Q1 2025 Innventure Inc Earnings Call

Operator: Hello and welcome to Inventure First Quarter 2025 EARNEST Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.

Hello, and welcome to adventure first quarter 2025 earnings Conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session.

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To ask a question during the session you will need to press star one on your telephone.

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Lucas Hopper: I would now like to turn the conference over to Lucas Hopper. Sir, you may begin. Thank you, Operator, and thank you all for joining us for Inventure's first quarter 2025 earnings call.

Lukas Hopper: I would now like to turn the conference over to Lukas Hopper, Sir you may begin.

Lucas Harper: Thank you, operator, and thank you all for joining us for Innventure's Q1 2025 earnings call. My name is Lucas Harper, Innventure's Chief Investment Officer. Joining me from the company are Bill Haskell, Chief Executive Officer, and Dave Yablunosky, Chief Financial Officer. Earlier today, we issued a press release announcing our financial results, which is available on our investor relations website, along with a supplemental slide presentation. As referenced on slide 5, we will be discussing non-GAAP financial measures during this call. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and supplemental slide presentation on our website. In addition, certain statements being made today are forward-looking statements that are based on management's current assumptions, beliefs, and expectations concerning future events impacting the company.

Lucas Harper: Thank you operator, and thank you all for joining us for Adventures first quarter 2025 earnings call. My name is Lucas Harper and ventures, Chief Investment Officer, and joining me from the company are Bill High School, Chief Executive Officer, and Dave Diablo Natzke Chief Financial Officer.

Lucas Hopper: My name is Lucas Harper, Inventure's Chief Investment Officer, and joining me from the company are Bill Haskell, Chief Executive Officer, and Dave Yablonowsky. Earlier today, we issued a press release announcing our financial results, which is available on our investor relations website, along with a supplemental slide presentation. As referenced on slide 5, we will be discussing non-GAAP financial measures during this call. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and supplemental slide presentation on our website.

Lucas Harper: Earlier today, we issued a press release announcing our financial results, which is available on our Investor Relations website, along with a supplemental slide presentation as referenced on slide five we will be discussing non-GAAP financial measures. During this call. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non.

Lucas Harper: GAAP financial measures are available in our earnings release and supplemental slide presentation on our website.

Lucas Hopper: In addition, certain statements being made today are forward-looking statements that are based on management's current assumptions, beliefs, and expectations concerning future events impacting the company. These forward-looking statements involve a number of uncertainties and risks, including but not limited to those described in our earnings release, Form 10-Q for the period ending March 31, 2025, and other filings of the SEC. The actual results of operations and financial condition of the company could differ materially from those expressed or implied in our forward look.

Lucas Harper: In addition, certain statements being made today are forward looking statements that are based on management's current assumptions beliefs and expectations concerning future events impacting the company. These forward looking statements involve a number of uncertainties and risks, including but not limited to those described in our earnings release Form 10-Q for the period ending March 31.

Lucas Harper: These forward-looking statements involve a number of uncertainties and risks, including but not limited to those described in our earnings release, Form 10-Q for the period ending 31 March 2025, and other filings with the SEC. The actual results of operations and financial condition of the company could differ materially from those expressed or implied in our forward-looking statements. Now I'd like to hand the call over to Bill.

Bill: In 2025, and other filings with the SEC the actual results of operations and financial condition of the company could differ materially from those expressed or implied in our forward looking statements and now I'd like to hand, the call over to Bill.

Bill Haskell: And now I'd like to hand the call over to. Thanks, Lucas, and thanks to everyone joining us. Given the recency of our last update, we'd like to use today's call to shift our focus from specific first quarter developments to a high-level recap of the exciting opportunities that lie ahead for Inventure.

Bill Haskell: Thanks, Lucas, and thanks to everyone joining us today. Given the recency of our last update, we'd like to use today's call to shift our focus from specific Q1 developments to a high-level recap of the exciting opportunities that lie ahead for Innventure, thus following on Accelsius. AeroFlexx and Refinity continue to execute on their respective strategies, and we are excited to share more about both as we move through 2025. Given the number of inbounds we field from investors on Accelsius, we felt today's call would be a good opportunity to speak at more length about the company. At the highest level, Accelsius has tremendous momentum, but it is important to provide additional context on the compelling market opportunity that underpins a large part of Innventure's value creation potential.

Bill: Thanks, Luke and thanks to everyone joining us today.

Bill: Given the recency of our last update I would like to use today's call to shift their focus from specific first quarter developments to a high level recap of the exciting opportunities that lie ahead for indenture.

Bill Haskell: Just follow in on Excel. Aeroflex and Raffinity continue to execute on their respective strategies, and we are excited to share more about both as we move through 2025. But given the number of inbounds, we feel for investors on Excel. We felt today's call would be a good opportunity to speak at more length about the highest level. Celsius has tremendous momentum, but it is important to provide additional context on the compelling market opportunity that underpins a large part of Inventure's value creation potential.

Bill: Following on the Celsius.

Bill: Eric collection of affinity continue to execute on their respective strategies.

Bill: Cited to share more about those as we move through 2025.

Bill: But given the number of inbounds they feel for investors on our Celsius, We felt today's call would be a good opportunity to speak at more length about the company.

Bill: At the highest level.

Bill: <unk> is a tremendous momentum there.

Bill: It is important to provide additional.

Bill: Additional context on the compelling market opportunity underpins, a large part of adventures value creation potential.

Bill Haskell: Today, we're excited to have Dino Fortunato, Accelsius's Chief Revenue Officer, on the call to provide an insider's perspective on Accelsius's market opportunity, technology differentiators, and adoption momentum. With nearly 10 years in the data center industry, first in power distribution and quality, and now over the last two and a half years in advanced cooling with Accelsius, Dino has had a front-row seat to the infrastructure challenges shaping today's market. As CRO, he leads the client operations group, applying his operations background to driving execution and ensuring a premier customer experience across every engagement. As we've repeated often, Innventure's goal is to build companies that we believe can achieve a minimum of $1 billion in enterprise value. We'd like everyone to walk away from today's call with a higher level of context and understanding about why Innventure believes in Accelsius's ability to meet and exceed that milestone.

Dino Fotirero: Today we're excited to have Dino Fotirero, Excelsius' Chief Revenue Officer, on the call to provide a new side of his perspective on Excelsius' market opportunity, technology differentiators, and adoption momentum. With nearly 10 years in the data center industry, first in power distribution and quality, and now over the last two and a half years in advanced cooling with Excelsior, You know, we've had a front row seat to the infrastructure challenges shaping today's market. As CRO, he leads the Client Operations Group, applying his operations background to driving execution and ensuring a premier customer experience across every engagement.

Speaker Change: Today, we're excited to have Dino photo arrow.

Dino: Lcs as Chief revenue officer on the call provider Who's got his perspective on XL systems market opportunity technology, Differentiators and adoption momentum.

Dino: With nearly 10 years of the data center industry first in power distribution and quality and now over the last two and half years in advance calling with Celsius.

Dino: We always had a front row seat at the infrastructure challenges shaped in today's market.

Speaker Change: As CFO at <unk>.

Speaker Change: The client operations group applying as operations background to driving execution and assuring a premier customer experience across every engagement.

Bill Haskell: As we've repeated often, Inventure's goal is to build companies that we believe can achieve a minimum of $1 billion in enterprise revenue. We'd like everyone to walk away from today's call with a higher level of context and understanding about why Inventure believes in Excelsior's disability to meet and exceed that milestone. Hearing directly from Dino, who speaks with our partners and potential customers every day, seems like a good way to provide that color.

Speaker Change: As we've repeated often in ventures goal is to build companies that we believe can achieve a minimum of $1 billion in enterprise value.

Speaker Change: I'd like everyone to walk away from today's call with a higher level of context and understanding about lion venture believes in <unk> ability to meet and exceed that milestone.

Bill Haskell: Hearing directly from Dino, who speaks with our partners and potential customers every day, seems like a good way to provide that color. With that, I'd like to turn the call over to Dino.

Speaker Change: Hearing directly from Dino who speaks to their partners and potential customers every day. It seems like a good way to provide that color.

Dino Fotirero: With that, I'd like to turn the call over to Dean. Thanks, Bill. And thanks to the entire Inventure team for having me on the call.

Speaker Change: With that I'd like to turn the call over to Deno.

Dino Fortunato: Thanks, Bill. Thanks to the entire Innventure team for having me on the call. There are many exciting things happening at Accelsius, and today I'll focus my remarks on 3 key areas. 1, Accelsius's opportunity within the data center liquid cooling market. 2, the technology differentiators of our NeuCool two-phase direct-to-chip technology. 3, a deep dive into the momentum we are developing with ecosystem partners and high-value end users. Let's start with the sizable, rapidly growing market that Accelsius's technology and product set address. This highly attractive market was one of the key factors in Innventure's decision to commercialize the two-phase direct-to-chip technology, and one of the many reasons I joined the company. There are a few key secular tailwinds happening in the data center industry that create a compelling backdrop that Accelsius aims to capitalize on.

Deno: Thanks Bill.

Speaker Change: And thanks to the entire adventure team for having me on the call.

Dino Fotirero: There are many exciting things happening at Excelsius, and today I'll focus my remarks on three key areas. One, a Celsius is an opportunity within the data center liquid cooling market. Two, the technology differentiators of our new cool two-phase direct-to-chip technology. And three, a deep dive into the momentum we are developing with ecosystem partners and high value end users.

Speaker Change: There are many exciting things happening at Celsius, and today I'll focus my remarks on three key areas.

Speaker Change: One a celsius is the opportunity within the data center liquid cooling market.

Speaker Change: Two the.

Speaker Change: The technology Differentiators of our new call two phase directed chip technology.

Speaker Change: And three a day.

Speaker Change: Deep dive into the momentum we are developing with ecosystem partners and high value end users.

Dino Fotirero: Let's start with the sizable, rapidly growing market that a Celsius of technology and product set address. This highly attractive market was one of the key factors in Inventure's decision to commercialize the two-phase direct-to-chip technology and one of the many reasons I joined the company. There are a few key secular tailwinds happening in the data center industry that create a compelling backdrop that Ascelsius aims to capitalize on. It is no secret that technology companies and more importantly, companies across all industries. have publicly talked about significantly increasing their data center budgets over the next several years to keep up with the advent of AI and rapidly evolving chip technology.

Speaker Change: Let's start with the sizable rapidly growing market that itself is a technology and products that address.

Speaker Change: This highly attractive market was one of the key factors and then ventures decision to commercialize the two phase directed chip technology.

Speaker Change: And one of the many reasons I joined the company.

Speaker Change: There are a few key secular tailwind happening in the data center industry that create a compelling backdrop that is Celsius aims to capitalize on.

Dino Fortunato: First, it is no secret that technology companies, and more importantly, companies across all industries, have publicly talked about significantly increasing their data center budgets over the next several years to keep up with the advent of AI and rapidly evolving chip technology. According to the Dell'Oro Group, worldwide data center spending was roughly $450 billion in 2024, and that number is expected to grow to over $1 trillion by 2029. This creates an incredible secular tailwind for the entire data center ecosystem, and especially for critical infrastructure providers such as Accelsius. Second, the overwhelming majority of the nearly 12,000 data centers spanning the globe are still utilizing highly inefficient and antiquated air-cooled solutions, and single-phase water cooling technologies represent a single-digit percentage of cooling installations.

Speaker Change: First.

Speaker Change: It is no secret that technology companies.

Speaker Change: And more importantly companies across all industries.

Have publicly talked about significantly increasing their datacenter budgets over the next several years to keep up with the advent of AI and rapidly evolving chip technology.

Dino Fotirero: According to the D'Oro group, Worldwide data center spending was roughly $450 billion in 2024. and that number is expected to grow to over $1 trillion by 2029. This creates an incredible secular tailwind for the entire data center ecosystem and especially for critical infrastructure providers such as a cell. Seconds. The overwhelming majority of the nearly 12,000 data centers spanning the globe. are still utilizing highly inefficient and antiquated air cooled solutions and single phase water cooling technologies represent a single digit percentage of cooling installation. In the short term, single-phase, water-based technologies are expected to expand their share of the liquid cooling market as data centers install infrastructure for this technology.

Speaker Change: According to the del Oro group.

Speaker Change: Worldwide data center spending was roughly $450 billion in 2024.

Speaker Change: And that number is expected to grow to over one trillion dollars.

Speaker Change: 2029.

Speaker Change: This creates an incredible secular tailwind for the entire data center ecosystem, and especially for critical infrastructure providers such as a Celsius.

Speaker Change: Second.

Speaker Change: The overwhelming majority of the nearly 12000 data centers spanning the globe.

Speaker Change: Are still utilizing highly inefficient and antiquated air cooled solutions and single phase water cooling technologies represent a single digit percentage of calling installations.

Dino Fortunato: In the short term, single-phase water-based technologies are expected to expand their share of the liquid cooling market as data centers install infrastructure for this technology. However, these solutions have significant limitations. We believe that Accelsius's NuCool technology is superior to single-phase water-based technologies. For data center operators already using single-phase, switching to Accelsius' NuCool products does not require a seismic shift or costly rip-and-replace approach. Companies that currently use single-phase cooling solutions can easily de-risk and future-proof their data centers by swapping out their single-phase solutions for the Accelsius NuCool technology. This allows them to adopt a more efficient and safer solution while utilizing existing infrastructure. Efficiency is among the future-proofing benefits of our solution.

Speaker Change: And the short term single phase water based technologies are expected to expand their share of the liquid cooling market as data centers installed infrastructure for this technology.

Dino Fotirero: However... These solutions have significant limitations. We believe that a Celsius' new cool technology is superior to single phase water-based technology. For data center operators already using single phase, switching to a Celsius new cool product does not require a seismic shift or costly rip and replace approach. Companies that currently use single-phase cooling solutions can easily de-risk and future-proof their data centers by swapping out their single-phase solutions for the Excelsior's new cool technology. This allows them to adopt a more efficient and safer solution while utilizing existing infrastructure. Efficiency is among the future-proofing benefits of our solution. data center operators and end users that currently employ traditional air cooling can experience a drastic improvement in power usage effectiveness or PoE.

Speaker Change: However.

Speaker Change: These solutions have significant limitations.

Speaker Change: We believe that our Celsius as nuclear technology.

Speaker Change: Purion to single Phase water based technologies.

Speaker Change: For data center operators already using single phase switching to a Celsius, new core products does not require a seismic shift or costly rip and replace approach.

Speaker Change: Companies that currently use single phase cooling solutions.

Speaker Change: Can easily derisk and future proof their data centers by swapping out their single based solutions for yourself, yes, new core technology.

Speaker Change: This allows them to adopt a more efficient and safer solution, while utilizing existing infrastructure.

Speaker Change: Efficiency is among the future proofing benefits of our solution.

Dino Fortunato: Data center operators and end users that currently employ traditional air cooling can experience a drastic improvement in power usage effectiveness, or PUE, typically reducing the amount of power used for cooling by more than 80%. While the transition from air to liquid cooling can be a bit of a journey, the simpler transition from single-phase water-based technologies to the NuCool solution unlocks additional savings in the form of reduced HVAC load and increased free cooling. In fact, test data captured in our lab, paired with climate data provided by ASHRAE, show that customers utilizing our two-phase technology in comparison to single-phase technology in hard-to-cool locations such as Southeast Asia and the Middle East can see tremendous benefits.

Speaker Change: Data center operators.

Speaker Change: And end users.

Speaker Change: That currently employ traditional air cooling can experience a drastic improvement in power usage effectiveness R E T.

Dino Fotirero: typically reducing the amount of power used for cooling by more than 80%. And while the transition from air to liquid cooling can be a bit of a journey, the simpler transition from single-phase water-based technologies to the new cool solution unlocks additional savings in the form of reduced HVAC load and increased free cooling. In fact, test data captured in our lab. paired with climate data provided by ASHRAE. show that customers utilizing our two-phase technology in comparison to single-phase technology in hard-to-cool locations, such as Southeast Asia and the Middle East, can see tremendous benefits.

Speaker Change: Typically reducing the amount of power used for cooling by more than 80%.

Speaker Change: And while the transition from air to liquid cooling can be a bit of a journey.

Speaker Change: It's simpler transition from single Phase water based technologies to the Nucor solution.

Speaker Change: Unlocks additional savings.

Speaker Change: The form of reduced H, Bac load and increased free calling in.

Speaker Change: In fact.

Speaker Change: Test data captured in our lab.

Speaker Change: Third with climate data provided by Ashray.

Speaker Change: So that customers utilizing our two phase technology and comparison to single based technology and hard to call locations, such as southeast Asia, and the middle East can see tremendous benefits specifically.

Dino Fortunato: Specifically, this study indicated that our NeuCool technology allows AI data center customers in Singapore the ability to utilize free cooling 97% of the time, in comparison to 34% of the time with single-phase technologies. Now, let's discuss how data center operators are thinking about the future. It is widely understood across the data center ecosystem that air cooling solutions are largely insufficient for existing and future generations of processors. Based on feedback we receive from key customers and early single-phase deployments, we believe that data center operators are increasingly recognizing the benefits of leapfrogging single-phase cooling altogether as rack densities increase. Turning directly to two-phase direct-to-chip solutions like our NeuCool platform can help data center operators meet sustainability targets, uphold service level agreements, or SLAs, and protect ROI.

Dino Fotirero: Specifically... This study indicated that our new cool technology allows AI data center customers in Singapore the ability to utilize free cooling 97% of the time in comparison to 34% of the time with single-phase technologies.

Speaker Change: This study indicated that our nuclear technology allows AI data center customers in Singapore, the ability to utilize free calling 97% of the time in comparison to 34% of the time with single cell technologies now, let's discuss how data center operators are thinking about the future.

Dino Fotirero: Now let's discuss how data center operators are thinking about the future. It is widely understood across the data center ecosystem that air cooling solutions are largely insufficient for existing and future generations of processes. Based on feedback we received from key customers and early single-phase deployments, we believe that data center operators are increasingly recognizing the benefits of leapfrogging single-phase cooling altogether as rack densities increase. Turning directly to two-phase, direct-to-chip solutions like our NuCool platform can help data center operators meet sustainability targets, uphold service-level agreements, or SLAs, and protect ROI. The newest AI-focused chipsets expected to enter the market in late 2025 and 2026, such as NVIDIA's RUBIN and AMD's MI350, will require liquid cooling.

Speaker Change: It is widely understood across the data center ecosystem that are point solutions are largely insufficient for existing and future generations of processors.

Speaker Change: Just on feedback we received from key customers and early single phase deployments. We believe that data center operators are increasingly recognizing the benefits of leapfrogging single-phase cooling altogether as rack densities increase turning directly to two-phase directed chip solutions like our nucor.

Speaker Change: That form can help datacenter operators meet sustainability targets uphold service level agreement or SLA.

Dino Fortunato: The newest AI-focused chipsets expected to enter the market in late 2025 and 2026, such as NVIDIA's Rubin and AMD's MI350, will require liquid cooling. We believe this dynamic will drive accelerated adoption. To demonstrate the drastic rack density impact of these ultra-high thermal design power processors, a quick look into NVIDIA's five-year product roadmap shows near-term rack densities anticipated to eclipse 250 kilowatts per rack and rapidly approach 600 kilowatts, while other chip and server OEMs are targeting configurations landing at 1 megawatt per rack before 2030. The so-called thermal wall is very real. According to guidelines put forth by ASHRAE, the industry has already extended beyond the abilities of air cooling and is approaching the limitations of single-phase, water-based, direct-to-chip cooling technologies at breakneck speed.

Speaker Change: And protect our ROI.

Speaker Change: The newest AI focused chipsets expected to enter the market in late 2025, and 2026, such as in videos Rubin and Amd's <unk> 350.

Speaker Change: Will require liquid cooling.

Dino Fotirero: We believe this dynamic will drive accelerated adoption. to demonstrate the drastic rack density impact of these ultra-high thermal design power processes. A quick look into NVIDIA's five-year product roadmap shows near-term rack densities anticipated to eclipse 250 kilowatts per rack and rapidly approach 600 kilowatts, while other chip and server OEMs are targeting configurations landing at one megawatt per rack before 2030. The so-called thermal wall is very real. And according to guidelines put forth by ASHRAE, the industry has already extended beyond the abilities of air cooling and is approaching the limitations of single-phase, water-based, direct-to-chip cooling technologies at breakneck speed.

Speaker Change: We believe this dynamic will drive accelerated adoption.

Speaker Change: To demonstrate the drastic rack density impact of these ultra high thermal design power processors.

Speaker Change: A quick look into and videos five year product roadmap shelves near term rack density is anticipated to eclipse 250 kilowatts per rack and rapidly approached 600 kilowatts.

Speaker Change: While their chip and server Oems are targeting configurations landing at one megawatt per rack before 2030.

Speaker Change: The so called thermal law is very real.

Speaker Change: And according to guidelines put forth by Ashray. The industry has already extended beyond the ability of air cooling and is approaching the limitations of single phase water based directed chip cooling technologies.

Dino Fortunato: Today, the current liquid cooling market is estimated at $1.3 billion, and it is growing at an annual rate of approximately 30%, according to the Dell'Oro Group, driven by advancements in AI and chip technology, as I just mentioned. The Dell'Oro Group estimates that the market will grow to a $5 billion market by 2028. This represents a significant unmet market need, and Accelsius, armed with our NuCool technology, has positioned itself at the forefront of the future adoption cycle. Studies show our NuCool solution is superior to current single-phase direct-to-chip systems and benefits a data center operator in five key ways. The first, superior heat removal. Our technology offers 6 to 8 degrees Celsius more headroom, which unlocks a myriad of benefits for data center operators and end users.

Dino Fotirero: Today, the current liquid cooling market is estimated at $1.3 billion. And it is growing at an annual rate of approximately 30% according to the Dell Oro Group. driven by advancements in AI and chip technology, as I just mentioned. The Del Oro Group estimates that the market will grow to a $5 billion market by 2028.

Speaker Change: Breakneck speed.

Speaker Change: Today.

Speaker Change: Current liquid cooling market is estimated at $1 3 billion.

Speaker Change: And it is growing at an annual rate of approximately 30%. According to the del Oro group driven by advancements in AI and chip technology as I just mentioned.

Speaker Change: The del Oro group estimates that the market will grow to a $5 billion market by 2028. This represents a significant unmet market need and a celsius.

Dino Fotirero: This represents a significant unmet market need and a sell- armed with our new cool technology has positioned itself at the forefront of the future adoption cycle.

Speaker Change: Armed with our nuclear technology has positioned itself at the forefront of the future adoption cycle.

Dino Fotirero: Studies show our new cool solution is superior to current single-phase direct-to-chip systems and benefits a data center operator in five key ways. The first which unlocks a myriad of benefits for data center operators and end users. These benefits include increased potential for heat reuse applications. Reduce capex associated with costly infrastructure. and the ability to handle future generations of processors with increased confidence. Use of non-conductive dielectric fluid. Unlike leaks from water-based cooling systems that can cause millions of dollars in damage to IIT equipment, studies show that if a leak of our dielectric refrigerant were to occur, it would not result in IT equipment damage.

Speaker Change: Studies show, our Nucor solution is superior to current single phase directed chip systems and benefits of data center, operator, and five key ways. The first.

Speaker Change: Carrier heat removal.

Speaker Change: Our technology offers six to eight degrees Celsius more headroom.

Speaker Change: Which unlocks a myriad of benefits.

Speaker Change: Our data center operators.

Dino Fortunato: These benefits include increased potential for heat reuse applications, reduced CapEx associated with costly infrastructure, and the ability to handle future generations of processors with increased confidence. 2, use of non-conductive dielectric fluid. Unlike leaks from water-based cooling systems that can cause millions of dollars in damage to IT equipment, studies show that if a leak of our dielectric refrigerant were to occur, it would not result in IT equipment damage. To put the impact of leaks in context, current generation GPUs can cost upwards of $60,000 each and carry 4 to 5-month lead times, which can impact an operator's or end user's realized return on investment. 3, warranty. We provide peace of mind with 2 and 5-year limited warranty options and offer additional coverage that replaces server electronics if damaged due to leaks of our refrigerant.

Speaker Change: And then users these.

Speaker Change: These benefits include increased potential for heat reuse applications.

Speaker Change: <unk> capex associated with costly infrastructure.

Speaker Change: And the ability to handle future generations of processors with increased confidence.

Speaker Change: <unk>.

Speaker Change: Use of non conductive dielectric fluid.

Speaker Change: Unlike leaks from water based cooling systems that can cause millions of dollars in damage to equipment studies show that if a leak of our dielectric refrigerant work to occur.

Speaker Change: It would not result in equipment damage.

Dino Fotirero: put the impact of leaks in context. Current generation GPUs can cost upwards of $60,000. and carry four to five month lead time. which can impact an operator's or end user's realized return on investment. Number three, warranty. We provide peace of mind with two and five year limited warranty options. and offer additional coverage that replaces server electronics if damaged due to leaks of our refrigerant. Additionally, our relationships with server OEMs and integrators allow us to warranty as Celsius-enabled IT equipment, eliminating a large hurdle to adoption of our new cool technology. Number four, lower OPEX. Our technology can run in an environment with up to 45 degrees C facility water supply dependent on processor and rack configuration.

Speaker Change: To put the impact of leasing context.

Speaker Change: Current generation Gpus can cost upwards of $60000 each and.

Speaker Change: And carry four to five month lead times.

Speaker Change: Which can impact and the operators are end users realized return on investments number three warranty.

Speaker Change: We provide peace of mind with two and five year limited warranty options and offer additional coverage that replaces server electronics, if damaged due to leaks of our refrigerant.

Dino Fortunato: Additionally, our relationships with server OEMs and integrators allow us to warranty Accelsius-enabled IT equipment, eliminating a large hurdle to adoption of our NeuCool technology. Number 4, lower OpEx. Our technology can run in an environment with up to 45 degrees Celsius facility water supply, dependent on processor and rack configuration, compared to 27 to 32 degrees Celsius facility water for single-phase technologies. This allows operators to run chillers less and utilize free cooling, which can provide data center operators up to 4% energy savings per 1 degree Celsius increase, according to data published by Vertiv. Number 5, ease of maintenance. All of our systems are built with hot-swappable components that don't require a licensed technician to manage. The systems also don't need to be constantly monitored or flushed, which eliminates costly maintenance services, reduces on-site staff, and minimizes system downtime.

Speaker Change: Additionally, our relationships with server Oems and integrators.

Speaker Change: Wow us to warranty as Celsius enabled equipment, eliminating a large hurdle so adoption of our new pool technology.

Speaker Change: For lower Opex.

Speaker Change: Our technology can run in an environment without the 45 degree C facility water supply dependent on processor and rack configuration compared to 27% to 32 degrees C facility water for single Phase technologies. This allows operators to run chillers less and.

Dino Fotirero: compared to 27 to 32 degrees C facility water for single-phase technology. This allows operators to run chillers less and utilize free cooling, which can provide data center operators up to 4% energy savings per one degree C increase, according to data published by Virtus.

Speaker Change: <unk> three cooling.

Speaker Change: Which can provide data center operators.

Speaker Change: Up to 4% energy savings per one degrees C increase according to data published by Virtu.

Dino Fotirero: Number five. ease of maintenance. All of our systems are built with hot, swappable components that don't require a licensed technician to manage. Systems also don't need to be constantly monitored or flushed, which eliminates costly maintenance services, reduces on-site staff, and minimizes system downtime.

Speaker Change: Number five.

Speaker Change: Ease of maintenance.

Speaker Change: All of our systems are built with hot Swappable components that don't require a license technician to manage.

Speaker Change: The systems also don't need to be constantly monitor are flushed, which eliminate costly maintenance services reduces onsite staff.

Speaker Change: And Minimises system downtime.

Dino Fortunato: Today, Accelsius has three products with several more in development. Rather than just technology, we offer a full product set which provides flexibility for data center environments, regardless of use case, location, or scale. Our flexible solutions with in-rack and multi-rack form factors can be deployed within existing data center infrastructures, brownfield sites, without significant cost or downtime and give data center design firms a full portfolio of highly efficient solutions to draw from when designing new facilities or greenfield sites. We've included specific product details within the slides accompanying today's presentation. The most important thing to highlight between the various solutions is that each is designed to address a specific market participant need, and each product represents a platform that can and will evolve as the market continues to mature.

Dino Fotirero: Today, Asceltis has three products, with several more in development. Rather than just technology, we offer a full product set which provides flexibility for data center environments regardless of use case, location, or scale. Our flexible solutions with in-rack and multi-rack form factors can be deployed within existing data center infrastructures, brownfield sites. without significant costs or downtime, and give data center design firms a full portfolio of highly efficient solutions to draw from when designing new facilities or greenfield sites. We've included specific product details within the slides accompanying today's presentation. But the most important thing to highlight between the various solutions is that each is designed to address a specific market participant need, and each product represents a platform that can.

Speaker Change: Today, our Celsis has three products with several more in development rather than just technology, we offer a full product set which provides flexibility for datacenter environments, regardless of use case location or scale.

Speaker Change: Our flexible solutions with interact and multi rack form factors.

Speaker Change: Can be deployed within existing data center infrastructures brownfield sites.

Speaker Change: Without significant costs our downtime.

Speaker Change: We have data center design firms, a full portfolio of highly efficient solutions to draw from when designing new facilities are greenfield sites.

We've included specific product details within the slides accompanying today's presentation.

Speaker Change: But the most important thing to highlight between the various solutions is that each is designed to address specific market participant need and each product represents a platform that can.

Dino Fotirero: and will evolve as the market continues to mature.

Speaker Change: And will evolve as the market continues to mature from.

Dino Fortunato: From a competitive perspective, we believe there is only one other player in the market today that offers a viable two-phase direct to chip liquid cooling technology, and Accelsius is in a lead position. In a multiple billion-dollar market such as this, even capturing a very small percentage of the market share would lead to tremendous growth and success. Now, I'd like to frame the magnitude of the two-phase liquid cooling adoption cycle and how that could translate to results. As you've heard from the Innventure team, Accelsius is focused on building relationships with four key groups: hyperscalers and multinational OEMs, global resellers, colocation providers, and AI-as-a-service provider, also referred to as neoclouds. Today, I will focus on the available opportunities with hyperscalers, multinational OEMs, and our global resellers. First, hyperscalers regularly require large quantities of racks, with some needing approximately 1,000 racks per week.

Dino Fotirero: From a competitive perspective, we believe there is only one other player in the market today that offers a viable two-phase direct-to-chip liquid cooling technology, and DeCelsius is in a lead position. In a multiple billion dollar market such as this, even capturing a very small percentage of the market share would lead to tremendous growth and success.

Speaker Change: From a competitive perspective.

Speaker Change: We believe there is only one other player in the market today that offers a viable two phase directed chip liquid cooling technology and as Celsius is in a lead position.

Speaker Change: In a multiple billion dollar market such as this even capturing a very small percentage of the market share would lead to tremendous growth and success.

Dino Fotirero: Now, I'd like to frame the magnitude of the Two-Phase Liquid Cooling Adoption Cycle. and how that could translate to results. As you've heard from the InVenture team, CELCIS is focused on building relationships with four key groups. hyperscalers and multinational OEMs, global resellers, co-location providers, and AI as a service provider.

Speaker Change: Now I'd like to frame the magnitude of the two phase liquid cooling adoption cycle.

Speaker Change: And how that could translate to results as you've heard from the venture team.

Speaker Change: <unk> is focused on building relationships with four key groups.

Speaker Change: Hyper scaler and multinational Oems.

Speaker Change: Global resellers co.

Speaker Change: Co location providers and AI as a service provider.

Dino Fotirero: also referred to as neoplasm.

Speaker Change: Also referred to as Neil clouds.

Dino Fotirero: Today, I will focus on the available opportunities with hyperscale. multinational OEMs, and our global resellers. Hyperscalers regularly require large quantities of RAC. some need approximately 1,000 racks per week. To provide an illustration for the true size of the opportunity, a single 1,000 rack order would translate into revenues approaching nine figures. that addressable market presents a truly compelling opportunity available to us. Not only is the opportunity real. The engagement we have with the hyperscalers is real. We are currently deep in discussions with most of the major players, having met some of the companies well over 10 times.

Speaker Change: Today, I will focus on the available opportunities with Hyperscale.

Speaker Change: Multinational Oems.

Speaker Change: And our global resellers.

Speaker Change: Hyper scaler regularly require large quantities of racks with some new approximately 1000 racks per week to provide an illustration for the true size of the opportunity.

Dino Fortunato: To provide an illustration for the true size of the opportunity, a single 1,000-rack order would translate into revenues approaching nine figures. That addressable market presents a truly compelling opportunity available to us. Not only is the opportunity real, the engagement we have with the hyperscalers is real. We are currently deep in discussions with most of the major players, having met some of the companies well over 10 times. They understand the value the technology provides and know that broader adoption is only a matter of time. Winning the confidence and volume orders from a hyperscale customer is a deliberate, multi-phase process that requires alignment across numerous internal stakeholders, with each evaluating how our technology supports their technical architecture roadmap. These are not everyday decisions. They're made in defined windows tied to platform refresh cycles and require detailed reviews, technical validation, and multi-party sign-off.

Speaker Change: A single 1000 rack order would translate into revenues approaching nine figures.

Speaker Change: That addressable market presents a truly compelling opportunity available to us not only is the opportunity real.

Speaker Change: The engagement, we have with the Hyperscale as Israel. We are currently deep in discussions with most of the major players having met some of the companies well over 10 times. They understand the value of the technology provides and know that broader adoption is only a matter of time, winning the confidence.

Dino Fotirero: They understand the value the technology provides and know that broader adoption is only a matter of time.

Dino Fotirero: Winning the confidence and volume orders from a hyperscale customer is a deliberate multi-phase process that requires alignment across numerous internal stakeholders, with each evaluating how our technology supports their technical architecture roadmap. These are not everyday decisions. They're made in defined windows, tied to platform refresh cycles, and require detailed reviews, technical validation, and multi-party sign-off. The process typically begins with lab testing, followed by formal proof-of-concept deployments that run 60 to 120 days and may involve several iterations. From there, a pilot deployment is initiated to evaluate performance under real workloads and validate manufacturing and supply chain readiness.

Speaker Change: And volume orders from a hyperscale customer as a deliberate multi phased process that requires alignment across numerous internal stakeholders with each evaluating how our technology supports their technical architecture roadmap these or not.

Speaker Change: Everyday decisions, they're made in defined windows tied to platform refresh cycles.

Speaker Change: And require detailed reviews technical validation and multi party sign off the process typically begins with lab testing followed by formal proof of concept deployments that runs 60 to 120 days and may involve several iterations from there a pilot.

Dino Fortunato: The process typically begins with lab testing, followed by formal proof-of-concept deployments that run 60 to 120 days and may involve several iterations. From there, a pilot deployment is initiated to evaluate performance under real workloads and validate manufacturing and supply chain readiness. The questions we're fielding now focus on performance data, POC site selection, test plans, and execution timelines. Clear signs we've moved from interest to evaluation. While orders take time in this space, we are seeing steady traction, strong engagement, and continued momentum as our technology proves itself in the field. Second, let's review our focus on the global OEMs that design, build, and supply the infrastructure technology used to support data center operations. OEMs represent attractive partners, given their scale, reach, and extensive customer networks.

Speaker Change: Deployment is initiated.

Speaker Change: <unk> performance under real workloads, and validate manufacturing and supply chain readiness. The questions. We're fielding now focus on performance data plc site selection test plans and execution timelines clear signs we've moved from interest to evaluate.

Dino Fotirero: The questions we're fielding now focus on performance data. POC site selection, test plans, and execution timelines. Clear signs we've moved from interest to evaluation. While orders take time in this space, we are seeing steady traction, strong engagement, and continued momentum as our technology proves itself in the field.

Speaker Change: <unk>, while orders take time in this space, we are seeing steady traction strong engagement and continued momentum as our technology proves itself in the field second.

Dino Fotirero: Second, let's review our focus on the global OEMs that design, build, and supply the infrastructure technology used to support data center operations. OEMs represent attractive partners given their scale, reach, and extensive customer networks. It should be noted that these global OEMs generate billions of dollars of revenue and require significant volumes to have a meaningful impact on their respective businesses. Aseltius has a current OEM relationship to white label a solution, which includes modest minimum volume commitments. That said, our OEM partner, like other global players, typically does not white label a product for subscale volumes. They white label solutions that can scale with market demand, and we believe Aseltius is well positioned to fulfill that need when it arises.

Speaker Change: Let's review our focus on the global Oems that design build and supply the infrastructure technology used to support data center operations.

Speaker Change: <unk> represent attractive partners given their scale reach and extensive customer networks. It should be noted that these global Oems generate billions of dollars of revenue and require significant volumes to have a meaningful impact on their respective businesses.

Dino Fortunato: It should be noted that these global OEMs generate billions of dollars of revenue and require significant volumes to have a meaningful impact on their respective business. Accelsius has a current OEM relationship to white label its solution, which includes modest minimum volume commitments. That said, our OEM partner, like other global players, typically does not white label a product for sub-scale volumes. They white label solutions that can scale with market demand, and we believe Accelsius is well-positioned to fulfill that need when it arises. What's going to drive that market demand? As I touched on earlier, NVIDIA recently rolled out their GPU roadmap for the next several years, which shows extreme anticipated increases in rack densities. The necessary computing power needed to enable AI is undeniable. Constituents across the data center ecosystem need to act quickly and need to act boldly to stay ahead of this wave.

Speaker Change: This has a current OEM relationship to white label solution, which includes modest minimum volume commitments that said, our OEM partner like other global players typically does not white label, a product first subscale volumes, a white label solution.

Speaker Change: And that can scale with market demand and we believe a celsius is well positioned to fulfill that need when it arises and what's going to drive that market demand as I touched on earlier.

Dino Fotirero: And what's going to drive that market demand? As I touched on earlier, NVIDIA recently rolled out their GPU roadmap for the next several years, which shows extreme anticipated increases in rack densities. The necessary computing power needed to enable AI is undeniable. Constituents across the data center ecosystem need to act quickly and need to act boldly to stay ahead of this wave. Ascelsius is doing just that. Ascelsius's current offering of solutions has been purpose-built to handle the increasing rack densities anticipated well into 2026. We also have a sophisticated roadmap under development that aims to handle projected densities out to 2027 and beyond.

Speaker Change: And video recently rolled out their GPU roadmap for the next several years, which it shows extreme anticipated increases in rack densities the necessary computing power needed to enable AI is undeniable constituents across the data center ecosystem needed to act.

Speaker Change: Quickly and need to act boldly to stay ahead of this wave of Celsis is doing just that <unk> current offering of solutions has been purpose built to handle the increasing rack densities anticipated well into 2026, we also have a.

Dino Fortunato: Accelsius is doing just that. Accelsius' current offering of solutions has been purpose-built to handle the increasing rack densities anticipated well into 2026. We also have a sophisticated roadmap under development that aims to handle projected densities out to 2027 and beyond. Our deep technical team is focused on tackling the most important challenges facing data center operators and end users, which is what drives our impressive roadmap. The team is working on improved vaporizer designs that enable extreme heat fluxes and challenging processor designs, evaluating developments in refrigerants and new working fluids, and developing joint solutions with HVAC equipment manufacturers to allow convenient adoption of the NeuCool family of products. NVIDIA's rollout has coincided with an explosion of interest in Accelsius over the last 60 days or so.

Speaker Change: <unk> roadmap underdevelopment that aims to handle projected densities out to 2027 and beyond.

Dino Fotirero: Our deep technical team is focused on tackling the most important challenges facing data center operators and end users, which is what drives our impressive roadmap. The team is working on improved vaporator designs that enable extreme heat fluxes and challenging processor designs, evaluating developments in refrigerants and new working fluids, and developing joint solutions with HVAC equipment manufacturers to allow convenient adoption of the new cool family of products.

Speaker Change: Our deep technical team is focused on tackling the most important challenges facing data center operators and end users.

Speaker Change: Is what drives our impressive roadmap. The team is working on improved vapor later designs that enable extreme heat fluxes and challenging processor designs.

Speaker Change: <unk> developments of refrigerants, and new working fluids, and developing joint solutions with HVAC equipment manufacturers to allow convenient adoption of the new <unk> family of products and video rollout has coincided with an explosion of interest and Theres Celsius over the last 60 days.

Dino Fotirero: NVIDIA's rollout has coincided with an explosion of interest in the Celsius over the last 60 days. Marketing lead generation, where leads are defined as touches or interactions with market participants, has spiked over 300% in 2025 compared to the prior trailing four-month period. These leads are coming in from a diverse set of data center constituents spanning the four main groups we are focused on, hyperscalers, OEMs, resellers, co-location operators, and AI-as-a-service operators. We've also experienced a notable uptick in our strategic partner network. which has grown by close to 200% since the start of 2025. In 2025 alone, we've added partners such as WESCO, Global Switch, Telehealth.

Dino Fortunato: Marketing lead generation, where leads are defined as touches or interactions with market participants, has spiked over 300% in 2025 compared to the prior trailing 4-month period. These leads are coming in from a diverse set of data center constituents spanning the 4 main groups we are focused on, hyperscalers, OEMs, resellers, colocation operators, and AI-as-a-service operators. We've also experienced a notable uptick in our strategic partner network, which has grown by close to 200% since the start of 2025. In 2025 alone, we've added partners such as WESCO, Global Switch, Telehouse, Park Place Technologies, and others are engaged in nearing agreement. We expect several meaningful announcements in the coming weeks and months. Now, over half of the opportunities that come to us originate from a selling partner or manufacturing rep, which demonstrates the value of our strategy.

Speaker Change: So marketing regeneration, where leads are defined as touches or interactions with market participants has spiked over 300% and 2025 compared to the prior trailing four months' period. These leads are coming in from a diverse set of data center constituents spanning the form.

Speaker Change: Main groups, we are focused on Hyperscale Oems resellers co location operators.

Speaker Change: AI as a service operators. We've also experienced a notable uptick in our strategic partner network, which has grown by close to 200% since the start of 2025.

Speaker Change: In 2025 alone we've added partners such as Wesco Global switch tally House <unk>.

Dino Fotirero: Park Place Technologies, and others are engaged in nearing agreement. We expect several meaningful announcements in the coming weeks and months. Now, over half of the opportunities that come to us originate from a selling partner or manufacturing rep, which demonstrates the value of our strategy. We believe that focusing on the four key groups I outlined above gives us the reach and scale needed to drive significant growth. For example, partnerships with value-added distributors such as Avnet and Clime provide access to approximately 4,000 bars globally. which simply can't be replicated using a rifle-shot approach and increases the velocity with which we can service new clients.

Speaker Change: Place technologies, and others are engaged and nearing agreement, we expect several meaningful announcements in the coming weeks and months now over half of the opportunities that come to us originate from a selling partner or manufacturing rep, which demonstrates the value of our strategy, we believe that focusing on the.

Dino Fortunato: We believe that focusing on the four key groups I outlined above gives us the reach and scale needed to drive significant growth. For example, partnerships with value-added distributors such as Avnet and Climb provide access to approximately 4,000 VARs globally, which simply can't be replicated using a rifle shot approach and increases the velocity with which we can service new clients. In addition to the ramp in the number of inquiries we've received, the proposals we are generating are increasing both in total scope and average price. The average proposal size at the end of 2024 was typically for single-unit proof of concept systems. Today, proposals average between $2 million and 4 million, which demonstrates Accelsius' inclusion in full-scale production opportunities. Let's now discuss Accelsius' ability to meet these levels of demand.

Speaker Change: Four key groups I outlined above gives us the reach and scale needed to drive significant growth for example partnerships with value added distributors, such as Avnet and climb provide access to approximately 4000 vars globally.

Speaker Change: Which simply can't be replicated using a rifle shot approach and increases the velocity with which we can service new clients. In addition to the ramp in the number of inquiries. We've received the proposals we are generating are increasing both in total scope and average price. The average proposal size at the end of 2024.

Dino Fotirero: In addition to the ramp and the number of inquiries we've received, the proposals we are generating are increasing both in total scope and average price. The average proposal size at the end of 2024 was typically for single-unit proof-of-concept systems. Today, proposals average between 2 million and 4 million, which demonstrates the Celsius' inclusion in full-scale production opportunities.

Speaker Change: Was typically for single unit proof of concept systems today proposals to average between $2 million and $4 million, which demonstrates itself is inclusion and full scale production opportunities.

Dino Fotirero: Let's now discuss a salesperson's ability to meet these levels of demand. One question we've frequently heard from investors is what's a Celsius' current manufacturing capacity? And how does that translate into revenue and profit? We anticipate having sufficient internal manufacturing capacity to reach profitability, which we believe would happen by delivering around 100 racks per month. Clearly, the volume potential we've outlined here, based on the size of the addressable market far exceeds that 100 rack per month threshold. While we aren't providing detail on longer-term unit economic expectations, We do expect to achieve significant operating leverage if we receive orders that ramp into the thousands and tens of thousands of racks.

Speaker Change: Now I'll discuss our celsis ability to meet these levels of demand.

Dino Fortunato: One question we've frequently heard from investors is what's Accelsius' current manufacturing capacity, and how does that translate into revenue and profit? We anticipate having sufficient internal manufacturing capacity to reach profitability, which we believe would happen by delivering around 100 racks per month. Clearly, the volume potential we've outlined here, based on the size of the addressable market, far exceeds that 100-rack-per-month threshold. While we aren't providing detail on longer-term unit economic expectations, we do expect to achieve significant operating leverage if we receive orders that ramp into the thousands and tens of thousands of racks. This should give investors a good sense of why Innventure has such conviction in the economics and long-term growth opportunity for the business.

Speaker Change: One question, we frequently heard from investors is what's the Celsius as current manufacturing capacity.

Speaker Change: And how does that translate into revenue and profit.

Speaker Change: Anticipate having sufficient internal manufacturing capacity to reach profitability, which we believe would happen by delivering around 100 racks per month clearly the volume potential we've outlined here based on the size of the addressable market.

Speaker Change: <unk> exceeded that 100 rack per month threshold, while we are providing detail on longer term unit economic expectations.

Speaker Change: We do expect to achieve significant operating leverage if we receive orders that ramp into the one thousands and tens of thousands of racks.

Dino Fotirero: They should give investors a good sense of why Inventure has such conviction in the economics and long-term growth opportunity for the business.

Speaker Change: This should give investors a good sense of why and venture has such conviction and the economics and long term growth opportunity for the business to.

Dino Fortunato: To position the company to meet anticipated market needs, Accelsius is focused on partnering with large, global contract manufacturers that can support the much larger orders we would expect in the future. We currently have one such relationship today. Although we can't disclose specifics like the company name or anticipated volume, we can confirm it is with a well-known contract manufacturing company whose primary focus is the tech hardware industry and who would be able to handle a 10,000-plus rack order if received today. When Accelsius receives a large-scale order, fulfillment planning is already well underway. Our supply chain team operates with a proactive readiness model, aligning internal and contract manufacturing capabilities to meet volume and timeline expectations. With a North American-focused supply chain and scalable production capacity, both internal and external, we are positioned to deliver at pace.

Dino Fotirero: To position the company to meet anticipated market needs, Ascelsius is focused on partnering with large, global contract manufacturers that can support the much larger orders we would expect in the future. We currently have one such relationship today, and although we can't disclose specifics like the company name or anticipated volume, We can confirm it is with a well-known contract manufacturing company whose primary focus is the tech hardware industry and who would be able to handle a $10,000 plus rack order if received today. When a CELCIS receives a large-scale order, fulfillment planning is already well underway. Our supply chain team operates with a proactive readiness model, aligning internal and contract manufacturing capabilities to meet volume and timeline expectations.

Speaker Change: To position the company to meet anticipated market needs. A Celsius is focused on partnering with large global contract manufacturers that can support a much larger orders, we would expect in the future.

Speaker Change: Currently have one such relationship today.

Speaker Change: And although we can't disclose specifics like the company name our anticipated volume.

Speaker Change: We can confirm it is with a well known contract manufacturing company, whose primary focus is the tech hardware industry and.

Speaker Change: And who would be able to handle 10000, plus rack order if received today.

Speaker Change: When <unk> receives a large scale order fulfillment planning is already well underway.

Speaker Change: Our supply chain team operates with a proactive readiness model aligning internal and contract manufacturing capabilities to meet volume <unk>.

Dino Fotirero: With a North American focused supply chain and scalable production capacity, both internal and external, we are positioned to deliver at pace. In most cases, orders of this nature could be fulfilled within a 90-day With revenue recognized upon delivery, this timeline adds to our conviction that the conversations Ascelsius is having today could lead to strong revenue growth in the back half of 2025.

Speaker Change: And timeline expectations with a north American focused supply chain and scalable production capacity, both internal and external we are positioned to deliver at pace and most cases orders of this nature could be fulfilled within a 90 day window with revenue recognized upon delivery. This.

Dino Fortunato: In most cases, orders of this nature could be fulfilled within a 90-day window, with revenue recognized upon delivery. This timeline adds to our conviction that the conversations Accelsius is having today could lead to strong revenue growth in H2 2025. Thanks again for having me on today's call. We at Accelsius are incredibly proud of the hard work our team puts forth each and every day, and we are excited about the future. With that, I'd like to turn the call back over to Bill Haskell.

Speaker Change: Timeline adds to our conviction that the conversations as Celsius is having today could lead to strong revenue growth in the back half of 2025. Thanks again for having me on today's call. We had a Celsius are incredibly proud of the hard work our team puts forth each and every day and we are excited about the <unk>.

Dino Fotirero: Thanks again for having me on today's call. We at Ascelsius are incredibly proud of the hard work our team puts forth each and every day, and we are excited about the future.

Bill Haskell: With that, I'd like to turn the call back over to Bill. Thank you, Dano. This is a truly exciting opportunity.

Bill: With that I'd like to turn the call back over to Bill.

Bill Haskell: Thank you, Dino. This is a truly exciting opportunity. Before passing it to Dave, let's recap the key takeaways we hope investors will walk away with. Number 1, the liquid cooling market is sizable and growing and is estimated to reach $5 billion within the next 3 years. 2, given the trajectory of increasing chip densities, industry players believe adoption of liquid cooling will be all but required, and Accelsius is at the forefront with the leading technology in the space. Number 3, the company is well-positioned through their contract manufacturing partnerships to capture the wave of liquid cooling adoption and fulfill potentially significant demand. 4, that demand from the large global players we are engaged with far exceeds what Accelsius needs to become a profitable and rapidly growing business. All of the factors underpin our conviction that 2025 will represent an inflection point for revenue growth for Accelsius.

Bill: Thank you Dana this is a truly exciting opportunity.

Bill Haskell: Before passing it to Dave, let's recap the key takeaways we hope investors will walk away with. Number one, the liquid cooling market is sizable and growing and is estimated to reach five billion dollars within the next three. Industry players believe adoption of liquid cooling will be all but required, and Excelsius is at the forefront with the leading technology. Number three, the company was well-positioned through their contract manufacturing partnerships to capture the wave of liquid cooling adoption and fulfill potentially significant demand. And four, that demand from the large global players we are engaged with far exceeds what Excelsior needs to become a profitable and rapidly growing business.

Bill: Before passing it today's let's recap the key takeaways, we hope investors will walk away with.

Bill: Number one the liquid cooling market is sizable and growing and is estimated to be <unk> 5 billion within the next three years.

Bill: Given the trajectory of increasing chip densities industry players believe adoption of liquid cooling will be all of that required an associate is at the forefront with leading technology in this space.

Bill: Three the company is well positioned through their contract manufacturing partnerships to capture the waves of liquid cooling adoption and fulfill potentially significant demand.

And for that demand from the large global players we are engaged with far exceeds what <unk> needs to become a profitable and rapidly growing business.

Bill Haskell: All of the factors underpin our conviction that 2025 will represent an inflection point for revenue growth for Excel. Josh, Dino, and the entire team remain laser-focused on execution and are too market disruptive. Our confidence in the business has never been higher than it is today.

Bill: All of the factors underpinning our conviction that 2025 will represent an inflection point for our revenue growth for associates.

Bill Haskell: Josh, Dino, and the entire team remain laser-focused on execution and are two market disruptors. Our confidence in the business has never been higher than it is today. We're excited to watch Accelsius on its journey to becoming what we believe is at least a $1 billion enterprise value opportunity. With that, I'd like to turn it over to Dave to cover our financials. Dave?

Speaker Change: Josh Dino and the entire team remain laser focused on execution to market Disruptors, our confidence in the business has never been higher than it is today.

Bill Haskell: We are excited to watch Excelsius on its journey to becoming what we believe is at least a $1 billion enterprise value opportunity.

Speaker Change: Excited to watch <unk> journey to become a lumpy believes at least a $1 billion enterprise value opportunity.

Dave Yablonowsky: With that, I'd like to turn it over to Dave to cover our financials. Thanks, Phil, and good afternoon, everyone. Inventure's first quarter revenue was $0.2 million, representing management fees we collected from our management of the Inventus ESG. This was in line with our expectations and consistent with the communication on our last earnings call that we expect most of our revenue growth would be weighted to the second half of the year. As Dino highlighted in his remarks, there is a significant unmet market need for two-phase direct-to-chip liquid cooling. And we believe Ascelsius is well-positioned at the forefront of adoption of this technology.

Speaker Change: With that I would like to turn it over to Dave to cover our financials.

Dave Yablunosky: Thanks, Bill. Good afternoon, everyone. Innventure's Q1 revenue was $20.2 million, representing management fees we collected from our management of the Avendus ESG fund. This was in line with our expectations and consistent with the communication on our last earnings call that we expect most of our revenue growth would be weighted to H2 of the year. As Dino highlighted in his remarks, there is a significant unmet market need for two-phase direct-to-chip liquid cooling, and we believe Accelsius is well-positioned at the forefront of adoption of this technology. We are excited about the momentum that is building at Accelsius. G&A expenses were approximately $20 million for the quarter. This number has four primary components. Non-cash equity-based comp of approximately $5 million.

Speaker Change: Yes.

Dave: Thanks, Bill and good afternoon, everyone.

Dave: <unk> first quarter revenue was <unk> $2 million.

Dave: Representing management fees, we collected from our management of the Adventist ESG Fund.

Dave: This was in line with our expectations and consistent with the communication on our last earnings call that we expect most of our revenue growth will be weighted to the second half of the year.

Dave: As deno highlighted in his remarks, there is a significant unmet market need for two phase directed chip liquid cooling.

Dave: We believe Celsius is well positioned at the forefront of adoption of this technology.

Dave Yablonowsky: We are excited about the momentum that is building at Accel.

Dave: We are excited about the momentum that is building at a Celsius.

Dave Yablonowsky: G&A expenses were approximately $20 million. This number has four primary components. non-cash equity-based comp of approximately $5 million. professional service fees of approximately $6 million for accounting, audit, and legal advisory services related to, among others. regulatory filings and compliance as a new public. $6 million for payroll expense benefits and other operating primarily driven by growth of the cells. and $2 million of non-cash amortization related to our intangible asset. It's important to point out we have deliberately utilized outside professional service. keep our long-term fixed costs related to headcount low. We expect our need to rely on outside professional accounting legal services to decrease over time as we establish additional internal processes for compliance with public company requirements.

Dave: G&A expenses were approximately $20 million for the quarter.

Dave: This number has four primary components.

Dave: Noncash equity based comp of approximately $5 million.

Dave Yablunosky: Professional service fees of approximately $6 million for accounting, audit, and legal advisory services related to, among other things, regulatory filings and compliance as a new public company. $6 million for payroll expense, benefits, and other operating expenses primarily driven by growth at Excelsius. $2 million of non-cash amortization related to our intangible assets. It's important to point out we have deliberately utilized outside professional services to keep our long-term fixed costs related to headcount low. We expect our need to rely on outside professional accounting and legal services to decrease over time as we establish additional internal processes for compliance with public company requirements. Moving down the income statement, we booked a $233 million non-cash goodwill adjustment driven by the write-down of goodwill on the balance sheet.

Dave: <unk> service fees of approximately $6 million for accounting audit and legal advisory services related to among other things regulatory filings and compliance as a new public company.

Dave: $6 million for payroll expense benefits and other operating expenses, primarily driven by growth of the Celsius.

Dave: And $2 million of noncash amortization related to our intangible assets.

Dave: It is important to point out we have deliberately utilized outside professional services to keep our long term fixed costs related to head count low.

Dave: We expect our need to rely on outside professional accounting legal services to decrease over time as we establish additional internal processes for compliance with public company requirements.

Dave Yablonowsky: Moving down the We booked a $233 million non-cash Goodwill adjustment driven by the write-down of Goodwill on the balance sheet. This was a result of the decrease in the company's share price and market capitalization. which were, in part, due to the general downward volatility experienced in the stock. during late February and March. Again, this was non-cash. In the non-operating section of the income statement, we booked a favorable non-cash adjustment of approximately $16 million dollars related to the change in fair value of our warrant and earn-out liability.

Dave: Moving down the income statement.

Dave: We booked $233 million noncash goodwill adjustment driven by the write down of goodwill on the balance sheet.

Dave Yablunosky: This was a result of the decrease in the company's share price and market capitalization, which were in part due to the general downward volatility experienced in the stock market during late February and March. Again, this was non-cash. In the non-operating section of the income statement, we booked a favorable non-cash adjustment of approximately $16 million related to the change in fair value of our warrant and earn out liabilities. EBITDA for the quarter was a loss of approximately $248 million. After adjusting for non-cash items, adjusted EBITDA was a loss of $21.8 million. To say again, we believe 2025 will represent an inflection point for revenue growth at Accelsius. Due to our majority ownership of Accelsius, we expect to see the results of this revenue and earnings growth in our consolidated financial statements in future quarters. Moving to the balance sheet.

Dave: This was a result of the decrease in the company's share price and market capitalization.

Dave: Which were in part due to the general downward volatility experienced in the stock market during late February and March and again this was noncash.

Dave: In the non operating section of the income statement, we booked a favorable noncash adjustment of approximately $16 million related to the change in fair value of our warrant and earn out liabilities.

Dave Yablonowsky: EBITDA for the quarter was a loss of approximately $248 million. But after adjusting for non-cash items, adjusted EBITDA was a loss of $21.8 million. To say again, we believe 2025 will represent an inflection point for revenue growth at a. and due to our majority ownership of the cell. We expect to see the results of this revenue and earnings growth in our consolidated financial statements in future.

Dave: EBITDA for the quarter was a loss of approximately $248 million, but after adjusting for noncash items adjusted EBITDA was a loss of $21 $8 million.

Dave: To say again, we believe 2025 will represent an inflection point for revenue growth at a Celsius.

Dave: And due to our majority ownership of the Celsius, We expect to see the results of this revenue and earnings growth in our consolidated financial statements in future quarters.

Dave Yablonowsky: Moving to the balance. as highlighted on our prior earnings. March 24th, Executive Chairman Mike Otwin. Chief Strategy Officer John Scott. and another related party terminated approximately $18 million worth of Inventure and Aeroflex debt. in exchange for approximately $2.3 million Searing C preferred share. This resulted in an annual interest expense savings of approximately $3 million and reduced our cash expenditure obligations by $18 million. This action underscores our founder's commitment to and confidence in our business strategy.

Dave: Moving to the balance sheet.

Dave Yablunosky: As highlighted on our prior earnings call on 24 March, Executive Chairman Mike Otworth, Chief Strategy Officer John Scott, and another related party terminated approximately $18 million worth of Innventure and AeroFlexx debt in exchange for approximately 2.3 million Series C preferred shares. This resulted in an annual interest expense savings of approximately $3 million and reduced our cash expenditure obligations by $18 million. This action underscores our founders' commitment to and confidence in our business strategy. In Q2, pursuant to our securities purchase agreement with Yorkville Advisors, in two tranches, we issued convertible debentures for an aggregate amount of $30 million. In connection with these issuances, we received gross proceeds of $18 million on 14 April and $9 million on 15 May. This added $27 million of cash to our balance sheet.

Dave: As highlighted on our prior earnings call on March 24th.

Mike: Executive Chairman Mike <unk>.

John Scott: Chief Strategy Officer, John Scott.

John Scott: And another related party terminated approximately $18 million worth of adventure and Aero flex that in.

John Scott: In exchange for approximately $2 3 million series C preferred shares.

John Scott: This resulted in an annual interest expense savings of approximately $3 million and reduced our cash expenditure obligations by $18 million.

John Scott: This action underscores our founder's commitment to and confidence in our business strategy.

Dave Yablonowsky: In addition, in the second pursuant to our securities purchase agreement with Yorkville Advise. In two tranches, we issued convertible Depentures for an aggregate amount of $30 million. In connection with these issuances, we received gross proceeds of $18 million on April 14 and $9 million on May 5. This added $27 million of cash to our balance. These two actions illustrate the active management of our cash and both improve our capital position.

John Scott: In addition in the second quarter pursuant to our Securities purchase agreement with Yorkville advisors.

John Scott: In two tranches, we issued convertible debentures for aggregate amount of $30 million.

John Scott: In connection with these issuances, we received gross proceeds of $18 million on April 14th and $9 million on May 15.

John Scott: This added $27 million of cash to our balance sheet.

Dave Yablunosky: These two actions illustrate the active management of our cash and both improve our capital position. Other notable items on our balance sheet. Inventory. Inventory remains steady from the end of the prior quarter at approximately $5.2 million. We're acting judiciously with our cash, optimizing the need to keep inventory on-hand to meet customer orders while keeping cash on our balance sheet. Intangible assets. This represents developed technology and other intangible assets and amortizes at different intervals, primarily over the next 8 to 15 years. Goodwill. As mentioned earlier, goodwill now stands at approximately $437 million as of 31 March. On to the cash flow statement. In the cash from operating activities section, you can see many of the non-cash items I mentioned earlier. The cash used in investing activities primarily represents the funding given to AeroFlexx through our existing facility comprised of debt securities.

John Scott: These two actions illustrate the active management of our cash in both improve our capital position.

Dave Yablonowsky: Other notable items on our balance sheet. Inventory remains steady from the end of the prior quarter at approximately $5.2 million. We're acting judiciously with our cash, optimizing the need to keep inventory on hand to meet customer orders while keeping cash on our balance.

John Scott: Other notable items on our balance sheet.

John Scott: Inventory.

John Scott: Inventory remained steady from the end of the prior quarter at approximately $5 $2 million.

John Scott: We're acting judiciously with our cash.

John Scott: Optimizing the need to keep inventory on hand to meet customer orders, while keeping cash on our balance sheet.

Dave Yablonowsky: intangible assets. This represents developed technology and other intangible assets. amortizes at different intervals, primarily over the next 8 to 15 years. Goodwill. As mentioned earlier, Goodwill now stands at approximately $437 million as of March 31st.

John Scott: Intangible assets.

John Scott: This represents developed technology and other intangible assets and amortizing at different intervals, primarily over the next eight to 15 years.

John Scott: Goodwill.

John Scott: As mentioned earlier goodwill now stands at approximately $437 million as of March 31.

Dave Yablonowsky: on to the cast. In the Cash from Operating Activities section, you can see many of the non-cash items I mentioned earlier. The cash used in investing activities primarily represents the funding given to heirs. to our existing facility comprised of debt security. The cash provided by financing activity section includes approximately $8.2 million of net cash raised through the Inventure Series C Preferred Stock The issuance of shares through the Yorkville Standby Equity Purchase. separate from the advance mentioned earlier. and cash raise. It's important to say the Inventure team remains focused on additional capital raising. and or operating company level to meet our liquidity needs and fund what we believe are very attractive growth opportunities ahead of us.

John Scott: Onto the cash flow statement.

John Scott: And the cash from operating activities section you can see many of the noncash items I mentioned earlier.

John Scott: The cash used in investing activities, primarily represents the funding given to <unk> through our existing facility comprised of debt securities.

Dave Yablunosky: The cash provided by financing activities section includes approximately $8.2 million of net cash raised through the Innventure Series C preferred stock round, the issuance of shares through the Yorkville standby equity purchase agreement facility, separate from the advance mentioned earlier, and cash raised through Accelsius. It's important to say the Innventure team remains focused on additional capital raises at the Innventure and/or operating company level to meet our liquidity needs and fund what we believe are very attractive growth opportunities ahead of us, with the goal of creating substantial value for our shareholders. With that, we'll open up the call for questions.

John Scott: The cash provided by financing activities section includes approximately $8 2 million of net cash raised through the adventure series C preferred stock round.

John Scott: The issuance of shares through the Yorkville standby equity purchase agreement facility separate from the advanced mentioned earlier and.

John Scott: And cash raised through a Celsius.

John Scott: It is important to say the adventure team remains focused on additional capital raises at the adventure <unk> operating company level to meet our liquidity needs and fund what we believe are very attractive growth opportunities ahead of us with the goal of creating substantial value for our.

Dave Yablonowsky: with the goal of creating substantial value for our share.

Operator: With that, we'll open up the call. Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 1-1 on your telephone, then wait for your name to be announced.

John Scott: <unk>.

With that we'll open up the call for questions.

Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Nehal Chokshi with Northland Capital Markets. Your line is open.

John Scott: Thank you.

Speaker Change: Ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please.

Operator: To withdraw your question, please press start one more again. Please stand by while we compile the Q&A roster.

John Scott: Please stand by while we compile the Q&A roster.

Nahal Chosky: Our first question comes from the line of Nahal Chosky with Northland Capital Markets. Your line is open. Thank you and thank you for bringing Dino onto the call to talk about in detail what Excelsius is doing to capitalize on this massive instruction point for DC's DLC. Going into that discussion there. with respect to the go-to-market. addressing the four different customer types. With the white label agreement with the OEM, was that primarily driven by a end hyperscaler engagement? I think it's broader than that, thanks for the question, by the way. And I can flip this over to Dino in just a second.

Speaker Change: Our first question comes from the line up Nahar Celski with Northland Capital markets. Your line is open.

Nehal Chokshi: Thank you. Thank you for bringing Dino onto the call to talk about in detail what Accelsius is doing to capitalize on this massive inflection point for DC DLC. Going into that discussion there, with respect to the go-to-market, addressing the 4 different customer types. With the white label agreement with the OEM, was that primarily driven by an end hyperscaler engagement?

Thank you.

Speaker Change: Thank you for bringing Dino Austin, a call to talk about in detail what <unk> is doing to capitalize on this massive construction points or do you think DLC.

Speaker Change: And going into that discussion there.

Speaker Change: <unk>.

Speaker Change: With respect to go to market.

Speaker Change: Addressing the four different customer types.

Speaker Change: Let the white label agreement with the OEM.

Speaker Change: Was that primarily driven by a hyper scaler engagement.

Bill Haskell: I think it's broader than that, Nehal. Thanks for the question, by the way, and I can flip this over to Dino in just a second. The OEM that we're doing the white label for has a much broader market than just the hyperscalers. Certainly, they serve various hyperscalers, but they serve a broader market. Dino, if you have any other commentary on that, feel free to jump in and add on.

Speaker Change: I think it's broader than that Noel thanks for the question by the way and I can flip this over to Dino and just a second but.

Bill Haskell: But but the OEM that we're doing the white label for has a much. broader market than just the hyperscalers, certainly they serve various hyperscalers, but they serve a broader market. But Dino, if you have any other commentary on that, you know, feel free to jump in and add on. Yeah, yeah, Bill, the relationship was there to driven not only by a hyperscale, as you mentioned, but more of the overall market demand and kind of where the market is headed. So it could serve as hyperscalers as well as, as you mentioned, a wider breadth of customers.

Speaker Change: But the OEM that we're doing the white label for it has that much.

Speaker Change: What end market then yes the hyperscale.

Speaker Change: Certainly they serve various hyper scaler or they serve a broader market data. If you have any other commentary on that feel free to jump in and add.

Dino Fortunato: Yeah. Bill, the relationship was there driven not only by hyperscaler, as you mentioned, but more of the overall market demand and kind of where the market is headed. It could service hyperscalers as well as you mentioned, a wider breadth of customers.

Speaker Change: Yes, yes it is.

Speaker Change: The relationship was there to.

Speaker Change: Driven not only by a hyperscale as you mentioned, but more of the overall market demand and kind of where the market is headed so it could serve as hyperscale or as well as as you mentioned are wider.

Speaker Change: Breadth of customers.

Bill Haskell: Like co-locators.

Dino Fotirero: like co-op players. Right, right. I totally understand that going through this OEM will address the broader swath of customers that that OEM can adjust. But I guess what I'm trying to get is, did the evolution or the original relationship start with the hybrid? Again, Dina, I'll defer that one to you. You're closer to the ground on that one. Yeah, it didn't start with a hyperscaler. It started with basically with the OEMs driving kind of where they want the solution set or the product set to go from a liquid cooling standpoint and the goals and objectives they want the infrastructure side to meet.

Nehal Chokshi: Yep, understood.

Speaker Change: Understood.

Nehal Chokshi: Right. Totally understand that going through this OEM will address the broader swath of customers that OEM can address. I guess what I'm trying to get at is, did the evolution or the original relationship start with a hyperscaler?

Speaker Change: All right.

Speaker Change: Totally understand that going through this OEM will address.

Speaker Change: Just the broader swath of customers that debt.

Speaker Change: Ken addressed but I guess, what I'm trying to get at.

Speaker Change: The evolution of ordering enrichment relationship start with a hyper scaler.

Bill Haskell: Again, Dino, I'll defer that one to you. You're closer to the ground on that one.

Speaker Change: Again, I'll defer that one to you are closer to the ground on that one.

Dino Fortunato: Yeah. It didn't start with a hyperscaler. It started basically with the OEMs driving kind of where they want the solution set or the product set to go from a liquid cooling standpoint and the goals and objectives they want the infrastructure side to meet. It was definitely the relationship started from specifications that drove towards the larger market. Now we do see hyperscalers being able to use this, neoclouds being able to use this, as well as other users of the data center.

Speaker Change: Yes, it didn't start with a hyperscale or it started with.

Speaker Change: It started with basically with the Oems driving kind of where they want the solution set or the product set to go from a liquid cooling standpoint, and the goals and objectives. They want the infrastructure side to meet so it was definitely.

Bill Haskell: So it was definitely the relationship started from specifications that drove towards a larger like that drove towards the larger market. Now we do see hyperscalers being able to use this, Neo clouds being able to use this as well as other users of the data center. Okay. And with respect to this potential inflection point happening in calendar 25, do you expect it to be served largely through this white label agreement? I would say broadly, broadly no. Meaning, while we certainly expect some volume from those agreements, there's a much, much broader pool of customers that we're engaged with.

Speaker Change: The relationship started from specifications that drove towards a larger.

Speaker Change: Like I said drove towards the larger market now we do see Hyperscale is being able to use this neal clouds being able to use this as well as other.

Speaker Change: Other users of the data center.

Nehal Chokshi: Okay. With respect to this potential inflection point happening in calendar 2025, do you expect it to be served largely through this white label agreement?

Speaker Change: Yeah.

Speaker Change: Okay and with respect to this potential inflection point happening in calendar 'twenty five do you expect it to be served largely through this white label agreement.

Bill Haskell: I would say broadly, no. Meaning, while we certainly expect some volume from those agreements, there's a much broader pool of customers that we're engaged with. Again, Dino, if you want to amplify on any of that, feel free to jump in. There's a broad range. Our activity is kind of through the roof right now in terms of the activity coming to us from all of those various sources, the hyperscalers, the colos, the as-a-service, and the OEMs. Anything to add, Dino?

Speaker Change: I would say broadly.

Speaker Change: Broadly broadly no.

Speaker Change: While there still.

Speaker Change: We expect some volume from from.

Speaker Change: Those agreements there is a much much broader pool of customers that we're engaged with.

Dino Fotirero: And again, if you want to amplify on any of that, feel free to jump in. But there's a there's a broad range. Our activity is kind of through the roof right now in terms of the the activity coming to us from all of those various sources, like the scalers, the COLOs, and the service and the OEMs. So. Okay. All right. No, Bill. I think you nailed it there. Yeah. Our pipeline is definitely filling with customers from all angles or opportunities from all angles, especially those being driven by our ecosystem of partners. They've really turned it on.

Speaker Change: And again, Dana if you want to amplify on any of that feel free to jump in but there's a there's.

A broad range of our activity has gone through the roof right now in terms of.

Speaker Change: The the activity coming to us from all of those various sources not just give us the colo.

Speaker Change: As a service.

Speaker Change: The.

Speaker Change: The Oems so.

Nehal Chokshi: All right.

Speaker Change: Got it.

Dino Fortunato: No, Bill, I think you nailed it there. Yeah. Our pipeline is definitely filling with customers from all angles or opportunities from all angles, especially those being driven by our ecosystem of partners. They've really turned it on. The salesforce has really been able to find a lot of opportunities that our product really addresses the need of that customer base, not just driven from that OEM agreement, driven from the entire set of relationships that we have out there in the ecosystem.

Speaker Change: Alright.

Speaker Change: No Bill I think you nailed it there yet.

Speaker Change: Our pipeline is definitely filling with customers from all angles or opportunities from all angles, especially those being driven by our ecosystem of partners.

Bill Haskell: The sales force has really been able to find a lot of opportunities that our product really addresses the need of that customer base. So not just driven from that OEM agreement, driven from the entire set of relationships that we have out there in the ecosystem. I mean, one of the things you saw from the chart, Nahal, is, you know, we had six of these partners, you know, in, in January, and now it's twenty one. So, all of those have the ability to, you know, they're all channels of one form or another, right? So we're, we're getting, I won't say inundated, but there's a huge amount of activity going on in the space.

Speaker Change: Yes, they really they really turned it on the sales force has really been able to find a lot of opportunities that our product really addresses that need of that customer base.

Speaker Change: So not just driven from that OEM agreement driven from the entire.

Speaker Change: Set of relationships that we have out there in the ecosystem.

Bill Haskell: One of the things you saw from the chart, Nehal, is we had 6 of these partners in January, and now it's 21. All of those have the ability to, they're all channels of one form or another. Right. We're getting, I won't say inundated, but there's a huge amount of activity going on in the space. In terms of the trajectory, I think the entire industry was slower in Q1 and Q2 than they had anticipated. You can sort of see that across the board, but I think they're all quite bullish on the H2 of the year, and that's what we're seeing.

Speaker Change: I mean, what are the things you saw from the chart.

Speaker Change: We had six of these partners.

Speaker Change: In January and now it's 21.

Speaker Change: So all of those have the ability to theyre all channels of one form or another alright, so were getting I won't say inundated.

Speaker Change: Theres, a huge amount of activity going on in the space.

Bill Haskell: And, you know, in terms of the trajectory, I think the entire industry was slower in the first and second quarter than they had anticipated. You know, you can sort of see that across the board, but I think they're all quite bullish on the second half of the year. And that's what we're seeing. And I think that slowdown in the first half was attributable to a number of factors, but mostly. you know, tariffs, uncertainty, and then NVIDIA putting out their roadmap in late February of where they see the, you know, the chips going when and what type.

Speaker Change: And.

Speaker Change: In terms of the trajectory I think the entire industry was slower in the first and second quarter than they had anticipated you can sort of see that across the board, but I think they were all quite bullish on the second half of the year and that's what we're seeing and I think that's slowed down in the first half was attributable to a number of factors, but mostly.

Bill Haskell: I think that slowdown in the H1 was attributable to a number of factors, but mostly tariffs, uncertainty, and then NVIDIA putting out their roadmap in late February of where they see the chips going, when, and what type. Since that inflection point, it's been, as you can see in the data, a significant ramp up in activity.

Speaker Change: Tariffs uncertainty and then Nvidia putting out their roadmap in late February.

Speaker Change: Of where they see.

Speaker Change: Chips going when and what type.

Nahal Chosky: And since that inflection point, it's been, as you can see in the data, you know, a significant ramp up in activity. Got it. That's great. Thank you for that detail.

Speaker Change: Since that inflection point, it's been as you can see in the data.

Speaker Change: A significant ramp up in activity.

Nehal Chokshi: Got it. That's great. Thank you for that detail. Dino, could you comment on the pros and cons of flow versus pool-based cooling?

Speaker Change: Okay.

Speaker Change: Got it that's great. Thank you for that detail.

Dino Fotirero: Dino, could you comment on... pros and cons of flow versus pole-based cooling. Yeah, Bill, I can jump in and briefly address this. Yeah, so when we look at the pool boiling versus slow boiling, you do put in moving components, potential failure points into your cold plate technology that could cause issues in a long-standing operation, especially as we look at reliability and uptime being extremely important to these customers. Additionally, when you have pool boiling, you really have no excess for any overload or any hiccup in the facility water supply. So you're really exiting at 100% vapor quality, and that could lead to cases of dryout, whereas the flow boiling, we always have ample fluid flowing through the cold plates and through the system that allow that additional headroom or a little bit of extra buffer.

Speaker Change: Gino could you comment on.

Speaker Change: The pros and cons of slow versus pull based calling.

Dino Fortunato: Yeah. Bill, I can jump in.

Speaker Change: Yeah.

Bill: Yes, Bill I can jump and then briefly.

Bill Haskell: Yeah, no, go ahead.

Dino Fortunato: briefly address this. Yeah. When we look at the pool boiling versus flow boiling, you do put in moving components, potential failure points into your cold plate technology that could cause issues in a longstanding operation, especially as we look at reliability and uptime being extremely important to these customers. Additionally, when you have pool boiling, you really have no excess for any overload or any hiccup in the facility water supply. You're really exiting at 100% vapor quality, and that could lead to cases of dry out, whereas the flow boiling, we always have ample fluid flowing through the cold plates and through the system that allow that additional headroom or a little bit of extra buffer. I think a rule of thumb from engineering is never to design something size on size or per the exact max requirement.

Bill: Yes, so when we look at the pool boiling versus flow boiling you do put in.

Bill: Moving components potential failure points into your cold play technology.

Bill: That could cause issues.

Bill: Got it.

Bill: And a long standing operation, especially as we look at reliability and uptime being extremely important to these customers. Additionally, when you have poor boiling you really have no access for any overload or any hiccup in the facility water supply so youre really eggs.

Bill: Sitting at 100% vapor quality.

Bill: And that could lead to cases of dry out, whereas the flow boiling we always have ample fluid flowing through the cold place into the system that allow.

Bill: That additional headroom or a little bit of extra buffer.

Dino Fotirero: I think a rule of thumb from engineering is never to really design something size on size or for the exact max requirement. And when you look at pool boiling, that's really what you're doing, because you don't have that excess fluid that's available there if you go outside of normal operating conditions. And what would you say the coal-based boiling guys would point to as shortcomings for the flow-based coal? I think the initial point that they point at is pumping power and whatnot and the fact that you have to have a little bit more fluid inside your system.

Bill: Thank you.

Bill: Our rule of thumb from engineering is never to really to design something size on size or towards the exact Max requirement and when you look at pool boiling thats really what youre doing because you don't have that access fluid. That's available there. If you go outside of normal operating conditions.

Dino Fortunato: When you look at pool boiling, that's really what you're doing because you don't have that excess fluid that's available there if you go outside of normal operating conditions.

Nehal Chokshi: What would you say the pool-based boiling guys would point to as shortcomings for the flow-based cooling?

Speaker Change: And what would you say the <unk>.

Bill: Paul base boiling.

Bill: Guys would point to shortcomings sort of slow base, calling.

Dino Fortunato: I think the initial point that they point at it is pumping power and whatnot, and the fact that you have to have a little bit more fluid inside your system. However, when you look at the cost associated with extra fluid, especially with the fluids that we're utilizing, which are commercially available, relatively low-cost fluids when you talk about overall liquid cooling fluids in general, and the pump power being below those thresholds set by the OEMs of that 1.5%, 2%, really, the benefit that you get from having that resiliency, that robustness in the product that you get with the flow boiling versus the pool boiling, we see that trade-off being a no-brainer going towards the flow side.

Bill: I think the initial point that they point out is pumping power and whatnot and the fact that you have to have a little bit more fluid inside your system. However.

Dino Fotirero: However, when you look at the cost associated with extra fluid, especially with the fluids that we're utilizing, which are commercially available, relatively low-cost fluids when you talk about overall liquid cooling fluids in general. And the pump power being below those thresholds set by the OEMs of that 1.5%, 2%, the benefit that you get from having that resiliency, that robustness in the product that you get with the flow cooling versus the pool boiling, we see that tradeoff being a no-brainer going towards the flow side. Great, and then last question for me and then I'll get back into the queue, but so my understanding is is that there are some hot spots on the black wall architecture, which could be a potential accelerant towards two phase deal.

Bill: However, when you look at the cost associated with extra fluid, especially with the fluids that we're utilizing which are commercially available relatively low cost fluids. When you talk about overall liquid cooling fluids in general.

Bill: The pump power being below those thresholds set by the Oems of that 152%.

You really the benefit that you get from having that resiliency that robustness in the product that you get with the flow.

Bill: Local versus the pool boiling.

Bill: When you see that trade off being a no brainer.

Bill: Going towards the flow side.

Nehal Chokshi: Great. Last question from me, then I'll get back into the queue. My understanding is that there are some hotspots on the Blackwell architecture, which could be a potential accelerant towards two-phase DLC. Any reconnaissance on whether or not NVIDIA can and will mitigate those hotspots on the next generation architecture, Rubin, due out in sometime in calendar 2026?

Speaker Change: Okay, Great and then last question for me and then I'll get back into the queue, but.

Speaker Change: So my understanding is that there are some hotspots.

Speaker Change: Blackwell architecture, which could be a potential accelerant towards two things DLC.

Nahal Chosky: um Any reconnaissance on whether or not NVIDIA can and will mitigate those hot spots on the next generation architecture we're going to do out in some sometime in Canada? Again, Dina, that's in your territory, not mine. Yeah, I would prefer not to answer that question, just due to NDAs and whatnot. Gotcha. Okay. Understood. That's perfectly reasonable. Understandable. I'll cede the floor. Thank you. Thank you Please stand by for our next question.

Speaker Change: Any reconnaissance.

Speaker Change: Whether nvidia.

Speaker Change: Can and will mitigate those hotspots on the next generation of architecture Rubin due out in some time in calendar 'twenty.

Bill Haskell: Again, Dino, that's in your territory, not mine.

Again.

Speaker Change: Yes in your territory not mine.

Dino Fortunato: Yeah. I would prefer not to answer that question. I would prefer not to answer that question just due to NDAs and whatnot.

Speaker Change: Yeah, I would purpose.

Speaker Change: I would prefer not to answer that question.

Speaker Change: Ed.

I would.

Speaker Change: I would prefer not to answer that question, just due to NDA and whatnot.

Nehal Chokshi: Got you. Okay. Understood. That's perfectly reasonable, understandable. I'll cede the floor. Thank you.

Speaker Change: Gotcha, Okay understood that's perfectly reasonable understandable I will cede the floor. Thank you.

Dino Fortunato: Thank you.

Bill Haskell: Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Chip Moore with ROTH Capital Partners. Your line is open.

Speaker Change: Thank you.

Speaker Change: Standby for our next question.

Speaker Change: Okay.

Chip Moore: Our next question comes from the line of Chip Moore with Roth Capital Partners. Your line is open. Hey, thanks for taking the question. I wanted to follow up, I guess, on, you know, appreciate the deep dive on Excelsius. And I think the tone around, you know, revenue inflection certainly sounds like you're feeling more positive on sort of near term trajectory.

Speaker Change: Our next question comes from the line of Chip Moore with Roth Capital Partners. Your line is open.

Chip Moore: Hey, thanks for taking the question. Wanted to follow up, I guess. Appreciate the deep dive on Accelsius. I think the tone around revenue inflection certainly sounds like you're feeling more positive on near-term trajectory. Maybe just expand on that pretty notable increase in lead generation there since February, I guess. You talked about fulfillment being able to be pretty quickly. Just maybe talk about potential to leapfrog single phase, sort of this better now, needed later type mentality, how those conversations are going and your confidence level in that inflection point here in the H2.

Chip Moore: Hey, Thanks for taking the question.

Chip Moore: Wanted to follow up I guess on.

I appreciate the deep dive on <unk> and I think the tone around.

Chip Moore: Revenue inflection certainly sounds.

Chip Moore: Like you are feeling.

Chip Moore: More positive on sort of near term trajectory, maybe just expand on that pretty notable increase in lead generation there since February I guess.

Bill Haskell: Maybe just expand on that pretty notable increase in lead generation there since February, I guess, uh and you talked about fulfillment uh you know being able to be pretty quickly just maybe talk about potential leapfrog uh single phase sort of this better now needed later type mentality how those conversations are going and and uh your confidence level in that inflection point uh here in the second Yeah, let me just start and then I'll let Dana know. add on. First, Chip, thanks for the question and thanks for the interest. So, we have seen, as you saw in the data, you know, a very, very big spike in activity around late February.

Chip Moore: You talked about the fulfillment.

Chip Moore: Being able to be pretty quickly just maybe talk about potential the leapfrog.

Chip Moore: Our single phase sort of it's better now needed later type mentality, how those conversations are going in.

Chip Moore: Your confidence level in that inflection point here in the second half.

Bill Haskell: Yeah. Let me just start, and then I'll let Dino add on. First, Chip, thanks for the question, and thanks for the interest. We have seen, as you saw in the data, a very, very big spike in activity around late February. From that point forward, it's been significant. That data is, I believe it's a kind of a 3-month moving average. When you see it triple from month to month, you can see a pretty significant explosion in activity there. I think that parallels what we're seeing from all the other larger players in the space. I listened to some of the other earnings calls and some of the other principals in the marketplace, and I think they're experiencing the very same kind of activity. We're kind of aligned with that. Obviously, we can't give you any kind of forward-looking guidance on revenues.

Chip Moore: Yes, let me just start and then I'll, let deno.

Jeff: First Jeff Thanks for the question.

Speaker Change: Thanks for your interest so.

Speaker Change: We have seen as you saw in the data is very very big Spike in activity around late February.

Bill Haskell: From that point forward, it's been significant. That data is, I believe it's a, you know, kind of a three-month moving average. So, when you see it triple from month to month, you can see, you know, a pretty significant explosion in activity there. And I think that parallels what we're seeing from all the other larger players in the in the state. You know, I've listened to some of the other earnings calls and some of the other, you know, principles in the marketplace, and I think they're experiencing the very same kind of activity. So, we're kind of aligned with that.

Speaker Change: From that point forward, it's been significant that data is I believe it's just kind of a three month moving average so when you see it triple from month to month, you can see a pretty significant explosion and activity there and I think that parallels what we're seeing from <unk>.

Speaker Change: All of the other larger players in the space.

Speaker Change: Listen to some of the other earnings calls with some of the other.

Speaker Change: Principals in the marketplace and I think they were experiencing in the very same kind of activity so were kind of aligned with that.

Dino Fotirero: Obviously, we can't give you any kind of forward-looking guidance on, you know, revenues. We're not prepared to do that. But in terms of the momentum, you know, if you want to kind of drill down with Dino on the momentum, that's perfectly fine. Absolutely, Bill. If you have anything in particular you want to add on to that.

Speaker Change: Obviously, we can't give you any kind of forward looking guidance on.

Bill Haskell: We're not prepared to do that. In terms of the momentum, if you want to kind of drill down with Dino on the momentum, that's perfectly good.

Speaker Change: Revenues were up.

Speaker Change: Prepare to do that but in terms of the momentum still want to kind.

Speaker Change: Kind of drill down on what Dino on me on the momentum that's perfectly good.

Dino Fortunato: Absolutely, Bill.

Chip Moore: Yeah. No.

Bill Haskell: Chip, if you have anything in particular you want to add on to that.

Bill: Absolutely Bill.

Speaker Change: Anything in particular, you want to you want to add onto that.

Dino Fortunato: Yeah. In regards to momentum, I think we touched on it in the readout, in the update, is that with the, I guess, clarity provided by NVIDIA's roadmap that was released at GTC and then released even further at some of the conferences following that, really gave direction to the data center operators, the infrastructure manufacturers, and those that are kind of in the know on where the processes are going, on what rack architectures will look like. Really started to draw attention to the extremely high flow rates, not only at the rack level, but also at the chip level for single-phase cooling. That really drove a lot of attention towards two-phase. Additionally, there was a very small amount of liquid cooling deployments that had actually been achieved in the prior years outside of the hyperscalers.

Dino Fotirero: Yeah, in regards to momentum, you know, I think we touched on it in the in the readout is that, you know, in the update is that with the, I guess, clarity provided by NVIDIA's roadmap that was released at GTC, and then released even further at some of the conferences following that really gave direction to the data center operators, the infrastructure manufacturers, and those that are kind of in the know on where the process are going on, what rack architectures will look like, really started to draw attention to the extremely high flow rates, not only at the rack level, but also at the chip level for single phase cooling, and that really drove a lot of attention towards two phase.

Bill: Yeah.

Bill: Regards to momentum.

Bill: We touched on it in the end.

Bill: Readout is.

Bill: And the update is that.

Bill: With the <unk>.

Bill: I guess clarity provided by Nvidia is road map that was released at GTC and then released even further some of the conferences following that really gave direction.

Bill: The data center operators, the infrastructure manufacturers and those that are kind of in the know on.

Bill: Where the processes are going on what rack architectures will look like.

Bill: Really starting to draw attention to the extremely high flow rates not only at the rack level, but also at the chip level for single phase cooling.

Bill: And that really drove a lot of attention towards two phase.

Dino Fotirero: Additionally, there was a very small amount of liquid cooling deployments that had actually been achieved in the prior years outside of the hyperscalers, as enterprise clients as Colos started to deploy more of the single phase water, those problems, those issues that are inherent to that technology, really came to roost and people got to feel those, you know, personally, and I feel that drove a large amount of attention, So that's really, like I said, the drive and the paradigm shift, the types of conversations that we've had, has definitely kind of pointed at that inflection point, and that wave coming out of Celsius.

Bill: Additionally, there was a very small amount of liquid cooling deployments that had actually been achieved in the prior years outside of the Hyperscale ours as enterprise clients is Colo is starting to deploy more of the single phase water. Those problems those issues that are inherent to that technology really came to roost and people got the.

Dino Fortunato: As enterprise clients, as colos started to deploy more of the single-phase water, those problems, those issues that are inherent to that technology really came to roost, and people got to feel those personally. I feel that drove a large amount of attention and really kind of opened up the market to what we've been evangelizing over the last few years. That's definitely resulted into that drive of interest, and the drive of right interest. There's been a big paradigm shift in the leads that we've captured and the conversations that we've had, where it's no longer, Oh, this is a neat technology.

Bill: Field those.

Bill: Personally and I feel that drove a large amount of attention and really kind of opened up the market. So what we've been evangelizing over the last few years.

That's definitely resulted into that drive of interest.

Bill: And the drive of REIT interest. So there has been a big paradigm shift in the leaves that we've captured and the conversations that we've had where it's no longer Oh. This is a new technology I have been saying that two phases are going to be needed.

Dino Fortunato: I've been saying that two-phase is going to be needed. The people that are the experts, the subject matter experts at the colos, the OEMs, the people that are actually deploying the cooling, the MEP firms, the design firms, to, "How do I deploy this? Your solution is viable. What is the way that we get this into our data centers?" That's really, like I said, the drive and the paradigm shift, the types of conversations that we've had, is definitely kind of pointing at that inflection point and that wave coming out of Accelsius.

Bill: The people that are the experts the subject matter experts at the at the.

Bill: Carlos.

Speaker Change: Oh, yes, the people that are actually deploying the cooling the MEP firms the design firms to.

Speaker Change: How do I deploy this.

Speaker Change: Your solution is viable what is the way that we get this into our data centers. So that's really like I said, the drive and the paradigm shift the types of conversations that we've had.

Speaker Change: It's definitely kind of.

Speaker Change: Pointed at that inflection point and that wave coming out of Celsius.

Chip Moore: Great. That's helpful. Appreciate it. Maybe just one more follow-up, and I'll hop back in queue. Maybe talk about that sort of chicken and egg confidence in your ability to scale and manufacturing, how those conversations have progressed. Thanks.

Chip Moore: Great, that's helpful. Appreciate it.

Speaker Change: Great Thats helpful.

Dino Fotirero: Maybe just one more follow up, and I'll hop back in queue, just maybe talk about that sort of chicken and egg, you know, confidence in your ability to scale and manufacturing. Those conversations have progressed. Thanks. Yeah. Okay, go ahead. Yeah, I mean, so as we look at the manufacturing side, obviously, we've got a great team. One of the first people that was added to the organization when we were founded is our chief supply chain officer, tremendous amount of background there on the supply chain side. He's added a great team. But myself being a manufacturing guy at heart and running manufacturing companies, we knew that we were going to need the support to add confidence for the hyperscalers, the large clients.

Speaker Change: I appreciate it and maybe just one more follow up and I'll hop back in queue.

Speaker Change: Maybe talk about that sort of a chicken and egg.

Confidence in your ability to scale in manufacturing how is that.

Speaker Change: Those conversations have progressed thanks.

Dino Fortunato: Yeah. No, go.

Bill Haskell: Yeah, go ahead, Dino.

Speaker Change: Yes.

Yes go ahead Dan.

Dino Fortunato: Yeah. As we look at the manufacturing side, obviously, we've got a great team. One of the first people that was added to the organization when we were founded, is our chief supply chain officer. Tremendous amount of background there on the supply chain side. He's added a great team. Myself, being a manufacturing guy at heart and running manufacturing companies, we knew that we were going to need the support to add confidence for the hyperscalers, the large clients. That's where our CM partner, and our CM partners have really come in to drive a lot of that confidence and help ensure that we can support those large volumes, as well as ensuring that those volumes can be met with quality that's expected in a tech market or a high-reliability market.

Speaker Change: Yes, I mean so.

Speaker Change: As we look at the manufacturing side, obviously, we've got a great team one of the first people that we that was added to the organization.

Speaker Change: We were founded as our chief supply chain officer tremendous amount of background. There on the supply chain side. He has added a great team.

Speaker Change: Yourself being a manufacturing guy at heart and running manufacturing companies. We knew that we were going to need the support to add confidence for the hyperscale or is the large clients and thats where were our <unk> partner.

Dino Fotirero: And that's where our CM partner and our CM partners have really come in to drive a lot of that confidence and help ensure that we can support those large volumes, as well as ensuring that those volumes can be met with quality that's expected in a tech market or a high reliability market. So that was really a big add for us in overall, you know, ensuring our clients that we could grow with them, because nothing's worse than testing, evaluating, and adopting a technology, and then finding out that it can't scale with your demands. So that's kind of where we were able to, you know, add a lot of confidence from the manufacturing side.

Speaker Change: <unk> partners have really come into.

Speaker Change: To drive a lot of that confidence and help ensure that we can support those large volumes as well as ensuring that those volumes can be met with quality that's expected in a tach market or a high reliability market.

Dino Fortunato: That was really a big add for us in overall ensuring our clients that we could grow with them. Because nothing's worse than testing, evaluating, and adopting a technology, and then finding out that it can't scale with your demands. That's where we were able to add a lot of confidence from the manufacturing side. Now, when we look at the design development side, again, great team of engineers and a great sourcing group that was able to identify the proper materials, and really a robust process to ensuring that the materials that we utilized can meet that high reliability requirements of our clients. Which I'm not sure a lot of the other units that are out there or new technologies are out there take to heart because they're more concerned about getting the technology out.

Speaker Change: So that was really a big add for us and overall.

Speaker Change: Ensuring our clients that we can grow with them because nothing is worse than testing evaluating and adopting a technology and then finding out that it can't scale with your demands.

Speaker Change: So thats kind of where we were able to add.

Speaker Change: Add a lot of confidence from the manufacturing side now when we look at the design development side again, great team of engineers.

Dino Fotirero: Now, when we look at the design development side, again, great team of engineers, and a great sourcing group that was able to identify the proper materials, and really a robust process to ensuring that the materials that we utilized can meet that high reliability requirement of our clients, which I'm not sure a lot of the other units that are out there or new technologies are out there take into heart, or take to heart, because they're more concerned about getting the technology out. The 360 approach that we took, I think, has lent very good confidence or gained very strong confidence from our clients.

Speaker Change: And a great sourcing group that was able to identify the proper materials and really.

Speaker Change: Robust process to ensuring that the materials that we utilized.

Speaker Change: Can meet that high reliability requirements of our clients.

Speaker Change: Which I'm not sure a lot of the.

Speaker Change: I'm not sure a lot of the other.

Speaker Change: Units that are out there are new technologies are out there take into and heart because our take the heart because they're more concerned about getting the technology out. The 360 approach that we took I think has lent.

Dino Fortunato: The 360 approach that we took, I think, has lent very good confidence or gained very strong confidence from our clients.

Speaker Change: Very good confidence or gained very strong confidence from our clients.

Bill Haskell: Yeah, I think another way to frame it, Chip, is that as we mentioned, as Dino mentioned, we've had a lot of engagement with some of the hyperscalers that have very high volume demand, and they're confident based on the interactions they've had with us, or they wouldn't be coming back. The fact that we've had, in some cases, 12 meetings or more with various large hyperscalers suggests that they see this as a viable path to getting to scale. Of course, they understand that we're partnering with content manufacturers to handle the larger volumes. Even internally with the kind of volumes we talked about, we can still get to some pretty meaningful size just with our current internal manufacturing capacity. It's almost exclusively a kind of North American supply chain, at least our direct suppliers.

Bill Haskell: I think another way to frame it, Chip, is that, as we mentioned, as Dino mentioned, we've had a lot of engagement with some of the hyperscalers that have very high volume demand, and they're confident, based on the interactions they've had with us, or they wouldn't be coming back. So, you know, the fact that we've had, you know, in some cases, a dozen meetings or more with various, you know, large hyperscalers suggests that they see this as a viable path to getting to scale. And, of course, they understand that we're partnering with content manufacturers to handle the larger volumes.

Speaker Change: Yes, I think another way to frame. It chip is that as we mentioned as Dino mentioned, we've had a lot of engagement with some of the Hyperscale is that has very high volume demand.

Speaker Change: And they are confident based on the interactions they have with us or they wouldn't be coming back.

Speaker Change: So.

Speaker Change: Right that we've had in some cases, it doesn't meetings or more with with various large hyperscale is suggests that they they see this as a viable.

Speaker Change: Our path to getting to scale.

Speaker Change: And of course, they understand that we're partnering with Scott at manufacturers to handle the larger volumes, but even internally.

Bill Haskell: But even internally, with, you know, the kind of volumes we talked about, you know, we can still get to, you know, some pretty meaningful size just with our current internal manufacturing capacity. And it's almost exclusively a kind of North American supply chain, at least our direct suppliers, and that was purposeful to kind of take out the geopolitical risk out of the equation so that we would be able to access the materials that we needed in order to accommodate the volumes that we can manufacture. Thank you.

Speaker Change: The kind of volumes, we talked about.

Speaker Change: We'll get to some pretty meaningful size, just with our current internal manufacturing capacity.

Speaker Change: And it's almost exclusively a north American supply chain at least our direct suppliers.

Bill Haskell: That was purposeful to take out the geopolitical risk out of the equation so that we would be able to access the materials that we needed in order to accommodate the volumes that we can manufacture internally.

Speaker Change: And that was purposeful to kind of take out the geopolitical risk out of the equation. So that we would be able to access.

Speaker Change: Access to materials that we needed in order to accommodate the volumes that we can manufacture internally.

Operator: Thank you. Ladies and gentlemen, at this time, I would like to turn the call back over to Bill Haskell for closing remarks.

Speaker Change: Thank you.

Bill Haskell: Ladies and gentlemen, at this time, I would like to turn the call back over to Bill Haskell for closing remarks. Thanks, everyone. I really appreciate everybody joining today. It's useful to get a. Kind of a line directly from the horse's mouth, which is why we wanted Dina to come on to talk more in detail about Excelsius. We do look forward to future updates. We believe that there's, again, a lot of momentum going on in the company, in all of our big companies, quite honestly, I feel. that were very well positioned and they're all, you know, really.

Bill: Ladies and gentlemen at this time I would like to turn the call back over to Bill <unk> for closing remarks.

Bill Haskell: Well, thanks, everyone. I really appreciate everybody joining today. It's useful to get kind of the lines directly from the horse's mouth, which is why we wanted Dino to come on to talk more in detail about Accelsius. We do look forward to future updates. We believe that there's, again, a lot of momentum going on in the company, in all of our operating companies. Quite honestly, I feel that we're very well-positioned, and they're all really maturing and kind of coming to the fore. Very optimistic about where we go from here, but we look forward to updating you in the future. Thank you again.

Speaker Change: Well, thanks, everyone I really appreciate everybody joining today, it's useful to get a.

Bill: Uh huh.

Speaker Change: And the lines on the breakfast and the horses mouth, which is why we wanted to Dana to come on to talk more in detail about our Celsius.

Speaker Change: Do look forward to future updates, we believe that there is again a lot of momentum going on in the company and all of our operating companies quite honestly I feel.

Speaker Change: They were very well positioned.

Speaker Change: <unk> really.

Bill Haskell: maturing and, you know, kind of coming to the fore. So, you know, very optimistic about where we where we go from here, but we look forward to updating you in the future. And thank you.

Speaker Change: Maturing and.

Speaker Change: Kind of coming to the floor. So.

Speaker Change: We're very optimistic about where we go from here, but we look forward to updating you in the future and thank you again.

Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect. Thanks for watching!

Speaker Change: Ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.