Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $9.7 million, up from $6 million in Q4 2024, with a total of 112 vehicles delivered in 2025 compared to 46 in 2024 [25][29] - Full-year 2025 revenue was $21.2 million, compared to $7 million in 2024, with pro forma revenue of $34 million if the merger had been completed for both periods [28][29] - Operating loss for Q4 2025 was $20.1 million, compared to $16.5 million in Q4 2024, with a net loss of $23.7 million compared to $19.6 million the previous year [27][28] Business Line Data and Key Metrics Changes - The merger with Motiv Electric Trucks has positioned the company as a leading North American medium-duty commercial vehicle OEM, with a portfolio spanning classes 4, 5, and 6 [5][6] - The company has delivered 65 vehicles in Q4 2025, driven by follow-on orders from existing customers [25][26] Market Data and Key Metrics Changes - The North American medium-duty truck market is approximately $23 billion annually, with a significant shift towards e-commerce logistics and shorter delivery routes [9][10] - Annual mileage for medium-duty vehicles has increased from approximately 31,000 miles in 2020 to nearly 48,000 miles in 2025, indicating a structural shift in freight distribution [11][12] Company Strategy and Development Direction - The company aims to complete integration, expand its product portfolio, and strengthen its financial position post-merger [6][7] - A new product roadmap is being developed to commonize key components and introduce a proprietary Class 5-6 cab chassis [8][19] - The company targets a run rate of $20 million in annualized cost synergies from the merger by the end of 2026 [7][19] Management's Comments on Operating Environment and Future Outlook - Management believes that capturing approximately 1% of the annual medium-duty truck market, or about 2,500 vehicles per year, is achievable to reach cash flow breakeven by the end of 2028 [16][17] - The company is focused on driving down the bill of materials to achieve pricing competitive with internal combustion engine trucks [18][62] Other Important Information - The company has a stronger balance sheet post-merger, with $12.9 million in cash and access to a $40 million customer order lending facility [30][31] - The company is actively exploring financing alternatives to support growth and strengthen its balance sheet [31] Q&A Session Summary Question: What were the one-time expenses related to the merger in Q4? - The company recognized over $4 million in one-time fees and costs associated with the merger, with expectations to exit 2026 at a $20 million run rate in synergies [36][39] Question: Will the company reach positive gross margins by Q4 2026? - Management indicated that positive gross margins may not be achieved by Q4 2026, as it is more likely to occur in the following year [41] Question: What is the outlook for the step van market and feedback on the new lower-cost model? - Preliminary feedback on the new lower-cost models has been positive, with plans to mix the current W56 with the new vehicle for different operational needs [45][46] Question: What is left to be done to reach the 5,000+ vehicle capacity? - Minimal capital expenditures are needed to enhance capacity, primarily involving equipment like lift equipment and torque guns [48][49] Question: How will the Workhorse and Motiv products differ going forward? - The company will phase out the former Class 5-6 chassis from Motiv and ramp up production of new Class 5-6 cab chassis and Class 4 trucks [58] Question: How does the company plan to reduce the bill of materials during 2026? - The company aims to commonize components across classes to leverage supply chain efficiencies and reduce the number of parts stocked, ultimately targeting competitive pricing with ICE trucks [61][62]

Financial Data and Key Metrics Changes - The company reported approximately $22.3 million in cash and current assets after accounting for liabilities at year-end [38] - Operating expenses were about $10 million, with a cash burn of $5.7 million for the year [39] - Post spin-out of the clearing platform and PatentVest, operating expenses are expected to decrease to about $6 million annually, enhancing financial leverage [40][41] Business Line Data and Key Metrics Changes - MDB Capital has successfully launched 18 IPOs, with all but the most recent trading at significant premiums to their IPO prices, indicating strong market positioning [6] - The company has invested around $4 million annually in MDB Direct and PatentVest since going public, establishing them as distinct assets with independent value [20][37] Market Data and Key Metrics Changes - The company is focusing on the public venture market, which is increasingly appealing to individual investors rather than traditional institutional investors [24] - The market for patent prosecution in the U.S. is estimated to be between $10 billion and $15 billion, presenting a significant opportunity for growth [30] Company Strategy and Development Direction - The company aims to scale its operations to launch 3-5 companies per year, leveraging AI to streamline processes and reduce time to market [11][18] - MDB Capital is exploring strategic partnerships to monetize its clearing operations and enhance distribution capabilities [23][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic risks and challenges in the microcap market, but remains optimistic about the potential for portfolio companies to execute successfully [42][43] - The company is confident in its ability to generate significant equity value from its current assets, with all principal assets having billion-dollar potential [41][49] Other Important Information - The company is in the process of developing AI-driven tools to enhance its operational efficiency and reduce the time required for due diligence [12][14] - MDB Capital is planning to take POLX public later this year, with expectations for significant clinical trial results that could impact its valuation [35][36] Q&A Session Summary Question: Can you talk about Q, ClearSign, and Beat? Also, what about Buda? - ClearSign is on a long commercialization journey with promising prospects due to its unique burner technology [52] - HeartBeam has achieved FDA approval for a groundbreaking ECG device, which could save millions of lives [53] - Buda is positioned to lead in the fresh juice market, capitalizing on a global shift towards fresh products [56] Question: What is the outlook for eXoZymes regarding dilution? - eXoZymes has a capital-efficient model with minimal expected dilution due to its focus on significant market opportunities [61][62] Question: How will the spin-out of PatentVest impact shareholders? - Both MDB Direct and PatentVest are fully owned by the company, and the goal is to secure funding and take them public by 2027 [64][65] Question: What does the deal pipeline look like for the next 12-24 months? - The company anticipates a strong deal pipeline but emphasizes the need to enhance distribution capabilities to successfully sell these opportunities [66][67] Question: Have you considered a SaaS model for PatentVest? - The company believes that AI will significantly disrupt the SaaS model, as it can perform tasks more efficiently than traditional methods [70][74]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $86.5 million or $1.22 per share, compared to a net loss of $30.9 million or $0.47 per share in Q3 2025 [13][20] - The fourth quarter results included a net gain of $237.6 million from the sale of zaltenibart to Novo Nordisk [20][23] - Excluding a $136 million non-cash charge related to embedded derivatives, the non-GAAP adjusted net income was $222.5 million, or $3.14 per share [14][20] Business Line Data and Key Metrics Changes - The company achieved FDA approval for YARTEMLEA, the first approved treatment for TA-TMA, which is expected to drive significant revenue [7][12] - The partnership with Novo Nordisk for zaltenibart is valued at up to $2.1 billion, including upfront payments and milestone payments [6][12] Market Data and Key Metrics Changes - The company is focusing on the 80 highest volume transplant centers in the U.S., which account for approximately 80% of annual stem cell transplants [9][10] - YARTEMLEA has been approved by P&T committees at 50% of the top 10 U.S. transplant centers, indicating strong market acceptance [11] Company Strategy and Development Direction - The company plans to expand YARTEMLEA's indications beyond TA-TMA, exploring opportunities in ARDS and other endothelial injury-related disorders [12] - The company is also advancing its MASP-2 antibody, OMS1029, and small molecule programs for chronic indications [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial self-sustainability for the YARTEMLEA program in 2026 and positive cash flow by 2027 [15][28] - The company is focused on building physician awareness and ensuring timely reimbursement for YARTEMLEA [28] Other Important Information - The company has eliminated all indebtedness under its senior secured term loan and 2026 notes, leaving only $70.8 million in convertible notes due in 2029 [15][21] - The company anticipates that operating expenses in Q1 2026 will be comparable to Q4 2025, with a focus on building commercial infrastructure for YARTEMLEA [27] Q&A Session Summary Question: Progress of formulary additions across transplant centers - Management is pleased with the speed of P&T committee approvals and expects continued progress throughout the year [32][34] Question: Real-world vial usage of YARTEMLEA - Initial usage shows a split of approximately 70% once weekly and 30% twice weekly, with expectations for a shift towards more twice weekly dosing [37][39] Question: Financial sustainability and cash flow - The company aims for YARTEMLEA to be self-sustaining in 2026, with positive cash flow expected in 2027 [42][43] Question: Feedback from sales force on formulary allowance - The sales team reports positive responses from medical centers, with a strong recognition of the urgency and need for YARTEMLEA [45][46] Question: Patient starts on YARTEMLEA - Management is not providing specific numbers on patient starts at this time but will discuss in the upcoming Q1 call [70] Question: Confidence in receiving the $100 million milestone from Novo - Management expresses high confidence in receiving the milestone but cannot disclose specific triggers [73]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net income of $86.5 million or $1.22 per share, a significant improvement from a net loss of $30.9 million or $0.47 per share in Q3 2025 [13][20] - The fourth quarter results included a net gain of $237.6 million from the sale of zaltenibart to Novo Nordisk [20][23] - Excluding a $136 million non-cash charge related to embedded derivatives, the non-GAAP adjusted net income was $222.5 million, translating to $3.14 per share [14][21] Business Line Data and Key Metrics Changes - The company achieved FDA approval for YARTEMLEA, the first approved treatment for TA-TMA, which is expected to drive significant revenue [7][12] - The partnership with Novo Nordisk for zaltenibart is valued at up to $2.1 billion, including upfront payments and milestone payments [6][12] Market Data and Key Metrics Changes - The company is focusing on the top 80 transplant centers in the U.S., which account for approximately 80% of annual stem cell transplants [9][10] - YARTEMLEA has received P&T committee approvals at 50% of the top 10 U.S. transplant centers, indicating strong market acceptance [11] Company Strategy and Development Direction - The company plans to expand YARTEMLEA's indications beyond TA-TMA, exploring opportunities in ARDS and other endothelial injury-related disorders [12] - The company is also advancing its MASP-2 antibody, OMS1029, and small molecule programs for chronic indications [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial self-sustainability for the YARTEMLEA program in 2026 and positive cash flow by 2027 [15][28] - The management highlighted the urgency and need for YARTEMLEA, with positive feedback from medical centers regarding its value proposition [46][48] Other Important Information - The company has a strong cash position of $171.8 million as of December 31, 2025, following the upfront payment from Novo Nordisk [15][21] - The company is actively working on health economics and outcomes research (HEOR) to demonstrate YARTEMLEA's cost-effectiveness [55] Q&A Session Summary Question: Progress of formulary additions across transplant centers - Management is pleased with the speed of P&T committee approvals and expects continued progress throughout the year [32][34] Question: Real-world vial usage of YARTEMLEA - Initial usage shows a split of approximately 70% once weekly and 30% twice weekly, with expectations for a shift towards more frequent dosing [37][39] Question: Financial sustainability and cash flow - The company aims for the YARTEMLEA business to be self-sustaining in 2026, with overall positive cash flow targeted for 2027 [43] Question: Response from medical centers regarding YARTEMLEA - The sales team reports positive feedback and eagerness from medical centers, indicating a strong recognition of the drug's value [45][46] Question: Approval status and patient starts for YARTEMLEA - Management refrained from providing specific patient start numbers but indicated a positive launch trajectory [70] Question: Confidence in receiving the $100 million milestone from Novo - Management expressed high confidence in receiving the milestone, although specific triggers cannot be disclosed [73]

Financial Data and Key Metrics Changes - For 2025, total consolidated revenue was approximately $27 million, a significant increase from $7.3 million in 2024, representing over a 270% year-over-year growth [26] - The company recorded a net loss of approximately $9.8 million in 2025, an improvement from the $10.8 million net loss in 2024, driven by higher revenue and stronger gross margins [27] - Gross profit for 2025 was $7.9 million, achieving approximately 29% gross margin, a significant year-over-year improvement [27] Business Line Data and Key Metrics Changes - The revenue growth was primarily driven by services and consulting revenue from the asset management agreement with New APR Energy, totaling $22.4 million in 2025 compared to $900,000 in 2024 [26] - Duos Technologies Solutions has already sold $10 million in new business, which is expected to be recorded as revenue in 2026 [13] - The company is divesting its Rail division to focus on data center operations, which is expected to free up resources and reduce SG&A expenses [6][7] Market Data and Key Metrics Changes - The demand for edge computing is growing rapidly, with Duos Edge AI positioned to meet this demand [15] - The company completed a capital raise of $45 million to fund the construction and deployment of 15 edge data centers [15] - Duos Edge AI is experiencing unprecedented demand for power in megawatts, indicating a significant market opportunity [18] Company Strategy and Development Direction - The company is fully dedicated to the data center market through its Duos Edge and Technologies Solutions division, driven by accelerating customer demand [5] - The strategy includes building and deploying data centers rapidly while focusing on cost savings and lowering capital expenditures [10] - Duos aims to continue executing its sales strategy to acquire new customers and fully utilize the capacity of each edge data center [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment for the next three to four years, particularly in Tier 3 and Tier 4 markets [141] - The company anticipates revenue guidance of $50 million to $55 million for 2026, reflecting growth from both core operations and newer initiatives [33] - Management highlighted the importance of the Clean Room technology patent as a competitive advantage in the edge data center market [40] Other Important Information - The company ended 2025 with approximately $63 million in total assets, reflecting meaningful growth year-over-year [29] - Duos has been awarded global recognition for its innovations in the data center space, indicating a positive market reception [35] Q&A Session Summary Question: Concerns about competitors entering the market - Management acknowledged potential competition but emphasized their unique Clean Room technology as a differentiator [39][41] Question: Plans for entering larger markets and international expansion - The focus remains on Tier 3 and Tier 4 markets due to quicker deployment and accessible power, with international expansion considered in the future [45][47] Question: Clarification on new edge data centers and revenue generation - Management confirmed that five new edge data centers are in production, with expected revenue generation starting in August [52][56] Question: Breakdown of expected revenue for 2026 - Management did not provide specific revenue breakdowns by business line but expressed confidence in meeting overall guidance [57] Question: Details on property and equipment increase - The majority of the increase in property and equipment is attributed to the edge data centers, with ongoing investments for future growth [58] Question: Revenue potential from GPU-as-a-Service contracts - Management indicated that the GPU model could generate approximately $2 million per megawatt annually, with significant demand for high-density solutions [149]

Summary of PepGen Conference Call Company Overview - **Company**: PepGen - **Study**: Phase II FREEDOM2 study of PGN-EDODM1 Key Points Industry and Company Context - The conference call discusses the results from the FREEDOM2 study, focusing on the safety and efficacy of PGN-EDODM1 in treating myotonic dystrophy type 1 [1][2][4]. Core Findings - **Safety Profile**: At a dose of 5 mg/kg, PGN-EDODM1 demonstrated a promising safety profile with all adverse events classified as mild or moderate. No serious adverse events or treatment-related kidney issues were reported [4][11]. - **Splicing Correction**: The mean splicing correction in the treatment group was 7.3%, compared to 6.8% in the placebo group. Excluding an outlier, the mean splicing correction increased to 22.9% [5][12][13]. - **Functional Outcomes**: Improvements in hand myotonia were observed, with the video hand opening time (vHOT) improving by up to 4.1 seconds in the treatment group [13][14]. Recruitment and Future Data - Recruitment for the 10 mg/kg cohort is progressing well, with expectations to report clinical data in the second half of 2026 [5][16]. - The company has a cash runway extending into the second half of 2027, sufficient to support ongoing studies [16]. Additional Insights - **Outlier Analysis**: One patient in the treatment group exhibited a 70.8% worsening in splicing, which was not typical and is under investigation. The patient had significant drug levels, but the reason for the poor response remains unclear [12][17][21][48]. - **Statistical Analysis**: The study is not powered for statistically significant data but aims to explore safety and dose-finding up to 12.5 mg/kg [55]. - **Safety at Higher Doses**: Confidence in the safety profile for the upcoming 10 mg/kg cohort is high, with no cumulative toxicity observed in the 5 mg/kg cohort [28][31]. Regulatory and Market Considerations - The company is in discussions with the FDA regarding lifting a hold on the study, but no timeline can be provided at this moment [35]. - The potential for further improvements in splicing and functional outcomes is anticipated as dosing increases [22][49]. Conclusion - The results from the FREEDOM2 study indicate a favorable safety and efficacy profile for PGN-EDODM1, supporting continued development and higher dosing in future cohorts [14][58].

Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2025, was $5.6 million, down from $7.7 million in 2024, primarily due to the timing of customer equipment purchases [13] - Gross margin improved to approximately 55%, up from 46% in 2024, reflecting lower cost of sales and a reduction in inventory reserves [13] - Total operating expenses decreased by approximately 10% to $6.9 million from 2024 [14] - The net loss was $3.7 million or $0.19 per share, an improvement from a net loss of $4.5 million or $0.22 per share in 2024 [14] Business Line Data and Key Metrics Changes - The backlog of orders for support services increased by 16%, and BIT Solution orders rose by 24% in Q1 2026 compared to the same period last year, indicating a growing recurring revenue trajectory [9][16] - The SteraMist Integrated System achieved its first commercial installation at a leading CDMO in June 2025, with four fully operational SIS enclosure installations by year-end [4][5] Market Data and Key Metrics Changes - The global ethylene oxide market was valued at $5.29 billion last year, with rising demand for sterilized medical consumables and improved healthcare infrastructure driving growth [10] - The company is actively pursuing opportunities in the food safety sector, with significant partners like Danone and Nestlé, following the FDA's approval of hydrogen peroxide as a direct food additive [7][8] Company Strategy and Development Direction - The company is focusing on execution and converting its pipeline into recognized revenue while advancing its technology platform [10] - A shift towards a recurring revenue model is emphasized, moving from episodic revenue to embedded revenue, which is expected to enhance customer dependency and long-term growth [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging year in 2025 due to factors like tariffs and political uncertainty but expressed optimism about future revenue growth, projecting around $12 million for 2026 [25][29] - The company is seeing signs of improvement as customers who deferred capital expenditures are beginning to move forward with projects [56] Other Important Information - The company received approvals from the HSE and BPR submissions, enhancing its market presence in the UK and the Netherlands [9] - The company is preparing to introduce its IHP device to the U.S. market through the FDA 510(k) pre-market notification process [10] Q&A Session Summary Question: Insight into global opportunities mentioned in the quarter - Management expects many EU states to follow suit with registrations, leveraging existing relationships and distributors [40] Question: Thoughts on operating expenses going forward - Operating expenses are expected to grow as a percentage of revenue but not significantly, indicating leverage in cost management [42] Question: Signs of improvement in customer capital expenditure projects - Management confirmed that customers are beginning to move forward with deferred projects [56] Question: Details on BIT Solution revenues for 2025 versus 2024 - There was an increase in BIT Solution usage, with customers moving towards auto shipment and advanced orders [58][60] Question: Potential applications for SteraMist in military settings - Management acknowledged the potential and expressed interest in exploring opportunities with military applications [71][75]

Financial Data and Key Metrics Changes - Total revenues for Q4 were $149.7 million, a 6% year-over-year increase, and $594.8 million for fiscal 2026, a 10% increase over fiscal 2025 [26] - Subscription revenues were $133.4 million in Q4, a 7% year-over-year increase, and $523.1 million for the full year, a 12% increase over fiscal 2025 [27] - Non-GAAP operating income for Q4 was $34.7 million, or 23% of total revenues, compared to $24.4 million, or 17% of total revenues in Q4 of fiscal 2025 [31] - Non-GAAP net income for Q4 was $42.8 million, or $0.37 per diluted share, compared to $22 million, or $0.19 per diluted share in Q4 of fiscal 2025 [32] - Free cash flow for Q4 was $12.5 million, up from -$10.4 million in Q4 of fiscal 2025, and for fiscal 2026, it was $82.6 million, a 55% increase compared to $53.4 million in fiscal 2025 [33] Business Line Data and Key Metrics Changes - ACV as of January 31, 2026, was $602.4 million, a 17% year-over-year increase, with an organic constant currency growth of 13% [35] - The ACV net retention rate improved to 112%, or 109% on an organic constant currency basis, up from 106% in fiscal 2025 [36] - Professional services revenues were $16.3 million in Q4, a decrease of 1% year-over-year, with full-year revenues flat at $71.6 million [30] Market Data and Key Metrics Changes - International total revenues for Q4 were $32.9 million, down 1% year-over-year, but for fiscal 2026, they were $131.5 million, up 13% year-over-year [29] - International subscription revenues were $28.4 million in Q4, up 1% year-over-year, and $109.5 million for fiscal 2026, a 19% increase year-over-year [29] Company Strategy and Development Direction - The company is focusing on AI integration within its platform, positioning itself as a critical player in the financial services market [5][7] - nCino aims to leverage its proprietary dataset to enhance product development and provide industry insights [12][21] - The transition to a platform pricing model is underway, with approximately 38% of ACV moved away from seat-based pricing [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the AI landscape, emphasizing the importance of regulatory compliance in banking [14][15] - The company anticipates strong sales momentum and a healthy sales pipeline for fiscal 2027, with expectations for continued growth in subscription revenues [47][48] Other Important Information - The company announced the hiring of Keith Kittell as the new Chief Revenue Officer to further accelerate subscription revenue growth [25] - The company has initiated a $100 million accelerated share repurchase program, funded by free cash flow and a term loan expansion [34] Q&A Session Summary Question: Can you frame what you saw in terms of the change in close rates or win rates on the back half of the year versus prior years? - Management noted a larger pipeline and healthy conversion rates, contributing to a positive outlook for ACV [50][51] Question: Can you provide insights on the greatest usage across the portfolio of capabilities and skills? - Management highlighted strong adoption of agentic credit reviews and credit monitoring as areas of significant traction [54][55] Question: Are you seeing AI models impacting nCino's differentiation? - Management acknowledged the evolving AI landscape but emphasized nCino's unique position due to its compliance-focused architecture [59][60] Question: Can you share metrics on efficiency gains or P&L impact from customers using intelligence units? - Management indicated a direct correlation between intelligence unit consumption and positive outcomes for customers, particularly in credit monitoring [63][64] Question: What is the status of the credit union initiative? - Management reported good momentum in the credit union market, with a growing pipeline and established relationships [77][78]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was approximately $4.1 million, up from $3.9 million in the prior year, indicating strong performance across the business [11] - Full year revenue was approximately $12.8 million, down from $13.9 million in 2024, primarily due to the strategic exit from low-margin floral and lettuce segments [15] - Gross profit for Q4 was approximately a $1.2 million loss compared to flat in 2024, reflecting deliberate investments to secure shelf space for 2026 [13] - Full year gross profit was approximately a loss of $0.2 million compared to a gain of $2.3 million in 2024, with a focus on recovering gross margins in 2026 [15] Business Line Data and Key Metrics Changes - Strong performance in cut herbs and the vitamin and supplement portfolio, with double-digit growth driven by new retail placements [7] - Significant growth in the condiment platform, supported by new customer wins such as Wakefern and Safeway [7] - The nutraceutical business showed strong growth in the double-digit range year-over-year, expected to be a larger component of revenue growth going into 2026 [24] Market Data and Key Metrics Changes - The global ready-to-drink (RTD) category is estimated at approximately $842.5 billion in 2025 and projected to reach roughly $1.26 trillion by 2033, representing a significant market opportunity [9] - The company is expanding its retail footprint to nearly 6,000 store locations, reflecting growing demand for its products and strong retail relationships [6] Company Strategy and Development Direction - The company is evolving from a core controlled environment agricultural platform to a broader innovation-driven consumer packaged goods business, focusing on higher growth and higher margin opportunities [6] - Key next steps include expanding into the RTD category, leveraging existing infrastructure and retail relationships to meet growing demand [8] - The company aims to scale its presence in higher margin RTD shelf-stable categories while continuing to diversify its consumer packaged goods business beyond fresh produce [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver predictable and scalable results as it transitions to a more vertically integrated, innovation-driven model [10] - The company is focused on managing costs while investing in infrastructure to support a higher margin, more scalable business model [16] - Management is optimistic about the growth trajectory, citing strong demand for fresh goods and the potential of the RTD market [42] Other Important Information - The company made deliberate investments in onboarding new retail customers during a seasonally compressed period, expecting cost structures to normalize as programs mature [12] - Selling, general, and administrative expenses increased to approximately $15.3 million in 2025, driven by the Natural Shrimp acquisition and other capital market activities [16] Q&A Session Summary Question: How should margins be viewed as the business transitions from fresh to CPG products? - Management expects more robust margins in the RTD and consumer packaged goods segments due to their shelf-stable nature, which reduces shrink issues associated with fresh products [20][22] Question: What is the expected revenue breakdown for CPG versus fresh through 2026? - The core controlled environment agriculture (CEA) business is expected to return to steady growth in the high single digits, while the RTD business presents significant revenue opportunities with margins in the 20%-30% range [24] Question: What products will be offered in the RTD category? - The company plans to focus on protein segment products, including private label offerings for major retailers, leveraging existing relationships to drive sales [26][30] Question: What are the CapEx requirements and timeline for the Midwest facility? - While specific numbers were not disclosed, management indicated that significant capital expenditures will be needed for equipment and facility retrofitting, with plans to be in the marketplace by late 2027 [35]

Financial Data and Key Metrics Changes - For the full year 2025, total revenue was $0.6 million, a decrease from $3.9 million in 2024, primarily due to lower grant revenue [19] - Product revenue for 2025 was $0.4 million, down from $0.8 million in 2024, reflecting limited commercial activity [19] - Total operating expenses for 2025 were $50.6 million, compared to $43.0 million in 2024, driven by a non-cash impairment charge of approximately $18.9 million [19][20] - Net loss for 2025 was $46.9 million, or a loss of $35.25 per share, compared to a net loss of $37.6 million, or $37.22 per share in 2024 [22] - Adjusted EBITDA was a loss of $28.0 million for 2025, compared to a loss of $33.5 million in 2024 [22] Business Line Data and Key Metrics Changes - Research and development expenses were $19.1 million in 2025, down from $21.0 million in 2024, reflecting disciplined investment in the Kodiak PCR platform [20] - Sales and marketing expenses decreased to $2.4 million in 2025 from $4.5 million in 2024, primarily due to lower personnel and consulting expenses [21] - General and administrative expenses were $9.1 million in 2025, down from $16.2 million in the prior year, driven by lower legal and consulting expenses [21] Market Data and Key Metrics Changes - CoSara has expanded its commercial and distribution territory across South Asia, including Bangladesh, Pakistan, Nepal, and Sri Lanka, increasing the addressable market to approximately $13 billion [9] - The global TB diagnostics market is expected to grow significantly, with the company well-positioned to participate in that growth [16] Company Strategy and Development Direction - The company is focused on four primary growth pillars: advancing the clinical pipeline, expanding CoSara in India, executing the CoMira joint venture in Saudi Arabia, and enhancing AI-driven capabilities [7][8] - CoSara is preparing to manufacture the PCR Pro instrument locally in India, which is a key step towards commercialization [9] - The CoMira joint venture aims to establish local manufacturing and distribution capabilities in Saudi Arabia, providing a competitive advantage [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executing their multi-pronged growth strategy and expressed confidence in the company's progress towards commercialization [5][18] - The company plans to continue generating operating losses in the near term while focusing on advancing the clinical pipeline and achieving regulatory milestones [24] Other Important Information - The company has received international patents covering key components of the Kodiak PCR platform, enhancing its competitive positioning [14] - The Kodiak Primer AI platform is being expanded to improve operational efficiency and support predictive insights [17] Q&A Session Summary Question: Status of sample accrual for the three-target panel and potential to add COVID back - Management clarified that the decision to drop COVID was due to its limited presence during the clinical trial, allowing for a more expedient submission to the FDA [26][27] Question: Expansion into South Asia and its implications - Management noted that the disease burden in South Asia is similar to India, and the expansion increases the total addressable market [34] Question: Sample requirements for the U.S. FDA study - Management indicated that over 1,200 patients have been enrolled for the study, nearing conclusion [36] Question: Next steps for commercialization in India - Management expects to have TB tests commercialized in India by the third quarter of 2026, leveraging existing infrastructure and expertise [39]