Financial Data and Key Metrics Changes - Avino reported revenues of $21.8 million for Q2 2025, a 47% increase from Q2 2024, marking the second highest revenue in company history [13] - Gross profit was $10.2 million, with gross profit margins improving to 45% from 32% in Q2 2024 [13][14] - Net income for the quarter was $2.9 million, translating to earnings per share of $0.02, up from $1.2 million or $0.01 per share in Q2 2024 [14] - Cash flow from operating activities improved to $8.5 million, with free cash flow at $4.4 million [14][16] - Cash cost per silver equivalent ounce was $15.11, down 7% from Q2 2024, while all-in sustaining cash cost was just under $21 per ounce, an 8% decrease [15][18] Business Line Data and Key Metrics Changes - Silver equivalent production increased by 5% to almost 646,000 ounces in Q2 2025, driven by improved mill availability [9] - Gold production rose by 17% due to increased tons processed and improved recoveries [10] - Copper production increased by 12%, reaching 1.5 million pounds [10] - Silver production slightly decreased by 3% to just under 284,000 ounces [10] Market Data and Key Metrics Changes - The company maintained strong production momentum through the first half of the year, with record mill throughput of 190,987 tons processed, a 36% increase from Q2 2024 [10][11] - The cash position at the end of the quarter was $37.3 million, up over $10 million from the previous quarter [15] Company Strategy and Development Direction - Avino is focused on sustaining momentum and reaching new milestones, with a strong balance sheet and ongoing development of La Preciosa [7][8] - The company aims for annual production guidance of 2.5 to 2.8 million ounces of silver equivalent for 2025 [13] - The strategic focus remains on organic growth with three key assets, while remaining disciplined regarding M&A opportunities [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and ability to capitalize on positive market trends in the precious metals sector [71] - The operational team is expected to continue driving cost improvements while advancing La Preciosa development [8][12] Other Important Information - The company has initiated several CSR and ESG initiatives, including community reforestation and the delivery of low-cost water tanks [21][22] - Avino published its inaugural sustainability report, reflecting its commitment to transparency and responsible growth [23] Q&A Session Summary Question: Progress on La Preciosa access decline - Management confirmed that they have intercepted the Abundancia vein and are a few weeks away from intercepting the Gloria vein [31] Question: Mill throughput expectations for 2026 - The company is currently focused on development ore and is not providing specific throughput targets for this year, but aims for 400 to 500 tons per day by late next year [32] Question: M&A considerations in the current market - Management stated they are focused on organic growth and capital discipline, with no immediate plans for external growth opportunities [33] Question: Third quarter mill availability trends - Management indicated that while they are in a lower grade area, higher grades are expected later in the quarter [38] Question: Clarification on site services at La Preciosa - Site services include installations like compressed air and ventilation systems, as well as facilities for personnel [42] Question: Targeted cash balance for future expansions - Management is evaluating capital needs for future expansions but does not have a specific cash balance target at this time [48] Question: Changes in revenue impacting factors - Management noted improvements in terms with partners and inventory management, which may affect revenue fluctuations [54]

Financial Data and Key Metrics Changes - Record quarterly revenue of $268 million, up 94% year over year [12] - Silver production reached 3.7 million ounces, an increase of 76% year over year [11] - Record EBITDA of $120 million and cash flows of approximately $115 million [13] - Cash position stands at $510 million, indicating strong financial health [13][40] Business Line Data and Key Metrics Changes - Silver equivalent production totaled 7.9 million ounces, a 48% increase year over year [12] - Exploration spending is projected at 255,000 meters for the year, with 28 active rigs [15] - The company remains the purest silver producer, with 55% of its production being silver [17] Market Data and Key Metrics Changes - The company is experiencing volatility in silver and gold prices, impacting stock performance [7] - The integration of Cerro Los Gatos is noted as smooth, contributing positively to operational improvements [37] Company Strategy and Development Direction - The company is focused on increasing production capacity and exploration efforts, with plans to develop Santa Elena and Navidad [27][41] - Emphasis on maintaining a strong balance sheet while exploring growth opportunities for 2026 [41] - The company aims to enhance operational efficiencies through synergies from the Gatos integration [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges inflationary pressures affecting costs but expects a reversion in spending patterns in the coming quarters [21][22] - The company is optimistic about its exploration success and the potential of new ore bodies [16][56] - Future guidance will be provided as engineering work progresses on new discoveries [57] Other Important Information - The company has received upgrades in ESG scores, reflecting its commitment to sustainability [36] - Management views convertible debt as equity, emphasizing a strong cash position and low carrying costs [64] Q&A Session Summary Question: Can you walk through some of the synergies from the Gatos integration? - The integration has identified synergies in operational practices and cost savings through contractor consolidation [49][52] Question: What improvements are needed to sustain the 4,000 tonnes per day at Cerro Los Gatos? - The plan includes accelerating mining rates and ramp development to match plant capacity [47] Question: What is the total debt outstanding and expected payments? - Total debt is approximately $230 million, with $3 million paid in the last quarter [62][64] Question: Is First Mint up to full capacity? - Currently not at full capacity, but there are plans to increase production to 10% of the company's total output [66]

Financial Data and Key Metrics Changes - As of June 30, the company incurred approximately €124 million of the total expected €245 million cost for Phase one construction [5] - The company ended the quarter with €6.7 million in cash, which includes proceeds from a €5 million convertible note issuance in June [7] - Following the quarter, the company completed a follow-on transaction for an additional €5 million, resulting in over €12 million in cash on hand [8] Business Line Data and Key Metrics Changes - The qualification line at the Callantan graphite plant produced CSPG samples exceeding one metric ton for customer preproduction sales trials and testing [5] - Enhancements were implemented to improve cycle times and graphite flow rates, optimizing line performance [6] Market Data and Key Metrics Changes - The company is encouraged by the level of engagement from financing partners and believes the Callatin project aligns with U.S. policy priorities and growing market demand for domestic battery-grade graphite [7][10] Company Strategy and Development Direction - The company is focused on securing capital to complete the build of the Callantan graphite plant and is advancing multiple financing paths [7][10] - Long-term strategy includes vertical integration through the Coosa deposit while currently prioritizing flexibility and progress on the Callantan project [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to finance and produce the Callantan project, citing strong demand signals and federal policy support [12][13] - The company is committed to execution, transparency, and long-term value creation for shareholders [13] Other Important Information - The company has faced broader capital market volatility and trade policy shifts but remains optimistic about project financing and market conditions [7][10] Q&A Session Summary Question: Impact of potential interest rate cuts on financing - Management indicated that lower interest rates would be beneficial for project financing and long-term growth [17] Question: Future plans for convertible notes - Management stated that they would remain opportunistic regarding potential follow-on convertible note issuances [18] Question: Status of the project in Turkey - Management clarified that they are 100% focused on graphite and Phase one financing, with no current presence or claims in Turkey [22][24]

Financial Data and Key Metrics Changes - In Q2 2025, the company sold just over 148,000 ounces at an average realized price of $3,200 per ounce, reflecting the pre-merger assets [9] - Pro forma consolidated revenue for H1 would have been approximately $1,330,000,000 from 401,000 ounces, highlighting the enhanced scale and earnings power post-merger [9] - The company expects production, cash flow, and earnings to grow meaningfully in the coming quarters [7] Business Line Data and Key Metrics Changes - Greenstone's mining rates increased by 23% and processing rates improved by 20% over Q1 [10] - Month-to-date August mining rates averaged 200,000 tons per day, with the best performance reaching 227,000 tons per day [13] - Ballantyne is on track to deliver first gold approximately a month after the first ore to the plant, with a steady ramp-up to nameplate capacity expected in Q1 2026 [15] Market Data and Key Metrics Changes - The company is focused on disciplined capital allocation and rationalizing its portfolio to enhance shareholder value [16] - The sale of Nevada assets for $115,000,000 is an example of the company's strategy to create value and return capital to shareholders [16] Company Strategy and Development Direction - The company aims for operational excellence, advancing high-quality organic growth, and disciplined capital allocation [7] - The strategy emphasizes quality over quantity, focusing on production that enhances free cash flow and valuation [16] - The company is exploring opportunities to sell non-core assets to create value for shareholders [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to realize the vision of becoming a top quartile valued gold producer [17] - The company is optimistic about improving grades at Greenstone and expects quarter-on-quarter improvements [20][22] - Management highlighted the importance of maintaining open dialogue with stakeholders in all jurisdictions [27] Other Important Information - The company has invested over $25,000,000 in critical spares to support a smooth ramp-up at Ballantyne [15] - The company is actively engaged in exploration activities in Nicaragua and other assets, with significant potential identified [84] Q&A Session Summary Question: What is the expected improvement in grades at Greenstone? - Management indicated that month-to-date August grades are around one gram per ton, showing improvement over Q2, with expectations for continued improvements [20][22] Question: Is the equipment fleet sufficient for mining rates? - Management confirmed that all required equipment is in place and emphasized maximizing the value of committed capital [24][26] Question: What is the status of community agreements for Los Filos? - Management stated that agreements are in place with two communities, and discussions are ongoing with a third community [27] Question: Will there be more asset sales in the near future? - Management is open to exploring opportunities for selling non-core assets if it creates value for shareholders [30] Question: What are the expected cash costs for the company in the future? - Management provided a ballpark estimate of cash costs around $1,400 per ounce for Q2, with expectations for improvement as larger, lower-cost producers come online [91][92] Question: What are the key metrics to watch during the ramp-up of Valentine? - Management emphasized that tons milled will be the key metric during the ramp-up process [78] Question: What is the exploration potential across various assets? - Management highlighted ongoing exploration in Nicaragua, Valentine, and Mesquite, with plans to recommence exploration programs [84]

Financial Data and Key Metrics Changes - The company reported revenues of $97.3 million in Q2 2025, with an average realized price of $3,317 per ounce before hedges [14] - Net income was $21.6 million, or $0.7 per share, despite fair value adjustments negatively impacting earnings [14] - Cash flow from operating activities was $35.8 million, ending the period with a cash balance of approximately $115 million and no debt [15][21] - All-in sustaining cash costs (AISC) decreased by 10% during the quarter, with expectations for further reductions as production increases [5][16] Business Line Data and Key Metrics Changes - Gold production increased to just over 30,000 ounces in Q2, a 46% increase from Q1, bringing year-to-date production to over 51,000 ounces [5] - The mining contractor increased ore production from the Bore and Esasi by 5% quarter on quarter, with a total of 800,000 tons mined from the Abore Pit, an 18% increase compared to Q1 [9] - The processing plant saw improvements in throughput and recovery, contributing to increased gold production and sales [11] Market Data and Key Metrics Changes - The company operates in Ghana, which is noted for its safe and stable jurisdiction and mature regulatory framework, supporting organic growth [31] - The current market valuation is less than 40% of analyst consensus net asset value, indicating potential for value creation as gold prices remain high [31] Company Strategy and Development Direction - The company is focused on accelerating waste stripping at the Encran deposit and ramping up mill throughput to 5.8 million tonnes per annum following the commissioning of the secondary crusher [30][31] - There is a strong emphasis on capital allocation towards growth projects, particularly in the Encran area, while maintaining a robust cash position [15][42] - The exploration program at Obore is yielding positive results, with plans for additional drilling in the second half of the year [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger second half of the year due to increased production and operational improvements [30] - The company remains focused on reinvesting capital into its assets while considering shareholder returns as cash becomes more accessible [42] - Management highlighted the importance of addressing external factors impacting AISC, such as higher royalty costs and currency fluctuations [16][17] Other Important Information - The secondary crusher was commissioned ahead of schedule, which is expected to enhance production capabilities [12][20] - Exploration efforts at the Abore deposit have confirmed significant mineralization at depth, indicating potential for future underground mining operations [24][28] Q&A Session Summary Question: What should be expected for pre-stripping costs at Encran for the remainder of the year? - Management indicated a modest increase in pre-stripping costs in Q3, with a further increase expected in Q4, but not dramatically [37][38] Question: When can shareholders expect distributions given the strong cash position? - Management acknowledged the importance of building cash but emphasized the priority of reinvesting in growth projects, particularly at Encran, before considering shareholder returns [42][43] Question: What modifications are required for downstream equipment related to the secondary crusher? - Modifications include increasing conveyor speeds and optimizing settings on the primary crusher, with expectations to complete these by the end of Q3 [51][52] Question: Are the non-sustaining CapEx expectations still at $60 to $65 million for the year? - Management suggested that while the majority of costs for the secondary crushing upgrades were incurred in H1, some costs will carry into H2, and they may not reach the fully guided amount this year [54][56]

Financial Data and Key Metrics Changes - In Q2 2025, the company sold just over 148,000 ounces at an average realized price of $3,200 per ounce, with a pro forma consolidated revenue for H1 estimated at approximately $1,330,000,000 from 401,000 ounces if the Caliber transaction had been effective from January 1 [8][15][20] - The company is entering a pivotal phase with production, cash flow, and earnings expected to grow meaningfully in the coming quarters [7][15] Business Line Data and Key Metrics Changes - Greenstone's mining rates increased by 23% and processing rates improved by 20% over Q1, with August mining rates averaging 200,000 tons per day [9][12] - Ballantyne is on track to deliver first gold approximately a month after the first ore to the plant, with a steady ramp-up to nameplate capacity expected in Q1 2026 [14][15] Market Data and Key Metrics Changes - The company has created a significant Americas-focused gold producer anchored by two cornerstone Canadian mines, Greenstone and Ballantyne, enhancing scale and earnings power [6][15] Company Strategy and Development Direction - The strategy focuses on quality over quantity, emphasizing production that enhances free cash flow and valuation, advancing high-return organic growth, and rationalizing the portfolio [15][16] - The recent sale of Nevada assets for $115,000,000 is an example of the company's disciplined capital allocation and focus on shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to realize the vision of being a top quartile valued gold producer, with a focus on disciplined execution and capital allocation [15][16] - The company anticipates improved grades at Greenstone and is focused on minimizing dilution and ore losses [20][22] Other Important Information - The company has a significant stockpile of approximately 6,000,000 tons, with grades averaging just over half a gram [60] - The company is maintaining open dialogue with all stakeholders in jurisdictions where it operates, including ongoing discussions with a third community related to Los Filos [27][28] Q&A Session Summary Question: What is the expected improvement in grades at Greenstone? - Management indicated that month-to-date August grades are around a gram per ton, showing improvement over Q2, with expectations for quarter-on-quarter improvements [20][22] Question: Is all necessary equipment in place for mining rates improvement? - Management confirmed that all required equipment is in place and emphasized maximizing the value of committed capital [24][25] Question: What is the status of community agreements for Los Filos? - Management confirmed fully executed agreements with two communities and ongoing discussions with a third community [27][28] Question: Will there be more asset sales in the near future? - Management stated that they will explore opportunities for asset sales if they can create more value for shareholders [30][31] Question: What are the expected cash costs for the company moving forward? - Management indicated that cash costs for Q2 were around $1,400 per ounce, with expectations to reduce costs as larger, lower-cost producers come online [88][89] Question: What are the key metrics to watch during the ramp-up of Valentine? - Management highlighted that tons milled will be the key metric during the ramp-up process [74] Question: What is the exploration potential across assets? - Management noted ongoing exploration in Nicaragua and plans to recommence exploration programs in other assets, including Mesquite [78][80]

Financial Data and Key Metrics Changes - The company achieved record sales, EBITDA, and EPS in fiscal 2025, with full-year EPS growth of 4% exceeding initial guidance [6][7] - Gross margins expanded nearly 50 basis points, surpassing 30% for the first time in history [6][7] - Free cash flow reached over $465 million, up 34% year-over-year, marking a new record [18][19] Business Line Data and Key Metrics Changes - The Engineered Solutions segment saw a 2% organic daily sales increase, marking the first year-over-year growth in seven quarters [10][11] - The Service Center segment experienced a 0.4% organic sales decline year-over-year, but showed improvement from a 1.6% decline in the previous quarter [37][38] - Overall, the Engineered Solutions segment's sales increased by 20.7% year-over-year, with acquisitions contributing significantly to this growth [40][41] Market Data and Key Metrics Changes - Year-over-year trends across the top 30 end markets remained mixed, with 15 markets showing positive sales growth [11][12] - Declines were noted in machinery, primary metals, utility and energy, aggregates, and chemicals, while demand was solid in technology, pulp and paper, and food and beverage sectors [12][13] - Orders in the Engineered Solutions segment increased by a high single-digit percentage year-over-year, indicating a positive trend [13] Company Strategy and Development Direction - The company is focused on accelerating growth while being mindful of ongoing trade and interest rate policy uncertainties [22][24] - There is an emphasis on increasing growth with local customers through ancillary products and comprehensive service solutions [26][28] - The company plans to remain active in M&A, with a developing pipeline for fiscal 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute amid evolving tariff backdrops and inflationary pressures [20][21] - The outlook for fiscal 2026 includes expectations for organic sales growth of 1% to 4% and EBITDA margins of 12.2% to 12.5% [45][46] - Management noted that recent U.S. trade agreements and tax reforms could positively impact business sentiment and capital investment [23][24] Other Important Information - The company repurchased 656,000 shares for $153 million and increased its quarterly dividend by 24% [19] - The Hydrodyne acquisition is expected to contribute positively to EPS and EBITDA, with synergy realization ahead of schedule [87][88] Q&A Session Summary Question: Hydrodyne's sequential sales growth and EBITDA contribution - Management indicated that the stronger margin performance was due to leverage from SG&A falling through to EBITDA and quicker realization of synergy benefits [53][54] Question: Break fix MRO market trends - Management noted positive trends in local accounts and indicated that there are signs of firming demand [56][57] Question: Pricing contributions in guidance - Management expects pricing contributions to be similar to the previous quarter, with potential increases as the year progresses [62] Question: Engineered Solutions segment growth drivers - Management highlighted growth in data centers and semiconductor manufacturing as key components of the technology vertical [63][64] Question: LIFO and AR provisioning impacts - Management clarified that the majority of AR provisioning impacts were skewed towards the Service Center segment, with expectations for normalization moving forward [75][76]

Financial Data and Key Metrics Changes - Total EBITDA reached BRL2.7 billion, showing significant growth compared to the previous year, partially driven by the recognition of extraordinary tax credits [14] - Recurring EBITDA for the quarter totaled BRL1.648 billion, representing a 15% increase compared to the second quarter of last year [15] - Net income was BRL1.151 billion in the quarter, an increase of 134% compared to the same period last year [15] - Operating cash generation was BRL1.848 billion, a growth of 73% compared to the same period last year [16] - Net debt at the end of the second quarter was BRL12.635 billion, equivalent to 1.9x net debt to EBITDA, an increase from 1.7 times in the last quarter [17] Business Line Data and Key Metrics Changes - Ipiranga's volume sold in the second quarter was 2% lower compared to the same quarter last year, with a 3% reduction in diesel sales [18] - Ultragaz's recurring adjusted EBITDA was BRL442 million, 11% higher than the same period last year, reflecting better sales mix and efficiency [21] - Ultracargo's EBITDA totaled BRL141 million, which is 15% lower than the same period last year, mainly due to lower cubic meters sold [22] - Hydrovias showed a 10% increase in total volume compared to the same quarter last year, with a recurring adjusted EBITDA increase of 39% [23] Market Data and Key Metrics Changes - The fuel sector continues to experience illegalities, including increased imports of naphtha for selling as gasoline with reduced tax burden [5] - The implementation of single-phase taxation for hydrated ethanol began in May, which is expected to have a positive long-term impact on the market [5] - The LPG market in Brazil is highly competitive, with significant investments needed for efficiency and growth [7] Company Strategy and Development Direction - The company remains committed to long-term value creation and disciplined capital management [4] - Investments in Hydrovias are expected to enhance growth and value creation, with a focus on operational efficiency [4] - The company is actively addressing regulatory changes in the LPG market to ensure safety and competitiveness [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential positive effects of recent regulatory changes, although they acknowledged the initial negative impact on margins [31] - The company anticipates stronger volumes in the third quarter, supported by a trend towards normalization of inventories in the industry [19] - Management highlighted the importance of maintaining a robust capital structure while pursuing growth opportunities [6] Other Important Information - The company completed a buyback program of 25 million shares at an average cost of BRL16.64 [6] - An interim dividend of BRL326 million, equivalent to $0.30 per share, is scheduled for payment in August [6] Q&A Session All Questions and Answers Question: Impact on margins due to informal practices in the industry - Management noted some improvement in margins due to regulatory changes, but it is too early to fully assess the impact [28][34] Question: Competition from Petrobras in the LPG market - Management believes Petrobras could support regulatory consolidation but does not expect immediate changes in the market [35] Question: Discussion on draft discount and IOF tax - Management clarified that the draft discount is related to the IOF tax and that they are managing working capital effectively [30][37] Question: Expectations for cost reduction and EBITDA impact from Hydrovias consolidation - Management expects improvements in management and operations to positively impact EBITDA in the second half of the year [51] Question: Long-term perspective on Ultracargo's expansion projects - Management confirmed ongoing investments in expansion projects, with expectations of reaching EBITDA per cubic meter similar to other terminals by 2026 [58] Question: Capital allocation strategy and return rates for new investments - Management indicated that investments will be selective, focusing on opportunities with a return of about 20% [54][59]

Financial Data and Key Metrics Changes - Net sales and revenues decreased by 9% to DKK 12.018 billion, with equipment operations net sales also down 9% to DKK 10.357 billion [10] - Net income attributable to Deere and Company was €1.289 billion, or $4.75 per diluted share [10] Business Segment Data and Key Metrics Changes - Production and Precision Ag segment net sales fell 16% year over year to €4.273 billion, primarily due to lower shipment volumes and unfavorable price realization [10][11] - Small Ag and Turf segment net sales decreased by 1% year over year to €3.025 billion, with operating profit declining slightly to €485 million, resulting in a 16% operating margin [12] - Construction and Forestry segment net sales were down 5% year over year to DKK 3.059 billion, with an operating profit of €237 million and a 7.7% operating margin [19][20] Market Data and Key Metrics Changes - In the U.S. and Canada, large ag equipment industry sales are expected to decline approximately 30% in fiscal year 2025 due to high interest rates and elevated used inventory levels [13] - Small ag and turf industry demand in the U.S. and Canada is projected to decrease by 10% [14] - European market sentiment is improving, with expectations for industry sales to be flat to down 5% in fiscal year 2025 [15] Company Strategy and Development Direction - The company is focused on disciplined execution amidst challenging market dynamics, with a strong emphasis on managing production costs and inventory levels [6][8] - Deere is positioning itself to respond effectively to market demand inflections, having reduced inventories significantly across all business segments [29][32] - The company is investing in technology and precision agriculture solutions to drive future growth and improve customer outcomes [59][110] Management's Comments on Operating Environment and Future Outlook - Management noted that global uncertainty and high interest rates are impacting customer sentiment, leading to cautious capital purchases [28] - Despite challenges, there are signs of optimism in certain markets, with improved retail sales and order activity in specific segments [9][44] - The company remains committed to delivering long-term value for customers and shareholders, leveraging its operational efficiencies and market position [67][68] Other Important Information - Tariff costs in the quarter were approximately $200 million, with a forecasted pretax impact of nearly $600 million for fiscal year 2025 [37][38] - The company has seen a positive response to pricing actions taken in the North American earthmoving market, with retail settlements up mid-single digits year over year [39] Q&A Session Summary Question: Can you provide additional color on the quarter's performance? - Management highlighted the challenges posed by global trade dynamics and interest rate expectations, emphasizing the importance of focusing on controllable factors like production and inventory management [28] Question: What are the expectations for production in relation to retail demand next year? - Management indicated that production is expected to align closely with retail demand, particularly in large ag, while small ag and turf may see some lift due to underproduction this year [75] Question: Can you elaborate on the early order programs and their trends? - Management noted that while there is caution in ordering due to market uncertainty, early returns on planters and combines are positive, though it is still early in the programs [81][82] Question: How is the company addressing pricing competition in the market? - Management acknowledged the competitive pricing environment but expressed optimism about the market's ability to bear higher pricing, especially with positive retail sales trends [86] Question: What is the outlook for cash flow guidance? - Management explained that the cash flow guidance remains unchanged due to the uncertain environment, but they feel confident about inventory levels and retail sales trends [94]

Financial Data and Key Metrics Changes - The cash burn from operating and investing activities for Q2 2025 was $2.5 million, an increase from $2.2 million in Q2 2024 and $2.1 million in Q1 2024 [28] - Total cash, cash equivalents as of June 30, 2025, was $11.1 million, with no debt and a clean capital structure [30] - The net loss for Q2 2025 was $3 million compared to $2.7 million in Q2 2024 [32] Business Line Data and Key Metrics Changes - The company shipped updated solid state circuit breaker prototypes to its first design win customer, which is expected to generate several hundred thousand dollars in revenue in its first year and potentially millions in the second year [11][26] - Collaborations with five automakers, including four of the top 10 global automakers, have been established, indicating a growing interest in B TRAN technology for EV applications [7][9] Market Data and Key Metrics Changes - The company is seeing increased interest in B TRAN technology for circuit protection applications, particularly in Asia, which is the world's largest market for power electronics [7][12] - The automotive market is expected to contribute significantly to revenue growth, with a focus on solid state circuit breakers and EV contactors [27][79] Company Strategy and Development Direction - The company aims to broaden its collaboration with Stellantis and other automotive suppliers, focusing on commonality across their EV platforms [16][41] - Plans to increase the power rating of products later this year, which will enhance competitiveness in the market [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving milestones for 2025, including the start of revenue ramp and completion of third-party automotive qualification [27] - The company is well-positioned to mitigate impacts from tariffs and trade policies due to its asset-light business model and dual sourcing strategy [20] Other Important Information - The company has 96 issued V TRAN patents, with 74 pending, indicating a strong focus on innovation and intellectual property protection [25] - The company is actively engaged in educating the engineering community about its technology to facilitate adoption [58] Q&A Session Summary Question: How do we think about the opportunity with Stellantis? - The company expects to be involved with multiple brands under Stellantis' EV platform, aiming for commonality across their brands [36][38] Question: What is the estimated power semiconductor content in EVs? - The estimated total power semiconductor content in an EV is about $1,100, with the EV contactor contributing approximately $300 [43] Question: How many design win opportunities are there? - The company sees a growing funnel of design win opportunities, particularly in the industrial sector, with many companies interested in solid state circuit breakers [45][48] Question: What are the challenges to closing sales? - The primary challenge is the education process for engineers regarding the new technology, as opposed to technical challenges [58] Question: What is Ideal Power doing to drive sales ramp? - The company is utilizing internal sales teams, distributor relationships, and increasing awareness through trade shows and publications [60][62] Question: When will Ideal Power reach cash flow breakeven? - A few key design wins could lead to cash flow breakeven, with significant revenue potential from solid state circuit breakers and EV applications [67] Question: What is the cost comparison between B TRAN and IGBT? - B TRAN is expected to be about 10-20% more expensive than a single IGBT, but offers significant cost savings in bidirectional applications due to fewer components needed [84]