Financial Data and Key Metrics Changes - Adjusted EBITDA for the full year rose more than $10 million to $24.9 million, with almost $17 million in positive free cash flow, a $42 million improvement over fiscal 2024 [4][16] - Net sales for the fourth quarter were $215.9 million, a decline of 10.5%, with a gross margin expansion of 890 basis points to 53% [17][18] - Full-year net sales were $565.2 million, a decline of 9.8%, with adjusted EBITDA reaching $24.9 million, marking a $10.3 million improvement [21][19] Business Line Data and Key Metrics Changes - Men's and women's apparel drove strong margin improvements despite year-over-year sales declines, with notable growth in outerwear and the Souped-Up Sweats collections [6][22] - Retail channel sales grew by 3.5%, fueled by comparable sales growth and the launch of two new stores, while the direct channel saw a 16% decline for the full year [22][21] - SG&A expenses for the year were $310.5 million, which is $27.1 million or 8% lower than last year [24] Market Data and Key Metrics Changes - Mobile sales penetration increased by 160 basis points, while the retail channel outperformed the direct channel due to lower price sensitivity among retail customers [21][22] - The promotional reset resulted in declines in both men's and women's sales, with drops of 9.2% and 9.7% respectively, but profitability improved across product categories [22][23] - Inventory at year-end was $131.3 million, a $35.2 million or 21.1% reduction compared to the prior year [25] Company Strategy and Development Direction - The company is focused on building brand awareness with a full funnel marketing approach and enhancing operational efficiency through inventory management and SKU reduction [11][10] - Future plans include further investments in the Adairsville fulfillment center to boost productivity and streamline logistics [9][32] - The company aims to stabilize sales through increased assortment productivity and strengthen its brand to retain existing customers while acquiring new ones [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's stronger financial and operational position entering 2026, with improved liquidity and inventory levels [14][27] - The outlook for fiscal year 2026 projects net sales in the range of $540 million-$560 million, anticipating a decline in the first half followed by stabilization in the second half [28][29] - Management highlighted the importance of maintaining disciplined promotional strategies and efficient inventory management to offset tariff impacts [11][31] Other Important Information - The company has completed the first two phases of streamlining fulfillment operations, closing two fulfillment centers to enhance efficiency [9] - Capital expenditures for the year were $17.8 million, with funds allocated primarily to investments in warehouse management and new store openings [26] Q&A Session Summary Question: Why is the retail channel holding up better than online? - Management attributed the strength in the retail channel to greater resilience and less price sensitivity among customers, along with strategic inventory allocation [36][37] Question: Why is there a projected decline in the first half of the year? - The decline is primarily driven by the digital channel, especially due to the promotional reset [39] Question: Can inventory turns improve to four times a year? - Management indicated that SKU reduction and improved supply chain efficiency could enhance inventory turns over time [40][41]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the full year rose more than $10 million to $24.9 million, with almost $17 million in positive free cash flow, a $42 million improvement over fiscal 2024 [4][17] - Net sales for the fourth quarter were $215.9 million, a decline of 10.5%, with a gross margin expansion of 890 basis points to 53% [18][19] - Full-year net sales were $565.2 million, a decline of 9.8%, with adjusted EBITDA reaching $24.9 million, marking an improvement of $10.3 million [20][21] Business Line Data and Key Metrics Changes - Men's and women's apparel drove strong margin improvements despite year-over-year sales declines, with notable growth in outerwear and the Souped-Up Sweats collections [6][23] - Retail channel sales grew by 3.5%, fueled by comparable sales growth and the launch of two new stores, while the direct channel experienced a 16% decline for the full year [23][24] - SG&A expenses for the year were $310.5 million, which is $27.1 million or 8% lower than last year, with a successful target of $10 million in expense savings [25] Market Data and Key Metrics Changes - Mobile sales penetration increased by 160 basis points, indicating a shift in consumer purchasing behavior [22] - The promotional reset resulted in a decline in both men's and women's sales, with drops of 9.2% and 9.7% respectively, but profitability improved across product categories [23][24] - Inventory at year-end was $131.3 million, a $35.2 million or 21.1% reduction compared to the prior year [26] Company Strategy and Development Direction - The company is focused on building pricing and margin integrity through promotional resets, efficient inventory management, and SKU reduction [12][34] - A full funnel marketing approach is being implemented to reactivate the customer base, build retention, and attract new customers [14][34] - The company plans to enhance its logistics network and streamline fulfillment operations, with significant investments in the Adairsville fulfillment center [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's stronger financial and operational position entering 2026, with better liquidity and improved inventory levels [15][28] - The outlook for fiscal year 2026 projects net sales in the range of $540 million-$560 million, anticipating a decline in the first half followed by stabilization in the second half [28][29] - Management highlighted the importance of maintaining a disciplined promotional strategy and focusing on core products to drive future growth [34] Other Important Information - The company has completed the first two phases of streamlining and consolidating fulfillment operations, with plans for further productivity enhancements in 2026 [10][12] - The transition to an asset-based lending facility has resulted in lower borrowing costs and greater flexibility, strengthening the company's liquidity position [27][28] Q&A Session Summary Question: Why is the retail channel holding up better than online? - Management attributed the strength in the retail channel to greater resilience and less price sensitivity among customers, along with strategic inventory allocation that improved in-stock levels [36][38] Question: Why is there a projected decline in the first half of the year? - The decline is primarily driven by the digital channel, especially due to the promotional reset, while retail stores are expected to see positive bumps [40] Question: What improvements are expected in inventory turns? - Management indicated that improvements in SKU reduction and supply chain efficiency would enhance inventory turns over time [41][42]

Financial Data and Key Metrics Changes - Net investment income for Q4 2025 was $0.36 per share, and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [4] - Gross investment income totaled $14.2 million for Q4, down from $15.1 million in Q3, primarily due to one-time fees from unscheduled repayments recognized in Q3 [17] - Net investment income for Q4 was $8.3 million, or $0.36 per share, compared to $9.5 million, or $0.42 per share in Q3 [18] - Net assets totaled $303.4 million at quarter end, with a net asset value per share of $13.30, slightly up from $13.27 in Q3 [18] Business Line Data and Key Metrics Changes - The company funded $31.7 million across 7 new investments in Q4, including 4 new borrowers, with 100% of these being senior secured loans [5][20] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with 25% of the portfolio invested in non-cannabis companies [16] Market Data and Key Metrics Changes - The broader BDC market faced negative sentiment, with many BDCs trading below net asset value by the end of 2025, leading to concerns about potential dividend cuts and losses in existing loan books [5] - The weighted average yield on debt investments was 15.8%, compared to 10.8% for the average public BDC [9] Company Strategy and Development Direction - The company focuses on direct loans to privately held companies in niche markets, particularly the cannabis sector and lower middle market, aiming for attractive returns with downside protection [4] - The strategy emphasizes disciplined underwriting and structuring of investments to deliver above-market risk-adjusted returns, with a focus on first lien senior secured loans [23] - Recent M&A activity in the cannabis market has increased the company's pipeline for 2026, with a total of approximately $732 million in potential debt transactions [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent shift in cannabis policy at the federal level could lead to increased cash flow for borrowers and higher equity valuations, although uncertainty remains until a regulatory framework is established [12][13] - The company believes it is well-positioned to benefit from developments in the cannabis industry, despite managing the business under the assumption that the regulatory environment may not change [14] Other Important Information - The company has a low debt-to-equity ratio of 0.08x, significantly below the BDC average of 1.2x, and has no non-accruals compared to an industry average of 3.3% [11] - A dividend of $0.34 was announced, marking the sixth consecutive quarter at that rate, with total dividends for the year amounting to $1.36 per share [11] Q&A Session Summary Question: Pipeline details and growth - The $732 million pipeline includes opportunities across the entire Chicago Atlantic platform, with an increase from approximately $600 million reported last quarter [28][30] Question: Impact of rescheduling on borrower discussions - Rescheduling has led to increased eagerness among operators to invest in their businesses and pursue exits, creating more financing opportunities [32] Question: State-level activity and catalysts - There is increased consolidation activity in states with attractive fundamental economics, such as Virginia, Ohio, and Missouri [34] Question: Credit facility and financing options - There is potential to increase the revolver in 2026, along with other financing options available to BDCs [35] Question: Repayments and their implications - The early repayments observed were idiosyncratic and reflective of broader transaction activity in the market, leading to more refinancing opportunities [43]

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $3.7 million for 2025, reflecting increased operational expenses due to investments in infrastructure and project development [2][3] - Cash at year-end was approximately $6.3 million, providing a solid financial base for ongoing operations [3] - Operating expenses were reduced by 4% in Q4 compared to the previous quarter, with R&D expenses down by 26% and sales and marketing expenses reduced by 32% [3] Business Line Data and Key Metrics Changes - The company advanced key strategic projects, including the establishment of a U.S. pilot at the Port of Los Angeles and continued progress on projects in Europe and Asia [2][5] - The pilot project at the Port of Los Angeles was successfully launched and completed, achieving its technical and operational objectives [8] - The project at Jaffa Port in Israel maintained zero downtime and generated stable electricity under varying wave conditions, achieving peak production levels [8][9] Market Data and Key Metrics Changes - The company is positioned to meet the growing electricity demands driven by AI, particularly from data centers and high-performance computing located in coastal regions [4][10] - The development of projects in Portugal and Taiwan represents the first steps towards larger commercial wave energy arrays [5][9] Company Strategy and Development Direction - The company aims to transition from pilot projects to larger commercial deployments, focusing on operational and financial efficiency [4][5] - The intersection of AI and energy demand is seen as a significant opportunity, with plans to leverage existing coastal infrastructure for wave energy generation [10][11] - The exploration of the WaveGPT platform aims to optimize performance and improve energy forecasting through AI and advanced analytics [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of energy infrastructure in supporting the growing AI industry and the need for reliable renewable energy sources [6][7] - The company expressed confidence in its technology and project pipeline, believing it is well-positioned for the next phase of growth [11] Other Important Information - The company is maintaining a diversified global pipeline, allowing progress on multiple opportunities while developments in Portugal are finalized [9] Q&A Session Summary - No specific questions or answers were provided in the content, as the conference concluded without a Q&A segment [12]

Financial Data and Key Metrics Changes - In Q4 2025, consolidated sales were $94 million, down 34.5% year-over-year, primarily due to declines in direct-to-consumer and retail sales channels, especially within the Solo Stove segment [13] - Full-year sales for 2025 were $167.2 million, with Chubbies achieving $122.9 million in sales, representing a 9.1% growth [17] - Adjusted EBITDA for Q4 was positive $9.6 million, a 52% year-over-year improvement, reversing the negative EBITDA reported in Q3 [16] Business Line Data and Key Metrics Changes - Solo Stove segment sales declined, while Chubbies delivered over 9% year-over-year growth, driven by strong online demand and strategic partnerships [8] - New products accounted for approximately 25% of Q4 sales in the DTC channel, indicating strong reception and performance [29] Market Data and Key Metrics Changes - The fire pit category remained flat, with increased low-end competition impacting market share, although Solo Brands maintained a higher average order value [27] - Chubbies gained market share in the apparel category, particularly with new introductions in their shorts line [27] Company Strategy and Development Direction - The company is focused on a product-led turnaround, aiming to build a structurally leaner, profit-driven business while simplifying operations and reducing costs [5][7] - Strategic investments are being made for future growth, with a strong pipeline of new product launches scheduled for 2025 and beyond [8][20] - The company plans to continue investing in innovation across Solo Stove and Chubbies, while also expanding its Water Sports assortment [22] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the consumer market and geopolitical factors affecting business, emphasizing the need to stem revenue decline in the Solo Stove division [41] - The company is set up to efficiently convert revenue gains into cash flow due to a significantly reduced cost structure [42] Other Important Information - The company ended the year with $20 million in cash and cash equivalents and reduced inventory balances by nearly 25% year-over-year [18] - A streamlined organizational structure was implemented, moving to a single class common stock effective January 1, 2026, enhancing corporate governance [12] Q&A Session Summary Question: Performance across different brands in Q4 - Management noted that the fire pit category was flat with increased low-end competition, while Chubbies gained market share with new product introductions [27] Question: Performance of new products and expectations for 2026 - New products represented about 25% of Q4 sales in the DTC channel, with strong reception for recent launches [29] Question: Future cost-cutting measures - Management indicated ongoing cost reductions, particularly in payroll, and emphasized the need to operate as a leaner, profitable company [31]

Financial Data and Key Metrics Changes - For Q4 2025, total sales were $112.1 million, down from $119.2 million in Q4 2024, with comparable sales decreasing by 7.3% [30] - Full-year total sales were $435 million compared to $467 million in the previous year, with comparable sales down 8.4% [30] - Gross margin for Q4 2025 was 40.8%, down from 44.4% in Q4 2024, primarily due to lower merchandise margin and occupancy deleverage [31] - Full-year gross margin was 43.4%, down from 46.5% the previous year, reflecting occupancy deleverage and the impact of tariffs [31] - SG&A expenses for Q4 were 42.4% of sales, compared to 41.7% in Q4 2024, while full-year SG&A expenses were $187.4 million, down from $198.3 million [32] Business Line Data and Key Metrics Changes - Comparable sales in stores decreased by 8.6% in Q4, while the direct business saw a decline of 4.3% [30] - The sales results in Q4 were driven largely by traffic pressure in stores, with conversion holding up better than traffic [11] - Private brands outperformed national collection brands, with strong performances in casual pants, denim, and tailored clothing [13] Market Data and Key Metrics Changes - The company reported a significant impact from severe Arctic weather in January, which disrupted store operations and sales [4][11] - The company observed a positive shift in sales momentum into 2026, with February showing a -1.3% decline, an improvement from January's -12.9% [5][54] Company Strategy and Development Direction - The company is focusing on strategic initiatives such as FiTMAP, assortment, and marketing to drive customer engagement and sales [7][9] - The strategic focus for 2026 is to stabilize the business and drive back to profitable growth, emphasizing customer engagement and cost control [9] - The company plans to increase private brand penetration from approximately 57% to over 60% in fiscal 2026 and over 65% in fiscal 2027 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved sales momentum and expects continued improvement in comparable sales throughout 2026 [5][54] - The company is navigating challenges in the big and tall retail sector, including customer spending behavior influenced by economic factors [50][52] - Management highlighted the importance of adapting promotional strategies to drive customer engagement without undermining brand value [25][26] Other Important Information - The company ended the year with $28.8 million in cash and investments and no outstanding debt, providing flexibility for future operations [34] - A non-cash charge of $20.4 million was taken in Q4 to establish a full valuation allowance against deferred tax assets due to net operating losses [35] Q&A Session Summary Question: Can you provide more details on the FiTMAP technology and its momentum? - Management noted that FiTMAP has been rolled out in 188 stores, with a focus on increasing guest-level scanning penetration and training associates to maximize the technology's potential [39][41] Question: What is the competitive response in the big and tall category? - Management indicated that the big and tall market is facing challenges, but they believe customers will return to shopping as needs arise, despite current economic pressures [50][52] Question: What is the expected gross margin impact from increasing private brand penetration? - Management suggested that shifting to private brands could result in a gross margin improvement of 100 to 200 basis points over the next two years [57][60]

Financial Data and Key Metrics Changes - In 2025, consolidated revenue increased by 14.3% to $50.1 million, driven primarily by growth in Peru and Colombia, which saw increases of 31% and 14.8% respectively [19] - Operating GLA increased by 13.3% to 5.8 million sq ft across 34 properties, while leased GLA rose by 6.3% to nearly 6 million sq ft [20] - Cash NOI increased by 12.4% to $40.3 million, reflecting higher occupancy and rental rates during the year [24] Business Line Data and Key Metrics Changes - Net operating income (NOI) grew by 29.8% in Q4 and 11.9% for the full year, indicating strong operational performance [5] - Average rent per sq ft increased by 11% to $8.65, benefiting from lease renewals and market rate adjustments [19] Market Data and Key Metrics Changes - In Mexico, the real estate market showed encouraging signs with gradual rent increases and improved net absorption, despite limited new supply [10] - In Peru, PepsiCo's occupancy of a new facility significantly contributed to growth, with construction of additional buildings on track for future revenue increases [11] Company Strategy and Development Direction - The company is focusing on expanding its presence in Mexico through a strategic partnership with Fortem Capital, representing a $200 million investment [7] - The partnership is expected to increase GLA by 36% compared to year-end 2025, allowing for a more substantial growth pipeline [9] - The company aims to leverage its established tenant relationships and expand into key logistics submarkets in Mexico [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Mexican market, noting that recent M&A activity could lead to market segmentation that benefits the company [29] - The company anticipates significant rental growth in 2026 as leases roll over to market rates and new buildings become operational [35] Other Important Information - The company has launched a renewed brand identity and website to reflect its evolution and enhance visibility in the market [17] - Book value per share stood at $8.12 as of year-end 2025, indicating a potential value opportunity for investors [16] Q&A Session Summary Question: Insights on the Mexico market and M&A activity - Management indicated that M&A activity in Mexico bolsters confidence in the market and may lead to segmentation, allowing the company to focus on mid-market opportunities [29][30]

Financial Data and Key Metrics Changes - Revenue increased by 2.7% to $671.3 million for fiscal 2026, with adjusted operating income growing by 28.7% to $34.8 million, reflecting strong execution across strategic priorities [4][14] - Fourth quarter sales rose by 5.6% to $191.6 million, driven by the U.S. wholesale and retail business [4][15] - Adjusted operating income for the fourth quarter grew by 6.2% to $14.4 million, with strong operating cash flow of $57.9 million and ending the year with $230 million in cash and no debt [5][19] Business Line Data and Key Metrics Changes - Strong performance in the Fashion Watch and Accessible Luxury segments, particularly among younger consumers and women [6][10] - Wholesale sales grew over 25%, and e-commerce business increased by 18%, attributed to brand refresh initiatives [8][10] - Company stores experienced a 9% sales increase in the fourth quarter, driven by higher average selling prices and improved merchandising [6][15] Market Data and Key Metrics Changes - U.S. net sales increased by 11.2% in the fourth quarter, while international net sales rose by 1% [15][18] - International sales decreased by 1.5% on a constant currency basis, with strong performances in Europe and Mexico offset by weaker results in the Middle East [15][18] Company Strategy and Development Direction - Focus on customer-centric strategies, enhancing digital engagement and omni-channel approaches [5][12] - Emphasis on innovation, with new product introductions and a strong pipeline for future releases [8][10] - Plans to improve profitability through higher-margin products, reduced promotional activity, and enhanced supply chain efficiency [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning consumer interest in the fashion watch category, particularly among women [10][12] - Acknowledgment of external pressures, including geopolitical uncertainties and tariffs, impacting the business environment [13][21] - No fiscal 2027 outlook provided due to current economic and geopolitical uncertainties [21] Other Important Information - Gross margin remained stable at 54.1% in the fourth quarter, with operating expenses increasing due to higher performance-based compensation [16][18] - The company repurchased approximately 208,000 shares during fiscal 2026, with plans to continue share repurchases to offset dilution [20][21] Q&A Session Summary Question: What is driving the strong performance of movado.com? - Management indicated that higher consumer engagement, new product innovations, and increased price points are driving the growth [24] Question: How much of the U.S. net sales growth was volume versus price driven? - Management noted that the growth was mostly volume driven, with minimal price increases implemented to offset tariffs [26] Question: Can you quantify the total tariff drag on gross margin for fiscal year 2026? - Tariffs impacted gross margin by approximately 150 basis points for the year, with a significant impact in the fourth quarter [28][29] Question: Given the high growth rate in the wholesale segment, is it due to under-investment in inventory or actual demand? - Management clarified that the growth was driven by actual demand and sell-through, with retailers actively seeking to rebuild inventory [41] Question: Will there be operational efficiencies due to increased units sold? - Management confirmed that increased volume has allowed for leveraging supply chain infrastructure, benefiting gross margin and cost of goods sold [42]

Financial Data and Key Metrics Changes - Net investment income for Q4 2025 was $0.36 per share, and $1.45 for the full year, indicating a yield to book value of 2.7% for Q4 and 11% for the year [4] - Gross investment income totaled $14.2 million for Q4, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [17] - Net investment income for Q4 was $8.3 million, compared to $9.5 million in Q3, reflecting a decrease due to one-time fees [18] - Net assets totaled $303.4 million at quarter end, with net asset value per share at $13.30, slightly up from $13.27 in Q3 [18] Business Line Data and Key Metrics Changes - The company funded $31.7 million across seven new investments in Q4, including four new borrowers, with 100% of these being senior secured loans [5][20] - The average credit investment size is approximately 2.4% of the debt portfolio at fair value, with 25% of the portfolio invested in non-cannabis companies [16] - The weighted average yield on debt investments was 15.8%, consistent with the previous quarter [9][16] Market Data and Key Metrics Changes - The broader BDC market faced negative sentiment, with many BDCs trading below net asset value by the end of 2025, leading to concerns about potential dividend cuts and losses in existing loan books [5][6] - The company has limited exposure to sectors under pressure, such as software, with only 3% of the portfolio exposed to this industry [10] Company Strategy and Development Direction - The company focuses on direct loans to privately held companies in niche markets, particularly the cannabis sector and lower middle market, which are often overlooked by capital providers [4][7] - The strategy emphasizes downside protection and aims to deliver attractive returns through disciplined underwriting and structuring of investments [14][23] - Recent M&A activity in the cannabis market has increased the company's pipeline for 2026, with a total of approximately $732 million in potential debt transactions [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent shift in cannabis policy at the federal level could lead to increased cash flow for borrowers and higher equity valuations, although uncertainty remains until a regulatory framework is established [12][13] - The company is well-positioned to benefit from developments in the cannabis industry, despite managing the business under the assumption that the regulatory environment may not change [14] Other Important Information - The company has a low debt-to-equity ratio of 0.08x, significantly below the BDC average of 1.2x, and has no non-accruals compared to the industry average of 3.3% [11] - A dividend of $0.34 was announced, marking the sixth consecutive quarter at that rate, with total dividends for the year amounting to $1.36 per share [11] Q&A Session Summary Question: Clarification on the $732 million pipeline - The pipeline mentioned is across the entire Chicago Atlantic platform, with an increase from approximately $600 million reported last quarter [30] Question: Impact of rescheduling on borrower discussions - Rescheduling has led to increased eagerness among operators to invest in their businesses and pursue consolidation opportunities [32] Question: Activity in specific states regarding cannabis - There is increased activity in states like Virginia and ongoing consolidation in mature markets such as Ohio and Colorado [34] Question: Repayments in Q4 and their implications - The repayments observed were idiosyncratic and reflective of broader transaction activity in the market, leading to more frequent refinancing opportunities [43]

Financial Data and Key Metrics Changes - Revenues in Q4 2025 were $968,000, up 27% from $761,000 in Q4 2024, marking the sixth consecutive quarter of double-digit revenue growth year over year [22][23] - Fiscal year 2025 revenues reached $3.6 million, a 33% increase compared to $2.7 million in fiscal year 2024 [25] - Gross margin in Q4 2025 was 85.4%, down from 86.4% in Q4 2024, primarily due to reserves for excess inventory and the introduction of the RED device [26] - Operating loss in Q4 2025 was $1.7 million, an increase of 17% compared to a $1.5 million loss in Q4 2024 [31] Business Line Data and Key Metrics Changes - Unit deliveries increased by 35% in Q4 2025 compared to the prior year, driven by volume growth from patients with full reimbursement health insurance [23] - The company experienced a market shift from discounted financial assistance programs to higher-margin full reimbursement patients [24] Market Data and Key Metrics Changes - The company secured a federal FSS contract, allowing sales within the Veterans Administration (VA) healthcare system, which serves nearly 7 million active patients annually [17] - The expansion of medical policy coverage from a major national health insurer represents approximately 45 million health plan members [10][22] Company Strategy and Development Direction - The company is focused on expanding medical policy coverage while increasing its commercial footprint, with a priority on securing additional payer coverage [10][11] - The strategy includes hiring experienced personnel and enhancing marketing efforts to ensure broad adoption of IB-Stim technology [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for growth in 2026, emphasizing that the fundamental barriers to adoption are being systematically removed [18][21] - The company anticipates continued revenue growth driven by expanding insurance coverage and increased patient utilization [11][18] Other Important Information - Cash on hand as of December 31, 2025, was $5 million, with a current cash balance exceeding $6 million following a recent capital raise [32][33] - The company is actively pursuing a randomized controlled trial for IB-Stim in adults to support future medical policy coverage [16][76] Q&A Session Summary Question: Can you provide insights on prior authorization requests and approval rates since the level one code? - Management noted a significant increase in submission rates for prior authorizations, up nearly 10x compared to 2025, although approval rates remain low [39][40] Question: What is the status of new accounts and utilization trends? - Management reported strong performance from children's hospitals with access to the new payer, although overall treatment capacity remains underutilized [44][46] Question: What are the expectations for SG&A growth in 2026? - Management indicated that SG&A growth would align with revenue growth, with a focus on maintaining flat G&A expenses while increasing selling and R&D investments [51][53]