Q2 2025 Ideal Power Inc Earnings Call

Listen only mode at the end of managements remarks, there will be a question and answer session.

Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen.

Analysts, who publish research you may ask questions on the phone line for analysts to ask those questions on the phone line. Please press star one to enter the queue.

As a reminder, this event is being recorded I would now like to turn the conference over to Jeff Christensen. Please go ahead.

Thank you Kelly.

Hey, good morning, everyone. Thank you for joining the ideal Power's second quarter 2025 results conference call with me on the call are <unk>, President and Chief Executive Officer, and Tim Burns Chief Financial Officer.

Speaker #2: Good Good morning, ladies and gentlemen. And welcome to the Ideal Power Second Quarter 2025 results conference call. At this time, all participants are in a listen-only mode.

Kelly: Good morning, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 2025 Results Conference Call. At this time, all participants are in a listen-only mode. At the end of management's remarks, there will be a question and answer session. Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask those questions on the phone line, please press star one to enter the queue. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.

Power's second quarter 2025 financial results press release is available on the company's website at Idaho power Dot com.

Speaker #2: At the end of management's remarks, there will be a question-and-answer session. Investors can submit their questions anytime during the meeting webcast by typing them into the Q&A button on the left side of your viewing screen.

Before we begin I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and company prospects are forward looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risk we would also.

Speaker #2: Analysts who publish research may ask questions on the phone line. For analysts to ask those questions on the phone line, please press *1 to enter the queue.

Speaker #2: As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.

We refer you to the company's website for more supporting company information.

Now I would like to turn the call over to Idaho, Power's, President and CEO, Dan <unk> Dan.

Speaker #4: Thank you, Kelly. And good morning, everyone. Thank you for joining the Ideal Power Second Quarter 2025 results conference call. With me on the call are Dan Brdar, president and chief executive officer, and Tim Burns, chief financial officer.

Jeff Christensen: Thank you, Kelly, and good morning, everyone. Thank you for joining the Ideal Power Second Quarter 2025 Results Conference Call. With me on the call are Dan Brdar, President and Chief Executive Officer, and Tim Burns, Chief Financial Officer. Ideal Power's Second Quarter 2025 Financial Results Press Release is available on the company's website at idealpower.com. Before we begin, I would like to remind everyone that statements made on the call and webcast, including those regarding future financial results and company prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks. We would also refer you to the company's website for more supporting company information.

Thank you Jeff I appreciate everyone joining us today I'm eager to share an update on our progress since the start of the second quarter.

I'll begin with the key highlights since the beginning of the second quarter and discussed the most significant developments with additional context to highlight their significance.

Speaker #4: Ideal Power's second quarter 2025 financial results press release is available on the company's website at idealpower.com. Before we begin, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and company prospects, are forward-looking and may be subject to a number of risk and uncertainties that could cause actual results to differ materially from those described in the call.

Afterwards, I will turn things over to Tim to discuss our financial results. We look forward to your questions. After our prepared remarks.

We shipped updated solid state circuit breaker prototypes to our first design win customer. These updated prototypes incorporate additional capabilities into the device driver that were requested by the customer to further differentiate their product offering the customers completing theirs prototype testing and will soon begin gathering feedback on this new product.

Speaker #4: Please refer to the company's SEC filings, for a list of associated risks. We would also refer you to the company's website for more supporting company information.

Speaker #4: Now, I'd like to turn the call over to Ideal Power's President and CEO, Dan Brdar. Dan?

From their targeted and customers ahead of the product launch of their first B Tran enabled solid state circuit breaker product planned for later this year.

Jeff Christensen: Now I would like to turn the call over to Ideal Power's President and CEO, Dan Brdar. Dan.

Speaker #5: Thank you, Jeff. I appreciate everyone joining us today. I'm eager to share an update on our progress since the start of the second quarter.

Dan Brdar: Thank you, Jeff. I appreciate everyone joining us today. I am eager to share an update on our progress since the start of the second quarter. I will begin with the key highlights since the beginning of the second quarter and discuss the most significant developments with additional context to highlight their significance. Afterwards, I will turn things over to Tim Burns to discuss our financial results. We look forward to your questions after our prepared remarks. First, we shipped updated solid-state circuit breaker prototypes to our first design win customer. These updated prototypes incorporate additional capabilities into the device driver that were requested by the customer to further differentiate their product offering.

Second we entered into a collaboration with a fourth global tier one automotive supplier.

Speaker #5: I'll begin with the key highlights since the beginning of the second quarter, then discuss the most significant developments with additional context to highlight their significance.

We shipped them packaged devices, a reference design and driver to enable them to evaluate D tram and our understanding is that they plan to launch a formal solid state easy contact a program within the next few months.

Speaker #5: Afterwards, I'll turn things over to Tim to discuss our financial results. We look forward to your questions after our prepared remarks. First, we shipped updated solid-state circuit breaker prototypes to our first design win customer.

Third one of our distributors introduced our products to a fourth global automaker and the automakers preferred tier one supplier. They ordered numerous package b Tran devices simple power modules solid state circuit breaker reference design boards and drivers the customer will evaluate <unk> as part of their innovative solid state <unk> contactor design implementation.

Speaker #5: These updated prototypes incorporate additional capabilities into the device driver that were requested by the customer for further differentiate their product offering. The customers completing their prototype testing and will soon begin gathering feedback on this new product from their targeted end customers ahead of the product launch of their first V-tran-enabled solid-state circuit breaker product planned for later this year.

Dan Brdar: The customer is completing their prototype testing and will soon begin gathering feedback on this new product from their targeted end customers ahead of the product launch of their first BTRAN-enabled solid-state circuit breaker product planned for later this year. Second, we entered into a collaboration with a fourth global tier one automotive supplier. We shipped them packaged devices, a reference design, and driver to enable them to evaluate BTRAN. Our understanding is that they plan to launch a formal solid-state EV contactor program within the next few months. Third, one of our distributors introduced our products to a fourth global automaker and the automaker's preferred tier one supplier. They ordered numerous packaged BTRAN devices, SIMCOL power modules, solid-state circuit breaker reference design boards, and drivers. The customer will evaluate BTRAN as part of their innovative solid-state EV contactor design implementation.

The same distributor also introduced our products to a fifth automotive OEM for a potential <unk> contactor program. We're now collaborating with a total of five automakers, including four of the top 10 global automakers.

Speaker #5: Second, we entered into a collaboration with a fourth global tier-one automotive supplier. We shipped them packaged devices, a reference design, and driver to enable them to evaluate V-tran, and our understanding is that they plan to launch a formal solid-state EV contactor program within the next few months.

Fourth the Atlantis formally informed us that they are issuing a purchase order to us for custom development and packaged devices targeting multiple EV applications broadening our collaboration with one of the world's largest automakers prior to the launch of the EDI contact a program.

Speaker #5: Third, one of our distributors introduced our products to a fourth global automaker, and the automaker's preferred tier-one supplier. They ordered numerous packaged V-tran devices, some cool power modules, solid-state circuit breaker reference design boards, and drivers.

Fifth we added a partnership with <unk> electronic Corp to distribute to ideal powers products to their existing and prospective customers throughout Asia alongside their own product portfolio.

<unk> is the world's largest market for power electronics, and Asian companies, typically adopt new technologies faster than their European and U S counterparts based.

Speaker #5: The customer will evaluate V-tran as part of their innovative solid-state EV contactor design implementation. The same distributor also introduced our products to a fifth automotive OEM for a potential EV contactor program.

They started introducing <unk> to their customer base.

Dan Brdar: The same distributor also introduced our products to a fifth automotive OEM for a potential EV contactor program. We are now collaborating with a total of five automakers, including four of the top 10 global automakers. Fourth, Stellantis formally informed us that they are issuing a purchase order to us for custom development and packaged devices targeting multiple EV applications, broadening our collaboration with one of the world's largest automakers prior to the launch of the EV contactor program. Fifth, we added a partnership with QiMei Electronic Corp to distribute Ideal Power's products to their existing and prospective customers throughout Asia, alongside their own product portfolio. Asia is the world's largest market for power electronics, and Asian companies typically adopt new technologies faster than their European and U.S. counterparts. They started introducing BTRAN to their customer base.

We shipped solid state circuit breaker reference designs to several large companies currently evaluating our technology for solid state circuit breakers or EV contactor applications. This includes two previously announced Forbes Global 500 power management market leaders as well as our fourth and fifth global tier one automotive suppliers that we added in late June.

Speaker #5: We're now collaborating with a total of five automakers, including four of the top ten global automakers. Fourth, Stellantis formally informed us that they are issuing a purchase order to us for custom development and packaged devices targeting multiple EV applications, broadening our collaboration with one of the world's largest automakers prior to the launch of the EV contactor program.

And seven we successfully completed the third party automotive Prequalification and reliability testing of B Tran devices with zero failures, we expect to complete full third party automotive qualification and reliability testing later this year.

Speaker #5: Fifth, we added a partnership with Kime Electronic Corp to distribute Ideal Power's products to their existing and prospective customers throughout Asia, alongside their own product portfolio.

Let's briefly turn to what we have repeatedly that hearing and seeing from current and prospective customers.

Speaker #5: Asia is the world's largest market for power electronics, and Asian companies typically adopt new technologies faster than their European and U.S. counterparts. They started introducing V-tran to their customer base.

There is a growing interest in our B Tran technology, both for industrial and automotive applications, particularly for circuit protection applications, such as sulphate circuit breakers transfer switches and EEV contractors, where ultra low conduction losses are enabling for the applications for.

Speaker #5: Sixth, we shipped solid-state circuit breaker reference designs to several large companies currently evaluating our technology for solid-state circuit breakers or EV contactor applications. This includes two previously announced Ford's global 500-power management market leaders as well as our fourth and fifth global tier-one automotive suppliers that we added in late June.

Dan Brdar: Sixth, we shipped solid-state circuit breaker reference designs to several large companies currently evaluating our technology for solid-state circuit breakers or EV contactor applications. This includes two previously announced Forbes Global 500 power management market leaders, as well as our fourth and fifth global tier one automotive suppliers that we added in late June. Seventh, we successfully completed the third-party automotive pre-qualification and reliability testing of BTRAN devices with zero failures. We expect to complete full third-party automotive qualification and reliability testing later this year. Let's briefly turn to what we've repeatedly been hearing and seeing from current and prospective customers. There's a growing interest in our BTRAN technology, both for industrial and automotive applications, particularly for circuit protection applications such as solid-state circuit breakers, transfer switches, and EV contactors, where ultra-low conduction losses are enabling for the applications.

For these applications, we're typically competing against silicon carbide devices and the consistent message. We are hearing from prospective customers at the cost and conduction losses of solid state solutions using silicon carbide are too high.

Speaker #5: And seventh, we successfully completed the third-party automotive prequalification and reliability testing of V-Tran devices with zero failures. We expect to complete full third-party automotive qualification and reliability testing later this year.

A recent example of this is our first design win customer.

This customer is one of the largest circuit protection equipment manufacturers in Asia targeting Datacenters, industrial and utility markets and renewal renewable energy applications.

Speaker #5: Let's briefly turn to what we've repeatedly been hearing and seeing from current and prospective customers. There's a growing interest in our V-tran technology, both for industrial and automotive applications, particularly for circuit protection applications such as solid-state circuit breakers, transfer switches, and EV contactors, where ultra-low conduction losses are enabling for the applications.

This customer set us there 20 Amp unit directional silicon carbide breaker prototypes that did not meet their cost and performance requirements.

We rework them and set them back a 63 amp bi directional b trend breaker with a 60% reduction in losses compared to the silicon carbide prototypes.

Obviously this is a significant performance improvement with much higher power density, while achieving lower total losses silicon devices that are at a lower price point than silicon carbide devices since.

Speaker #5: For these applications, we're typically competing against silicon carbide devices, and the consistent message we are hearing from prospective customers that the cost and conduction losses of solid-state solutions using silicon carbide are too high.

Dan Brdar: For these applications, we're typically competing against silicon carbide devices, and the consistent message we are hearing from prospective customers is that the cost and conduction losses of solid-state solutions using silicon carbide are too high. A recent example of this is our first design win customer. This customer is one of the largest circuit protection equipment manufacturers in Asia, targeting data centers, industrial and utility markets, and renewable energy applications. This customer sent us their 20-amp unidirectional silicon carbide breaker prototypes that did not meet their cost and performance requirements. We reworked them and sent them back a 63-amp bidirectional BTRAN breaker with a 60% reduction in losses compared to the silicon carbide prototypes. Obviously, this is a significant performance improvement with much higher power density while achieving lower total losses using silicon devices that are at a lower price point than silicon carbide devices.

Since then we provided the customer.

With updated prototype breakers, incorporating additional capability they requested to be put into the device drivers to accommodate some innovative ideas on the capabilities they want to add to their breaker product custom.

Speaker #5: A recent example of this is our first design win customer. This customer is one of the largest circuit protection equipment manufacturers in Asia, targeting data centers, industrial and utility markets, and renewable energy applications.

Customers testing the updated prototypes now and there'll be soliciting feedback from their customers on these prototypes in the near term with a particular focus on data center customers.

Speaker #5: This customer sent us their 20-amp unidirectional silicon carbide breaker prototypes, but they did not meet their cost and performance requirements. We reworked them and sent back a 63-amp bi-directional V-Tran breaker with a 60% reduction in losses compared to the silicon carbide prototypes.

Following this feedback cycle they plan to move forward with a product launch of their first <unk> enabled solid state circuit breaker. This year and we're excited to collaborate with this customer and launching additional <unk> enabled breakers across various power ratings in the future.

Speaker #5: Obviously, this is a significant performance improvement, with much higher power density, while achieving lower total losses using silicon devices that are at a lower price point than silicon carbide devices.

As we previously mentioned and based on this first design win customers projections. The initial product from this customer could translate to several hundred thousands of dollars of revenue for ideal power in its first year of sales with the opportunity to exceed millions of dollars in revenue for us in the second year of sales.

Speaker #5: Since then, we provided the customer with updated prototype breakers, incorporating additional capabilities they requested be put into the device drivers to accommodate some innovative ideas on the capabilities they want to add to their breaker product.

Dan Brdar: Since then, we provided the customer with updated prototype breakers incorporating additional capability they requested be put into the device drivers to accommodate some innovative ideas on the capabilities they want to add to their breaker product. The customer is testing the updated prototypes now, and they will be soliciting feedback from their customers on these prototypes in the near term, with a particular focus on data center customers. Following this feedback cycle, they plan to move forward with a product launch of their first BTRAN-enabled solid-state circuit breaker this year, and we are excited to collaborate with this customer in launching additional BTRAN-enabled breakers across various power ratings in the future. As we previously mentioned, and based on the first design win customer's projections, the initial product from this customer could translate to several hundred thousand dollars of revenue for Ideal Power Inc.

Importantly, this is just the beginning its initial product. This initial product is anticipated to be the first of several products from this customer that will incorporate b Tran and the solid state circuit Breakers discussed.

Speaker #5: The customers testing the updated prototypes now, and they'll be soliciting feedback from their customers on these prototypes in the near term, with a particular focus on data center customers.

This customer provides a variety of circuit breaker products across various power ratings and it's expected that they could add a full family of solid state circuit breakers at rating similar to their current family of electromechanical breakers.

Speaker #5: Following this feedback cycle, they plan to move forward with a product launch of their first V-tran-enabled solid-state circuit breaker this year, and we're excited to collaborate with this customer in launching additional V-tran-enabled breakers across various power ratings in the future.

Accordingly, our development agreement with this customer does not constrain us in any way from working with other companies interested in our technology for solid state circuit breaker solutions and.

Speaker #5: As we've previously mentioned, and based on the first design win customer's projections, the initial product from this customer could translate to several hundred thousand dollars of revenue for Ideal Power in its first year of sales, with the opportunity to exceed millions of dollars in revenue for us in the second year of sales.

In fact, the work that we've done with this customer can be leveraged to benefit current and future customers aiming to bring solid state circuit breaker products to market.

Due to the increased customer engagement from Asia, and the magnitude of the opportunity for the region for industrial applications beyond our first design win customer we're in the process of adding a sales director in field applications of a generic for the region.

Dan Brdar: in its first year of sales, with the opportunity to exceed millions of dollars in revenue for us in the second year of sales. Importantly, this is just the beginning. This initial product is anticipated to be the first of several products from this customer that will incorporate BTRAN into solid-state circuit breakers. This customer provides a variety of circuit breaker products across various power ratings, and it is expected that they could add a full family of solid-state circuit breakers at ratings similar to their current family of electromechanical breakers. Importantly, our development agreement with this customer does not constrain us in any way from working with other companies interested in our technology or solid-state circuit breaker solutions. In fact, the work that we have done with this customer can be leveraged to benefit current and future customers aiming to bring solid-state circuit breaker products to market.

Speaker #5: Importantly, this is just the beginning. Its initial product, this initial product is anticipated to be the first of several products from this customer that will incorporate V-tran into solid-state circuit breakers.

We're seeing increased interest in <unk> for circuit breakers, and static transfer switches for data centers and.

Speaker #5: This customer provides a variety of circuit breaker products across various power ratings, and it's expected that they could add a full family of solid-state circuit breakers at ratings similar to their current family of electromechanical breakers.

And both circuit breakers and transfer switches a small smaller solid state solution will replace bulky slower acting electromechanical solutions.

So I would state circuit breakers and data centers protect against faults and offer the same advantages as solid state circuit breakers and utility and other industrial applications.

Speaker #5: Importantly, our development agreement with this customer does not constrain us in any way from working with other companies interested in our technology for solid-state circuit breaker solutions.

Transfer switches for data centers are used to minimize or eliminate server downtime I quickly switching the power source for backup power when needed transfer switches are critical as data centers strive for better than five nines or better than 99, 999% uptime.

Speaker #5: In fact, the work that we've done with this customer can be leveraged to benefit current and future customers, aiming to bring solid-state circuit breaker products to market.

Speaker #5: Due to the increased customer engagement from Asia, and the magnitude of the opportunity for the region for industrial applications beyond our first design win customer, we're in the process of adding a sales director and field applications engineer for the region.

Dan Brdar: Due to the increased customer engagement from Asia and the magnitude of the opportunity for the region for industrial applications beyond our first design win customer, we are in the process of adding a sales director and field applications engineer for the region. We are seeing increased interest in BTRAN for circuit breakers and static transfer switches for data centers. In both circuit breakers and transfer switches, a smaller solid-state solution would replace bulky, slower-acting electromechanical solutions. Solid-state circuit breakers and data centers protect against faults and offer the same advantages as solid-state circuit breakers in utility and other industrial applications. Transfer switches for data centers are used to minimize or eliminate server downtime by quickly switching the power source to backup power when needed.

Also important to note the waste heat is a critical issue for Datacenters and the Patriot enabled switch gear like circuit breakers and transfer switches have ultra low conduction.

Speaker #5: We're seeing increased interest in V-tran for circuit breakers and static transfer switches for data centers. In both circuit breakers and transfer switches, a smaller solid-state solution would replace bulky, slower-acting electromechanical solutions.

<unk> losses, and generate significantly less waste heat relative to competing solid state solutions.

We're excited that our <unk> is an enabler for customers seeking solutions for solid state switch gear and Datacenters.

Moving on to another exciting market for B, Tran electric and hybrid electric vehicles.

Speaker #5: Solid-state circuit breakers in data centers protect against faults and offer the same advantages as solid-state circuit breakers in utility and other industrial applications. Transfer switches for data centers are used to minimize or eliminate server downtime by quickly switching the power source to backup power when needed.

<unk> <unk>.

For those of you unfamiliar with <unk> contactor can be thought of similarly to our solid state circuit breaker for an electric vehicle at.

It isolates the battery from electrical sub systems during both conditions and planned maintenance for improved safety.

Speaker #5: Transfer switches are critical as data centers strive for better than five nines or better than 99.999% uptime. It's also important to note the waste heat is a critical issue for data centers, and the V-tran-enabled switchgear, like circuit breakers and transfer switches, have ultra-low conduction losses and generate significantly less waste heat relative to competing solid-state solutions.

Dan Brdar: Transfer switches are critical as data centers strive for better than five nines or better than 99.999% uptime. It is also important to note that waste heat is a critical issue for data centers, and the BTRAN-enabled switchgear, like circuit breakers and transfer switches, have ultra-low conduction losses and generate significantly less waste heat relative to competing solid-state solutions. We are excited that our BTRAN is an enabler for customers seeking solutions for solid-state switchgear in data centers. Moving on to another exciting market for BTRAN, electric and hybrid electric vehicles, including EV contactors. For those of you unfamiliar with EV contactors, a contactor can be thought of similarly to a solid-state circuit breaker for an electric vehicle. It isolates the battery from electrical subsystems during both fault conditions and planned maintenance for improved safety. Traditional electromechanical contactors are not fast enough and do not offer programmability or diagnostic capabilities.

Traditional electromechanical contractors aren't fast enough and do not offer programmability or diagnostic capabilities.

Also.

Auto Oems need a solution that is very fast acting to protect the batteries and the systems connected to the battery to prevent runaway event injury or other damage.

Atlantis and multiple other global automakers as well as numerous tier one automotive suppliers are already looking at B Tran for solid state EEG contact through applications.

Speaker #5: We're excited that our V-Tran is an enabler for customers seeking solutions for solid-state switchgear in data centers. Moving on to another exciting market for V-Tran, electric and hybrid electric vehicles, including EV contactors.

Along with others in the industry appeared to have uniform, we decided and electromechanical contactor is not the right solution for electric vehicles due to the slow speed of electromechanical devices and the need for enhanced safety, each programmability and diagnostic capabilities.

Speaker #5: For those of you unfamiliar with EV contactors, a contactor can be thought of similarly to a solid-state circuit breaker for an electric vehicle. It isolates the battery from electrical subsystems during both fault conditions and planned maintenance for improved safety.

The application of B, Tran and Evs as exemplified by our expected purchase order from still Lantus.

Speaker #5: Traditional electromechanical contactors aren't fast enough, and do not offer programmability or diagnostic capabilities. Also, auto OEMs need a solution that is very fast-acting to protect the batteries and the systems connected to the battery to prevent a runaway event, injury, or other damage.

Encompassing custom development and packaged devices aimed at multiple EV applications.

The order has been approved by the Lantus internally and we are and we expect to receive their purchase order in the near term the.

Dan Brdar: Also, auto OEMs need a solution that is very fast-acting to protect the batteries and the systems connected to the battery to prevent a runaway event, injury, or other damage. Stellantis and multiple other global automakers, as well as numerous tier one automotive suppliers, are already looking at BTRAN for solid-state EV contactor applications. They, along with others in the industry, appear to have uniformly decided that an electromechanical contactor is not the right solution for electric vehicles due to the slow speed of electromechanical devices and the need for enhanced safety, programmability, and diagnostic capabilities. The application of BTRAN in EVs is exemplified by our expected purchase order from Stellantis, encompassing custom development and packaged devices aimed at multiple EV applications. The order has been approved by Stellantis internally, and we expect to receive their purchase order in the near term.

The primary deliverables under this order are a non traditional double sided custom semiconductor package design numerous b Tran dies and this custom package and related drive circuitry the.

Speaker #5: Stellantis and multiple other global automakers, as well as numerous tier-one automotive suppliers, are already looking at V-tran for solid-state EV contactor applications. They, along with others in the industry, appear to have uniformly decided that an electromechanical contactor is not the right solution for electric vehicles, due to the slow speed of electromechanical devices, and the need for enhanced safety, programmability, and diagnostic capabilities.

The custom packages required by the unique thermal management designs, the lantus intends to adopt for its next generation electric vehicle platforms.

The combination of B Tran and the Lantus is thermal management design allows for commonality of parts and multiple locations within its EV, including the drivetrain contractors and other high power applications and across its EV platforms.

Speaker #5: The application of V-tran in EVs is exemplified by our expected purchase order from Stellantis, encompassing custom development and packaged devices, aimed at multiple EV applications.

This new order is intended to form the basis for a common power semiconductor in packaging design for both the drivetrain and contacted programs.

Speaker #5: The order has been approved by Stellantis internally, and we expect to receive their purchase order in the near term. The primary deliverables under this order are a non-traditional double-sided custom semiconductor package design, numerous V-tran dies in this custom package, and related drive circuitry.

The order will represent significant and continued progress to Atlantis as they implement their EV strategy.

Dan Brdar: The primary deliverables under this order are a non-traditional double-sided custom semiconductor package design, numerous BTRAN dies in this custom package, and related drive circuitry. The custom package is required by the unique thermal management design Stellantis intends to adopt for its next-generation electric vehicle platforms. The combination of BTRAN and Stellantis' thermal management design allows for commonality of parts in multiple locations within its EV, including the drivetrain, contactors, and other high-power EV applications and across its EV platforms. This new order is intended to form the basis for a common power semiconductor and packaging design for both the drivetrain and contactor programs. The order will represent significant and continued progress for Stellantis as they implement their EV strategy.

As this order will enable multiple uses of B Tran and the Lantus is EV platforms. We're excited about our broadening collaboration and the customer validation of the benefits B Tran can provide high power applications.

Speaker #5: The custom package is required by the unique thermal management design Stellantis intends to adopt for its next generation electric vehicle platforms. The combination of V-tran and Stellantis's thermal management design allows for commonality of parts in multiple locations within its EV, including the drivetrain, contactors, and other high-power EV applications, and across its EV platforms.

We remain actively engaged with the Lantus meeting regularly with them and their program partners on both the planned <unk> contactor and current drivetrain inverter programs and collaborating with them on automotive qualification and related requirements.

Turning to other automotive customers, we added our fourth and fifth global tier one automotive suppliers to our roster of engagements.

Speaker #5: This new order is intended to form the basis for a common power semiconductor and packaging design for both the drivetrain and contactor programs. The order will represent significant and continued progress to Stellantis, as they implement their EV strategy.

For the fourth global tier one automotive supplier, we are engaged with their engineering teams from both the U S and Asia.

They have b Tran devices in their lab and will be evaluating be trained in the near term.

Our understanding is that they expect to launch a formal solid state easy contact your program within the next few months.

Speaker #5: As this order will enable multiple uses of V-tran in Stellantis's EV platforms, we're excited about our broadening collaboration and the customer validation of the benefits V-tran can provide to high-power EV applications.

Dan Brdar: As this order will enable multiple uses of BTRAN in Stellantis' EV platforms, we're excited about our broadening collaboration and the customer validation of the benefits BTRAN can provide to high-power EV applications. We remain actively engaged with Stellantis, meeting regularly with them and their program partners on both the planned EV contactor and current drivetrain inverter programs and collaborating with them on automotive qualification and related requirements. Turning to other automotive customers, we added our fourth and fifth global tier one automotive suppliers to our roster of engagements. For the fourth global tier one automotive supplier, we're engaged with their engineering teams from both the U.S. and Asia. They have BTRAN devices in their lab and will be evaluating BTRAN in the near term. Our understanding is that they expect to launch a formal solid-state EV contactor program within the next few months.

For the fifth global tier one supplier, we began shipping the numerous package b Tran devices simple power modules solid state circuit breaker reference design boards and drivers the Dell evaluate for an innovative solid state <unk> contactor designs.

Speaker #5: We remain actively engaged with Stellantis, meeting regularly with them and their program partners on both the planned EV contactor and current drivetrain inverter programs, and collaborating with them on automotive qualification and related requirements.

Both these tier one suppliers serve several top 10 global automotive Oems.

Moving onto the macroeconomic level investors have asked about tariffs and evolving trade policies.

Speaker #5: Turning to other automotive customers, we added our fourth and fifth global tier-one automotive suppliers to our roster of engagements. For the fourth global tier-one automotive supplier, we're engaged with their engineering teams from both the U.S. and Asia.

While the tariff situation is very fluid, we continue to expect minimal impact on our operations from tariffs in place today.

Importantly power semiconductors are exempt from many tariff locations currently in effect or in some cases are capped at a low tariff rate.

Speaker #5: They have V-tran devices in their lab, and will be evaluating V-tran in the near term. Our understanding is that they expect to launch a formal solid-state EV contactor program within the next few months.

This limits the potential impact on us.

Although the situation remains dynamic as evidenced by recent tariff adjustments with China, we are well positioned to mitigate the impact of future changes in tariffs and trade policies and other supply chain risks.

Speaker #5: For the fifth global tier-one supplier, we've begun shipping the numerous packaged V-tran devices, some cool power modules, solid-state circuit breaker reference design boards, and drivers that they'll evaluate for an innovative solid-state EV contactor design.

Dan Brdar: For the fifth global tier one supplier, we've begun shipping the numerous packaged BTRAN devices, SIMCOL power modules, solid-state circuit breaker reference design boards, and drivers that they'll evaluate for an innovative solid-state EV contactor design. Both these tier one suppliers serve several top 10 global automotive OEMs. Moving on to the macroeconomic level, investors have asked about tariffs and evolving trade policies. While the tariff situation is very fluid, we continue to expect minimal impact on our operations from tariffs in place today. Importantly, power semiconductors are exempt from many tariff locations currently in effect or, in some cases, are capped at a low tariff rate. This limits the potential impact on us. Although the situation remains dynamic, as evidenced by recent tariff adjustments with China, we're well positioned to mitigate the impact of future changes in tariffs and trade policies and other supply chain risks.

Our asset light outsourced business model leveraging the large investment already made in silicon wafer processing and packaging enables flexibility.

Speaker #5: Both these tier-one suppliers serve several top ten global automotive OEMs. Moving on to the macroeconomic level, investors have asked about tariffs and evolving trade policies.

Additionally, our dual sourcing approach in different geographic regions strengthens our supply chain resilience and optionality with wafer fabrication and packaging in different parts of the world.

Speaker #5: While the tariff situation is very fluid, we continue to expect minimal impact on our operations from tariffs in place today. Importantly, power semiconductors are exempt from many tariff locations currently in effect, or in some cases are capped at a low tariff rate.

Importantly, our supply chain strategy is entirely independent of China further insulating us from regional geopolitical and trade uncertainties and any potential trade conflicts between the us and China.

Looking briefly at innovation, we intend to increase the power rating of our product later this year and updated data sheets will be issued accordingly.

Speaker #5: This limits the potential impact on us. Although the situation remains dynamic, as evidenced by recent tariff adjustments with China, we're well-positioned to mitigate the impact of future changes in tariffs and trade policies, as well as other supply chain risks.

We have been conservative in how we have rated our technology, which customers have told us. They appreciate because we're introducing a new technology to their markets and applications.

Speaker #5: Our asset-light outsourced business model leveraging the large investment already made in silicon wafer processing and packaging enables flexibility. Additionally, our dual-sourcing approach in different geographic regions strengthens our supply chain resilience and optionality, with wafer fabrication and packaging in different parts of the world.

As we get more and more testing hours and go through reliability testing, including third party automotive Prequalification testing.

Dan Brdar: Our asset-light outsourced business model, leveraging the large investment already made in silicon wafer processing and packaging, enables flexibility. Additionally, our dual sourcing approach in different geographic regions strengthens our supply chain resilience and optionality with wafer fabrication and packaging in different parts of the world. Importantly, our supply chain strategy is entirely independent of China, further insulating us from regional geopolitical and trade uncertainties and any potential trade conflicts between the U.S. and China. Looking briefly at innovation, we intend to increase the power rating of our product later this year, and updated data sheets will be issued accordingly. We've been conservative in how we've rated our technology, which customers have told us they appreciate as we're introducing a new technology to their markets and applications.

We're finding that we have more than ample margin and are designed to increase the power rating of our products.

Higher product ratings will allow customers to design their products to perform at higher ratings with the same number of devices or to hold their product ratings constant potential utilized fewer b tran devices and their application either of which make their product even more competitive in the marketplace.

Speaker #5: Importantly, our supply chain strategy is entirely independent of China, further insulating us from regional geopolitical and trade uncertainties in any potential trade conflicts between the US and China.

The work to complete the testing and released new data sheets for the operated products is in progress and on track.

Speaker #5: Looking briefly at innovation, we intend to increase the power rating of our product later this year, and updated data sheets will be issued accordingly.

As I mentioned earlier, we successfully completed the third party automotive Prequalification and reliability testing of <unk> discreet died last month, achieving zero back failures.

Speaker #5: We've been conservative in how we've rated our technology, which customers have told us they appreciate, as we're introducing a new technology to their markets and applications.

Test results indicate the double sided cooled packaging utilized for B Tran devices is much more robust and semiconductor packages utilizing wire bounding wire bonding.

Speaker #5: As we get more and more testing hours and go through reliability testing, including third-party automotive prequalification testing, we're finding that we have more than ample margin in our design to increase the power rating of our products.

Dan Brdar: As we get more and more testing hours and go through reliability testing, including third-party automotive pre-qualification testing, we're finding that we have more than ample margin in our design to increase the power rating of our products. Our product ratings will allow customers to design their products to perform at higher ratings with the same number of devices or to hold their product ratings constant but potentially utilize fewer BTRAN devices in their application, either of which make their product even more competitive in the marketplace. The work to complete the testing and release new data sheets for the uprated products is in progress and on track. As I mentioned earlier, we successfully completed the third-party automotive pre-qualification and reliability testing of BTRAN discrete die last month, achieving zero die failures.

Wire bonding is a common point of failure in semiconductor packaging for.

For example.

Speaker #5: Our product ratings will allow customers to design their products to perform at higher ratings with the same number of devices. Alternatively, they can hold their product ratings constant but potentially utilize fewer V-tran devices in their application. Either of these options makes their product even more competitive in the marketplace.

To meet automotive qualification standards packaged devices must withstand 15000 power cycles without failure or.

Our devices recently passed 50000 power cycles without any failures in.

In addition, the Prequalification allowed us to identify and implement packaging improvements to optimize the design for easier Assembly for high volume manufacturing and to reduce costs.

Speaker #5: The work to complete the testing and release new data sheets for the upgraded products is in progress and on track. As I mentioned earlier, we successfully completed the third-party automotive prequalification and reliability testing of V-Tran discrete die last month, achieving zero die failures.

The production of multiple wafer runs required for high volume automotive qualification testing is nearing completion.

Gating item for completing the device packaging is the tooling for the encapsulation of the package devices, which has been ordered and our packaging suppliers expecting its delivery in the next few weeks.

Speaker #5: Test results indicate that double-sided, cooled packaging utilized for V-tran devices is much more robust than semiconductor packages utilizing wire bonding, as wire bonding is a common point of failure in semiconductor packaging.

Dan Brdar: Test results indicate that double-sided cooled packaging utilized for BTRAN devices is much more robust than semiconductor packages utilizing wire bonding, as wire bonding is a common point of failure in semiconductor packaging. For example, to meet automotive qualification standards, packaged devices must withstand 15,000 power cycles without failure. Our devices recently passed 50,000 power cycles without any failures. In addition, the pre-qualification allowed us to identify and implement packaging improvements to optimize the design for easier assembly for high-volume manufacturing and to reduce cost. The production of multiple wafer runs required for high-volume automotive qualification testing is nearing completion. The gating item for completing the device packaging is the tooling or the encapsulation of the packaged devices, which has been ordered, and our packaging supplier is expecting its delivery in the next few weeks.

We previously mentioned orders for this year are not dependent on the successful completion of automotive qualification.

Speaker #5: For example, to meet automotive qualification standards, packaged devices must withstand 15,000 power cycles without failure. Our devices recently passed 50,000 power cycles without any failures.

We're achieving third party automotive qualification would provide additional confidence to industrial customers regarding b Trans long term reliability and also provide evidence of reliability under conditions, including extremes of humidity and temperature that surpassed those needed for industrial applications.

Speaker #5: In addition, the prequalification allowed us to identify and implement packaging improvements to optimize the design for easier assembly for high-volume manufacturing and to reduce costs.

And since engineers tend to be conservative when adopting new technologies automotive qualification with potentially speed up the rollout of <unk> based products by early adopters and our initial target industrial markets.

Speaker #5: The production of multiple wafer runs required for high-volume automotive qualification testing is nearing completion. The gating item for completing the device packaging is the cooling for the encapsulation of the packaged devices, which has been ordered. Our packaging supplier is expecting its delivery in the next few weeks.

Our B Tran patent of state continues to grow currently we have 96 issued B Tran patents with 47 of those issued outside of the United States.

Our patent coverage spans North America, China, Taiwan, Japan, South Korea, India, and Europe, all representing our high priority patent coverage geographies.

Speaker #5: We previously mentioned orders this year are not dependent on the successful completion of automotive qualification. However, achieving third-party automotive qualification would provide additional confidence to investor customers regarding V-tran's long-term reliability.

Dan Brdar: We previously mentioned orders this year are not dependent on the successful completion of automotive qualification. However, achieving third-party automotive qualification would provide additional confidence to industrial customers regarding BTRAN's long-term reliability. It also provides evidence of reliability under conditions, including extremes of humidity and temperature that surpass those needed for industrial applications. Since engineers tend to be conservative when adopting new technologies, automotive qualification would potentially speed up the rollout of BTRAN-based products by early adopters in our initial target industrial markets. Our BTRAN patent estate continues to grow. Currently, we have 96 issued BTRAN patents, with 47 of those issued outside of the United States. Our patent coverage spans North America, China, Taiwan, Japan, South Korea, India, and Europe, all representing our high-priority patent coverage geographies. As a result of our continued innovation, our list of pending BTRAN patents is now at 74.

As a result of our continued innovation our list of pending B Tran patents is now at 74.

Safeguard our intellectual property further we treat the proven double sided wafer process flow, we developed to make our devices as a trade secret and do not disclose the identity of and work under strict confidentiality with our wafer fabrication partners. So even if a competitor studied our patents they wouldn't have the knowhow to fabricate the device.

Speaker #5: It also provides evidence of reliability under conditions, including extremes of humidity and temperature, that surpass those needed for industrial applications. And since engineers tend to be conservative when adopting new technologies, automotive qualification would potentially speed up the rollout of V-tran-based products by early adopters and our initial target industrial markets.

In summary, we're excited about the expected purchase order from Atlantis, which targets multiple EV applications and will precede the new EV contactor program with Lantus.

Speaker #5: Our V-tran patent estate continues to grow, currently we have 96 issued V-tran patents, with 47 of those issued outside of the United States. Our patent coverage spans North America, China, Taiwan, Japan, South Korea, India, and Europe, all representing our high-priority patent coverage geographies.

Our first design win customer is completing their solid state circuit breaker prototype testing in advance of their plan B Tran enabled product launch later this year, we anticipate that following their initial product rollout. This OEM will broaden its product its product lineup to include a variety of <unk> enabled solid state circuit breakers across multiple power ratings, which could lead to.

Speaker #5: As a result of our continued innovation, our list of pending V-tran patents is now at 74. To safeguard our intellectual property further, we treat the proven double-sided wafer process flow we developed to make our devices as a trade secret and do not disclose the identity of, and work under strict confidentiality with, our wafer fabrication partners. Therefore, even if a competitor studied our patents, they wouldn't have the know-how to fabricate the device.

Dan Brdar: To safeguard our intellectual property further, we treat the proven double-sided wafer process flow we developed to make our devices as a trade secret and do not disclose the identity of and work under strict confidentiality with our wafer fabrication partners. Even if a competitor studied our patents, they wouldn't have the know-how to fabricate the device. In summary, we're excited about the expected purchase order from Stellantis, which targets multiple EV applications and will precede the new EV contactor program with Stellantis. Our first design win customer is completing their solid-state circuit breaker prototype testing in advance of their planned BTRAN-enabled product launch later this year. We anticipate that following their initial product rollout, this OEM will broaden its product lineup to include a variety of BTRAN-enabled solid-state circuit breakers across multiple power ratings, which could lead to significant revenue growth for us.

Significant revenue growth for us.

<unk> solid state switch gear for data centers, and other industrial facilities and grid infrastructure, including solid state circuit Breakers from this first design win customer as our path to significant revenue growth and profitability.

Additionally, we're now collaborating with our fourth and fifth global tier one automotive suppliers.

Speaker #5: In summary, we're excited about the expected purchase order from Stellantis, which targets multiple EV applications and will precede the new EV contactor program with Stellantis.

Additional top 10 global automakers as the automotive industry is seeking low loss solid state solutions for EV contractors.

Looking forward, we're confident we will deliver against all of our milestones for 2025. This year. In addition to the current program was to Lantus, we're expecting our second development program with them additional.

Speaker #5: Our first design win customer is completing their solid-state circuit breaker prototype testing in advance of their planned V-Tran-enabled product launch later this year. We anticipate that following their initial product rollout, this OEM will broaden its product lineup to include a variety of V-Tran-enabled solid-state circuit breakers across multiple power ratings, which could lead to significant revenue growth for us.

<unk> and our customer development agreements for circuit protection applications with global companies to start of a revenue ramp and increasing the power rating of our products and the completion of third party automotive qualification.

Speaker #5: We view solid-state switchgear for data centers and other industrial facilities, as well as grid infrastructure, including solid-state circuit breakers from this first design win customer, as our path to significant revenue growth and profitability.

Dan Brdar: We've used solid-state switchgear for data centers and other industrial facilities and grid infrastructure, including solid-state circuit breakers from this first design win customer, as our path to significant revenue growth and profitability. Additionally, we're now collaborating with our fourth and fifth global tier one automotive suppliers and additional top 10 global automakers, as the automotive industry is seeking low-loss solid-state solutions for EV contactors. Looking forward, we're confident we'll deliver against all our milestones for 2025. This year, in addition to the current program with Stellantis, we're expecting a second development program with them, additional design wins, and/or custom development agreements for circuit protection applications with global companies, the start of a revenue ramp, an increase in the power rating of our products, and the completion of third-party automotive qualification. Now, I'd like to hand the call over to Tim Burns to review our financials. Tim?

Now I'd like to hand, the call over to Tim Burns to review our financials.

Sure.

Thank you Dan and good morning, everyone. Our second quarter 2025 cash burn from operating and investing activities was $2 5 million up from $2 $2 million in the second quarter of 2024 and up from $2 $1 million in the first quarter of 2024.

Speaker #5: Additionally, we're now collaborating with our fourth and fifth global tier-one automotive suppliers, and additional top ten global automakers as the automotive industry is seeking low-loss solid-state solutions for EV contactors.

Speaker #5: Looking forward, we're confident we'll deliver against all our milestones for 2025. This year, in addition to the current program with Stellantis, we're expecting a second development program with them.

Our Q2 cash burn was at the lower end of our guidance of two 5% to $2 7 million.

Our cash burn from operating and investing activities for the first half of 2025 was $4 6 million up from $4 2 million in the first half of 2024.

Speaker #5: Additional design wins and/or custom development agreements for circuit protection applications with global companies, the start of our revenue ramp, an increase in the power rating of our products, and the completion of third-party automotive qualification.

We continue to manage expenses prudently and aggressively.

We expect third quarter 2025, cash burn to increase to approximately $2 7 million to $2 $9 million with the full year 2025 cash burn just over $10 million with the increase primarily due to the hiring of additional sales and engineering personnel.

Speaker #5: Now, I'd like to hand the call over to Tim Burns to review our financials. Tim?

Speaker #6: Thank you, Dan, and good morning, everyone. Our second quarter 2025 cash burn from operating investing activities was $2.5 million, up from $2.2 million in the second quarter of 2024, and up from $2.1 million in the first quarter of 2024.

Tim Burns: Thank you, Dan, and good morning, everyone. Our second quarter 2025 cash burn from operating investing activities was $2.5 million, up from $2.2 million in the second quarter of 2024, and up from $2.1 million in the first quarter of 2024. Our Q2 cash burn was at the lower end of our guidance of $2.5 million to $2.7 million. Our cash burn from operating and investing activities for the first half of 2025 was $4.6 million, up from $4.2 million in the first half of 2024. We continue to manage expenses prudently and aggressively. We expect third quarter 2025 cash burn to increase to approximately $2.7 million to $2.9 million, with a full year 2025 cash burn just over $10 million, with the increase primarily due to the hiring of additional sales and engineering personnel.

This compares to a 2020 for cash burn of $9 $2 million, excluding the benefit of warrant proceeds.

Cash cash equivalents totaled $11 1 million at June 32025.

Speaker #6: Our Q2 cash burn was at the lower end of our guidance of $2.5 to $2.7 million. Our cash burn from operating and investing activities for the first half of 2025 was $4.6 million, up from $4.2 million in the first half of 2024.

We have no debt and a clean capital structure.

Okay.

We recorded modest revenues for the second quarter of 2025 as customers continue to evaluate our technology.

While initial orders from a large companies evaluating our products for potential inclusion in their OEM products will be small we expect order sizes to increase as customers add to prototypes are OEM products and progress through their design cycles and rollout B Tran based products.

Speaker #6: We continue to manage expenses prudently and aggressively. We expect third quarter 2025 cash burn to increase to approximately $2.7 to $2.9 million with a full year 2025 cash burn just over $10 million with the increased primarily due to the hiring of additional sales and engineering personnel.

Looking at the balance of 2025, we expect to see the start of our sales ramp with revenue from product development activities. The launch of the first <unk> enabled breaker by our first design win customer and other product sales.

Speaker #6: This compares to a 2024 cash burn of $9.2 million excluding the benefit of warrant proceeds. Cash cash equivalents totaled $11.1 million at June 30th, 2025.

Tim Burns: This compares to a 2024 cash burn of $9.2 million, excluding the benefit of warrant proceeds. Cash equivalents totaled $11.1 million at June 30, 2025. We have no debt and a clean capital structure. We recorded modest revenue for the second quarter of 2025 as customers continue to evaluate our technology. While initial orders from large companies evaluating our products for potential inclusion in their OEM products will be small, we expect order sizes to increase as customers start to prototype their OEM products and progress through their design cycles and roll out BTRAN-based products. Looking at the balance of 2025, we expect to see the start of our sales ramp with revenue from product development activities, the launch of the first BTRAN-enabled breaker by our first design win customer, and other product sales.

Yes.

Operating expenses were $3 1 million in the second quarter of 2025 compared to $2 9 million in the second quarter of 2024 with the increase due to higher wafer fabrication and engineering personnel costs.

Speaker #6: We have no debt and a clean capital structure. We recorded modest revenue for the second quarter of 2025 as customers continue to evaluate our technology.

We expect both research and development and sales and marketing spending to increase modestly in the coming quarters due to recent and future hiring and costs associated with our development and commercialization efforts.

Speaker #6: While initial orders from the large companies evaluating our products for potential inclusion in their OEM products will be small, we expect order sizes to increase as customers start to prototype their OEM products and progress through their design cycles and rollout V-tran-based products.

We also continue to expect some quarter to quarter variability in operating expenses, particularly on research and development spending due to the timing of semiconductor fabrication runs product development other research and development activities and hiring.

Speaker #6: Looking at the balance of 2025, we expect to see the start of our sales ramp with revenue from product development activities, the launch of the first V-tran-enabled breaker by our first design win customer, and other product sales.

The timing of equity grants and related stock based compensation expense recognition will also cause variability in our quarterly operating expenses.

Speaker #6: Operating expenses were $3.1 million in the second quarter of 2025, compared to $2.9 million in the second quarter of 2024, with the increase due to higher wafer fabrication and engineering personnel costs.

Tim Burns: Operating expenses were $3.1 million in the second quarter of 2025 compared to $2.9 million in the second quarter of 2024, with the increase due to higher wafer fabrication and engineering personnel costs. We expect both research and development and sales and marketing spending to increase modestly in the coming quarters due to recent and future hiring and costs associated with our development and commercialization efforts. We also continue to expect some quarter-to-quarter variability in operating expenses, particularly our research and development spending, due to the timing of semiconductor fabrication runs, product development, other research and development activities, and hiring. The timing of equity grants and related stock-based compensation expense recognition will also cause variability in our quarterly operating expenses. Net loss in the second quarter of 2025 was $3 million compared to $2.7 million in the second quarter of 2024.

Net loss in the second quarter of 2025 was $3 million compared to $2 $7 million in the second quarter of 2024.

Considering our asset light business model, no debt and modest planned cash burn we have.

Speaker #6: We expect both research and development and sales and marketing spending to increase modestly in the coming quarters, due to recent and future hiring and costs associated with our development and commercialization efforts.

Sufficient liquidity on our balance sheet to fund operations through at least mid 2026.

We will potentially see several sources of funds over the next year, such as product sales development agreements and other commercial agreements with upfront payments.

Speaker #6: We also continue to expect some quarter-to-quarter variability in operating expenses, particularly our research and development spending, due to the timing of semiconductor fabrication runs, product development, other research and development activities, and hiring.

Additionally, we are exploring strategic relationships with our well capitalized and large global partners with these opportunities strengthening as we further advance these customer relationships.

As a publicly traded company. We also have access to the capital markets, if necessary, providing us with additional financial flexibility.

Speaker #6: The timing of equity grants and related stock-based compensation expense recognition will also cause variability in our quarterly operating expenses. Net loss in the second quarter of 2025 was $3 million, compared to $2.7 million in the second quarter of 2024.

At the end of June we had $8 million and 498014 shares outstanding.

945318 options and stock units outstanding.

Speaker #6: Considering our asset-light business model, no debt and modest planned cash burn, we have sufficient liquidity on our balance sheet to fund operations through at least mid-2026.

Tim Burns: Considering our asset-light business model, no debt, and modest planned cash burn, we have sufficient liquidity on our balance sheet to fund operations through at least mid-2026. We will potentially see several sources of funds over the next year, such as product sales, development agreements, and other commercial agreements with upfront payments. Additionally, we are exploring strategic relationships with our well-capitalized and large global partners, with these opportunities strengthening as we further advance these customer relationships. As a publicly traded company, we also have access to the capital markets if necessary, providing us with additional financial flexibility. At the end of June, we had 8,498,014 shares outstanding, 945,318 options and stock units outstanding, 653,827 pre-funded warrants outstanding, and 342,240 warrants outstanding. At June 30, 2025, our fully diluted share count was 10,439,399 shares.

653, 827 pre funded warrants outstanding.

And 340 to 240 warrants outstanding.

Speaker #6: We'll potentially see several sources of funds over the next year, such as product sales, development agreements, and other commercial agreements with upfront payments. Additionally, we're exploring strategic relationships with our well-capitalized and large global partners, with these opportunities strengthening as we further advance these customer relationships.

At June 32025, our fully diluted share count was $10 million 139399 shares.

The 342240 warrants outstanding at June 30th.

2025 expired unexercised earlier this month. So there are no warrants remaining and our fully diluted share count.

Speaker #6: As a publicly traded company, we also have access to the capital markets if necessary, providing us with additional financial flexibility. At the end of June, we had $8 million 498 thousand 14 shares outstanding, 945 thousand 308 options in stock units outstanding, 653 827 pre-funded warrants outstanding, and 342 thousand 240 warrants outstanding.

At this time I would like to open up the call for questions operator.

Yes.

Certainly at this time, we're conducting the question and answer session.

Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen.

Analysts, who publish research you may ask questions on the phone line for analysts to ask questions on the phone line. Please press star one to enter the queue. Please hold just a moment, while we poll for questions.

Speaker #6: At June 30th, 2025, our fully diluted share count was 10 million 439 thousand 399 shares. The 342 thousand 240 warrants outstanding at June 30th 2025 expired unexercised earlier this month, so there are no warrants remaining in our fully diluted share count.

You have a question coming from KC, Ryan with West Park capital. Please pose your question your line is live.

Tim Burns: The 342,240 warrants outstanding at June 30, 2025 expired unexercised earlier this month, so there are no warrants remaining in our fully diluted share count. At this time, I would like to open up the call for questions. Operator?

Thank you good morning, gentlemen, this is an exciting update.

Yeah, I did it's for some questions.

Particularly around <unk> I think how do we think about the opportunity with them I think youre mentioning.

Speaker #6: At this time, I'd like to open up the call for questions. Operator?

That form which is helpful but.

Speaker #2: Certainly. At this time, we're conducting the question and answer session. Investors can submit their questions within the meeting webcast by typing them into the QA button on the left side of your viewing screen.

Kelly: Certainly. At this time, we are conducting the question and answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one to enter the queue. Please hold just a moment while we pull for questions. You have a question coming from Casey Ryan with WestPark Capital. Please push your question. Your line is live.

To sort of boil it down for us in the public.

I think still Anthos, a 16 brands that you mentioned, maybe for an EV vehicle, but.

What's the right way to think about your exposure look like.

Speaker #2: Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press *1 to enter the queue.

Could you be exposed all 16 brands are you exposed to all evs within the 16 brands or is there some other way to sort of simplify what what the opportunity there is.

Speaker #2: Please hold just a moment. While we pull for questions. You have a question coming from Casey Ryan, with West Park Capital. Please put your question, your line is live.

Yes, I mean, our understanding from discussions with them as they want commonality across their brands and their EV platform. So you would see us in multiple brands that people would recognize there will be some brands mass.

Speaker #7: Thank you. Good morning, gentlemen. This is an exciting update. Hey, I did, it did spur some questions. Particularly around Stellantis, you know, I think how do we think about the opportunity with them?

Casey Ryan: Thank you. Good morning, gentlemen. This is an exciting update. I did spur some questions, particularly around Stellantis. I think how do we think about the opportunity with them? I think you are mentioning a platform, which is helpful, but to sort of boil it down for us in the public, I think Stellantis has 16 brands, but you mentioned it is maybe for an EV vehicle. What is the right way to think about your exposure? Could you be exposed to all 16 brands? Are you exposed to all EVs within the 16 brands, or is there some other way to sort of simplify what the opportunity there is?

<unk> variety, where they will probably go.

Higher cost solutions like Silicon carbide, where cost is not an issue and people aren't worried so much about range because of the different application, but they really want to have a common <unk> platform since they've got to continue to support the combustion vehicles. They don't want to have multiple iterations for every brand of what their new EV products are going to look like so it gives us a pretty broad opportunity.

Speaker #7: I think you're mentioning platform, which is helpful, but to sort of boil it down for us in the public, I think Stellantis has 16 brands, but you mentioned it's maybe for an EV vehicle, but what's the right way to think about your exposure?

<unk> across a broad range of midsize vehicles.

Speaker #7: Like, e, could you be exposed to all 16 brands? Are you exposed to all EVs within the 16 brands? Or is there some other way to sort of simplify what the opportunity there is?

For France.

France.

Okay. So so terrific. So it's certainly fair for us to think of it maybe multiple brands, maybe not all 16, but certainly more than one and then multiple vehicles profitably.

Speaker #8: Yeah, I mean, our understanding from discussions with them is they want commonality across their brands and their EV platform. So you would see us in multiple brands that people would recognize.

Dan Brdar: Yeah, I mean, our understanding from discussions with them is they want commonality across their brands and their EV platform. So you would see us in multiple brands that people would recognize. There will be some brands, you know, like Maserati, where they will probably go with higher-cost solutions like silicon carbide, where cost is not an issue and people aren't worried so much about range because it's a different application. But they really want to have a common EV platform since they've got to continue to support their combustion vehicles. They don't want to have multiple iterations for every brand of what their new EV products are going to look like. So it gives us a pretty broad opportunity across a broad range of midsize vehicles and for numerous brands.

Clearly plan on it being multiple grants they've made that very clear to us and part of this work that they are they've told us we're getting a purchase order for us to also start to drive some commonality.

Speaker #8: There will be some brands, you know, like Maserati, where they will probably go with higher-cost solutions like silicon carbide, where cost is not an issue, and people aren't worried so much about range because it's a different application.

Even within the EV originally the drivetrain and EV contact our programs were very separate.

Speaker #8: But they really want to have a common EV platform since they've got to continue to support their combustion vehicles. They don't want to have multiple iterations for every brand of what their new EV products are going to look like.

They were growing separate paths and this work is to actually converge on the semiconductor and packaging design prior to getting the contactor program awarded because they really want to have that same solution and both of those parts of the vehicle. So it gives us commonality in what we were going to provide for multiple applications within the EV.

Speaker #8: So it gives us a pretty broad opportunity across a broad range of mid-sized vehicles, and for numerous brands.

Speaker #7: Okay, so terrific. So it's certainly fair for us to think it may be multiple brands, maybe not all 16 but certainly more than one, and then.

Casey Ryan: Okay, so terrific. It's certainly fair for us to think it may be multiple brands, maybe not all 16, but certainly more than one, and then multiple vehicles possibly.

Yeah.

That's really terrific.

I think in the past we've talked about the contactor is potentially being in the hundreds of dollars of content per vehicle.

Speaker #8: Oh, it's 15. 15.

Speaker #7: Multiple vehicles possibly.

Speaker #8: Well, they clearly plan on it being multiple brands. They've made that very clear to us. And part of this work that they're they've told us that we're getting a purchase order for is to also start to drive some commonality even within the EV.

Dan Brdar: They clearly plan on it being multiple brands. They have made that very clear to us. Part of this work that they have told us that we are getting a purchase order for is to also start to drive some commonality even within the EV. Originally, the drivetrain and EV contactor programs were very separate. They were going separate paths. This work is to actually converge on the semiconductor and packaging design prior to getting the contactor program awarded because they really want to have that same solution in both of those parts of the vehicle. It gives us commonality in what we are going to provide for multiple applications within the EV.

If you were in the like total vehicle across all these opportunities.

Would that number sort of move higher to sort of.

Closer to four four figures or would it still be in the hundreds, but possibly higher.

Speaker #8: Originally, the drivetrain and EV contactor programs were very separate. They were going separate paths, and this work is to actually converge on the semiconductor and packaging design prior to getting the contactor program awarded, because they really want to have that same solution in both of those parts of the vehicle.

Then the contactor is alone I guess.

Yes, so we estimate the total power semiconductor content and it'd be about a $100.

Biggest part of that actually is drivetrain inverter itself.

Contact or two maybe $300 of that of that content. So it's most of the content and the other content you're looking at is things like the onboard charger.

Speaker #8: So, it gives us commonality in what we are going to provide for multiple applications within the EV.

Which may use maze, lower power devices or Mas fence.

Speaker #7: That's really terrific. You know, I think in the past we've talked about the contactors potentially being in the hundreds of dollars of content per vehicle.

Casey Ryan: That is really terrific. I think in the past we have talked about the EV contactors potentially being in the hundreds of dollars of content per vehicle. If you were in the total vehicle across all these opportunities, would that number sort of move higher to closer to four figures, or would it still be in the hundreds, but possibly higher than the EV contactors alone, I guess?

But for US it's really the drivetrain over.

I heard on semi I won't say that antibody $750 of content in a drivetrain and greater from power semiconductors.

Speaker #7: If you were in the, like, total vehicle across all these opportunities, I mean, would that number sort of move higher to sort of, you know, closer to four figures, or would it still be in the hundreds but possibly higher?

I've heard that number out there, but it's several hundred dollars certain weakening.

Okay terrific terrific.

Yeah.

One thing that we've talked about I think moving to commercial revenue is a very exciting thing for the second half of 'twenty five but.

Speaker #7: Then the contractors alone, I guess.

Speaker #8: Yeah, so we estimate the total power semiconductor content in the EV at approximately $1,100. The biggest part of that, actually, is the drivetrain inverter itself.

Tim Burns: So we estimate the total power semiconductor content in the EV about $1,100. The biggest part of that actually is the drivetrain inverter itself. EV contactors might be maybe $300 of that content. So it's most of the content. The other content you're looking at is things like the onboard charger, which may use more power devices or MOSFETs. But for us, it's really the drivetrain inverter. I think I heard On Semi, at one point, say that they had about $750 of content in a drivetrain inverter for power semiconductors. I have heard that number out there, but it's several hundred dollars certainly for me.

I am curious in terms of your design win opportunities and how they come to you and how would you.

Classify those in terms of volume of opportunities.

Speaker #8: EV contactors make maybe $300 of that content. So it's most of the content. The other content you're looking at is things like the onboard charger, which may use lower power devices or MOSFETs.

As we're curious about all the applications of your technology.

Would you say that that known design win.

Opportunities for you to sort of number.

And like the like 10, because were sort of talking about automotives.

Speaker #8: But for us, it's really the drivetrain inverter. I think I heard on semi at 1. say that they had about 750 dollars of content in a drivetrain inverter for power semiconductors.

People, primarily oral are they potentially in the hundreds of thousands in terms of where you guys could be consumed or sort of considered as <unk>.

Grade solution.

Speaker #8: So I've heard that number out there, but it's several hundred dollars certainly for the inverter.

So he clarify that a little bit.

Speaker #7: Okay, terrific. Terrific. One thing that we've talked about, you know, and like I think moving to commercial revenue is a very exciting thing for the second half of '25, but I'm curious, in terms of your design win opportunities and how they come to you, how would you classify those in terms of volume of opportunities?

<unk>.

Casey Ryan: Okay, terrific. Terrific. One thing that we have talked about, you know, I think moving to commercial revenue is a very exciting thing for the second half of 2025. I am curious, in terms of your design win opportunities and how they come to you, how would you classify those in terms of a volume of opportunities? Just as we are curious about all the applications of your technology, would you say that that known design win, you know, opportunities for you sort of number in like the tens because we are sort of talking about automotive people primarily, or are they potentially in the hundreds or thousands in terms of where you guys could be consumed or sort of considered as an upgrade solution?

Well no.

No I'll just say how many design opportunities are you guys seeing out there in the marketplace separate from what you've talked about ready to sort of.

What's on your sales pipeline board essentially like okay.

How big is that funnel is what I'm sort of curious about.

Yes. It continues to grow I mean, if you look at the automotive side, it's more discrete because theyre just less players there. So theres five global auto Oems four of which are in the top 10.

Speaker #7: Just as we're curious about all the applications of your technology. Would you say that that known design win, you know, opportunities for you sort of number in like the like tens?

And five tier one suppliers.

Now if we look at the industrial side, there's many many more because there are a lot of companies that we are working with it.

Speaker #7: Because we're sort of talking about automotive. People primarily, or are they potentially in the hundreds or thousands in terms of where you guys could be consumed or sort of considered as a upgrade solution?

Are interested in solid state circuit breakers.

They range in size from very large companies that people would recognize of and.

And I'm not saying these are them by name, but they would be companies like Siemens or an Eaton nurse Schneider to.

Speaker #8: The key clarify that a little bit, Casey on.

Tim Burns: Could you clarify that a little bit, Casey?

Speaker #7: Yeah, well, no, I'm just saying how many design opportunities are you guys seeing out there in the marketplace separate from what you've talked about already to sort of what's on your sales pipeline board essentially?

Casey Ryan: Well, no, I am just saying how many design opportunities are you guys seeing out there in the marketplace separate from what you have talked about already to what is on your sales pipeline board essentially? How big is that funnel is what I am curious about.

Some midsized companies that are also looking to try and find a way to take market share from the big folks.

Our earlier design wins are clearly going to be on the industrial side will get funded programs through the tier ones and the automotive companies since their design cycles are longer but a lot of our effort right now is really focusing on the industrial applications, where we will have our first wins.

Speaker #7: Like, how big is that funnel is what I'm sort of curious about.

Speaker #8: Yeah, I mean, it continues to grow. I mean, if you look at the automotive side, it's more discreet because they're just less players there, so there's five global auto OEMs.

Dan Brdar: Yeah, I mean, it continues to grow. If you look at the automotive side, it is more discreet because there are just less players there. So there are five global auto OEMs, four of which are in the top 10, and five tier one automotive suppliers. Now, if we look at the industrial side, there are many, many more because there are a lot of companies that we are working with that are interested in solid-state circuit breakers. They range in size from very large companies that people would recognize, and I am not saying these are them by name, but they would be companies like a Siemens or an Eaton or a Schneider, to some midsize companies that are also looking to try and find a way to take market share from the big folks.

Speaker #8: Four of which are in the top ten. And five tier-one suppliers. Now, if you look at the industrial side, there's many, many more because there are a lot of companies that we are working with that are interested in solid-state circuit breakers.

Yes, Okay, alright terrific that's helpful.

And then you mentioned silicon carbide in the cost issue.

I'm, just curious technically and how you guys feel about this.

Customers prefer silicon carbide costs, not being an issue or.

Speaker #8: They range in size from very large companies that people would recognize of, and I'm not saying these are them by name, but they would be companies like a Siemens or an Eaton or Schneider, to, you know, some mid-sized companies that are also looking to try and find a way to take market share from the big folks.

<unk>.

Is that not always the case and not not that silicon carbide will ever get to cost parity with your solution, but I'm just curious how customers think about that.

Are you saw our first design win customers. The example.

Speaker #8: So, you know our earlier design wins are clearly going to be on the industrial side. We'll get funded programs through the tier ones and the automotive companies since their design cycles are longer.

Dan Brdar: So our earlier design wins are clearly going to be on the industrial side. We will get funded programs through the tier one automotive suppliers and the automotive companies since their design cycles are longer. But a lot of our effort right now is really focusing on the industrial applications where we will have our first wins.

The breaker that they sent to us that was silicon carbide cost was a problem, but the biggest issue was it got too hot it wouldn't meet the standards, even mid 20 Amp unit directional applications. So we were actually to give them breakers back that have three times. The power density. They were 63 breakers that we sent them back and they were.

Speaker #8: But you know a lot of our effort right now is really focusing on the industrial applications where we'll have our first wins.

Speaker #7: Yeah, okay. All right, terrific. That's helpful. And then you mentioned silicon carbide in the cost issue. I'm just curious, technically, how you guys feel about this.

Casey Ryan: Yeah, okay. All right, terrific. That's helpful. You mentioned silicon carbide and the cost issue. I am just curious technically in how you guys feel about this. Would customers prefer silicon carbide cost not being an issue, or is that not always the case? Not that silicon carbide will ever get to cost parity with your solution, but I am just curious how customers think about that.

Directional which is what they need particularly on DC applications.

That the temperature ryzen meets the codes and standards. So its key is the big problem because the conduction losses are high in silicon carbide.

Speaker #7: If customers would prefer silicon carbide, cost not being an issue, or is that not always the case? And not that silicon carbide will ever get to cost parity with your solution, but I'm just curious how customers think about that.

Okay.

Great that's illuminate and then.

The last question you guys also mentioned in the script data center opportunities.

Speaker #8: Well, our use of our first design win customer is the example. The breaker that they sent us that was silicon carbide; the cost was a problem, but the biggest issue was it got too hot.

Dan Brdar: Our first design win customer is the example. The breaker that they sent us that was silicon carbide, the cost was a problem, but the biggest issue was it got too hot. It would not meet the standards, even at 20-amp unidirectional applications. We were actually to give them breakers back that had three times the power density. They were 63-amp breakers that we sent them back, and they were bidirectional, which is what they need, particularly on DC applications. The temperature rise in them meets the codes and standards. Heat is the big problem because the conduction losses are high in silicon carbide.

Can your products be integrated into it.

<unk> environment.

A data center.

As like a hybrid solution like like Kevin some of your products be consumed but also be in a mixed environment with older technology as well.

Speaker #8: It wouldn't meet the standards even at 20-amp unidirectional applications. So we were actually to give them breakers back that had three times the power density.

Yes.

We are seeing is.

They are prioritizing where there is a really a need for speed.

Speaker #8: They were 63-amp breakers that we sent back, and they were bi-directional, which is what they need, particularly for DC applications. The temperature rise in them meets the codes and standards.

That impacts the quality of the power on the datacenter so speed of transfer switches speed breakers.

We don't expect that given the data center is going to swap out every break or all at once they will do that and kind of a staged fashion. So.

Speaker #8: So it's heat is the big problem because the conduction losses are high. And silicon carbide.

Youll just have one part of the data center that will perform at a different level and have different diagnostic capabilities than what it may have been built with 510 years ago.

Speaker #7: Okay. Great. That's illuminating. And then kind of the last question, you guys also mentioned in the script, you know, data center opportunities. Can your products be integrated into an environment, say, a data center?

Casey Ryan: Okay, great. That's illuminating. Then, kind of the last question, you guys also mentioned in the script, data center opportunities. Can your products be integrated into an environment, say, a data center, as like a hybrid solution? Can some of your products be consumed but also be in a mixed environment with older technology as well?

Okay. Good so.

There is ample opportunity in existing markets and not just in my Greenfield built essentially so correct. That's what I was curious about.

Speaker #7: As a hybrid solution, can some of your products be consumed while also operating in a mixed environment with older technology as well?

The big issue for them is electricity is the biggest operating cost.

Speaker #8: Yeah, you know, we're seeing is they're prioritizing where there's a really a need for speed that impacts the quality of the power on the data center.

So while they want to have faster asking solutions to enable them to maximize their uptime.

Dan Brdar: Yeah, what we're seeing is they're prioritizing where there's really a need for speed that impacts the quality of the power on the data center. You know, speed of transfer switches, speed of breakers. We don't expect that given data center is going to swap out every breaker all at once. They'll do that in kind of a staged fashion. So you'll just have one part of the data center that will perform at a different level and have different diagnostic capabilities than what it may have been built with, you know, five, ten years ago.

That comes from some of the solutions that are out there that our silicon carbide based.

Speaker #8: So, you know, the speed of transfer switches, speed of breakers—we don't expect that given data centers are going to swap out every breaker all at once.

Can help them because it raises their electricity usage, which works against their business model. So I think there's a great opportunity for us as people look to modernize their data centers to actually replace things that are existing as well as being the new builds.

Speaker #8: They'll do that in kind of a staged fashion. So you'll just have one part of the data center that will perform at a different level and have different diagnostic capabilities than what it may have been built with, you know, five to ten years ago.

Yeah, Okay terrific well, that's another great market for your technology I think that's it for me, but look this is a very exciting update I think we're getting to sort of important demarcation lines as you get closer to commercial revenue. So thank you for the thank you for taking my questions.

Speaker #7: Okay, good. So there's like ample opportunity in like existing markets and not just in like greenfield builds essentially, so. That's what I

Casey Ryan: Okay, good. So there is ample opportunity in existing markets and not just in greenfield builds, essentially.

Speaker #8: Correct.

Dan Brdar: Correct.

Casey Ryan: is what I was curious about.

Speaker #7: was curious about.

Speaker #8: Yeah, I mean, credential centers, you know, the big issue for them is, you know, electricity is the biggest operating cost. So while they want to have faster asking solutions to enable them to, you know, maximize their uptime, the waste heat that comes from some of the solutions that are out there that are silicon carbide-based doesn't help them because it raises their electricity usage, which, you know, works against their business model.

Thanks, Casey Casey.

Dan Brdar: Yeah, I mean, for data centers, the big issue for them is electricity is the biggest operating cost. While they want to have faster-acting solutions to enable them to maximize their uptime, the waste heat that comes from some of the solutions that are out there that are silicon carbide-based does not help them because it raises their electricity usage, which works against their business model. So I think there is a great opportunity for us as people look to modernize the data centers to actually replace things that are existing as well as be in the new builds.

I would now like to turn the floor over to Jeff Christianson to take any questions from the webcast Jeff.

Thank you Kelly.

Our first question is.

There was submitted by investors there is a lot of semi semi.

Conductor specialist degree.

Technology is is excellent.

Speaker #8: So I think there's a great opportunity for us as people look to modernize the data centers to actually replace things that are existing as well as being in the new builds.

And it's a game changer for niche solid state circuit Breakers, EV hybrid applications and more what are the challenge to closing sales.

Speaker #7: Yeah, okay, terrific. Well, that's another great market for your technology. I think that's it for me, but look, this is a very exciting update.

Casey Ryan: Yeah, okay, terrific. Well, that's another great market for your technology. I think that's it for me, but look, this is a very exciting update. I think we're getting to sort of an important demarcation line as you get closer to commercial revenue. Thank you for the update.

Are there any technical challenges and are there any are there one or two issues the company needs to overcome.

Speaker #7: I think we're getting to sort of an important demarcation line as you get closer to commercial revenue. So, thank you for the update. Thank you for.

There are issues more individual for each company.

Speaker #8: Thank you.

Speaker #7: taking my questions. Thanks,

Dan Brdar: Thank you, Casey.

Casey Ryan: Thank you for taking my questions.

They haven't really been any technical challenges the biggest issue really is just the education process.

Speaker #8: Thanks, Casey.

Dan Brdar: Thanks, Casey.

Speaker #7: Casey.

Casey Ryan: Thanks, Casey.

Speaker #2: I would now like to turn the floor over to Jeff Christensen to take any questions from the webcast. Jeff?

Kelly: I would now like to turn the floor over to Jeff Christensen to take any questions from the webcast. Jeff?

Think about things like Silicon carbide, MOSFET MOSFET they've been around for 25 years. So engineers learns about them in school.

Speaker #9: Thank you, Kelly. My first question is: a lot of it that was submitted by investors is that a lot of semiconductor specialists agree that the technology is excellent, and it's a game changer for niche solid-state circuit breakers, EV, hybrid applications, and more.

Jeff Christensen: Thank you, Kelly. Our first question, a lot of that was submitted by investors, is a lot of semiconductor specialists agree that the technology is excellent and it's a game changer for niche solid-state circuit breakers, EV, hybrid applications, and more. What are the challenges to closing sales? Are there any technical challenges, and are there one or two issues the company needs to overcome, or are issues more individual for each company?

I've worked with them previously our technology is new so you've got to get the engineering community through that education process, you got to get devices in their hands and get them in the lab working with them get comfortable with them. It's also part of why we do things like present papers at the applied power Electronics Conference every year, we've got an article coming out.

And the entrepreneur magazine. This year, it's really helped discontinue that education to the technical community to get them through that learning process. So theyre comfortable adopting a new technology.

Speaker #9: What are the challenges to closing sales? Are there any technical challenges? And are there one or two issues the company needs to overcome or are there issues more individual for each company?

Thank you.

Our next submitted question is what is Idaho power doing to drive sales ramp and increase product awareness.

Speaker #8: There haven't really been any technical challenges. The biggest issue really is just the education process. You know, you think about things like silicon carbide MOSFETs.

Dan Brdar: There haven't really been any technical challenges. The biggest issue really is just the education process. You know, you think about things like silicon carbide MOSFETs. They've been around for 25 years. So engineers learned about them in school. You know, they've worked with them previously. Our technology is new. So you've got to get the engineering community through that education process. You've got to get devices in their hands, get them in the lab, working with them, get comfortable with them. It's also part of why we do things like present papers at the Applied Power Electronics Conference every year. We've got an article coming out in the IEEE magazine this year to really help just continue that education to the technical community to get them through that learning process so they're comfortable adopting a new technology.

Yes, so for US we're taking really several paths to market, we have our own internal sales team. We have distributor relationships. We have sales reps, we have a new partnership with <unk>.

Speaker #8: MOSFETs, they've been around for 25 years. So engineers learned about them in school, you know, they've worked with them previously. Our technology is new.

Speaker #8: So you've got to get the engineering community through that education process. You've got to get devices in their hands, get them in the lab working with them, get comfortable with them.

Whether they will actually be selling our products alongside their own.

We're also continuing to increase awareness in the community Dan had mentioned.

Speaker #8: It's also part of why we do things like present papers at the Applied Power Electronics Conference every year. We've got an article coming out in the IEEE magazine this year to really help discontinue that education through the technical community.

There's going to be an article about B Tran in solid state circuit breaker applications in the next issue by Tripoli magazine. We also actively attend trade shows we've been to APAC in PJM earlier this year will be at the upcoming Ecce conference in Philadelphia.

Speaker #8: To get them through that learning process so they're comfortable adopting a new technology.

And we also recently launched a global.

So I would say circuit breaker campaign.

Speaker #9: Thank you. Our next submitted question is: What is Ideal Power doing to drive sales ramp and increase product awareness?

Jeff Christensen: Thank you. Our next submitted question is, what is Ideal Power doing to drive sales ramp and increase product awareness?

That incorporates the test results that Dan had mentioned related to our first design win that showed that <unk> significantly outperforms Sylvia.

Silicon carbide MOSFET and breakers.

Speaker #8: Yeah, so for us, we're taking really several paths to market. We have our own internal sales team. We have distributor relationships. We have sales reps.

Tim Burns: For us, we are taking several paths to market. We have our own internal sales team. We have distributor relationships. We have sales reps. We have the new partnership with QiMei, where they will actually be selling our products alongside their own. We are also continuing to increase awareness in the technical community. Dan Brdar had mentioned there is going to be an article about BTRAN and solid-state circuit breaker applications in the next issue of IEEE magazine. We also actively attend trade shows. We have been to APEC and PCIM earlier this year. We will be at the upcoming ECCE conference in Philadelphia. We also recently launched a global solid-state circuit breaker campaign that incorporates the test results that Dan Brdar had mentioned related to our first design win that showed that BTRAN significantly outperforms silicon carbide MOSFETs in breakers.

So there is advantage really carries over to other solid state switch gear applications like Hebei contactor is another application. We're targeting so we're really taking a multi pronged approach in terms of getting b Tran in into the trade press and also just really increase awareness.

Speaker #8: We have the new partnership with Time A. Where there will actually be selling our products alongside their own. We're also continuing to increase awareness in the technical community.

Speaker #8: Dan had mentioned there's going to be an article about V-tran and solid-state circuit breaker applications in the next issue of IEEE magazine. We also actively attend trade shows.

Thank you.

The next question is.

New to ideal power in simple terms, what is in <unk> and what are the advantages of Idaho, Power's B Tran compared to in IGT.

Speaker #8: We've been to APEC and PCIM earlier this year. We'll be at the upcoming ECCE conference in Philadelphia. Additionally, we recently launched a global solid-state circuit breaker campaign that incorporates the test results that Dan had mentioned related to our first design win, which show that V-Tran significantly outperforms silicon carbide MOSFETs in breakers.

Okay.

And <unk>, it's a unit directional semiconductor device is it functions as an electronic switch that controls the flow of energy for various applications. Our gbt's are used for high voltage high current applications like power converters for electric vehicles, or EV charging or energy storage and renewable energy industrial motor drives.

Speaker #8: So, this advantage really carries over to other solid-state switchgear applications like EV contactors, another application we're targeting. So, we're really taking a multi-pronged approach in terms of getting V-tran into the trade press and also really increasing awareness.

Tim Burns: This advantage really carries over to other solid-state switchgear applications like EV contactors, another application we are targeting. We are really taking a multi-pronged approach in terms of getting BTRAN into the trade press and also just really increase awareness.

<unk> and other industrial and utility applications.

<unk> is a big market, it's about a $10 billion market today with a lot of growth expected over the coming decades, just due to increasing electrification of society.

The primary advantage of B Tran overnight GBT is the B Tran offers improved performance and bi directionality.

Speaker #9: Thank you. The next submitted question is, I'm new to Ideal Power and simple terms. What is an IGBT? And what are the advantages of Ideal Power's V-Tran compared to an IGBT?

Jeff Christensen: Thank you. The next submitted question is, I am new to Ideal Power. In simple terms, what is an IGBT, and what are the advantages of Ideal Power's BTRAN compared to an IGBT?

<unk> is increasingly important as we use batteries more and more because you need to control the flow of energy during charging and discharging. The battery. So you see solar coupled with energy storage you see electric vehicles, you see EV charging with backup batteries for buffer capability.

Speaker #9: Okay. An IGBT, it's a unidirectional semiconductor device that functions as an electronic switch that controls the flow of energy for various applications. IGBTs are used for high voltage high current applications like power converters for electric vehicles or EV charging or energy storage and renewable energy.

Dan Brdar: Okay. An IGBT, it is a unidirectional semiconductor device that functions as an electronic switch that controls the flow of energy for various applications. IGBTs are used for high voltage, high current applications like power converters for electric vehicles or EV charging or energy storage and renewable energy, industrial motor drives, and other industrial and utility applications. IGBTs are a big market. It is about a $10 billion market today with a lot of growth expected over the coming decades just due to increasing electrification of society. The primary advantage of BTRAN over an IGBT is that BTRAN offers improved performance and bi-directionality. Bi-directionality is increasingly important as we use batteries more and more because you need to control the flow of energy during charging and discharging of the battery. You see solar coupled with energy storage. You see electric vehicles.

In terms of performance nutrient has significantly lower conduction losses.

And it's more efficient so it produces less heat in <unk> that allows OEM products to be smaller and more efficient because the size of a lot of power electronics like a power converter are driven by the needs to dissipate waste heat.

Speaker #9: Industrial motor drives and other industrial and utility applications are significant markets. IGBTs represent a substantial market, valued at approximately $10 billion today, with a lot of growth expected over the coming decades due to the increasing electrification of society.

<unk>.

So it really comes down to being able to provide a high level of performance.

Speaker #9: The primary advantage of V-tran over an IGBT is that V-tran offers improved performance and bi-directionality. And bi-directionality is increasingly important as we use batteries more and more because you need to control the flow of energy during charging and discharging of the battery.

The big issue really for a lot of these bi directional applications is anytime you're using in IGT you need four devices to make a bidirectional switch unique payers of RGB season diodes to control the flow in either direction. So theres more parts that will fail, there's more cost and there is significantly higher loss about five times.

Speaker #9: So you see solar coupled with energy storage. You see electric vehicles. You see EV charging with backup batteries for buffer capability. In terms of performance, V-tran has significantly lower conduction losses.

Higher conduction loss.

Dan Brdar: You see EV charging with backup batteries for buffer capability. In terms of performance, BTRAN has significantly lower conduction losses and it is more efficient. It produces less heat than IGBTs. That allows OEM products to be smaller and more efficient because the size of a lot of power electronics, like a power converter, are driven by the need to dissipate waste heat. You know, it really comes down to being able to provide a high level of performance. The big issue really for a lot of these bidirectional applications is anytime you are using an IGBT, you need four devices to make a bidirectional switch. You need pairs of IGBTs and diodes to control the flow in either direction. There are more parts that will fail. There is more cost.

For bidirectional switch using conventional things like RGB fees. So you end up with a more efficient solution using b Tran and one that can actually be lower cost because it's a lower cost bidirectional switch and lower lifetime costs for the Oems.

Speaker #9: And it's more efficient. So it produces less heat than IGBTs. That allows OEM products to be smaller and more efficient. Because the size of a lot of power electronics like a power converter are driven by the need to dissipate waste heat.

Okay.

Thank you.

The next question is when will Idaho power get to cash flow breakeven.

Speaker #9: So, you know, it really comes down to being able to provide a high-level performance and the big issue really for a lot of these bi-directional applications is anytime you're using an IGBT, you need four devices to make a bi-directional switch.

Yes.

So it really depends on product and customer mix, obviously, the pace of adoption is going to influence that.

But what it really comes down to is it only takes a few key design wins for us to get to cash flow breakeven.

Speaker #9: You need pairs of IGBTs and diodes to control the flow in either direction. So, there are more parts that will fail. There's more cost, and there's significantly higher loss—about five times higher conduction loss for bi-directional switches using conventional components like IGBTs.

We are engaged with large global companies that are evaluating our technology for their applications.

Dan Brdar: There is significantly higher loss, about five times the higher conduction loss for a bidirectional switch using conventional things like IGBTs. You end up with a more efficient solution using BTRAN and one that can actually be lower cost because it is a lower cost bidirectional switch and lower lifetime costs for the OEMs.

Landing, even a single design win can generate millions or even in excess of $10 million in revenue annually for ideal powers. So.

It comes down to again.

Speaker #9: So you end up with a more efficient solution using V-Tran, and one that can actually be lower cost because it's a lower-cost bi-directional switch.

Which design wins happen at one time and just.

But really the pace of adoption.

But it will not take as much to get there. We can do it with just solid state circuit Breakers, obviously will have contributions from development programs around electric vehicles, but it's really the industrial markets will get us there.

Speaker #9: And lower lifetime cost for the OEMs. Thank you. The next question is, when will Ideal Power get to cash flow break-even?

Jeff Christensen: Thank you. The next question is, when will Ideal Power get to cash flow break even?

Thank you.

Speaker #8: Yeah, so for us, it really depends on product and customer mix. Obviously, the pace of adoption is going to influence that. But what it really comes down to is it only takes a few key design wins for us to get to cash flow break even.

So I'll ask the next question, it's about the auto qualification so I'm going to combine some questions that were asked by a couple of different people, but.

Tim Burns: For us, it really depends on product and customer mix. Obviously, the pace of adoption is going to influence that. What it really comes down to is it only takes a few key design wins for us to get to cash flow break even. We are engaged with large global companies that are evaluating our technology for their applications. Landing even a single design win can generate millions or even in excess of $10 million in revenue annually for Ideal Power Inc. It just comes down to, again, which design wins happen at what time and just really the pace of adoption. It will not take us much to get there. We can do it with just solid-state circuit breakers. Obviously, we will have contributions from development programs around electric vehicles, but it is really the industrial markets that will get us there.

What can you repeat and clarify can you can you repeat and clarify our results on automotive testing what is Prequalification mean.

Speaker #8: We're engaged with large global companies that are evaluating our technology for their applications. And we're finding that even a single design win can generate millions or even in excess of $10 million in revenue.

How are you able to make modifications during the testing.

Sure Good question.

When you go through automotive qualification you have to submit many packaged devices from multiple.

Speaker #8: Annually for ideal power. So it just comes down to, again, which design wins happen at what time and just the really the pace of adoption.

Wafer runs so it can't just be Cherry pick the best devices from a particular run you have to show that you've got commonality of performance across several wafer runs and many devices from each of those runs so what.

Speaker #8: But it will not take us much to get there. We can do it with just solid-state circuit breakers. Obviously, we'll have contributions from development programs around electric vehicles, but it's really the industrial markets that will get us there.

Good practice is to actually take devices and take them through those test cycles before you actually.

Speaker #9: Thank you. So, I'll ask the next question. It's about the auto qualification. I'm going to combine some questions that were asked by a couple of different people.

Jeff Christensen: Thank you. I will ask the next question. It is about the auto qualification. I am going to combine some questions that were asked by a couple of different people. What can you repeat and clarify results on automotive testing? What does pre-qualification mean? How are you able to make modifications during the testing?

Do all of the runs for official qualification you can do with a smaller number of devices. It helps you find out are there any issues with your packaging design.

Speaker #9: But what can you repeat and clarify? Can you repeat and clarify results on automotive testing? What is prequalification mean? And how are you able to make modifications during the testing?

Stan maybe humidity or temperature because.

Auto qualification testing is fairly expensive and it takes many many many many devices 100. So a couple of thousand devices to get through it. All so it's really prequalification is to make sure are there any design issues you need to be aware of for the devices are there any areas with the packaging and the.

Speaker #8: Oh, sure. Good question. When you go through automotive qualification, you have to submit many packaged devices from multiple wafer runs. So it can't just be you've cherry-picked the best devices from a particular run.

Dan Brdar: Oh, sure. Good question. When you go through automotive qualification, you have to submit many packaged devices from multiple wafer runs. It cannot just be you have cherry-picked the best devices from a particular run. You have to show that you have got commonality of performance across several wafer runs and many devices from each of those runs. What is a good practice is to actually take devices and take them through those test cycles before you actually do all the runs for official qualification. You can do it with a smaller number of devices. It helps you find out are there any issues with your packaging design that cannot withstand maybe humidity or temperature because auto qualification testing is fairly expensive and it takes many, many, many, many devices, hundreds, well, a couple thousand devices to get through it all.

One thing that we saw that we want to improve was are the devices that we've had package. So far have not had tooling for encapsulation and we think that would be a thing that will make the package even more robust. So we did some things that actually also will help us with a design that will be better suited for on the packaging side for high volume production.

Speaker #8: You have to show that you've got commonality performance across several wafer runs and many devices from each of those runs. So what is a good practice is to actually take devices and take them through those test cycles before you actually do all the runs for official qualification.

In terms of making it easier to assemble so prequalification. Just gives you that early look into any issues you might have so that before you run all the wafers and do all the packaging for the hundreds of devices that go into testing you've already addressed those issues and you can pass with a good degree of confidence.

Speaker #8: You can do it with a smaller number of devices; it helps you find out if there are any issues with your packaging design that can't withstand, maybe, humidity or temperature.

Speaker #8: Because auto qualification testing is fairly expensive and it takes, you know, many, many, many, many devices—hundreds, well, a couple thousand devices—to get through it all.

Thank you.

And then another question regarding the Koala frequently qualification is does that does the process as we move to finalize that qualification, including the Prequalification does that.

Speaker #8: So it's really prequalification is to make sure are there any design issues you need to be aware of for the devices or are there any areas with the packaging?

Dan Brdar: It is really pre-qualification to make sure are there any design issues you need to be aware of for the devices or are there any areas with the packaging? The one thing that we saw that we want to improve was are the devices that we have had packaged so far have not had tooling for encapsulation. We think that would be a thing that will make the package even more robust. We did some things that actually also will help us with a design that will be better suited for on the packaging side for high-volume production in terms of making it easier to assemble.

Speaker #8: And the one thing that we saw that we want to improve was the devices that we've had packaged so far have not had pooling for encapsulation?

Any comment you can make about the inflow from industrial autumn other industrial automotive customers.

Speaker #8: And we think that would be a thing that would make the package even more robust. So we did some things that actually also will help us with a design that will be better suited for on the packaging side for high-volume production.

They were previously hesitant to jump into the new technology.

Yes, so I think overall the more test data that you have that you can share with customers the easier it is to get them to adopt the technology. So obviously, we've generated a lot of test data through our works with still Lantus today, It's <unk>.

Speaker #8: In terms of making it easier to assemble. So prequalification just gives you that early look into any issues you might have so that before you run all the wafers and do all the packaging for the hundreds of devices that go into testing, you've already addressed those issues and you know you can pass with a good degree of confidence.

Dan Brdar: Pre-qualification just gives you that early look into any issues you might have so that before you run all the wafers and do all the packaging for the hundreds of devices that go into testing, you have already addressed those issues and you know you can pass with a good degree of confidence.

Similar here with our first design win customer we have some really great data and how we can share for solid state circuit breaker applications. We have we had no die failures through Prequalification, we can share that data with industrial customers. So we think all of these things will help adoption and then when you get to actual auto qualification I mean that should certainly help because the automotive standards or <unk>.

Speaker #9: Thank you. And another question regarding the qualification is, does the process, as we move to finalize that qualification, including the prequalification, have any comments you can make about the inflow from other industrial automotive customers that were previously hesitant to jump into the new technology?

Jeff Christensen: Thank you. Another question regarding the qualification is, as we move to finalize that qualification, including the pre-qualification, does that, any comment you can make about the inflow from other industrial automotive customers that were previously hesitant to jump into the new technology?

<unk> more stringent that industrial standards is extremes of humidity and temperature you just don't have in the industrial pass. So all of those things should act to really help with adoption and just one comment on that part of why we did this is to generate some of this data because when you do have a new technology.

Speaker #8: Yeah, so I think overall the more test data that you have and that you can share with customers, the easier it is to get them to adopt the technology.

Tim Burns: Yeah, so I think overall the more test data that you have and that you can share with customers, the easier it is to get them to adopt the technology. So obviously, we've generated a lot of test data through our works with Stellantis to date. It's similar here with our first design win customer. We have some really great data now we can share for solid-state circuit breaker applications. We had no die failures through pre-qualification. We can share that data with industrial customers. So we think all of these things will help adoption. Then when you get to actual auto qualification, I mean, that should certainly help because the automotive standards are much more stringent than industrial standards. You have extremes of humidity and temperature you just don't have in the industrial tests. So all of those things should act to really help with adoption.

There is a.

I won't say reluctance, but customers are conservative.

And people that understand Igt's for example understand that the most common reason that lgbt's fail is a fail of the wire bonding thats used to bond the dye to the package.

Speaker #8: So obviously we've generated a lot of test data through our work with Stellantis to date. It's similar here with our first design win customer.

Speaker #8: We have some really great data now that we can share for solid-state circuit breaker applications. We have had no die failures through prequalification. We can share that data with industrial customers.

Since we don't use wire bonding, we have a different approach in terms of higher package comes together, we wanted to generate the data that showed that not only do we passed the 15000 power cycles needed to meet auto qualification we kept Brendan.

Speaker #8: So we think all of these things will help adoption. And then when you get to actual auto qualification, I mean, that should certainly help because the automotive standards are much more stringent than industrial standards.

And to be able to go to those customers and say not only do we pass that criteria. We've passed 50000 site power cycles without a failure. It really helps with the technical customers that youre working with to be comfortable that device is actually ready for adoption for their application.

Speaker #8: You have extremes of humidity and temperature you just don't have in the industrial tests. So all of those things should act to really help with adoption.

Speaker #9: And And just one comment on that. Part of why you know we did this is to generate some of this data because when you do have a new technology, you know, there is a I won't say reluctance, but customers are conservative.

Dan Brdar: Just one comment on that. Part of why we did this is to generate some of this data because when you do have a new technology, there is a, I will not say reluctance, but customers are conservative. People that understand IGBTs, for example, understand that the most common reason that IGBTs fail is a fail of the wire bonding that is used to bond the die to the package. Since we do not use wire bonding, we have a different approach in terms of how our package comes together. We wanted to generate the data that showed that not only did we pass the 15,000 power cycles needed to meet auto qualification, we kept running them. To be able to go to those customers and say, not only did we pass that criteria, we have passed 50,000 power cycles without a failure.

Thank you.

There are many submitted questions from investors and thanks for that please click on ask a question in this conference call online webcast portal to submit your question.

Speaker #9: And people that understand IGBTs, for example, understand that the most common reason that IGBTs fail is a fail of the wire bonding that's used to bond the die to the package.

The next question is there was submitted as you've definitely shown a lot of the commercial progress the stock price seems to be lagging. The progress you made what do you think the street is underappreciated or overlooking at this point.

Speaker #9: Since we don't use wire bonding, we have a different approach in terms of how our package comes together. We wanted to generate the data that showed that not only do we pass the 15,000 power cycles needed to meet automotive qualification, we kept running them.

Yes, I would say given the macro trends that are out there things like renewable energy EV adoption and proliferation of data centers.

Speaker #9: And to be able to go to those customers and say, not only did we pass that criteria, we've passed 50,000 power cycles without a failure.

I mean, they're really driving the increasing use of power semiconductors.

Speaker #9: It really helps with the technical customers that you're working with to be comfortable that devices actually are ready for adoption for their application. Thank you.

Dan Brdar: It really helps with the technical customers that you are working with to be comfortable that the device is actually ready for adoption for their application.

So we think we're commercializing our technology at a great time.

We certainly have near term opportunities to secure agreements with multiple large global companies.

Beyond just our first design win customers to Lantus, we bring a solution in silicon.

Jeff Christensen: Thank you. There are many submitted questions from investors, and thanks for that. Please click on Ask a Question in this conference call online webcast portal to submit your question. The next question that was submitted is you've definitely shown a lot of commercial progress. The stock price seems to be lagging the progress you've made. What do you think the Street is underappreciating or overlooking at this point?

Speaker #9: There are many submitted questions from investors and thanks for that. Please click on ask a question in this conference call online webcast portal to submit your question.

We provide significant performance advantages over conventional technologies, it's enabling for applications like solid state circuit breakers and <unk>.

Speaker #9: The next question is, there was submitted as, you've definitely shown a lot of the commercial progress. The stock price seems to be lagging the progress you've made.

So while we're not going to sit here and speculate on why the street is not valuing really valuing the enormous opportunity ahead of us.

Speaker #9: What do you think the street is underappreciating or overlooking at this point?

We would expect that to change as we continue to announce some of these design wins, some more custom development agreements and we start showing revenue here in the coming quarters. So for US we can't focus on what our specific stock prices on a given day or what the mark is what's in favor or not with the market, it's really focusing on executing and getting those commercial announcements out and we.

Speaker #8: Yeah, I would say, given the macro trends that are out there—things like renewable energy, EV adoption, and the proliferation of data centers—I mean, they're really driving the increasing use of power semiconductors.

Tim Burns: I would say given the macro trends that are out there, things like renewable energy, EV adoption, proliferation of data centers, they are really driving the increasing use of power semiconductors. So we think we are commercializing our technology at a great time. We certainly have near-term opportunities to secure agreements with multiple large global companies beyond just our first design win customer in Stellantis. We bring a solution in silicon that provides significant performance advantages over conventional technologies. It is enabling for applications like solid-state circuit breakers and EV contactors. While we are not going to sit here and speculate on why the street is not really valuing the enormous opportunity ahead of us, we would expect that to change as we continue to announce some of these design wins, some more custom development agreements, and we start showing revenue here in the coming quarters.

Speaker #8: So we think we're commercializing our technology at a great time. We certainly have near-term opportunities to secure agreements with multiple large global companies. Beyond just our first design win customer, Stellantis, we bring a solution in silicon that provides significant performance advantages over conventional technologies.

Then we will take care of itself.

Thank you.

The next question is which market do you see that will contribute the most to the company's initial revenue ramp.

It's clearly going to be the sulphate circuit breaker market. We've got so many companies that are engaged with US now we've got the first design win.

Speaker #8: It's enabling for applications like solid-state circuit breakers and EV contactors. So while we're not going to sit here and speculate on why the street is not valuing, really valuing, the enormous opportunity ahead of us, we would expect that to change as we continue to announce some of these design wins, some more custom development agreements, and we start showing revenue here in the coming quarters.

With a customer we know that they've got other plans for other products.

And Fortunately the design cycles on industrial products are significantly shorter than what you see for getting through the long design cycles on the automotive side. So our focus is really going to remain driving the opportunities and the sulphate circuit breaker market the closure because.

Speaker #8: So for us, we can't focus on what our specific stock price is on a given day or what the market is, what's in favor or not with the market.

Tim Burns: For us, we cannot focus on what our specific stock price is on a given day or what the market is, what is in favor or not with the market. It is really focusing on executing and getting those commercial announcements out, and we expect then it will take care of itself.

Once the first.

Once the first company moves forward.

Speaker #8: It's really focusing on executing and getting those commercial announcements out. And we expect then it'll take care of itself.

No longer in the first person to do something so I think it kind of take some of the pressure off some of the other customer teams to say okay.

People have already been through this evaluation I am not missing anything and I am comfortable with making sure I have got a competing product.

Speaker #9: Thank you. The next submitted question is, which market do you see that will contribute the most to the company's initial revenue ramp?

Jeff Christensen: Thank you. The next submitted question is which market do you see that will contribute the most to the company's initial revenue ramp?

Thank you.

Do you think the next to me. The question is do you think we will be.

Speaker #8: It's clearly going to be the solid-state circuit breaker market. We've got so many companies that are engaged with us now. We've got the first design win.

Dan Brdar: is clearly going to be the solid-state circuit breaker market. We have got so many companies that are engaged with us now. We have got the first design win with a customer. We know that they have got other plans for other products. Fortunately, the design cycles on industrial products are significantly shorter than what you see for getting through the long design cycles on the automotive side. Our focus is really going to remain driving the opportunities in the solid-state circuit breaker market to closure because, once the first company moves forward, you are no longer the first person.

Our most successful markets could be outside the United States.

Speaker #8: With a customer we know that they've got other plans for other products. And fortunately, the design cycles on industrial products are significantly shorter than what you see for getting through the long design cycles on the automotive side.

Especially given the recent shift in the administration away from Evs.

I think thats, certainly shaping up to be the case here.

Asia in particular tends to adopt new technologies quicker. The first design win that we've got is an Asian customer, we're seeing multiple Asian customers that we're working with even in the tier ones that we're working with now.

Speaker #8: So, you know, our focus is really going to remain driving the opportunities in the solid-state circuit breaker market to closure. Because once the first company moves forward, you know, you're no longer the first person to do something.

I mean, it's a global opportunity but.

I think we will see much of what we are doing on the circuit breaker side and on the EV side start to materialize and opportunities outside of the U S. First and then in general.

Speaker #8: So, I think it kind of takes some of the pressure off some of the other customer teams to say, okay, people have already been through this evaluation.

Dan Brdar: do something. So, I think it kind of takes some of the pressure off some of the other customer teams to say, "Okay, people have already been through this evaluation. I am not missing anything, and I am comfortable with making sure I have got a competing product.

Speaker #8: I'm not missing anything and I'm comfortable with making sure I've got a competing product.

U S companies seem to move more slowly than what we see for a lot of the Asian companies, we're working with which is fine.

Speaker #9: Thank you. Do you think the next submitted question is, do you think we will be our most successful markets could be outside the United States?

Kelly: Thank you. The next submitted question is, do you think our most successful markets could be outside the United States, especially given the recent shift in the administration away from EVs?

It will come in behind it with their own version of the products.

It's a good insightful question here I think we will see the growth first outside of the U S.

Speaker #9: Especially given the recent shift in the administration away from EVs?

Speaker #8: I think that's certainly shaping up to be the case here. You know, Asia in particular tends to adopt new technologies quicker. The first design win that we've got is an Asian customer.

Dan Brdar: I think that is certainly shaping up to be the case here. Asia in particular tends to adopt new technologies quicker. The first design win that we have got is an Asian customer. We are seeing multiple Asian customers that we are working with, even in the tier ones that we are working with now. EVs are, I mean, it is a global opportunity, but I think we will see much of what we are doing on the circuit breaker side and on the EV side start to materialize in opportunities outside of the U.S. first. Then in general, U.S. companies seem to move more slowly than what we see for a lot of the Asian companies we are working with, which is fine. It will just, they will come in behind it with their own version of the products. But it is a good, insightful questionnaire.

Okay. Thank you.

What is the cost of the next question is what are the what are the cost of four devices in a traditional IGT the b Tran replaces versus the cost of the B Tran.

Speaker #8: We're seeing multiple Asian customers that we're working with, even in the tier ones, that we're working with now. EVs are, I mean, it's a global opportunity.

Yes.

Rail of B Tran are single B Tran should be in about a 10 or 20% premium to a single IGT.

So if youre working in a bidirectional application.

Significant cost savings because you need to include <unk> and also have to blocking diodes in that solution. So <unk> is actually a much less expensive alternative in terms of first cost.

And also if you look at lifetime cost. It's also obviously going to help because you're going to have smaller OEM products, you can have west surface starting to dissipate west.

Dan Brdar: I think we will see the growth first outside of the U.S.

West complex thermal management systems overall smaller OEM product designs, just because there is lower losses.

Kelly: Okay, thank you. The next submitted question is, what are the costs of four devices in a traditional IGBT that BTRAN replaces versus the cost of the BTRAN?

So it's really both not just a first cost advantage when youre talking about bidirectional applications, but it's also a lifetime cost advantage as well.

Dan Brdar: At scale, a BTRAN, a single BTRAN, should be at about a 10% or 20% premium to a single IGBT. If you are looking at a bidirectional application, it is significant cost savings because you need to include two IGBTs and also have two blocking diodes in that solution. BTRAN is actually a much less expensive alternative in terms of first cost. It also, if you look at lifetime cost, is also obviously going to help because you are going to have smaller OEM products. You can have less surface area to dissipate heat, less complex thermal management systems, overall smaller OEM product designs just because there are lower losses. It is really both not just a first cost advantage when you are talking about bidirectional applications, but it is also a lifetime cost advantage as well.

Thank you.

The next question is of the companies you are currently working with how many of you.

Are you continuing to have engagement with in the last six months.

The other quick last 12 months, so any one of those time frames.

Jeff could you repeat that.

<unk>, what youre asking yes, so the companies that you've given you've you've said Youre currently working youre working with you've worked with.

How many have you how many are you engaged with have you engaged with in the last six months or.

Or 12 months.

I guess the question is is it all of them are.

The question I think is is it all of them are any of them are missing now.

Yes.

No. It's a good thing.

Kelly: Thank you. The next submitted question is, of the companies you are currently working with, how many of you, you know, are you continuing to have engagement with in the last six months or in the other question, the last 12 months? So any one of those time frames?

Some of them, particularly large companies move slowly, but all the companies that we have been engaged with we continue to be engaged with.

Okay great.

And then.

The next question is there a recent marketing literature about a new technology called an insulated gate transistor oscillator for IGT.

Dan Brdar: Jeff, can you repeat that? It is unclear what you are asking there.

Kelly: Yeah, so of the companies that you've said you're currently working with, you've worked with, how many are you engaged with, have you engaged with in the last six months or 12 months? Is it all of them? I guess the question is, is it all of them or any of them missing now?

With this technology be directly competitive to B Tran.

I did look at that we had our guys look at it too there's really not much technical data available theres, no data sheets or anything for the product, but based on our review of that it looks like it's an incremental improvement to our unit directional IGT.

Also not clear how it would apply to the overall <unk> market because the things that were done there will certainly create challenges to be able to reach both high voltage and high current it's part of why you don't see MOSFET to use for high voltage and high current incorporate some of the same technology that limits.

Dan Brdar: No one's missing. Some of them, particularly large companies, move slowly, but all the companies that we have been engaged with, we continue to be engaged with.

Kelly: Okay, great. The next submitted question is, there is recent marketing literature about a new technology called an insulated gate transistor oscillator or IGTO. Would this technology be directly competitive to BTRAN?

<unk> can go but at the end of the day, it's a variant of an IGT.

So you would still need four devices payers of this improved IGT and diodes to make a bidirectional switch and as a result, the convection losses would be much higher than what you would get using a single B Tran.

Dan Brdar: I did look at that. We had our guys look at it too. There is really not much technical data available. There are no data sheets or anything for the product, but based on our review of it, it looks like it is an incremental improvement to a unidirectional IGBT. It is also not clear how it would apply to the overall IGBT market because the things that were done there will certainly create challenges to be able to reach both high voltage and high current. It is part of why you do not see MOSFETs used for high voltage and high current. It incorporates some of the same technology that limits where MOSFETs can go. At the end of the day, it is a variant of an IGBT. You would still need four devices, pairs of this improved IGBT and diodes to make a bidirectional switch.

Thank you.

The next question is please update us on the future expectations with large power global management companies that Youre working with.

So.

Again, I am not sure I understand the question, but on the.

The companies, who are looking at power management market leaders, there and really looking at things right now like solid state circuit breakers right. So there hasnt been a change necessarily in the last few months I mean, it's obviously, we are continuing to educate some of those companies that are evaluating our technology. They have in the lab. So we're continued continuing to make progress.

Their expectations haven't changed I would say the one thing maybe in that regard is we had some potential customers that are a little bit surprised.

Dan Brdar: As a result, the conduction losses would be much higher than what you would get using a single BTRAN.

Silicon carbide doesn't perform as well on that application is that they may have expected to see because it's considered a high performance product that.

Kelly: Thank you. The next submitted question is, please update us on the future expectations with large power global management companies that you are working with.

The reality is conduction losses are not the strength of.

Silicon carbide MOSFET, so that's where our technology has a significant advantage in a lower cost point and silicon carbide, because it's not just silicon is cheaper and silicon carbide. It's also that we really outperform silicon carbide and then application significantly.

Dan Brdar: I am not sure I understand the question, but on the companies that we are looking at, power management market leaders, they are really looking at things right now like solid-state circuit breakers. There has not been a change necessarily in the last few months. We are obviously continuing to educate some of those companies. They are evaluating our technology. They have it in the lab. We are continuing to make progress, but their expectations have not changed. I would say the one thing maybe in that regard is we have had some potential customers that are a little bit surprised that silicon carbide does not perform as well in that application as they may have expected it to because it is considered a high-performance product. The reality is conduction losses are not the strength of silicon carbide MOSFETs.

The companies, who are looking at power management market leaders, they're really looking at things right now like solid state circuit breakers right. So there hasnt been a change necessarily in the last few months I mean, it's obviously, we are continuing to educate some of those companies are evaluating our technology. They have in the lab. So we're continued continuing to make progress.

Thank you.

<unk> concludes our question and answer session I would now like to hand, the call back over to Dan <unk> for closing remarks.

I just want to thank everybody for participating in today's call and for the really good questions. We look forward to sharing detrain commercial announcements before our next update call and operator, you may end the call.

Their expectations haven't changed I would say the one thing maybe in that regard is we had some potential customers that are a little bit surprised.

Thank you. This concludes today's conference all parties may disconnect and have a great day.

Silicon carbide doesn't perform as well in that application is that they may have expected to see because it's considered a high performance product that.

The reality is conduction losses are not the strength of <unk>.

Silicon carbide MOSFET, so that's where our technology has a significant advantage in a lower cost point and silicon carbide, because it's not just silicon is cheaper and silicon carbide. It's also that we really outperform silicon carbide in that application significantly.

Dan Brdar: That is where our technology has a significant advantage at a lower cost point than silicon carbide because it is not just that silicon is cheaper than silicon carbide. It is also that we really outperform silicon carbide in that application significantly.

Thank you that concludes our question and answer session I would now like to hand, the call back over to Dan <unk> for closing remarks.

Kelly: Thank you. That concludes our question and answer session. I would now like to hand the call back over to Dan Brdar for closing remarks.

Dan Brdar: I just want to thank everybody for participating in today's call and for the really good questions. We look forward to sharing B-TRAN commercial announcements before our next update call. The operator, you may end the call.

I just want to thank everybody for participating in today's call and for the really good questions. We look forward to sharing detrain commercial announcements before our next update call and operator, you may end the call.

Thank you. This concludes today's conference all parties may disconnect and have a great day.

Operator: Thank you. This concludes today's conference. All parties may disconnect and have a great day.