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William Li: All right. Let's get going. My name is William Santana Li, Chairman and CEO of Knightscope. I'm here with our Trustee and CFO, Apoorv Dwivedi. We're going to do a little bit of a different format today. First, an announcement regarding this Thursday, then Apoorv will go through the 2025 financial results that we filed on Form 10-K. And then we aggregated a bunch of questions that have come in, including from the 3 equity research analysts, and we'll try to put that in a much more efficient approach to answering questions. So with that, I'll start it off with -- we're going to have our first annual Autonomous Security Force Day and also celebrate our 13th year anniversary in business. I often like to say we're here in Silicon Valley. There are 22,000 start-ups here. 95% of them failed despite having unbelievable ambition, financing and the like. And for us to be able to start the company, get it funded, grow it, take it public, buy 2 companies and still be at it 13 years later is certainly a testament to the relentless nature of the Knightscope team. And I couldn't be more excited about our future as we build out the nation's first autonomous security force. So this Thursday, we're going to have several VIP private sessions for previews as to what we're building during 2026 and intentionally to get some market feedback, and then we're going to have an open house in the evening here in Sunnyvale at our new headquarters. And there's rumors flying around, there's going to be an ice cream truck and a bunch of other stuff. So hopefully, if you have an RSVP, please be sure to check our social media channels or newsletters, and you can grab a spot there. So that will be at 6:00 p.m. this Thursday. All right. With that, I'll turn it over to Apoorv, who will walk you through history, meaning 2025, and kind of what happened then. Then we'll talk a little bit about the acquisition and the questions and why all the excitement for 2026 and beyond. So with that, Apoorv? Apoorv Dwivedi: Thanks, Bill. Good afternoon, everyone, and thank you for joining. I will begin with a review of our financial performance, first for the Q4, and then the full year 2025, followed by commentary on liquidity and capital strategy. With that, let's jump right in. Q1 -- sorry, Q4 revenues declined approximately 9.8% year-over-year [indiscernible] product shipments, primarily driven by supply chain constraints which we've talked about in the past that resulted in delays of ECD product deliveries. The services business remained materially unchanged. Gross loss of $1.6 million reflects ongoing margin pressure driven by elevated material and other input costs for production and by under-absorption of fixed manufacturing overhead. These factors were consistent with full year trends and underscore the need for improved scale and supply chain normalization to drive margin recovery for the company. Our operating expenses of $9.7 million in the quarter increased approximately $3.8 million year-over-year, driven by higher investment in both R&D and SG&A functions. R&D spending reflects the company's deep commitment to continued advancement of our next-generation platforms such as the K7, the K1 Capsule and the Signals software. SG&A increased primarily due to targeted investment in talent and organizational capabilities, which are critical to positioning the company for future scale and growth. Overall, the cost structure reflects a deliberate investment phase to support long-term expansion. Q4 2025 net loss of $11 million widened versus prior year due to a combination of lower revenue, continued gross margin pressure and sustained operating investment. The quarter reflects a near-term financial impact of scaling the platform, while revenue growth remains uneven. With that, moving on to full year. 2025 full year revenue grew approximately 4.9% to $11.3 million, driven primarily by the services revenue expansion in both the Machine-as-a-Service ASR offerings and our full service maintenance plans on the ECD installed base. However, growth in the product revenue was modest due to the already discussed supply chain-related constraints and shipment timing issues discussed earlier. [Audio Gap] increased by approximately $1.1 million versus prior year, reflecting higher bill of material cost [indiscernible] and production variability. The lack of scale continues to pressure unit economics, reinforcing the importance of driving higher volume and utilization as we continue to grow. Full year operating expenses increased approximately 12.1% year-over-year, driven primarily by a $5.4 million increase in R&D investment compared to 2024. This reflects continued focus on platform development and next-generation products to support future scalability. The increase was partially offset by cost savings in SG&A expenses of approximately $1.8 million as well as the absence of $0.5 million in restructuring charges incurred in the prior year. This demonstrates progress in optimizing the company's cost structure while investing in growth. Full year loss increased to approximately $33.8 million. This reflects a combination of modest revenue growth, continued gross margin pressure and elevated investment levels, consistent with the company transitioning to growth. Weighted average loss per share of $4 decreased by approximately 63.5% year-over-year. Finally, from a balance sheet and cash flow perspective, we used approximately $30.3 million in operating activities during 2025, reflecting a continued investment [indiscernible] organizational scale. Importantly, we raised $42.2 million through financing activities, allowing us to strengthen our balance sheet and support ongoing operations. We ended [indiscernible] a significant increase from the $11.1 million [indiscernible] 83% year-over-year improvement in cash position. Looking ahead, our focus remains actively on managing liquidity through a combination of capital markets, access, operational discipline and strategic initiatives designed to improve cash generation over time. In summary, 2025 was a year of foundational investment. We strengthened the liquidity position, continued to grow revenue modestly and made critical progress in evolving our business model towards a more integrated and scalable platform. While near-term financial performance reflects that investment phase, we believe the combination of our technology, software and now human-enabled delivery capabilities position Knightscope to pursue larger opportunities and improve financial performance over time. With that, I'll turn the call over to Bill as we go through the questions provided by our analysts. William Li: Yes. Apoorv, I think there's some connectivity issues. So if you want to kill the PowerPoint and turn your video back on would be great. So while he does that, let me put things in context a little bit. We've been at this problem and tackling this issue of trying to see if we can make the U.S. the safest country in the world, utilizing technology, AI, robotics, electric vehicle technology, telecommunications, the whole gamut. And after working on the problem for over a decade, it's become obvious to me that the nations addicted to CCTV cameras, security guards and video management systems running on Windows and -- are unwilling to change or willing to change at a snail's pace. And so we wanted to try to be helpful to our clients to build a managed service provider that can take a lot of the technological burden, complexity regarding the technology itself, installation, IT, cybersecurity, keeping things up to date, making sure it's all operating off of a Chief Security Officer's hands and come with -- go to market with a complete full solution instead of having this disparate set of widgets all over the place that don't talk to each other and the like. And an accelerant and catalyst to do that was the acquisition of Event Risk that we recently announced. And that's a transformative and strategic acquisition so that we can go to market as a managed service provider to actually fix the client's problems instead of doing the mix and match. And that's one of the reasons we're extremely excited about our future. We've been at this for a very long time. I've never been this excited and kid around with the team here. It's like I couldn't sleep before because all kinds of problems and stuff. Now I can't sleep because I'm too excited. So the future looks genuinely bright. We have a lot of contracts signed, and just focused very much on execution, both operationally and technologically. We've got a lot of new technologies that we're developing, and we're going to showcase some of that this Thursday. And the coming years are going to create literally a new kind of entity that has never existed before, a managed service provider that can be that -- a nation's first autonomous security force. William Li: So with that, we got a bunch of questions in from a variety of folks, including our research analysts. So Apoorv, if you want to read off the first easy question, we can get on it. Apoorv Dwivedi: Absolutely. All these questions are easy. William Li: Excellent. Apoorv Dwivedi: The first one was basically, can you provide visibility on timing of supply chain issues clearing up? And basically, are any supply chain disruptions anticipated due to all the global conflicts happening across the Middle East and Europe? William Li: I think there's volatility prior in the system, still in the system, and I would forecast going forward, we'll continue that volatility. So we need to better manage the volatility. Some of it has to do with tariffs, geopolitical instability, et cetera. Some of it has to do with an end-of-life component. And some of it has nothing to do with, hey, can you get the NVIDIA chip? It's the one specific resistor or button or what have you that ties up the whole thing, and it's not one strategic component. So this continues to be a whack-a-mole kind of problem that we're working through. We now have a supply chain manager and a team that's proactively working the issue. So we're starting to plan better, buy in advance, replace components, outright replace suppliers if needed. But to be on a cautionary note, we've had our struggles. I think we can try to minimize the damage, but a lot of it is not necessarily directly in our control. So we're working through the problem. I don't know if Apoorv, you had a different take on that? Apoorv Dwivedi: No, I agree, Bill. I think the volatility is driven primarily by macro events. And I think we're doing a lot of things internally to mitigate as much as possible, right? The broader electronics market, in particular, continues to be volatile. There's longer lead times, tighter availability in items like compute modules, networking hardware, memory, et cetera. So I think those are some things that are just outside of control, or controlled directly, but we are putting in place mitigation steps. So things like making sure we're not relying on single source, expanding our relationships to multiple vendors, making sure that we identify items that have the highest risk and making sure that we have enough of those in stock, which is an investment in inventory. So there's a lot we're doing, and we've been able to learn over the last few months that we're working through. I would say keeping supply chain and production in sync is important for us, and we'll continue to adjust as things progress. We do expect that versus prior year, this year, we'll have slightly better, if not much better outcomes as we continue to invest in supply chain and our relationships. William Li: All right. Next. Apoorv Dwivedi: Next question was on the move. Is the move to the Sunnyvale facility complete and up to operational efficiency? William Li: Mostly. Mostly done. We have a little bit of a challenging landlord situation with less flexibility than we want, but we're working through it. One of the reasons we're having this Autonomous Security Force Day here is to showcase the progress that we've made since we've moved into the building. Still a lot more that we want to complete, but things are looking pretty good. I will confess that some of us are nervous that we're going to run out of space a lot sooner than we were planning, but that's a good problem to have in the coming quarters. Apoorv Dwivedi: Next one is on the recent acquisition. Following the Event Risk acquisition, can you give us an estimate of how much your potential market has expanded? Do you have an estimate around the new TAM? William Li: I've been wanting to do an acquisition like this for 5 years. So the TAM that we actually put in the investor presentation, if you haven't seen the latest one, it's at knightscope.com/america. That $230 billion there is the TAM that we're going after and remains unchanged because this was kind of the overall plan. I think this is an unlock or a catalyst for us to be able to go to market much more efficiently and much more aggressively. So I think one of the enticing things that's going to happen in the coming quarters is just to see genuine accelerated growth versus the less than optimal growth that we've seen to date. And the idea is to be able to -- maybe 2 different steps here. One, we have existing clients between the acquisition and our legacy clients. And there's a significant amount of opportunity to cross-sell technology or security agents back and forth. So there's that kind of literal synergy. And then there's the -- once that's done, let's go to market together in specific verticals for us to be able to, again, bring a total solution. So the TAM doesn't change the amount that we can go grab after the TAM and do it in an accelerated fashion is, I think, dramatically increased. We're -- if you haven't heard, we're -- the team is well over 400 employees now, and we're in a pretty serious pace of growth. Apoorv Dwivedi: Yes, I agree, Bill. I think the way to think about it is not whether the TAM has increased, but more our ability to penetrate that and grab a larger piece of that market share faster is definitely accelerated. We've talked about this in the past where we've said, generally, when the RFPs and RFQs are out for security guards only, we were, for example, excluded from those because we don't have guarding services. We don't have humans. We're only technology. And then when we would try to go after technology, only RFPs and RFQs, again, we didn't have a full-on solution. So it kind of limited us a little bit. Now with the acquisition and being able to go to market in a way that allows us to provide that fully managed services or fully managed security services, it just allows us to go to market faster. William Li: Yes. And a little bit more context for those newer to that conversation. There are, I think, rough numbers, more than 6,000 guarding companies in the U.S. that maybe have more than 100 employees, plus or minus. Our friends over at Lake Street helped us vet the first 100, and we came across Event Risk and Eric Rose. And a lot of special things about why we got so animated and excited. Having a combination of a serious operator who's been more than around the block, has been able to work in large established guarding companies, help train the Navy SEALS, Marine, law enforcement and been able to grow and bootstrap an entire company unto himself with the team was an accomplishment in and of itself. If you add the growth, the continued double-digit growth that he's been able to enjoy over the past few years is another important bullet point. But another one is very interesting. The industry is 100% to 400% employee turnover rates. The Knightscope Security Force is at 6%, very laser-focused on recruiting, on recruiting the right people, providing them health benefits, providing them the appropriate training. And in our case, we're going to be adding a few more things. We -- the Board of Directors kindly approved stock options for the entire team so we can also attract more people and keep the people employed and engaged and have them be part of the winning solution here. And we're working on some new technologies to add to those security agents. So in the future, you'll be hearing us talk about ASAs or augmented security agents that really don't exist today. And that allows all of that, combined with the stationary technology, the autonomous robotic technology, the augmented security agents, all having that data fed into our upcoming new Signals software platform. And our remote monitoring team is going to give us an unprecedented capability to properly secure a facility. And our security analyst that's remotely operating then now has machines to do things autonomously. They can escalate things to a different risk level to have some humans involved. And then there is a response element, both armed and unarmed. And that's unprecedented in the industry. And one of the reasons why we're in good spirits and more than rather excited about the future. Apoorv Dwivedi: Question on the sales forces and how we mash them together. Two questions, and I'll combine them here. What is the overall sales pipeline expected for the ASR, the ECD and the Event Risk, or now known as the Knightscope Security Force business? And then what is the timing around being able to sell legacy Knightscope with the Knightscope Security Force services together? William Li: I'm going to want Wall Street, media and our own team internally to really stop focusing on selling widgets. How many of these units did you sell? How many of this standard stationary device did you sell? What we really need to focus on is aggregate total revenue growth of providing an actual solution to our clients. And that is the overall strategy for us to deliver a managed service provider and try to focus on fixing the client's problem, improving outcomes, improving quality, improving service levels. And hopefully, there's some cost reductions in there for a client depending on the location. But overall, manage this much, much better that's being done today and not focused on did you sell an agent or 10 agents or 100 or 300 agents with that contract? Or did you sell -- the important part is, are we fixing the client's problems. And that is a bit different and why the change in strategy is to force that change in adoption that's needed across the country. Most humans and most large organizations don't want to change. I told the Pentagon, DHS and Congress the same thing. This whole country does not want to change. Even when I'm sitting here, Silicon Valley is a bunch of engineers. Like you hand them electricity, fire and the Internet. In terms of AI, it's like, no, no, no, I'm good. I know what I'm doing. Like, I don't know. I think we need to find a different path to make those changes and give some relief to the chief security officers. If you really put yourself in their shoes in this day and age, it was different 30 years ago. But when -- if you're ex law enforcement, ex military, you're here to secure a property, that's kind of your go-to skill mix. In this day and age, hey, can you please talk to me about 4G and 5G versus private LTE versus industrial Wi-Fi? And then I don't know about the drone. And then is this cybersecurity compliant, but did the DoD accept the Impact Level 5? Or is it a FedRAMP thing? And you want the robot to work with the guard, and it's just -- it's too much. You're asking a CSO to be the chief technology officer, the chief information officer, the chief information security officer, the head of facilities, purchasing and everything else. And then we're wondering why it's not working and it costs too much money. So I really want the whole team, external and internal, to be focused on top line revenue and bottom line profitability as we get there. Apoorv Dwivedi: From a modeling perspective, will you be breaking Event Risk into its own reporting line item? Or will it be included within the services revenue? I can answer that one, Bill. Really, TBD. We're assessing the right way to reflect the Knightscope Security Force revenues and line items in the business. Most likely, though, we do consider it to be a service, and we would want to include that in the services line. However, there are some GAAP rules that we're evaluating along with our auditors to make sure that we not only provide the right level of disclosures, but the right level of visibility as we go forth and draft up our 10-Qs and 10-Ks. William Li: And I don't -- I think we missed part of the answer to the other question. The pipeline without [indiscernible] is rather healthy, let's put it that way. And we're intentionally focused on execution as primary drivers. So changing the recruiting profile of the team, setting the standards of the team differently, changing processes, figuring out appropriate uses of AI implementation for specific areas, building new technologies, everything is very much focused around execution because the pipeline is rather healthy. Apoorv Dwivedi: Absolutely. Next question is, what -- will you be announcing the contracts of the Knightscope Security Force when they are won? William Li: I think that's also a TBD. As we mentioned during the sit down with Eric, if you haven't seen the interview, go on our YouTube channel. We want to take a thoughtful balance-of-the-year process to think through the branding, through IT, through HR, through finance, accounting, audit, technologies, et cetera, instead of rushing decisions. So that also applies to press releases, public relations, external affairs, government relations and investor relations. So something we'll ponder and think through as the company continues to mature as a premium managed service provider. Apoorv Dwivedi: Next question kind of dovetails right into that, Bill. Can you provide a time line for integration? How is the process so far? And are there any notable items to call out? William Li: So this is probably my -- I've lost track, 24th, 25th or 26th acquisition. And as I often say, doing the deal is the easy part for those that have been around the block. It may not seem that way for people that participate, but it is actually the easy part. The hard part is day 1 after you close the transaction. I will say it has gone a lot more smoothly than all of us expected. We have willing folks who want to work together, who want to make changes, who need additional support and changes. But as I just stated, the integration plan is try to get everything sorted in a reasonable time frame over the balance of the year. In terms of priorities, let's call it, finance, accounting, audit-related stuff first, probably dovetail HR and IT kind of the same time. And then the last is the go-to-market, branding, marketing and that sort of thing. We are planning to be at GSX in Atlanta in September, so that you'll start getting a good -- more than a sneak peek then as to how the integration is going. Apoorv Dwivedi: Yes, Bill, I think being super deliberate in how we merge 2 organizations, primarily around culture, around go-to-market strategy and obviously, the back-end support needed to support the growth of the combined organization are things that we're looking at. From a time line perspective, I think it will take a couple of quarters, if not more, for us to kind of get our hands around how we want to move forward as a combined company. We are looking at internally, some of the things you talked about. For example, finance first, just integrating the finance functions, then looking at HR, IT. And then finally, as we move into the client-focused or public-focused phase of the combined company. Any outlook for any more M&A over the next year? William Li: So we continue to look for accretive opportunities, typically probably around 2 or 3 subjects. One is on the technology side. Again, living here in Silicon Valley, there's always some interesting items that might be easier to buy than to build. So we continue to look on the call -- just call technology front. Those often may not be top line revenue focused. It's more the nugget of talent or technology that we want. Another would be on the remote monitoring side of things. So we want to continue to build up the RTX capabilities as we build out the security force. So we're actively looking there. I think the growth on the security force itself is, as I said, healthy. So I'm not sure we want to do a bolt-on just yet, but we have a lot of activity going on. So M&A, open for business, but I always want to make sure it's going to be helpful for our shareholders and the overall growth of the company and be mindful and careful and make sure we get a good deal. Apoorv Dwivedi: Last question, Bill. What are some key milestones should investors watch out for in 2026? William Li: I can start. Maybe you want to finish, but I think the 10-Q that we filed in the second quarter that will reflect part of the activity from the security force side of things would be, one, the following 10-Q and then the following 10-Q. So I think keeping an eye on the regulatory filings starting mid-May would be important. Maybe there are folks in the audience that don't realize this. But usually, when you make an acquisition, there's like this 71-day rule, I'm sure I'm going to screw this up. But within 71 days, you need to file the kind of overall impact. So we're working on that. And so that will occur in the coming weeks, probably in the May time frame. So that, to us, is going to be really important because that will show is the strategy working or not and is the company growing and heading towards profitability. Second, technology. This all gets very exciting if you can have a pretty serious competitive advantage in a very large marketplace with capabilities that no one else can do. So we probably want to keep an eye on did the beta prototype testing actually occur in the second half of the year for the K7, which we're spending a lot of time on. And -- when the Board is excited, the management team is excited, the team is excited, our suppliers and vendors are excited. And all the recruits that we're hiring -- oh, by the way, go to knightscope.com/careers, we've got a lot of openings -- are all excited and dying to work on the K7. Like, hey, maybe we're on to something. So keeping an eye on the K7 progress, important. On the stationary side, we're unveiling the K1 Capsule and Super Tower here this Thursday. So progress there is important. And then also on the Signals platform. I think those are 3 that we can publicly talk about are things to keep an eye on. So basically, 2 answers to the question, like is Knightscope doing well or not? Is the revenue going up? Yes or no, and not based on press releases or anything else. I want to see the regulatory filing. Are the numbers going up, yes or no? And then are you making serious progress on technology development that will give us a sustainable competitive advantage. I think those probably should be the 2 key items to keep an eye on, unless Apoorv, you've got another one? Apoorv Dwivedi: No, Bill, I think at the end of the day, it comes out to improvements in execution and how does that reflect in the company's financials and the way we are perceived in the market by our investors and customers and clients and vendors. It's really our ability to go out and grow revenue. And with the combined company, we have a theory that this will actually accelerate this. So what -- look out for the second half to see some of that proof. Obviously, product launches and commercialization of our new product development that the team is working really hard on, that's going to be important. And overall, just watching -- hopefully, as we do these things the right way over the next few quarters, especially going into the latter half of 2026 and 2027, we should see improvements across all of our P&L line items, both on the revenue side as well as the cost mitigation side. And that's going to be the sum of all things we do from an execution perspective. If we do that right, it will show up in the financials. William Li: And then I've gotten a lot of questions asynchronously here on, hey, what does Bill and Apoorv and Mercedes know about running a guarding business? Well, keep in mind that the idea and how we approach this is very similar to how a private equity firm would look at it, which is basically, we want to go buy a solid business that's run by stellar management. And then we give them the tools and support and technology for them to grow and give them the autonomy, frankly, to be able to do that. And we found that in Event Risk. The management team is very strong. They've been growing very quickly. The client retention rates are astronomically good. The employee retention rates are astronomically good. And we've got real hitters that we're betting on to continue to grow the business. And then what we're going to come with is technology then that will ensure that it's not a commodity staffing business of headcount the way it's kind of -- the industry has been run today. So we're reimagining and re-architecting how physical security gets delivered to a client. And our initial interactions with folks that are in the know or prospective clients or in the pipeline, we know we're on the right path. Our focus right now is just heads down on execution. So the balance of the year, to kind of wrap this up, is focus on technology development, focus on growth, finish up the integration so that 2027, '28, '29 are hopefully some epic years for us. And again, we're in great spirits. The market, I think, is trying to understand what we just did, both on Wall Street and in the security industry, but the proof is going to be in the pudding. And I'm betting on this team, and we're highly confident that the future is bright. So Apoorv, do you have any last remaining thoughts? Apoorv Dwivedi: No. Same, Bill. I echo both your sentiment and the team's sentiment in that we have a lot to do. We have a lot going on, and we just have to keep our heads down and focus. William Li: Yes. Lastly, I want to publicly thank our Board of Directors and the management team for the support in doing this strategic acquisition. Again, I've been wanting to do this for half a decade and finally got the brave pill to do it. And now I'm just kicking myself that we didn't do it 5 years earlier, but this is going to be a lot of fun. So hopefully, for those of you that can join, we'll see you Thursday night for our first annual Autonomous Security Force Day. Please be safe. Thanks, everybody.
Stuart Smith: Welcome, everyone, to the KULR Technology Group Fourth Quarter and Full Year 2025 Earnings Call. I'm your host today, Stuart Smith. In just a moment, I'm going to be joined by the Chief Executive Officer for the company, Michael Mo, as well as the Chief Financial Officer for the company, Shawn Canter. Both of those officers will be giving their opening remarks, and that will be followed by a question-and-answer section with management. And again, we want to thank you for those questions. Now before I begin, I would like you to listen to the following safe harbor statement. This call contains certain forward-looking statements based on KULR Technology Group's current expectations, intentions and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to the company as of the date hereof. The company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with their business, which include the risk factors disclosed in KULR Technology Group's Form 10-K filed with the Securities and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports the company files with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should and would or similar words. All such forward-looking statements that are provided by management on this call are based on the information available at this time, and management expects that internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, the company assumes no obligation to update the information included on this call, whether as a result of new information, future events or otherwise. Now with that, I'm going to turn the call over to Michael Mo, Chief Executive Officer of KULR Technology Group. Michael, the call is yours. Michael Mo: Thank you, Stuart. Good afternoon, everyone. Thank you for joining. 2025 was a difficult year for our shareholders and for our company. Share price declined significantly, and we recorded a net loss of approximately $62 million. The majority of this loss was driven by onetime and noncash items, but it was still a loss. Our investors, shareholders, internal team members and I all felt the effects of this loss. We recognize the impact this has had, not just on our investors and shareholders, but also on our employees and partners who are deeply invested in our success. I feel that way alongside all of you. I want to acknowledge this directly. Equally as important, I want to separate what affected performance in 2025 from what matters most to the business going forward. In 2025, KULR continued to grow and invest in its core business, the KULR ONE battery platform for energy storage systems. Adversity brings clarity. It sharpens our focus, reinforce our discipline and remind us exactly what must be done. We're taking these lessons forward with urgency and intent. Our foundation is strong, our direction is clear, and we committed to executing with precision and accountability in 2026. What I want to do today is go through what we built in 2025, what we believe is the right foundation and what realistic 2026 growth execution looks like. KULR designs and builds advanced battery systems for autonomous platforms, digital infrastructure, electric transportation and space exploration. KULR ONE is our battery platform. Our progress in 2026 will be judged by core battery revenue growth and improvements in gross margin as volume and automation increase. The mission for 2026 is clear: eliminate distractions and execute with discipline. Our singular focus is to build and sell more KULR ONE batteries. That's the work, and we will do it relentlessly. I would now like to walk you through some of the 2025 financial reportings and the situation surrounding them. Shawn Canter will provide a full financial summary during his portion of the call. Under GAAP accounting, KULR recognized an unrealized mark-to-market adjustment of $13.8 million on its Bitcoin holdings for 2025. The adjustment reflects the change in Bitcoin price at the end of 2025. While this is an expense, it's not a cash expense. We have maintained our Bitcoin treasury of approximately 1,082 Bitcoins without selling any coins. We invested in and formed a distribution relationship with a private exoskeleton company. In late 2025, that company filed for insolvency. We took the full write-off of approximately $6.9 million. Clearly, this investment did not work out. The investment and the distribution relationship with this entity have been ended and the full account is in the 10-K. The lesson is clear. We must be disciplined in how we allocate capital and resources, prioritizing the growth of our core battery platform and focusing on opportunities where we have greater operational control, strong commercial visibility and direct alignment with our strategic priorities. Battery platform revenue, which is product sales plus contract services was $7.3 million in 2025. That's the commercial baseline we're scaling from in 2026. Revenue was $16.1 million, up 51%. Most of that growth came from Bitcoin mining and battery research grant dollars. The number that matters most to us in 2026 is the battery platform revenue. That's the business we're building KULR ONE around, and that's where we need to demonstrate growth. $7.6 million is where we start. I would also like to address the product sales gross margin of 1% in 2025. KULR ONE gross margin at current production volume reflects the economics of an early-stage manufacturing ramp. Three factors are driving the current cost structure. First, material pricing at current volume is high. Second, the fixed facility costs are spread across a production base that has not yet reached high throughput. Third, each new customer program carries engineering and design costs that are concentrated in early production runs before volume scales. As programs mature and volume increases, those program level costs will be absorbed across a larger number of units. All 3 of these factors compressed margin at the start of a production ramp. They will improve as volume grows. To address these, 3 actions are already in motion. First, programs that began as early prototypes are transitioning to production. Many KULR ONE Air drone battery programs are moving along that curve. Each program that crosses from prototype to volume production shifts from a cost center to a margin contributor. Second, we're installing an automated production line in second half of 2026. Automation reduced per unit labor cost and improves yield consistency at scale, both of which will directly impact gross margin. Third, the KULR ONE platform itself is maturing. As more programs are built on the same modular architecture, engineering and design work required to onboard new customers decrease. That ratio continues to improve as platform accumulates application experiences across defense, aviation, telecom and data center use cases. In summary, we do not view 2025 margin profile as the end state of the business. We view it as the current economics of low-volume production before programs mature, automations in place and production volume grows. What we built in 2025 is the foundation for our growth in 2026. Our headquarters facility is a vertically integrated battery production center from design, prototyping, cell screening, qualification test to volume production. We're working with domestic battery cell suppliers to strengthen our NDAA compliant supply chain and our customer base has grown across 6 diverse industries. We have an experienced and dedicated team, solid financial resources and a broad customer base to grow our business. We have learned the difficult and valuable lessons. We're now focused on execution, ship more batteries. You may ask the question, why now? Why 2026 is the year for change? High-growth markets that KULR serves, autonomous platforms, direct energy systems, digital infrastructure, they all share a common technical constraint, power density. The demand for high-power battery pack has emerged, and that's the biggest growth driver for us. The requirement is not simply to store more energy, but to deliver at high C-rates than the standard battery. Oftentimes, this must be done in challenging environments that include extreme temperatures, high G-force, vacuum conditions and underwater pressure without thermal failure. That's not a commercially available battery problem. That's a specialized battery problem. It requires a battery architecture specifically designed for high-power and thermal stress operation. Simply put, these customers often cannot rely on off-the-shelf battery packs. They need high performance, safety and reliability, all in one package that can deliver fast at commercial prices. KULR ONE is built to that specification. It starts with building the right architecture and then select the right battery cell partners. KULR ONE is a modular and customizable architecture to meet customer needs across multiple end markets. We currently have over 30 active customer development programs in KULR ONE Air, KULR ONE Space, Guardian and Triton, which is our new maritime platform. Those programs are at different stages from evaluation to development through more advanced commercialization work. They represent a broad pipeline of revenue growth for KULR ONE as we move these customers from design into production revenue in 2026 and beyond. KULR's cell partnership reflect the same focus. We have worked with both Amprius and Molicel for a long time. They focus on high-power and high-energy density batteries. Those partnerships are a deliberate long-term strategy to maintain access to the most capable battery cell technology available as power density requirements with KULR's markets continue to advance. The combination of KULA ONE system architecture and advanced power cells from our partners give our platform a development road map that extends well beyond the current production configurations. Next, I'll give you an update on our KULR ONE Air. KULR ONE Air, which was launched last year to support the drone industry is now expanded beyond just air-based autonomous systems. Just in the KULR ONE Air category, we have over 20 active engagements to develop specialized battery systems for many high-profile unmanned systems companies that operate in the air, ground and maritime markets. The intensive work accomplished in 2025 to ramp our engagement with these demanding customers will start to become apparent in 2026 as their programs and system evolve from development to deployment. Let me share with you why KULR ONE Air is the right platform for this market. Autonomous systems like drones and robots operate by executing rapid and high-intensity physical action. Their motors accelerate a takeoff. Gimbals stabilize under heavy load. Sensors are firing at the same time and their control systems respond in milliseconds. Each of these actions demand a large amount of current and power delivered instantaneously. Energy batteries, the kind of optimize for energy density and releasing it gradually over a long period of time cannot respond fast enough and sustain the discharge rate, these actions require without overheating or collapsing the voltage. A power battery is designed around the opposite priority. It's built to deliver power at 5 to 20x faster than energy batteries. It also needs to sustain that output through repeated high demand cycles, and it needs to manage the heat generated by the power without failure. For autonomous system where the motor, the sensors and the computers are all cranking at peak current at the same time, only a power optimized architecture can keep up. The engineering challenge of a power battery is not simply to build a bigger or stronger version of an energy battery where heat and thermal stress is manageable. For power batteries, heat dissipation becomes the primary engineering constraint. The design needs to be lightweight enough for the platform to fly and high component and manufacturing quality to sustain the performance. For example, a single defect in welding and soldering joints will result in such a high-energy battery creating a resistance point that at high discharge rate generates enough localized heat to drive the entire pack into thermal runway. KULR ONE address each one of these constraints through a combination of engineering expertise, proprietary technology, thermal control, component integrity and build precision. That's what separates KULR ONE battery that perform in the field from one fails under operational load. Our current engagements span agriculture, survey, law enforcement, defense drone programs and surface and subsea maritime vehicles. The breadth of the applications reflect the platform's configurability. It's the same KULR ONE architecture adopted to the specific power, weight and certification requirements for each platform. KULR has shipped thousands of these drone battery packs to date. We're engaged with 2 of the leading unmanned aerial system companies in the United States with a combined production volume target to approach 10,000 packs per month in second half of 2026. These are active engineering partnerships with production time lines, pack configuration and qualification schedules already in place. Another point -- another important point I'd like to make is about supply chain resilience, namely NDAA compliance that stands for National Defense Authorization Act. The NDAA compliance is a procurement requirement for government and defense adjacent customers. KULR entered a joint development collaboration with Hylio to design, prototype, qualify and manufacture NDAA-compliant battery systems in Texas. Hylio is a Texas-based designer and manufacturer of drones for agriculture and public sector programs where NDAA compliance becomes important. Both the batteries and the drones are made in the United States. Next, I'll give an update on our other KULR ONE programs. KULR ONE Space and KULR ONE Guardian are the 2 programs that set the performance standards for the entire KULR ONE portfolio, both operating environments where battery failure is not recoverable, human space flight, deep space missions and active military operations. The engineering standards that we develop for these programs are what the rest of the KULR ONE platform is built on. Every performance requirement met in the spacecraft or combat system, propagation resistant, thermal stability under extreme conditions, certification under scrutiny raised the engineering baseline that KULR ONE Air, Max and Triton inherit. Customers in defense drones, electric aviation, AI data center programs are buying into this architecture that has already been qualified in the most demanding operating environment. KULR continue to see adoptions across the space sector. The XLT and the Reach series batteries are in active use across multiple satellites in both LEO and GEO applications. The Reach series currently is in multiple unit deployment on 4 partner satellites. Next, I'll talk about what are the competitive advantages of the KULR ONE platform. The #1 competitive advantage for the KULR ONE platform is the performance, safety and quality standards the platform was built to. KULR ONE's core IP originated by the work we've done with NASA Johnson Space Center. The architecture was designed for human-rated spaceflight applications, environments where battery failure is not a recoverable event. Zero propagation failure has a propagation containment. That heritage is the engineering foundation that makes KULR ONE the correct choice for applications where performance and safety are both nonnegotiable. A perfect example of that advantage is our partnership with Robinson Helicopters. Robinson Helicopter Company has manufactured more civil helicopters than any other company in the world in its 50-year history. They have manufactured more than 14,000 helicopters. The procurement standards for safety critical systems are established and rigorous. They valued KULR ONE and selected to be their next electric aviation platform. That decision is important because it further validates the engineering standards KULR ONE was built to. Under this co-development agreement, KULR will design and integrate a lightweight, high-performance battery architecture for the eR66 battery-electric helicopter demonstrator. We're building a dual life architecture, which means that each pack is engineered from day 1 for 2 years. First for primary flight cycle and a certified second life energy storage application. This model creates 2 revenue streams for KULR. The primary use case are rapid organ and tissue transport, emergency response and short-haul operations where zero emission performance and low acoustic signature are operational requirements. Second life energy storage is for industrial and digital infrastructure applications. Execution speed is another KULR ONE advantage. Not speed is a marketing claim, but speed as a demonstrated and repeatable engineering capability. In November 2025, we received a purchase order for a 400-volt battery system to power a Counter-UAV (sic) Counter-UAS direct energy platform. Five weeks later, we developed -- we delivered a complete design package to work in prototype. Achieving that time line was made only possible because of the deliberate engineering foundation we built in 2025, including model-based electrical and thermal simulation, proprietary cell selection, design for safety architecture and in-house integration running electrical, mechanical and firmware developed, all in parallel. This system is scheduled to enter production in 2026. Next, I'll provide an update on KULR ONE platform for digital infrastructure and AI data center applications. Our digital infrastructure strategy addresses 2 distinct but related segments, telecom network backup and AI data center power. Both require battery systems that must perform reliably, but in different operating environments. Telecom sites face grid instability across diverse geography, while AI racks increasingly require battery integration closer to the compute equipment itself rather than rely on centralized UPS systems. Telecom operators depend on the battery backup as a primary protection against grid interruptions. 5G infrastructure laws are raising the performance and uptime requirements for those systems beyond what legacy lead acid installation can meet. In January 2026, KULR was awarded a 5-year preferred battery supply agreement from Caban Energy, a Miami-based company that deliver energy as a service to telecommunication operators across 12 countries. As part of that transaction, KULR has taken full control of the battery manufacturing equipment and process, and we've commenced production. Production battery packs were delivered to Caban in Q1 of 2026. We plan to consolidate full operation into our Texas facility in Q2 to improve efficiency, reduce overhead and centralize operation as we grow. We now have the supply chain set up for the 48-volt 100-amp hour battery production and the focus is to deliver batteries to meet growing Caban demands. Beyond that agreement, we're in active engagements with telecom operators and service providers directly with our KULR ONE battery as a Service offering. These are separate from the Caban channel and represent KULR's effort to build direct recurring revenue relationships in the telecom segment. Data centers have traditionally handled battery backup the same way with large power systems installed in a dedicated room, separate from the computing equipment they protect. That model is changing. As AI workloads grow and hardware running them becomes more power intensive, the industry is moving towards battery backup installed directly inside the computing rack. The battery is no longer just a facility utility. It's become part of the compute infrastructure itself. That shifts create a different set of requirements. A battery that operates inside the rack next to the processor, it protects needs to meet much higher safety standards and need to handle higher voltages and respond much faster than conventional backup systems. At the end of last year, KULR joined the Open Compute Project as a Platinum member. OCP is an industry body whose specifications define how hyperscalers and large cloud operators build their infrastructure. Platinum membership places KULR in the working groups writing the next generation of power standards and position us inside the relevant technical working groups and help us to build a product in line with where the market is going. In the same month, KULR created a joint development collaboration with a leading global battery cell manufacturer to develop the KULR ONE MAX BBU for AI scale data centers. KULR leads the system design, safety engineering and certification, while the cell partner supplies the battery cell platform for the life of the commercial program upon certification. The opportunity is significant, and it depends on certification, qualification and customer adoption time lines. The same trend that are driving record level battery demand in large data centers is also driving demand at the edge. AI inference, the process of running AI models to generate response is moving out of the central data centers into network itself closer to the end user. That means that the computer hardware and the battery backup protecting it must operate in telecom facilities, cell towers and distributed network nodes. The environmental and reliability requirements at these locations are more demanding. This is where the AI data center opportunity and the telecom opportunities converge. The battery requirements are related, the customer base overlap and KULR ONE is the same architecture to save both. Next, Shawn Canter will discuss financial highlights. Shawn? Shawn Canter: Thanks, Mike. 2025 was an important year for KULR. As Mike mentioned, it marked a transition to a scalable product-focused model. Let me touch on a few points from 2025 before we get to the Q&A. KULR generated over $16 million in revenue in 2025. This is a 51% increase over the prior year. As we have previously discussed around our focus on product, our product revenue increased and our service revenue declined. Product revenue was up 39%, while service was down 50%. Again, while we expect to have some service business, we anticipate continued growth to come from the product side of the business as we scale into the large end markets Mike discussed earlier. Product revenue came from 47 customers in 2025. Revenue per customer was approximately $108,000 or 56% higher than 2024. Services revenue came from 34 customers, the same as 2024. Services revenue per customer in 2025 was approximately $65,000 or 50% lower than 2024. Mike touched on gross margins earlier. We have set out in detail information about gross margin, R&D and SG&A in the Form 10-K filed today. KULR recorded an approximately $62 million net loss for the year. There is an aggregate of approximately $33 million of noncash expenses on the income statement that contribute to the net loss. These represent almost 55% of it. As Mike mentioned, the largest of these is an approximately $14 million mark-to-market expense due to the decline in the price of Bitcoin. As a reminder, in the second and third quarter, Bitcoin's ascending price contributed a noncash gain to those quarter's results. Now let's get to the Q&A. Back to you, Stuart. Stuart Smith: All right. Thank you very much for that, Shawn. And as mentioned, that now takes us into the question-and-answer portion for our call today. And here's the first question. Can management speak to which markets are seeing the most momentum today and where early customer interest is starting to turn into repeat business and meaningful revenue? Michael Mo: Yes, Stuart, I'll take that one. I would say the KULR ONE Air for the autonomous platforms are the clearest near-term production momentum. It has expanded beyond the airborne drones to surface and subsea maritime applications as well as land applications. We now have over 20 active customer development agreements or programs across our KULR ONE Air platform. Thousands of battery packs have already been shipped and 2 of the leading drone companies in the U.S. have active production time line with us, pack configurations, qualification schedules in place, and we're looking at over 10,000 battery packs per month later 2026. I would say that's the market has the highest momentum these days. Stuart Smith: Thank you for that, Michael. Here's the next question. Could you give an update on where KULR is positioned in the AI data center backup power market? And what investors should be watching for to know whether this can become a meaningful source of growth? Michael Mo: Yes. We start developing our AI data center BBU product in 2025. And at the end of 2025, we joined the OCP platform membership and which positions us inside the working group that writes the next generation of the power standard for these hyperscaler infrastructures. So now we're building products to meet where the market is heading for the next cycle of growth. 2026 is the year that we really need to work with our BBU cell providers on the UL 9540 certification and work with the hyperscaler customers on integration work. And I would say that 2027 is the year that we can see revenue opportunities. Stuart Smith: Next question. Where do things stand in telecom and energy infrastructure? And what still needs to happen before those opportunities can start contributing in a bigger way? The Caban announcement was a great start. Michael Mo: Yes. We've taken control of the battery manufacturing equipment and process from Caban, and we've commenced production. Production battery types have been delivered to the customer, and we plan to consolidate that into our Webster facility in Q2 and improve efficiency to reduce costs and also centralize operation as we grow. We now have supply chain set up for the 48-volt 100-amp hour battery production, and the focus is now to deliver batteries to meet the customers' needs. In addition, we are in active engagements with telecom operators and service providers directly to provide KULR ONE batteries as a battery as a service offering that's separate from the combined channels. So we're starting to test the water to offer that as the battery as a subscription service. And the goal is to lower the total cost of ownership for operators to replace the lead acid batteries into lithium-ion batteries. Stuart Smith: Michael, since KULR is involved in several areas like aerospace, defense, telecom, e-mobility and data centers, where is management most focused right now? And where will most of the company's attention and resources go over the next year? Michael Mo: Yes. The focus for 2026 is simple, build and sell more KULR ONE batteries. The management is most focused right now on the KULR ONE Air platform. That's the one that shows the highest growth with our customers. I think I repeated it now that we have over 20 active customer engagements for the autonomous systems for air, land and maritime, and we shipped thousands of the battery packs for the customers. And this is the one that we see the highest growth in 2026. Stuart Smith: Looking at the rest of 2026, what are the biggest goals and milestones investors should be on the lookout for? And what would management consider a successful year? Michael Mo: Well, I think that the -- across our portfolio, the KULR ONE Space and Guardian products will continue to gain customer traction. As you know, the private space exploration and the DLW the market is also very growing very quickly. The telecom batteries, we're shipping volume to our customers to meet their demands. We have some new telecom operators that hopefully will get contracts in 2026 for Battery as a Service. Keep in mind that these operating engagements can take some time, but I think it could be a very good recurring revenue business for us. The first is the -- but the most important is the KULR ONE Air product that's going to ramp and scale with our customers. And I think the baseline is 10,000 packs per month as we get our automated production line going. So I think these are the big ideas for our goals. Stuart Smith: Okay. Excellent. Next question then, how stable and repeatable is the KULR ONE platform revenue base becoming? Michael Mo: Yes. Like I said in the prepared remarks, what has fundamentally changed for KULR in 2026 compared to previous years is that the need for power battery pack has emerged for these very fast-growing new markets, autonomous platforms, digital infrastructure and direct energy. KULR ONE is engineered from the ground up to serve this paradigm shift. And our customer engagements are now broader industry coverage. The customers are very diversified in different markets. And we also have a lot more customers and they all have their programs that's running, and we're customizing our solutions specifically for their programs. And these customers have their own road map to ramp in volume in 2026. And that gives us more confidence and build our production capability to serve these customers on schedule. We're certainly moving to a more stable and repeatable product sales business model in 2026. Stuart Smith: All right. Michael, next question is, as space-based AI data centers become more of a long-term discussion point, does KULR see a potential role there given its background in space applications, thermal management and battery safety? Michael Mo: Well, first of all, I think this is a long-term conversation, and it is not something KULR can focus on in 2026. But the space-based AI data center is probably one of the biggest and the hardest idea right now. Elon Musk talked about it. He believes that the best way to solve the difficulties of building AI data center on earth is to move them into space. And at GTC 2026, NVIDIA launched the Space-1 Vera Rubin module along with their Thor and Jetson platform. And these are engineered to deliver AI performance for the open data centers. And on top of that, how to cool chips in space is still an unsolved problem. These data centers will definitely need to use space-proven batteries. And some of these private space companies that NVIDIA is working with for space AI data centers are already KULR customers. So I think there might be opportunities, but not particularly a focus for us in 2026. Stuart Smith: Understood. Here's the next question. You have recently announced drone partnerships with Hylio, a backup power partnership with Caban Energy and a standards body looking to modularize AI data center building blocks. These 3 initiatives represent a large market opportunity, but how much, if any, will you see in 2026? Michael Mo: Yes. Hylio and Caban are both 2026 revenue contributors, Caban in production by now and grow for the remainder of 2026. Hylio is an active engineering collaboration right now and revenue will follow qualification and production milestones as program move from prototype to volumes. And we do expect that the Hylio revenue in second half of 2026. The AI data center BBU business, as I talked about, it will be more like a 2027 business for us. Stuart Smith: Michael, here's the final question for today's call. In regards to your ability to power drones. Given the recent developments globally, are you aligning yourself with companies that plan to rapidly increase output as a result? Michael Mo: Yes. KULR ONE Air for drone, autonomous platform is the focus for KULR 2026. We have many active engagements for air, land, maritime applications. And many of them will go to production in 2026. And we're setting up an automated production line for those platforms, for those batteries in -- to be in operation in second half 2026. Also related to the drone is the counter drone direct energy systems, and we develop a 400-volt battery for a customer in 5 weeks' time from when we receive the PO. And that's actually a record time for a system like that. And these systems will go into production in 2026. Another one that's really important is NDAA compliant. So that's for domestic production. A lot of times, that's a structural requirement for government drone programs. And this is why we partnered with Hylio to build made in U.S.A. batteries and drones together. So we are very well positioned to serve many of these customers that's growing very fast for both defense and commercial applications in 2026. Stuart Smith: Well, as mentioned, that's our final question for today's call. I do want to point out, as we do in all of these calls that all you need to do is pull up the press release that came out for this call, which came out March 26, and continue to send your questions in throughout the quarter leading up to our next call. We appreciate all of those who did submit calls for questions for today's call. And I would like to thank Michael Mo, CEO for KULR Technology as well as Shawn Canter, the CFO for KULR Technology Group for joining us here today. That concludes our call, and I will now turn the call over to our operator. Operator: Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.
Operator: Greetings, ladies and gentlemen, and welcome to the SEALSQ Fiscal Year 2025 Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause actual results financial condition, performance or achievements of SEALSQ to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. SEALSQ is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information future events or otherwise. These risks are also discussed in our filings with -- made with the Securities and Exchange Commission. Please be advised that our fiscal year 2025 earnings release was issued on Tuesday, March 31, 2026. Also, our Form 10-K for the full year ended December 31, 2025, which was filed with the SEC on Tuesday, March 31, 2026, can be found by visiting the Investors section of SEALSQ website. at https://investors.sealsq.com. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of SEALSQ. Mr. Moreira, please go ahead. Carlos Moreira: Thank you very much, Kevin, and good morning in the United States, and good afternoon in Europe to everybody. Welcome to our full year 2025 earnings call. I am joined today by our Chief Financial Officer, John O'Hara. I'll begin with an overview of our key highlights and major developments from the year. John will then walk you through the financial results in more detail. After that, I'll return to share our outlook for 2026 and beyond, I will conclude by opening the line for your questions. 2025 was a defining year for SEALSQ. It was a year where we stepped decisively into the role we had been building towards since our founding that of the world-leading platform for post-quantum secure semiconductor and trusted digital infrastructure. Every investment, product launch and partnership this year advances one central thesis that the quantum threat to encryption is real. It is accelerating and hardware rooted post-quantum security is the only durable answer. Let me walk you through those accomplishments one by one. In October 2025, SEALSQ market valuation surpassed $1 billion, and we achieved an upgrade to the NASDAQ Global Select market, its highest year. This reflects our growing scale, institutional governance standards and investors' recognition and our positioning at the interception of semiconductor, cybersecurity and quantum resilience. November 2024, we have raised more than $530 million in capital, providing us with a substantial financial flexibility to accelerate our growth strategy and deepen our investment in innovation. This founding strengthens our balance sheet and enables us to scale product development, expand our commercial reach and support the industrialization of our next-generation secure semiconductor platform. It also positions us to advance key strategic initiatives, including post-quantum product development, certification programs and potential partnerships or acquisitions that we can enhance our technology capabilities and market presence. I will provide more detailed color shortly on our use of capital and how we are allocating these resources to drive long-term value creation. I will start with our QS7001, the world's first post-quantum semiconductor. The most consequential milestone of 2025 was the commercial launch of the Quantum Shield QS7001 in Q4. This is the most first commercial available secure semiconductor embedding NIST standardized post-quantum cryptography algorithms, such as MLK, MLA KEM and MLA DSA directly in hardware delivering up to 10x higher performance than PQC software implementation. We unveiled the QS7001 at the IQT Quantum and AI conference in New York in October, and formally launched development kits at Las Vegas Grand Prix in November. The pipeline on QS7001 and QVault TPM has already grown to over $60 million for 2026 to 2029, up from approximately $11.4 million at the same point last year. I will now discuss the SEALSQ made in U.S. strategy and recent development. The U.S. government and enterprise market increasingly required Root of Trust, PKI infrastructure and cryptographic provisioning on American soil, driven by national security imperative and regulatory mandates. In November 2025, we launched a sovereign U.S. post-quantum Root of Trust, the first of its kind, marking a foundational milestone in or made in U.S. strategy. This initiative ensures that the entire trust chain from silicon design to cryptographic provisioning can be executed within the United States under the highest level of certification and control. To operationalize this vision, we engage Trusted Semiconductor Solution, TSS, as our U.S. manufacturing and distribution partner and establishing a U.S.-based secure personalization hub in 2026, reinforcing supply chains sovereignty and resilience. This strategy further strengthen through key partnerships collaboration with Lattice Semiconductor enables the integration of low-power FPGA technologies, supporting flexible, secure and post quantum-ready hardware architectures for defense, IoT and HAI applications. At the same time, engagement with Paradrone extends secure Root of Trust capability into autonomous and defense trade UAV system where [indiscernible] resilient and trusted communications are mission-critical. Trusted Semiconductor Solution, TSS, a Category 1A trusted accredited company meeting the highest standard for 100 classified and mission-critical macro electronics has announced a strategic partnership to co-develop Made in U.S., PPC enabled semiconductors, secure semiconductor solution. These solutions are designed to reach the highest level of hardware certification required by U.S. defense and government agencies. Leveraging TSS' established a relationship and trusted position within the U.S. Defense ecosystem, this collaboration has strengthened SEALSQ footprint and accelerate access to sensitive national security market. TSS serves us as a critical interface to U.S. agencies, insurance compliance with the Department of Defense, DoD and federal requirements while enabling the developer mind of SEALSQ quantum resistance silicon, [indiscernible] chip design, advanced certification and secure personalization technologies. [indiscernible] represents the quantum computer layer of this long-term vision. Its electron on Helium approach enables Quantum Processor as small as a funnel and compatible with the standard semiconductor manufacturing processes. This breakthrough aligns directly with the objectives of building an end-to-end sovereign quantum security stack bringing today post-quantum cryptography chips with tomorrow Quantum processors. The follow-on investment in February 2026 reflects a strong conviction in this trajectory and reinforces the strategic position and the intersection of semiconductors cybersecurity and quantum computing. By combining U.S.-based manufacturing and personalization through TSS programmable secure hardware, the Lattice Semiconductor trusted autonomous system with Parodrone and future quantum capabilities enabled by [indiscernible], we are establishing a vertical integrated sovereign and quantum resilient security ecosystem tailored to the most demanding requirements of U.S. defense, critical infrastructure and next-generation AI system. Our total activity -- sorry, our total active pipeline across all products, stands to an estimate $200 million in March 2026, which publishes a certification road map confirming all the products variant, which are QS701,V1,QS7001, V2, QVault TPN 183, QVault TPN 185, which are on track for CC EAL 5 plus FIPS 14-3 and TCG certification through Q4 2026. While our customers are actively testing development kits and progressing through the design in progress, signaling strong engagement and readiness for adaptation, we see that gating factor for conversion to revenue are twofold. First is the certification completion or CC EAL 5 and FIPS 143 milestones remain on track through Q4 2026, and customers in regulated sectors typically require the certifications before committing to volume purchases. As already mentioned, the laboratory has confirmed that the common criteria evaluation required to achieve evaluation Assurance Level EAL 5+, namely fault injection and side channel attacks, pass in March certification as anticipated. Second, integration cycles in the semiconductor industry, the past from design into full production usually expand 6 to 18 months. We are actively accelerating this timeline through co-development partnerships and close collaboration with customers shortening the time from prototyping to deployment. Critically regulatory pressures, such as the CNSA 2.0 in the United States and the European Union or cyber resilient act are creating tangible urgency. These deadlines are not theoretically, they are influencing procurement decisions today, and we are seeing this urgency directly reflected in commercial conversations driven faster designing and a strong early adoption. This combination of mature pipeline, accelerating integration and regulatory-driven demand positions us well for meaningful near-term revenue growth while laying the foundation for continued expansion through 2028. Now moving to acquisitions. In 2025, we completed the acquisition of IC'ALPS SASU, a leading ASIC design, a specialized company based in Grenoble and Toulouse in France. This added approximately 100 high skill engineers, bringing our global workforce to approximately 300 people. IC'ALPS bring expertise in custom chip design for health care, automobile and IoT and position us to develop the QASIC, which is the quantum ASIC, a purpose-built post-quantum cryptographic ASIC. ASIC revenues also grew from $1.4 million in Q3 to $2.2 million in Q4, confirming the value of this acquisition. Additionally, last month, we signed a letter of intent to acquire 100% of Miraex, a Swiss developer for photonics-based Quantum interconnected solution. Miraex represents a strategic asset in completing our Quantum vertical stack. This technology provides a critical interconnect layer linking quantum computing networking and post-quantum cryptography into a unified architecture. Once completed, the acquisition is expected to accelerate our QS OC initiative and strengthen our ability to deliver resilient end-to-end quantum secure infrastructure across both terrestrial and space-based environment. Another key milestone in the establishment of our Quantum fund and a strategic investment made through it. Our Quantum Fund launched in 2025 with a $20 million initial allocation has grown now to $200 million as today. We deployed approximately $30 million across IC'ALPS, [indiscernible], EeroQ, WISeSat, Quantix Edge Security and the WeCan Group, each reinforcing our Quantum vertical from silicon to space. On November 2025, investment in EeroQ deepened with a follow-on in February 2025, is particularly strategic. EeroQ is building a quantum processor based on single electron on super fluid helium, a design approach that yields processor as small as a thumbnail manufactured on a standard semiconductor processes. This underlines our Made in U.S. vision and our long-term Root-to-Qubit ecosystem. The U.S. government and enterprise market increasingly requires Root of Trust, PKI infrastructure and cryptographic provision on American soil. In November 2025, we launched a sovereign U.S.-based post Quantum Root of Trust, the first of its kind. We engaged Trust semiconductor solution as U.S. manufacturing and distribution partner and we are building a U.S. personalization hub in 2026. EeroQ is the quantum computer layer of this vision. Their electron on Helium approach allows processor as small as a thumbnail to be manufactured on a standard semiconductor processes directly aligned with our long-term goal of an end-to-end server in quantum security stack from post-quantum chips today to quantum processors in the future. The follow-on investment in February 2026 reflects our conviction in this direction. All these advances tie well with our Quantum highway global expansion strategy. We advanced our Quantum highway linking industrial capabilities around several locations like Murcia, Toulouse, Grenoble, Geneva and Chicago, connecting Spain, France and the United States and Switzerland. In September 2025, we signed a EUR 40 million joint venture with the Spanish government to establish Quantum Edge security in a city located in the southern part of Spain, Murcia. Spain's first Quantum -- first Quantum Semiconductor personalization Center. We are establishing 2 additional hubs in the U.S. and in Asia in 2026. In November 2025, we launched a sovereign U.S.-based post Quantum Root of Trust, enabling U.S. government agencies to manage Quantum secure digital identities in U.S. oil. In November 2025, SEALSQ invested $10 million in WISeSat to develop a Quantum secure satellite infrastructure platform. The complemented -- the contemplated model is based on an anticipated remarkable right of use over 12 satellites. WISeSat will remain ownership of the operation while SEALSQ will secure dedicated capacity for Quantum Spatial Orbit cloud initiative, delivering quantum key distribution, Quantum run their number generation and post-quantum identity services as a subscription offering to enterprises and government. The WISeSat 3.0 launch in June 2025 already included a proof of concept for SEALCOIN machine-to-machine transaction, secure bio semiconductor stack. While there cannot be no assurance that the contemplated arrangement will be completed on currently anticipated terms, we believe this represents a significant long-term opportunity as the world's first Quantum Secure Orbital cloud. I am turning now the call to John, who will discuss financial results for the year 2025. Go ahead, John. John O'Hara: Thank you, Carlos, and hello to everybody on the call. So SEALSQ delivered total revenue of $18.3 million in fiscal year '25, representing growth of 66% compared to 11%, and second, the addition of our new ASIC segment, which contributed $3.6 million following our acquisition of IC'ALPS in August 2025, representing 5 months of consolidated revenue. Within the semiconductor segment, we saw particular strength in our smart card reader SCR 200 product line, which delivered 51% revenue growth year-on-year, driven by expanded deployments at key customers. Our Secure Element product lines, notably the VIC 405 and VIC 408 also saw significant bond growth in smart metering and secure communications applications. Trust Services, which include our PKI and provisioning solutions, grew by almost 600% year-on-year, both from a small base and currently represent just 2% of total revenue. Geographically, North America remains our largest market at 57% of revenue. We are pleased to report strong momentum, in particular, in Asia Pacific, where revenue grew 95% year-on-year, driven by adoption of the MATA protocol in smart home and HVAC applications. We also recognized some small revenues relating to sampling of the QS7001 quantum resistant chip as clients commenced their first testing of this product, and we expect first production revenues from the QS7001 in the second half of 2026. Gross profit improved substantially to $8.6 million in 2025, up from $3.7 million in the prior year, with gross margin expanding 13 percentage points to 47%. This was primarily driven by the addition of the ASIC segment which carries significantly higher margins at 88%, reflecting the design service and nature of that business with low directly attributable costs. Semiconductor segment gross margin partially recovered to 37%, up from 34% in 2024, as shipments of new products for our existing customer base resumed following a period where customers were drawing down their own inventory. Total operating expenses were $48.4 million in 2025 compared to $20.9 million in 2024, an increase of 132%. However, I want to be clear about what is driving this increase as context matters significantly here. The single largest factor is a noncash stock-based compensation charge of $11.2 million. Following the significant change in SEALSQ's market capitalization since our original listing, Management made the deliberate decision alongside the Compensation Committee to issue equity awards to our staff and senior staff as recognition of their commitment and to align their interest with our shareholders. This is a onetime accounting charge with no cash involved. Beyond that, the increase in operating expenses reflects 3 structural changes in our business. The consolidation of 5 months of IC'ALPS operating expenses following the August acquisition, the build-out of our own management team with C suite and central functions that were previously provided by our parent, WISeKey, now directly employed by SEALSQ from January 2025 and continued investment in research and development and sales and marketing to support our post-quantum product road map. Net of stock-based compensation, in particular, R&D expenditure was $10.1 million, representing 25% of our total operating expenses and reflecting the investment required to bring our Quasar post-quantum product program to commercial launch. The net loss for the year was $34.2 million compared to $21.2 million in 2024 and a meaningful offset to our operating loss came from the nonoperating income of $8.9 million, the majority of which $6.1 million was interest income earned on our substantial cash balance throughout the year. Turning to the balance sheet and liquidity. We ended the year with cash and cash equivalents of $417.7 million with short-term investments of $10 million on top of that, which was up from $84.6 million at the end of 2024. Working capital was positive at $421 million. This cash position is a result of highly successful equity capital markets activity throughout 2025, and in aggregate, since November 2024 until the current date, SEALSQ has raised over $575 million in cash for a series of [indiscernible] direct offerings, warrant exercises and our at the market facility. This puts us in a genuinely strong position to execute on our strategy in the years ahead, and Carlos will come back to that later in the call. Operating cash outflow for the year was $31.3 million reflecting our continued investment phase. Investing activities consumed $35.3 million, primarily comprising of acquisitions and strategic investments, including the acquisition of IC'ALPS, our investments in EeroQ, WISeSat, the WeCan Group and Quantix Edge Security in Spain. Total debt at the year-end was a modest $1.7 million, all of which relates to French government-supported loans acquired with IC'ALPS. The balance sheet is therefore essentially debt-free at the parent company level. Based on our cash projections through to March 2027, we have confirmed sufficient liquidity to fund operations and the business is not dependent on further capital raises for its immediate operational continuity. Moving on to our balance sheet. Total assets grew to over $500 million at the end of 2024 -- at the end of 2025, principally reflecting the increase in cash. Noncurrent assets grew from $4.5 million to $54.5 million which was driven by the IC'ALPS acquisition, which added $5.7 million of goodwill and $21 million of intangible assets net of amortization as well as our strategic investment portfolio. On the other hand, total liabilities were $42.7 million at the year-end and the cumulative deficit at $76 million, up from $41.9 million in the prior year, reflecting the net loss for the period. Looking to 2026, there are a number of important milestones we are targeting. On revenue, we expect fiscal '26 to represent a year of acceleration. The ASIC segment will contribute a full 12 months of IC'ALPS revenue for the first time. We anticipate the first production revenues from the QS7001 and the QVault TPM in the second half of 2026. The estimated combined pipeline for these 2 products is at $60 million as of December 31, 2025, and as of today, and that's across approximately 115 potential customers. Just for clarity, this is a management estimate and is subject to convert -- conversion risk, customer validation, timelines and the certification process. R&D expenditure is expected to continue to increase in 2026, with a particular focus on our post-quantum cryptography road map and the build-out of our test and personalization infrastructure in Spain and prospectively in the United States and Asia. Finally, we expect to continue executing on our strategic investment program. The Quantum funded a total allocation of $200 million, of which we have spent just over $30 million to date. We will continue to evaluate opportunities in quantum computing, quantum as a service, secure semiconductor technologies aligned with our road map. We have $530 million in cash, generating meaningful interest income, and we are investing from a position of strength. Part profitability, we believe, runs through revenue scaling with a $200 million pipeline for 2026 to 2029, revenue expected to grow by between 50% and 100% in 2026, Q1 expected to more than double year-on-year and gross margins certainly trending upward, we are confident in that trajectory. Now I'll turn the call back to Carlos who will provide additional details on our growth strategy. Carlos, please go ahead. Carlos Moreira: Thank you, John. So let me start with 2 milestones that we believe will define our 2026 product calendar. So first is the full scale commercial deployment of the QVault TPM or RISC-V-based semiconductor controller which marks SEALSQ's formal entry into the trusted platform module market and is expected to drive significant new revenue in H2 2026, as indicated by John. Second, we anticipate a custom post-quantum ASIC engagement with contractualization in H2 2026, reflecting IC'ALPS contribution to the QASIC initiative. Furthermore, our $200 million pipeline, which spans from 2026 to 2029 and the near-term portion, particularly the QS-7001 and QVault TPM program, is at the most advanced stage with customers actively running development kits and moving through design in processes. This is a traditional practice in this industry where the testing kits are used and completed before further acquisition of the product. The key conversion factors are: First certification completion or CC EAL 5 plus the 143 milestones are on track through Q4 2026, and regulated sector customers required this before committing to volume. Second, integration cycles in semiconductor design to production typically runs 6 to 18 months. We are actively compressing this through codevelopment and partnerships CNSA 2.0 and EU CRA deadlines are creating a genuine urgency, we see directly in our commercial conversation. This to be completed with the announcement yesterday and Google of the acceleration of the Quantum Day and Quantum thread on cryptography and cryptographic tuck-ins, which will also create an urgency aspect in the market and the consumer application of this technology. Let me now discuss regulatory tailwinds hard deadline set for 2026. The regulatory environment is no longer a distant tailwind. It is creating binding new terms demand that is actively shaping customer purchasing decision. By September 2026, the Cyber Resilient Act mandates security life cycle, documentation for all products with digital elements sold in the European Union. Noncompliant risk incurring fines up to $50 million or 2.5% of the global turnover. This has driven urgency among manufacturers and OEMs to reassess the security architecture and ensure long-term compliance. In parallel in the U.S., the NSA, CNSA 2.0 requires traditional networking equipment to prefer post quantum algorithm by 2026. This effectively accelerates the replacement cycle for a wide range of infrastructure embedded system. Importantly, these are not long-dated policy [indiscernible], they are active enforceable deadlines. As a result, we are seeing a clear shift from evaluation to execution and customer engagements. Against this backdrop, SEALSQ's unique position, SEALSQ is one of the very few companies in the world with certified hardware native solution ready today. This gives us a meaningful first mover advantage as customers move quickly to secure compliance, future-proof solutions. So now moving on to global infrastructure expansion. In 2026, we plan to commence the establishment of 2 additional custom design, tech and personalization hubs, 1 in the United States and 1 in Asia, complementing the Murcia Spain center and significantly expanding our global footprint. These hubs will not only enhance our operational resilience and proximity to key market, but also will create a distributed sovereign grid infrastructure aligned with evolving geopolitical and cybersecurity requirements. At the same time, we will accelerate the development of the SEAL Quantum Spatial Orbit cloud, a strategic initiative that reflects a fundamental shift in how digital infrastructure must evolve in the quantum area. As a complement last -- only yesterday, we launched the new satellite, which is a WISeSat 3U already with a post-quantum chip embedded, which is the beginning of this infrastructure. The convergence of Quantum technology and space-based infrastructure is no longer optional. It's becoming essential. First, security at the quantum level requires a new infrastructure layer, retrial network are increasingly vulnerable in a post-quantum world, a space-based system enabled Quantum Key Distribution, QKD and ultra-secure communications beyond the reach of conventional cyberattack ensuring that data sovereignty is guaranteed and resilient for government and enterprises. Second, latency coverage and independence are critical. Space-based quantum cloud allows computation, secure data exchange and AI processing to occur close to the edge, anywhere on earth without reliance on fragmented terrestrial infrastructure. This is particularly important for critical sectors such as defense, finance, energy and smart infrastructure. Third, data sovereignty and geopolitical fragmentation are reshaping the cloud landscape. Nations and regions increasingly require trusted independent infrastructure. So Orbital Quantum cloud platforms provide a neutral sovereign and tamper-resistant layer enabling countries and organizations to operate securely across border without compromising control over the data. Fourth, scalability on Quantum services depend on cloud delivery. Just as a classical cloud computing, democratized access to computing power, Quantum cloud will be the gateway to Quantum capabilities. Integrating these services with satellite infrastructure ensures global accessibility, including in regions where terrestrial connectivity is limited or insecure. Finally, space enables true resilience. Orbital infrastructure is inherently more robust against physical disruption, geopolitical conflicts and centralized points of failure. For Quantum companies, this resilience is not just a technical advantage, it is a strategic necessity. Let me now discuss the steps we have taken in building the Quantum cloud economy. Throughout the WISeSat Quantum Spatial Orbit club, we are positioning ourselves as the intersection of quantum computer, cybersecurity, satellite infrastructure and AI. This platform will support secure quantum communications, QQD and post-quantum cryptography, distributed quantum computer access via cloud services and infrastructure, trusted AI processing in a space-based environment and global IoT edge services authentication secured by quantum resistant technology. In parallel, we will continue disciplined investment through the Quantum Fund, supporting innovation and accelerating the commercialization of Quantum and post-quantum solutions across our ecosystem. With that context, I will now turn to our recent capital raises, including March 2026 financing and outline how we are deploying this capital, particularly in support of the U.S. semiconductor personalization center. During March 2026, SEALSQ raised an additional $125 million bringing our total cash position to approximately $530 million. This capital raise was undertaken with a clear and specific strategic rationale to fund the development of SEALSQ's Semiconductor personalization center in the United States, which is a high capital-intensive activity. This center provides localized high secure environment certified to common criteria such as ELS, EAL 5+ and specifically designed to customize program and inject cryptographic identities into semiconductor transforming them into trusted post-quantum resilient devices, compliant with the NSA, CNSA 2.0 framework. These are significant capital investments. Each U.S. center requires approximately $100 million in company investment, reflecting the specialized infrastructure, security accreditation and operational capabilities required to deliver this level of certification. EAL 5 plus grade cryptographic personalization at the scale. SEALSQ is already developing a comparable center in Murcia, Spain designed to serve the European market and aligned with the European Union legislation requirement. In addition, we are establishing a center in India in partnership with Cain Semiconductor that just yesterday inaugurated their OSAT, extending our personalization capability into one of the world's fastest-growing semiconductor market. Once operationally, these centers will serve as a dual strategic purpose. First, will generate higher revenue from semiconductor personalization center and cryptographic provision services, representing a meaningful and recruiting contribution to SEALSQ's top line from countries that today we are not able to reach. Second and equally important, they will provide essential physical infrastructure to support the Quantum vertical stack, the company is developing. Our ultimate vision goes beyond security as a cost, we aim to transform security into a strategic value driver by enabling new services and business model such as secure in vehicle transaction, electricity exchange between vehicles and grid, authenticated drone delivery, autonomous robotic assets control, et cetera. SEALSQ is strongly convinced of the conversions between post-quantum cryptography and Quantum technologies. We will continue to build a broader quantum strategy, particularly around our collaboration with EeroQ for their partnership in Quantum based on their line semiconductor technologies are also under active discussion. This includes ASIC design, in particular, the development of a unique cryo CMOS capability as well as the integration of advanced security to support fully secure quantum computer system. Through this approach, SEALSQ is positioned itself at the intersection of secure semiconductor, post-quantum cryptography and Quantum technology with the ambition to become a key player in building the next generation of trusted digital infrastructure in the United States. This position, nobody currently in the market has it. I will now turn back to the operator for a Q&A session, and I thank you very much for your attention for the moment. Operator: [Operator Instructions] Our first question today is coming from Matthew Galinko from Maxim. Matthew Galinko: Congratulations on the year. Maybe just firstly on the pipeline for the new Quantum products. I think you might have mentioned you have 10 customers better in kind of very active stages. I guess with the kind of with regulations starting to have an impact and teeth maybe in late '26, do you expect the number of customers you're engaging with to increase in that over the course of the year? So exiting '26, would we expect to have a significantly greater number of customer engagements on the Quantum products? Carlos Moreira: Matt, nice to talk to you again. Yes, I mean, I think there are several factors that is going to accelerate or sales in QS7001 post-quantum, not only at the silicon level but also the software level. One of them, as I mentioned, during the presentation is the CNSA 2.0 and their equivalent regulatory framework and basically is saying that companies, especially companies that they are dealing with technology that serves the purpose of critical infrastructure needs to be previously compliant. And this is an important driver because that means that governments around the world are putting that level of urgency. The second one is that we are gradually getting the certifications that they are require. This is a long process. Sometimes people don't understand how long it takes for the laboratories to certify those products. And many companies, they have expressed, as you can see on the $200 million pipeline, they have expressed strong objectives to deploy, but obviously, they want to deploy a certified product, especially the companies and organizations and they are working with government defense and critical infrastructure, which is the second driver. And I would say the third driver is the urgency created by the fact that there is now common consensus that the QD is actually arriving faster than everybody thought. Remember, last year, in January last year, we were still thinking that quantum computers will be only able to break RSA, triple desk in 30 years' time. This was reduced to 10 and now Google announced yesterday that they are actually dividing that by 10. The urgency is actually very large. And sectors like the possibility of breaking Bitcoin, let's say, then you break on wallet, imagine the consequences for the entire Bitcoin community. If one of those wallets will be compromisable because they have a quantum attack. Now Quantum companies are also expanding faster their Qubits generation. The company we have invested and the ones that we are in the process of investing, they are already able to generate between 10 and 100 Qubits. And some of them, they are predicting to be able to reach the 500 Qubits, which is what Google say that will actually be enough to break cryptocurrencies. So these factors are obviously accelerating the demand of the product in the market. We are also -- we have our first player advantage here, which is obviously hard to replicate it, even for very large companies that they don't necessarily have a PQC chip are now approaching us and say, can we come with you because one public information is Lattice Semiconductor, right, then they will be teaming with us to be able to offer to their clients PQC chips. So this is obviously -- this is a very big entry into the market because a Lattice has thousands of customers, and they will accelerate the sales of those Microchip. So I know that sometimes it looks like it's slow, but actually, this is a total different computational architecture. This is not just improving or patching cybersecurity issues. This is actually redesigning the entire infrastructure that requires time and be sure that your product is to the level to solve that problem. Matthew Galinko: And then I guess my follow-up would be on the personalization center. It sounds like you're moving forward in the U.S. It sounds like in 2026, but is it reasonable to expect that you'd be making those investments in '26 and maybe generating revenue? And sort of opening the centers in '27? Or what's a reasonable timeframe to think about for the U.S. center and then the second one that you discussed? Carlos Moreira: Yes. So you remember, originally, we had the idea to build a personalization center furnace crash from the beginning. And this is obviously a 4 to 5 year investment of time and resources. That obviously is a real estate problem, right? You have to get the authorization, the land, the building the contractors. It is a tedious process, especially now with the huge demand on data center infrastructure. So it's hard to find the right people to build those infrastructures. So this was the original old thinking, and we will build our own thing. Then we move into a more, I would say, pragmatic and fast thinking, which is let's only team with somebody that has already a legacy infrastructure, operational that they are in the same sector than we are, and they will like to upgrade their existing infrastructure to become a PQC personalization semiconductor center, which is -- it's a bit the model we have actually also in Spain. So that reduces the time to market by nearly 3 years. So that takes only around 6 months to 1 year by the time you are operational. That obviously requires buying machines because it's a big investment. You still need -- and this is the reason we raised money is because this was not in our budget, right, to develop a full personalization center, with some existing infrastructure. We have several states and they have approached us with incentives to do it in their states. We are now combining this intention to bring us to one of those states with semiconductor company, then they will be operational already in the state, and they would like to team with us to do that. So we shall be able to announce very soon. I guess, before the end of June, we should be able to announce where it's going to be located. And this obviously will have a huge potential for our deployment. That means on the chips will be personalized in the United States. That means that we will be fully CNSA 2.0 compliant because they will be chips that will be verifiable in a localized place. People can see them, can test them, can be assured and all the cryptographic keys has been located at the center itself. That will also -- we are still a Swiss French company. So many of our clients, they are saying, guys, coming to the U.S. if you want to be bigger and grow your revenue. And obviously, that satisfied that requirement. So we are -- we believe that by the end of this year, we shall be able to have something very concrete in this area. Operator: [Operator Instructions] We do have a follow-up from Matthew Galinko from Maxim. Matthew Galinko: Carlos, you mentioned some of the intense demand for land and power resources coming from the AI industry. I'm curious with some of the influence that's had on the semiconductor industry, I'm curious if that's having any impact on demand cycles from your customers or pricing or anything around margins that we might expect to hit you in 2026? Carlos Moreira: You mean from the energy sector, in particular? Matthew Galinko: Just broadly, we've seen some things about memory prices being incredibly high, storage prices being high, from high demand from AI data center builds. I'm just wondering if that ends up influencing kind of the end customer that you're selling into for your products, if that changes anything about their timelines or sourcing, pricing or anything that ends up impacting you? Carlos Moreira: We don't have that information. Obviously, there are different type of semiconductors, right? I think the -- I mean, there is an interesting debate now that quantum computers will actually redesign a bit the current infrastructure because you need less data center space, you need less computer, traditional compute capabilities. And at the end of the day, you need less chips from the memory companies, right, as quantum computers have a much powerful processing capability. What we believe is going to happen is that those chips that we are selling, it sells basically first to companies that like smart meters companies, then they want to secure smart meters because they are connecting smart meters to grids, and they are now in the process of learning how to tokenize the energy, they process through their smart meters. And also the energy that is reverted back again to the grid. So there is -- this is where we launched SEALCOIN, which is a crypto tuck-in that basically allows this market to be exchangeable and transactional between devices. So this is something that will have the first client we announced partnerships with Landis & Gyr, which is already 40 million of Landis & Gyr meters are already equipped with the software component of it and the future meters will increasingly be PQC compliant. So this is the industries which are booming now and because the current situation with oil and everything related to that is forcing companies to diversify the energy sources. And at least in Europe, this is becoming a very, very big now and our technology solves that problem because not only you secure the transaction, you authenticate the meter, you tokenize the energy collected by that meter, let's say, from a solar panel and you sell that energy to another meter in a peer-to-peer transactional process. So this is an area we see a big expansion for our capabilities. Operator: [Operator Instructions] We reached the end of our question and answer. I'd like to turn the floor back over for any further closing comments. Carlos Moreira: So thank you very much, everyone. SEALSQ sits at an extraordinary inflation point. As I mentioned during our presentation, quantum computer is no longer a distant theoretical risk. Major technology companies, government and institutions are converging on timelines that make the quantum threat to encryption near-term reality. Regulators have responded. NISA standardized post quantum algorithm. The NSA has issued CNSA, 2.0 mandates and the European Union Cyber Resilient Act, is creating binding legal obligation. SEALSQ has the product, the certification in process, the pipeline, the partnerships, the capital and the strategic vision to lead this transformation. To our employees, I would like to thank for their extraordinary commitment this year, to our partners, customers and investors, thank you for your trust and continued support. We look forward to updating you throughout the year, and we wish you all a secure and prosper year-end -- year ahead. This concludes today the call. Thank you very much for your attention. Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
Operator: Good day, and thank you for standing by. Welcome to the Nanobiotix Full Year 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Joanne Choi, Head of Investor Relations, U.S. Please go ahead. Joanne Choi: Thank you, Heidi. Good afternoon, and good morning, and welcome to the Nanobiotix conference call to discuss our full year 2025 financial and operational results. Joining me on the call today are Laurent Levy, Co-Founder and Chief Executive Officer; and Bart Van Rhijn, Chief Financial and Business Officer. Today's call is being webcast and will be available on our website for replay. Before we begin, I would like to remind you that today's discussion will include forward-looking statements within the meaning of applicable securities laws. These statements are based on our current expectations, assumptions and available information and are subject to significant risks and uncertainties that could cause actual results to differ materially. Such risks include, among others, those related to the timing, progress and outcomes of our research and clinical development programs, regulatory developments and our financial and operational performance. We encourage you to review the full description of risk factors that can be found in the documents we filed with the AMF in France and the SEC in the U.S., which are available on the Investor Relations section of our website. Any forward-looking statements made during this call reflect our views as of today and should not be relied upon as representing our views as of any subsequent date. Thank you. I will now turn the call over to Laurent. Please go ahead. Laurent Levy: Thank you, Joanne, and thank you, everyone. Good morning, good afternoon. Really happy to be here with you today to share our 2025 year and to give you a bit of perspective of what's going to happen in the next 12 to 18 months. So today, we're going to go over different aspects of things, how we've been moving the company for the past year and also give some financial highlights and then open for Q&A session. I think we've had a very rich 2025. We've been able to do many things during this year. First of all, start moving forward in a good way in the collaboration we have with Johnson & Johnson and start showing the potential of this first product, along with the potential of this deal in terms of future revenue for Nanobiotix. While doing so, we've been also pivoting the company towards the new platform, which has been a big effort from the team, and I would like to thank them all for that. While doing those operational things in parallel, we've been able to really improve our cash visibility into 2028. And this is beyond the timing of some of the expected milestones that should come from the collaboration with J&J. So altogether, we've had a rich year, and we are pleased to share that with you. And now we're going to go in some more details to give you a bit of insight. Before getting there, we would just like to remind a few things about the philosophy with which we are developing things at Nanobiotix. So as you can see here, we mentioned delivering first-in-class directly. But I think definitely, we are doing more than this. We are creating new class of drugs. That's what we have done for the radioenhancer, for the Nanoprimer and also for the last platform OOcuity. And that's really our philosophy. We don't want to do what other biotech are doing, not because it's bad because we think there are enough people working on the same target with the same technology. So we really want to bring something deep and different to help millions of patients. And that's what we're trying to do, and we continue to do. Our strategy is simple and stay in line with what we told you last year. First of all, is to continue to push and help J&J to address one of the potentially largest untapped market in oncology. And that's through our first product, radioenhancer that has been licensed to Johnson & Johnson. And beyond this product, we're really pushing hard on new platforms, starting with the Curadigm platform, which we think is going to disrupt part of how we think about drug development. And we have been starting making good progress in that regard this year. Obviously, we will come back to that in more detail. But let's focus first on NBTXR3 or JNJ-1900. What do we mean by addressing one of the largest untapped market in oncology? Well, I think for that, we still need to look at patients. And when patients are diagnosed with cancer, the vast majority of them have a local disease. It's more than 70% of patients having local disease at diagnosis. And our industry, in general, is more focused on late-stage treatment of patients when they get metastatic or have received several lines of treatment. If you think about it, if you want to have a big impact for those patients, it will be much better, if possible, to treat them at the beginning of their disease and try to eradicate the tumor when it's still at the local stage. And that's exactly what we are trying to achieve with NBTXR3. And for that, we're working with radiation therapy, which is one of the largest treatments used in oncology as more than 60% of all cancer patients are getting radiation. And we have a product that we licensed to J&J that fits this existing market with almost no competition. And as you can see on this slide, we have a very large pipeline linked to this product that have been developing across many tumors. And technically, that's just a few examples of what could be done with this product because there are many, many other patients getting radiation in different oncology indications. But let's try to look at where is the value here, what are the next key point of inflection and how are we going to bring that to next steps. This year, last year, sorry, 2025, we've been publishing additional data in different cancer types. On the top of the already established proof of concept in soft tissue sarcoma, the first data in head and neck cancer, we've been able to continue to show that this product could be widely applicable in oncology. Through 2025, we've been publishing data on head and neck cancer by talking here about recurrent metastatic patients, also pancreatic cancer, esophageal cancer, melanoma cancer and lung cancer. All those data have been showing not only that you could use safely NBTXR3 in different indications, but also start to show some potential good of efficacy for those different indications. And altogether, some consistency. In the way you administer the product, but more importantly, in the way this product could amplify the radiation therapy and potentially bring new benefits and additional benefit to patients. Let's focus on the 2 key developments. As you know, we've been transferring to Johnson & Johnson last year, the ongoing Phase III in head and neck cancer. That's a very important trial as a Phase III and could lead, if positive, to first approval and first market activity around NBTXR3. This trial is progressing well. J&J now has the full operation on this and also the financial aspects of this trial are taken care by J&J, and we still expect to get the first readout of this trial the first half of next year. You may have noticed that on the top of this Phase III, J&J has also started a Phase Ib in another population of head and neck, meaning patients getting radiation plus cisplatin. If you think about head and neck cancer, with those 2 trials, you're technically capturing all the patients frontline that have a locally advanced tumor and that received radiation and that cannot go to surgery. So technically, if you -- if you exclude, sorry, the few patients that have metastasis at diagnosis, with those 2 trials, you could capture the vast majority of head and neck cancer patients, first-line treatment with the highest unmet medical need. So that's a very important pathway and could, if positive, establish NBTXR3 as a key player in whole head and neck cancer treatment. Now there is another trial, which is equally important and potentially even more important. We're talking about here the first lung cancer trial that J&J is running. The name of this trial is CONVERGE. It's a randomized Phase II trial in unresectable Stage III non-small cell lung cancer. This trial is important for many reasons. First of all, as you may have seen, lung cancer is a very important aspect of the strategy of J&J in oncology. And it's also, as you know, a gigantic market, if not the biggest market with breast cancer. So here, starting with this trial, assuming that the data are positive, what we feel at Nanobiotix is that could be a trigger for Johnson & Johnson to start expanding the development. But if we just stick to lung cancer, that's already a gigantic market per se. Here, we're talking about Stage III, but could expand into some other indication in lung cancer. And maybe as we did not have the occasion to talk about the data that has been generated, the first part of this data, let's have a small focus on that. As I mentioned, we are talking here about patients that have a locally advanced unresectable Stage III lung cancer and the treatment of reference is radiation to chemo followed by consolidation with durvalumab. And as you can see, if you look left and right of this box, many other patients in lung cancer would receive radiation therapy frontline treatment, which could be at some point an expansion of the use of this product, assuming that this trial read positive. So what's the design of the trial? There's 2 parts in it. First, a safety leading with very few patients and then what we call a proof of concept with the randomized part of the trial where we compare the standard of care chemo radiation with durvalumab versus the same plus the product with 2 different dose. And this is randomized 1:1:1. Total should have 120 patients. And Johnson & Johnson published that they should expect the readout of the randomized part beginning of 2027. The data that have been presented this week are about the safety leading. So there's a lot of caveat around that. It's a small number of patients, but nevertheless, we can start looking at what we observe here. So we've been first showing a good safety profile with no serious adverse events linked to the treatment of the procedure and the feasibility of injection in every patient. Then what has been observed is a good first rate of response that we could see as we've seen 5 out of 7 patients responding. And equally importantly, we get 100% disease control, meaning that all those patients will go or went to durvalumab, which is not the case if you look at the details of PACIFIC trial. Many patients have been excluded post radiation and chemo for different reasons, including progression post radiation and chemo, which we did not observe so far in this clinical trial. But altogether, what we can say it's a first readout encouraging. And we can wait to see the next steps of this safety lead-in or the final data that should come as we mentioned beginning of 2027. So we can say we've been progressing a lot with this collaboration. Also now that we have transferred the Phase III to J&J, they are running most of the operation. We're still running and finishing the 1,100 trial that has completed in terms of recruitment. Now there is some follow-up of patients, and we will continue to deliver some data in that regard. And the collaboration with MD Anderson Cancer Center is still ongoing with many trials that have been completed in terms of recruitment last year, we're going to see data this year, and we may open to new trials with MD Anderson Cancer Center. But maybe let's take time to talk a little about our new platform, Curadigm. Here, we're still talking about nanophysics. We're still talking about nanoparticle, but with a different perspective with different particle with different potential benefit to the patient. Just as a reminder, for those that are new on the call, as I see many, Curadigm is about trying to help many of the innovations we see in the biotech and the pharma arena. You do notice that most of the new innovation coming out, people are building more and more complex objects. We can talk about oncolytic virus, RNA-based therapy, in vivo CAR-T, cell therapy and all the subjects because being complex, at some point, when you try to inject them IV, the liver will play a role of filter and will capture a big part of them, if not all, in certain cases. So for many of those innovations, it's very hard to have access to the entire body with a normal IV route. So rather than doing what our industry is usually doing, which is let's try to tweak this subject to make it more efficient and try to escape the liver while delivering at the right place while delivering the payload and get the good transection, for example, so you're building a lot of compromise in one object. With the Curadigm technology, we decided to build what we call a nanoprimer, a second object. This nanoprimer is injected prior to the second product, and this nanoprimer has been specifically designed to transiently getting into the liver and get it occupied for a certain amount of time. So why the liver is busy? When you inject the second product, then it is much less captured by the liver and can have access to many other organ from the body. So what you could do with this approach is improving pharmacokinetic of a product, allowing when it's not possible to escape the liver, reducing liver toxicity or combination of all this. So there are many, many opportunities and many, many applications we could do with this technology. And now a big part of the team is focused on the development of it. What we've been doing lately is really continuing pushing, meaning filing for 4 new patents applications to continue to build our supremacy with this technology. We also have presented positive new in vivo preclinical combination with different type of combination. And more importantly, we are moving forward towards the IND, and we started the CMC activity with the start of the GMP manufacturing and also preclinical studies allowing to file for an IND. And while doing that, that the internal program at Nano, we've been expanding a lot our external reach out. We have now more than 20 MTAs that we've been signing with pharma or biotech, where they have taken our product and they are testing it with one of their products to either improving the pharmacokinetic of this product or reducing liver toxicity, and we've done that with many different technologies for different therapeutic areas like oncology, rare disease, CNS disorder. So it's moving quite well. And then we expect in a not-too-distant future to start transforming some of those MTAs into deals. But globally, the way we see the value of this platform and the 3 pillars that we are using to push it is first, continue to build and protect the technology while building an internal pipeline. We want to have our fully owned product to be developed up to a certain stage. While we are building or piling up deals with different partners, pharma and biotech. And of course, because of all this, we need to prioritize and build the right infrastructure to be able to build to manufacture and to provide this product to many partners and to our internal pipeline. So things are moving well, and we expect to get a bit more update and new data on this platform coming before the end of the summer. Just of note, last year, we've been entering a new index on the Euronext market, which is the SBF 120, and that's an index that covers 120 largest French listed company by market and cap liquidity. So it does give us a bit more institutional visibility, and we've seen through that some of the new investors coming on the top of specialized biotech investors that have entered our stock last year. And I'm going to take this to give the mic to Bart to talk about the financial part of this presentation. Bart Van Rhijn: Thank you, Laurent. Good morning and good afternoon, everyone, and thank you for joining us today. Over the past year, we've materially strengthened the company's financial foundation, positioning us to advance to upcoming value inflection points with greater resilience and strategic flexibility. This progress was supported by 2 strategic initiatives that meaningfully reshaped our capital requirements and hence our long-term operating flexibility. First, we amended our global licensing agreement with Janssen in a way that materially improves our financial profile. Under the revised terms, we have removed the vast majority of our funding obligations for the Phase III NANORAY-312 study while retaining significant upside through milestone payments that could total hundreds of millions of euros over the next 24 to 36 months. This amendment materially enhances capital efficiency, improves cash flow visibility and better aligns the partnership structure with our long-term strategic priorities. Second, we strengthened our balance sheet to the securing of a nondilutive royalty financing with Healthcare Royalty Partners for up to $71 million. This transaction provides incremental capital while avoiding shareholder dilution extends our projected cash runway into early 2028, excluding potential milestone inflows. Taken together, the strategic initiatives that I just outlined enhance our financial flexibility, reduce near-term funding requirements and position the company to sustainably advance its pipeline while maintaining a disciplined approach to capital allocation and long-term value creation. Turning to the next slide. Just a brief overview of the deal we announced back in October. We're extremely pleased to have partnered with Healthcare Royalty Partners on this transaction, bringing up to $71 million of nondilutive capital into the company. We selected Healthcare Royalty Partners following a comprehensive evaluation of financing alternatives. And given their deep sector experience and expertise, long-term investment outlook and strong record of supporting innovative biotech companies, we selected to partner with them. We believe that this partnership reflects a high degree of alignment around the long-term potential of JNJ-1900 and our broader strategic objectives. Critically, this royalty structure ensures that our partners' return is directly linked to the success of our lead program, which aligns incentives while avoiding repayment obligations beyond the nominal value of the bonds. Moreover, this is a construct that is kept from a time and amount perspective and therefore, a capital-efficient way to finance the company beyond anticipated value inflection points to ensure we maximize the value for our shareholders. This financing not only ensures we are funded through those critical inflection points, but validates the commercial potential of JNJ-1900 and supports our continued progress towards long-term sustainability and profitability. Moving over to our full year financial highlights. For the full year 2025, we recognized positive revenue of EUR 32.6 million compared to negative EUR 7.2 million for the year ended 2024. As a reminder, the negative revenue recorded in 2024 was primarily driven by a onetime recognition of the net liability to Janssen following the transfer of the sponsorship of the NANORAY-312 study. The positive revenue recognized in 2025 reflects a onetime accounting impact of EUR 21.8 million associated with the amendment to a licensing agreement that we executed in March 2025. This amendment, as Laurent alluded to earlier, eliminated the vast majority of the company's development cost obligations related to the NANORAY-312 study. This technical accounting effect related to the transfer of sponsorship and the cancellation of current and future study-related costs resulted in a corresponding impact on our reported top line, which is nonrecurring. Said differently, as these changes in 2024 and 2025 are considered purchase price adjustments from an accounting point of view, these results flow through the revenue line in our profit and loss account. Let us turn to R&D expenses. These include clinical and manufacturing expenses related to the development of JNJ-1900 and preclinical pipeline activities and totaled EUR 23.1 million for the 12-month period ended December 31, 2025, which compares to EUR 40.5 million for the 12 months ended December 31, 2024. As previously discussed, the significant year-over-year decrease of approximately 43% was primarily driven by the removal of development costs associated with the NANORAY-312 study following the transfer of sponsorship to Janssen. This transition resulted in the elimination of related clinical and operational expenditures previously borne by the company. More broadly, R&D spending during the period reflects continued prioritization of capital-efficient development across our clinical and preclinical programs, while maintaining investment in key manufacturing and pipeline activities, supporting the long-term advancement of our all platforms that Laurent just spoke to. Selling, general and administrative expense for the 12-month period ended December 31, 2025, were flat to significantly -- sorry, to slightly down year-over-year at EUR 20.4 million compared to EUR 20.5 million, reflecting continued expense control. Net loss attributable to shareholders was EUR 24 million or EUR 0.50 per share for the 12-month period ended December 31, 2025, reflecting a year-over-year decrease of 65%. The decrease was primarily attributable to the one-off noncash positive revenue recognition accounting impact together with a meaningful decrease in R&D expense resulting from the removal of the funding obligation for the 312 study. This compares to a net loss of EUR 68.1 million or EUR 1.44 per share reported for the same period last year. As we turn to cash and cash equivalents, as of December 31, 2025, that amounted to EUR 52.8 million compared to EUR 49.7 million as of December 31, 2024. Based on the current operating plan and financial projections, Nanobiotix anticipates that the cash and cash equivalents of EUR 52.8 million as of December 31, 2025, will fund its operations into early 2028, assuming the receipt of the remaining $21 million from Healthcare Royalty Partners expected in Q4 of 2026. To conclude, we remain focused on disciplined execution as we advance through key clinical and strategic milestones. We will continue to prioritize prudent capital allocation, operational efficiency and balance sheet resiliency and believe the foundation we have built positions us well for the periods ahead as we work to deliver long-term value for our stakeholders. Thank you. And now I would like to turn the call back to Laurent. Laurent Levy: Thank you, Bart. Just in a nutshell, what's coming for the 12, 18 months in front of us, we will continue to push with our new platform Curadigm and we'll continue to deliver new data and also visibility on how we're going to transform that into business. On the top of that, the NBTXR3 or JNJ-1900 development is still key in our development, as should be the critical next step for value creation as we expect to get the results of the Phase III in first half of '27 and the results of the Phase II in lung cancer in early 2027. Besides this, this year, we're going to deliver 4 different results of clinical trials, which 3 of them have been completed, so you will be able to see the final data for this. The key takeaway for today, if we think about 2025 and what's coming is the J&J partnership and the development of NBTXR3 is moving in the right direction with amplification of the development through multiple trials. We've continued to show that potential use of NBTXR3 across different indications, which reinforces the potential value of this product. And as mentioned, we've continued the Curadigm development, a new class of drug that we intend to bring to life. As Bart just mentioned, we're getting in a good financial position as our cash visibility is going into 2028 beyond key milestones in head and neck and lung and potentially other milestones. And as you have just seen, we have multiple near-term data readouts that could continue to show, assuming it's positive, that NBTXR3 could really improve life of millions of patients. Thank you very much for your attention, and now we're going to open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Tara Bancroft from TD Cowen. Tara Bancroft: So my question is about the lung data that you guys showed from CONVERGE yesterday that were really interesting even it's only in the first 7 patients. So we were hoping you could give us some context for how you benchmarked that to the 45% to 50% ORR. We ask because PACIFIC seems to be the best comp here where ORR was actually around 30%. So just curious to hear your thoughts on that. And then on follow-up, when were these assessments taken that were in the poster? And how does that length of follow-up so far play into your level of confidence in the data that potentially improving even further in Part 2? Laurent Levy: Thank you, Tara. Well, I think there are a few paper or historical control we could look at comparator for that. As a context, we are using the PACIFIC regimen in this trial and patients getting radiation plus chemo and if they do not progress, then they go to durvalumab. If you look at the PACIFIC paper, they start with 983 patients that received radiation plus chemo. And out of that, only 70% will be randomized, 2 patients in the direction of durvalumab, one with placebo. So there is in the evaluation of the response rate in the PACIFIC paper, something telling 40% -- 48% of response, but that excludes the 30% patients that have been not treated after that with durvalumab. So that's the response rate therefore after radio chemo. And if you look at the response rate post durvalumab, then it's going down, but it's going down slower than the placebo arm. And here, you find the 27% response that you probably mentioned. But again, this 27% response is excluding the patients that have been frontline excluded from the trial before randomization. So altogether, if we take 40%, 50%, that's what we can find in some other paper as what radiation plus chemo is doing for those patients and close to what they find as an optimization in the PACIFIC regimen. But I think that's just the first part. The most important part is how this evolves over time. Because what we see in PACIFIC, some patients did not get durva, 30%, and then the rate is going down over time. So I think if [R3] can provide a real local control, then we should see something different happening versus what you can observe with durvalumab. But this will be answered a bit later and potentially definitely answered when we will see the results of the Phase II beginning of next year. Operator: Your next question comes from the line of Clemence Thiers from Stifel. Clemence Thiers: Just to come back to the CONVERGE study. Full data will be in early 2027. Is there any chance you or J&J could file based on that study? Or do you have to run a Phase III afterwards? That's the first question. Laurent Levy: Thank you for the question. Well, first of all, we can talk for our partner. J&J now is running the CONVERGE trial and has the license on the product. So that will be their decision. And I think it's a bit early to talk about that. That may be a question we could ask when we see the data coming from the Phase II. But if the data are excellent, everything is open. But again, that will be a J&J's decision to move that direction or to do a proper Phase III after that. But we will hope for the best. Clemence Thiers: Yes. That was worth the shot. And the second question, in 2026, we'll have all those additional data sets from your IO study and MD Anderson studies. Are those the last ones in the sense that will you be after that at the stage where you again J&J decide whether you move forward with it or not? Laurent Levy: Yes. I think some of those trials have been completed like the melanoma cancer trial, the lung re-radiation and the last one, esophageal cancer. Just to know that we are now looking with MD Anderson as opening some potential new trial to explore new avenues, but that's something that will come a bit later. Obviously, out of all those trials, we got a lot of signs of safety, feasibility, potential good efficacy for the product. And now it's within the hands of the J&J, but also discussing with us about potential next step, but nothing that we can say at this stage. I have one mention to do, is to maybe take a particular look at the MD Anderson cancer trial about lung reraadiation. This trial, the recruitment has been completed last year, and we'll see the final data this year on more patients with more follow-up. I think this trial is very important because it's not like the same population that is treated in CONVERGE, but to a certain extent, could be seen as a surrogate of what we could observe in CONVERGE. So we will pay particular attention to this trial, but also we'll bring that to your attention. Operator: Your next question comes from the line of Jonathan Chang from Leerink Partners. Albert Agustinus: This is Albert Agustinus, on for Jonathan Chang. Congrats on all the progress. So my question also reflects on the CONVERGE data, is how do we extrapolate these results to your other ongoing trials and potential indications? And secondly, if I may, how do you foresee JNJ-1900 will be positioned within the landscape of non-small cell lung cancer treatment paradigm? Laurent Levy: Well, I think lung stage III cancer, like locally advanced head and neck cancer and other tumor are different because they are coming and they are in different organ, but they all share something is that if you can improve the local control and have a strong rate of response and CR, then you can deeply change the PFS and overall survival. And what our product does is improving the absorption of energy, killing more cells. And we know when you have a local disease, killing more cells may lead to more control. So that's the basic thesis that led us to start developing NBTXR3 and going into frontline treatment when patients have a local disease. And that's also what J&J is going after if we think about the 2 trials in head and neck and this trial in lung cancer. For us, it does establish the strong power of having local control transforming into benefit for patients. And starting from this point, then we could anticipate or imagine the diffusion of this product across different populations that are also getting radiation. But it's always pure to demonstrate that this work when local control plays the key role in the survival and quality of life of patients. So that's how we will extrapolate the results of CONVERGE, but also that's what we started to do with the randomized data coming from soft tissue sarcoma, which was a similar situation, even though this is really different. And that's a good start to any tumor type. And if we think about how to extrapolate to other indications, that could be a path. Now for lung cancer, there are many patients receiving radiation beyond lung Stage III. It is around 77% of lung cancer patients getting radiation. And not to mention that small cell lung cancer is also another indication where radiation is key. So we could imagine, but again, that will be J&J's decision to spread this product across different lung subpopulation. Operator: We will take our next question. And the question comes from the line of Swayampakula Ramakanth from H.C. Wainwright. Swayampakula Ramakanth: This is RK from H.C. Wainwright. I also have a couple of quick questions on CONVERGE. So in your mind, do you see J&J when they're spending time on both NANORAY-312 and CONVERGE, do you see them sourcing equal time for both of these projects? And additionally, does -- do you have any data from your partner regarding abscopal effect in the lung? Because injecting into lung lesions are potentially technically challenging. So how do we -- how do you and your partners see this being a successful therapeutic modality in the lung? Laurent Levy: Well, first of all, about the bandwidth or the investment in lung versus head and neck. I think a Phase III is always bigger than the Phase II. And in that case, that's a very big Phase III versus the CONVERGE trial. So there's much more people working on one than the other, which is normal given the size of things. But the attention is equally important from our perspective and what we can observe. And obviously, as I mentioned previously, the lung is a very important trial for J&J and also for us because if it does work, that's really opening a big market for JNJ-1900 or NBTXR3. But let's say that what we observe is they're pushing all front to make sure that all this could happen. Now on the abscopal effect, I think that's a big question. That's an effect we already observed that in melanoma patients, head and neck patients, some of the lung patients, when they have met with or without primary tumor, when we do inject one lesion and irradiate that lesion, we see a distant effect in the non-irradiated non-injected lesion. So that's something we start observing in many different clinical situations. That will be very useful to understand and to investigate when we think about metastatic patients. But for the vast majority of patients getting radiation, they have no met. They have a local or local regional disease. And here, local control is much more important than any potential immune response. And if we can provide it through local injection of the particle plus the radiation, that could be a win. And in the case of local regional when some of the lymph node could be involved, then we've seen in different trials now that we are able to inject lymph node on the top of the primary tumor, which could add also an additional immune response. But RK, if we just step back a minute, I think this abscopal effect or the possibility to trigger an immune response is really critical for met, as I mentioned. But also if you think about local regional disease where radiation plays a role, usually the local regional area is irradiated, which is not in favor of having an immune response because the X-ray, as we know and have seen, could kill some of the activity of the immune system. So here, the local control brought by physical treatment like radiation with the addition of JNJ-1900 is where we should play and where we should try to win. Swayampakula Ramakanth: One quick question on Curadigm. You did present some preclinical data previously. Now thinking -- going forward, since you also have collab MTAs with multiple parties. Are you planning to initiate an IND from the internal pipeline? Or do you expect some of these external collaboration partners to file first? How should we think about that program going forward? Laurent Levy: We are pushing both because we think building our internal pipeline will go through have a first proof of concept of this product into human, and that's what the team is working on, not only by manufacturing the product and starting pre-IND studies, but also designing the first proof of concept we want to bring to life. And if we think about it, as soon as we have established the safety and feasibility of this product into human, that's also opening many more combination possibilities with other products that are already into clinical development. So that will not only push forward our pipeline, but also will open many other opportunities for collaboration and licensing out. Operator: We will take our next question. Your question comes from the line of Kiara Montoni from Van Lanschot Kempen. Unknown Analyst: This is [indiscernible] on for Kiara. So for the J&J driven Phase II trial in lung, do you expect that J&J will report an interim before the readout in early 2027? And if they do, what do you think they will most likely disclose the ORR or the post durvalumab from Part 1? Laurent Levy: Thank you for the question. So yes, that's true. There are multiple readouts in this trial, different rate of response depending on timing, PD-L1 and also potential measurement as exploratory for other more systemic endpoints like PFS and OS. Now we can't talk for J&J. What we can say is what has been said publicly, which is the readout of the Phase II beginning of '27. But in between, who knows. Unknown Analyst: Okay. And on the MD Anderson lung reirradiation trial, you said you expected to read out in 2027. Is there any possibility you can narrow down on the timing? Laurent Levy: We filed for different abstracts. If first one accepted, that should be around the summer. Operator: We will take our next question, and the question comes from the line of David Dai from UBS. Xiaochuan Dai: Congrats on the progress. So a couple of questions from me as well. So just on the CONVERGE trial, so just thinking about the JNJ-1900, how do you think this early post-CCRT response we saw from the Part 1 could translate into durable load control and PFS benefit in Part 2? And I have a follow-up after that. Laurent Levy: Well, I mean, that's depending on how durable will be the response. But generally what we have observed in other clinical trials with different disease, when you start getting radiation, you usually get the optimal efficacy of radiation a few months after the end of the last session. Here, patients are going directly, I mean, rapidly into durvalumab. The good point is that, first of all, all of them went to durvalumab, which is not the case when you look at the overall population. And now we need to wait the next set of data to conclude on that. But if we believe of what we have seen previously in other trials, we should expect a much greater local control. And now we'll see how this potentially impacts a more systemic aspect of things for the patient. Xiaochuan Dai: Got it. Okay. And then just on -- for next follow up, just on the Part 1 study here, will we expect another follow-up of this data from the Part 1? And also for the Part 2, which we're expecting to have some data in early 2027. Could you just help us understand a little bit more around what's the sort of expected data readout? Would it be OR? Or should we look at PFS as well? Laurent Levy: I don't know. What we know is that all this that you mentioned are endpoint of the trials, but we don't know what J&J is going to communicate yet. Operator: Your next question comes from the line of Michael Schmidt from Guggenheim. Michael Schmidt: I had a couple more on the CONVERGE data from yesterday. Obviously, very interesting. Could you confirm whether Part 2 of that study is enrolling? Or are still patients being added to Part 1, sort of the safety lead-in component of the trial? Laurent Levy: Yes. Part 1 has been completed and the Phase II part, randomized part is enrolling since last year. Michael Schmidt: Okay. That makes sense. And then, yes, so just -- so you did note the sort of next update in early 2027. Is your impression that this is sufficient for your partner to potentially make a Phase III go decision? Or do you think more follow-up may be needed to look at things like DFS or maybe even OS to make that move into a large Phase III trial? Laurent Levy: That's a very good question, Michael. I think overall, first of all, a response in those patient population, if you find a high rate of response, then you should get an impact and a correlation with PFS and OS. I think the number of CR globally also could be a surrogate of that as PACIFIC did show very little rate of CR, less than 1.7% in the post [indiscernible] treatment. But globally, patients, if you look at the dynamic of the curve, they're relapsing quite fast in [indiscernible] arm and versus radio plus chemo. So I think comparing all those data, we can say if you beat that bar, then you move to Phase III directly, you don't need PFS, you don't need OS. I think that should be a mix of results linked to number of patients getting to [indiscernible] because usually 30% are not, number of patients getting response, number of patients getting complete response and then you can start following PFS and OS to see. But a combination of all these or just a few of them, depending on the magnitude could be enough. But at the end, that's J&J's decision to look at this and to take the path moving forward. Michael Schmidt: Okay. Makes sense. And then another one, I know this may be, again, difficult to answer, but what is your sense how J&J may prioritize other indications beyond head and neck and lung. For example, breast cancer is obviously a very big opportunity in prostate as well. And to what degree do you think they're incorporating data that's sort of coming out of the ISTs that have been ongoing? Laurent Levy: Well, that's a tricky question. We can't answer. What we can say is you can see the priorities of J&J in terms of indications like lung, bladder, head and neck and so on. So as you mentioned, breast cancer is not part of those priorities. Also, we have all the trials we've been running or are still running with MD Anderson that could serve as a base for expansion. But even though we have a lot of discussion with J&J's team about optionality, there's nothing we can say at this moment. Michael Schmidt: So we'll keep our eyes out for any other updates. Operator: [Operator Instructions] We will take our next question, and the question comes from the line of Shan Hama from Jefferies. Shan Hama: Just 2 from me, please. Actually, just on potential indication expansion on J&J's part. I know there's obviously not much you can comment on their behalf. But the indications that NDA is working on, is there scope for J&J to actually expand the [R3] program into those indications, so pancreatic, esophageal, et cetera? That's my first question. And then I can ask a follow-up after. Laurent Levy: I'm sorry, I'm not sure I got. The question was can they or will they? Shan Hama: As in, can they?, are they able to? Laurent Levy: Yes, of course, they are able to. And obviously, all the clinical trial we've been running serve really as a base for discussion with them, and they can. Shan Hama: Okay. That's clear. And then just actually on cash burn. So obviously, R&D has come down pretty sharply post the transfer to J&J. So what's the sort of steady-state annual cash burn we should assume through to 2027? Bart Van Rhijn: Thank you for the question. We don't provide specific forward-looking guidance to the individual years, and we refer to the cash runway that is in early 2028. But we have a very disciplined approach to how we allocate capital. So what you've been used to in the past few years, you should expect to continue to see from us. Maybe one high-level comment is that as the 312 costs have been transferred to our partner, Janssen, we should expect to see development cost on the new platforms that Laurent talked to. Operator: Your next question comes from the line of Clement Bassat from Portzamparc BNP Paribas. Clément Bassat: I have 2. First, I was wondering how much R&D you spent in oncology in H2? And how much was allocated to Curadigm just in order to assess the shift? And secondly, regarding the mechanism of Curadigm, my understanding is that with the Nanoprimer, we will reduce the effective dose level, but at the same time, we may also reduce the dose. So could you please provide some insight into the relationship between these 2 dose, if the relationship is linear or not? And if this could lead to narrowing the trend between these 2 dose due to the suspension of the liver clearance? Bart Van Rhijn: Let me try to address the question on the R&D spend and how that is proportion between our 3 new platforms. What I can share is that at this time, and this is relating to full year 2025, the spend on Curadigm has been ramping and should be in the low single-digit millions. Again, as we start to pivot and have pivoted meanwhile to these new platforms, that spend will obviously increase. But for the past year, it was a smaller amount compared to the total R&D spend. Laurent Levy: So to your second question about Curadigm, I think the answer is yes, there is a correlation, but will depend also on the need of the product. Let me try to get to that. So what the Nanoprimer does is by occupying transiently the liver, it will allow a second product to circulate more freely. So if this product had a strong accumulation in liver, but not much toxicity, what you're going to play on is the ability for the second product to circulate more freely and to reach other targets that will not be able to reach normally. But if this product has a high liver toxicity, would prevent him to be used at the right dose, then you will play more on the liver toxicity by preventing the accumulation while allowing some circulation of a therapeutic dose. But there's always a correlation between the dose of the Nanoprimer and the quantity that you will avoid to be captured in the liver and the quantity that will be allowed to circulate. And there is a link to that but different products will request different outcome, and that's where we're going to play A or B, meaning more efficacy or less safety issue. In some cases, we can play on both. Operator: This concludes today's question-and-answer session. I'll now hand back for closing remarks. Laurent Levy: Everyone, thank you very much. It was a pleasure, as usual, to talk to all of you. And I think that you are numerous today assisting to the call. It's a very good thing and hope to see you all in a short for more news about Nanobiotix. Thank you very much. I wish you a great day. Thank you. Bart Van Rhijn: Thank you all. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: Good morning, everyone, and welcome to today's PVH Fourth Quarter 2025 and Full Year Earnings Conference Call. [Operator Instructions] Please note this call may be recorded. [Operator Instructions] It is now my pleasure to turn today's program over to Sheryl Freeman, Senior Vice President of Investor Relations. Sheryl Freeman: Thank you, operator. Good morning, everyone, and welcome to the PVH Corp. Fourth Quarter and Full Year 2025 Earnings Conference Call. Leading the call today will be Stefan Larsson, Chief Executive Officer; and Melissa Stone, Interim Chief Financial Officer and Executive Vice President, Global Financial Planning and Analysis. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material. It may not be recorded, rebroadcast or otherwise transmitted without PVH's written permission. Your participation constitutes your consent to having anything you say appear on any transcript or replay of this call. The information to be discussed includes forward-looking statements that reflect PVH's view as of March 31, 2026 of future events and financial performance. These statements are subject to risks and uncertainties indicated in the company's SEC filings and the safe harbor statement included in the press release that is the subject of this call. These include PVH's right to change its strategies, objectives, expectations and intentions and the company's ability to realize anticipated benefits and savings from divestitures, restructuring and similar plans such as the actions undertaken to focus principally on its Calvin Klein and Tommy Hilfiger businesses and its initiatives to drive more efficient and cost-effective ways of working across the organization. PVH does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimates regarding revenue or earnings. Generally, the financial information and projections to be discussed will be on a non-GAAP basis as defined under SEC rules. Reconciliations to GAAP amounts are included in PVH's fourth quarter 2025 earnings release, which can be found on www.pvh.com and in the company's current report on Form 8-K furnished to the SEC in connection with the release. At this time, I'm pleased to turn the conference over to Stefan Larsson. Stefan Larsson: Thank you, Sheryl. Good morning, everyone, and thank you for joining our call today. I want to start by thanking our teams around the world for delivering a strong fourth quarter and finish to the year on our multiyear journey to build Calvin Klein and Tommy Hilfiger into their full potential and make PVH one of the highest performing brand groups in our sector. While there is, of course, more work to do, we have made important progress on this journey, and I will discuss this more in a moment. In the fourth quarter, we exceeded our guidance across revenue, operating profit and EPS. Total revenue for the company was up mid-single digits on a reported basis above our guidance and flat in constant currency. Importantly, we drove better-than-expected gross margin performance in the quarter with sequential improvement across all regions. We continue to manage our operating expenses thoughtfully while strategically increasing marketing spend behind our 2 iconic brands, and we drove a 10% non-GAAP operating margin, which would have been 11.7% without the gross tariff impact. For the full year, we delivered on our financial guidance across both the top and bottom line. And as planned, we returned to revenue growth for the year. Despite the choppy consumer and macroeconomic environment, we delivered a non-GAAP operating margin of 8.8% for the full year, above our guidance, including the impact of tariffs. When excluding the impact of gross tariffs, operating margin was 9.6%. We continue to simplify our operating model and drive more efficient ways of working, generating over 200 basis points of annualized cost savings. We further strengthened our supply chain, ending the year with a good inventory position, up 5% versus last year or up 1% when adjusted for tariffs, positioning us well for spring 2026. Finally, we returned over $560 million of capital to shareholders through our share repurchases, representing 15% of our shares outstanding. Looking ahead, while the macroeconomic environment remains uncertain, we have started 2026 with positive momentum and higher spring season sell-through trends across both brands in all 3 regions. While wholesalers remain cautious and the consumer macro environment continues to be uneven, our fall 2026 order books for Europe are positive. As we speak, we're in the middle of some of the most important weeks of the quarter with Easter this coming weekend, which fall 3 weeks earlier than last year. For Calvin Klein, we have strengthened our global product capabilities and have addressed the translator operational challenges we faced in 2025. Our deliveries are now on time and our going margins are back on plan. This year, we will strategically increase marketing spend and further invest in the shopping experience across digital shop-in-shops and store concepts. For fiscal 2026, we expect to grow total revenue slightly on a reported basis and be flat to up slightly in constant currency with planned growth in direct-to-consumer across both brands and all 3 regions. We expect our non-GAAP operating margins to hold steady at 8.8% or 11% excluding the gross impact from tariffs. Additionally, we intend to continue to return capital to shareholders with a target of at least $300 million this year. Now let me share a brief update on what drove our performance for the fourth quarter and full year 2025. Starting with Calvin Klein. In 2025, we continue to drive strong brand relevance for Calvin in both product and marketing. We sharpened our focus on our core categories strategically infusing innovation and newness in the worlds of underwear and denim supported by full funnel 360 marketing. We reinvented our biggest underwear franchises with the launch of the icon cotton stretch, amplified with Bad Bunny and [indiscernible], which grew 20% in men's and 13% in women's driving our broader underwear business up low single digits versus last year. We also grew our fashion denim category, which represents over 50% of our denim business with high single digits. In addition, Calvin returned to the runway, creating a strong halo for the brand. And during the year, we opened new Calvin Klein flagship stores in both Tokyo and New York City. In the fourth quarter, we leveraged key consumer moments and deliver strong engagement and results, generating higher full price sales versus last year and sequential improvements in gross margin. Turning to Tommy Hilfiger. Throughout the year, we took Tommy's iconic DNA of classic American cool and cut through in major cultural moments from the Met Gala to F1: The movie. We also launched our new partnership with Cadillac Formula One in Q4 with a positive consumer response. In addition, we announced one of the most significant new global partnerships for Tommy, our first football partnership with Liverpool Football Club. This news was the #1 most engaged post ever to go out on Tommy's social channels with strong resonance across Europe and driving immediate spikes in e-commerce traffic. In the marketplace, we further improved our e-commerce experience, opened new stores globally and in wholesale, we unveiled our new shop-in-shop concept at the iconic Gallery Lafayette in Paris. And finally, in the fourth quarter, just like in Calvin, we leaned into our best product categories where we drove strong growth for our iconic cable knit sweater franchise with sales up over 50%. Overall, when I look at our global business for the holiday, we navigated an uneven macro environment across both brands. And I was particularly pleased to see that where we brought newness into key product categories, we were able to drive growth with higher full price sell-through. Now I will turn to our regional performance, starting with Europe. For the full year, the region declined 1% in constant currency, with 2 quarters of strong D2C growth in the first half, followed by a more muted consumer in the second half. In wholesale, we delivered sequentially improving order books each season in Europe returning to growth beginning with our fall '25 season. In the fourth quarter, revenue was down low single digits in constant currency, in line with guidance and against the muted backdrop. In constant currency, wholesale was down 1% as positive order book growth was offset by lower in-season replenishment and D2C was down mid-single digits. For both Calvin and Tommy, the areas where we have introduced the most product innovation into key categories continue to drive growth and our focus continues to be on scaling that innovation across bigger parts of the assortment. We also continue to work more closely than ever with our wholesale partners. And in January, we held our second annual Global Partner Day to kick off the fall '26 market launch. We had over 500 key partners in attendance and received the strongest and most positive feedback yet. Next, turning to the Americas. For the full year, we delivered mid-single-digit growth driven by our wholesale channel and strength in our e-commerce business. The consumer backdrop has been uneven. And in stores, industry traffic trends were increasingly challenged, resulting in our total D2C business down low single digits for the year. In the fourth quarter, we grew overall revenue by 4% driven by wholesale as well as continued growth in digital. D2C declined mid-single digits due to lower store traffic, partially offset by AUR growth. Product-wise, we saw strength in denim for both men and women. Our wholesale business increased high teens partly driven by the take-back of our women's sportswear and jeans business with underlying growth in wholesale, up mid-single digits. Despite lower traffic, we drove greater full price selling for the region and over 200 basis points in sequential year-over-year gross margin improvement. Moving to Asia Pacific. For the full year, revenue declined mid-single digits in constant currency or down low single digits, excluding the timing impact from the Lunar New Year calendar shift. But importantly, we delivered sequential improvements in our top line performance each quarter over the course of the year. In the fourth quarter, excluding the Lunar New Year calendar shift, our APAC revenue returned to growth and was up low single digits in constant currency. In digital, we delivered the second consecutive quarter of high single-digit growth as we successfully concluded Double 11 and the holiday period. Overall, we are seeing good conversion and positive traffic improvements across key markets, including China and Japan. We continue to execute with discipline in the region, driving gross margin improvements and reinvesting into marketing with key local talent. Both brands were proud to participate as first-time exhibitors at the China International Import Expo, building on our long-standing presence and commitment to the market. Before we turn to 2026, I would like to take a moment to reflect on the progress we have made through our multiyear PVH+ Plan journey to date. While we have important work still ahead of us, since 2022, we have navigated a series of external headwinds, including exiting our Russia business, the introduction of tariffs, and we have also navigated specific geopolitical dynamics. Throughout this period, we have remained steadfastly focused on executing our plan and delivering significant operational progress across all 5 critical areas of the PVH+ Plan, winning with our Hero products and categories, driving strong consumer engagement strengthening our distribution in the marketplace by deepening our partnerships with key wholesale partners and expanding our D2C business, building a global demand-driven operating model and driving operational efficiencies to power our investments in growth and in marketing. Through this work, we have built a more systematic, repeatable approach which is a powerful foundation as part of our continued journey to build Calvin Klein and Tommy Hilfiger into their full potential. As we said we would, we divested profit-dilutive non-core businesses putting 100% of our retention behind our 2 globally iconic brands, Calvin and Tommy. And on an underlying basis, ex divestiture we have grown those brands at 2% CAGR in constant currencies since 2021. At the same time, we have built a strong leadership team with experience to unlock our brand's full potential. Across our regions, we increased our Americas profitability to double digits ex tariffs. We drove higher quality of sales through our initiative in Europe, and in APAC drove a 5% growth CAGR in constant currency over the period. And as our important work continues, one of the biggest accomplishments is how we have driven brand relevance with the consumers who matters the most going forward. Our most recent consumer research not only confirms that Calvin Klein and Tommy Hilfiger are 2 of the most recognized and loved brands globally. Both brands also outperformed with the Gen C and younger millennial consumers. And within this, both brands are performing strongly with the highest value consumer segments the status-oriented shoppers and style enthusiasts. This is important because these consumers shop more often have higher order values and are more loyal. This is a direct result of our multiyear work to ignite Calvin's and Tommy's brand DNA and make them even more relevant for today. A key part in our consumer engagement is the strength we have built on social, where Calvin has the most followers and the highest engagement of our competitive set with 44 million followers across our 4 biggest platforms. Tommy has the third largest following in the industry with 31 million and the same leading engagement levels as Calvin approximately 4x higher than most of our competitors. In addition, our consumer insights confirm clear product authority in some of the biggest and growing categories in the market. For Calvin, this means the right to play and win in underwear, denim, outerwear and knits. And for Tommy, it means the right to play and win in outerwear, sweaters, shirts and knits. The strength we have built with the consumer guide our path forward. We are increasingly targeting the best consumer segments for each brand as we expand our product strength across the top 5 categories. We put innovation and newness into creating the best product franchises, and we drive our consumer engagement with a full funnel 360 approach. To make this possible, we are leveraging the strong global product and marketing capabilities for both brands that we have worked to establish. We are also well underway to successfully transitioning the licensed women's sportswear business in the U.S. wholesale channel for both brands to ensure that our product creation across both men's and women's are brand right and positioned to drive sustainable, profitable growth. In the marketplace, we have both increased our focus on our key wholesale partners and have meaningfully strengthened our D2C execution, which now represents approximately half of our sales, up from 44% in 2021. We have done this while elevating the brand experience across digital and stores, delivering digital penetration that is nearly doubled pre-COVID levels. We have also made significant operational progress in our journey to become a more data and demand-driven company, improving inventory management and building new capabilities, including in AI. Our new collaboration with OpenAI, which we announced in January, we will accelerate that progress. Importantly, we drove over 300 basis points of cost savings, including 200 basis points of annualized cost savings from our cost efficiency initiatives. Over the past few years through the disciplined PVH+ execution and despite the multiple external headwinds, we have built a strong foundation in both Calvin Klein and Tommy Hilfiger to be able to drive sustainable profitable growth with increasing pricing power across all 3 regions. As I've said before, every season, you will see us expand on this further. Now as we look ahead, I want to share our actions for 2026 that will help us do just that. Let me start with Calvin Klein. We can't talk about Calvin Klein today without referencing Love Story, the TV show, the cultural resonance of Love Story reinforces the timeless power of the Calvin Klein brand and its authentic place in American fashion with a premier driving a search in online interest in Calvin. We're capitalizing on the love story effect in multiple ways that are true to the brand, leveraging the '90s focus in our product assortment and marketing and supercharging it in e-commerce and stores with a spring 90 [indiscernible] on calvinklein.com that is driving above-average social engagement and click-through rates. We are also styling key talent, including actress Sara Pigeon, who placed Caroline [indiscernible] Kennedy at the recent Vanity Fair Oscar party, and we hosted a New York Magazine pop-up collaboration at our new SoHo store, achieving our highest daily sales and visitors to date. We are continuing to lead the 90 style conversations globally, a look that we help define by leaning into the stars driving the trend today across our platform. You will see this across our spring campaign featuring global ambassador, John Cook, which pairs cultural influence with the hero product storytelling to drive consumer demand. Here, strong social engagement is driving fantastic sell-throughs with sales of campaign items up over 50% after launch and the [indiscernible] John Cook War reaching 60% sell-through in just 2 weeks. In March, we launched a new spring campaign featuring FC Barcelona and Brazilian National team, Soccer star [indiscernible] debuting our most recent underwear innovations, icon active mesh and icon cotton stretch with a stitch-free Infinity bond waste band. We drove social engagement up 62% as sales of featured products were up 11% versus a similar campaign last year. Our most recent runway show at New York Fashion Week once again placed Calvin Klein at the center of the cultural conversation, supported by top global talent, including Jennie, Dakota Johnson, Brook Shields and Lilly Collins, the full 2026 show was once again the #1 in [indiscernible] of voice and #1 in earned media value from all of New York Fashion Week. Finally, we just unveiled Calvin's latest spring campaign starring actor Dakota Johnson, styled in new underwear and denim styles. Since the campaign launch, website traffic has been up double digits versus last year in Europe, sell-through has also been strong. Sales in key featured items shot up 4 times versus the time prior. For Tommy in 2026, we are doubling down on our core product categories and set out to create the best product franchises in the market. Moving forward, you see us expand our category acceleration across sweaters, outerwear and knits and shirts. We have started the new fiscal year with a healthy momentum with the launch of the brand Spring 2026 campaign, which features an invitation to Tommy's aspirational world. The campaign has been very well received across markets, serving as both a brand beacon and amplifying our 2026 product priorities. We will continue to leverage our partnerships with Liverpool Football Club and Cadillac F1 throughout the year with a steady drumbeat of consumer engagement. As part of our new multiyear Liverpool partnership, Tommy Hilfiger will address the full team from match arrivals 6 to 8 per season, and each tunnel walk represents an opportunity to drive scaled brand visibility and product sales as we style players in our most aspirational Tommy icons and offer shop to look access. In our first tunnel walk, we drove a 200% increase in sales for these products in Europe compared to the prior week. For Cadillac Formula One, we are activating the partnership with store pop-ups driver appearances and local influencer styling. Following the first 2 races of the season in Melbourne and Shanghai, where we activated with poultry bottles and Chinese driver, Jo [indiscernible], together with local Tommy ambassadors, our China Tommy D2C sales were up double digits in March versus last year. Our expanded partnership with Sergio Checco Peres also continues to drive a consistent uplift in traffic. And in the U.S., the Tommy Icons Checker has won so far this season, such as our cable knit polo have seen double-digit sales increases. Overall, our exclusive Tommy partnerships are driving scaled global engagement with our consumers generating over $700 million impressions and an increase of over 300% in media value versus prior campaigns. And earlier this week, Tommy announced Travis Kelsey, American football icon, 3 time Super Bowl Champion as a global brand ambassador and creative collaborator, one of sports biggest stars on and off the field Kelsey will bring his unique perspective to Tommy Hilfiger as part of the series of campaigns kicking off in fall 2026. Looking ahead for our regions, we have started fiscal 2026 with momentum, which has continued through quarter to date, where we see spring product season do better than last year same time. In Europe, following a tough second half last year, this year, we are expecting a gradual improvement in top line trajectory as we progress through the year. You will see our investments in marketing and the consumer experience start to cut through in the marketplace. In wholesale, we closed our fall 2026 order book, up low single digit, marking the third consecutive season of growth. When taken all together, we expect our overall revenue for the region to be up slightly in 2026 compared to 2025. In the Americas, we continue to work towards unlocking our full potential and expect to grow across all channels by elevating the brand experience, including targeted remodels, strengthening the marketplace distribution and driving pricing power. Overall, we expect modest growth for D2C 2026, and we expect continued growth in e-commerce as we continue to further strengthen our digital position. And in wholesale, we expect to see growth driven by the transition of previously licensed Tommy Hilfiger women's sportswear in-house. In Asia Pacific, we're off to a great start with Lunar New Year, where we launched a dedicated capsule featuring brand ambassador in global K-Pop Superstar Jisoo, exceeding expectations. We expect to continue to drive growth in the region in 2026, up low single digits in constant currency, powered by D2C. The region will continue to be a growth engine for us long term, and we expect to return to growth for the full year. Turning to our licensing business. We continue to build out our already strong licensing business where our licensing partners help bring our vision to life across multiple lifestyle categories from watches and fragrances to eyewear and are critically important to how we drive sustainable profitable growth. In conclusion, our focus is clear to unlock the full potential of Calvin Klein and Tommy Hilfiger by building on the strong foundation we created and drive next-level execution of our PVH+ Plan. While we are seeing early momentum in 2026, we remain conscious of the current macroeconomic environment, and we are laser focused on building out further strength in the consumer offerings in both of our brands. And with that, I'll turn the call over to Melissa. Melissa Stone: Thanks, Stefan. Good morning. My comments are based on non-GAAP results and are reconciled in our press release. As Stefan discussed, our fourth quarter and full year results delivered or exceeded expectations across key financial metrics. In the fourth quarter, we generated 6% reported revenue growth, flat in constant currency, drove sequential improvement in our year-over-year gross margin percent and continued our focus on strong SG&A discipline. We drove significant sequential improvement in our operating margin, reaching 10% for the quarter despite a negative 170 basis point gross tariff impact and ahead of plan. EPS was 17% higher than the prior year. For the full year, we delivered 3% reported revenue growth, up slightly in constant currency both in line with our guidance, with 8.8% operating margin for the year despite a negative 80 basis point gross tariff impact and EPS of $11.40. Throughout the year, we drove quarterly sequential improvements in our gross margin comparisons as we set out to do and exited the year with over 200 basis points of annualized cost savings from our growth driver cost savings actions. We ended the year with healthy inventory levels, up 5% compared to last year and 1% excluding the impact of tariffs, well positioned heading into 2026. We delivered strong free cash flow for the year of over $500 million and returned over $560 million to shareholders through the repurchase of nearly 8 million shares of common stock through our accelerated repurchase program and open market purchases. Looking ahead to 2026, we are planning full year reported revenue up slightly compared to 2025 and flat to up slightly in constant currency. We project operating margin to be approximately 8.8%, in line with 2025, even with a negative 215 basis point gross tariff impact as we drive underlying gross margin strength and tariff mitigation actions while investing in our brands through full funnel marketing. I will now discuss our 2025 results in more detail and then move to our 2026 outlook. Reported revenue for the fourth quarter was up 6% and flat in constant currency, exceeding our guidance. From a regional perspective, EMEA was up 8% reported and down 3% in constant currency. Direct-to-consumer trends from Q3 generally continued in Q4, down mid-single digits in constant currency with wholesale down 1%. Revenue in Americas was up 4% driven by high-teens growth in wholesale, reflecting a mid-single-digit increase in the base business, the impact of bringing Calvin Klein women's sportswear and jeans wholesale in-house and initial shipping related to the Tommy Hilfiger women's sportswear and performance wholesale transition in-house. D2C revenue in Americas was down mid-single digits in total and in stores partially offset by continued growth in our e-commerce business. In Asia Pacific, revenue was flat as reported and down 2% in constant currency, which included an approximately 4% headwind from the timing of Lunar New Year compared to the fourth quarter last year. Excluding the Lunar New Year impact, Asia Pacific returned to growth in the fourth quarter. D2C revenue was down low single digits in constant currency, but up excluding the Lunar New Year timing effect with continued growth in our e-commerce business, driven by strong double 11 performance in China. Wholesale revenue was down mid-single digits in constant currency as our wholesale partners in the region continued to take a cautious approach. In our licensing business, revenue was up 10%, primarily due to the impact of nonrecurring contractual royalties in the quarter. Turning to our global brands. Tommy Hilfiger revenues were up 7% as reported and up 1% in constant currency. Calvin Klein revenues were up 3% as reported and down 1% in constant currency. From an overall PVH channel perspective, our direct-to-consumer revenue was up 1% as reported and down 3% in constant currency, which included an approximately 1% headwind from the timing of Lunar New Year compared to the fourth quarter last year. Sales in our retail stores were flat as reported and down 4% in constant currency. Sales in our owned and operated e-commerce business were up 5% as reported and flat in constant currency as strong growth in Asia Pacific and Americas was offset by the decline in EMEA. Total wholesale revenue was up 11% as reported and up 4% in constant currency, which reflects the North America license transitions, partially offset by the decreases in EMEA and Asia Pacific. In the fourth quarter, our gross margin was 57.6%, stronger than planned, reflecting significant sequential improvement across all regions as compared to the third quarter. The decrease of 60 basis points compared to last year includes a decrease of approximately 170 basis points due to the growth impact of tariffs, a decrease of approximately 50 basis points from our North America license transitions, as we've previously discussed and a marginally higher promotional environment. These decreases were largely offset by our proactive tariff mitigation actions, enabling us to mitigate over 40% of the increased tariffs in the quarter and our efforts to lower product costs as well as favorable foreign exchange. Importantly, we saw significant sequential improvement in Calvin Klein gross margins in the fourth quarter as we steadily work through the previously discussed transitory operational issues. SG&A as a percent of revenue improved 20 basis points versus last year to 47.7% reflecting efficiencies from our growth driver 5 cost savings actions, partially offset by our increased full funnel marketing investments to build momentum heading into 2026. EBIT for the fourth quarter was $250 million and operating margin was 10% roughly in line with 10.3% operating margin in 2024 despite the 170 basis point negative gross tariff impact. Fourth quarter EPS was $3.82, a 17% increase over $3.27 last year, reflecting a negative $0.70 growth impact related to tariffs and a positive $0.33 benefit related to exchange. Interest expense was $19 million and our tax rate was approximately 23%. For the full year 2025, we delivered our overall revenue plan. Regionally, EMEA was down low single digits in constant currency with positive first half D2C trends offset by muted consumer activity in the second half, driven by a tougher backdrop in the region. In the Americas, we delivered a mid-single-digit increase in revenue driven by the North America license transitions and strength in e-commerce. And in Asia Pacific, we drove steady quarterly sequential top line improvement after a challenging start to the year, ending the year overall down mid-single digits in constant currency, including a low single-digit impact from the Lunar New Year timing. While gross margin of 57.5% was lower than last year, including the approximately 80 basis points negative impact of gross tariffs, of which we mitigated approximately 30% for the year, it was stronger than planned. SG&A as a percentage of revenue improved 70 basis points over the prior year to 48.7% as we drove meaningful savings from our Growth Driver 5 cost savings actions. We achieved operating margin of 8.8%. Interest expense was $79 million. Taxes were approximately 22% and EPS was $11.40, which included a negative impact of $1.10 from gross tariffs and a positive impact of $0.56 from exchange. This compared to last year's record high non-GAAP earnings per share of $11.74. And now moving on to our 2026 outlook. As Stefan discussed, in 2026, we will build on the strong foundation we've created and drive the next level of execution of the PVH+ plan. While wholesalers remain cautious and the consumer macro environment continues to be uneven, our European order books are positive, and we are expecting growth in D2C in both brands and in all 3 regions for the full year. At the same time, we expect to absorb the full impact of U.S. tariffs in 2026. Our outlook assumes a 15% tariff rate on goods coming into the U.S. starting from February 24 of this year, with inventory receipts prior to that at tariff rates previously in place. Our guidance does not assume any tariff refunds. We expect an approximately $195 million gross tariff cost and EBIT or approximately $3.30 per share based on these assumptions. We continue to take tariff mitigation actions with the benefit of our actions planned to increase quarter-by-quarter throughout 2026 as we work to fully mitigate tariffs over time. It's important to highlight that significant uncertainty remains around the conflict in the Middle East as well as evolving global trade policies, the broader macroeconomic environment and consumer spending behavior. Our business in the Middle East, excluding Turkey, is about 1% of our total revenue and solely a wholesale business, so the profit impact is disproportionate at approximately 7%. Our guidance is based on current macro and geopolitical conditions and excludes any potential impacts from a prolonged expanded or more intense conflict in the Middle East. For the full year, our overall reported revenue is projected to be up slightly versus 2025 and flat to up slightly in constant currency. We expect full year operating margin will be approximately 8.8%, in line with 2025 and up, excluding the impact of tariffs in each year, as we drive operational gross margin improvements and annualize our growth driver cost savings, some of which we will reinvest in the business, particularly in marketing. We are projecting earnings per share in a range of $11.80 to $12.10 compared to $11.40 in 2025. Regionally, in EMEA, where we saw lower traffic and weaker consumer sentiment in the market in the back half of 2025. For 2026, we are planning for a gradual top line improvement as we progress through the year. We expect the first half to continue to be tougher within this backdrop with second half improvement as our investments in marketing and in elevating the consumer experience, drive even greater strength in the region. In wholesale, as Stefan mentioned, we closed our full 2026 order books up low single digits. At the same time, the overall macro environment remains choppy, and we are planning our revenues prudently. We expect our overall revenue for EMEA will be up slightly in constant currency compared to 2025. In the Americas, we are planning revenue up low single digits compared to 2025 with growth in wholesale driven by the Tommy Hilfiger women's sportswear and performance wholesale transition. And in D2C, despite the choppy consumer backdrop and lower traffic trends in stores in 2025, we entered 2026 with momentum, which has continued in the first quarter to date. We also expect continued growth in e-commerce as we continue to further strengthen our digital position. Overall, we are planning modest growth in D2C for 2026. Next, in Asia Pacific, we are planning 2026 revenue up low single digits in constant currency, led by growth in D2C, partially offset by a decrease in wholesale as we expect our partners in the region to continue to take a cautious approach. Our licensing business is expected to be down low teens, reflecting the North America license transitions. Excluding the impact of these transitions, we expect low single-digit growth in the balance of the licensing business. Overall, the impact of the licensing transitions net of the increase in wholesale is expected to result in a less than 1% net increase in our total revenue. We expect gross margins to be up slightly compared to 2025 as we plan to more than offset an approximately 215 basis point impact of gross tariffs in 2026, which compares to approximately 80 basis points in 2025 and an approximately 50 basis point impact from the North America license transitions with gross margin improvements driven by our tariff mitigation actions, favorable product costs, including foreign exchange and other business improvements. We expect to mitigate approximately 60% of the tariff impact for the full year with the impact of our mitigation strategies becoming progressively more meaningful as we move through the year, exiting the year with over 75% mitigation on an annualized basis heading into 2027. We expect SG&A as a percentage of revenue to be up slightly as we reinvest savings from our growth driver cost savings actions back into the business including an over 50 basis point increase in marketing as a percentage of sales compared to 2025. We expect our full year operating margin will be approximately 8.8%, including the 215 basis point growth headwind from tariffs and in line with 2025. Interest expense is projected to be approximately flat compared to $79 million in 2025. Our tax rate is estimated at a range of 22% to 23% and EPS is projected to be a range of $11.80 to $12.10. Looking at the balance sheet, we are projecting capital spending of approximately $250 million as we invest globally to refresh our stores and our shop-in-shops in our wholesale partner stores and continue to strengthen our digital position. And we are planning at least $300 million of share repurchases in 2026. Now turning to the first quarter. We are projecting first quarter reported revenue to increase slightly versus 2025 and decreased low single digits in constant currency with growth in D2C offset by lower wholesale. Importantly, as Stefan mentioned, we have started 2026 with positive momentum and higher spring season sell-through trends across both brands and all 3 regions. In EMEA, we expect revenue to be down mid-single digits in constant currency overall and in both channels, reflecting the choppy macro environment that has continued into 2026 and wholesale shipping timing including a slightly larger portion of the spring season shipping in Q4 last year than in Q1 this year. In Americas, we expect revenue to be down slightly as growth in D2C is expected to be more than offset by lower wholesale, reflecting a first half to second half timing shift compared to 2025. And in Asia Pacific, we expect revenue to be up low single digit in constant currency as growth in D2C, including the favorable timing of Lunar New Year compared to the prior year is offset by lower wholesale as our wholesale partners in the region continue to take a cautious approach. In our licensing business, revenue is expected to be down mid-single digits, driven by the previously mentioned North America license transitions. The balance of the license business is expected to grow low single digits. Tariff impacts will weigh more heavily on our year-over-year gross margin comparisons in the first half due to the timing of when the tariffs were effective in 2025 as well as the sequentially increasing impact of our mitigation strategies. In Q1, we project a gross tariff impact of approximately 230 basis points, about half of which we expect to offset through our tariff mitigation actions in the quarter. Despite this significant negative impact, we are projecting first quarter gross margin to be nearly flat compared to the prior year as our operational improvements to drive gross margin expansion, including our tariff mitigation actions and favorable product costs are offset by the negative tariff impact and the gross margin differential from transitioning license categories in North America back in-house. We are projecting first quarter SG&A as a percent of revenue to be up approximately 150 basis points versus 2025. We are reinvesting a portion of our growth driver 5 cost savings back into the business, including an approximately 100 basis point increase in marketing spend compared to Q1 last year. In the first quarter of 2025, we reduced our marketing spend due to the Calvin Klein product delays and the environment in China. This year, we are more heavily weighting our marketing spend to the first half to amplify our cut-through campaigns and drive brand heat early in the year. While this will drive our first quarter operating margin down, we'll see sequential improvement each quarter throughout 2026. In total, we are projecting our first quarter operating margin to be in a range of 6% to 6.5% including the 230 basis point gross tariff headwind compared to 8.1% last year, which did not include the higher tariffs. Earnings per share is projected to be in a range of $1.65 to $1.80 compared to $2.30 in the prior year. Our tax rate is estimated at approximately 22% and interest expense is projected to be approximately $20 million. Before we open up for questions, I want to reiterate that while we continue to navigate macro uncertainty, we have a clear focus on what is within our control and driving the next level of execution of the PVH+ Plan. We have started 2026 with positive momentum and are expecting growth in D2C in both brands and in all regions for the full year. We are continuing to invest in our brands and our business throughout the year and expect to drive gross margin up despite the impact of tariffs with operating margin for 2026 at approximately 8.8% in line with 2025 and reflecting underlying strength. And with that, operator, we would like to open it up to questions. Operator: [Operator Instructions] We'll take our first question from Bob Drbul with BTIG. Robert Drbul: Stefan, I was just wondering, can you talk about how you leverage the information about your consumer and the brand health across the PVH plan throughout the business? Stefan Larsson: Yes. Bob, and thanks for the question. It's a really important one. So as we shared in our prepared remarks, we do extensive consumer research and really exciting to see that the work that we have done over the past few years result in standing stronger with the Gen Z and Gen Millennial than our peer group. And within the Gen Z and Gen Millennial, it's really the combination between the strength with the Gen Z and Gen Millennial. And within those groups, the segments that the status interested segments, the style-driven consumer segments because we know that they shop more often. They spend more and they're more loyal. So the way we deploy that knowledge is through social, through e-commerce, expanding -- we target these consumers, and we build out our category strength from the 2, 3 categories where we see real strength already today in both Calvin and Tommy to the top 5 category. Top 5 categories is over 60% of the business. So it's really targeting the consumers where we are the strongest that spends the most and the most interested in style and status and then driving 360 consumer engagement with that consumer. And then that's how we are starting to turn the consumer flywheel. And that's part of why we delivered a stronger-than-expected Q4 and why we are off to a strong start despite the uncertain macro. That's why we're off to a strong start in the beginning of '26 as well. Operator: We will move next with Michael Binetti with Evercore. Michael Binetti: I guess this might be for Melissa, but maybe on the EBIT margins. So we entered the year with margins down 160 to 200 basis points in the first quarter, but then we get to flat in the year. and I think you said EBIT margin improves each quarter. Could you just clarify, is that the level or the year-over-year? Maybe just give us a little bit of help on how to think about the cadence of EBIT margin through the year after first quarter? And then, I guess, backing up, Stefan, on Americas, the revenues planned down slightly in the first quarter, D2C growth, but I think you said wholesale negative. And I would think you would have about a mid-single-digit lift from the licenses. So maybe just a bigger picture thought on why you think -- and we can see all the marketing and we can see everything with Calvin going viral. I'm just -- I'm curious why you think wholesalers have such a gap to what you're seeing in some of the successes and growth in D2C at this point and in fact, can reconcile itself as we move through the year? Stefan Larsson: Yes. Thanks, Michael. Let me start, and then Melissa will be able to take you through. There is a timing shift in wholesale to your point, Michael, in Q1, and there are a number of other shifts as well like the tariff impact that starts off higher and then goes down. So -- but let me start from a business perspective and just say, so we are quite far into Q1 by now. And we have a positive momentum in the spring season sell-through for both Calvin and Tommy across all regions. So we see the stronger D2C trend across both brands, all regions. And in Q1, 1 factor that also impacts Q1 is that we are strategically increasing our marketing spend. And some of that spend is somewhat front-loaded in the year. So full year basis, marketing spend is up double digit. But the first quarter, as Melissa mentioned, there are shifts from the market conditions last year to this year that gives us the confidence to invest more early. And we see that in Calvin through the strength in the spring campaign. We see it with a fashion show with the amplification of the Love Story interest. In Tommy, we see it through Cadillac Formula One. We see it with a Liverpool partnership. We see it with the spring campaign. So we're really leaning in to turn that consumer flywheel, but Melissa will be able to take you through more of the quarter-to-quarter timing. Melissa Stone: Yes, sure. Thank you, Stefan. So as we think about the trajectory for the year, there's several moving parts. Just on the top line, we have started the year, as we talked about with positive momentum with spring season product selling up versus last year in both brands in all 3 regions. And while the macroeconomic environment remains uncertain, we do expect growth for the full year. But in the first half, we're lapping the stronger comparisons in Europe and the Americas from last year. While in the second half, we expect to drive improvement as we continue to focus on what is within our control and see our investments drive strength to consumer. And I would just add that in Q1, when you look at our overall revenue on a 2-year stacked basis, which takes out some of the wholesale timing that's impacting our comparisons. Our total revenue growth in constant currency is sequentially improving from Q3 to Q4 and then from Q4 to Q1. And then when we look at the profit cadence, there are also 2 main parts that I'd highlight. I mean, first, as Stefan mentioned, there's the tariffs. And in the first half, we are burdened by tariffs, which only had a very small impact in the Q2 last year. And at the same time, we expect that our tariff mitigation actions will become increasingly impactful as the year progresses, and we expect to exit the year with over 75% of the tariff mitigated on an annualized basis. And then the second piece, as Stefan mentioned, is marketing where we've strategically weighted our investment to the first half, particularly Q1 ahead of the key consumer moments to align with our commercial plan and activate the full funnel and drive that heat early in the year. And you'll remember that in the second half of 2025, we had already stepped up our marketing investment versus our original plan and so that we lap that in the second half of '26. And then lastly, from an FX perspective, there's just 2 things I'd highlight. With translation, we see a favorable impact year-over-year, more heavily weighted to the first half, and you can see that effect in our Q1 revenue guidance. And then on our inventory cost, it's actually opposite where we see the favorable impact building as the year progresses, and that comes through and strength in our gross margins. And importantly, I would just add that on inventory costs overall, we're starting to see the benefit in our product costs as we leverage the scale and the power of PDH and our 2 global product kitchens. And we saw that benefit start to come through in Q4, and we'll continue to see that benefit in 2026. So a lot of parts. But overall, we expect progressive year-over-year improvement in our operating margins. Operator: We will move next with Jay Sole with UBS. Jay Sole: Great. I want to ask you about Love Story. I mean it really was a phenomenon. I just want to ask about the learnings from it just because it was it bigger than you expected? And how did it play out? And like I said, what are the learnings that you'll take going forward? Stefan Larsson: Thanks, Jay. It's almost impossible to have a conversation about Calvin right now without Love Story. So is also a really, really great question. So could we anticipate it? I don't believe anyone could have anticipated the magnitude of the hit it has become globally and across generations. So if you look -- we just got the data yesterday that over 40 million people have watched Love Stories, Hulu's most streamed show ever. So what's the learning for us and what's the effect? When the show launched, we could see the search -- search for -- the search increase for Calvin Klein, e-commerce traffic, D2C is positive. The consumer is looking for iconic Calvin, starting with iconic underwear and iconic denim, the most sold denim style right now is the '90s fit. So some of the key learnings here is you can't plan for these things. But what I'm really excited about and is what the team has done over the past 3, 4 years is we have gone back to the DNA of what made Calvin collide with culture back in the '90s when that happened and really taken 100% of that iconic DNA and then working hard to make it 100% current. So when something like Love Story hits, it's just a really nice sync up with where we are with the brand. So it also shows the power of the brand. So we are talking about since we started the PVH+ journey that there is something special in Calvin and Tommy because there are one of a handful of brands that have provided with culture and become globally iconic. This is a good example of this because the interest we see spans generations. And then one of the biggest audience parts of love story is also where we have built the most strength which is within the young millennial and the Gen Z consumer. So Calvin really helped shape American Fashion and the '90s look? And yes, just -- we see it in the demand. We see it in the interest for the brands, but this is something that has been built over the last 3, 4 years. And we just appreciate it. And for those of you who haven't watched Love story, please do, it's a great show. Operator: We will move next with Brooke Roach with Goldman Sachs. Brooke Roach: Stefan, I was wondering if I could get your latest thoughts on the path to deliver sequentially and sustainably stronger sales momentum in your Europe business. Beyond the easier compares, what are the most important drivers of that sequential improvement that's planned throughout the year? And what is a more appropriate medium-term algorithm for European growth on a go-forward basis? Stefan Larsson: Yes. Thanks, Brook. As we mentioned, there are 2 big factors here. One is that the spring product season in both Calvin and Tommy in Europe, is up versus last year. We we're still relatively -- sorry, relatively early in the spring. So we are 1 week away from Easter. Last year, it was 3 weeks later. But we have a very good read on early spring product up versus last year. And that is both in D2C and wholesale. And then the forward-looking wholesale order book for fall is up low single digits. So you will see that -- you will see the combination of keep building the D2C momentum powered by our increase because also in Europe, we are stepping up the marketing investments and we see the effect of that. And we will see the effect of that gradually improve over the year. So you will see our market presence for Calvin and Tommy step-by-step through the year improve. And then we build on the positive start to spring. And then we have the belief from our partners in the forward-looking order books. Operator: We will move next with Dana Telsey with Telsey Group. Dana Telsey: As you think about the uptick in the marketing spend as we go through the year, the first quarter having the most pronounced impact, how do you think of Tommy and Calvin, what we should be watching for, for newness moving through? -- and the addition of Travis [indiscernible] to the platform, are there other new celebrities or sports side concept we should be watching for also? And Stefan, how do you think this is sales drivers for the brand. Stefan Larsson: Yes. Thanks, Dana. What's -- so let me start with Tommy this time. So I'm really excited this earlier this week, as you alluded to, we revealed that American football icon, 3x Super Bowl winner Travis [indiscernible] becoming our Tommy brand ambassador and creative collaborator. And we know when we have done these collaborations in the past, how much power there is because there is a lot of love for Travis Kelsey out there, a lot of love for Tommy and then combining those really creates energy and interest. And the way the way we build that collaboration is, again, going back to the DNA of Thomas classic American Cool. And then as I mentioned, for Tommy, we are building out the and putting innovation into our strongest franchises into our 5 most important categories. So when looking at categories for Tommy is, outerwear, sweaters, shirts, knits as an example. So it's putting innovation and newness. It's almost like internally is very clear, and I push it all the time with the team says it has to be 100% iconic and 100% current. So that's what we're going to do through the collaboration with Travis. We are also doing it in Tommy. So what you will see more of is building out the Cadillac Formula One partnership and the Liverpool Football Club partnership. So Liverpool became, as I mentioned, the #1 engaged social post ever in the history of the brand. It was really exciting about how the brand makes these collaborations shoppable is Cadillac Formula One, we were able to launch the fan wear, the Tommy Cadillac Formula One fan wear at around the Super Bowl. And for a few days there, 50% of the sales in our U.S. e-commerce was Cadillac Formula One Tommy. So there is an enormous interest in that. And then through the races, we work with the drivers, we work with local influencers and then we have shopped to looks. So when you see Tommy show up with your Formula One team that you follow, you see, Tommy, with some of the best footfalls in the world in Liverpool, can shop the look starting from social all the way to e-commerce to e-mails. So some of the biggest impressions we have had since we launched Canada Formula One and Liverpool. So you'll just see us build out Tommy's presence through those partnerships. And then in Calvin, what you will see in Calvin is starting this spring, you just -- already, you have seen the spring campaign with John Cook, the famous K-Pop star campaign items. So what we -- if you look closer at those campaigns, we build out newness and innovation in underwear, in denim, in outerwear in knits, and you start to see how that drives sales. So if you look at the John Cook featured products, prior to the campaign and after the campaign, they are up 50%. And the outerwear that has had a sell-through in 2 weeks. Dakota Johnson, same thing, what she were in innovation in underwear was shopped to look and became one of the highest selling underwear styles that we have. So when we introduce innovation and newness into our icons, whether it's underwear or denim, et cetera. That's how we drive this 360 engagement. So you will just see a consistent drumbeat of that towards that consumer target, the Gen Z, the young millennial and the standard shopper and the style enthusiasts. So that's over time, you'll just see us build that out. We have time for 1 more question. I look at Sheryl now. I guess to signal one more question. Operator: We will take our last question from Tom Nikic with Needham. Tom Nikic: Just wanted to ask about the expectations for direct-to-consumer growth this year. And I'm wondering how much of that is driven by pricing in order to mitigate in order to tariffs and how much is driven by expectations for improvement in traffic or unit volume. Stefan Larsson: Yes. Thanks, Tom. So let me start and then hand over to Melissa. But overall, we are pleased to see in North America, how we are able to take pricing by offering the consumer great value. So you see that in D2C, you see that across channels, really, but your question was about D2C. So you see the pricing power and the tariff mitigation that coming out of this year, we will have mitigated 75% of the tariffs. And then across the board, we make sure that we drive pricing power in multiple ways. But it starts by being really focused on these categories that we accelerate and then putting innovation in the franchises and then cutting the long tail of product. There is a lot of pricing power and margin gain over time that we will tap into more and more and then when we drive the consumer engagement on top of that product strategy and then make it come to life all the way through, that's when we see we're able to drive pricing power. So it's very much connected to where we strengthen the consumer offering. So in Calvin Klein underwear denim, we're able to drive pricing power because we offer something that's more valuable to the consumer. Melissa Stone: Yes. And I would just add to that, Tom, that from a DTC perspective, we're planning our overall B2C business up low single digits in 2026 and that includes growth in both brands and across all regions for the full year, not just in our North America business where we're faced with tariffs. Stefan Larsson: All right. Thank you very much, Tom, and thanks, everyone, for joining our call today. Looking forward to reconnecting after Q1, and we are heads down ready for the big Easter period here. So we're going to get back to business and looking forward to speaking with you in a quarter. Thank you. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.
Operator: Good afternoon, ladies and gentlemen, and welcome to the Quadrise Interim Results Investor Presentation. [Operator Instructions] Before we begin, we'd like to submit the following poll. I'm sure the company will be most grateful for your participation. I'd now like to hand over to the team from Quadrise. Peter, good afternoon. Peter Borup: Thank you very much, and thank you very much for joining us for the interim reporting for Quadrise. As always, we start with a disclaimer. I will leave that to you and jump straight into the presentation. So the strategic challenges of Quadrise are clear and well known. So our focus is entirely on getting the MSC Cargill trial up and running. We have also since we last time met been having a meeting with OCP face-to-face that suggests we might be running a second trial with them leading into a commercial offtake agreement. But perhaps even more importantly, we have been upping and accelerating our efforts to build support from refineries. So we have feedstock supply available, or at least plausible for when we need to scale up after these trials. I have mentioned at previous occasions, latest at the AGM that we are looking at whether we can identify other shipping clients who would be willing to do commercial trials perhaps in other segments. And this is an ongoing effort where we've been speaking with a good number of people that we believe are willing to be upfront users or first movers rather than the traditional shipping approach where you are first adapters rather. And I think we know pretty much who this is. So we've had meaningful discussions. We are talking to the right departments and all these companies, but it's something that takes a little bit of time, but it's an effort that is ongoing. We're also aware that while our focus is entirely on the trial and on the scaling up the refinery efforts, we really need to look at the future as well. I think we have a great platform on the bioMSAR platform, but it's also one where much of the bio feedstock will vary. There's simply not enough feedstock in any one product to meet the IMO requirements should they ever be adopted. So as you will know, we have a stable product with the glycerine. We have been trying out the cash no oils, and we are trying out other feedstocks that are perhaps a little bit further away, but it's really important that we can speed up our, say, product or research to market time. And one of the ways of doing that is being -- modernizing our data infrastructure. It's actually quite good, but leading into building digital twins. We're already part of an EU project in that respect, but it's something that will help us fine-tune before we do the actual machine test, fine-tune exactly how do we make the feedstock, and prepare it for that test. And we can do that then in cyber instead of doing that on a machine. So hopefully speed up the whole process. We've been trying to sharpen our focus. Of course, we've conducted a lot of projects over the years. We're painfully aware that some of these are projects that are research-minded, so there can be longer periods of hibernation where nothing really happens and then they take off again. And that's just part of running a portfolio of different projects. But we also have more specific projects that you've heard about before and we're going to talk about today. And we just have to be very mindful that they continue to make commercial value to keep them alive. So that's an ongoing process. We have a clear focus on shipping clients. We have to make a choice. But it also means that in terms of power plants and industrial clients, they have to be really promising for us to invest time in it. Some of these other projects are far, far away geographically at least, but we are trying to focus on them by also using external clients to speed up the process to market. We'll come back to that on the individual projects. We are, of course, affected, and we are watching what is happening on the regulatory front. Fuel EU is moving along according to plan. We are very mindful that a number of countries are looking at the fuel EU rules and regulations to seek inspiration, and they are likely to be adopted there if IMO doesn't go ahead. Timing is uncertain. Localization is also a little bit uncertain. And clearly, as a former shipowner myself, there's nothing that shipowners fear more than having a number of different regulatory regimes, having the level playing field and having one set of rules has enormous value. What we're hearing from the IMO is that the talks are ongoing. The Americans have offered their view on how it to proceed, not very positive last Friday. Others have also offered their views. We're mindful that Liberia and Panama both suggested solutions that are close perhaps to the Greek position, which is lower fines, a broader base, more LNG involvement in the range of fuels that can be used. The feeling right now, certainly from my side, my personal view is that this is likely to take longer than just a 1-year suspension that the IMO decided last year in October in London. From the market point of view, we actually feel that the -- what happens at IMO might not impact Quadrise's technology that much. The main thing is that there are fuel EU rules, they're driving change. What we are mindful of is that there are a lot of other things on the agenda, also shipowners and most businesses the pace of technological change, not just in AI, but in many other technologies where exponential changes in these technologies is really changing the business landscape and no business can afford to ignore it or not be well briefed on it. Same thing we have on a broad term geopolitical transition that we have not seen at all at this level before in terms of a [indiscernible] role of international law, change in alliances, certainly uncertainty about many of the traditional alliances that we've been working with in the past, but also trading blocks changing quite rapidly. And that means that any company operating in this environment needs to look at their operational expenses before they look at anything else. So my clear impression from the last 6 months where we've been seeing a lot of shipowners and a lot of related businesses is that there's a strong focus on the green transition, but everybody understands that they need to make sure that their businesses are strong, so they are going to be around for the green transition. So the focus will be on cost to a very large extent. And that also matters for, of course, for the choice of technology that we can offer. We are still selling both MSAR and bioMSAR, but there's no doubt that the ability to deliver MSAR at below the cost of conventional fuels is a major for. And that's even before talking about the current conflict in the Middle East. What we are seeing is that many of the players we are dealing with are no longer competing on price or freight rates or even the availability of ships. It's about availability of bunker fuels, which is not a given, and that is impacting the value chain. Clearly, where sometimes we've been finding that we are dealing with much bigger players than ourselves, and that holds its own challenges because they have many, many concerns to take into account. In a case like this, dealing with primarily large players have some benefit because they will be first in line to get the bunker fuels. And I'm not saying it's easy for them either, but it's something that gives us some consolidation as we are trying to get trials in place with MSC and Cargill in the first place. We are -- if we look at the projects, first and foremost for us is the trials that have been planned for such a long time with MSC and Cargill -- we've had quite frequent meetings and discussions with both of them over the last 3 months. I think they're positive. They're down to a few items now. What also happens when things take time and, people are checking carefully the agreements they entering into is that certain things come up again. Most recently, we've been looking into whether VAT issues in the EU for the Antwerp trial would affect or would come into play with a tripartite agreement. It seems not to be the case. So that's been sorted out. We're now discussing or looking at the terms and conditions, which are standard for a big buyer of fuels. And my feeling is that we are getting very close now. We've had meetings again, face-to-face. We are experiencing that MSC is committed to the 2 trials that have been agreed, so one for MSAR and one for bioMSAR. But we're also experiencing that they are very helpful when we are talking to refineries, and others and pushing and endorsing not only the trial, but building a scale up in terms of feedstock supply afterwards. So I think that's quite positive. Some of the issues, some of the things that have to happen now, we have filed for a branch in Belgium, enabling us to start the production in Antwerp, and that might be a little bit early as we haven't signed yet, but we just want to make sure that doesn't hold it up. There'll be some certifications that have to be renewed, but it's -- the whole process has been simplified. But again, we want to do that already now, so we don't have to wait for that. So I think while I can't tell you that it's all been signed and dusted, we're ready to go. My feeling is that we're getting quite close. And our focus has shifted -- not shifted, but has now also been on how do we make sure that we can scale up after an expected successful trial. So no longer than 3, 4 weeks ago, Jason and I and Linda as well were in Singapore exactly to look for potential supplies from refineries, but also from buyer suppliers to make sure we're ready for that and had very positive meetings. Cannot really reveal who we've been talking to. But hopefully, we can talk more about that later in the year. With that, I will hand over to you, Jason, on OCP. Jason Miles: Thanks, Peter. Yes. So in terms of OCP, again, Peter and myself earlier this year, went out to Casablanca and met with the main people there. Quite surprising meeting because they were extremely positive in terms of the cost leadership program, which MSAR fits in with. So the current status is that the updated trial agreement is well underway. So basically, we're now sort of detailing exactly which site we're going to be at. The likelihood is it's not going to be the same kiln as we had before, which is slightly constrained with this OEM issue, which we documented before. But the key thing is, I guess, the time behind the amendment to the agreement, we make sure that there's an operational board, obviously involving Peter and the head of OCP there to make sure that it's got management buy-in and make sure we try and avoid the delays that we've seen so far. The trial itself, the actual duration depends a little bit on the scale of the kiln that we're operating on. So if it's a smaller kiln, it will be 30 days. If it's a bigger kiln, it's likely to be less. So really, the plan is to basically carry out that trial. And that's a longer-term trial is needed. We did -- the previous trial was done over a period of a week or so. OCP want at least a longer-term trial of a couple of weeks minimum to actually get the full operating data that they say is needed before they commit to commercial supply. So that's what we're doing. And in the meantime, our equipment remains on site and any costs that are being incurred, we're getting reimbursed for by OCP still, and that process has been working very well. In terms of the next project in the U.S. with Valkor for basically heavy sweet oil, which is essentially a low sulfur bitumen -- ultra-low sulfur bitumen product. We received obviously the first payment. We revised terms that people remember of the agreement last year. We basically received the first installment this year -- sorry, last year as well. We basically invoiced the second installment, which is due at the end of this month. So we're expecting payment of that 300,000. And then there's another 650,000 due at the end of the year. The samples that have been long overdue as well, they've been -- essentially the Valkor have been going through a change -- slight changes in their exact processing. So they've been holding back the samples until they know exactly which technology route they're going for, but that's now been finalized. So they're doing pilot runs at the moment to generate the samples that we expect to get fairly soon, so we can do the testing in the second quarter of the year. Their pilot plant that is due to go in, be operational in Q3 has been delayed slightly because of the site that they selected was not fit for purpose. So they had to move site to a new location. So that delayed some of the civil works that was planned to be up and running by now. But that's moving ahead. So they expect to be the installation to happen during Q3, and the plant to be up and running in Q4. In the meantime, we're preparing -- we prepared our unit. It's nearly complete now for shipment, and that will be done during the second quarter of the year to the U.S. with expected deployment then in what's obviously just part of the installation program in Q3. So really, the plan is then to carry out a paid for trial for -- to produce actual trial volumes of fuel for local consumers and it also initiates a marketing program that we've had in plan for some time with Valkor as well now that is actually live. But yes, Valkor they're fully funded. Obviously, they've got a position now in TomCo as well in the U.K. In terms of Panama, again, as you remember, we carried out a trial in July, which went very well. Essentially, we've got a letter of intent from Sparkle, basically stipulating what their demand will be. We know that there's other demand from other -- both plants, both within Panama and Central America region, specifically around Honduras. The fuel permitting process, we've got basically MSAR and bioMSAR have been basically approved as alternative fuels. So these are fuels that can be utilized when -- as they're trying to phase out potentially fuel or diesel. So that's been approved. The process for an import permit has also been detailed now. But obviously, we now need a live case where we can actually bring in the fuel with a partner. So we're discussing that with regional refineries and other logistics companies in the region with regards to commercial supply to Panama. And in the meantime, we've had some new arrivals to the team, including Matt Hyde from -- who's coming from BP, who's really helping with the sort of getting a deeper understanding of refinery economics there as well in that region. In terms of the bioMSAR program, which is ongoing, we've been doing a lot of testing with additional biofuel feedstocks, including doing things in the lab, but also doing testing at third-party facilities in Germany, where these engine facilities are used by quite a lot of parties. So it's a good endorsement for the fuel. We're also kicked off -- we also kicked off a collaboration with the University of Bath not just in terms of fuel research, but Peter mentioned before, some of the AI digitization as well. That's something that Bath can utilize in the future. And obviously, it's potentially a good talent pool for us going forward in terms of their engineering and the technical people as well. And in the meantime, as Peter mentioned before, there's a world beyond glycerin for the biofuel, which really comes from biomass-derived material, which is abundant, but obviously, there's different technologies to extract it. So we're working with the main technology providers there, but all of which has its own features and challenges, but we're working through to actually get some of their products to market faster than they would normally expect through some of their other technology platforms, which is why they're working with us. And then as part of the development program as well, we have an EU-funded project, which we're part of us amongst sort of 18 other companies ranging from universities through to people in the marine space as well and actually owners of vessels as well. So that's been going very well, and it's actually -- it's been quite active this year in putting together this digital twin, which again, Peter mentioned at the beginning, which is looking at 4 different types of existing vessels and 4 different types of new build vessels to see what's the optimum technology platform to decarbonize shipping, and it's looking at a range of different technologies of which MSAR is one of those on the biofuel space. So it's a good platform for us to market our technology. And then sustainable ships is something that we launched again with them today -- sorry, this year rather, with Linda and Alfie especially have been very active in getting that up and running, doing an online seminar. And that's brought through some quite good introductions already as part of that program. But it's a good way of comparing how MSAR competes with other -- MSAR and bioMSAR competes with other fuels. The next slide really just gives you a pipeline of the different fuel types that we're using and explains really what the bioMSAR is a mixing technology. It's a platform technology, which enables us to bring in a range of different biofuels into the finished product on the right, which needs to go through the appropriate engine testing, but ultimately can then be rolled out to the shipping fleet and really answer some of the questions around the abundance of biofuels. That's what we're really looking to nail and provide quite a unique difference in what we're offering because we can blend oil and water together. Some of these products like the sugars that we mentioned, some of the pyrolysis sugars and other means of other sort of components on here actually be water soluble as opposed to being easily blendable with oil. So we have the ability to blend both. And I'll hand over to David. David Scott: Thanks, Jason. So our results for the period are largely in line with the same period last year. Our loss has gone up a little. We've got some additional project and development costs in there this year. The main thing that is of interest based on the questions is our cash balance. So at the end of the period, at the end of December, we had $4 million in the bank. Now in addition to that, as Jason alluded to earlier, we're expecting another sum through from Valkor overall to take us through up to the USD 1 million that we're getting on the license fee, and that's expected in over the course of this calendar year. Now where that's going to take us to, we're going to have to see where we get to with our -- hitting our milestones and our projects for the period. So it's too early as yet to say how far that's going to take us to. We're based on our cash spend rate, which is historically about $3 million per year. We've brought in some new additions to the team. So that cash spend has gone up, but maybe only 10%, 15%. So that GBP 4 million is still way more than 1 year's worth of cash spend plus the Valkor money. So we're in a pretty healthy position cash-wise. The loss for the period -- loss per share for the period is in line with the prior period. And our tax losses of GBP 68 million will be there when we come to generate profits. And that's everything for me for the moment. Thanks. Peter Borup: Thank you. So there have been a few updates to the team. You will have noticed our RNS on Lauri stepping down from the Board and Michael Covington joining us. Michael brings in many years' experience in investment banking and private equity leadership also in energy. And just as importantly, he brings in a lot of energy, and drive and a willingness to contribute and participate on the board and in the daily work. So we're looking forward to that. We have also brought in Matthew Hyde, who has more than 30 years in refinery economics, most recently from BP. And that's a reflection of our decision to accelerate how well do we actually understand refinery economics because it's not something we can just do after a successful trial. Once we are having a production trial, we need to make sure we can scale up afterwards. so we can supply the material and the fuels to our clients. Right now, we're down to about probably a gross list of 25 refineries that has a good match to the kind of residues we are looking for. And then Matthew will need to analyze that further to find out which are the ones that will benefit the most from using the MSAR technology and the bioMTAR. So that's ongoing work, but also really important. And I feel we already -- we have already learned a lot compared to when he started. In summing up, -- we -- I feel we are making small steps forward in almost everything we are focusing on. And I'm really looking forward to being able to announce hopefully, the MSC agreement being done and then being able to move on to the next steps. And I'm also very mindful that it looms large to have the agreement signed now or the agreements signed, the next steps are going to call on something else from [Indiscernible] and we have to get into project management phase. We need to mobilize. We need to set up. We need to make sure that the crew on the ship or ships in question are ready for the trials, so we get the most out of them. And then we need to make sure that we scale up properly, that we have agreements in place with refineries -- and while we're starting in Anterp, it's quite clear that some of the next places we have to go, of course, shipping up like Singapore, it might actually be the Persian Gulf again at some point, but also the Mediterranean and the Americas. So that's what we are focusing on and trying to run a tight ship, of course, also on the resource side, still investing in our future, investing in the data platform and accessible data lakes. So that's where we're at. We have had a number of questions come in, I think 45. I'm going to hand over to David to take us through as moderator of the questions that have come in and the questions that you can still post on the platform. So with that, David. David Scott: So thanks to everyone who's submitted questions in on the INC platform. We're going to deal with the pre-submitted questions first, and we've grouped them into segments. So we're going to be going through each segment. After that, we will come in with the live questions that are coming in as we speak. And any questions that we don't want to address today will be dealt with on the INC platform in due course, likely early next week. So I'm going to start now with some of the strategy questions for Peter. And the first question is, what efforts are Quadrise applying to the market of new built dual fuel ships fitted with scrubbers? And how big is this opportunity? Peter Borup: Our focus right now is on talking to owners who have a willingness to move first. So owners who control their own ships. So one thing is owning it, but another one is actually controlling the daily operations. And of course, we're looking for ships that has the highest possible consumption per day of fuel because that's where we can really test them and where we really want to sell. So that is our priority. Secondarily, we are probably looking more for vessels with electronic fuel injection main engines because that works better with our technology. And that's even before looking at scrubbers or no scrubbers. But -- so I think we have a fairly good take of the segmentation there, both from the experience I have and Tony Foster and Linda Sorensen has in the shipping industry, but obviously, also because we have fairly good access to data from various databases on where the ships are with high consumption, and the fuel injection or electronic fuel injection, but also with scrubbers. So we can break that down, and we -- that's how we approach the marketing, if you will. Unknown Executive: Probably worth adding that the dual-fuel ships tend to prioritize LNG, right? There's a reason normally that people have built a dual-fuel ship that's to take advantage of LNG. So it wouldn't be our obvious first choice necessarily. But having said that, there are a number of dual-fuel vessels that are using fuel oil still if they can't get LNG. So -- but it's not the first choice, I would say. David Scott: Okay. So the next few questions are with regards to bringing in additional shipping companies. Do you expect to sign up an additional shipping company once the trilateral agreement is signed between MSC, Cargill and Quadrise? Can you update on how the search has progressed for additional shipping companies? And can you put a time scale on that? Peter Borup: So I -- we are hoping to add another trial. We are talking to tramp owners. We are talking to other types of owners. The time scale is a little bit hard to predict because right now, with all of them, I actually feel we have good access. So in some, we've started with the bunker departments. And then we referred to the technical departments. In others, we've been in with the technical departments first and then talk to the bunker traders or their ESG departments. We had a number of very good meetings in Singapore when we were there, too. So we are sort of spreading it out. We have been talking to family-owned companies, and to listed companies. But again, what we're looking for are people who have proven that they're willing to look at green transition fuels, who have invested in that because it comes often at a cost for them. If we can find owners who have vessels in place for Antwerp, that's another benefit. Predicting when something will be signed is way too early. All I can say is we're having fruitful and meaningful discussions. And some of the ones we've talked to will probably want to wait simply because they don't have ships in place or because the segments that they're operating in are under some pressure at the moment. So I don't want to put a time line on. All I can say is that I feel we are talking to all the right people, and I'm hopeful that we'll get another trial. David Scott: And are you seeing the interest being primarily BioMSAR or MSAR or both? Peter Borup: I would say both, right, at this stage. For some of the bigger players, I'm pretty convinced that the real interest will be for MSAR, but that's yet to be proven, right? But I just know what kind of cost pressure most of these owners are going to be on right now, and the uncertainty that they're operating in. And this is something that shipowners have done for centuries, right, dealing with uncertainty and volatility. So they know how to do that. But it always starts with making sure you have your cost under control. And MSAR is a great product for exactly that. David Scott: Okay. Up to Antwerp, what is the next plan to install MSAR or bioMSAR production? Can you confirm if this will be terminal blending or at refinery or both? Peter Borup: Yes, that's a great question. That obviously depends on our clients. But if you're looking at a very large line of network, or if you're looking at the temporary one, the obvious next place would be Singapore. That's where -- that's the biggest bunkering port in the world. It's a board that has done a lot to improve the transparency of their fuel markets, generally speaking. So they've had issues in the past with cappuccino bunker and all sorts of other substandard fuels, and they've dealt with it using transparency and different mechanisms. We had a fantastic number of meetings, both with governments and fuel providers in Singapore when we were there. I think a lot of what's going on is really, really exciting. But for a sheer size as a bunkering port, that's an obvious place for us to be. For the next places, we've looked at also refineries and suppliers in a number of different places, including in the Persian Gulf, but with what's going on right now, that's not -- doesn't seem to be a viable third place to set up, but we are mindful of the advantages once it becomes accessible again. But East and West Med, the Americas are obvious places. The trial that Jason spoke about with Sparkle is not just about a power plant, but it's also a strategic location for supplying fuel to shipping, right, at the natural bottleneck. So we are looking at these places, trying to identify what are the suppliers available on location that we could collaborate with. David Scott: You said in your interview this week about MSAR offers price competitiveness. So that's where our focus has to be. Is the intention to roll out MSAR commercially once the proof-of-concept data analysis is done and the proof of concept is signed off and successful by MSC? Peter Borup: We will roll it out as soon as we have a client willing to commit to it. Right now, a lot of the clients are willing to do this, their path to adoption will be much easier as a successful trial. So that's why the trial is so important. If somebody is willing to use it now, we have some experience with using the technology in the past in power plants. Now we have to prove it for shipping, but theoretically, there should be very few real issues. There's something about the mobility, et cetera. But if somebody was willing to take -- sign a takeoff agreement now, we would be willing to go ahead with that. But the trial is important for a lot of the owners we are talking to. So we do that first, and then we hope to be able to sign agreements or maybe trial supply agreements with shipowners as the trial shows some results. David Scott: And lastly, on this section, just one on sustainable ships. How is the Quadrise Fuels price model working as a sales tool? Peter Borup: I think it gets people interested. It also works as a sort of a uniform way of calculating because one of the things that we don't always talk about when we talk about biofuels or alternative fuels is that there are so many assumptions that goes in. So at what load do you run the engine, at what speed, what is the weather conditions like, at what end of the range? I mean, many of the -- certainly, many of the articles being written tends to overemphasize the high end of the range of any given product. So I think the sustainable ships platform offers a standardization of that, so we can compare better the different fuels. So I think it has helped us in getting people in the door, but it's also something we use on a daily basis when we are presenting to shipowners, or to people who are interested in the product in general to show what it would work like for a different ship type or a given conditions, or at a given time, right? Because let's not forget that fuel EU changes over time. So requirements will change in 30 and 32, I believe. And the same thing with the proposed IMO framework. So it's helpful for that reason alone. David Scott: Yes. So I'm going to go on to the technology section now, and these are primarily directed at you, Jason. So the first one is just on refinery setup. Is it true that new and updated refineries are having crackers fitted to extract more value from the input crude and that this will reduce the amount of residue available? Does this, therefore, mean that bunker and storage companies producing MSAR or bioMSAR are the path to success for Quadrise rather than refinery bio MSAR production? Jason Miles: Yes. I think in terms of existing refineries, I think those refineries actually installing, I guess, upgrading equipment in the minority. There's not many companies actually investing in downstream assets anymore. So -- but new -- certainly the case for new refineries. If you're building a new refinery, that tends to be a full conversion refinery and you don't produce any fuel oil at all. I think if you look at -- and people are doing this on the basis of a long-term plan that might be 5 or 10 years out, right, with the expectation that fuel oil or especially high sulfur fuel oil is in a decline. But in reality, it seems to be quite a popular product and it's still on the rise in terms of how it's being utilized. And there's still a very large market for heavy fuel oil. Based on our assessment, Peter mentioned before, we've got -- we've done an assessment of all the refineries available and there's at least 25 on our short list, which are really good candidates. And indeed, some of those actually have put cracking capacity in, but they still have a resid stream, which they have to blend the fuel oil, right? So not everybody is going not just because you put a cracker in doesn't mean that you have no fuel oil at all. Some still produce quite sizable amounts of fuel oil. So that's really where we see the refinery is key. I'd say that's the source of the lowest cost feedstock. But having said that, in the middle of that, refineries don't have a lot of tanks and not always involved in the bunker business. And that's where the storage companies and the bunker traders, et cetera, are also important to us as well. So I wouldn't rule them out as partners in the future because they are key to unlocking the logistics of getting it from the refinery to the end user of the shipowner. David Scott: What is the plan for supplying residual streams of bioMSAR at MAC2 to replace the HFO component and further reduce bioMSAR cost base? Also, do you plan to deliver biogenics to refineries to produce bioMSAR at the refineries, and minimize the cost base? Jason Miles: Yes. I think in terms of the, I guess, the residual streams, we're certainly looking at using the more viscous forms of fuel oil or a fuel or derivative. So the heavier the resid, obviously, the lower the cost. But it doesn't mean we can start using refinery resids at that particular facility because of the viscosity of it is just too high and the temperature that you need to handle it in makes it quite complicated from a logistics point of view. But we're certainly looking at the most viscous forms of fuel oil you can buy out there as one of the components. Yes. And in terms of other biogenic components, we're certainly looking potentially to supply those to refineries in the future where we can put a system in the refinery. Certainly, that would be an opportunity to supply them with a biofuel in the future to make the bioMSAR product as it becomes of interest. But the primary driver probably in the refinery is most likely to be the MSAR products initially. But every refinery likes to know that there's a biogenic pathway going forward as well, and we've got a range of different options and a pretty low-cost solution as well compared to some of the other things we're looking at. David Scott: Thanks. My next question is just on MSAR and bioMSAR production. Can MSAR be produced at refineries and then shipped to a bunkering location for further processing in the bioMSAR. So the question is, can we make bioMSAR out of MSAR? Jason Miles: The reality is it's a bit more problematic because MSAR has 30% water and bioMSAR has 10% water. So there's a limitation to how much bioMSAR we can turn into -- sorry, MSAR, we can turn into bioMSAR. So in reality, it's much better to produce the individual fuels. That's not to say it couldn't be blended in the future, but there are some physical limitations in terms of what you can do because ideally, what you'd want to do is replace the water with a biogenic component in the water phase. David Scott: Makes sense. Post BioMSAR, when could we expect other Biogenics to enter the bioMSAR offering at the commercial level? Jason Miles: I mean that's something we're testing at the moment. So there are -- Peter mentioned before, some available products, which are commercially sold today, but have the limitations in the case of methyl ester residues and cash in nutshell liquids and some of the other products out there that we could -- we're looking to introduce at an early stage. That requires some engine testing that we're still doing to confirm that. And obviously, then we need to present those engine test results to Wartsila and others and get a candidate vessel to actually utilize the fuel as well. So it's work in progress, but we're making very good progress in that regard in terms of offering another pathway for these products. David Scott: Okay. Just one here now on ISCC certification. Is ISCC certification a prerequisite to getting the trial agreement signed? Or does the fuel actively have to need to be produced, and the on-site setup audited in order to secure the ISCC certification? Jason Miles: Yes. So the ICC certification process, we're working on together with Cargill. We made some very good progress in that regard. And the new regulations that covers the EU, especially has simplified the process. So in terms of the application process, we're in good shape. The final part of that jigsaw is to actually get the -- an audit done once the plant is up and running -- basically once the plant is installed at MAC2 and being commissioned, that audit can take place, and that's the final rubber stamping. And to answer the first question that you had, I mean, the IC certification process is not holding up anything in that regard in terms of signing the agreements. That's purely the commercial and legal discussion being finalized between MSC and Cargill. David Scott: Yes. Okay. Thanks. There's a couple here on the financials. So I'll just deal with those ones. What is the other income of $12,000 in the interim accounts? So that $12,000 is grant income. So we received grant income for the SEASTARS project. Overall, it's about $50,000. So we've actually got that cash. And what we do is we release that in the P&L as the work against that program is completed. So as of December, we've released $12,000 against the P&L. And then a couple of questions just on where we're at with cash. I did cover that on the presentation, but just to reiterate, -- we've got 4 million at the year-end, which is still more than 1 year's worth of fixed costs despite the increases to the team and the headcount. On top of that, we're expecting USD 950,000 worth of some in from Valkor throughout the course of this year. So we need to work out where we're going to be over the next 6 months by reaching our milestones as to how long that's going to take us to. Then there's one in here as well. Shareholders have been advised that the last fund raise was sufficient to take the company through to commercialization. Given the cash holding and spend rate plus delays to revenue-generating contracts, does that guidance of sufficient cash to commercialization still hold true? And how appropriate was that guidance? So when that guidance was given, that was during -- after the last fundraise and during the last IMC, which is about 6 months ago. And that's where our projections were at that time. Obviously, things have been delayed a bit. So it's not a clear cut, but it's still too early to say. We need to see which milestones we hit over the next 6 months. The next section is on MSC, and I'm going to direct this to you, Peter. Can you provide -- can you provide detail on the delay associated with signing the MSC trial agreement and why trilateral agreement is now mentioned in the interim results RNS? Also specifically, what do you mean when you state in the RNS post-trial commercial considerations? What considerations constitute MSC putting in to paper? Peter Borup: Yes. So we have been talking about bilateral agreements, four lateral agreements and at some point, even bilateral agreements. And some of this is driven by attempts to make this work, right? So there was a concern about being subject to EU VAT in Antwerp. And that led us to look at if we could inject a bargain company in the agreement as well and hence, avoid it. It turns out not to be necessary. So we're back to a tripartite. It's not a fundamental change of the agreement at all. It's now we're back to the original tripartite, but still with a discussion over some of the terms and conditions that Cargill is going through as we speak. So that, I think, was the first question. On the second question, it was about the MSAR, was it? Of course, commercial considerations. Yes, that's really refers to the scale-up in the commercial contract, right? So my expectation is that, that will be for MSAR. My expectation is also that we need to have refineries ready, and we're hoping for MSC to use some of the leverage in helping us get in. But we're not leaving it at that. We are doing our homework. As I mentioned, we've hired Matt to help us do that homework, but we're also using 2 different consultancies who have different kinds of access and different perspective on this, and we can call on them when we need to get a little bit closer to any one of these refineries to make sure we can clinch such a supply. David Scott: Yes. Okay. Peter recently stated that the remaining parts of the draft agreements are now predictable, and we can expect signature soon. Was Peter referring to both tripartite and bilaterals, or just the tri-part idea? And have MSC and Cargill shared their view with the team that they will also expect the remaining parts to be predictable and signed off soon? Peter Borup: The outstanding contracts, a couple of bilateral ones and there's a tripartite as it looks right now, are all related. So it's the same issues that needs to be sorted out in order for us to finalize these. David Scott: So you would expect them all to be signed together? Peter Borup: I would expect it to be one signing, yes. I'm certainly hoping it will be, but I see no reasons why it shouldn't be. My conclusion that these are small is based on 30 years of doing shipping contracts and the issues that are remaining, I believe, is of a pragmatic nature rather than a principal nature. But with large companies, you want to make sure and you will involve your legal departments. So -- and that's where we're at, right? So what we can do now, I'm not going to give you a time frame because that's born to be something I regret. But what I can say is that we try to keep the pace up on this and try to make it a little bit simpler to get it expedited and push your own legal departments rather than us just waiting for it or answering us. So I think these are smaller -- I think these are -- of course, they're not small issues, but they are pragmatic issues, and we should be able to sort them out. But I'm also mindful that if you're running a fleet of 750 ships and you certainly can't get oil out of the Persian Gulf, that's probably going to be your prime area of focus right now, right? So we are competing with that. That's for sure, right? But that's one of the few things I can see should hold it up further. David Scott: Okay. Is the plan for MSAR rollout post MSAR proof-of-concept completion? Can you provide some detail on the plan once the MSAR proof of concept is confirmed as complete? Peter Borup: Well, it is that we need to be able to provide the manufacturing units in the locations where it's required. And it's going to be a gradual rollout. We're not going to open up all over the world all at once, but we will prioritize the big bunkering hubs, spoke a little bit to it earlier. So Singapore is an obvious choice. It's a very, very significant bunkering port. Maybe build out in Northern Europe, certainly in the Mediterranean at some point in the PG because on the Persian Gulf. Right now, that's off the table, obviously, and then the Americas. But that will also depend on the clients and what their preferences are, and they are also likely to perhaps change a little bit as the world changes around us. So we're flexible on that. As you know, we have collaborators who can help us scale up also on the production of these manufacturing units. Fundamentally, it comes down also to the partners we have both on the refining side and also in some places on the bio feedstock side. David Scott: Can you confirm if MSC has informed Quadrise that they'd be willing to use MSAR commercially under the interim law? And if so, how many vessels would that involve assumed agreements were reached? Peter Borup: We have not gotten into the detail like that, no. David Scott: Okay. Do MSC still regard MSAR as the main Quadrise fuel choice in the immediate future with bioMSAR use dependent on economic considerations going forward? Peter Borup: Yes, I think that's a very good question. It's probably one that MSC should answer, right? So my expectation is that there will be a strong focus on whichever one offers better saving over conventional fuel, and that would be MSAR. So I would expect that to be the case. David Scott: Okay. What is the status of MSAR supply to MSC, which we have been told is running independently of MAC2 facility with preferential supply in the Mediterranean? Peter Borup: We are assessing all the locations where we can provide this. But ultimately, it's up to -- it's also up to MSC and collaboration with us and other suppliers to determine where we can deliver the fuels. David Scott: Can you clarify the status of the interim loan oil for MSAR, and whether MSC have explicitly confirmed they would proceed to commercial use without a full loan oil following a successful proof of concept? If so, how have insurance implications been addressed to ensure this does not become a barrier to uptake? Peter Borup: Maybe, Jason, you could take the loan oil part. Jason Miles: I'll take the question if you want. I mean in terms of the interim loan oil was issued to Maersk from -- by Wartsila. So that's the status of the original interim loan, obviously, of which MSC is very much aware, right? So from their perspective, something is in place that covers that. And in terms of the, I guess, the trial itself, obviously, the test vessel is insured in terms of the product liability risk of using MSAR or bioMSAR that's fully insured as part of the development process. As part of doing the trial, obviously, you generate a lot of data and initial -- sorry, further approvals then in terms of the products that we're supplying, all of which helps to alleviate some of the initial risk that you get from insurers and others in terms of obstacles to actually move ahead. So our -- we're in very good contact with our broker and the underwriter on Lloyd's who covers this risk at the moment for us. And obviously, as data is approved upon as the tests progress, then that we should reduce the premiums in terms of using the fuel on various vessels. And we don't see that as a constraint going forward because it's being done with other fuels as well. David Scott: Yes. Okay. Have MSC indicated a desire to get our fuels used in their engines? Jason Miles: They have in the past. And obviously, Peter has been involved with discussions with M&A quite recently in Denmark in terms of what the approval process will look like. So that's something that we are progressing. So yes, I think -- but yes, for sure, M&A or Evolent is now called now are an important OEM that we need to bring up to speed as we get the data from the testing that we progress. moving to Morocco. David Scott: So we're going to move on to the OCP questions now. Can you remind us why the Morocco trial is actually needed given that there was already a successful trial in November 2023. Also, is the fuel to be used the same fuel that was shipped in December 2022? Jason Miles: Yes. So the additional test is needed because the first test that we did was designed essentially a proof-of-concept test by OCP. So that worked very well at Kariba. We basically tested both MSAR and bioMSAR. -- going in that over a short period of time. So the requirement from OCP was that that's gone well, very happy, but we need to have a longer-term test of up to 30 days depending on the kiln to get the data. So that's what we're planning for next is to complete that subsequent trial, anything between sort of 15 to 30 days is the plan at the moment. And we'll be utilizing -- we won't have to make fuel and bring it to Morocco. So all the fuels from the previous test, sorry, was utilized successfully without any problem. So it's not like we've got fuel sitting around there for that period of time, although that will probably still be stable if I'm honest. But yes, so we've been making new fuel in Morocco and using that for the test going forward. David Scott: Okay. For OCP, are you looking to set up Mediterranean fuel supplies previously? Or would the fuel now be made in Antwerp and shipped to Morocco? Jason Miles: Yes, probably have answered that one in terms of we'll be making it in Morocco as opposed to making it outside of the country at the moment. David Scott: I think this has probably gotten our post trial considerations. Jason Miles: Yes, yes, I guess this is with the OCP trial. But yes, in terms of post trial, definitely, that would be -- we'd be looking for most likely a refinery in the Mediterranean region in Africa. David Scott: Okay. And then one for you, Peter, on OCP. Haven't recently met OCP, what is your take on the general attitude to an interest using MSAR? Peter Borup: Also, I mean, we went to Casablanca for the meeting. I was quite positively surprised by their interest in using it. Also an approach that I think makes a lot of sense in involving the different business units to make sure they are motivated and they're measured on it. It's a reasonably small trial, obviously. But we have the equipment on location, if you will. And I think it makes a lot of sense for us to stick around and conduct the trial, and just make sure that the project management around it is something that we can all learn from and that it leads into a commercial takeoff agreement afterwards. David Scott: Okay. A couple of questions now on Valkor for you, Jason. Can you detail the plan on producing MSAR or bioMSAR at the Balcor facility? And how this gets to bunkering locations if MSC are prepared to trial the fuel? Jason Miles: Yes. So I guess the initial plan of Valkor is to produce an MSAR product because that's the simplest thing to do. We're using their heavy sweet oil, which is a very low sulfur asphalt type material to make a low-cost alternative to low sulfur fuel oil diesel potentially. So that's the initial plan is to produce an MSAR product. Obviously, the key thing about that is that as part of their production process, if they're able to demonstrate that the carbon intensity of the product is lower than low sulfur fuel or diesel as well, that's quite important because that gives you carbon credits we can utilize. But the initial market is to really focus on the sort of industrial and power type applications, first of all. The volumes aren't there yet or we don't expect the volumes to be there initially anyway to supply the marine sector other than maybe for the occasional trial volume. But in the past, we've discussed this with MSC at a high level. And in principle, they're obviously interested in testing it if it meets the specifications that we need to for marine fuels, especially around sort of levels of aluminum, silica, et cetera, which oil sands is important to reduce. But yes, so if it is supplied to the marine sector, we've looked into that. There are -- there's rail supply that's very reasonably low cost to get it from Utah, either to the West Coast or down to the U.S. Gulf Coast as well, which is the main markets for bunker fuel. But that's some way off at the moment. So initially, we want to stimulate a local demand, get up and running with that. And then obviously, as they expand, then we can start looking at the marine sector. David Scott: Okay. My next question is just on the status of the samples that we're expecting from Valkor, sort of why have they been delayed? And what's the current expectation? Jason Miles: Yes. I mean we've had some, I guess, some interim samples in the past, right, which have not necessarily been representative of their commercial products. So we were quite specific with them. We didn't want to waste time -- we're testing that if it wasn't essentially a good representation of what they'll be supplying. And in the meantime, they've also been changing some of the technology in terms of what they're installing, both in the oil sands plant and obviously, the downhole drilling program as well to overcome some of the issues they had initially. So that's now been settled. The pilot plant, as I mentioned in the presentation, is now up and running and producing a sample, hopefully, several [panamas] of samples that they're sending across to us. Imminently for testing, and then we obviously think can analyze that and provide a market spec for it as well that we can go out and start selling to end users. So that's all ongoing, but it has been delayed for sure, but not really down to us. David Scott: Okay. So that takes us on to spot. There's a couple of questions here. The first one is just on the Panama power market. Are you aware of the Panama 0 126 power tender where thermoelectric plants running on bunker or diesel that with long-term government contracts must convert to cleaner fuels within 36 months. Is this a target for BioMSAR, BioMSAR Zero with any of our Panama clients? Jason Miles: I mean the answer is yes. We're very much aware of that particular tender. Sparkle made us aware of it. And that's one of the reasons why it was important to get the approval of the Panamanian authorities for both MSAR and bioMSAR to be considered as alternative fuels basically to fuel oil and diesel, which they are. I think initially, the pathway will be still to go the MSAR route, first of all, to reduce the cost of generation there and be competitive, obviously, to LNG, which is the other source other than obviously renewable sources. But ultimately, bioMSAR is certainly seen as a viable means going forward as well compared to LNG and LPG, which are the main alternatives to them. David Scott: Okay. I don't think -- this is probably the last question because I don't think we've got time for many more after this. We were advised that the Panama fuel permits were expected to be received by the end of 2025. What has held them up? Are you working with the government on getting our fuels cleared to be used as cleaner fuels as per the Panama Zero 126 tender? Is this part of the permitting plan now? Jason Miles: Yes. I probably semi answered this in the last answer. But yes, I mean, in terms of the actual approval of the alternative fuels, certainly MSAR and bioMSAR are now considered by the authorities as such. In terms of getting the import permits, we actually need to have now the supply logistics nailed down in terms of which refinery, which terminal we're going to bring in, which partner potentially in Panama might we wish to use. And then we can apply either ourselves or through that particular partner for the import permit, which we've been given the procedure that we need to follow, all of which seems to be fairly straightforward, and meeting the guidelines that we're well used to in Europe and other places. So we're using internationally established guidelines to then get the fuel approved and imported. So we don't see any real holdups now in terms of other than bring the fuel in and make sure there's a commercial contract in place between buyer and seller. David Scott: Okay. Operator: That's great, David. Thank you very much indeed for moderating through the Q&A. Ladies and gentlemen, thank you for your engagement this afternoon. I know investor feedback is particularly important to you. And Peter, I'll shortly redirect those on the call to give you their thoughts and expectations. But before doing so, I wonder if I may just ask you for a couple of closing comments. Peter Borup: Yes. Thank you so much for listening in. Thank you for your support. Thank you for the many very good questions. I know there are a couple of questions that have come in on the platform live during our presentation. We will address them, as David mentioned earlier, on the platform latest by next week. So once again, thank you very much for listening in. Operator: That's great. Thank you very much indeed. Ladies and gentlemen, we will now redirect you for feedback. On behalf of the management team of Quadrise, we'd like to thank you for attending today's
Operator: Hello, and welcome to the Bit Digital Fourth Quarter and Full Year 2025 Earnings Conference Call. We'll begin shortly. [Operator Instructions] As a remainder, today's call is being recorded. I'll now turn the call over to your host, Cameron Schnier, Head of Investor Relations at Bit Digital. Cameron, please go ahead. William Schnier: Thank you and welcome to Bit Digital's Fourth Quarter and Full Year 2025 Earnings Call. Joining me today are Sam Tabar, our Chief Executive Officer; and Erke Huang, our Chief Financial Officer. Before we begin, I'd like to remind everyone that certain statements made during today's call may be considered forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our SEC filings, including our Form 10-K filed March 27, 2026. We will also refer to non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in our earnings materials available on our website. Following our prepared remarks, we'll open the line for questions. With that, I'll turn the call over to Sam. Sam? Samir Tabar: Thank you, Cam, and thank you for everyone for joining. I'll start with our progress in 2025 and how we are positioning the business. We repositioned the company as a strategic asset company or SAC, centered on Ethereum and AI infrastructure. We began exiting Bitcoin mining, built a scaled ETH position and established WhiteFiber as a core asset. Let me start with our Ethereum strategy. We view ETH as core infrastructure, a productive asset, not a passive holding. It allows us to participate directly in network activity through staking within a disciplined risk framework. For investors, Bit Digital provides a yield-generating way to gain productive exposure to the broader Ethereum network. We combine treasury ownership and staking income and disciplined capital allocation. Our focus is on increasing ETH per share, not just growing the balance. We are not optimizing for short-term scale. We are optimizing for long-term compounding. We approach this through a risk-adjusted lens, prioritizing security, liquidity and counterparty quality, while identifying opportunities to enhance returns. The recipe includes capital efficiency, yield generation and long-term compounding. Our ETH position has grown more deliberately than some others in the market, that is intentional. We believe this approach allows us to scale over time without compromising the balance sheet. We've also been deliberate in how we deploy capital across market conditions. We are not accumulating ETH at any price. We are disciplined with how we use equity with a focus on long-term value per share. We are seeing more opportunities to deploy capital, but we will only do so if it's accretive per share. We continue to believe Ethereum is foundational infrastructure for digital assets and on chain financial activity and that its role will expand over time. We expect staking income to become a meaningful and recurring contributor to cash flow. Staking revenue grew nearly 300% in 2025. Nearly half of our full year staking revenue was generated in the fourth quarter, reflecting the scaling of our ETH position over the course of the year. Turning briefly to Bitcoin mining. We continue to wind down the business in a deliberate manner. As of year-end, our active hash rate was approximately 1.5x exahash. We are not allocating growth or replacing capital to this segment. Exposure will continue to decline and mining is no longer a strategic focus. But it does continue to generate cash flow as we complete the transition. Hash rate will continue to decline gradually, while efficiency improves as old miners retire first. Turning now to WhiteFiber. Our ownership in WhiteFiber provides key exposure to AI infrastructure, where demand for compute continues to outpace supply. We view this as a long-term position aligned with structural growth in the market. Our focus is on supporting the platform asset scales. We have also been clear on our intentions with respect to our ownership. We do not intend to monetize our WhiteFiber position in 2026. We view it as a core long-term strategic asset and a key part of our exposure to AI infrastructure. This ownership stake is a key differentiator for Bit Digital. It is a high-quality liquid asset on our balance sheet that provides differentiated flexibility as we scale the business. Over time, this flexibility can support capital allocation across the platform while reducing reliance on dilutive sources of capital. As we look ahead, our priorities are evolving. The next phase of the SAC model is building durable cash flow. This is critical to supporting continued investments and compounding across the platform. We expect to expand our operating footprint through disciplined investments. Our focus is on acquiring or building assets that fit our framework and generate consistent returns. Across Ethereum and AI infrastructure, our approach is consistent, capital efficiency, discipline, long-term compounding. We have operated through multiple market cycles as a public company. Volatility is not new to us. Our focus remains on execution and long-term value creation. I'll now hand the line to Erke to discuss our financials. Erke Huang: Thank you, Sam. I'll walk through our fourth quarter and full year 2025 results. Our 2025 results include WhiteFiber, which we continue to consolidate following its IPO. A portion of the results is attributable to noncontrolling interests. First quarter revenue was $32.3 million, up from $25.8 million in the same period last year. Full year revenue was $113.6 million, a 5% increase compared to 2024. Results reflect growth in cloud, colocation and staking alongside the wind down of Bitcoin mining. Fourth quarter results were also impacted by digital asset revaluation, similar to the full year. I will now break down revenue by segment. Revenue from digital asset mining was $27.3 million for the year, down 53% compared to 2024, reflecting the continued wind down of the business. Cloud services revenue was $68.8 million, up 50% year-over-year. Colocation services revenue was $8.9 million up from $1.4 million in the prior year. Ethereum staking revenue was $7 million, up from $1.8 million in 2024. As of year-end, the majority of our ETH holdings were actively stacked, supporting ongoing yield generation. Overall, our revenue mix continues to shift away from mining and towards staking and infrastructure-related revenue. Now turning to profitability. Gross profit for the fourth quarter was approximately $18 million, representing a gross margin of approximately 56% compared to approximately 40% in the same period last year. Net loss attributable to Bit Digital shareholders was $84.9 million for 2025, compared to a net income of $28.3 million in 2024. This change was largely driven by a less favorable year-over-year impact from digital asset revaluation. Adjusted EBITDA for the year was negative $24.9 million compared to a positive $73 million in 2024. A change reflects the same dynamic, where were noncash digital asset revaluation offset improvements in our operating businesses. Now turning to balance sheet. We ended the year with $118.4 million in cash and cash equivalents compared to $95.2 million at the end of 2024. This balance primarily reflects cash held at WhiteFiber, which is consolidated in our financial statements. Total digital assets were $415.7 million at year-end up from $161.4 million in the prior year. This reflects ETH accumulation partially offset by lower year-end ETH prices. During the year, we issued $150 million of convertible notes, which are reflected on our year-end balance sheet. Proceeds were used to increase our ETH holdings. Overall, 2025 reflects a transition in our business and financial profile. We reduced the exposure to Bitcoin mining, scaled newer revenue streams and repositioned the balance sheet around Ethereum and our ownership in WhiteFiber. Looking ahead, we expect our results to increasingly reflect recurring revenue and cash flow with less attribution contribution from legacy mining and reduced exposure to volatility over time. With that, I'll turn it back to Sam for closing remarks. Samir Tabar: Thank you, Erke. I'd like to close with a few thoughts on where we're heading. We've made significant progress repositioning Bit Digital as a strategic asset company. Today, we are a business built around 2 core pillars, an Ethereum treasury and staking platform and a majority ownership stake in WhiteFiber, which gives us exposure to AI infrastructure. We believe that combination is differentiated. We believe it is difficult to replicate at scale. And we do not think it is fully reflective on how the company is valued today. We are not standing still. We are not trying to be a vehicle that simply raises capital to buy ETH. We do not believe that creates long-term value. Our objective is to build a business that can generate cash, deploy that capital efficiency and compound value over time. That is the next phase of the SAC model. We believe adding a durable cash flow engine is critical to that evolution. It allows us to grow our ETH position in a more sustainable way and reduces reliance on external capital. M&A is part of that strategy. We are actively evaluating opportunities to acquire or build operating businesses that align with our framework and can generate consistent returns. We're focused on assets we understand. We will prioritize long-term value creation over speed. Importantly, we also have flexibility that many others do not. Our ownership in WhiteFiber is a high-quality liquid asset that provides flexibility as we scale the business. It supports growth without relying on dilutive capital and gives us exposure to AI infrastructure alongside our Ethereum strategy. At the same time, we remain fully aligned with WhiteFiber's long-term success. As we've said, we do not intend to monetize that position in 2026. The goal is simple, build a business that generates cash, deploy that capital into high conviction assets like Ethereum and continue compounding value per share over time. We have evolved the business significantly over the past year, and we expect that evolution to continue. We have operated through multiple market cycles, and our focus remains always on discipline, execution and long-term value creation. With that, operator, we can open the line for questions. Operator: [Operator Instructions] The first question comes from Nick Giles with B. Riley Securities. Nick Giles: Appreciate the update. Sam, I'm intrigued to hear that M&A may be of increased focus. Can you give us a sense for what that could entail? Would potential targets be other [ DAT Cos ] that may have a lower [ MNAV ] than yours? And kind of what would be the rough framework we should be thinking about? Samir Tabar: No. It would not be other [ DATs ] it would be a business that has -- that is generating cash or is on its way to generating cash so we can deploy that capital and invest it into Ethereum. We think that's the better way. In some ways, we have that already, but we're sunsetting a business, which is Bitcoin mining. So that is generating cash. That's another differentiator that other [ DATs ] don't have. But that is not a business of the future of Bitcoin mining. And we've known that for a long time. In fact, we're the first ones or one of the first ones to announce that publicly. So we are looking -- we are actively in the market right now, quite active looking at M&A opportunities. They could be crypto-adjacent businesses aligned with Ethereum, aligned even potentially with agentic AI that has an intersection with Ethereum. There is an intersection between agentic AI and Ethereum. And so if we can find a business that has a very clear path towards cash flow related to those work streams, those 2 sectors, we are very, very much interested. And so we've been actively in the market. We've already spoken to many candidates actually. You've got to kiss a lot of toads before you find that prince or princess. And so in our case, it's a matter of time when we find it, we have been very successful in M&A in the past. And therefore, that being for WhiteFiber when we acquired Enovum, but that's for WhiteFiber today is about Bit Digital. And we intend to make a successful acquisition as we've done for WhiteFiber, but this time for Bit Digital. Nick Giles: And that's super helpful. That's exactly what I was looking for. My second question was just can you speak to some of the trends you're seeing across the Ethereum network? I think in the past, you've spoken about stablecoins being built on top and a number of developers that are using the Ethereum network. Just anything you're seeing out there that's kind of away from the price pressures that we see on our screen. Samir Tabar: Yes. I mean with respect to the price pressures, it's difficult to avoid talking about that. I think there's been a lot of macro movements. I think 2 things happened with respect to price pressure. I know you're not asking about that, but I do want to make a comment about it. I think there was a rotation into gold. We're now seeing that rotation out of gold and coming back into crypto. I also think that there is obviously macro pressures, such as the war that's happening, that's caused a darker mood, but that is coming to an end. So I think those price pressures were not helpful, the movement towards gold and the war, but we're surfacing out of those 2 trends, so now coming back into crypto. So I'm glad to see that happen. But with respect to Ethereum, the blockchain itself, I think it was Jamie Dimon that said the era of experimentation is now over. Let's start using these technologies. And I fully agree with that comment. The era of sandboxing this technology, the era of experimenting is over. And it's just -- the old world is now just changing, especially with AI people are seeing that you just can't hold things together in the old way. And so all these intermediaries and all these -- it can be all streamlined through blockchain and agentic AI. And I think we're really living in an era where that old world is breaking down quite rapidly now, the 2 battering rams being blockchain and then AI. And so it's bound to happen. It's not if, it's when. And I agree with the sentiment that the era of experimentation is over, let's get out of the sandbox. The regulations are becoming more clear, and we should be seeing more of a golden age. In Ethereum and I think it's going to be Ethereum in particular because it doesn't have any downtime. And I don't think institutions can deal with a protocol that has uptime issues. Operator: Our next question will come from George Sutton with Craig-Hallum. George Sutton: Sam, so could you just walk a little in more detail around your recipe that you mentioned and the things that you are contemplating relative to building that ETH per share? Samir Tabar: Yes. I mean we have a pretty unique recipe. A lot of people classify as DAT. That's a sub-strategy that we have. We're very different. If you look at our peers, we have, believe it or not, a profitable Bitcoin mining business that, of course, we are sunsetting. We have 70% majority stake in WhiteFiber, and WhiteFiber isn't the topic of the conversation today. But I mean, just -- there's obviously a lot of -- I can't comment the price of particular stocks, but I can comment certain facts that, for example, WhiteFiber has an $865 million contract. And has a hyperscaler that is attached to the end of that contract with respect to North Carolina site. Again, this is about Bit Digital. But my point is there aren't many companies that are positioned to have an infrastructure investment in the digital space, that being Ethereum, that we have an investment of a real business with incredible contracts attached to it with respect to WhiteFiber. We have, oh, by the way, an ongoing business with Bitcoin mining that we are sunsetting but their revenues, it's still profitable. And now we are in the market very actively in M&A, and what we want to do with that business is take the cash flow from that business and create a flywheel that we take the money from that business and it has to be a high-growth business and pour that into Ethereum. And by the way, we also have a non-dilutive source of capital through WhiteFiber in the future. So if you take -- if you have a source of capital, all these levers that other DATs don't have, the WhiteFiber lever, the business that we intend to acquire in the future with its cash flow, these are real businesses, and we take that and we pour that into buying Ethereum. We think that is the way forward instead of just being a shell company that you just subbed a bunch of Ethereum on, and you're just basically doing that, which we don't think is really the best way forward. And I think it's also highly dilutive. You need different levers, that's the recipe. George Sutton: I understand. Just on the agentic AI that you mentioned this morning relative to Ethereum, I believe the last number was something like 11,000 agents operating through 402 protocols. Can you just give us a picture of how well positioned ETH is versus other blockchains relative to the agentic AI token side? Samir Tabar: Can you rephrase that question? Are you asking basically what's the intersection between agentic AI? And well, it has a lot to do with identification, but I'm not sure that's your question. Are you asking about the activity? George Sutton: Well, you mentioned for the first time today that you're contemplating in agentic AI-related acquisition... Samir Tabar: It's definitely one of the -- just to be clear, it's a possibility. It's something we're looking into. We've always called out the trends before they happen in the mainstream, and we were the first DAT basically. We got out of Bitcoin mining were. We're the first ones. We did the AI infrastructure company. We believe that agentic AI is a huge future, and what we're interested in are businesses, blockchain businesses that have an intersection with the agentic AI. We think the agentic AI economy is going to blow up in a major way, and we want to participate in the agentic economy. That's our thesis. George Sutton: Understand. Just one other quick question with respect to the CLARITY Act. I'm just curious your thoughts on that, your thoughts on likelihood of that getting through? And as it's currently constructed, how do you think it would influence the ETH assets that you own? Samir Tabar: This is almost more of a political question. I'm happy to go there. So I think that there are going to be -- I think the November elections are very much in play and whoever controls Congress is going to have obviously some influence on whether certain legislation gets passed. I think the Democrats have a choice to make. If they're going to try to weaponize technology like they did in the last election, that's going to be very problematic. I hope that they've learned their lesson, and I hope that they do not go the way of Elizabeth Warren, and they're more enlightened in their posture towards new technologies like blockchain. And if they do that, if the Democrats have learned their lesson from the last election cycle, then I do believe that the CLARITY Act will have a chance to pass. It all depends on political parties not weaponizing and politicizing technologies. Operator: And the next question will come from Kevin Dede with HC Wainwright. Kevin Dede: Would you mind digging in a little bit on the Ethereum yield strategy you're considering? I know at one point, you had wrapped ETH or liquid ETH. I'm wondering if you're considering lending or borrowing on Aave. What sort of DeFi applications or initiatives might you consider building your Ethereum returns? Samir Tabar: I'd love to pass that question over to our CFO, Erke. Erke Huang: Kevin, so far, majority of our ETH has stayed native. And in the past, we had explored restaking, liquid staking and all those strategies. But to make a very simple majority as native. And we are exploring some strategies around enhancing the return. But so far, we think native staking provides the most, I would say, research risk justified returns, until we see other opportunities we might pursue, that's the strategy right now. Kevin Dede: The press release, Erke, the press release talked to 89% and of your balanced staked. Are you running all of that staking on your own validator nodes? And what would it take for you to go to a full 100% staking? Erke Huang: Yes. We worked with Figment for native staking. That's through the partnerships and they run their nodes for us. And with respect to the 10%, that's with our third-party fund managers. We deploy with them. That's generating about 3% to 4%, so which is higher than 3% negative staking awards, working with a number of external fund managers to get the enhanced yield. Our target is to increase, let's say, from 10% to 20%, but really, it depends on what the strategies are and what the size of the strategy that would allow us to generate such returns from the market, especially from the risks associated with deploying those strategies. So we're super careful about working and selective working with different counterparties. Kevin Dede: Thanks, Erke. You nipped my last question in the bud on counterparty risk. So I'll flip over to Sam. A lot of discussion on M&A activity. Can you offer a time line? Is this something you hope to close before the end of the year? I know you want to keep it -- you want to keep yourselves open and want to hold yourself to any obligation, but can you just kind of give us something to look forward to. We appreciate it. Samir Tabar: Sure. Last time I spoke about time line. I got into some hot water. So I want to make sure I don't discuss time lines too aggressively, and I don't want to be optimistic. I prefer to be much more conservative when it comes to time lines. But I could tell you what is happening. We've been on calls with M&A candidates for the past couple of months since early this year. In fact, we started that process. Yes, I think early January. And it's a long process because frankly, there's a lot of trash out there. So we want to make sure that we are -- we buy a business we really love and is aligned with our philosophy in the future. And we don't want to buy some sort of impaired business or some business where is just -- it's just not for us. So in terms of when that will happen, I can't give you a time line, although I do hope for it to happen, I believe that don't hold me to it, that will happen this year. But I want to make sure -- I want to make it clear that it's more important that we do the right acquisition, and we don't rush anything and buy the wrong business, because that will end in tears for everybody. So we have to be really careful on who we acquire. And we have a very -- we have a fantastic track record in M&A, and we intend to use that talent in spotting the right acquisition candidate to provide at least some value for BTBT. Kevin Dede: Yes. So Sam, on that topic of being careful and the due diligence process, do you think you need to supplement your headcount in analyzing where you think agentic AI software development is and how legitimate the targets you're looking at are? Samir Tabar: Yes. I mean, again, it could be agentic AI. It could be more of an ease adjacent play. We're still looking at the various candidates. But I think your question is -- just to be clear, if we were to acquire that company, they will have headcount. So that headcount will automatically increase when we acquire X... Kevin Dede: No, no, I understand that -- I understand that, Sam. I was just wondering if you think you need new people now to help you in the review process? Samir Tabar: Yes. I mean there's -- we are going through -- we are -- there is actually an active process going on in hiring headcount that is going to be looking at this, although we have a number of executives looking at this very closely, as well, all the candidates, all the M&A candidates that we have been speaking with. We're all -- there's a bunch of us on the call, and we are screening people out. There have been some interest in candidates, by the way, and those conversations continue. But to answer your question directly, Kevin, we are hiring another person to help with the due diligence process of all this. And of course, once we figure out our top 3 candidates, we'll have to go through a more even deeper dive process, and then we'll be hiring the bankers and lawyers and so on. Operator: And the next question will come from Mike Grondahl with Northland Securities. Mike Grondahl: Another question on the acquisitions you're looking at for BTBT. It sounds like you're looking to buy an acquisition that generates cash. Can you talk a little bit about the size of acquisition and how you would finance it? And then secondly, if we could get kind of an update on the financing for WYFI, that would be great. Samir Tabar: So the financing for WYFI, that was -- we did do the WhiteFiber earnings call the other day. And I believe that script and the audio recording of that is posted on our website. We'll have that sent to you. So it's a much longer conversation, although it's an exciting one on WhiteFiber with respect to financing. And going back to your first question, with respect to the sizing, it depends on the candidate. It depends on, of course, we do still have a balance sheet. And perhaps there are ways to finance it off the balance sheet. But I think we do have a healthy balance sheet still, and we'll be using that to acquire the candidate we will have in mind as part of our overall strategy for Bit Digital. And again, I want to remind everybody on this call that no one is doing these things, not -- I just see DATs just pressing the button, having 1 lever. And I don't think that's the way to go. Even strategy this week stops doing that. It's not -- it's kind of a dumb strategy to just buy the digital asset, and that's it. I mean what kind of headcount do you need for that strategy, not many people. So we're trying to put some intellectual heft and differentiate ourselves. And we've done that so far with our exposure to AI infrastructure. We've done that. We already have Bitcoin mining business that continues to throw cash. And we're buying ETH not at any price. And so now with respect to acquiring a business, that's throwing off cash or has a promising path towards throwing off lucrative cash, that's going to be an additional lever for us to buy Ethereum in a non-dilutive manner, which I think is the way forward. Operator: And sir, do you have any further questions? Mike Grondahl: No. Operator: Thank you. And at this time, there are no further questions. Samir Tabar: Thank you, everybody. Thank you very much for attending this call and listening to us. We really look forward to the future and how we'll continue to differentiate ourselves, and we're really excited by it. So we look forward to the next quarterly call. And thank you very much for today. Operator: Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day.
Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to VolitionRx Limited Full Fiscal Year 2025 Earnings Call. [Operator Instructions] This conference call is being recorded today, April 1, 2026. I would now like to turn the call over to Louise Batchelor, Group Chief Marketing and Communications Officer. Please go ahead. Louise Batchelor Day: Thank you, and welcome, everyone, to today's earnings conference call for VolitionRx Limited. Before we begin, I'd like to remind everyone that some of the information discussed on this conference call will include forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions. Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be materially different from future results, performance or achievements expressed or implied by these statements. We have identified various risk factors associated with our operations in our most recent annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. We do not undertake an obligation to update any forward-looking statements made during the course of this call. Cameron Reynolds, Group Chief Executive Officer, will open the call, providing a summary of key achievements in 2025. Terig Hughes, Chief Financial Officer, will then provide a financial report, before handing over to doctors Retter and Micallef, who will present research highlights from across our product pillars. Cameron will close with a discussion of upcoming milestones. We will then open the conference call to a question-and-answer session. And with that, I'll turn the call over to Cameron. Cameron Reynolds: Thanks, Lou, and thank you, everyone, for joining Volition's full fiscal 2025 earnings call today. As always, we very much appreciate your time given the busy earnings call season. Before diving into detail, I would like to take a moment to reflect on our founding mission. We set off over 15 years ago to help save lives and improve outcomes for millions of patients worldwide. And I could not be prouder of the progress we have been making towards that goal. In the fourth quarter of 2025, we not only received our first order for the new Nu.Q Cancer assays for clinical certification ahead of routine clinical use in lung cancer, but we also announced the inclusion of our Nu.Q NETs assay in real-world interventional evaluation of early detection of sepsis in a government-backed, approximately $7.3 million, program in France. Our tests are about to be used in both these devastating diseases to help save lives in the real-world hospital settings, an extremely proud moment for our entire team. Cancer and sepsis are leading causes of death, accounting for approximately 1/3 of deaths worldwide. With the first clinical use now imminent, we're about to be part of the solution, through simple, easy-to-use, low-cost tests. I believe we will look back on 2025, this first quarter of '26 and even in time, the next few quarters, as transformational for the company. In 2025, efforts for Volition focused on commercializing our groundbreaking Nu.Q platform in the human diagnostic market. We're excited to start the implementation of our human licensing strategy with the signing of not 1, but 2 agreements. The first, with antiphospholipid syndrome, APS, with Werfen; and a co-marketing service agreement with Hologic. Both are multibillion dollar companies and worldwide leaders in their specialized fields, and we are delighted to be working with them. We have further strengthened our intellectual property portfolio and are continuing our licensing discussions with around 10 of the world's leading diagnostic and liquid biopsy companies. These discussions are at various stages of negotiation process across all our different pillars, and we anticipate announcing additional agreements throughout 2026. Our goal is to secure a wide range of licensing agreements in the human diagnostic space, mirroring our successful strategy in the vet market. And we anticipate diverse deal structures with potential for upfront and milestone payments and future recurring revenue. We have developed a truly remarkable, versatile platform and are working with governments and some of the biggest diagnostic and liquid biopsy companies to make our technology available worldwide as quickly as possible. Beyond licensing, we also achieved several significant commercial milestones in 2025. In the first quarter, we recorded our first revenue from sales of our CE-marked Nu.Q NETs automated assay, a regulated, clinically approved product. NETs, or more specifically NETosis, goes far beyond just sepsis and is implicated in a very wide range of diseases. Currently, 12 hospital networks across a number of countries are evaluating our Nu.Q NETs assay across 15 different clinical use cases and indications. We believe NETs testing will become a key part of routine blood testing. In February of 2025, we announced our first commercial sale of Volition's proprietary high-throughput NETs method that measures neutrophil extracellular traps, NETs, activation and inhibition in whole blood in real time, helping companies develop new therapeutics to combat sepsis and other NETs related disease. In March, we signed an agreement with a leading pharmaceutical company to utilize Volition's Nu.Q Discover biomarkers in a longitudinal Phase I/IIb study, the first human clinical study with a pharmaceutical company sponsor that our test supports. Through our Nu.Q Discover pillar, we are now serving close to 100 clients worldwide, including many top pharma and diagnostic companies, accelerating disease research and drug development across multiple therapeutic areas. Some of these pharmaceutical companies are progressing to late-stage clinical trials using our assays as pharmacodynamic biomarkers. We estimate the total addressable market for relevant companion diagnostics to be a little under $1 billion. In 2025, we delivered substantial revenue growth for Nu.Q Discover, which Terig will detail. And we anticipate a similar trajectory in 2026. The Nu.Q Vet Cancer Test is the #1 canine cancer screening blood test in the world, now available in over 20 countries. To further accelerate revenue growth and ensure consistent delivery, we focused on central lab automation. In March of 2025, Fujifilm Vet Systems extended their contract to implement a centralized automated platform for the Nu.Q Vet Cancer Test using IDS i10 made by Revvity. Subsequent to year-end, in March of this year, we announced the completion of all validation and verification of the chemiluminescent immunoassay, ChLIA, version of the Nu.Q Vet Cancer Test with Fuji Vet Systems in Japan, allowing use of full automation rather than menu plates in central labs. This is a world-first and will significantly enhance turnaround times and throughput to meet increasing demand. We believe that central lab automation is crucial for scaling of our vet business and integrating our tests into routine pet wellness panels. Importantly, this automation platform is the same technology utilized for our human diagnostic products Nu.Q Cancer, Nu.Q NETs and Nu.Q Discover, highlighting the inherent synergy and efficiency of our core Nu.Q platform. From a product expansion perspective, we made great progress with our research in the use of Nu.Q NETs in cats. In May of 2025, we announced the publication of our first clinical paper reporting the detection of nucleosomes in cats. And subsequent to year-end, in early January of this year, we reported results from a clinical study demonstrating the high accuracy of its Nu.Q Vet feline assay in detection of lymphoma in cats, the most common cancer in the species. At 100% specificity, meaning no false positives, the assay detected over 80% of feline lymphomas. This breakthrough marks the development of what we expect to be the world's first simple, affordable blood-based liquid biopsy test for feline cancer, a significant unmet need in veterinary medicine. This opens up the potential for cancer screening and monitoring in cats. There are more than 60 million cats in the U.S. alone, 25% of which are senior cats, and therefore, suitable for an annual check. This represents a tremendous commercial opportunity for Volition. The publication of this study in a peer-reviewed journal is expected subsequently to unlock a $5 million milestone contract payment. And we will also generate ongoing revenue in this large and growing market where our technology meets an unmet need, incredibly quick progress from a product development perspective and great to add a third species for Nu.Q. I will return at the end of this call to discuss some additional recent achievements and upcoming milestones, but now will pass over to Terig for a finance report. Terig Hughes: Thanks very much, Cameron, and hello, everyone. I'm now delighted to provide a full fiscal year financial report for the year to December 31, 2025. From a revenue perspective, we finished the year strongly with year-on-year growth for Q4 of 133%. For the full year 2025, we recorded $1.7 million in revenue, a growth of 40% over the full year 2024. And I'm delighted to report we received our first revenue from the CE-marked Nu.Q NETs product in Europe during 2025. We also received our first order for Nu.Q Cancer from Lyon for the certification of our cancer test in their hospital network, more of which from Andy later in the call. As we have stated previously, at this early stage of commercialization, revenues remain fairly lumpy and difficult to predict from 1 quarter to the next. So while I remain confident of continuing to see solid growth year-over-year, we will not be providing revenue guidance for 2026 at this point in time. From an expenditure perspective, we significantly reduced operating expenses, which were $4.8 million lower, a reduction of 17% compared to the full year 2024. And indeed, looking at the trend over the last 2 years, we are now operating at significantly lower levels of expenditure. Furthermore, we will continue to take measures to reduce costs further over the coming year. Net cash used in operating activities was $19.7 million in 2025. This compared with $25.9 million in 2024. Cash and cash equivalents at the end of the year totaled approximately $1.1 million. However, subsequent to year-end and through March 25, we received approximately $5.4 million in net proceeds from our at-the-market or ATM facility and $1.9 million in net proceeds from issuance of a convertible note to Lind Global Asset Management LLC. We continue to receive significant support from agencies of the Walloon Region in Belgium. And subsequent to year-end, we announced nondilutive funding of approximately $2.3 million. This takes the nondilutive funding support from all sources from inception to date to over $25 million. So to summarize the finance report, key indicators are trending positively. Revenue was up 40% year-on-year; operating expenses were down 17% on a full year 2025 basis; net cash used in operating activities was down 24% year-on-year. We continue to work on reducing our underlying operating expenses. We expect to secure a $5 million milestone payment from our existing agreement in the vet space. And last but not least, licensing discussions are progressing well, and I look forward to providing updates as they progress. Throughout 2025, and indeed subsequent to year-end, we have made significant scientific and clinical progress. And so with that, I will hand over to Andy and Jake. Andrew Retter: Thank you, Terig, and hello, everyone. I appreciate there is an incredible volume of information shared on these calls, so I will try and limit my comments to what I believe our recent important clinical achievements. I'll start with Nu.Q NETs. NETosis is an area of increasing scientific interest with a significant number of research articles published in recent years. In February, a review article entitled "The NET effect: Neutrophil extracellular traps, a potential key component of the dysregulated host immune response" was written by myself alongside 2 key opinion leaders in the sepsis arena, Professor Djillali Annane and Professor Mervyn Singer. This paper has already been accessed more than 11,000 times and cited in almost 60 peer-reviewed publications. From a clinical utility perspective, we have published 2 key papers. The first was with the team from UMC Amsterdam, looking at more than 1,700 critically-ill patients. Our paper is available free to download from Critical Care. The second paper, available on medRxiv, written with our colleagues in Jena, is another independent study looking at 971 patients with sepsis. Together, the data from these studies show that Nu.Q H3.1 accurately distinguishes sepsis from noninfectious systemic inflammation. It is strongly correlated with disease severity and provides excellent prognostic information for outcomes such as organ failure, specifically renal failure, and mortality. The prognostic power of H3.1 measured at ICU admission significantly exceeded existing severity scores, such as APACHE II and the SOFA Score. As a result of this convincing evidence, in December, we were delighted to announce the inclusion of our Nu.Q NETs test as the sole biomarker in the DETECSEPS study, a real-world evaluation using H3.1 in combination with the National Early Warning Score to promote the early detection of sepsis and try and promote the flow of patients for emergency rooms. This is a problem every health care system in the world faces. Not only is DETECSEPS led by prominent clinicians, it's also backed through financing from the French government. DETECSEPS aligns with Volition core purpose of operationalizing our understanding of epigenetics and, in particular, of H3.1 in clinical practice, to help identify and monitor the severity of disease. The DETECSEPS program provides an opportunity to receive individualized care adjusted to the risk of deterioration or risk of progression to multiple organ failure. It is a great privilege to be involved in such a program. And we hope that through earlier identification and risk-stratification of patients, many lives can be saved. We also hope that by improving the flow of patients out of the emergency rooms, that we can help hospitals run more efficiently, sending people home safely, escalating and expediting care to those patients who need it most. These efficiency gains could be huge and have a real impact on the entire running of hospitals and improve the delivery of health care. I think you can understand why we say it has an impact in all health care settings. Our final exciting development in 2025 has the potential to be a game-changing technology, not only in disease where time is critical, such as sepsis, but also in providing our tests to lower-income countries where laboratory infrastructure may be weak or nonexistent. Specifically, this is the development of a lateral flow test for point-of-care quantification of nucleosomes. In July 2025, we reported the quantification of nucleosomes in whole blood in minutes utilizing a simple lateral flow device. I'm delighted to say the second phase of research is now well underway, with the first patient recruited for comparison between whole blood and capillary blood in critically-ill patients. This really is a technology to look out for in the coming months. And hot off the press, we are delighted to announce this week the publication of a study with our colleagues at the Mayo Clinic in the journal, Shock. The Mayo Clinic study of 674 trauma patients demonstrated that nucleosome levels, as measured by Volition's Nu.Q H3.1 and Nu.Q H3R8 Citrulline tests, are elevated in people that go on to have complications from trauma. The identification of reliable biomarkers in trauma is a clinical challenge and remains a significant unmet need in the emergency and surgical settings. Professor Park, the principal investigator and senior author of the paper said, "These biomarkers could aid in early risk identification and may inform targeted preventive strategies in trauma care." For my part, I believe this is a significant study not only for clinicians, patients and their families, but also for Volition. A peer-reviewed publication with the Mayo Clinic Research team strongly supports our efforts to commercialize our Nu.Q NETs products. Indeed, my overall sentiment is that this study, together with our previously published evidence, demonstrates that Nu.Q NETs may enable clinicians and researchers to anticipate disease, guide treatment decisions, understand disease trajectory and monitor patients over time across acute and chronic conditions. Turning to Nu.Q Cancer and, in particular, lung cancer, where the first clinical use of Nu.Q is now imminent. Nu.Q Cancer represents a significant advancement in lung cancer patient management, offering clinicians an additional tool to enhance precision in treatment selection and monitoring. Research conducted by our long-term collaborators in Taiwan and Lyon consistently demonstrates that our Nu.Q Cancer technology empowers clinicians to make informed treatment decisions that provide valuable new monitoring capabilities through the patient journey. From a publications perspective, the first NTU manuscript was published in March 2025, coincidentally, almost the same day as the first patient was enrolled in the validation study. The NTU team also presented data at the North American Lung Cancer Conference in Chicago in December, and then as recently as last week's ESMO's European Lung Cancer Congress. Both posters support the use of Nu.Q Cancer preoperatively to help identify patients at high risk. High H3K27 trimethyl nucleosome levels predicted poorer recurrence-free and overall survival outcome. Whereas a lower H3K27 trimethyl level indicated a significantly better outcome. Joint Lead Author, Dr. Chen, commented that "The Nu.Q Cancer technology supports a practical approach to empower clinicians to make a more informed treatment decision and provide valuable new monitoring capabilities throughout the patient journey." This is excellent endorsement indeed. And I know from the commercial team, that they are now looking forward to how we can provide the test in routine clinical practice. Together with our colleagues in Lyon, we've also presented at a number of conferences and prepared a further 2 manuscripts for a submission to peer review publication, the first of which has just been submitted and the second is due to be submitted in the coming weeks. These results demonstrate that measured methylated nucleosome biomarkers at non-small cell lung cancer diagnosis can provide valuable information about survival -- progression-free survival and crucially help enhance the identification of patients who may benefit from more intensive therapy and potentially offer them curative care. As Cameron said at the top of the call, we made our first sale of our Nu.Q Cancer assays to the Hospices Civils de Lyon, one of Europe's leading cancer centers. And subsequent to year-end, we have announced, with the support of our Lyon team, the preparation of our reimbursement submission to the French government. Reimbursement is the next step on the path to the first use of Nu.Q in clinical practice, an exciting prospect which is core to Volition's mission of using our tests to help save lives. Reimbursement will be a major milestone for Volition in the commercialization and licensing of Nu.Q Cancer. Once achieved, we anticipate the introduction into routine clinical use in France by the fourth quarter of 2026. This is a truly exciting and rewarding prospect. And with that, I will pass you over to Jake, who will give you an update on another significant project. Thank you, everyone. Over to you, Jake. Jacob Micallef: Thanks very much, Andy, and hello, everyone. I'm just going to be talking about one project today, Capture-Seq, which we've had several announcements about, the first in December and others in more recent weeks. Volition is, I believe, the first company to demonstrate the isolation and analysis of greater-than-99% pure circulating tumor-derived DNA. To set the scene, the biggest problem facing liquid biopsy worldwide is that the vast majority of circulating DNA in blood plasma samples comes from healthy cells, not from cancer cells. In a world-first new technology, Volition has overcome this hurdle and produced greater-than-99% pure cancer-derived plasma DNA sequence sets for liquid biopsy. Our manuscript, submitted in November and previously announced in December 2025, described a new liquid biopsy chemistry for isolating CTCF DNA from plasma. Subsequently, our continuing work on CTCF-bound DNA has revealed what we believe to be an unprecedented new discovery: that there is almost no CTCF-bound DNA in healthy plasma, and almost all CTCF-bound DNA in the blood of a cancer patient is derived from cancer cells, i.e., it is virtually pure circulating tumor-derived DNA. Removal of background normal cell free DNA from the blood to reveal this level of tumor-derived DNA has been a long-term goal of liquid biopsy. In this updated manuscript, we report a new 2-step method for preparing virtually pure circulating tumor DNA sets for cancer patients. The first step is the physical enrichment of the sample, and the second step is the bioinformatic removal of virtually all remaining nontumor cfDNA sequences from the DNA sequence data set. This new method produced more than 99% pure ctDNA sequencing data sets for blood samples from cancer patients. And whilst we capture a subset of the circulating tumor DNA, not all of the circulating tumor DNA in a sample, it is virtually pure cancer DNA. These methodological and technological breakthroughs represent a novel liquid biopsy method for a novel class of potentially thousands of liquid biopsy sequence biomarkers, representing, in my opinion, the biggest scientific breakthrough in cancer testing and monitoring in recent years. Last week, we released data from a blinded validation cohort of 81 subjects, including 59 colorectal and lung cancer patients and 22 healthy controls. And we were extremely encouraged by the results, particularly in early-stage cancer where we detected more than 95% of Stage 1 and Stage 2 cancers. For patients, the potential significance is huge. If validated in larger cohorts, CTCF Capture-Seq could contribute to multi-cancer early detection, fulfilling a significant unmet clinical need. We also believe Capture-Seq has the potential to play a role in cancer management, including but not limited to, minimal residual disease detection, including tumor-naive minimal residual disease detection and treatment monitoring, either alone or potentially in combination with other technologies. Volition is, I believe, the first liquid biopsy company to focus on circulating cell free nuclear proteins, and we have filed a number of new patents to protect this technology. As you can imagine, this has generated a lot of interest, and we're in active discussions with several large liquid biopsy and diagnostic companies to accelerate the development and launch of this technology as soon as possible. And with that, I'll pass over to Cameron for his commercial perspective and wrap-up. Cameron? Cameron Reynolds: Thanks, Jake. Let me start by congratulating you, Andy and the whole innovation, research and development and the clinical teams on the truly amazing progress you have made, not only this year but over the last 15 years. We set out to help save lives and improve outcomes for millions of patients worldwide, and we're making huge progress towards that goal. With the first clinical use now imminent in both early sepsis detection and lung cancer management, we are about to be part of the solution, through simple, easy-to-use, low-cost tests. Our vision is for our technologies to be incorporated into tests that will be used first by millions, and ultimately, hundreds of millions of people and animals a year, with our platform licensed to a range of large diagnostic and liquid biopsy companies and governments worldwide. Combining our groundbreaking technology with their installed base of labs, analyzer machines and sales forces around the world, we will achieve the optimal outcome for us. Large companies have the resources to realize the opportunities better than Volition. The total addressable markets, TAMs, for our technologies on an annualized basis are multibillion-dollar opportunities, not only for Volition, but for our licensing partners too. Volition has made strong progress both clinically and commercially. Our goal is to secure a wide range of licensing agreements in the human diagnostic space, mirroring our successful strategy in the vet market, and anticipate, similar to vet market, diverse deal structures with potential for upfront and milestone payments and recurring revenue. As mentioned earlier, we are continuing our discussions with around 10 of the world's leading diagnostic and liquid biopsy companies. These discussions are at various stages of the negotiation process across all our pillars. Our laser focus is on executing licensing agreements, and we will update you as they complete. Thank you for joining our call today. We very much appreciate it. We will now take your questions. Operator? Operator: [Operator Instructions] Our first question is from Justin Walsh with JonesTrading. Justin Walsh: As we see more from Capture-Seq, it would be great if you could provide some additional color on the current state of the liquid biopsy field, where maybe the field has seen some success and where alternative approaches have fallen short. And then maybe related to this, some takeaways on the failure of the large NHS-Galleri trial to achieve its primary endpoint. Cameron Reynolds: Yes. So we tend not to criticize the other companies. I mean they're often well-run companies with good people trying to do good things. But I think it's very fair to say our discussions with everyone, no one out there is very -- since their current testing modality is where they really needed to be in early-stage detection for multi-cancer detection, or an MRD for treatment-naive, that's obviously not something either, so there is 100% an opportunity for anyone who can develop something which is truly routine, which ours is, low cost and easy to use, which ours is. And it certainly appears to be very accurate, we're doing more and more study, but the early work is incredibly encouraging. So I think in any space like cancer detection, there's going to be a number of parties. No company, no matter how good the technology, will be everything. But I think there's a very strong case to be made we will be a big part of cancer detection in the human space, like we are in the vet space, starting with the fantastic lung work, which is in the process of being reimbursed, which is incredibly encouraging, and of course, the strong promise we have from Nu.Q Capture, which could either be used in conjunction with what's currently used or potentially a test in itself. And given the early-stage detection that we have shown, that's certainly a possibility. So overall, I think we've got something which is very special in what we do. And we're working with a number of groups now. Obviously, we can't say who they are; it's confidential. But we have a lot of active discussions going. These are things which are far bigger than we can commercialize ourselves. And the bigger companies certainly have the installed capacity or the knowledge in particular areas, like screening and MRD. So we'll be updating as those hopefully come to fruition, hopefully, in the near term. And we're expecting a lot of news on that through the year. But as far as individual ones go, I guess, I read the news, there's been a lot of things which have not turned out exactly how they wanted. But we always say, we will succeed if we deliver a good platform. So we haven't spent a lot of time concerned about everybody else. There's always going to be a place for a routine, accurate, low-cost test, and that's exactly what we think we've developed. So we're working hard on commercializing. Operator: Our next question is from Yi Chen with H.C. Wainwright. Yi Chen: My first question is, could you comment on how do you expect the Nu.Q Cancer assays to ramp up in terms of volume throughout 2026? And my second question is, can you just provide some general comments on how many new licensing deals you expect to close this year? Cameron Reynolds: I'll start with the deals. And the first question, I didn't quite understand, what -- can you repeat the first question, please, Yi? Yi Chen: How do you expect the volume of the Nu.Q Cancer assays to ramp up through 2026? Cameron Reynolds: Okay. I'll have the CFO to answer that. I'll deal the deals. Look, it's very hard to know. We've signed several in the human space already with fantastic companies. We're working with 3 multibillion-dollar companies in the human space now. Revvity has launched a CE-marked kit in Europe on its platform. Revvity via PerkinElmer, obviously, a very large company. They very much like what we do. We're working with Hologic on the Discover side, on the marketing, which is very exciting. And we're working with Werfen now on the NETs kit and the process. So if you look at each individual area, I think, ultimately, the NETs test will be something that's extremely widely used. And the uses, as we've said, go way beyond the massive market of sepsis. Just yesterday, I believe it was yesterday -- anyway, these last few days, we announced the Mayo Clinic results which show, if you had trauma, a very elevated level -- I mean I've looked at the numbers, it's quite spectacular. Very elevated level if you've had trauma. And even higher, and I mean, very, very high, you can go through the numbers again in the paper, if you've had VET (sic) [ VTE ]. And trauma is one of the biggest -- well, highest cause of death of people below 50 in the world and one of the major causes of admission to emergencies. So another massive use for our NETs test. So deal-wise, there's all the NETs tests. We're talking with more companies now on the capture side, which is obviously very exciting. The governments are working on the lung cancer monitoring side, as you know. So it's hard to say which of the 10 or so companies will be first and what the order will and how many there will be. But I think I'd strongly suggest we will have multiple deals with different companies, different governments this year. And I think it will be across cancer and probably NETs as well. And then we're also working with groups on our recombinant nucleosomes and on Discover. And don't forget, we do have 100 clients in Nu.Q Discover now, and some of those are coming to the stage where they're going to become quite large in process where they come into clinical studies where they become very serious amounts of revenue. So overall, I can't give you an exact number, but I'm sure, I'm quite certain we'll have deals. And we're trying to get them out as quickly as possible because we basically stopped the R&D side and we're now on just commercialization because we have an absolute mountain of opportunities in all of the pillars. And we're very happy with how those deals are progressing. And the volume, Terig? Terig Hughes: Yes. So I think as Cameron mentioned earlier, we're in the process of submission preparation for the reimbursement. Yes, that's, obviously, that's an H2 event in terms of approval of that. And so we'd expect it to be about Q4 by the time we get that reimbursed product into routine clinical use. So we haven't built a huge amount in this year given the timing, but we would expect it to ramp fairly quickly once it's in routine clinical use. Cameron Reynolds: And the Nu.Q NETs now is in IVDD, in the process of being IVDR, so we're recording some revenue for that. But at the moment, we're not providing guidance, to be conservative. Obviously, there's a lot of things happening and they're all moving forward. But exactly when in the year it happens, obviously, will greatly affect when we can start recurring revenues. But they're all making progress, and they'll all be coming on stream, we think, in the next few quarters. Operator: Our next question is from Steven Ralston with Zacks. Steven Ralston: I looked into the revenue streams that you expect from the different pillars going forward and it seems to be quite complex because there are different avenues in each area. The one in Nu.Q Vet is developed and it's basically dependent on the partners and how successful they are in their different geographic regions. Can you make a comment on the rate of acceptance of the vet test for canines among the different partners you have? And are there any commonalities of the more successful ones of how they've ramped up usage? Cameron Reynolds: Yes. So I think there's several different partners there. So between all of them, the one strong message we got -- so obviously, our revenue is growing, but -- which, in a normal company, 40% will be very good, but obviously, we're looking for a lot more than that to really ramp. The key message from all of them, the key to that is to have it in a centralized lab. Currently, the vast majority of market, like over 80% of testing in dogs is done through a centralized lab. The only option currently we have available in centralized lab up until few weeks ago was microtiter plates, the plastic plates. So obviously, that's not great if you're trying to do millions of tests. A centralized hospital network, and there are several in the U.S. and France, you could get hundreds of thousands or millions of tests per network if it's part of a wellness panel or what they call the index of individuality. We obviously have not cracked them yet. And a key part of that is the acceptance, but also being able to run maybe potentially hundreds of thousands of tests per month. So you've probably noticed Fuji, who have been fantastic partners and very proactive, have shown it now works on the centralized lab. The fantastic Revvity machine, which we're now using also for NETosis in Europe, the CE-marked machine, the same one. So that will start flowing through. So it comes down to -- it's lumpy between quarter-on-quarter and when they order a batch and when they don't, because the plates can last up to a year. Obviously, Antech has also launched the small machine, but that's also subject to them selling and getting those machines in lots of different places. So that's not going to be an exponential growth by any means. So it has come down to that. But don't forget also, we are now working on felines, which potentially, I don't think will actually double the market, but theoretically, it doubles the market because there's more cats than dogs in the world, and that's making good progress. And obviously, we've got Nu.Q Capture, which potentially has uses in all this as well. So there's a lot of things going on in vet, and it's very hard to predict once -- if and when a centralized lab system in the U.S. goes for the centralized machine, I think that's something that could then accelerate very quickly. But in the meantime, it's kind of lumpy and bumping along with the rates of growth you can see. So it's hard to tell. But our commercialization efforts in the last 6 months are very much focused on the human space. We're extremely keen, lung reimbursement in Europe, that's EUR 50 per test, so that's a lot more per test as well. And if it's -- once it's approved, we expect it to be by the end of this year, then obviously, that's a very good revenue source. And the CE-marked kits are out there, so we spent a lot of effort changing from IVDD to IVDR, so it extends indefinitely from the time limits we currently have. And of course, we've put a lot of effort into licensing Nu.Q Capture. So the vet has not been the focus of the company, but it's obviously important to keep it ticking over. But we have made progress in the cats and the centralized labs, and we're looking perhaps even for transcription factors in dogs and cats. Steven Ralston: Now you even went into an area that I wanted to ask you about next, is that, in Europe, you seem to have a very strong foothold with these hospital networks in the areas of sepsis and lung cancer. Cameron Reynolds: Yes. Steven Ralston: Is that a model for the -- for your global emphasis? Or it just happens to be that this is the first foray? Cameron Reynolds: A bit of everything. So ultimately, what we have in Europe is a fantastic, large, multinational company in Revvity, so PerkinElmer, who have the machine which our test works on very well. They've undertaken to put it in lots of different locations. There's over a dozen large hospital networks which are testing. So our CE-marked is any NETs related inflammation. So that's obviously a lot of different things. You've seen the Mayo Clinic, that also involves trauma, and trauma is potentially as big as everything else. It's quite remarkable how versatile it is. But as Volition, we don't want to be doing 10 studies in trauma, in sepsis, in COVID, in APS, in HS, all those things. So we've shifted a lot to our partners doing the work, like Werfen, for example, in inflammatory diseases, like all the companies doing it in the process. So we are also looking for a large or several large diagnostic companies to -- you know who the large diagnostic companies are, to take it on. And I think as Andy said, the evidence is getting more and more overwhelming that NETs is going to be a very, very, very large product. So if you take all the issues in sepsis, all the issues in all the autoimmune diseases, add in trauma and COVID, it's just obviously huge. So it's been part of our strategy to get other people to buy our kits and do these studies. Again, the issue, just take their own time, but we're not spending. But I think that the big daddy of all those is the French government, which has spent, $7 million, $8 million, whatever it is, on an interventional study to test and hopefully launch our product as the screening test in France, in conjunction with NEWS, which are the physical symptoms, the non-biomarkers. Now if that does go well, and I think there's a very good chance it will, we won't know till the end, but we've seen it work very well in sepsis, we will become the test in France, which I think then we'll become the test in Europe. And then it becomes extremely easy to license to a large international diagnostics to do a 510(k) in the U.S. to also launch there. So our strategy has been: develop the platform, make sure it's incredibly robust, reproducible, reliable, make sure it's certified, which it is now in the first platform, get other people to do the work. And I think that's been a tremendous success. And to get them to do the leg work to show what the cutoff should be. So it fits in with our global strategy, and now we're working with the big diagnostic companies to get the first one of them to license on large auto-analyzer machines beyond the Revvity machine that we have now. Does that answer your question, Steven? Steven Ralston: Oh, yes. Very much so. Cameron Reynolds: Yes. And just on a personal note, just to finish, I think it's incredibly gratifying. I don't know if everyone understands necessarily, an interventional study means it's used on real people in real life, and those decisions are taken based on our test. That's going to be this year when the study starts. So that's -- the confidence they have in the test, this is not a university exercise or someone doing some samples from the freezer. It's an interventional study. And I don't quite know how much that would cost in the U.S., we didn't get it costed, but it's an awful lot more than the $8 million I think the French government is spending on it, to do it, say, in the U.S. So a huge amount of very valuable work being done for us, and it shows the level of confidence in what we do. And it's very heartening for us as a team to have them being used on actual saving people's lives this year. Operator: Our next question is from Bruce Jackson with the Benchmark Company. Bruce Jackson: I wanted to follow up on the Capture-Seq paper, the -- it's a fabulous study. I'm curious to know how amenable is this process to front-end automation in the lab and how easily could it be integrated into like an MRD test or a liquid biopsy test in the lab? Cameron Reynolds: Jake is here, our Chief Scientist. So that's probably a Jake question. Jake? Jacob Micallef: Bruce, thanks for the question. Yes, very good question. Essentially -- well, first of all, the updated, revised version of the manuscript is live on Research Square now. So that's public. And exactly how it works and how we've proved that we really have produced pure tumor DNA, all of that's in the paper and publicly accessible to everybody. In terms of the question, the basic process involves 2 parts. So the first part is a magnetic antibody. So it's the same as an immunoassay, it's the same as a Nu.Q immunoassay, it's the same as a PSA assay or a CTA assay. And the second part is sequencing. So immunoassay is easy to automate and the sequencing is actually much less involved than the sequencing that is involved in other tests, because we've removed all the background so there's actually less DNA to sequence. And of course, there's, in the end, there's less analysis because most of the analysis is involved in trying to work out whether any of the DNA came from a cancer or not. But if you've removed everything that didn't come from the DNA, that analysis also becomes like a PSA test, it shouldn't be there. If it is there, it came from the cancer. So I think it's -- at the moment, what we do is manual, but it is extremely suitable to be automated. Cameron Reynolds: And just some indications of costs, Bruce, people ask us this. It's -- we can answer that in a couple of ways. So the capture side, which as Jake said, the magnetic bead, the antibody, the immunoassay, at the moment, may cost us $100, but that's going to come down, but not to $10 or $20, but somewhere more like $60, $70, $80, something like that, to do the capture side. Then as Jake said, it depends on the sequencing. Those sequencing really depends on what the panel looks like, how many markets you have. But that could be a few hundred dollars or $500, depending on where we end up and how the panel looks. But that's sort of the cost you're looking at for the tests, that sort of $80 if -- for the capture and then the sequencing. If it's shallow sequencing or oxidizable sequencing, shallow sequencing, it won't be a lot. But that's really to be determined. And that's actually something our partners are looking at when we're looking at licensing. Obviously, they're the sequencing experts. So it's not a low-cost test in the sense of ELISA that costs us just $1 or $2 to make, but it has a strong potential to be tissue-specific and very accurate. So I think the market certainly would bear a few hundred dollars for that test, as we talked about. But that's all in process. But no, it's incredibly encouraging and an amazing breakthrough for a small company to have managed to concentrate. And people say, how did we do it? What made us able to do it? We're the experts at chromatin fragments, CTCF fragments. Everyone has ignored the ultrashort DNA for a whole lot of reasons. The sequencing machines don't tend to do much below 100. And we're experts at nucleosomes and now are experts at transcription back bound DNA. So we've really done something -- 15 years of heartache and pain getting where we are has made us very good at chromatin fragments. And this is just another chromatin fragment. So it is actually a quite easy process. It's a magnetic bead with an antibody and sequencing. Obviously, there's a lot of sequencing there and a lot of work to get to where we are. But at its heart, it's a very simple process, which I think can be optimized a lot from where we are. Bruce Jackson: Okay. Great. Then just a couple of quick finance questions. What's the anticipated timing of the feline cancer milestone? I know the paper has to be published before you get the milestone, but would that be like a second quarter event potentially, a third quarter? Terig Hughes: So it's difficult to predict, but we do expect to collect that money this year. We are in the process of submitting that paper, which is the final step in completing the requirements for the milestones. So we do expect to have that completed shortly. And then it's, like I said, it's difficult to know exactly which quarter it's going to fall into in terms of collecting that money. But we certainly expect to collect it this year. Bruce Jackson: Okay. And then last question for me, on the operating expense profile for 2026. Would you expect that to be up, down or about the same as 2025? Terig Hughes: So I think, yes, we've made a lot of progress over the last 18 months in terms of bringing the costs down. We're now operating at a significantly lower burn rate than we were 18 months ago, for example. Nevertheless, we're continuing with cost-saving actions, and we're targeting take out another 25% to 30% from the cash OpEx this year. That's not all going to happen in one fell swoop. That's going to take us through the end of the year to achieve that so that the exit run rate is that much lower. I think in terms of quarters, it's a bit lumpy and difficult to predict. But I wouldn't expect a sequential reduction in the first quarter. First quarter is always a little bit heavier and there are obviously some severance costs to take into account. So I think I would expect going through the rest of the year to see the cash OpEx burn rate coming down. Again, yes, it's not a one -- you won't see a one big drop. It's going to continue to come down over the quarters over the rest of the year. Cameron Reynolds: And I think, Bruce, something just to say from more of a take a step back, we are obviously cutting because we understand the climate and we understand Volition and we need to cut. But also it's a fundamental shift in the company. We spent a lot of our time and effort on studies, on research, on papers and processes, which we're just not doing anymore to anywhere near the extent that we were. Because, as you said, the French government is funding the interventional study in sepsis. Mayo Clinic did a lot of that work, obviously, in the trauma and is publishing itself. All those groups, Revvity selling kits to -- in Europe, are on the whole paying for the kits, and so we're not funding those studies. So overall, it's coming down a lot because we are no longer spending on our days doing R&D. We're commercializing. And I think we have an absolute pile of products, which I think are world-leading, to commercialize now. So we're shifting the cost base down quite a few notches so that we can, A, extend the runway; but B, it's just a fundamental change in our business. We are not intending to do a lot of research studies anymore. We're firmly in the commercialization path. Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Cameron for closing remarks. Cameron Reynolds: Thank you, everyone, for listening. I know it's been a very interesting year for Volition. And obviously, we've made a tremendous amount of progress. It's been a tough year in a lot of ways, as you can probably tell, but something where we, I think, we've made very strong progress in a lot of areas. And I can assure you, we're absolutely focused on getting products commercialized now. So hopefully, we'll have a lot of news on that through the rest of this year and we can really turn the corner on the commercial side to be a strong commercial company where we've been a very strong R&D and IP company. So keep a close eye out, we should have a lot of news throughout the year. Thanks again for calling in. Bye. Operator: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.
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