Financial Data and Key Metrics Changes - The company ended 2025 with approximately $24.7 million in cash and cash equivalents and working capital of approximately $3.4 million [31] - Selling, general and administrative (SG&A) expenses for 2025 were $8.8 million, a decrease from $9.2 million in 2024, primarily due to lower stock-based compensation and personnel costs [32] - Research and development (R&D) expenses were reported at $5.5 million for 2025, down from $14.3 million in 2024, with contra-R&D expenses reflecting grant dollars received at $13.9 million in 2025 compared to $7.7 million in 2024 [32][33] Business Line Data and Key Metrics Changes - The company is advancing multiple programs simultaneously, including DARE to PLAY, which is expected to begin generating revenue in Q2 2026 [33] - DARE to RESTORE products, including Flora Sync LF5, are expected to be commercially available in the U.S. consumer health market in the second quarter of 2026 [16][27] - DARE to RECLAIM is targeting 503B commercial availability in 2027, while Ovaprene is in a phase III pivotal trial with enrollment expected to complete in 2026 [18][20][27] Market Data and Key Metrics Changes - The company is addressing a significant market gap in women's health, which has historically received only 6% of private healthcare investment, with conditions affecting women attracting less than 1% [25][30] - The estimated market for DARE to RECLAIM is between $2.5 billion and $4.5 billion, targeting the compounded hormone therapy market [18] - The company is also developing DARE-HPV, which addresses a large untreated patient population with high-risk HPV infections, representing a significant market opportunity [22][24] Company Strategy and Development Direction - The company employs a dual-path strategy, commercializing proprietary formulations through 503B compounding while pursuing FDA approval for select products [2][14] - The focus is on building a comprehensive pipeline of differentiated products for women's health, addressing various conditions from contraception to menopause [5][15] - The company aims to leverage non-dilutive funding to advance its programs while managing shareholder dilution responsibly [31][33] Management's Comments on Operating Environment and Future Outlook - Management believes that 2026 will be a pivotal year for the company, showcasing the results of a decade of commitment to women's health [7][25] - The company is positioned to capitalize on the growing demand for women's health solutions, with increasing political and media attention on the subject [30] - Management emphasizes the importance of building real-world data through its commercial model to strengthen future regulatory submissions [27][28] Other Important Information - The company has received significant non-dilutive funding, including approximately $20.8 million from sales of common stock and $13.6 million from the Gates Foundation in 2025 [31] - The company is actively engaging in provider education and digital marketing to raise awareness of its products [12][49] Q&A Session Summary Question: When was your last interaction with FDA on Sildenafil Cream? - Management confirmed that interactions with the FDA occurred last year, focusing on aligning endpoints for the trial [37][38] Question: Do you need to conduct any additional safety studies? - Management stated that existing safety data would be sufficient for submission, emphasizing the localized effect of the topical formulation [43][44] Question: What are you seeing with the order patterns for DARE to PLAY? - Management reported a mix of prescriptions coming in from both brick-and-mortar providers and telehealth channels, indicating strong interest [46][47] Question: How do you envision the bigger driver of volume for DARE to PLAY? - Management is evaluating various platforms and partnerships to ensure effective patient acquisition and reach [57][58] Question: How are you thinking about promoting DARE to RESTORE? - Management plans to leverage digital marketing and provider engagement to create awareness and drive conversion for DARE to RESTORE [51][53]

Financial Data and Key Metrics Changes - Consolidated net sales in fiscal 2025 decreased 3% to $1.48 billion, with sales in full-price brick-and-mortar locations and e-commerce also down 3% [16][17] - Adjusted gross margin contracted 190 basis points to 61.3%, primarily due to higher tariffs of $30 million or 200 basis points [18] - Adjusted EBITDA was $107 million, representing a 7.2% EBITDA margin, compared to $193 million or 12.7% in the prior year [19] - Adjusted EPS was $2.11, which includes $0.19 of charges related to the Saks bankruptcy [20] Business Line Data and Key Metrics Changes - Sales declines at Tommy Bahama and Johnny Was were driven by negative comps in the high single-digit and low double-digit range, respectively, while Lilly Pulitzer saw a positive comp in the low single-digit range [17] - Emerging brands continued to show growth, with sales growth in the low double-digit range [17] Market Data and Key Metrics Changes - Comparable sales at Tommy Bahama improved to mid-single-digit positive comps, while Lilly Pulitzer's comps were below plan due to colder weather in key markets [6][7] - The wholesale channel decreased by $13 million or 5%, primarily due to the decline in the specialty store market [17] Company Strategy and Development Direction - The company aims to sustain momentum, improve profitability, and strengthen its brands for the long term, focusing on customer service and brand integrity [10][11] - Significant investments were made in technology, data analytics, and a new distribution center in Lyons, Georgia, to enhance operational efficiency [9][31] - The company plans to diversify sourcing, reducing reliance on China from approximately 40% to about 15% [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early fiscal 2026 trends, particularly at Tommy Bahama, despite ongoing tariff pressures [10][24] - The company anticipates total net sales for fiscal 2026 to be between $1.475 billion and $1.53 billion, with a total comp of approximately flat to positive 3% [23] Other Important Information - The company incurred $40 million in tariffs that were later struck down by the Supreme Court, with uncertain timing for potential recovery [21] - Capital expenditures for fiscal 2026 are expected to be approximately $65 million, down from $108 million in fiscal 2025 [35] Q&A Session Summary Question: What is driving the momentum at Tommy Bahama? - Management noted consistent mid-single-digit comps driven by the right product assortment and strong sales of key items like the Emfielder Polo and Boracay pants [38][39] Question: How should gross margin implications be viewed with channel mix shifts? - Management indicated that growing DTC sales would positively impact gross margins, while wholesale performance remains strong [42][43] Question: How is the company addressing the loss of Saks and the wholesale channel? - Management expressed optimism about relationships with other retailers like Macy's and Dillard's, while noting that Florida's performance is improving [49][50] Question: What is the outlook for Lilly Pulitzer given the weather impact? - Management acknowledged that Lilly's performance was affected by colder weather but expects improvement as conditions normalize [72][75] Question: What are the plans for Johnny Was to improve margins? - Management indicated that Johnny Was would see improved gross margins as promotional activities decrease and inventory levels stabilize [77][78]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $2.9 million, down from $4.7 million in Q4 2024, primarily due to delays in government funding and procurement cycles [14][15] - Full-year revenue for 2025 was $22.4 million, compared to $26.4 million in 2024, reflecting extended funding delays [14][15] - Gross profit for Q4 2025 was $1.7 million (58% of revenue), down from $2.9 million (62% of revenue) in the prior year [15] - Full-year gross profit was $15.2 million (68% of revenue), compared to $19.4 million (74% of revenue) in 2024 [15] - Net loss for Q4 2025 was $1 million ($0.09 per diluted share), consistent with the prior year [16] - Full-year net income was $3 million ($0.02 per diluted share), down from $1.4 million ($0.12 per diluted share) in 2024 [16][17] Business Line Data and Key Metrics Changes - Government revenue for 2025 was $17.8 million, down from $22.9 million in 2024 [15] - International revenue increased to $4.2 million from $3.1 million in 2024, while commercial revenue remained approximately $400,000 year-over-year [15] Market Data and Key Metrics Changes - The company ended 2025 with a backlog of $25.6 million, including $13.8 million in capital, $5.1 million in service, and $6.7 million in STEP contracts [18] - Bookings for Q4 totaled $7.3 million, contributing to full-year bookings of $26.7 million [17][18] Company Strategy and Development Direction - The company is focused on converting strong customer demand into revenue as funding conditions improve, with a robust backlog and enhanced operational capabilities [19] - Investments have been made in the sales organization and marketing efforts to strengthen engagement and visibility in the market [9][10] - The introduction of new products, such as the APEX analytics platform and drone defense training solutions, aims to enhance competitive positioning and address evolving market needs [10][11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the funding environment has begun to improve, with programs reopening for applications, which is expected to lead to increased customer engagement [4][5][6] - The company anticipates that revenue conversions will be gradual, driven by external funding timelines [6][13] - Management emphasized that demand has remained strong throughout the period, with a focus on aligning operations to fulfill orders quickly as funding is secured [8][19] Other Important Information - The company has made targeted investments in its sales organization and marketing to enhance engagement and pipeline development [9][10] - The GSA re-entry process is expected to be completed by Q3 2026, which will facilitate quicker order processing for agencies [9] Q&A Session Summary Question: Expansion of engagements with the military market - The company has multiple engagements across Army, Navy, and Marine Corps, focusing on adapting systems to meet military needs [22][23] Question: Quoting activity and sales touchpoints - Demand remains high, with increased quoting activity, but funding release is still pending [24][25][26] Question: Process for moving funding - The timeline for funding release is uncertain, with variability based on grant submissions and administrative processing [32][33][34] Question: Backlog and revenue conversion - Backlog components are complex, and revenue conversion timelines vary significantly [39][40][41] Question: Upcoming military milestones - There are both larger contracts and specific opportunities where the company is positioned as a prime contractor [44][46] Question: AI's impact on the business - AI is viewed as an opportunity for efficiency and innovation rather than a threat, with applications in performance enhancement and cost savings [47][48][49][50][52]

Financial Data and Key Metrics Changes - For the fourth quarter of 2025, total revenue was $3.9 million, reflecting a 13% growth compared to the fourth quarter of 2024 [18] - Gross profit was $2 million, an increase of $200,000 or 13% compared to the fourth quarter of 2024, with a gross margin of 50% for the quarter [18] - Operating expenses were $9.4 million, a $3.1 million increase from the fourth quarter of 2024, primarily due to development expenses and public company costs [18][19] Business Line Data and Key Metrics Changes - Adoption of CapsoCam Plus expanded, with approximately 9,400 patients utilizing the system in Q4 2025, compared to 8,374 in the prior year, representing a 12% year-over-year growth [13] - New account growth increased by 16% year-over-year in Q4 2025, reflecting continued physician adoption of CapsoCam Plus [15] - The number of hospital system customers increased by 87% in Q4 2025 compared to the same period last year [17] Market Data and Key Metrics Changes - As of December 31, 2025, more than 161,000 patients have been imaged with CapsoCam Plus [4] - The company is seeing increased penetration in GI clinics and larger gastroenterology networks, with a focus on expanding into hospital systems and group purchasing organizations [16] Company Strategy and Development Direction - The long-term vision is to deliver an ingestible capsule capable of screening for multiple cancers in a single non-invasive procedure [4] - The company is focusing on advancing its AI-enabled roadmap and has submitted a 510(k) application for an AI-assisted reading module [7] - CapsoCam Colon Gen 2 is being prioritized for development, with a focus on improved imaging performance and enhanced AI functionality [8] Management's Comments on Operating Environment and Future Outlook - Management believes the company is well-positioned heading into 2026 with a growing commercial base and a differentiated AI-enabled platform [12] - The company is entering a highly competitive phase of execution, with continued commercial momentum and a disciplined pipeline strategy [20] - The recent $14 million private placement reflects investor confidence and provides flexibility for product innovation and clinical development [11][19] Other Important Information - The company has a robust intellectual property portfolio with 83 issued U.S. patents [13] - The cloud-based architecture supports the AI strategy and enhances diagnostic accuracy [5] Q&A Session Summary Question: Feedback on Gen 2 CapsoCam Colon efforts - Management reported that enrollment is going well, with no delays anticipated for the FDA submission by the end of Q3 2026 [25] Question: Criteria for breakthrough designation application for pancreatic cancer detection - The scoring system will assess several important features linked to pancreatic cancer, and results from the 90-patient study will be used for FDA application [26][27] Question: CapsoCam development timeline and patient recruitment - Over 500 patients have been enrolled for Gen 2, with 11 sites across the U.S. and a target of 800 patients [36] Question: Anticipated review time for 510(k) submission - The FDA is expected to take six months for clearance, with commercial availability anticipated in Q1 2027 [37]

Financial Data and Key Metrics Changes - Consolidated net sales in fiscal 2025 decreased 3% to $1.48 billion, with sales in full price brick-and-mortar locations and e-commerce down 3% and outlet sales down 2% [16][17] - Adjusted gross margin contracted 190 basis points to 61.3%, primarily due to higher tariffs of $30 million or 200 basis points [18] - Adjusted EBITDA was $107 million or 7.2% EBITDA margin, compared to $193 million or 12.7% in the prior year [19] - Adjusted EPS was $2.11, including $0.19 of charges related to the Saks bankruptcy [20] Business Line Data and Key Metrics Changes - Sales declines at Tommy Bahama and Johnny Was were driven by negative comps in the high single-digit and low double-digit range, respectively, while Lilly Pulitzer saw a positive comp in the low single-digit range [17] - Emerging brands continued to show growth with sales growth in the low double-digit range [17] Market Data and Key Metrics Changes - Comparable sales at Tommy Bahama improved to mid-single-digit positive comps, while Lilly Pulitzer's comps ran below plan due to colder weather [6][7] - The wholesale channel decreased by $13 million or 5%, primarily due to the decline in the specialty store market [17] Company Strategy and Development Direction - The company aims to sustain momentum, improve profitability, and strengthen brands for the long term, focusing on customer service and cash generation [10][11] - Significant investments were made in technology, data analytics, and a new distribution center in Lyons, Georgia, to enhance operational efficiency [9][31] - The company plans to diversify sourcing, reducing reliance on China from approximately 40% to about 15% [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early fiscal 2026 trends, particularly at Tommy Bahama, despite ongoing tariff pressures [10][24] - The company anticipates total net sales for fiscal 2026 to be between $1.475 billion and $1.53 billion, with a total comp of approximately flat to positive 3% [23] Other Important Information - The company incurred $4 million of higher interest expense due to increased debt levels and expects a higher adjusted effective tax rate of approximately 28% [29] - Capital expenditures are expected to decrease to approximately $65 million in fiscal 2026, down from $108 million in fiscal 2025 [35] Q&A Session Summary Question: What is driving the momentum at Tommy Bahama? - Management noted consistent mid-single-digit comps driven by having the right product in stores and effective marketing strategies [38][39] Question: How should we think about margin implications with channel mix shifts? - Management indicated that growing DTC sales would positively impact gross margins, while wholesale performance remains strong [42][43] Question: How is the company addressing the loss of Saks and the wholesale channel? - Management expressed optimism about relationships with other retailers like Macy's and Dillard's, while noting that Florida's performance is improving [48][50] Question: What is the outlook for Lilly Pulitzer given the weather impact? - Management expects improvement as weather normalizes, with a focus on product alignment with customer demand [72][75] Question: What are the plans for Johnny Was to reinvigorate the brand? - The strategy includes better storytelling, product alignment, and inventory investment to enhance customer engagement [61][63]

Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenues were $382.7 million, a 61.7% increase from $236.6 million in Q4 2024. Adjusted EBITDA for the same period was $24.5 million, up from $15 million year-over-year [15][4][16] - For the full year 2025, consolidated revenues reached $1.2 billion, with adjusted EBITDA of $67.2 million [4] Business Line Data and Key Metrics Changes - Infrastructure segment revenues increased by 65.7% to $373.9 million in Q4 2025 from $225.7 million in Q4 2024, driven by increased project activity [16][15] - Life Sciences segment revenues decreased by 24.4% to $3.1 million in Q4 2025 from $4.1 million in Q4 2024, primarily due to lower unit sales in North America [18] - Spectrum segment revenues decreased by $1.1 million to $5.7 million in Q4 2025, with adjusted EBITDA down by $1.3 million to $1 million [19] Market Data and Key Metrics Changes - DBM Global's adjusted backlog increased by approximately $700 million to just over $1.8 billion since the end of 2024, reflecting improved demand across markets [5][6] - R2 reported a record revenue of $12.5 million for the full year 2025, representing a 28% increase year-over-year, with international demand surging by 123% [10][11] Company Strategy and Development Direction - The company is focused on strengthening its backlog and advancing strategic initiatives while maintaining financial discipline [4] - MediBeacon's FDA approval for the next generation TGFR system positions it well for commercialization in 2026 and beyond, with early activities in China already underway [7][9] Management's Comments on Operating Environment and Future Outlook - Management noted mixed market conditions but expressed confidence in the progress made across the portfolio and the strength of the current backlog [4][6] - The company is optimistic about the upcoming year, particularly in the infrastructure segment, with several commercial projects slated to start in 2026 [6][7] Other Important Information - As of December 31, 2025, the company had $112.1 million in cash and cash equivalents, up from $48.8 million at the end of 2024 [19] - The company is pursuing asset sales to address its capital structure and is working with lenders to find solutions [14] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any participant inquiries [21]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated $46 million in revenue on 328 units delivered, marking the highest number of units delivered in its history [5][26] - The GAAP gross margin for the year was 5.9%, representing a decrease from 7.1% in 2024, while non-GAAP gross margin was 8.8%, down from 18% in the prior year [28][30] - The full-year operating loss narrowed by 28% to $33.1 million, the lowest since going public, and adjusted EBITDA loss improved by 33% to $23.5 million [6][33] - Positive free cash flow of $5.4 million was generated for the year, a significant improvement from negative $49.1 million in 2024 [6][37] Business Line Data and Key Metrics Changes - The fourth quarter revenue was $5.2 million on 34 units, down from $16.5 million on 130 units in the previous quarter, primarily due to reduced deliveries during the slower season [27] - The powertrain business had a breakout year, delivering 15 powertrain systems to Blue Bird Corporation in Q4 alone, with nearly 100 additional orders received since Q2 [11][12] - The company expanded into higher margin, less competitive categories, which is now delivering results [11] Market Data and Key Metrics Changes - The company’s products were primarily delivered to organizations like UPS and FedEx, indicating strong demand from reliable fleet operators [9] - The Hub product line was showcased at the RE+ conference, attracting significant attention from energy developers and utilities [14] Company Strategy and Development Direction - The company aims to accelerate growth, reinforce liquidity, and continue expanding margins in 2026, building on the foundation established in 2025 [39][40] - The Hub product line is being expanded in 2026, addressing grid constraints and positioning the company as an energy provider, not just an electric vehicle manufacturer [14][15] - The company is focusing on commonizing components and building supply chain synergies to drive cost competitiveness and reliability [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to grow and manage costs despite a tumultuous operating environment [5][6] - The company anticipates revenue for 2026 to be in the range of $40 million to $50 million, with unit deliveries expected between 350 and 500 [38] Other Important Information - The company ended the year with $14 million in cash, up from $11 million, while also paying down obligations and investing in growth [34] - Accounts receivable decreased significantly from $26.9 million to $6 million, driven by strong collections [11][34] Q&A Session Summary Question: Can you talk about the opportunities for the new hub products outside of typical EV charging? - Management highlighted various use cases for the Hub, including high throughput power discharge for autonomous fleets and remote power for utilities during pipeline shutdowns [42][43] Question: How do new designs for powertrain products expand opportunities? - Management noted that learnings from deploying vehicles are applied to powertrain products, enhancing reliability and cost competitiveness [50][51] Question: What is the expected unit mix for 2026? - Management indicated a shift towards more powertrains and hubs, with high double-digit growth anticipated for both segments [68][69] Question: Can you provide an update on the UPS program? - Most units from the 200-unit program have shipped, with only a few remaining to meet revenue recognition criteria [74] Question: Is there potential for retrofitting installed vehicles with V2G capability? - Management confirmed that retrofitting is technically feasible for later generation vehicles, but commercialization is still under evaluation [84]

Financial Data and Key Metrics Changes - For Q4 2025, the company generated total revenues of $2.8 million, with net product revenues of $2.5 million from ZUNVEYL, and total revenues for the full year reached $10.2 million, including $6.8 million from ZUNVEYL [17][18] - Operating expenses for Q4 were $10.7 million, compared to $2.7 million in Q4 2024, leading to an operating loss of $7.9 million for the quarter [18][19] - The net loss for Q4 2025 was $6.9 million, or $0.30 per share, compared to a net loss of $5.8 million, or $0.52 per share in the same period last year [19][20] Business Line Data and Key Metrics Changes - ZUNVEYL's sales growth was highlighted, with 4,941 bottles dispensed in Q4, marking a 62% quarter-over-quarter growth [22] - The number of prescribing doctors increased by 50% compared to Q3, and cumulative homes with prescriptions rose by 69% in Q4 [10] Market Data and Key Metrics Changes - The company has signed contracts with two of the four major PBMs, enhancing payer access, which is crucial for market penetration [10][11] - The company is focused on expanding its reach in the $2 billion long-term care market, where ZUNVEYL is positioned as a treatment option [6][15] Company Strategy and Development Direction - The company aims to achieve operational profitability by 2027 while expanding ZUNVEYL's market presence and enhancing payer engagement strategies [7][16] - The company is initiating three real-world studies in 2026 to strengthen ZUNVEYL's positioning with payers and healthcare providers [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ZUNVEYL's adoption trajectory, emphasizing the importance of repeat ordering behavior and provider confidence as indicators of sustained performance [9][10] - The company expects continued sequential growth in ZUNVEYL sales through 2026 as physician awareness increases and payer access expands [21] Other Important Information - The company raised $40 million in Q3 2025, which has been allocated to expand its commercial reach and payer engagement strategies [7][16] - The company maintains a strong financial position with approximately $66 million in unrestricted cash as of December 31, 2025 [20][21] Q&A Session Summary Question: Timing for conversion of additional payers and promotion into neurologist prescriber base - Management expects to see some acceleration in Q2 for regional plans, with significant pickup in Q3, and plans to expand into neurology as they approach profitability in 2027 [31][33] Question: Key takeaways from the CONVERGE study - The study will evaluate polypharmacy and is expected to provide data that will be crucial for positioning ZUNVEYL with health plans and providers [35][36] Question: Clinical development timeline for the sublingual formulation - The company plans to initiate a PK comparative study in 2026, with potential entry into the clinic in early 2027, depending on data outcomes [40][41] Question: Sales rep expansion and inflection points - The sales force expansion is complete, and management believes this will significantly accelerate business growth [53][54] Question: Changes in marketing strategy for ZUNVEYL - The company has shifted its messaging to emphasize behavioral improvements alongside tolerability, which has broadened its prescriber base [61][62] Question: Aspirational outlook for the BEACON study - The BEACON study aims to demonstrate strong cognitive effects and tolerability for ZUNVEYL, which will be important for provider and payer engagement [65][66]

Financial Data and Key Metrics Changes - The company ended 2025 with approximately $24.7 million in cash and cash equivalents and working capital of approximately $3.4 million [31] - Net proceeds from sales of common stock were approximately $20.8 million, with non-dilutive capital contributions totaling approximately $19.4 million from various grants [31] - Selling, general and administrative expenses decreased to $8.8 million from $9.2 million in 2024, while research and development expenses dropped to $5.5 million from $14.3 million in 2024 [32][33] Business Line Data and Key Metrics Changes - The company is advancing multiple programs simultaneously, including DARE to PLAY, which is expected to begin generating revenue in Q2 2026 [33][34] - DARE to RESTORE, a line of consumer health products, is expected to become commercially available in the second quarter of 2026 [16][27] - DARE to RECLAIM is targeting 503B commercial availability in 2027, while Ovaprene is in a pivotal phase III trial with enrollment expected to complete in 2026 [18][20][27] Market Data and Key Metrics Changes - The company is addressing a significant market gap in women's health, which has historically received only 6% of private healthcare investment [25] - The estimated market for bioidentical hormone therapy is between $2.5 billion and $4.5 billion, with DARE to RECLAIM positioned to enter this market [18] - The contraceptive market is shifting towards non-hormonal options, with Ovaprene targeting this growing demand [19] Company Strategy and Development Direction - The company employs a dual-path strategy, commercializing proprietary formulations while pursuing FDA approval for select products [2][12] - The focus is on building a comprehensive pipeline of differentiated products for women's health, addressing conditions that uniquely affect women [5][15] - The company aims to leverage digital marketing and telehealth to drive consumer awareness and access to its products [12][29] Management's Comments on Operating Environment and Future Outlook - Management believes that 2026 will be a pivotal year for the company, showcasing the results of a decade of commitment to women's health [7][25] - The company is positioned to capitalize on the rising cultural and commercial focus on women's health, with a robust pipeline ready to meet market demands [30][75] - Management emphasizes the importance of building real-world data to support future regulatory submissions and strengthen market position [27][28] Other Important Information - The company has received significant grant funding, which has allowed it to advance its R&D efforts without diluting shareholder equity [31][33] - DARE to PLAY is the first topical arousal cream for women backed by clinical data, addressing a previously unmet need in the market [8][11] Q&A Session Summary Question: When was the last interaction with FDA on sildenafil cream? - Management confirmed that interactions occurred last year, focusing on aligning endpoints for the trial [37][38] Question: Do you need to conduct additional safety studies? - Management indicated that existing safety data would be sufficient for submission, emphasizing the localized effect of the topical formulation [43][44] Question: What are you seeing with the order patterns for DARE to PLAY? - Management reported a mix of prescriptions coming in from both brick-and-mortar providers and telehealth channels, indicating strong interest [46][47] Question: How do you envision the bigger driver of volume for DARE to PLAY? - Management is evaluating various channels, including telehealth and prescriber education, to maximize reach and patient acquisition [57][59] Question: How will you convey the formulation differences of DARE to PLAY? - Management highlighted the importance of clinical data and the unique formulation technology to differentiate from compounded products [61][64]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $25 million in Q4 2025, marking 8 consecutive quarters of year-over-year growth, with annual revenue reaching $92 million in 2025 compared to $86 million in 2024 [4][10] - Gross profit increased to $28 million in 2025 from $25 million in 2024, representing a 13% increase, while gross margin improved to 30% from 28% [5][10] - Operating cash used decreased to $13 million in 2025 from $18 million in 2024, indicating a 27% reduction in cash used in operating activities [5] Business Line Data and Key Metrics Changes - The company launched the advanced Sky-Fan & Turbo-Heater on its e-commerce platform, expanding its product offerings across 60 websites and major retailers like Home Depot, Target, Lowe's, and Walmart [6] - The Turbo Heater Fan is expected to create a new category of all-season ceiling fans, with plans to introduce additional designs and larger sizes based on market demand [7][18] Market Data and Key Metrics Changes - The company anticipates deploying over 1 million units of its advanced smart home technologies in various projects across the U.S. and globally, including significant developments in New York, Texas, and a $2.4 billion smart city project in Saudi Arabia [8][35] - The company aims to penetrate the market further by deploying over 100,000 products into homes and units by the end of 2026 [8] Company Strategy and Development Direction - The company is focused on becoming cash flow positive by expanding its product categories and leveraging its plug-and-play model, which has shown significant potential for growth [11][12] - The All-In-One Smart Platform is expected to launch in Q3 2026, which will further enhance the company's product offerings and market position [11][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing decline in the lighting and home decor markets but expressed confidence in the company's growth trajectory due to its innovative technologies and product versatility [4][13] - The management is optimistic about the hotel renovation segment, highlighting the time-saving benefits of their technology, which can significantly reduce labor costs [14][29] Other Important Information - The company has raised $29 million in Q1 2026 through investments from fundamental institutions, providing additional capital to support growth initiatives [5] - The company is working on AI-driven software for its e-commerce platform, expected to increase sales conversion rates by up to 30% [9] Q&A Session Summary Question: Can you elaborate on the safety code standardization timeline? - Management provided details on their progress with safety code standardization, mentioning key milestones and the involvement of experienced leaders in the field [19][20] Question: What is the path to cash flow positive? - Management indicated that achieving cash flow positive is feasible with the launch of new products and improvements in gross margins, suggesting a revenue target lower than $35 million per quarter [23][24] Question: How sensitive is the hotel market to interest rates? - Management noted that while interest rates may impact the market, the time-saving aspect of their products provides significant cost savings, which is a key selling point [26][29] Question: What is the revenue breakdown between smart plug products and traditional lighting fixtures? - Management stated that over 90% of revenue still comes from legacy products, but growth in smart plug products is accelerating [32] Question: Can you provide an update on major construction projects? - Management confirmed involvement in approximately 12 major projects, including a $4 billion smart city project in Miami, with expectations to start supplying products soon [33][34] Question: What is the timeline for completing the range of smart plug products? - Management indicated that they are close to completing the range, with 80% of the products ready and discussions with insurance companies underway [37][38]