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Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October, and came in line with Reuters-polled economists' average estimate.
Jim Bianco, Bianco Research, joins 'Fast Money' to talk the state of the U.S. economy, the latest inflation read, the impact of Japan's rate hike, and more.
The S&P 500 and Nasdaq composite rallied Thursday on a cool CPI inflation report. Nvidia, Palantir and Tesla bounced.
Calculating housing costs presented one of the thorniest challenges—and they make up a huge portion of the price index.
Keith Lerner, Truist, and Warren Pies, 3Fourteen Ventures, joins 'Closing Bell Overtime' to talk the day's market action.
Market Domination Overtime anchor Josh Lipton breaks down the latest market moves for December 18, 2025. President Trump signed an executive order today to expedite the rescheduling of marijuana.
In 2026, I favor sectors with stable cash flows that have been sidelined for years. I am avoiding AI-related stocks, even US hyperscalers.
Federal Reserve Bank of Chicago president Austan Goolsbee says there is a lot to like in November's CPI report but he would like to see more ‘sustained' progress before voting on a rate cut on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #austangoolsbee #goolsbee #federalreserve #fed #chicagofed #cpi #inflation #economy #economic #markets #finance #ratecut #monetarypolicy #analysis #business #america
Dow, S&P break losing streaks despite economists' caution on CPI report.
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Economists are viewing the delayed November consumer price index report with a dose of skepticism. The November data release Thursday was delayed by 8 days because of the U.S. government shutdown, but more importantly, the October data was canceled, leaving it to the BLS to make certain methodological assumptions about the prior months' inflation levels.
CNBC's “Closing Bell” team discusses the November CPI data that was muddied by the government shutdown, what may be next for the U.S. economy and more with Jan Hatzius, chief economist at Goldman Sachs.
A vote on legislation banning members from owning or trading stocks could get a vote in the new year, according to House leadership and Republican members. The commitment comes as rank-and-file members sought to use a procedural tool to bypass Speaker Mike Johnson and force a vote.
The PMI flash report for December is showing that the growth is losing momentum, and the weakness is likely to extend into 2026. The unemployment rate increased to 4.6%, above the Fed's 4.4% prediction for 2026, but high inflation expectations could prevent the Fed from further easing.
The central bank votes 4-1 to lower the benchmark rate target to 7% from 7.25%.
Operator: Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the Full Year 2026 Consolidated First Half Results Conference Call of Sesa. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Jacopo Laschetti, Stakeholder and Corporate Sustainability Manager of Sesa. Please go ahead, sir. Jacopo Laschetti: Good morning, and thank you for joining the Sesa Group presentation. Representing the group today are Alessandro Fabbroni, Group CEO; Caterina Gori, Investor Relations and Corporate Finance and M&A Manager; and myself, Stakeholder Relations and Head of Sustainability. Earlier today, the Board of Directors approved the consolidated financial results for the first half of the fiscal year 2026, ended October 31, 2025. The corporate presentation is available on the Sesa website and will serve as a reference throughout today's conference call. Alessandro will begin by providing an overview of the key business developments and achievements. Alessandro Fabbroni: Good morning, everybody, and thank you for joining our group presentation. In the first half of 2026, Sesa started the implementation of the new '26-'27 industrial plant by evolving our data-driven digital market-oriented and people inspired platform for enabling the sustainable growth of corporates and organizations with a specific focus on organic growth and skills development in a challenging market scenario confirming growing demand for digitalization, Sesa has achieved its goal of consistent organic growth in revenue and profitability by strengthening our position in the key areas, catalyzing digital transformation such as cybersecurity, cloud, AI and automation, vertical and digital platform by enabling the value creation from our stakeholders. The group's transformation from a technology to a leading digital integrator has improved with investment focus on skills development and the adoption of the so-called digital enablers. In the first half of 2026 on a consolidated basis, Sesa achieved revenues and other income for EUR 1.6 billion, up by 12% year-on-year, and EBITDA for EUR 114 million, up 11.4% year-on-year, and the net profit adjusted for around EUR 50 million, up by 17% year-on-year. On an organic basis compared to the half year pro forma, including the first half 2025 data of Greensun, consolidated revenues grew by 5.5% year-on-year, EBITDA by 6.0% year-on-year, and group net profit after taxes adjusted by 7.6% year-on-year. The second quarter '26 alone, show a great acceleration in consolidated revenues, which achieved EUR 755 million, up 16% year-on-year compared to reported years and 9.4% like-for-like compared to pro forma, and an increase of operating EBITDA by 16.6% compared to reported figures and 8.4% compared to pro forma. With a group [ EAT ] adjusted increase by 30% compared to reported figures and 17% compared to pro forma. Consolidated revenues show positive contribution from all group sectors. ICT VAS, recorded EUR 939 million, up 2.1% fully organic with a great recovery compared to the decline in first quarter '25 with a down of 2.7%, driven by the high single-digit growth achieved in the second quarter, up by 8.1%. The positive November backlog trend up by 25%, will support positive trend for next quarters. Digital Green VAS reported EUR 210 million up by 26% compared to the first half '25 pro forma, driven by the extension of the double-digit growth achieved in the first quarter '26 and thanks to a strong performance in the copper market, driven by the increasing energy demand associated with digitalization and AI adoption, system integration and software sector reported EUR 420 million, up by 4% year-on-year, showing resilient performance despite the slowdown of demand in some made in Italy districts and the reengineering process affecting some business units. And finally, Business Services achieved EUR 74 million, up around 7% year-on-year, extending its entirely organic job driven by the development of applications for the financial services industry. Consolidated EBITDA increased by 11.4% year-on-year, up 6% in comparison with the pro forma reaching EUR 114.4 million compared to EUR 102.7 million as of October 2024, with an EBITDA margin of 7.1%, broadly stable year-on-year, thanks to the growth trend in the VAS sectors, both Green and ICT and the Business Services one. ICT VAS reported EUR 42.7 million, up 6.6% with an EBITDA margin equal to 4.5%, up from 4.4% year-on-year. Digital Green VAS recorded EUR 14 million EBITDA, up 30% compared to the first half '25 pro forma with a 6.7% EBITDA margin compared to 6.5% year-on-year. System integration achieved EUR 43.4 million, down 1.9% with an EBITDA margin equal to 10.3%, reflecting the reengineering operations in some business units of the sectors with an expectation of EBITDA margin stabilization FY '26 at similar levels to FY '25. Business Services reported EUR 11.6 million, up 6.6% year-on-year and 15.8% EBITDA margin stable compared to the previous year. In the second quarter 2026 alone, Business Services revenues accelerated with an 11% growth driven by the start of some multiyear contracts not yet translated into a positive impact on profitability. Consolidated EBIT adjusted amount to EUR 86 million, up 9.2% year-on-year, up 2.5% compared to the pro forma after depreciation and amortization for EUR 26 million, up around 14% year-on-year, and provision for EUR 2.7 million. Consolidated EBIT reached EUR 65 million, up 8.8% year-on-year after amortization of intangible assets relating to customer lists and know-how for EUR 17.5 million in line with the 2026, '27 industrial plant, net financial expenses show a significant decrease equaling 11% compared to first half '25 improving by 15.5% in the second quarter 2026 alone compared to the second quarter '25. Thanks to lower interest rates and the actions to enhance the group's financial management efficiency. Consolidated EAT adjusted amounted to EUR 50 million, up 17.1% year-on-year and 7.1% compared to the pro forma, reflecting the growth in operating profitability and the reduction in financial expenses. Group net profit adjusted reached EUR 45 million, up 13% year-on-year from EUR 40 million in the first half '25, up 7.6% year-on-year compared to the pro forma 2025, while consolidated reporting profit to reached EUR 34 million, increasing by 19.4% compared to around EUR 29 million in the first half '25, up by 5.6% year-on-year compared to the pro forma figures. In the period under review, Sesa Group selected its M&A investment and improved its payout ratio in accordance with the new industrial plan. Group reported net financial position as of October '25, including EUR 208 million of IFRS debt was negative. That means net debt for EUR 119 million improving compared to EUR 122 million compared to the pro forma figures. Following last 12 months investment for EUR 140 million, of which EUR 37 million in the first half alone, including EUR 80 million of M&A investments, of which EUR 23 million in the first half. And after last 12 months buyback and dividend distribution of around EUR 35 million, which EUR 30 million in the first half 2026. Now I give the floor to Caterina for presenting our M&A strategy and the main resolution of the last shareholders' meeting and Board of Directors of today. Caterina Gori: Thank you, Alessandro. After years of significant M&A activities, our new FY 2026, 2027 industrial plan represents a strategic shift with a clear focus on simplifying the group and accelerating organic growth. We will capitalize on the capabilities and business model we have developed over the years to drive sustainable growth, supported by target CapEx in AI, automation and skill development to enhance efficiency, scalability and market penetration. As a result, annual M&A investments are expected to decline to around EUR 30 million, following a selective valid driven strategy, while CapEx is expected to be roughly EUR 50 million per year. In the first half of FY '26, we further strengthened our international presence through 4 strategic acquisitions, all within the SSI sector. Two M&As consolidated in the first half of FY '26 with total investments of approximately EUR 7 million. The first Visicon GmBH in Germany and SAP Consulting Specialists with EUR 5.3 million of revenue. And the second, Delta Tecnologías de Información in Spain, an AI-driven player in digital identity, we used 2 million in revenue. Both companies delivered EBITDA margin above 10% and 2 additional M&As with total investment of approximately EUR 7 million. Albasoft, a EUR 2.2 million software company, specialized in treasury and finance manager solution; and 4IT, a Swiss cloud and managed service company with EUR 9 million of revenue. Both companies will be consolidated from November 2025, delivering EBITDA margin above 10%. The deal structure is designed to ensure the long-term commitment of key people in target companies with an entry valuation of around 5x EBITDA, adjusted for net financial position and consistent with our standard approach. These acquisitions confirm our strategy. a selective approach to high-value M&A in Europe, together with continued strong investments in digital transformation areas such as AI, automation and digital platforms. As outlined in 2026,2027 industrial plan, we are fully commitment to generating strong cash flow and delivering solid returns to our shareholders. As demonstrated at our latest shareholder meeting on August 27, 2025, where we approved a dividend of EUR 1 per share, in line with the previous year with EUR 15.5 million distribution completed last September. A significant increase in the share buyback program from EUR 10 million in FY '25 to EUR 25 million for FY 2026 to further strengthen shareholder value by raising the payout ratio from 30% last year to 40% this year. The shareholder meeting on August 27, 2025, approved a new EUR 25 million buyback program structured in 2 phases. The first EUR 15 million phase completed October 9 and the second EUR 10 million phase beginning on November 6, 2025. Sesa held 142,706 treasury shares of October 1, 2025 and 246,868 as of December 12, 2025. Equal to 1.609% of share capital. Today, the Board of Directors approved the cancellation of an additional 157,522 shares, representing 1.03% on share capital which is part of the 1.609% treasury share mentioned above. And finally, the cancellation of treasury shares up to a maximum of 2% of Sesa share capital over the next 18 months. As of August 27, 2025, approximately 1% of shares has already been canceled. And today, we completed the plan of the cancellation of an additional 157,522 shares. Additionally, last October, we signed a binding agreement for the sales of the controlling stake held by DV Holding in Digital Value SPA subject to the fulfillment of certain conditions precedent, including Golden Power and antitrust approvals. Upon completion of the transaction, Sesa plans to disinvest a 6.6% stake in DV Holding for an expected gross amount of around EUR 11 million compared to an initial investment of around EUR 4 million. This transaction is expected to generate a positive impact of around EUR 7 million on [indiscernible] consolidated net profit. This investment is fully consistent with the 2026, 2027 industrial plan. which focuses on strengthening core activities and provides for the possible disposal of nonstrategic assets, in line with the disciplined and optimized approach to capital allocation while leaving us room to evaluate selected nonstrategic disposals in FY '26. I now invite Jacopo to present our ECG (sic) [ ESG ] results for the first half of FY '26. Jacopo Laschetti: Good morning again, and thank you, Caterina. During the first half of the fiscal year 2026, we continue to focus on integrating sustainability in our strategy. monitoring at the same time, key ESG KPIs to measure progress and the achievement of the target set out in our sustainability plan. This approach allows us to keep a constant view on our environmental, social and government performance. and to guide our operational and strategic choices. Our sustainability plan for '26, '27 approved by Sesa Board of Director on last July, defines priorities targets and specific actions to integrate sustainability in our business model, contributing to the creation of long-term value for our stakeholders. The generation, long-term valuation, sustainability and digitalization continues to be the core pillars of our strategy, defining the group's purpose. In this context, we are also delighted to announce that we have retained the EcoVadis Platinum rating, the highest level in the assessment model, which recognizes the group's commitment and achievements in the ESG field. This milestone further confirms the strength of our approach and reinforces Sesa's position as a reliable and responsible partner for customers, investors and stakeholders. In terms of HR management, we are facing a phase of consolidation with an increased focus on work and collaboration, and the progressive integration of digital enablers in our organization and the way we work. After a great improvement of our human capital over the last 4 years in the first half of fiscal year 2026, we increased the headcount by 1.7% compared to April 30, 2025 in line with our strategic industrial plan. We continue to work to further improve our loyalty rate, reinforcing at the same time, our education, hiring and welfare programs. We provided specific measures to support parenting, diversity well-being and work-life balance, thanks to dedicated programs in favor of diversity and inclusion. Now I give the floor again to Alessandro for the final conclusions. Alessandro Fabbroni: Many thanks, Caterina and Jacopo, I will now share the final remarks and conclude our session. Six months ago, we presented our new industrial plan aiming at group transformation by focusing on organic growth of core businesses, organizations streamlined, growing operating efficiency and market penetration by reinforcing our role as leading digital integrator and partner of the customers' digital transformation. In the first half of 2026, we worked strongly to deliver the main strategic targets of the industrial plan, driving organic growth across the group sectors, streamlining legal entities and in particular, adopting AI automation and digital enablers to boost operating efficiency, and group transformation both internally and towards our customers. Thanks to our strategy, we strengthened our position as a leading digital integrator with a strong focus on cybersecurity, AI, automation, vertical application and digital platforms for the business segment. In particular, in the first half of 2026, we achieved a mid-single-digit growth in revenues and profitability, driven by the great acceleration of the second quarter 2026 with revenues improving by 9.4% year-on-year, EBITDA by 8.4% and group EAT by 17% like-for-like. A 20% organic growth in both revenues and profit of Digital Green VAS fueled by strong business demand, rising energy needs resulting from digitalization and AI adoption. The back to growth of ICT VAS up by 2.1%, revenue, 6.6% in EBITDA and by 15% in group EAT, of which in the second quarter only, a growth by 8.1% revenue, 16% in EBITDA, and around 13% at group EAT level, and 6.8% organic growth in revenues and 15% growth in profitability of the Business Services sector, with a decrease in marginality during the second quarter only due to the start of several multiyear new orders with major customers. A significant reduction in net financial expenses has been achieved [indiscernible] down by 11.6% in first quarter 2026 and by 15.5% in the second quarter 2026, reflecting the ongoing recovery trend driven by lower market interest rates, and the efficiency measures implemented in full year '25. In light of our second quarter 2026 strategic achievements, and a disciplined way we have been executing in the new industrial plan, today, we confirm our commitment to deliver all growth targets we have outlined last July for the new fiscal year '2. That means 5% to 7.5% regarding of revenues, a 5% to 10% organic increase in EBITDA and around organic 10% increase in net consolidated profit confirming that we are on track to achieve our key value generation targets for our stakeholders. Considering the positive trend of our net financial position and cash flow generation, we have been delivering the planned 40% payout ratio by executing the new EUR 25 million buyback program approved by the last shareholders meeting and a 2% share capital cancellation. The goal for the remainder of the fiscal year is to execute with great commitment, the new 2026 and '27 industrial plan, in line with the targets and guidance we already communicated by focusing on organic growth, operating efficiency, the adoption of digital enablers and in particular, inspired by a corporate vision oriented towards sustainable growth and digital innovation. Thank you very much for your attention. Now we open as usual, the Q&A session. Operator: [Operator Instructions] The first question comes from Aleksandra Arsova of Equita. Aleksandra Arsova: One question on my end. Maybe some color on the guidance. So you seem confident to confirm the guidance, but maybe can you clarify which could be the elements that could potentially drive the guidance and the actual numbers, let's say, in the upper end or in the lower end? And then maybe, again, on the guidance in terms of EPS or net income adjusted that you said approximately plus 10% organic. If I remember correctly, in the original guidance, it was between 10% and 12%. So maybe just to clarify, where do you see this slightly lower expectation coming from? Alessandro Fabbroni: Thank you, Aleksandra. So the full set of results that we achieved in the first half and in particular in the second quarter, show that we are absolutely on track to achieve the guidance. So that means considering the second quarter trends and the positive outlook on the backlog at the beginning of the Q3, we may consider the upper end of the guidance, the right target today. So that means not only for revenues and EBITDA, but also for net profitability. In terms of outlook, in comparison with the start of our fiscal year, we are absolutely overperforming in the ICT distribution on one hand and in the Digital Green. We are more or less in line with the Business Services. So that means that for 60% to 70% of our group perimeter, we are overperforming. We are slightly lower in the guidance in the first half for software system integration, but the improvement that we achieved in the second quarter and the outlook on the trend of the backlog seems positive. So that means we are on track to recover a positive trend in the second half of the year. So that means we may consider the average to upper end of the guidance, the reliable target for our fiscal year 2026. Operator: The next question is from Andrea Randone from Intermonte. Andrea Randone: I wonder if you can comment on the ICT VAS trend in the current quarter that is seasonally important. You mentioned the backlog up 25% in November. If you can comment on the trends you see if they are sustainable, consistent also for the remainder of the year. This is the first question. The second question is about CapEx. If you can confirm about EUR 80 million guidance, including M&A for the full year? Alessandro Fabbroni: Thank you, Andrea. So first of all, about the trend of ICT VAS, we may confirm we entered very well in the Q3. We closed a very positive Q2 with growing revenues by 8.1%, an increase of EBITDA by 16% and around 15% in net profitability. We enter with a 25% growth in the backlog for Q3. So that means the beginning of December and in particular the month of November. So that is very positive indication to be able to work with a guidance of mid-single-digit growth for the full year. In terms of CapEx, we confirm our guidance of EUR 80 million investment overall, including EUR 35 million of M&A and EUR 52 million to EUR 55 million CapEx. In the first half of 2026, we invested around EUR 40 million of which more or less EUR 20 million in M&A. So that means we are on track for this kind of trend. Andrea Randone: If I may, just a quick follow-up on SSI. Can you -- it's a normal question, but can you comment once again the implications from AI on this business line? Alessandro Fabbroni: So yes, the AI automation represents a driver that we are embedding in each of our delivering and also inside software system integration that is sector mainly focused on technology, digital business integration with the mix of consulting, software and digital services. So what we are doing is to increase our efficiency to introduce AI in some delivering. For example, the cyber security services and to, as a result, increase our efficiency to make available this efficiency for our customers. Obviously, our exposure to AI erosion is not high, considering that we operating with proprietary software and technology and consulting services. And from our point of view, that is an opportunity more than risk to increase our EBITDA margin. And some of our investments will be focused on skill development and digital enabled adoption in that direction. Operator: [Operator Instructions] Mr. Laschetti, at this time, sir, there are no questions registered. Jacopo Laschetti: Thank you very much, everybody, for participating in this conference call and we wish you Merry Christmas, and we stay available as usual for any additional information about our results. Thank you very much. Operator: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.
Operator: Greetings, and welcome to Altigen Technologies Fourth Quarter and Fiscal Year 2025 Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Gary Stone, CFO at Altigen Technologies. Gary, you may begin. Gary Stone: Thank you, Paul. Good afternoon, everyone, and welcome to Altigen Technologies Earnings Call for the Fourth Quarter Fiscal 2025. Joining me on the call today is Jerry Fleming, President and Chief Executive Officer; Joe Hamblin, Chief Digital and Transformation Officer; and I'm Gary Stone, Chief Financial Officer. Earlier today, we issued an earnings release reporting financial results for the period ended September 30, 2025. This release can be found on our IR website at www.altigen.com. We have also arranged a replay of this call, which may be accessed by phone. This replay will be available approximately 1 hour after this call's completion and remain in effect for 90 days. The call can also be accessed from the Investor Relations section of our website. Before we begin our formal remarks, we need to remind everyone that today's call may contain forward-looking information regarding future events and the future financial performance of the company. We wish to caution you that such expectations and our beliefs are just predictions, and actual results may differ materially due to certain risks and uncertainties that pertain to our business. . We refer to you the financial disclosures filed periodically by the company with the OTCQB over-the-counter market, specifically, the company's audited annual report for the fiscal year ended September 30, 2024, and the most recent unaudited quarterly report for the quarter ending June 30, 2025, as well as safe harbor -- the safe harbor statement in the press release the company issued today. We do expect our audited financial report for fiscal year '25 to be filed by the end of this month. These documents contain important risk factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. Altigen assumes no obligation to revise any forward-looking information contained in today's call. In addition, during today's call, we will also be referring to certain non-GAAP financial measures such as adjusted EBITDA, these non-GAAP measures are not superior to or a replacement for the comparable GAAP measures, but we believe these measures help investors gain a more complete and understanding of our results. With that, I'll turn the call over to Altigen's CEO, Jerry Fleming, for opening remarks. Jerry? Jerry Fleming: Thank you, Gary, and good afternoon, everyone. Thanks for joining us on today's call. I'll begin today with an overview of Altigen's performance and strategic progress during fiscal year 2025. Following my remarks, Joe Hamblin will provide additional insights into our operating execution after which Gary will return to review our financial results for the fourth quarter and the full fiscal year. Earlier today, we reported our fiscal fourth quarter and full year fiscal 2025 results. I'm pleased to share that we have delivered our sixth consecutive profitable quarter culminating in full year profitability for fiscal 2025, which we view as a meaningful milestone that underscores the progress of our business transformation. For the fourth quarter, revenue totaled $3.5 million with net income of $254,000. Looking at full year performance, fiscal 2025 revenue was $13.9 million representing a 2% increase over fiscal 2024, while cloud revenue declined modestly by 3%, this was more than offset by the 15% growth in our Services business, which was driven by higher consulting revenues and increased deployment services revenue related to our new cloud solutions. Compared to the fiscal year 2024, net income before taxes increased by more than $1.3 million year-over-year resulting in earnings of $0.03 per share for fiscal 2025. Our long-term objective remains clear to build shareholder value by protecting and extending the lifetime value of our customer base through modern cloud solutions while accelerating growth through AI-enabled solutions and services. I'll now review our progress against this objective beginning with the actions we've taken to modernize our cloud solutions portfolio. As we previously communicated, we experienced some revenue pressure as a result of the declining competitive position of certain legacy PBX and contact center offerings. This trend was anticipated and understood and we proactively initiated a comprehensive effort to transition away from those platforms in favor of more scalable, future-ready modern technologies. Over some period of time, we conducted a thorough evaluation of all available alternatives, carefully assessing multiple technology providers against our criteria, including performance, scalability, cost structure, and long-term strategic alignment. These efforts culminated in the introduction of all new best-in-class white label UCaaS and CCaaS solutions during fiscal 2025. Our technology platforms have been validated in our opinion, through the early market traction and growing customer momentum since their launch earlier this year, reinforcing our confidence that these investments position Altigen very well for improved competitiveness and long-term value creation. Specifically, for our CoreEngage teams contact center, which we essentially launched right about this time last year, we deployed 6 customers representing 240 agents during the year with billing for those customers commencing at various points throughout the fiscal year. We've since contracted with an additional 5 customers representing another 238 agents, which will begin contributing revenue upon completion of their respective deployments. Combined, these 11 customers represent 470 agents, and we expect them to generate approximately $75,000 a month in recurring revenue. For our MaxCloud UC business, we migrated approximately 60 customers, representing 1,600 users from our legacy MaxCS cloud platform during fiscal 2025. We've since contracted an additional 50 customers representing about 1,400 users that will commence billing once their deployments have been completed. In addition, we have another 100 customers representing about 2,500 users on our legacy MaxCloud platform that we plan to migrate to the MaxCloud UC platform over the next 6 months or so. Now these migrations do not immediately increase revenue since these customers are already on a monthly cloud recurring revenue plan. However, we do expect -- the benefits of these migrations to include a significant extension of the customer's lifetime value to materially reduce churn and to lower our long-term support costs. Looking ahead, we'll also be targeting the several hundred remaining MaxCS on-premises customers, which represents about 4,000 users in an effort to convert them to MaxCloud UC. As we convert these on-premises customers that are lower revenue customers to MaxCloud UC we do expect to see new monthly incremental revenues. Our ability to enhance our solutions portfolio with the new MaxCloud UC and CoreEngage platforms is a direct reflection of the build versus buy strategy that we've adopted. In other words, we build solutions where we can deliver differentiated intellectual property, most notably in AI-powered applications, conversely in highly competitive categories such as UCaaS and CCaaS, we believe value is best created through white label partnerships and/or selective acquisitions rather than duplicating commoditized platforms. This approach has been instrumental in reducing our operating expenses while transitioning to our fixed -- while transitioning our fixed development cost to a more scalable, variable cost model. It's also enabled us to reallocate capital we were previously spending on development resources toward the development of new innovative AI powered solutions. Turning to our strategic partnership with Fiserv. We are continuing to advance multiple new initiatives, including a next-generation AI-powered cloud IVR solution, an AI-enabled customer experience analytics platform and now our CoreEngage contact center service as a service platform. These solutions, as a reminder, are all brought to market by Fiserv under the Fiserv brand. As such, Altigen is not in control of the product launch time lines. Instead, our responsibility is to develop the solutions, work with Fiserv to get them certified under the Fiserv brand and to support the Fiserv sales effort once those products are launched. With a $20 billion company like Fiserv, it takes time to get the necessary approvals and associate sign-offs completed. However, the wait will be worth it in the end as we continue to progress toward product launch. Moving to our Consulting Services division. We continue to expand our relationship with the Connecticut Department of Transportation which includes the addition of new AI-focused initiatives. The engagements with CT DOT not only contribute to near-term revenue but also generate valuable domain expertise that directly helps our software-based AI solutions. The knowledge we continue to gain from AI projects on the consulting side is fully transferable to the AI solutions on the software side of our business. Now the AI market, as many of you know, is literally flooded with vendors, most of them focusing on building next-generation AI platforms. Our unique approach is that we don't build the AI platforms, we build business solutions that utilize those platforms. Keep in mind, our typical target midsized enterprise customer does not have deep AI expertise on staff to build their own AI solutions. So our model is to provide that expertise in the form of packaged AI solutions and services which allows those customers to deploy Altigen AI solutions without the need to invest in expensive technical resources. By all accounts, this is the model preferred by midsize organizations. I'll leave you with this thought. Our business transformation efforts are beginning to show results. We significantly upgraded our technical talent. We've streamlined our internal business systems. We've reduced our operating expenses, and we've introduced all new leading-edge UCaaS and CCaaS solutions. We believe these efforts position Altigen to drive sustainable profitability, improve customer retention and long-term customer value. With that, I'll turn the call over to Joe Hamblin for additional details on our progress. Joe? Joe Hamblin: Thanks, Jerry, and good afternoon, everyone. Over the past 18 months, we've executed a comprehensive transformation of Altigen, rebuilding nearly every aspect of the company's operating model, technology stacks and go-to-market foundation. This was a deliberate reset designed to stabilize the business and restore profitability and position Altigen for scalable growth. From an operational standpoint, we focused first on simplification and discipline. We modernized internal systems, outsourced noncore functions such as accounts payable and receivable, consolidated vendors and introduced greater automation across finance, provisioning and service delivery. As a result, we have eliminated approximately $1.5 million in annualized operating expense, materially improving our cost structure while increasing our ability to execute -- our velocity's execution. In parallel, we addressed the most critical issues impacting our long-term competitiveness, our legacy product portfolio. During fiscal 2025, we replaced an aging PBX platform and an overly complex contact center solution with modern cloud-native offerings. MaxCloud UC was introduced to preserve and grow our legacy customer base, while CoreEngage to help us accelerate the growth of our Microsoft Teams practice. . Using the deliberate buy versus build strategy allowed us to rapidly transform our product portfolio. This approach also enables Altigen to provide differentiation by building solutions where we can add tangible value, particularly in the AI and analytics space. This strategy has fundamentally changed our operating leverage. Our UCaaS and CCaaS platforms now operate on a largely fixed cost model, enabling margins expansion as we -- as subscribers volumes grow. Just as importantly, it has allowed us to redeploy capital and talent away from maintaining legacy software towards higher value innovation. The foundation in place, fiscal 2025 marked the completion of our transition year from a transformation to a growth moving forward. To further sharpen execution as we enter the next phase, we have a plan that will align the company functionally around our 4 primary revenue streams. The MaxUC platform, our Microsoft Teams practice IVR and our Altigen Consulting Services practice. This functional alignment will improve focus, accountability across both sales and operations ensuring that product strategy, delivery and go-to-market efforts are tightly coordinated within each business line. We believe this structure will improve sales effectiveness, accelerate decision-making and better support scalable growth. To further support our go-to-market efforts, we began a full relaunch of the Altigen brand. We engaged a new digital marketing firm to rebuild our digital presence, modernize messaging, improved demand generation. At the same time, this also includes SEO remake, a targeted pay-per-click campaigns, new CoreEngage product content and a specific vertical outreach program. Our initial focus is on approximately 1,700 regional banks and credit unions, each with over $500 million in assets where we already have a strong domain credibility footprint with our IVR platform and the Fiserv relationship. As both Jerry and I have stated, product innovation remains centered around AI-driven differentiation. On the solutions side, we have completed the development of several AI-enabled offerings that extend the value of our existing footprint. Our conversational AI front end for the IVR now in customer preview modernizes how callers interact with financial institutions using natural language, reducing containment costs while improving the customer experience. We've also completed the development of Core Insights, our next-generation customer engagement analytics platform. Core Insights uniquely combines the IVR transaction data with the customer demographics data to deliver actionable insights into customer behavior, intent and service patterns. This platform enables banks and credit unions to better predict customer needs, personalize engagement and identify new cross-selling opportunities. The customer preview program will begin in first quarter of 2026. To support expansion into larger enterprises and regulated industries, we've also initiated a SOC 2 Type 2 certification program, with the expectation of completing here in January 2026, this is a critical milestone for us and will enable us to pursue larger, more complex opportunities across financial services, public sector and enterprise markets. On the service side of the business, our Altigen Consulting Services division continues to perform at a high level, anchored by our long-standing partnership with the Connecticut Department of Transportation. In fiscal 2025, this relationship expanded further with new AI-focused initiatives, reinforcing Altigen's role not just as a technology provider, but also as a trusted transformation partner. We are now leveraging this success to open doors with other state departments of transportations and enterprise organizations. Earlier this year, we presented alongside with Connecticut Department of Transportation at the AIDC conference in Pennsylvania, which has already resulted in follow-up engagements with several states. We continue our outreach campaign by participating in the Oklahoma State Expo, and we were also at the IHEEP Conference this past October. We have plans to participate in several new events in 2026 as the opportunities present themselves. Strategically, we also signed a partnership with a leading agentic AI platform provider. This partnership allows us to provide a scalable, highly secure, enterprise-grade AI solution. This partnership also creates a dual revenue opportunity for us. Recurring platform revenue, combined with high-margin professional services that aligns directly with our AI first strategy. So in summary, Altigen today is a very different company than we were 2 years ago. We've stabilized the business. We've modernized our platforms. We've simplified operations. We've restored ourselves to profitability. And with that foundation firmly in place, fiscal 2026 will be about execution, scaling our customer base, accelerating revenue growth and expanding margins through disciplined growth. With that, I'll turn the call over to Gary to review our financial results for more details. Go ahead, Gary. Gary Stone: Great. Thanks, Joe. Okay. For our 2025 fiscal fourth quarter, which is July to September, we reported total revenue of $3.5 million with GAAP net income of $254,000 or $0.01 per share. This compares to the prior quarter's revenue of $3.7 million with GAAP net income of $2.1 million and $0.08 per share. Recall that in Q4 of last year, we recorded a $1.8 million deferred tax benefit. This year, it was only $300,000. For our 2025 fiscal year, we reported total revenue of $13.9 million compared to $13.6 million last year. Total cloud services for fiscal 2025 was approximately $6.9 million, down slightly from the $7.1 million last year. Meanwhile, our services and our other revenue increased 8% to $7 million from $6.5 million in the prior year. Gross margin for the year was 63% compared to 62% in the same period last year. GAAP operating expenses for the year totaled $8.1 million, reflecting a 7% decrease to $8.7 million in the same period last year. GAAP net income for the full year, fiscal year '25 was $738,000 or $0.03 per diluted share compared to the GAAP net income of $1.56 million or $0.06 per diluted share in the prior year, which included that deferred tax benefit I mentioned earlier. So apples-to-apples, excluding the tax impact, our net income for fiscal year '25 is $1.03 million compared to a loss of $279,000 from last year, a favorable difference of $1.3 million. Earlier this quarter or last quarter, rather, the U.S. District Court in Utah ruled in favor of Altigen in the lawsuit with Intermountain Technologies. In light of this favorable court ruling, we reduced our accrued liability by half to $372,000. Further reductions in the accrued liability may occur as we get more clarity on the full extent of the damages and legal fees that Altigen will be entitled to recover. Looking at our liquidity, we closed out the year with $2.75 million in cash and cash equivalents, up from $2.6 million last September and down from the $3.5 million in the prior quarter. As you recall, last quarter was a lot higher than we expected due to a large customer who paid ahead of schedule. Working capital was $2.9 million compared to $2.1 million in the previous year, reflecting a 38% increase, and I should add a multiyear high. Our EBITDA adjusted for legal, severance and other onetime costs was $1.6 million compared to $500,000 in the prior year. So in conclusion, we've made great progress this year, and we're very excited about our future. So now let me turn the call back over to Jerry for our closing remarks. Jerry? Jerry, are you on mute? Jerry Fleming: Thanks for the instructions. Sorry about that. The progress we're making is tangible and accelerating. Our investments in modernizing our platforms, improving our cost structure and expanding our growth initiatives will enable us to deliver on our 2020 vision, which is 20% top line growth with 20% to the bottom line, building long-term shareholder value. I'll now hand the call back to the operator for a Q&A session. Operator? Operator: [Operator Instructions] And the first question today is coming from Alan Markham from Van Clemens. Alan Markham: So it sounds like you've rebuilt a lot of your structures and guiding towards the future. Can you forecast a point during 2026, maybe in the second half or even before that when you'll see a measurable or a material difference in your revenue growth? Jerry Fleming: We will -- I think, Alan, we will be able to as we -- particularly as we get some of these customers migrated over to the cloud that I discussed earlier. And once we have some more visibility to when those customers are billing, then we'll be able to be in a position where we'll be able to, let's say, offer some predictive predictions really in terms of what we expect our revenue to be. Right now, it's really hard to say because a lot of it is we have customers that are in various stages of deployment. And we're not 100% certain. We're having control of those deployment time lines as the customer. But as we get those in production, we'll have a lot more visibility going forward. Alan Markham: Okay. Just to follow up on that. So in the case of just use Fiserv as an example, and you mentioned you can't control when they launch that product. So I guess when they do flip that switch, that could possibly noticeably change what Altigen earns from that company. Jerry Fleming: Yes, dramatically. And that's one of our frustrations that we don't control that, of course, they're Fiserv customers. So these solutions are sold under their brand. But yes, we're working hard to get access to get their approval and get their marketing folks to launch the product. But when they do, and we mentioned three of them that we have as they start kicking in, we'll see a significant uptick in revenue from Fiserv. I just can't tell you when sitting here today. Operator: [Operator Instructions] The next question is coming from Mike, and Mike is a private investor. Unknown Attendee: Yes. Can you tell me whether -- or us whether you expect this quarter to be like sort of the low watermark for revenue? And do you expect it to ramp from here without getting into like specifics of how much? I'm just trying to understand if you hit the bottom. Jerry Fleming: Yes. That's a fair question, Mike. Yes, I think so. There can always be anomalies that mess things up a little bit here or there. But the most important thing or most important things, I guess, we did and Joe certainly expanded on that was revamping our legacy platforms which were causing way too much churn because they have lost their -- really their competitive nature and having the new solutions that are now ramping and gaining market acceptance and gaining customers, as I was talking about, I think we're -- that has stopped the downside. And now we can start looking at upside from here. So yes, we do expect this -- it should get better from here is the expectation. Unknown Attendee: So we should sort of expect to ramp from here maybe with some variability quarter-to-quarter like sort of on a sequential basis. Jerry Fleming: Yes, generally trending upward is our expectations, Mike. Unknown Attendee: And you said something towards the end of the prepared remarks of targeting, I wanted to say like it was something like 20% top line and 20% bottom line. Did I hear that right? Jerry Fleming: Right. By 2028. So yes, there -- we're looking to ramp our -- and it's a little bit hard to say how we'll do each year, but to achieve that as a goal to continue 20% top line and 20% to the bottom line are our sort of our marching orders, if you will, internally and what we're shooting to achieve. Unknown Attendee: But did you just say by 2028 or starting next year? Jerry Fleming: By 2028, I don't think we get -- we might get there in 2027. But just with the cloud revenues, I can't guarantee that, but by 2028, we want to be certainly in that position. Operator: Thank you. And that does conclude today's Q&A session and also concludes today's conference. You may disconnect your lines at this time, and thank you for your participation. Gary Stone: Thanks, everyone. Jerry Fleming: Thank you everyone.
Operator: Good afternoon, and welcome to the Victoria Plc Interim Results Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted today and publish responses when it is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to Executive Chairman, Geoff Wilding. Good afternoon to you. Geoffrey Wilding: Good afternoon, and thank you to everybody for joining the H1 earnings call for Victoria. The macro environment continues to be challenging for consumer discretionary spending. And so we've continued to focus on internal initiatives to improve margins and lower operating costs, and we'll discuss these later on the call. However, we'll begin with Alec Pratt, the Group CFO, taking us through the numbers for H1. Alexander Robert Pratt: Great. Thanks, Geoff. So before we start, just come with a few highlights. So key things have been ongoing pressure on volumes. So revenue for the half was down about 7%. We'll provide a bit more detail on the breakout of that later in the presentation. We're very pleased to improve EBITDA by just over GBP 3 million to GBP 53.5 million. And so a healthy margin increase there despite that volume reduction. We will provide more detail of that. And actually, we believe there's a much stronger performance in the headline than the number suggests. On net debt, just over GBP 1 billion of net debt. A lot of work has gone into extending the maturity profile of our debt over the period. So again, we will run through that in a bit more detail. So if we quickly flick over to the executive summary. I think it's worth reminding ourselves where we are in the cycle. We're very pleased with the resilient performance in what continues to be a fairly low volume environment. Demand remains about 20% to 25% below long-term trend. However, we are beginning to see improving top line trend, which we've seen throughout the first half, and we are expecting that to continue into the second half of the year. Management actions this year have been very significant. We're moving with pace across various divisions of the business and actually, EBITDA margins are improving at the divisional level. We have further cost savings to target as we go through the balance of the year, and we will look at that as we go through the budget, which will continue to benefit into FY '27. I think the biggest update from this morning is caution in the outlook. We are flagging there have been some inefficiencies in the Belgium operations as we transition that manufacturing to Turkey. And clearly, the macro outlook remains volatile, and we are mindful of that. So in the meantime, our focus remains on driving what is in our control. So these are the EBITDA initiatives that we've outlined at the full year results, focusing on cash generation to help with deleveraging the balance sheet and also rebuilding the company's credit rating overall. So just to summarize key messages from the half. So as I mentioned, revenue growth was down about 7% overall. That is primarily volume driven. We'll come on to the split with that, but actually ASPs across the group were healthy. At a gross margin level, those were consistent. But as you go down the P&L, actually improvements in terms of the SG&A and so you saw that improvement in both the absolute number of EBITDA, but also the margin improving to 10.1%. It's important to note there were a few one-off factors, which mask a bigger improvement in the operating performance. We have pulled down the benefit last year of a favorable gas hedging position, which is about GBP 6.7 million. And then also the disruption from the Rugs reorganization, which again was a drag on H1 performance. Excluding those two things, margins improved 390 basis points, and we think this demonstrates very clearly how quickly we are moving to improve the underlying performance of the business. So moving on to the drivers of revenue. This chart breaks out the divisional performance. You can see in every case that actually volume is the main driver of the revenue decline. As a reminder, this chart is in pounds. And so both the Aussie dollar and U.S. dollar were weaker through the period. And so what that masks is that actually pricing in both of those geographies was a lot healthier. You can see in soft flooring, healthy ASP increase of about 5%. Some of that is mix, but within business divisions, that was actually very solid. And in ceramic tiles, I think we'd bring out that the decline there is predominantly due to mix. That gas hedge last year rolling off has meant that we've reduced production of some of the lower-margin products that was using that hedge. Those were within the higher price points categories within tiles, and therefore, that decline in ASP is just a mix effect of doing DIY-orientated products. In terms of EBITDA movements overall, you can see that predominantly that has been driven by the margin improvements that we have pulled out. Biggest mover there is within soft flooring. Philippe will come on to it, but that is despite the headwinds we've seen in the Rugs reorganization, and we're very pleased with the underlying performance there as a result of a lot of initiatives at the back end of last year and into this year. We'll also come on to touch on some of those actions in H1 will flow into 2027 as well. In Ceramics, Rugs reduction in low-margin profitability is what we call bottom slicing. So a good degree of that revenue reduction is actually proactively trimming some of those sales. And so the underlying performance and the market, we feel is much stronger than that 11% decline in revenue would suggest. And then moving on to the smaller divisions, a good performance in Australia, very strong market position there for us. It's worth noting that actually the EBITDA improvement in pounds was basically level, which means in local currency, that was actually a big improvement for that business. In the U.S., a big focus on margins there. Philippe will come on to how that has been driven. And then finally, on central costs, we are being very disciplined there, so just over GBP 1 million of saving. So overall, a modest increase in EBITDA, and we'll come on to some of the other drivers of that through the presentation. So the next page here is just to pull out the non-underlying items. These remain elevated as we go through business transformation. I think the key point here as with the full year is that only a modest amount of those are cash. So those are highlighted in orange. You can see at the top of the chart there, the actual reorganization cash costs were in the low single digits. We've also highlighted the refinancing costs related to the transaction over the summer, and we'll come back to that in the following pages. So this chart shows cash generation over the period. First thing to note is that we are free cash flow positive before CapEx and reorganization, so GBP 8 million for the half. What we pull out there is that the interest cost there of GBP 17 million will be broadly level as we go into the second half. And it's also worth noting that we incurred GBP 7 million of cash tax, the majority of that was related to tax charges in the prior year. Obviously, as we go through this year and into next, we expect that cash tax charge to be relatively minimal, and so that will decrease going forward. This morning, we announced new CapEx guidance with a reduction that we'll come on to, I think what you can see in the first half was about GBP 25 million of CapEx. We expect that to be broadly level in H2 and will stay at that sort of level going forward. And then the other big cash cost there was the refinancing cost. So cash cost of GBP 20.5 million. And so the overall cash movement was minus GBP 40.8 million. The noncash items there, which are kind of the majority of that net debt movement relates to premium paid to the bond investors to do the exchange over the summer. That was GBP 41.4 million. And then the balance of that is a GBP 30 million movement in our FX rates given the bonds are in euros. So GBP 106 million overall in terms of the increase in debt. So this page breaks out the different levels of the capital structure. You can see there the increase to just over GBP 1 billion of true debt. The underlying EBITDA performance broadly flat on the half, so leverage overall at 8.6x. I think it is important to point out that our capital structure is very diversified. That gives us a lot of flexibility in sourcing new capital, and I'll come on to how that's developed. Final piece there is just on the Koch preferred equity. It's important to remind everyone that, that is legal equity and equity in every sense. So the return that Koch earn on that is a preferred dividend, and that is paid in PIK. So no cash cost. There is no maturity on that piece of paper. And so it is not a concern from a going-concern perspective. So the next page summarizes the impact of the refinancing over the summer. A couple of key points to mention there. So having dealt with all our short-term facilities, our next maturity is in 2028. That is for EUR 167 million, which is about GBP 143 million. To put that in context, over the last 6 or 7 months, we have refinanced over GBP 700 million of debt. So it's obviously an area of focus. But in the context of the whole capital structure, we do think that is very manageable, and we're very pleased with the runway that we have created through that refinancing process. So I think with that, Philippe, I hand over to you to run through the operational performance. Philippe Hamers: Okay. Thank you, Alec. So first division is U.K. and Europe soft flooring, which consists of 4 subdivisions, which are Carpets, U.K., Underlay, Grass and Rugs. For the overall division, we've seen a reduction in revenue with about 3.7%, but with an average sales price growth and a margin growth of about 148 basis points. The Rug division, which we are restructuring at this very moment, includes a shift of almost all the production from Balta Belgium to Balta Turkey to the plant -- the existing plant in Usak. And this is diluting the margin number. Without Balta, the EBITDA improvement year-over-year would be 4.1% to a profitability of about 15.9%. In the U.K., in H1, clearly, we have taken market share, grown the revenue and massively improved the margins. And we continue to progressively do in H2 because there are clear opportunities in the market due to some competitor weakness and our strong service proposition, which we have to Alliance. The sales has continued to benefit from the success of the premium residential brands, which we have in the division. We are also expanding our product offering, as we've said in the previous presentation into hard flooring with offerings in LVT, in laminate and in engineered wood. And the revenue is expanding fast within these propositions through the different brands which we have, which are Abingdon, Victoria West and Balta. Alliance, our own developed logistics provider, as you may remember, is a key component to that success with an average processing about 20,000 order lines per week through the three distribution centers. And we've even seen peaks up to 24,000 order lines per week in November. Alliance now services about 87% of the country next day, and it is further expanding its service as a third-party logistics provider, and we are building -- trying to build for Alliance itself a solid P&L. The second leg we have in U.K. and Europe Soft Flooring is the Underlay business. We are currently processing the integration of our two Underlay brands, which is Easyfloor and Interfloor. And the service proposition and product offering is generated through a separate in-house distribution setup, so it's not going together with the carpet and the hard flooring setup to service all the retailers across the country. The third leg in that division is the Grass division. This performed flat in revenue and showed some decline in margin because of some challenging residential market but we've largely made up for that through the selling of the sports services. And as a result, this has been compensated. On the next slide, you will see that we've separated out the Rug division to see what impact it has had. The Balta restructuring, as you see and as we've said earlier and as Alec has referred to, is weighing on the short-term performance of the division. I will come back or Alec will come back later on that restructuring model because there's a case study a bit further down the pack. It is fair to say that on Balta itself, it is fair to say that reorganization is on track to deliver significant cost savings in the next financial year. And H2 EBITDA is expected to be broadly breakeven. From Q2 2027 onwards, we should see the full impact of the improved manufacturing costs in Turkey. Second division then, which we want to comment on is U.K. and Europe Ceramics. You can see that we've had a volume reduction of about 8.6%, mainly driven by the proactive reduction of volumes and lower margin sales. The underlying EBITDA was about steady, 12.7% versus 12.9%. If we eliminate the favorable gas hedging in the same period in the prior year, we've had a margin improvement of 4.2%. In Italy, a new management was installed earlier in the year, and we have split the P&Ls and brand between the DIY brands, which are Serra, Cali and Keradom and the medium to high-end brands for independents, which is Ascot, Capri and Vallelunga. This allows us for an end user-specific approach in terms of the product offering, minimum order quantities and the service proposition. In Spain, there is a specific investment we've done in large tile manufacturing. It is the famous V4 project. There is a separate sheet further in the project to run through that project and the upside of that project. It is a EUR 31 million investment, which we've done in the course of -- in the last half year and which was successfully commissioned in November. This will have -- or this has had no impact in H1, but should start to deliver from Q4 and H2 onwards. At full capacity, we should be in a position to do 5 million square meters extra output in high-volume formats. From a strategic point of view, the Ceramics division continues to execute on four main drivers. First of all, that's the intensifying of the approach of the integration of the Ceramics Group between Spain and Italy. Secondly, we are also starting to focus to expand on small sizes and the DIY approach. And then as said, the most important project of investment, which we have been running is the V4 project in Spain for large tile manufacturing. And then the fourth driver is the product portfolio rationalization and the cost reduction, which we have been performing throughout the division. Third division then is Australia. We've seen a slight drop in revenue, 3.4%, but the growth in profitability of 126 basis points, which confirms the strength of our market position and the resilient performance of the team. At Dunlop, we are focusing on expanding the market share further in Underlay. Further merchandising efforts has also contributed to substantial growth in the hard flooring sales, which is mainly LVT and laminate. And our Underlay factory now, which we have in Sydney is currently at full capacity, and we are commissioning extra volumes outside of Australia to cope with the increased demand, which we are seeing in the market. The carpet business, which we have through our two brands, Quest and Victoria is solid, and we see more growth in manmade fibers rather than in wool currently. So we expect the volumes in Australia to remain broadly flat in H2 with revenue expected to grow slightly from a positive pricing momentum. Unfortunately, within that division, there's still some persistent currency weakness, as you can see, which impacts the pound-denominated reported numbers. Last but not least, in the divisions is North America, where the performance is constrained by U.S. market volatility and the FX weakness, but this has been navigated successfully by the management. The current strategy of being only a distributor in the U.S. So as you know, we are not a manufacturer in the U.S. It is still the best one. We have revenues of about $300 million in the U.S. between Cali, IWT and Balta Home and exports to the U.S. from our European businesses. The Northern American trading conditions, as we all know, remain challenging in terms of the macro. So there's high-end mortgages, which we continue to see and which have driven the U.S. existing housing transactions to the lowest level in the last 30 years. IWT, which is our East Coast distribution of ceramics has been very strong in the Northeast and is progressing the sales attempts to go into the Texas market. Cali continues to further focus on builder and the business-to-business segment. And Cali in the first half has also taken more initiatives to deliver cost savings in terms of the sourcing model, the marketing spend, the merchandising and the minimum order quantities. So more initiatives have been planned to reduce the inland transportation and reduction of the number of warehouses, mainly third-party logistic warehouses, which we have. And then last but not least, on Balta Home, this was a setup which we've done in the past to better serve the distributors and the big box retailers, and to split the volumes over the two channels, and there's a cost-saving initiative there as well, where we will be cutting out one distribution facility, and the distribution in the future will only be done to the Savannah warehouse. So Alec, I think I'll hand back over to you. So this is the overview of the division sec. Alexander Robert Pratt: Great. Thanks, Philippe. So next section is on our EBITDA improvement initiatives. As we laid out at the full year results, we are moving very quickly to drive changes that are in our control. Clearly, we don't have control over the macro environment. What we can do is drive big [indiscernible] of the business across our divisions. So the charts on the left-hand side just a restatement of what we showed at full year. I think the key messages to take away is that we have now completed all of the actions that we were targeting in FY '26, which is that kind of GBP 20 million of improvement this year and that we are on track for all of the improvements that we are driving through for FY '27. The two large projects there are the V4 plants in Spain and then the Belgium Reorganization of Rugs to move that manufacturing to Turkey, which we'll come on to in a bit more detail. Obviously, those two projects are within that manufacturing efficiencies bucket. Those two projects are the vast majority of that GBP 30 million and so we are now confident that those savings will come through. It's worth noting that as we go through the budget process in calendar Q1 next year, we will be pushing the teams to see what else we can deliver in the coming years. I think we are confident that there are further savings to go for, particularly in that procurement and integration categories as well as a little bit more to go for in the manufacturing side as well. We intend to update the market at the next set of results on those initiatives. So this slide just gives a bit more context around what has been delivered this year. Clearly, a lot of this work has been offset by weaker volumes. So as a reminder, we generally guided to a 5% change in revenue drops through to kind of a 20% to 25% -- sorry, GBP 20 million to GBP 25 million kind of change in EBITDA. Obviously, with revenues declining slightly through the course of the year, that has largely offset some of these actions. What you can see from the page is that those are very broad-based, right? So that has been across every one of our divisions and across every one of our geographies. I think we do operate in a federated structure, so we have the ability to manage a lot of these projects at the same time. The other key point to take away from this slide is that whilst a lot of this work has been going on within FY '26, there is obviously an incremental benefit as we go into FY '27. So we know that those EBITDA improvements will come through as we go through into next period. So just to provide a bit more detail on the larger projects. So the picture on the right is part of the kiln for the V4 line. As you can see kind of it is a very large construction. It has been under construction for about 2 years. As Philippe touched on, that has been a EUR 31 million investment for the group. I think that's indicative of the fact that we have continued to invest in the asset base through the cycle, and that is what is going to allow us to be a bit more disciplined around CapEx over the coming years. Now we have uploaded a video onto our website, giving you a bit more color around that site. I think what you'll notice from that is, number one, the scale of the project itself; number two, the lack of physical labor involved in the new setup. So that is a very efficient line. As we alluded to, that will deliver about EUR 15 million of additional EBITDA at full capacity. I think the key question for the team as we go through the start of next year is whether we purely use that for replacement capacity at better margins or whether that becomes incremental capacity being able to target lower price points. So that balance between speed of filling the line and unit profit is something that we are working through, but it gives a lot of flexibility in terms of how we attack the market now. So on the Rugs reorganization, as a reminder, that is moving manufacturing from our Belgium plant into an existing facility that we operate in Turkey. We have gone through a number of these processes before, so it is pretty well tried and tested. I think what is different around this transition is, frankly, the scale of the operation. So we concluded the social plan negotiations with the labor unions around the time of the end of the period. That was kind of executed in line with our expectations in terms of cost and the scale of that. So what that will do is reduce our headcount in Belgium by about 500 people. That process is now well underway. 170 colleagues have exited the business already. There will be a further round in the next kind of month or so. We are targeting being fully operational at the end of financial quarter 1 next year. And so we'll have the majority of the benefit as we go through FY '27. The new piece of disclosure today is around the size of that move. The total cost will be about EUR 50 million. The majority of that, about 80% is related to severance costs, which is part of that negotiation I just referenced. And the cash costs will be split about EUR 10 million in FY '26, EUR 30 million next year and then EUR 10 million in FY '28. The provision for that move was taken at the half year of just over EUR 40 million, and we are moving at pace to ensure that, that is funded. As we touched on previously, the program will be financed by sales of the Belgium properties. So we provide a bit more color around this on this slide. So you can see in the picture on the right-hand side of the page, just the scale of some of those facilities. So effectively that gray building taking up the majority of the page is all of ours. You then see a road at the top of the page and another gray building extending beyond the distance. That is also one of our sites. So the team has begun the sale processes for those facilities. That is a mix of manufacturing and distribution. We will be looking to exit those buildings via a combination of straight sales and sale and leasebacks, and we're expecting the first completions there in calendar H1 2026. We are obviously able to obtain those proceeds within the bond documentation up to a maximum of GBP 45 million. So continuing the theme of controlling the things that we can control, a big focus the last kind of month or so has been around our cash flow targets. So this is new disclosure for today. In terms of CapEx, we are reducing our guidance going forward to about GBP 50 million to GBP 55 million per annum. That's a reduction from previous guidance of about GBP 65 million, so at least a GBP 10 million improvement going forward. That is broadly split between GBP 40 million of maintenance CapEx and GBP 10 million to GBP 15 million of expansion CapEx. So whilst we are very cash flow focused currently, we will continue to selectively invest in the business to drive efficiency going forward. In terms of working capital improvements, we are targeting GBP 40 million of savings. That is split between reduction in receivables overdues. That is going to be one of the quicker initiatives to push through. So that will kind of be going full pace in Q1 calendar '26. We then have a segment of inventory reductions. This will be done through SKU optimization. So effectively reducing the number of products that we're selling and therefore, reducing the amount of inventory that has to be held. That is pretty broad-based across the divisions. And then finally, an improvement in payables days. Now this will be longer lead time. So that is to do with negotiation with our suppliers. As we previously touched on, as we've gone through the refinancing process, we have seen a tightening of payables days. We are going to see incremental improvements in that environment. And the teams are very focused in negotiating with the suppliers to make sure that we are getting the benefits of being a large, well-diversified player in the market. And we do think there is probably upside to that 14-day number as we demonstrate progress on both the operational improvements and cash flow generation. And the final point is additional property sales. So we are targeting GBP 20 million plus over the next 18 months. Those are very much smaller assets, so diversified across effectively spare manufacturing assets, some showrooms, some spare land assets beside manufacturing facilities. So none of them are significant in their own right, but across the different divisions, people are being asked to focus on that. Those proceeds will be retained for driving liquidity across the business. So next stage on governance controls. As we touched on the half year, mostly full year, yes, this has been a focus to the Board. This is about doing simple things well. The aim here is to give us more visibility, more control and actually making sure that we are making the right decisions. So pretty broad-based. Some of that has been around people. So we have strengthened management teams, Philippe talked about in Italy. Obviously, the Rugs business as well, that has been strengthened very significantly, and we will continue to upgrade the teams as and where required. That is not just purely around cost saving, that is also adding skills as well. On the kind of the probably less exciting stuff, we've been refreshing policies, also rolling out internal audit program. Again, that is an element to control, but also identifying where we can be more efficient. So we're very fortunate having a very diverse base of businesses. What that means is hopefully we'll be taking the learnings from some of the more efficient businesses and applying those elsewhere across the group. We've also rolled out improved reporting, both the group and at divisional level and applying a bit more rigor both around CapEx and approvals to make sure we're delivering returns with our incremental capital, but also rolling out a new delegation authority framework so that we are being joined up in how we're making decisions. So finally, just in terms of where we are in the cycle. So clearly working very hard to drive efficiency of the business. It's worth remembering that we are 20% to 25% below long-term trends. And so whilst we can't sit here and promise the timing of that recovery, we are very confident that it will come. In the meantime, we are doing whatever we can in our control to make sure that we are strongest positioned both for where we are in the cycle, but also versus our competitors. We've removed a lot of costs from the business already this year and last year. We have a further GBP 50 million savings to target in FY '27 and '28. And actually, all of the core drivers of flooring industry remain intact. So that is obviously housing linked and economic activity linked. We don't fundamentally believe that anything has changed over the last couple of years to mean that we won't recover to those levels. So just to summarize, hopefully, it's very clear that we have made a lot of progress in the last 6 months. I think we're pleased with where we've got to. In a difficult environment, there is no benefit of complaining about that. It's incumbent on us and the divisional management team to keep on driving performance. I think we're excited to do that. And actually, we do feel that in a number of markets, we are outperforming the competition. So maybe with that, over to Geoff. Geoffrey Wilding: Right. There's been quite a number of questions arrived during the presentation. And I'll paraphrase some of them because quite a few of them are on similar topics. But -- so the first question, which I'll have Philippe answer is, can you talk us through the competitive landscape in the main divisions? Philippe Hamers: Okay. Well, if we talk about carpets, so we have to broadly make a difference between local competitors in the U.K. and overseas competitors. I think it has become -- life has become a bit more complicated from overseas competitors because of the FX and also because of the lack of distribution in the U.K. We've -- as you know, with Alliance, as I have alluded to. So Alliance is there in the market with the next-day delivery performance, which is bringing -- which is attracting a lot of business. Of course, there locally, we are as strong as our local competitors, but we have recently spurred some competitor weakness where we can build upon the business. And we've seen that, okay, I know we're reporting here H1, but we've seen and there was another question, and I'll jump on that one in a minute to know what the current demand was, I can say that normally in the second half is the better season. And we've seen some good sales started from the end of October through to the first week of December as well, so which is a positive. So Geoff has asked me to speak about competitors, so that was U.K. based. If we look at ceramics, the situation, and it's associated with another question that I can see coming up here in terms of Indian imports, we are facing some of these Indian imports, not so much in Europe, but we see that in our export markets, which is mainly the U.S. and into the Middle East. So we suffer a bit more competitor there. In Europe, it is -- we don't see that. So also the competitive landscape in ceramics is very scattered. So there's not like one extremely dominant player. So -- and we are pretty focused on the medium to high end in Spain and in some of the brands in Italy. So I've also mentioned that we are very keen in trying to have separated out the approach towards product, towards end consumer, end user in that DIY market. This is mainly in Italy. So we are -- we don't see any extra competitors there than the ones we've been facing. So all of that is -- we have not seen a lot of change there. There's another question, if I may, Geoff, another question here, which has been a question if there's a structural change that means that the volumes will not recover in the U.K. I would say absolutely, absolutely not. The U.K. market is still the largest flooring market in Europe with about a guesstimated 115 million square meters. This market has not declined in the course of this year, but what has happened is that we have taken a stronger position due to our service proposition, which we have, as with our logistics provider Alliance. Then another -- okay, the question on imports, we've seen the upswing demand, okay. I've talked about that in H2. So we -- the season, it was a normal season. And if looking into H2 and looking into the next financial year, I can see lots of potential for the Soft Flooring division, not only for the soft flooring products, so for carpet, but for all the other products we've added as well and the product portfolio being LVT and engineered wood. Geoffrey Wilding: So there's a question -- in fact, there's been a number of questions about the relationship with Koch Industries or Koch Equity Development, who are the holders of the preferred shares. They're also -- they have 12.5 million ordinary shares in Victoria. I'll give some initial comments, which are that Koch remains very supportive of the business. We've got a very good relationship with them. I could not ask for a better partner, particularly going through the difficult environment of the last 2 or 3 years. And the state of relationship is very, very solid, and they're very supportive of the business. And that's probably as much as I can comment about the actual relationship. But Alec, if you've got any comments you want to add about the conversion or update. Alexander Robert Pratt: No, [indiscernible] in terms of relationship, we also have access to a lot of the capabilities they can bring, right? So they have been helping us with the working capital exercise. I think that has been hugely helpful to the business. So I think that demonstrates their desire to get back the price up. As a reminder, they do have that conversion rights [indiscernible] at this time next year. It is important to remember that, yes, whilst that would be effectively switching that preferred return into an ordinary equity return, it would also reduce the liability on the balance sheet, right? So whilst it would change the percentage holding on the equity, actually, it would reduce the liability by a very similar amount and arguably would strengthen the balance sheet and the flexibility of the business going forward. So I think it's probably not appropriate to comment on discussions with them, but we just echo that, yes, that is a very positive relationship. And actually, we don't necessarily see it as a risk to the business and it's obviously something we will continue to look at over the coming months. Geoffrey Wilding: There's a question about Balta. Clearly, in fact, there's three of them, which I'll amalgamate into one. Clearly, the move of Balta's manufacturing from Belgium to Turkey will be very material to the earnings. Are you satisfied, management have this move under control? And when will it be completed? Philippe? Philippe Hamers: We are -- there's a new management on different positions there. So all the negotiations have been done with the trade unions. So the plan is in place, and it's ready for execution. Part of that has been done already. Alec has alluded to that. So 170 people have already left. There's more to come. And 90% of the production facilities will be based in Turkey. I just want to reiterate, this is not new facilities which we have in Turkey. It's existing facilities, which we will expand. So there was -- we don't have to build for the record. We've just added production there. So this will come at a better productivity, at a cheaper cost of goods sold and as a result, we should be in a better position and a more competitive position. Is the team up for it? Yes, there's been quite a bit of restructuring done already on the Balta file in the recent quarters with a good result, and we will continue to do so. Alexander Robert Pratt: So it's quite a modular move. So some of the machinery is already there and already operating. So in total, we're moving about 24 rooms over to the Turkish facility. Two of those are up and running, basically on a phased basis week by week, right? So there isn't a kind of specific risk around a single piece of machinery. Obviously, the total spend, excluding the redundancy payments is only about EUR 10 million. So I think that probably gives you a bit more confidence around that. And our legal team feels very confident and [they’re also in fact] confident. Geoffrey Wilding: The company is saying that CapEx spend is expected to be EUR 10 million to EUR 15 million lower in the future than it has been historically. Are you underinvesting in plant? Philippe Hamers: No, I think -- and this is important. So we have -- with the investment, for example, in the U.K., with all the investments we've done in logistics in the factories and all that, even if the market was to grow 20%, 25%, we don't need to spend more CapEx. Yes, we may have to add a few shifts. Yes, we may take an extra lease on a truck. But we have all the capacity. We have all the agreements in place with third-party production providers in case we would be running out of capacity, so we can make different decisions in terms of make or buy. But I have to say, in today's market, we have a very competitive production base in the U.K., and I'm not scared of Turkish imports here because Turkish imports need a leg to go into distribution. And this leg we can provide for ourselves and for third-party providers. Alexander Robert Pratt: Yes. I say we obviously invested fairly heavily within CapEx over the last couple of years. V4 line is a good example of that. So despite the challenges over the last couple of years, we've been spending money to make sure that we are well positioned for the future. We do have capacity in all our key markets to kind of grow into that demand recovery. So we are still allocating GBP 10 million to GBP 15 million of growth CapEx. We have had a first pass of the budgeting of that for FY '27. I think really that's choice around where we are getting returns there, but certainly no pressing need for additional incremental spend. Geoffrey Wilding: So what drives volumes and what needs to change in the macro environment for there to be a recovery in volume? I'll give you some initial high-level thoughts and maybe Philippe can comment additionally. Volumes primarily is the result of consumer spending on redecoration with a much smaller amount from construction. In terms of the consumer spending, housing transactions are a key catalyst to consumer spending because there's a very high proportion of buyers of a home redecorate when they first move in. And so therefore, as interest rate comes down and housing transactions recover, that's a key driver. The other consumer spending on existing homes happens when people have money left over at the end of the week. So wage growth versus inflation and mortgage interest rates are important as is consumer confidence, which is clearly strongly correlated with employment prospects. So at a macro level, those are the factors that influence volumes. And I don't know if you've got any additional comments, Philippe, at a practical level. Philippe Hamers: Well, not really. I think I've alluded to that earlier. So we can see if -- and I'm reverting back to U.K. now, if we look at how the market is over here, yes, there's a bit -- we have seen a bit of a swap from soft into hard flooring, but that doesn't really matter because we have both categories on offer; 80% to 85% of what we are selling is driven by refurbishing, not new homes. Yes, we are present in the new home market as well, but mainly to the refurbishing market. And we have not seen any declines of volume, and there's -- according to us, there's absolutely no reason why there would be a structural change in the demand anytime soon in this country. Geoffrey Wilding: Is your growth in the U.K. due to a recovery in demand? Or are you taking market share? Philippe Hamers: So we are clearly taking market share. So I think the market has been pretty flat this year in terms of demand. So you've seen -- or I mentioned that in the presentation that we have grown about 3% top line, but much more in profitability in H1. I think we will by far improve on that number in the second half. And this is market share we're clearly taking now. And as said earlier as well, so not only in H2, but we can see that in the preparation of the budget towards next year. So we are looking forward on a good solid market in the U.K. coming up. Geoffrey Wilding: Can you comment on the company's liquidity position, Alec? Alexander Robert Pratt: Yes, at the half year, we kind of refer to that GBP 86 million of cash on the balance sheet and we -- that have the Super Senior Credit Facility is fully drawn, but we also have the ability to incur about GBP 187 million in local lines, broadly similar number as the cash balance was drawn in local lines, so about an incremental GBP 100 million at the half year period. Geoffrey Wilding: Assuming a recovery does occur, what long term does management expect the EBITDA margins to be with a normalization of demand? Alexander Robert Pratt: Well, look, at the full year, we laid out kind of the long-term track records. I don't think we see it being hugely different to that. I think what we are trying to deliver is more integration than we were through the last cycle that should bring further benefits. So there is no reason we shouldn't be able to get back to those historical levels. Geoffrey Wilding: Is LVT damaging the demand for ceramics? Or is it more a wide consumer spending issue? Philippe Hamers: Yes, I've seen that question here. So there's -- some people say it does, others say it doesn't. So we are -- we have an offering in LVT as we have an offer in ceramic and in carpets. It doesn't really -- I don't really care where the demand comes from. Has it got an impact? I think the sale of LVT has definitely some impact because in terms of decors, you can buy like a wood decoration in LVT as you can buy it in ceramics. So there's probably a bit of back and forth between the two product groups. But I think at the level where we are in ceramics in terms of market share and LVT, it doesn't really -- so it has no impact or influence on the numbers we are reporting. Geoffrey Wilding: I think it's worth mentioning that the size of the ceramics market is absolutely enormous. There is about 1.5 billion square meters of ceramic tiles sold in Europe each year. And the amount of LVT sold at the present time, albeit it's growing, is a rounding error given the overall size of the ceramic tile market. So I don't think that the -- any shift of consumer spending from -- sorry, from ceramic tiles to LVT is having much of an impact in terms of the size of the overall ceramics market. Actually, I've just noticed the time. We better stop. There's still questions to go, which we'll try and answer otherwise, but online. But I think we better bring the session to a close. Operator: Perfect. That's great. Geoff, Philippe, Alec, thank you for addressing those questions from investors today. And of course, the company can review all questions submitted today and will publish those responses on the Investor Meet Company platform. But Geoff, before we direct investors for the feedback, which is particularly important to the company, could I please just ask you for a few closing comments? Geoffrey Wilding: Okay. As I said, I appreciate everybody taking the time to join and continue to take an interest in the business. I appreciate it's not -- it hasn't been a particularly celebrious for last couple of years, but we actually are feeling more confident about the future now than we have at any time in the last couple of years because of the changes that have been made operationally that will ensure earnings grow next year. So with that, we'll wind up for today. Operator: That's great. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Victoria Plc, we would like to thank you for attending today's presentation, and good afternoon to you all.
Operator: Greetings, and welcome to the NANO Nuclear Fiscal Year 2025 Financial Results and Business Update Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Matthew Barry, Director of Investor Relations and Capital Markets. Matthew Barry: Thank you, and good afternoon, everyone. Joining me on the call today are Jay Yu, NANO Nuclear's Founder, Chairman and President; our CEO, James Walker; and CFO, Jaisun Garcha. Please note that today's press release and slide presentation to accompany this webcast are available on our website. Before moving ahead, I'll quickly address forward-looking statements made on this call. Listeners should note that today's presentation will contain certain forward-looking statements about NANO Nuclear's future goals and potential milestones that are made under the safe harbor provisions of the applicable federal securities laws. Words such as aim, may, could, should, seek, project, expect, intend, plan, believe, anticipate, hope, estimate, goal, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are based upon many assumptions and estimates made by management, all of which are inherently subject to significant risks, uncertainties and contingencies, many of which are beyond NANO's control. Many of these are shown on the slide you see here. You're cautioned that actual results, including, without limitation, the results of NANO's microreactor development activities, strategies and other operational plans, including the results of our regulatory acquisition and research and development initiatives, as well as future potential results of operations, operating metrics, addressable market and other matters about the future, which may be discussed may differ materially and adversely from those expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors and other disclosures contained in NANO's filings with the Securities and Exchange Commission, including the risk factors and other disclosures in our Form 10-K filed today and our other filings with the SEC, all of which are or will be accessible on the Investor Relations section of NANO's website as well as the SEC's website. You're encouraged to review these disclosures carefully. Except to the extent required by law, NANO assumes no obligation to update statements as circumstances change. With that, I'll turn the call over to Jay Yu, NANO's Founder, Chairman and President. Jiang Yu: Thank you, Matt, and thank you to everyone joining the call today. I'll begin the call with a high-level overview of the major trends shaping the advanced nuclear market and then highlight the meaningful progress we made in 2025. NANO nuclear has worked to position itself at the center of a global nuclear renaissance. This is driven by several durable long-term trends including growing demand for reliable baseload energy, climate mandates and energy independence and global support for nuclear energy. First, we are seeing a significant need for reliable baseload power to enable the rapid growth of AI data centers, industrial reshoring and broader electrification. AI data centers are projected to be a primary driver of the continued surge in electricity demand. For more than 2 decades, U.S. power demand grew below 1% per year. According to the recent Grid Strategies report, some estimates call for electricity usage to increase by 5% to 6% annually over the next 5 years, and data centers alone could account for more than half of that growth. Meeting this level of demand could require U.S. power sector to plan and build new generation transmission capacity at more than 6x the pace of recent years. Also, it is not just the scale expected demand that's important, but the type of demand that's coming online. The Grid Strategies report highlights that the next wave of demand is projected to run at load factors close to 96% compared to system-wide average of about 60% today. Over the past year, several major tech leaders have taken concrete steps to secure dedicated nuclear capacity for their data centers, whether it's new PPAs at existing nuclear plants or collaborations with advanced reactor developers, these actions reflect a clear recognition that meeting future AI data centers' needs require firm, always available power, a role nuclear is uniquely suited to fill. And equally as important, a lack of sufficient transmission infrastructure is expected to constrain the grid's capacity to meet forecasted power with even conservative growth estimates expected to require substantial grid expansion. All of this represents a fundamental shift that is placing an even greater emphasis on scalable and constant sources of baseload power that can operate independently from grid constraints. This is exactly where microreactors offer a compelling advantage. Second, energy sustainability, energy security and climate-related mandates continue to increase demand for clean energy, requirements that intermittent sources alone cannot meet. As a result, there is a growing global commitment amongst nations, leading institutions and the world's largest energy users to triple nuclear capacity by 2050, solidifying growth in nuclear energy as a secular trend for the coming decades. Third, we continue to benefit from the unprecedented bipartisan policy support for nuclear energy in the United States and the growing global support. This is supporting expansion of nuclear capacity while also accelerating development of advanced reactors like ours. President Trump's 4 executive orders in May further enhanced federal support for nuclear energy. And since then, we've seen a series of concrete federal actions that are building upon the administration's executive orders. First, the U.S. Army's Janus program creates a defined near-term pathway for the U.S. Army to deploy microreactors later this decade, which bodes well for NANO's opportunities for military applications. Second, the Genesis Mission executive order supports several of the administration's high strategic priorities, AI leadership, national security power needs and energy dominance, priorities that can be enhanced by microreactors. And third, the creation of a Nuclear Fuel Cycle Defense Production Act Consortium supports the reestablishment of domestic nuclear fuel supply chain, which could support our strategic efforts in areas like conversion and enrichment. The rapid progress we've made this year have been accelerated by these regulatory tailwinds, which continue to strengthen demand for advanced nuclear reactors. Fiscal year 2025 was a transformative year for NANO, marked by disciplined execution across several parts of our business. We've advanced the KRONOS MMR Energy system meaningfully from acquiring the asset out of bankruptcy to securing our strategic collaboration with the University of Illinois, achieving important NRC milestones and completing the necessary site characterization and drilling work for our planned Q1 of 2026 construction permit application with the NRC. We also made significant progress towards resuming formal licensing activities with the Canadian Nuclear Safety Commission through the acquisition of Global First Power, which has since been rebranded as True North Nuclear. During the year, we strengthened our company with key corporate milestones, including the acquisition of our Oak Brook engineering and demonstration facility, securing incentives from the State of Illinois, expanding our executive and technical teams and simplifying our microreactor portfolio with a Letter of Intent to sell ODIN design to Cambridge AtomWorks for $6.2 million. On the fuel cycle front, we've made significant progress derisking our supply chain through our strategic collaboration and investment in our affiliate list technologies. Our addition with our affiliate list technology to the DOE's LEU Acquisition Program and developing our own conversion capabilities. Financially, we remain well capitalized, raising over $600 million since our May 2024 IPO with growing support from institutional investors and numerous index inclusions. And importantly, we continue to expand our pipeline of commercial opportunities. We executed a feasibility study agreement with BaRupOn to evaluate up to 1 gigawatt of power with our KRONOS MMR. We secured the AFWERX Direct to Phase 2 contract to conduct a feasibility study to site KRONOS MMR at the Joint Base Anacostia Bolling and also grew our pipeline of potential customers through ongoing discussions with potential data centers, industrial and defense customers. I could not be more proud of our progress our team has made over the last year. We're more excited to continue executing our strategy. With that, I'll hand over the call to James Walker, our CEO, who will discuss our differentiated strategy, the value proposition of our technology and provide an update on the recent development and commercial progress. James Walker: Thank you, Jay. I'll first outline why microreactors offer a compelling value proposition relative to both traditional nuclear and larger SMRs currently in development. Traditional nuclear reactors are typically gigawatt scale projects, while most SMR designs range anywhere from 70 to 350-megawatt electric in size. Because of the smaller size of our KRONOS MMR, we believe a larger portion of our reactor components can be manufactured and assembled in a factory and shipped to site. Factory production and fabrication will allow us to standardize components, capture learning benefits much earlier and reduce the amount of on-site construction that has historically led to delays and cost overruns in traditional nuclear projects. Modularity is a second major advantage. Our design allows customers to scale capacity incrementally to match their ramp-up plans, and this approach can reduce upfront capital requirements for large projects and allows construction efficiencies to improve with every unit delivered. Third, passive safety features and use of advanced fuels support the ability to co-locate at customer sites, allowing us to provide off-grid or behind-the-meter power. This is important as grid integration is becoming a significant constraint facing large energy users. Interconnection queues can be years long. Transmission upgrades are costly and many high-load customers simply cannot wait for new lines to be built. By placing one or more of our microreactors directly adjacent to a customer site, we can eliminate much of that bottleneck. When you combine these factors, we believe microreactors represent the most practical solution for meeting the growing need for clean, reliable baseload power, particularly in locations where grid constraints are significant, while also providing increased opportunities to benefit from economies of scale. This is precisely why we are seeing strong interest from data centers, industrial facilities and military stakeholders for our KRONOS MMR. Having covered the broader value proposition of microreactors, I'll now focus on what really differentiates our flagship reactor, KRONOS MMR, technically and commercially. So the KRONOS MMR is a high-temperature gas-cooled reactor. It utilizes TRISO fuel and helium as the primary coolant. These are well-understood proven technologies with decades of operating history behind them. Prior to our acquisition, we believe more than $120 million was invested in this design over an 8-year period. That investment, combined with the global data sets that exist for high-temperature cooled reactor systems give us a strong foundation as we move towards U.S. and Canadian licensing and prototype construction. In the U.S., we remain on track to submit a construction permit application for the U of I project in the first quarter of 2026. And in Canada, we are actively working to reestablish formal licensing activities as we work towards submitting a license to prepare a site with the Canadian Nuclear Safety Commission, the CNSC. While KRONOS is applicable to a range of markets, it's particularly well suited for large-scale deployments where many units can be co-located, connected and scaled over time to match demand growth. And because of the reactor's modularity and the ability to factory fabricate components, we believe KRONOS has the potential to capture meaningful economies of scale as deployment volumes increase. Importantly, we estimate the learning curves of manufacturing and on-site assembly can potentially deliver a levelized cost of energy that is more competitive with traditional nuclear, wind and solar while providing the option for 24/7 reliability that intermittent sources cannot. In short, we see KRONOS as a derisked scalable platform with significant commercial applicability and especially aligned with the needs of high demand, high uptime customers. I'd now like to highlight why we believe the maturity of this technology materially derisks this reactor. The KRONOS reactor builds on high-temperature gas-cooled reactor technology that has been demonstrated across multiple countries for more than 5 decades. TRISO fuel, helium coolants and graphite moderation are high TR level components with extensive operating data. Our balance of plant strategy also leverages commercially available components, including steam generation and turbines as well as proven thermal storage systems used in today's concentrated solar plants. And importantly, we are staying within conservative temperature and coolant parameters consistent with prior deployments. Because of this, the key technologies themselves are largely demonstrated. Our focus is not on inventing novel reactor technology. It's on integrating well-understood systems into a microreactor format to be licensed and ultimately deployed efficiently. Building on that, I'd also like to touch on how the KRONOS design and modularity translate into deployment versatility across different scales and customer needs. KRONOS' standard design and modularity provide the flexibility to serve a broad range of applications from single-unit installations for remote communities, mining projects or defense sites with power needs around 15 to 20-megawatt electric to distributed multiunit deployments all the way up to large-scale deployments where many units can be connected and scaled over time, enabling staged growth to 1 gigawatt and beyond. We believe this level of deployment versatility is a core advantage that opens the door to more use cases compared to many larger SMRs or conventional nuclear reactors. Another foundational aspect of our value proposition is the inherent safety profile of the KRONOS' design. KRONOS incorporates negative reactivity feedback, passive heat removal, passive shutdown characteristics and uses helium and inert gas along with TRISO fuel. These features allow the reactor to safely dissipate heat without operator intervention or external power. Under a design basis accident analysis for an 840-megawatt electric plant, projected dose levels remain well within the site boundary, meaning an emergency planning zone would remain within that site footprint. Practically, this means the reactor is designed so that heat is managed passively, fuel remains stable and any negative scenario remains localized, enabling siting directly at the point of use. This is a meaningful distinction from traditional large-scale reactors and some SMRs that require much larger emergency planning zones. And this safety profile can enable off-grid power that could bypass grid integration and [ costly ] transmission lines. To bring KRONOS to market, we're pairing strong technology with the right strategic partners and state and federal government support. At the federal level, recent executive actions are signaling clear momentum by directing the NRC, the Department of Defense and the Department of Energy to expedite advanced reactor development and deployment. At the state level, Illinois has provided strong backing, highlighted by our $6.8 million incentive award and also provides unmatched nuclear workforce and infrastructure to host a first-of-a-kind microreactor. University of Illinois brings the technical capability, engineering depth and credibility necessary to execute. Together with the expertise of project supporters like EPCM firm, Hatch, and construction firm PCL, we have a great deal of expertise with complex infrastructure delivery. We believe we have the right support to enable our partnership with U of I to be a model for a first-of-a-kind deployment. As our technical progress advances, support strengthens and more customers recognize KRONOS' value proposition, we're seeing strong interest from a growing pipeline of potential customers. First, we're currently conducting a feasibility study with BaRupOn to explore 1 gigawatt of deployed power for their AI data center and manufacturing campus in Liberty, Texas, demonstrating real demand for large-scale applications. Our team is currently advancing the feasibility study, which we expect to be followed by early project development activities. In addition, we continue to see strong interest from data center developers, industrial customers and military users, each of which are interested in baseload energy sources and increasingly want this reliability to be off-grid. We also remain excited about additional opportunities for remote communities, mining projects and other markets. Beyond our commercial traction, we're also advancing our strategic focus on vertical integration to derisk one of the most critical elements of future deployment, the nuclear fuel supply chain. Our focus on vertical integration stems from our belief that one of the largest constraints to deploying advanced reactors at scale isn't the reactor technology, but fuel availability. As a result, we're working to gain exposure to several critical stages of the fuel cycle, starting with enrichment through our collaboration with an investment in our affiliate list technologies. Our affiliate list owns the only U.S. origin patented laser enrichment technology and its selection as a DOE LEU Acquisition Program prime contractor reinforces the potential strategic importance of their technology. Our role as a subcontractor positions NANO to directly participate in strengthening the domestic fuel supply chain needed for next-generation reactors. And our relationship with our affiliate LIST has the potential to provide us with differentiated enrichment solution. In parallel, we're exploring opportunities to build our capabilities in conversion and fuel transportation through strategic partnerships and M&A. Further progress in each of these areas will not only derisk future reactor deployments, but also positions NANO to generate revenue across multiple verticals while remaining aligned with federal funding and national energy security needs. With that, I'll turn the call over to our CFO, Jaisun, to provide financial highlights. Jaisun Garcha: Thank you, James. I'll now provide a summary of our fiscal 2025 financial performance. We finished the year with a strong balance sheet supported by multiple successful capital raises at progressively higher valuations. Our overall cash position substantially increased during the year, ending the period with cash and cash equivalents of $203.3 million, an approximately $175 million increase from the end of fiscal 2024. The year-over-year increase was mainly driven by net proceeds from several successful equity capital raises. After our fiscal year-end, our cash position increased to approximately $580 million following an October 2025 private placement. We view our strong cash position and proven ability to raise funding at scale as a meaningful differentiator. With current cash on hand and our access to the public capital markets, we are well positioned to accelerate the licensing and commercialization of the KRONOS MMR while maintaining the flexibility to expand our vertical integration through disciplined M&A and potential strategic partnerships. Turning to the income statement. Fiscal 2025 loss from operations was $46.2 million. The increase from fiscal 2024 was driven by an approximately $23 million increase in G&A expenses and an approximately $12 million increase in R&D expenses, primarily focused on advancing our KRONOS MMR and adjacent growth initiatives. Fiscal 2025 net loss totaled $40.1 million, up approximately $30 million from the prior year, reflecting the aforementioned increase in operating expenses. This was partially offset by an approximate $6 million increase in other income from higher interest income on a larger cash balance. Net cash used in operating activities increased by approximately $11 million from the prior year to $19.6 million, driven by a higher net loss, partially offset by an increase in equity-based compensation. Net cash used in investing activities rose by approximately $14 million from the prior year to $17.5 million, driven by an increase in process R&D from our acquisition of the KRONOS MMR as well as property, plant and equipment additions related to the purchase of the Oak Brook, Illinois engineering and demonstration facility and the build-out of our Westchester, New York demonstration facility. Before turning the call over to the operator for Q&A, I'd like to reiterate that our strong cash position and access to the public capital markets give us the financial strength to execute by accelerating advancement of KRONOS MMR -- while also providing the flexibility to pursue strategic partnerships and targeted M&A that further derisk our nuclear fuel supply chain and provide potential for near-term revenue generation. As always, we will continue to operate the business and allocate capital with discipline, prioritizing opportunities that offer compelling return on investment and unlock sustainable value for shareholders. With that, I'll now turn the call over to the operator to open up the call for Q&A. Operator: [Operator Instructions] Our first question is from Jeff Grampp with Northland Capital Markets. Jeffrey Grampp: I'll start first at the U of I site. Good to hear, you guys are still on track for the permit application in Q1 of next year. Can you walk us through kind of the time line when that gets filed? How long do you guys think that will take to get through the NRC? And is there any work you guys can do to accelerate that time line while that's getting through the NRC process? Or is a lot of that predicated on getting that permit application through the NRC before you can do too much site preparation infrastructure work ahead of time. James Walker: This is James. So what I would say is that actually, the drilling completed on schedule and on time. So that was good. That gave us the geotechnical data we needed to go into the construction permit. That was really the missing component. We're in a bit of an odd situation with the reactor companies that our engineering is way ahead of the licensing. And usually, it's the other way around, that people get prepped for submissions and then they allow for the engineering to catch up. But effectively, this puts us in a position where we are on track to submit that construction permit application to the NRC in Q1 next year. And that is on track, and that is looking like it's going to go ahead. With regard to time on the turnaround from the NRC, one good thing to reference is, say [ Kairos ] did something very similar to us. They applied for a construction permit for their, not a full-scale reactor, but sort of a model scaled-down system. But they took about 15 months turnaround. But the reason why we're very likely to be a lot less than that is that they were using things like novel coolants, more novel tech, whereas what we're doing here is much more well known about large data sets, very well -- very high TR level components. So there's a lot less scrutiny that needs to go into the NRC evaluation of our applications. So 15 months can be considered like far beyond what we can expect. We really expect a turnaround substantially below that. It would be very nice if it was in the same calendar year. Certainly, within 12 months is kind of the ballpark we're expecting. In terms of what we're able to do on our side to expedite things, the most important part is the initial application to make sure that goes in. Now it doesn't have to be perfect. What you can do is, you can just -- you can get the application and then get them started on the process, understanding that there are certain components if you would supply them during their evaluation process. And that allows you to get the process underway and save on time. So I would say that's a big one. The big one is to get the application into them sooner, get as much detailing as you can and then work obviously very closely with them throughout the whole process to get it expedited and completed. Jeffrey Grampp: Great. That's super helpful, James. I appreciate that. For my follow-up, can we touch on the vertical integration strategy there? What are the main objectives in '26 in this regard. And I'm curious in terms of internally developing capabilities versus acquiring them, do you guys have a bias? Or does that kind of depend upon what aspect of the vertical integration we're talking about? James Walker: Yes. So for instance, if we're talking about internal capabilities with regard to reactor first, just before we get into vertical integration around things like fuel, on the reactor itself, we very -- we do acknowledge that there are certain components that are very unlikely for us to be able to internally produce. And I mentioned that in reference to things like nuclear-grade graphite or a N-stamped fabrication facility to produce reactor vessels. These kind of things are so specialist that if you were to try and internally do them, you probably would spend in the order of 10 years getting yourself to a level where you are qualified to produce those materials. And still even then, you wouldn't have the operational experience that some of the partners that we're talking to at the moment have with regard to manufacture of those parts. So just all that to say that there are definite components within the reactor that we are very confident that we can do internally. And what we're examining is that while we're building out the UIUC project and the Canadian project is essentially a centralized reactor core manufacturing facility to centralize the fabrication of individual components so we can get that economies of scale for the reactor by doing as much as we can internally. But we know what we know and we know what is more specialist. And even in the U.S. and a reactor vessel with an N-stamp. I don't think there's actually anybody currently outside of people who do cause for military that are able to do that kind of thing. Those things need to be more specialist. What I would say on the fuel side of things is that this has been a concern of ours since as early back as 2022 when we started trying to derisk the fuel supply chain. And that's what led to our related transaction with LIS Technologies and their creation, essentially they give us a means to ensure that we could be relatively confident that we would have an enrichment capability in friendly hands that we would be able to utilize for our fuel. Now saying that, we took a very holistic approach of the entire industry, and we realized that there were a number of different people going into enrichment. So there was ourselves with LIS Technology. There was General Matter, Orano, Centrus, but none of them were actually focusing on the feed material that actually goes into all the enrichment facilities, which was uranium hexafluoride, and that's produced via conversion. Now a conversion facility is kind of -- it's kind of odd. It's not spoken about very much. But already in the U.S. at the current time, the U.S. produces about 1/3 as much as it needs for its civilian reactors. And by 2050, that -- maximum capacity of that facility is expected to produce about 1/10 of what the country needs for new feed for enrichment facility. And we saw that as being maybe even a bigger bottleneck in the enrichment component. So we spent the last couple of years really examining how we can involve ourselves in the conversion side of things. And there's nothing publicly released at the moment. So I'm somewhat limited on what I can talk about the internal work. But what I would say is that I would expect next year that you can anticipate some developments on that side where we can announce the work that we've been doing on that conversion side to derisk that and ultimately being able to be involved in that uranium hexafluoride supply chain. And obviously, what's beneficial about that is that it is a business before even the reactors are online. And it's a very unique thing that nobody else seems to be doing that gives us a lot more control and derisking of our reactor systems. Operator: Our next question is from Sameer Joshi with H.C. Wainwright. Sameer Joshi: Thanks for providing good color in the presentation. Just a few questions from me. You did mention progress on the Canada front with the Nuclear Safety Commission there. Can you give us a little bit more color into what the steps are for that country and what you're planning for there in 2026? James Walker: Absolutely. So Canada is actually an extremely interesting prospect, just given the fact that when we took over the asset that we're going to develop. The Canada projects have been previously backed by the Canadian government because it was being looked at as a means to supply areas all over the country that subsist off for more diesel. And obviously, we've been very keen to put this back in place, and it's been very tied in with the Canadian government. Now that all relates to just answering the question very quickly because the siting is probably the most important thing we're concentrating on now that we do have the -- we do know where the reactor will be placed. And now we're going through the legal process and the due diligence process to be formally awarded that site at the federal level. Once we do have that, and we do expect that announcement in the first half of next year, then the next stages become quite quick. So for instance, you mentioned CNSC with the licensing. That licensing work that has previously been completed for this project and on our reactor was completed at this site too. So we automatically inherit all of that progress that was done at that site. That means we go straight into the Phase 2 of the licensing process, so the LTPS 2 process, and we bypass the Phase 1 because it's already been done. So that sort of leapfrogs us into the lead in Canada in terms of the progress needed to commercialize and deploy and license a microreactor system. And what I would say after that stage of things is once we've got the sites announced and finalized and we've got the progress reinstated with the CNSC, you're going to see some level of government support coming for this reactor system, which we are currently negotiating with the Canadian government, but it's likely to take the form of certain incentives or investment or support in some sort of breakdown fashion because obviously, they are very keen to have this as a future power source for particularly areas where they subsist off for more diesel and they don't have an alternative. So -- but those are the milestones in the order you'll see them coming out next year. Sameer Joshi: And sort of staying on the government opportunity, but in the U.S., I guess, what is the scope of this AFWERX Direct to Phase 2 project. What does it entail on your -- on NANO's part? And what is the potential opportunity here in coming years? James Walker: So it's a good question actually because it wasn't a very well known about opportunity. But the reason why it's particularly important is that the U.S. military bases have a mandate to be able to be self-sufficient in terms of generating their own power for at least a 2-week period. And currently, very few of them are able to meet that requirement. In fact, if -- and if they are, they usually have to stockpile diesel, which in itself is a dangerous thing to do, especially for targeted attacks. So the AFWERX program is for the -- deliberately for the purposes of trying to find energy systems, particularly nuclear that can come in and provide that mandated self-sufficiency. But the long-term prospects are that once this is done and we move into the later stages of the development of the program, that opens the door to all military bases because the AFWERX program is concentrated on the Air Force originally. But effectively, once you're in the system and you're working through the later AFWERX programs, effectively, you're given the same opportunity to mass produce reactor systems for many, many bases, if you would, the defense innovation unit opportunity that came out a few years ago, that was looking at reactor systems for bases. So I would say the Phase 1, which we're currently in the moment, that could take anywhere from around sort of a 12-month period kind of estimate, potentially a bit longer, but it's only a small buildup program. The next phase after this will be much more substantial and that will look at actual deployment, actual costs and who's going to be operating and how the logistics will actually look like. Once that's done, that's when you really -- we really will have available to us many opportunities to make many reactors for many different bases. So the AFWERX thing is it was a really great win. And we won it particularly as well just because the solution we do have was so ideally suited for what they needed. Subterranean to be co-located, didn't need large emergency planning zone. And for that reason, we did beat out the competition and the Air Force and the military -- the wider military just believe that this is the better solution for them in terms of long-term self-sufficiency for power. Operator: Our next question is from Subhasish Chandra with Benchmark. Subhasish Chandra: A couple of questions from, I guess, the 10-K. One of them is, I think you mentioned in there that states can get delegated authority over some nuclear activities by the NRC and it's something that you might be able to take advantage of. Could you elaborate on that, like sort of what activities and if you're looking at any specific states or if that -- what you're suggesting there is Illinois? James Walker: Sure. So there are a number of different things here. So what I would say, initially, when we were working with people at the state level, is say for instance, when it comes to something like a conversion facility, that sort of facility is actually more largely a chemical plant rather than a nuclear facility. And so when it comes to chemical plants, states actually license those all the time outside of a federal regulator actually being involved. But because of a historic precedent, those facilities fell under the NRC. And so what we have been working with at the state and actually with the NRC directly is looking at opportunities for the state to take back that control to license those facilities and take that off the plate of the NRC. And the fortunate part is at the state level and at the NRC level, there's support on both sides for that. For that kind of facility, it's very unnecessary for the NRC to be involved. It certainly can do the job, but it's also coming at a time when the NRC will be very stretched. And especially if states have the internal capabilities to license a facility like that, then it's advantageous to do it at the state level. So that's one thing. What I would say is that there are a number of companies at the moment that are -- I wouldn't say blaming the NRC, but there's even a couple of lawsuits against the NRC at the moment to state rights to license reactor systems. Now I would caution with doing that is that without a framework and a historic experience of doing that kind of thing, it's going to be very trying for people to do a licensing of reactor at the state level. And certainly, if you examine even a DOE license, which wouldn't be commercial, even the DOE for a large part, is going to have to defer towards the NRC for how it does regulate these systems on DOE land or if there is its own DOE license. But what you can do for certain things, certain individual components is that you can get certain things qualified at the state level rather than the federal NRC level for certain components to get them qualified. That would be the biggest advantage you could have to, one, take work off the NRC's plate; and two, potentially expedite the licensing time lines that are going to be a critical path towards the commercial deployment of the reactor system. But in large part, we have a very good relationship with the NRC. The bulk of all of our licensing will go through them. They're already very familiar and confident with our reactor design. We don't anticipate actually any significant issues with getting our reactor license. And just for us, it's more of a process we have to go through. But on the -- just regressing back to the facility, there's definitely opportunities to do things at the state level, which would definitely expedite certain facilities a lot faster than if we were doing at the NRC level. Subhasish Chandra: Okay. Got it. And could you remind us the test reactor at UIUC, what components or what's going to be the difference between that and the commercial reactor, if any, including balance of plant? James Walker: It's a very good question because actually, the answer is not much, whereas other companies have gone for demonstration reactors or test reactors. We want to do a full-scale reactor system. So same dimensions, same everything. And the reason why we want to do that is that there are companies out there with license designs. And what they found and what we've noticed is that no customer wants to be the first customer to buy a reactor and build it and hope that all the kinks have been worked out in the design process and then operate the system. And that effectively led to [ killing ] any potential orders that came in from it, especially when that vendor wasn't interested in being the owner operator of the system. So the UIUC reactor will be a full-scale reactor. It will be called a research reactor, but effectively, it will be full scale. I would say that the only potential difference between the UIUC reactor and the commercial reactors is that we will certainly be able to optimize a lot of the engineering as we build them out so that the power output of the commercial reactors will very likely be higher than the research reactor at UIUC. But same scale, same balance of plant, same components as much as we can get in terms of closeness to the final commercial design, it will match very closely. Subhasish Chandra: Got it. And I guess what I was getting at, do you think you'll be able to determine an LCOE value with this reactor? James Walker: I think most certainly, what I would preface that with though is just saying that the LCOE for the first-of-a-kind reactor will be wildly different from the commercial reactors, especially once you start deploying those commercial reactors at scale and multiple units because each one will significantly drive down the cost of that LCOE. Now I would say with the -- already internally, we've taken great lengths to try and actually get towards those numbers, which is why in the brief we gave at the start, we said we're very confident it will be cost competitive with solar and wind and traditional nuclear. We get into the ballpark of those outputs very, very quickly. Now we didn't say things like gas or coal, but if you -- and if you do look at the fact that even something like that is anticipated to doubling costs within the next 5, 6, 7 years, then it actually starts getting quite commensurate with even the gas. But with the added benefit of obviously, we can co-locate and it can be put anywhere and you don't need to be connected to the grid and you've got those advantages, too. So I know you've probably noticed I'm avoiding figures exactly. But at this point, it's better to just compare what we know we are commensurate with. And then as we get to the finalization of that first-of-a-kind, that will give us an even stronger indication of how correct we were in our assessments. Operator: There are no further questions at this time. I would like to turn the floor back over to Jay Yu for any closing remarks. Jiang Yu: I want to thank everyone again for joining us on today's call. The interest and enthusiasm of our investors and market participants are important to us, and we're very grateful for the support we've received. We look forward to providing additional updates to you in the future. Have a great evening. Jaisun Garcha: This concludes today's conference. You may disconnect your lines at this time. We thank you again for your participation.