A：Lightpath Technology has been transforming from a component supplier into a vertically integrated provider of high-value infrared optics and camera systems. The strategic changes include moving value into complete imaging systems and acquiring companies like G5 Infrared and Bismi Technologies for advanced infrared camera technology.

A：Black Diamond K Cogent Glass, licensed exclusively from the US. L. B. Research Laboratory, is central to Lightpath's strategy as it enables the production of lighter, more affordable, and supply chain-secure infrared optics. This material allows Lightpath to design and manufacture fully integrated infrared systems in the West.

A：The acquisition of G5 Infrared, known for long-range infrared cameras, is contributing to Lightpath's growth by enabling the redesign of systems to use proprietary Black Diamond materials. This positions Lightpath as the most reliable provider of cameras with supply chain resiliency and helps eliminate reliance on Chinese-controlled materials.

A：The recent orders for advanced infrared cameras, valued at over $40 million, reflect the strength of the underlying market and growing customer confidence in Lightpath's ability to deliver. The strategic investment from on Semiconductor and Unusual Machines of $8 million is aimed at accelerating commercialization, particularly for unmanned aerial systems (UAS) applications, which underscores Lightpath's strategic relevance in reshoring advanced optical and imaging technologies.

A：The key drivers of growth for Lightpath are border surveillance and counter-UAS applications. The company has several programs contributing to short-term growth, such as deployments of long-range zoom cameras across various platforms including mobile and stationary systems for detecting, classifying, and tracking threats. The strategic focus is on winning placements in the new border surveillance towers, with prices ranging from $150,000 to $250,000 per camera.

A：The potential revenue contributions from additional programs amount to over $10 million in annual revenue from each, with a multitude of customers and programs driving strong growth for the assemblies and optics part of the business.

A：To support growth, strategic measures include scaling production based on a rapidly growing backlog and prospective customer list, adding capacity for black diamond glass manufacturing in Texas, integrating and testing complete G5 cameras in Orlando, and appointing Israel P. G. vano as Vice President of Manufacturing.

A：The appointment of Mark Kalo to the board of directors is significant as he is a veteran defense industry executive with a proven track record of profitable growth and leadership in large organizations. His guidance and extensive background in government, military, private, and public sectors will help steer the company's vision forward.

A：LightPath is transforming from a component supplier to strategic technology leadership by replacing legacy materials with domestic, scalable, and proprietary alternatives, and is converting this differentiation into multi-system strategic investments with long-term relationships with sophisticated industrial customers. This strategic work is expected to deliver sustainable growth and expanding profitability through fiscal 2026 and beyond.

A：The financial results for the first quarter of fiscal 2026 included a 79% increase in revenue to $15.1 million from $8.4 million in the same year ago period, with revenue from components, assemblies, modules, and engineering services contributing $4.3 million, $5.9 million, $1.1 million, and $0.8 million respectively. Gross profit increased to $4.5 million or 30% of total revenues from $2.8 million or 34% of total revenues in the prior year quarter. Operating expenses rose to $7 million from $2.2 million, primarily due to the integration of G5 and increased sales and marketing spending. Adjusted EBITDA was $0.4 million positive compared to an adjusted EBIT loss of $0.2 million in the prior year period.

A：The company's future business strategies and priorities include a detailed go-to-market strategy to target high growth areas, quality and on-time delivery resulting from prior investments in manufacturing, and continued reporting of adjusted EBITDA as a measure of financial success. They also include a recent $8 million strategic investment from Honda Holdings at $5 per share, reflecting quality and strategic investors' confidence in the company.

A：The situation regarding the acquisition of germanium outside of China is very interesting and it's being closely followed. China has made it clear that they will put significant effort into ensuring that germanium is not freely available for different applications.

A：Customers who have switched from germanium to black diamond are expected to remain cautious due to the previous disruption in the supply chain. They are very careful now and even if germanium becomes available, they are likely to avoid risks by sticking with black diamond.

A：Black diamond has been performing much better than germanium in many use cases, offering benefits such as lighter weight, smaller size, better throughput, and various other performance advantages.

A：The transition of cameras and sub-assemblies to black diamond is more of a resource issue due to multiple projects and engineering work ongoing. The team is nearly done with one redesign but is constrained by a lack of resources and engineering staff. New hires and filling open positions are priorities to further prioritize the conversion of cameras.

A：Efforts to improve supply chain capacity are focused on adding capacity in fabrication, investing in glass capacity in Londono, and working with vendors to replace or solve issues with components like focal plane arrays. The time frame for these improvements is pending as the company works on overcoming existing constraints and limitations.

A：The potential down selection with NGSRI for 2025 is still hoped for, possibly in early fall or in fall of 2025. However, there is uncertainty due to the readiness of both units for flight test, with some expecting the units to be ready by late November or December. There is confidence in the joint venture with Lockheed Martin for a few reasons, including their bullishness on the program and the intent to scale up quickly if awarded.

A：The investment in systems and modules is expected to impact gross margins, with a step up from the current levels to 35% by the end of the fiscal year. The reason for the improvement is that systems and modules have a higher margin business compared to the current focus on IR components.