A：The financial results for the second quarter of fiscal year 2026 include a focus on commercial execution and the continued acceleration of demand for distributed baseload power and fuel cell solutions. The company's earnings press release and webcast presentation provide further details on the financial results and growth strategies.

A：The company is differentiating itself by offering scalable, reliable power solutions that can be deployed without waiting years, which is especially relevant for the AI and digital infrastructure that require high power density. The company's DC-native continuous platform provides a ready backbone for data centers, offering a modular solution that integrates high-grade thermos for absorption chilling and improves power usage effectiveness (PUE).

A：The company's pipeline has expanded to over 200% in the second quarter compared to the first, with a more than 200% increase in the size of submitted proposals and a shift towards larger average proposal sizes from 65 MW to 130 MW. This growth reflects increased recognition of fuel cells as a solution for both near-term and long-term power needs.

A：The company introduced the 12.5 megawatt, the cell energy block product, which is an off-the-shelf, utility-scale product with a base energy block of 1.25 MW. It is designed for rapid deployment into grid-constrained markets and allows customers to add capacity in phases, rather than overbuilding upfront.

A：The company's approach to converting high-quality opportunities into contracted backlog involves structuring projects with the right counterparties and securing financing support. The focus is on advancing opportunities where execution, certainty, and long-term value creation are considered strongest.

A：The manufacturing capacity expansion signifies the company's commitment to meeting growing power demand and supporting future growth. The capacity expansion is being increased from 350 MW to 500 MW of fuel cell manufacturing capacity per year, with an overall cost in the range of 200 to $275 million. The company plans to expand capacity in line with contracted backlog, market demand, and structured capital support.

A：Strategic and commercial partnerships are validating the company's global scale by transitioning from development to deployment. The work in South Korea with Green Energy Company, limited GGE, progress under the MoU with Inuvik for a data center, and the collaboration with ExxonMobil's low carbon solution business are key examples of these partnerships contributing to the company's growth.

A：The strength of the company's balance sheet is important as it enables a measured and disciplined approach to growth. The ample liquidity position allows for prioritizing execution, proof, and long-term value creation, which in turn supports the company's business plans and growth objectives.

A：The company views its strategic and commercial partnerships as a validation of the global scale of market demand for its technology.

A：In the second quarter of fiscal 2026, the company reported total revenues of $35.6 million, a decrease of approximately 5% year over year, with the decline attributed to lower service and generation revenue. Loss from operations was $77.9 million, and net loss was $77.6 million, compared to prior year losses of $37.7 million and $1 dollar 79 cents per share, respectively.

A：The non-cash impairment charge of $42.6 million related to the Groton project affected the company's financial results by contributing to a higher loss. The charge was a strategic decision aimed at ensuring high reliability for a government asset and led to a net loss of $78.7 million, or $1 dollar 45 cents per share, compared to the prior year period.

A：As of the end of the second quarter, product backlog was $36.1 million, mainly reflecting remaining repowering module deliveries in Korea scheduled for the second half of the year. Service backlog was $155.4 million, encompassing future revenue from long-term service agreements on customer-owned power plants. Additionally, there was $928.5 million of generation backlog from company-owned projects under long-term power purchase agreements, with a weighted average remaining contract term of approximately 15 years.

A：Operating expenses for the second quarter were $65 million, up from $26.4 million in the same quarter last year, primarily due to the impairment charge. The company's liquidity position remained strong with total cash, cash equivalents, and restricted cash of $440.9 million at the end of the quarter, supported by significant bolstering of cash resources through the sale of shares.

A：The company utilized its at-the-market equity program, selling approximately 4.7 million shares for net proceeds of $100.4 million during the second quarter. Subsequent to the quarter, an additional 4.1 million shares were sold, raising net proceeds of $52.9 million. As of the end of the quarter, the company remained essentially debt-free, with a strong balance sheet that supports disciplined investment in near-term growth opportunities.

A：The company's key priorities include executing its strategy with financial discipline, balancing growth initiatives with rigorous cost control, and efficient capital allocation. The company remains confident in its approach to achieve sustainable profitability, having made tangible progress on its objectives.

A：The most resonating benefits of the company's fuel technology with potential customers include its long history of providing utility-scale platforms and the ability to deliver quickly without facing the traditional hurdles associated with community permitting and environmental regulations. Another significant point of interest is the company's 12.5 megawatt building block and the long-term capital preservation it offers due to its data center alignment.

A：The speech does not provide specific details on the necessary steps or key milestones required to convert the pipeline into agreements, nor does it outline potential timelines beyond the framework mentioned in the prepared remarks for this fiscal year.

A：The timeline for responding to larger transactions is a function of scale, which includes engaging with customers, demonstrating technology, and showing a history of providing utility-scale solutions with continuous runtime.

A：The company targets achieving adjusted EBITDA positive once consistent production volumes are reached at or above 100 MW on an annualized basis.

A：The company does not need to rule out additional capital raises as it currently has a good balance sheet and is investing in capacity expansion for growth. It has various financing options available and is comfortable with its current liquidity position.

A：The introduction of the 12.5 MW block solution has been a strong adder to customer conversations, demonstrating the ability to tie power and scale in a modular fashion, leading to better economics and a strong selling point.

A：The company has optimized its operating cost structure to achieve an adjusted EBITDA positive target, so it does not expect significant increases in operating expenses. There will be modest growth related to inflation, but the company is comfortable with its current cost structure and expects to see operating leverage.

A：The company plans to unlock capacity as it scales by implementing high-volume take casting and adding additional conditioning capacity. This will incrementally increase volume all the way to the 500 MW target.

A：The company sees potential for other upgrade opportunities across its portfolio, as the decision to change the Godown repairs to the standard energy block applies to the entire fleet.

A：The company's platform is community-friendly technology that avoids Title IX issues, creates no noise pollution, is modular for efficient land use, and can leverage thermal energy for data center cooling. These factors contribute positively to data centers and the community reaction to the technology.

A：The regions that are focusing on a global market opportunity with an emphasis on data centers include the US and Europe. The company is supporting this trend by working with larger data center developers that have a significant European presence, focusing on delivering power needs in Europe, and addressing community-friendly aspects and environmental considerations.

A：The recent proposal size and pipeline growth have led to a ramp up in activity, enabling the company to engage more deeply with customers and submit larger proposals. This growth is attributed to the direct sales team focusing on data centers and AI factories, as well as the company's omnichannel approach, including a website presence and published materials that drive interest in their technology.

A：The company's business model targets product sales with an expectation to convert proposals into backlog, resulting in future product sales that are expected to range from 10% to 20% margin. The margin is higher if the company is not the EPC and lower if it is involved in the EPC process. Additionally, service backlog is also included, which are long-term agreements for operational services, typically ranging from 15 to 20 years, with significantly higher size than initial product sales.