth, driven by the increasing adoption of AI workloads [25] - A UBS analysis indicated that 100% of surveyed IT organizations plan to deploy AI workloads, with 14% already having done so [7] - Hyperscalers are projected to spend approximately $350 billion on data centers this year, with expectations to increase to $400 billion next year [47] Company Strategy and Development Direction - The company is focused on establishing itself as a leader in the two-phase directed chip liquid cooling market, leveraging its differentiated technology [17] - The management emphasizes the importance of building relationships with key industry players, including hyperscalers and OEMs [9][10] - The company has plans to open a demonstration point in the Bay Area to showcase its technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on growth expectations, citing increasing bookings and a shift towards larger production orders [36][38] - The management noted that the adoption cycle for their technology is progressing as expected, with early signs of traction in the market [39] - There is a strong belief that the company's operating model is underappreciated by the market, with significant value creation opportunities ahead [18] Other Important Information - The company issued convertible debentures totaling $30 million, improving its capital position [28] - The balance sheet showed an increase in cash to $12 million, up from $11.1 million at the end of the previous year [29] - The company is actively managing its cash flow and is focused on additional capital raises to support growth opportunities [31] Q&A Session Summary Question: Commentary on revenue growth inflection in the second half of the year - Management indicated that there has been significant activity and that bookings are expected to increase, reflecting traction at Acelsius [34][35] Question: Insights on the first hyperscaler proof of concept - Management confirmed that the initial proof of concept is a significant milestone and that successful trials could lead to large-scale orders [45][46] Question: Feedback on thermal simulation accuracy for AI workloads - Management explained that their thermal test vehicles allow for accurate simulations of high-density workloads at a fraction of the cost, with positive feedback from initial deployments [58][66]

Financial Data and Key Metrics Changes - Ending ARR for Q2 was $15.9 million compared to $23.9 million for Q2 last year, reflecting a decrease due to lapsed contracts [21] - Total revenue was $8 million, a decrease of $2.4 million or 23% from $10.4 million in Q2 last year [23] - Subscription revenue accounted for 58% of total revenue for the quarter, decreasing 28% from $6.4 million to $4.6 million [23] - Operating expenses were $13.1 million for the quarter, down $3.7 million or 22% from $16.8 million in Q2 last year [24] - Free cash flow usage was down from $6.9 million in Q2 last year to $5 million in Q2 this year [27] Business Line Data and Key Metrics Changes - Significant progress was made in launching the gift card solution, with the first Digimarc Protected Gift Cards received by a retailer [9] - A multiyear committed deal was signed with a large European packaging company, expected to generate near 7 figures of ARR starting next year [12] - Upsell deals were signed with three existing Digimarc Validate customers, reflecting increased contract value and expansion into new geographies [13] Market Data and Key Metrics Changes - The company is focusing on three core areas: retail loss prevention, product authentication, and digital authentication, with strong demand in the gift card sector [7] - The company anticipates a reduction of up to $3 million in annual revenue due to contract renegotiations with a large retailer [18] Company Strategy and Development Direction - The company aims to build a scalable and repeatable business model, focusing on delivering trust in every interaction across physical and digital worlds [30] - The strategic shift allows the company to be less reliant on any one customer and to move more quickly with the market [19] - The company is committed to achieving positive free cash flow by Q4 2025 despite expected revenue impacts from contract renegotiations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the opportunities provided in the key focus areas and the positive results from increased focus [19] - The company is well-positioned to lead in the digital trust space, especially with the rise of AI and the need for robust authentication solutions [29] - Management acknowledged the challenges posed by contract renegotiations but remains optimistic about future revenue growth from new products [20] Other Important Information - The company completed a corporate reorganization in Q2, resulting in a meaningful reduction in operating expenses and cash usage [6] - The company is seeing increased interest from brands not yet included in the initial rollout of the gift card solution [11] Q&A Session Summary Question: What is the GAAP OpEx run rate at the end of the quarter? - The non-GAAP operating expense run rate was $8.9 million for the quarter, with expectations for further reductions [33][34] Question: Do you have visibility into the forward year for the Central Bank business? - The company generally has at least twelve to eighteen months of forward-looking visibility but will not provide guidance unless there are material changes [36][37] Question: Was the European customer deal signed in the quarter, and did it impact reported ARR? - Yes, the deal was effective during Q2 and is included in ARR, with potential for growth in future years [40][41] Question: How many card vendors are there to work with for the gift card business? - The company will predominantly go to market through a relatively concentrated industry of gift card manufacturers, with significant collaboration with gift card networks [49][52]

Financial Data and Key Metrics Changes - Year to date loss from operations was $35.8 million, an increase of approximately $28 million from the comparable nine-month prior year period [43] - Year to date net loss totaled $32 million, up approximately $24 million from the prior year period, reflecting increases in R&D and G&A expenses [44] - Cash and cash equivalents increased to $210.2 million, an approximate $92 million increase from the end of the second fiscal quarter [45] Business Line Data and Key Metrics Changes - The company advanced its patented Cronos MMR energy system toward construction, demonstration, and licensing with the U.S. Nuclear Regulatory Commission (NRC) [20] - A strategic collaboration agreement was executed to build out the first Cronos MMR at the University of Illinois Urbana Champaign [21] - The company signed an MOU with UR America to explore strategic development across Argentina's uranium fuel supply chain [23] Market Data and Key Metrics Changes - Analysts project U.S. electricity consumption to rise at approximately 2.4% CAGR between 2022 and 2030, with data centers expected to comprise 8% of U.S. power by 2030 [12][13] - There is a growing global commitment to triple nuclear capacity by 2050, solidifying growth in nuclear energy as a secular trend for the coming decades [11] Company Strategy and Development Direction - The company is focused on a vertically integrated strategy to derisk microreactor development and enhance its competitive position [6][8] - The acquisition of Cronos MMR microreactor positions the company as a North American leader in microreactor commercialization [6] - The company aims to secure key stages of the nuclear fuel supply chain as a strategic priority [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on macro trends driving demand for advanced nuclear solutions [9] - The company highlighted the importance of bipartisan legislative and policy support for nuclear energy, which has emerged as a strategic focus for national security and climate goals [14][15] - Management is optimistic about the future, citing a strong team and a clear vision for commercialization [17] Other Important Information - The company closed a private placement for net proceeds of $99 million, strengthening its balance sheet and expanding institutional ownership [9] - Recent personnel additions and collaborations validate the company's strong competitive position [25][27] Q&A Session Summary Question: Progress in Canada to license there - The company is focused on reengaging with the Canadian licensing process and has almost completed the legal process of taking the holding entity out of bankruptcy [51][52] Question: Commercial sales opportunities for ALIP - The company is completing the SBIR Phase three process with the DOE, which will enable it to become a default contractor for supplying ALIP technology [58] Question: Cash usage during the remainder of 2025 and into 2026 - The estimated cash burn over the next twelve months is around $40 million, primarily for hiring and operational support [68] Question: Strategy of vertical integration - The company is examining how to involve itself in upstream processes like mining, milling, and conversion to derisk the fuel supply chain [75] Question: Application for the DOE Advanced Reactor pilot program - The company did not apply for the DOE program as it would result in higher costs and no commercial benefit [80][82] Question: Supply chain for nuclear grade graphite - The company is negotiating with suppliers for components like nuclear grade graphite and reactor pressure vessels, which will need to be outsourced [87]

Financial Data and Key Metrics Changes - Net premiums earned for Q2 2025 increased to $582,000 from $554,000 in Q2 2024, and for the six months ended June 2025, it rose to $1,180,000 from $1,100,000 in the prior year [8][9] - Total revenues for Q2 2025 reached $664,000, compared to $44,000 in Q2 2024, while total revenues for the six months ended June 2025 were $1,360,000, up from negative $81,000 in the prior year [9][10] - Net loss for Q2 2025 was $1,870,000 or $0.25 per share, compared to a net loss of $821,000 or $0.14 per share in Q2 2024 [10][11] - The combined ratio increased to 621% for Q2 2025 from 111.3% in Q2 2024, primarily due to losses from Hurricane Milton [13] Business Line Data and Key Metrics Changes - The loss ratio for Q2 2025 was 394%, up from the previous year's ratio, attributed to a full limit loss of approximately $2,300,000 from Hurricane Milton [11][12] - The acquisition cost ratio remained consistent at approximately 11% for both the quarter and six-month periods ended June 2025 [12] - The expense ratio for Q2 2025 increased to 227% from 111.3% in Q2 2024, driven by increased professional costs and legal expenditures [12][13] Market Data and Key Metrics Changes - The total addressable market (TAM) for the reinsurance space is estimated at $750 billion, significantly larger than the $150 billion TAM for stablecoins [27][28] - The company is actively participating in global blockchain and RWA events to strengthen its market presence and partnerships [18] Company Strategy and Development Direction - The company aims to position itself as a prominent player in the RWA and Web3 sectors, focusing on tokenized reinsurance securities [7][8] - Strategic partnerships have been formed with Tulum and Midnight Foundation to enhance distribution capabilities and innovation in blockchain-enabled RWA [17][18] - The company is committed to transparency and compliance, which are critical for attracting investors in the tokenized product space [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the long-term outlook of the core reinsurance business while integrating AssurancePlus into the RWA market [7][8] - The company is focused on building a strong foundation for future growth, emphasizing the importance of compliance and transparency in its offerings [22][24] Other Important Information - The investment portfolio decreased to $104,000 as of June 30, 2025, primarily due to a decrease in the fair value of equity securities [14] - Cash and cash equivalents increased by 12.9% to $6,700,000 from $5,900,000 as of December 2024, driven by premium deposits and a registered direct offering [14] Q&A Session Summary Question: Insights from recent conferences - Management highlighted the importance of conferences for gathering information and fostering collaboration, noting that investors prioritize compliance and transparency in tokenized products [22][24] Question: Details on the upcoming AGM and proposals - Management explained that the extraordinary general meeting aims to ensure all necessary components are in place for future initiatives in the blockchain and RWA space, emphasizing the importance of timing and partnerships [26][28]

Financial Data and Key Metrics Changes - Total revenue for the first half of 2025 was approximately $1.5 million, a decrease of 24% compared to $2 million in the same period in 2024, reflecting a strategic shift away from legacy contracts towards higher value commercial space-based and AI-driven solutions [31] - Cost of revenue rose to approximately $4.2 million, a 52% increase from $2.7 million in 2024, driven by increased depreciation and supply chain pressures [32] - Gross profit for the period was a loss of $2.7 million compared to a loss of $757,000 in the same period last year, primarily due to increased depreciation and a shift in contract structure [33] - Selling, general and administrative (SG&A) expenses totaled $8.7 million, up from $6.7 million in the prior year, supporting key growth initiatives [34] - Adjusted EBITDA for the first half of 2025 was $8.6 million compared to $5.9 million in the same period last year, reflecting ongoing investment in scaling the platform [35] Business Line Data and Key Metrics Changes - The company successfully launched its third satellite, LIDSYSAT-3, which is expected to generate recurring revenue through data services [7][9] - The Fortis VPX product line is being expanded to meet growing demand across various sectors, including aerospace and defense, with three scalable tiers introduced [11][12] - The transition from development to commercialization is foundational to the company's growth strategy for 2025 [8] Market Data and Key Metrics Changes - The company is positioned to benefit from increased U.S. manufacturing incentives and rising allied defense spending, particularly in Europe [27] - The focus on dual-use technologies aligns with national security priorities, enhancing the company's relevance in the evolving space economy [20][21] Company Strategy and Development Direction - The company aims to build a vertically integrated model that allows for rapid innovation and cost-effective solutions across space, technology, and AI [30] - The strategic focus includes expanding satellite constellations and advancing dual-use technologies for diverse applications [22][23] - The company is committed to a multi-domain strategy that reduces reliance on any single market segment, essential for long-term sustainable growth [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by supply chain pressures but remains optimistic about the transition to higher-margin recurring revenue models [32][36] - The company does not expect to turn a profit in 2025 but is building momentum for future growth [42] - The focus remains on innovation and strategic investments to support long-term profitability and operational efficiency [38][39] Other Important Information - The company completed a public offering of 7.1 million shares at a price of $1.05 per share, realizing approximately $6.7 million in net proceeds [38] - The company has approximately 28 patents approved or pending, reinforcing its competitive edge in the market [19] Q&A Session Summary Question: What are the company's expectations for revenue growth in the coming quarters? - Management indicated that the groundwork laid in 2025 positions the company for material revenue growth in the second half of the year, driven by the commercialization of new technologies and expanding customer contracts [26][42] Question: How is the company addressing supply chain challenges? - The company is actively pursuing cost optimizations and operational efficiencies to mitigate the impact of supply chain pressures on manufacturing operations [32][38]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $319.7 million, down 2% sequentially and 7.4% year over year [12] - Adjusted OIBDA was $33.4 million, down from $92 million in the previous quarter, primarily due to higher content amortization [13] - The company ended the quarter with $573.5 million in total net debt, down $42.1 million sequentially, with a leverage ratio of 3.2 times [14] Business Line Data and Key Metrics Changes - The company had 12.18 million U.S. OTT subscribers, a sequential decline of 120,000, and a total of 19.08 million North American subscribers, down 520,000 sequentially [12] - OTT revenue was $221.1 million, while linear and other revenue was $98.6 million, reflecting declines due to lower OTT subscriber additions [13] Market Data and Key Metrics Changes - The linear subscriber base declined to 6.22 million, reflecting continued declines in Pay TV households [12] - The company expects sequential revenue and OTT subscriber growth in the next two quarters due to the successful premiere of "Blood of My Blood" [13] Company Strategy and Development Direction - The company aims for higher adjusted OIBDA margins, higher free cash flow, and lower leverage, with a target of reaching a 20% margin by the end of calendar 2028 [6][10] - The content slate includes high-performing returning series and new premieres, which are expected to drive subscriber growth and revenue [9][10] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year for cash flow management, with a focus on deleveraging in 2026 and 2027 [14] - The company believes it is undervalued compared to peers and expects valuation disconnect to become more apparent as large media companies spin off their linear networks [6] Other Important Information - The company is excited about its content slate, including the return of "Spartacus" and the launch of "Fightland," which is expected to have a lower cost structure compared to previous productions [10][46] - The passage of the One Big Beautiful Bill Act allows the company to reduce federal tax liabilities, leading to no significant cash tax payments anticipated for the foreseeable future [14] Q&A Session Summary Question: What defines scale in this business and prerequisites for M&A? - Management has a clear plan for deleveraging and achieving a 20% margin, focusing on delivering that plan regardless of M&A participation [18] Question: What caused the underperformance of BMF and adjustments going forward? - BMF was still a large show but did not meet growth expectations due to gross adds issues; management is analyzing the situation and has new content in development [28] Question: Insights on ARPU and distribution relationships? - ARPU was slightly down due to more customers on multi-month offers, which helps reduce churn; no rate increases are planned for the next year [30][32] Question: Audience transition for "Blood of My Blood"? - The company has a strong track record of franchising, with spin-offs typically retaining over 85% of the original audience [38] Question: Confidence in the return of "Spartacus"? - There is significant demand for "Spartacus" to return, and the company has incorporated diverse characters to appeal to a broader audience [46]

Financial Data and Key Metrics Changes - The company reported revenues of $298,000, representing a 141% increase compared to the same quarter last year [6][4] - Gross profit totaled $187,000, which is 63% of revenues, marking a 69% increase from $111,000 in the same quarter last year [7] - Operating loss decreased by 10% to $1,800,000 compared to the same quarter a year ago [8] - Net loss available to common stockholders was $2,300,000, or a negative loss of $0.09 per share, which is a 15% improvement from the previous year's net loss of $2,000,000 [8] - Available cash increased to $3,300,000 from $220,000 as of March 31, 2025 [9] - Total liabilities decreased by 39% to $1,200,000 during the quarter [9] Business Line Data and Key Metrics Changes - The U.S. National distributor network increased sales by 192% year-over-year, contributing $198,000 or 67% of total revenue [4][6] - The introduction of the new Precise PRP product alongside Spring contributed to the revenue increase [6] Market Data and Key Metrics Changes - The Mexican veterinary health care market is projected to grow at a compounded annual growth rate of 11%, reaching $2.4 billion by February 2031 [3] - The U.S. animal health market is expected to double to $11.3 billion by February 2030, providing significant growth opportunities [24] Company Strategy and Development Direction - The company is focused on expanding the adoption of its flagship product, Spring, and increasing awareness of Precise PRP for treating osteoarthritis in animals [12] - Strategic partnerships have been formed, including collaborations with Commonwealth Markets and Piezo BioMembrane, to enhance product offerings and market reach [20][22] - The company is integrating AI technology with its veterinary products to create a global pet care ecosystem [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong sales momentum and market penetration for fiscal 2026 and beyond [24] - The company believes it is well-positioned to accelerate growth and expand into high-growth markets [24] Other Important Information - The company has recently qualified to trade on the OTCQX best market, enhancing visibility and liquidity for investors [11] - The commercialization of Spring and Precise PRP has received favorable feedback from veterinarians regarding their effectiveness [14] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the call [29][33]

Financial Data and Key Metrics Changes - The company achieved record sales exceeding $11,000,000 in Q2 2025, surpassing total sales for the entire fiscal year 2024 [5] - Gross profit margins decreased by 17% due to front-loaded investments and one-time costs associated with supply chain activation [5][6] - As of June 30, 2025, cash and cash equivalents were $16,423,000, with working capital of $16,163,000 and zero long-term debt [6] Business Line Data and Key Metrics Changes - The company has a healthy inventory position of over $7,000,000 and a current backlog of approximately $15,000,000 [6][15] - Multiple purchase orders have been received, partially funding previously announced Letters of Intent (LOIs) with prominent ORAN 5G players [7] Market Data and Key Metrics Changes - The ORAN 5G infrastructure market is projected to grow at 33.4%, reaching over $42,000,000,000 globally by February 2030 [9] - Quantum computing hardware is expected to grow at a combined annual growth rate (CAGR) of 37.3%, exceeding $9,000,000,000 by February 2032 [9] - Satellite and high-speed connectivity equipment is estimated to grow at a 12% CAGR through February 2030, driven by LEO networks and rural broadband demand [9] Company Strategy and Development Direction - The company is focused on four key areas: open RAN, ORAN 5G networks, quantum computing, and satellite terrestrial high-speed connectivity, all expected to see high growth [8] - The strategy involves aggressive investment to secure long-term positions within critical next-generation infrastructure rollouts [8][10] - The company aims to leverage increasing demand for secure domestically manufactured communications equipment, positioning itself as a trusted alternative to foreign suppliers [10] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue growth exceeding 100% year-over-year in fiscal year 2025, driven by public and private 5G orders [13] - Gross margins are expected to improve beginning in Q3 2025 as production costs normalize and one-time costs are reduced [14] - Positive cash flow from operations and projected profitability are anticipated in fiscal year 2026, assuming current order pace and margin recovery continue [14] Other Important Information - The company maintains a strong cash management discipline and does not anticipate raising capital under unfavorable market conditions [14] - The company has a good backlog of about $15,000,000 and expects additional orders to continue funding its LOIs [15] Q&A Session Summary Question: Update on second tier one orders and feedback - The company has already received orders from the second tier one, with LOIs valued at $17,000,000 and $40,000,000, and additional orders are expected [18][19] Question: Visibility on 2026 production - The company has periodic meetings with both organizations and is able to energize the supply chain based on customer forecasts [21] Question: Pipeline with other operators - The company is seeing interest from other large MNOs transitioning to 5G ORAN technology, with expectations for a good response next year [24] Question: Quantum computing revenue expectations - The quantum computing business is not yet at a production phase, but the company has delivered products showing performance [25][26] Question: Update on space division and backlog - The satellite business is expected to ramp up next year as LEO applications are built out [29] Question: Inventory and manufacturing strategy - The company is building to forecast and has a manageable inventory level to satisfy upcoming purchase orders [59]

authID (AUID) Q2 2025 Earnings Call August 14, 2025 05:00 PM ET Speaker0Good afternoon, everyone, and thank you for participating in today's conference call to discuss AuthID's Second Quarter twenty twenty five Financial Results. At this time, all participants are in a listen only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question and answer session. I would now like to hand the conference over to AuthID's General Counsel, Graham Ara ...