Financial Data and Key Metrics Changes - The company delivered positive results in FY 2025, reflecting top line growth supported by strong consumer demand and bottom line growth driven by disciplined cost management [2][3] - Approximately $700 million of debt was repaid in FY 2025, with plans to pay down an additional $500 million in each of the next two fiscal years [17] Business Line Data and Key Metrics Changes - The company is focusing on key growth platforms including Uncrustables, Cafe Bustelo, Meow Mix, Milk Bone, and Hostess Brands to drive organic growth [3][4] - A comprehensive plan is being executed to stabilize the Hostess brand and return it to growth [3] Market Data and Key Metrics Changes - The company remains well positioned to navigate dynamic input costs, including green coffee volatility, through its strong portfolio [4] - Approximately 90% of U.S. homes have a product from the company's portfolio, indicating a strong market presence [14] Company Strategy and Development Direction - The company is amplifying successful strategies and evolving its approach where necessary, with a focus on driving organic growth and embedding a transformation mindset [3] - There is a commitment to consumer-led innovation and leveraging data and insights to anticipate consumer needs [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic environment and highlighted the strength of its brand portfolio [4] - The company anticipates a leverage ratio at or below three times net debt to adjusted EBITDA by the end of FY 2027, providing financial flexibility for capital deployment [17] Other Important Information - Alex Schumate, a long-serving board member, is retiring, and his contributions were acknowledged [5][6] - The company plans to publicly announce final voting results on or before August 19, 2025 [12] Q&A Session Summary Question: When do you anticipate the Hostess debt will be repaid? - The company plans to pay down approximately $500 million of debt annually in each of the next two fiscal years, aiming for a leverage ratio at or below three times net debt to adjusted EBITDA by the end of FY 2027 [17] Question: How do you manage issues related to the hyper politicization of publicly traded corporations? - The company approaches each decision with responsibility, considering alignment with values and potential for positive change, while prioritizing business operations and stakeholder interests [18][19] Question: What effect will global tariffs have on the company? - The company is monitoring trade policy and tariffs, particularly regarding coffee, which cannot be grown in the U.S., and anticipates a 25% adjusted earnings per share impact for FY 2026 due to tariffs [20][21] Question: Did my shares count in the voting? - All shares are treated equally for voting purposes, as the company stopped treating long-term shares differently in 2022 [22][23]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $2,356,000 compared to a net income of $15,633,000 in Q2 2024, primarily due to a $16,900,000 gain recognized in June 2024 and increased exploration expenses [7][8][9] - For the six-month period ending June 30, 2025, the net loss was $500,664,000, contrasting with a net income of $14,560,000 for the same period in 2024 [8][10] - Cash on hand at June 30, 2025, was $13,200,000, down from $16,900,000 at December 31, 2024, attributed to feasibility study expenditures and recurring costs [10][11] Business Line Data and Key Metrics Changes - The feasibility study for the Mt Todd project indicated a 59% reduction in initial capital costs to $425,000,000, with a competitive capital efficiency of $93 per ounce of gold produced [13][14] - Average annual gold production is estimated at 153,000 ounces during the first 15 years and 146,000 ounces over the 30-year life of the mine [14] Market Data and Key Metrics Changes - The after-tax net present value (NPV) at a 5% discount rate is projected at $1,100,000,000 with an internal rate of return (IRR) of 27.8% at a gold price of $2,500 per ounce [14][15] - At a higher gold price of $3,300 per ounce, the after-tax NPV increases to $2,200,000,000 with an IRR of 44.7% [15] Company Strategy and Development Direction - The company is focusing on advancing the Mt Todd project, emphasizing safety, environmental stewardship, and stakeholder engagement [16][17] - The strategic shift towards a smaller initial scale for the Mt Todd project aims to preserve optionality for future expansion [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Mt Todd project's potential, highlighting its strong economic parameters compared to other Australian gold producers [17][33] - The company is committed to developing Mt Todd in compliance with high mining and ESG standards [17] Other Important Information - The company has achieved 1,369 consecutive days without a lost time accident at the Mt Todd site, reflecting its commitment to safety [6][16] - The feasibility study results are seen as a significant milestone, positioning Mt Todd as one of the most attractive development-stage projects in the gold sector [17] Q&A Session Summary Question: Financing and Profit Distribution Plans - Inquiry about potential financing through lenders or joint ventures and how profits would be utilized, whether for expansion or dividends [21][22] - Management indicated that while expansion opportunities would be considered based on market conditions, a portion of profits would be prioritized for shareholder returns [23] Question: Investor Interest and Confidentiality Agreements - Follow-up on increased investor interest and confidentiality agreements signed recently [24] - Management confirmed new confidentiality agreements have been signed, with ongoing discussions with potential partners following a recent conference [24] Question: Interest from Counterparties - Inquiry about which counterparties are showing interest in Mt Todd and how the company evaluates joint venture versus M&A options [26] - Management noted that confidentiality agreements have been signed with strategic investors and that the M&A space is becoming more interesting [27][28] Question: Open to Various Options - Management emphasized openness to joint ventures or acquisitions, depending on what provides the best value for shareholders [30]

Financial Data and Key Metrics Changes - The company reported an EBITDA of $362 million, a $67 million increase compared to 2024, reflecting a 23% increase [16][20][27] - Net income reached $186 million, which is $36 million higher than the previous year [17][22] - The net debt to twelve months EBITDA ratio remained stable at 3.3 times [7][24][27] Business Line Data and Key Metrics Changes - The company added 468 megawatts of renewable capacity through three projects that reached COD during the first half of the year [6][8] - Total renewable generation reached 1,094 gigawatt hours during the first half of the year [9] - The electricity margin improved by $13 million, driven by increased own generation and higher PPA revenue [18][19] Market Data and Key Metrics Changes - The company reduced its exposure to the spot market, especially during nonsolar hours, which was crucial in a high price environment [11][19] - The company’s generation capacity composition shifted significantly, with coal representing 34%, natural gas 22%, and renewables plus batteries 44% as of February 2025 [12] Company Strategy and Development Direction - The company is focused on energy transition by converting coal assets, expanding renewable portfolios, and investing in transmission [6][10][29] - A significant investment of approximately $1.4 billion is planned for renewable and battery projects between 2025 and 2027 [13][26] - The company aims to maintain a balanced portfolio by adding new renewable generation and storage while expanding the life of LNG generation assets [14][29] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining balance sheet metrics under control during the energy transition [32] - The company is closely monitoring regulatory discussions regarding contract renegotiations and is committed to respecting existing contracts [36][37] - Future EBITDA targets for 2027 are expected to be around 4.5 times EBITDA or below, although no precise figures were provided [33] Other Important Information - The company upgraded its EBITDA guidance for 2025 from a range of $525 million to $575 million to $650 million to $700 million [7][27] - CapEx guidance was also increased from $850 million to $900 million to a range of $900 million to $975 million [8][27] Q&A Session Summary Question: How will the energy transition impact EBITDA and net leverage metrics in 2027? - Management indicated a significant energy transition plan while targeting to keep balance sheet metrics under control, aiming for around 4.5 times EBITDA or below [32][33] Question: Thoughts on recent headlines about renegotiating regulated contracts? - Management stated they are in a clear position to defend contracts and are monitoring congressional discussions closely [36][37] Question: Is the increase in CapEx mostly related to the new BESS CALPA project? - The increase in CapEx reflects good execution of projects and includes the BESS CALPA project, which adds approximately $100 million to this year's CapEx [38][39] Question: Update on the future of coal assets and potential extensions? - Management confirmed they are following regulations for coal asset exit and are in discussions regarding potential extensions based on systemic risk evaluations [40][41] Question: Current exposure to the spot market? - The company has controlled exposure during night hours and is managing risks associated with solar hours effectively [42][43] Question: Plans for funding CapEx in the second half of the year? - Management plans to issue senior debt while recycling cash flow from operations into investments [47] Question: Details on the arbitration with Total Energies? - The company has booked interest from the arbitration decision, and while the situation is largely resolved, the supplier may still challenge it [58][60]

Financial Data and Key Metrics Changes - The company's core FFO was negative $7,200,000, and overall net operating income decreased to $9,800,000 from $11,800,000 in the prior quarter [12][21] - The overall segment NOI was $9,800,000 in Q2 2025, compared to $16,200,000 in the prior year, a decrease of $6,400,000 [21] - FFO was negative $7,900,000 or negative $10.42 per diluted share compared to negative $3,300,000 or negative $33.46 per diluted share in the prior year [23] Business Line Data and Key Metrics Changes - The office segment NOI for Q2 2025 was $5,500,000, down from $8,900,000 in Q2 2024, primarily due to decreased rental revenue and occupancy [21][22] - Multifamily segment NOI was $189,000 in Q2 2025, compared to $2,300,000 in the prior year, driven by unrealized losses and decreased revenues [22] - Hotel segment NOI for Q2 2025 was $4,200,000, slightly down from $4,300,000 in the prior year, attributed to decreased food and beverage sales [22] Market Data and Key Metrics Changes - The company executed approximately 140,000 square feet of leases through July 2025, representing over a 55% increase from the prior year [5][6] - The office lease percentage was approximately 70% at the end of Q2 2025, and approximately 80% when excluding the Oakland office building [18] Company Strategy and Development Direction - The company is focused on improving its balance sheet and liquidity, enhancing property-level performance, and evaluating asset sales as part of its broader strategic plan [7][9] - Key areas of focus include growing the multifamily portion of the portfolio and executing renovations to improve asset performance [10][19] Management's Comments on Operating Environment and Future Outlook - Management believes there is a meaningful opportunity to grow NOI in 2026, supported by improved office leasing activity and completed renovations [14] - The company is encouraged by market improvements in the adjacent San Francisco market, which historically influences Oakland [6][11] Other Important Information - The company has successfully secured property-level financing on seven assets, allowing for the repayment of a recourse credit facility with a balance of approximately $169,000,000 at the end of 2024 [7][8] - A $20,000,000 revolving credit facility was closed to support lending division originations [8] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries [26]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $15 million, a 14% increase from $13.1 million in the same quarter last year [12] - Operating loss decreased to $1.05 million from $1.4 million year-over-year, primarily due to lower amortization [12] - Net loss improved to $1.05 million or $0.04 per share, compared to a net loss of $1.4 million or $0.06 per share in the prior year [13] - Adjusted EBITDA turned positive at $600,000, compared to a negative $300,000 in the same quarter last year [13] - The company ended the quarter with zero debt and $1.9 million in cash and cash equivalents [13] Business Line Data and Key Metrics Changes - PodcastOne launched 14 new podcasts, increasing the total to 206 active shows [10] - Video views surged by 218% year-over-year across multiple platforms, indicating strong audience engagement [10] Market Data and Key Metrics Changes - PodcastOne ranked as a top 10 US podcast publisher for the eighth consecutive month, with a monthly unique US audience of 5.4 million and 20.3 million downloads and streams as of July 2025 [8] - The podcast advertising market is projected to see over $2.4 billion in investments this year, highlighting the industry's growth potential [7] Company Strategy and Development Direction - PodcastOne aims to leverage its vertically integrated model to drive long-term value for creators, advertisers, and shareholders [7] - The company is expanding its video production and distribution efforts to enhance audience engagement [11] - PodcastOne is actively exploring M&A opportunities, particularly in acquiring talent and podcast platforms [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about building on momentum with high-profile initiatives and events planned for the upcoming months [15] - The company expects full-year revenues to be between $56 million and $60 million, representing at least an 8% increase from the previous fiscal year [14] - Adjusted EBITDA for the full year is anticipated to be between $3 million and $5 million [14] Other Important Information - PodcastOne has upgraded its order management system to improve operational efficiency and sales processes [17] - The company is focused on compelling content, strategic monetization, and maintaining trusted relationships with talent and advertisers [17] Q&A Session Summary Question: How does the growth in video views translate into revenue? - Management indicated that current contracts consider both audio and video views, allowing for higher rates per spot due to increased video viewership [21][22] Question: What is the current M&A environment for platforms? - Management noted that the platform side is dominated by a few major players, but there are still interesting opportunities for acquisition [26][29] Question: What factors could drive revenue to the high end of guidance? - Acquiring a company with good revenues could push the numbers higher, while not acquiring would keep it at the lower end [33] Question: How is stock-based compensation affecting cost of sales? - Management confirmed that stock-based compensation is being used to reduce cash payments, which is part of their strategy to manage costs [39][40] Question: How do consumers interact with video podcasts compared to audio-only? - Management noted that video consumption is significant, with many viewers engaging with content actively, while others may listen passively [49][50]

Financial Data and Key Metrics Changes - CAE reported record revenue of $4.7 billion, an increase of 10% from the previous year [30] - Adjusted segment operating income reached $732 million, up 33% from $550 million in fiscal 2024 [30] - Free cash flow was $814 million, reflecting disciplined capital management [30] - Adjusted backlog increased to $20.1 billion, up 66%, indicating strong visibility and long-term stability [30] Business Line Data and Key Metrics Changes - Civil aviation revenue was $2.7 billion, up 11%, with adjusted segment operating income of $581.5 million, an increase of 6% [31] - Civil adjusted backlog reached a record $8.8 billion, reinforcing CAE's position as the leading training provider [31] - Defense segment revenue was $2 billion, up 8%, with significant improvements in adjusted segment operating income [34] Market Data and Key Metrics Changes - The global fleet of aircraft is expected to nearly double over the next two decades, with a demand for 300,000 new pilots in the next ten years [31] - Canada is set to reach 2% of GDP on defense spending this year, five years ahead of schedule, with a commitment to 5% by 2030 [34] - NATO is discussing defense spending targets as high as 5% in response to security concerns [34] Company Strategy and Development Direction - CAE aims to focus on long-term strategy, disciplined capital allocation, and creating sustainable value for shareholders [4] - The company is well-positioned to lead in defense and security markets, leveraging government contracts and modernization initiatives [34] - CAE plans to prioritize disciplined capital deployment and reduce leverage while generating strong free cash flow [39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of customer relationships and the commitment to safety and performance as core values [41] - The fundamentals of civil aviation and defense spending remain strong, providing a solid foundation for future growth [39] - The new CEO emphasized the potential to leverage advanced defense technologies across CAE's portfolio [50] Other Important Information - The company underwent a leadership transition, with Matthew Bromberg appointed as the new president and CEO [6] - The adjusted backlog in defense doubled to $11.3 billion, reflecting strong market momentum [35] Q&A Session Summary Question: Role of the Executive Chair and collaboration with the new CEO - The Executive Chair will focus on long-term strategy and capital allocation while the CEO manages daily operations, ensuring a close working relationship [55][56] Question: Impact of American tariffs on CAE - CAE is well-positioned regarding tariffs, with approximately 70% of work done in-country and key products exempt under USMCA [59][60] Question: Timing of defense opportunities translating into revenue - Revenue from defense contracts is already being realized, although the procurement process can take time [62] Question: Profitability differences between civil and defense segments - Defense contracts often have limitations on profitability due to government regulations, but they provide stable long-term revenue streams [67][69] Question: Credit rating concerns despite stable business - The company has achieved deleveraging targets and is confident that credit agencies will recognize this progress [76][78]

Financial Data and Key Metrics Changes - CAE reported record revenue of $4.7 billion, an increase of 10% from the previous year [31] - Adjusted segment operating income reached $732 million, up 33% from $550 million in fiscal 2024 [31] - Free cash flow was $814 million, reflecting disciplined capital management [31] - Adjusted backlog increased to $20.1 billion, up 66%, indicating strong visibility and long-term stability [31] Business Line Data and Key Metrics Changes - Civil aviation revenue was $2.7 billion, up 11%, with adjusted segment operating income of $581.5 million, an increase of 6% [32] - Civil adjusted backlog reached a record $8.8 billion, reinforcing CAE's position as a leading training provider [32] - Defense and security segment revenue was $2 billion, up 8%, with significant improvements in adjusted segment operating income [35] Market Data and Key Metrics Changes - The global fleet is expected to nearly double over the next two decades, with a demand for 300,000 new pilots in the next ten years [32] - Canada is set to reach 2% of GDP on defense spending this year, five years ahead of schedule, with a commitment to 5% by 2030 [34] - NATO is discussing targets as high as 5% in response to increased security concerns, indicating a growing defense market [34] Company Strategy and Development Direction - CAE aims to focus on long-term strategy, disciplined capital allocation, and creating sustainable value for shareholders [4] - The company plans to leverage advanced defense technologies across its portfolio, including commercial aviation [50] - CAE will prioritize operational efficiency and capital allocation to generate strong cash flow and support strategic investments [50] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong fundamentals in both civil aviation and defense, with enduring demand and growth opportunities [40] - The company is well-positioned to deliver integrated training solutions that support modernization across multiple domains [40] - Management expressed confidence in achieving deleveraging targets and improving credit ratings in the future [81] Other Important Information - The leadership transition to Matthew Bromberg as the new CEO is expected to bring fresh perspectives and continued growth [6][46] - The company has a strong commitment to customer satisfaction and maintaining high standards of quality and safety [42] Q&A Session Summary Question: What is the role of the Executive Chair and collaboration with the new CEO? - The Executive Chair will focus on long-term strategy and capital allocation while the CEO manages daily operations, ensuring a strong partnership [56][58] Question: How will American tariffs on Canada impact CAE? - CAE is well-positioned as approximately 70% of its work is domestic and key products are exempt under USMCA [61][62] Question: When will defense opportunities translate into revenue for CAE? - Revenue from defense contracts is already being realized, although the procurement process can take time [64][66] Question: Why is defense profitability lower compared to civil? - Defense contracts often have profit limitations due to government regulations, but they provide stable long-term revenue streams [72][74] Question: Why is CAE's credit rating not stronger despite stable business? - The company is focused on achieving deleveraging targets, which should positively influence credit ratings in the future [81][82]

Financial Data and Key Metrics Changes - The second quarter revenue was $4,500,000, a decrease of $900,000 from $5,400,000 in the prior year, primarily due to discontinued contracts in premium services and losses from two customers in proactive services [11] - Gross profit decreased by $500,000 to $1,600,000, with a gross margin of 35% compared to 39% in the previous year [11] - Operating expenses were reduced to $1,900,000 from $2,600,000, contributing to a net loss of $290,000, an improvement from a net loss of $350,000 in the prior year [12] - Adjusted EBITDA improved to $300,000 from $200,000, reflecting cost reduction efforts [13] - Cash balance increased to $6,100,000, up $3,300,000 from $2,800,000 at the end of 2024 [13] Business Line Data and Key Metrics Changes - Revenue from periship decreased approximately 14% compared to the second quarter of the previous year, largely due to the loss of large customers in 2024 [4] - New customer sales and expanded revenues from existing customers partially offset the decline in periship revenue [5] - The company has successfully reduced operating expenses by approximately 27% compared to 2024 [5] Market Data and Key Metrics Changes - The company has established relationships with two freight carriers that dominate the non-U.S. Postal Service partial shipments market in the U.S., enhancing its service capabilities [7] - The integration of technology with these new freight carriers is expected to take a couple of months, with material impacts anticipated in 2026 [21] Company Strategy and Development Direction - The primary focus for 2025 is on organic growth through expanding revenues with directly contracted periship customers [6] - The company is also evaluating transformative and tuck-in acquisitions while maintaining a disciplined approach to capital allocation [9][24] - A treasury strategy has been adopted to improve interest income from available cash, aiming to increase annualized interest income from approximately 4% to over 8% [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate positive cash flow and maintain a strong balance sheet, which positions the company for meaningful shareholder returns [15] - The anticipated growth from new customer relationships and improved operational efficiencies is expected to contribute to future revenue growth [6][15] Other Important Information - The company purchased 201,000 shares of its stock during the quarter at a cost of $153,000, with $330,000 remaining under the share repurchase program [12] - The company has $1,000,000 available under its line of credit with no outstanding borrowings [14] Q&A Session Summary Question: What was the authentication revenue in the quarter? - The authentication revenue was $27,000 [18][19] Question: What is the growth rate excluding the impact of lost business on periship? - It is difficult to quantify precisely, but the impact is expected to be a single-digit percentage one way or the other [19] Question: When can the impact of the new carrier be expected? - The integration will take a couple of months, and significant changes are not expected until 2026 due to seasonal shipping constraints [21] Question: What are the capital allocation priorities moving forward? - The focus is on transforming periship and evaluating potential acquisitions, with a careful approach to ensure meaningful returns for shareholders [22][24]

Financial Data and Key Metrics Changes - For the six months ended June 30, 2025, revenue was approximately $1.25 million, down from $1.75 million in the same period in 2024, reflecting a decrease of about 29% [12] - Gross profit for the first half of 2025 was $349,000 compared to $799,000 in the prior year, resulting in a gross margin of 28% versus 46% in 2024 [12] - Total operating expenses decreased to $7.39 million from $7.68 million a year ago, indicating efforts to optimize spending [13] - The net loss for the first half of 2025 was $6.95 million or $0.12 per share, compared to a net loss of $6.69 million or $0.14 per share in the same period last year [13] Business Line Data and Key Metrics Changes - The company is experiencing a positive shift in adoption in Europe, particularly in breast cancer cryoablation, driven by clinical evidence and increased usage [8][9] - The ProSense technology was featured prominently at several high-impact medical forums, indicating growing interest and adoption [9] Market Data and Key Metrics Changes - The company believes there is a significant opportunity to change the paradigm of breast cancer care for an estimated 46,000 women in the U.S. annually [7] - The FDA has requested a post-market study to be conducted after marketing authorization, which the company is actively preparing for [8] Company Strategy and Development Direction - The company aims to strengthen its financial position and has successfully closed a $10 million rights offering, which was significantly oversubscribed [10] - The company plans to leverage upcoming medical conferences to drive awareness and adoption of its technology [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about receiving FDA approval before the end of 2025 and believes that this could accelerate the company's growth trajectory [4][10] - The company is preparing for commercialization efforts in 2026, contingent on receiving FDA clearance [25] Other Important Information - As of June 30, 2025, the company had $5.38 million in cash, cash equivalents, and short-term deposits, which included a $2 million loan from a major shareholder [14] - The company is actively working on a post-market study involving 400 patients across 30 sites, which is expected to conclude within three years [20] Q&A Session Summary Question: What is the nature of the additional information that FDA requested? - The FDA requested important information regarding the post-market study, including a list of potential participating sites and a recruitment plan [19] Question: Will the additional information lead to an increase in the budget for the trial? - The final budget will be decided once there is a full understanding with the FDA regarding all requests [21][23] Question: Are you still expecting late 2026 for CPT one code from AMA? - The company plans to start recruitment for commercialization as soon as clearance is received and will apply for CPT one code thereafter [25][26] Question: Has the submission for the post-market study been accepted by the FDA? - Yes, the submission has been accepted, and the FDA is currently reviewing the protocol [29][30] Question: Is the current cash position sufficient to fund operations through FDA clearance? - The company currently has enough funding to get through FDA authorization, but final costs will be assessed once the budgeting for the post-market study is finalized [51][52]

Financial Data and Key Metrics Changes - In Q2 2025, the company recorded revenue of $1.5 million from research and development services, compared to no revenue in Q2 2024 [19] - Gross profit for Q2 2025 was $131,000, with a net loss of $13.4 million, up from a net loss of $10.9 million in Q2 2024 [19][22] - Year-to-date revenue reached $2 million, all from R&D services, with a total net loss of $30.7 million compared to $26.4 million in the same period last year [22] Business Line Data and Key Metrics Changes - Operating expenses for Q2 2025 were $15.8 million, an increase from $14 million in Q2 2024, primarily due to higher R&D costs [20] - R&D expenses rose to $10.1 million in Q2 2025 from $8.3 million in Q2 2024, reflecting increased production of additive components [20] Market Data and Key Metrics Changes - The introduction of a 30% investment tax credit for customers deploying linear generators or fuel cells is expected to drive customer adoption and interest in the company's Carnot power module [5][18] - The company signed a strategic MOU with Al Qaraif Industries for a potential $1 billion opportunity to deploy Carnot power modules in Saudi Arabia [16] Company Strategy and Development Direction - The company aims to execute the early adopter program and prepare for a commercial launch in 2026, focusing on scaling manufacturing and improving product performance [27] - The transition to in-house production of linear electric motors (LEMs) is expected to enhance quality and execution, minimizing risks of delays [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about overcoming key engineering and manufacturing challenges, which will facilitate continued production and customer deployments [4][18] - The company anticipates delivering all 10 early adopter units in 2025, with commercialization efforts extending into 2026 to incorporate customer feedback [12][24] Other Important Information - The company achieved a significant technical milestone by confirming the effectiveness of a new powder removal method for the REGEN component, which is critical for the Carnot system's performance [10] - The company has received a Phase II small business innovation research contract from the U.S. Navy for further R&D work, focusing on software development for multi-megawatt Carnot systems [14] Q&A Session Summary Question: Can you share more on the 30% tax credit? - Management emphasized the importance of the tax credit for both the company and its customers, highlighting its simplicity and long-term applicability without fuel stipulations [30][32] Question: Are there other large issues that need to be resolved prior to shipping? - Management confirmed that the main issues regarding LEMS and REGEN have been addressed, allowing for resumed production and improved performance [33][35] Question: How is the Navy planning to use the Carnot, and are there other military contracts being pursued? - The Carnot is intended for use in autonomous unmanned vessels and stationary applications at military bases, with ongoing efforts to expand military applications [37][39]