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DATE

Thursday, Aug. 20, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer - Krishna Vanka
  • Chief Financial Officer - Kevin S. Royal
  • Vice President of Sales for Material Handling - Stu Jacover

TAKEAWAYS

  • Q4 Revenue -- $8.2 million, representing a 25% increase from $6.6 million in the prior quarter.
  • Fiscal Year 2026 Revenue -- $42.1 million, decreasing from $66.4 million in the previous fiscal year.
  • Q4 GAAP Net Loss -- $2.3 million or $0.11 per share, narrowing from a $3.2 million loss in the third fiscal quarter.
  • Q4 Operating Expenses -- $4.4 million, down from $6.5 million in the fourth quarter of fiscal 2025.
  • Gross Margin Threshold -- $12 million to $14 million in quarterly revenue, identified by management as the level required to return to gross margins above 30%.
  • Hyster-Yale Forklift Certification -- Class I, II, and III models, which represented $3.5 billion in sales for the OEM partner in fiscal 2025.
  • Robotics Testing Deployment -- 70 units, utilizing standard UL-certified products for a global technology platform.
  • Robotics Product ASP -- $10,000, according to financial data provided by management during the call.
  • Q1 2027 Revenue Outlook -- $6 million to $7 million, anticipated by management to reflect near term volatility.
  • Q2 2027 Revenue Outlook -- $8 million to $9 million, representing an expected rebound in order activity.
  • Full Year 2026 Operating Expenses -- $19.2 million, decreasing from $26.8 million in the prior year.
  • SkyEMS 3.0 Productivity Gains -- 10% to 30% improvement in fleet uptime, delivered through new AI-powered platform enhancements.
  • Diagnostic Awareness Speed -- 15% to 40% faster identification of battery issues, enabled by the launch of SkyEMS 3.0.
  • Q4 Adjusted EBITDA -- negative $1.6 million, improving from negative $2.5 million in the third fiscal quarter.
  • End-of-Year Cash Balance -- $300,000 as of June 30, 2026.
  • Inventory Level -- $14.8 million, compared to $17.2 million at the end of fiscal 2025.
  • Line of Credit Balance -- $6.3 million, decreasing from $13.6 million as of June 30, 2025.
  • OEM Market Share -- 60% of the North American market, represented by the top four OEMs currently partnering with the company.
  • White Label Expansion -- 50% increase in annual order commitment from an existing white label OEM partner.
  • Restatement Costs -- $2.9 million, incurred in fiscal 2025 but absent in the fiscal 2026 results.
  • Q4 Gross Margin -- 27.4%, representing a 10 basis point improvement from 27.3% in the prior quarter.
  • FY2026 Gross Margin -- 30.2%, reflecting changes in product mix, a full year impact from tariffs, and lower volume leverage.

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RISKS

  • Vanka noted that the quarter's revenue was below historic levels "due to our most significant material handling customer, continuing to navigate its capital freeze."
  • Royal stated, "The year over year decline in gross profit as a percentage of revenue was largely due to changes in product mix, a full year impact from tariffs and a loss in operating leverage due to lower volumes resulting in higher unabsorbed labor and overhead."
  • Royal warned of near term margin pressure, stating he expects "a little bit of a degradation before the revenues pick back up" to the 30% range.

SUMMARY

Flux Power Holdings, Inc. (FLUX +15.53%) reported a sequential revenue increase for its fourth fiscal quarter, though year-over-year performance was impacted by a capital freeze at its largest customer and broader economic pressures. Management reported a 33% reduction in quarterly operating expenses and the launch of the AI-driven SkyEMS 3.0 platform to diversify revenue streams. The company is entering the robotics vertical and secured product certification from Hyster-Yale Material Handling, Inc. to expand its addressable material handling market.

  • CEO Vanka stated, "We are doing this in close collaboration with a very large global technology platform company," regarding the entry into the robotics market.
  • Vanka noted that 100% of ground service equipment batteries now ship with SkyEMS access and stated, "airline customers are actively using it."
  • The company appointed Stu Jacover as Vice President of Sales for Material Handling to build a direct enterprise sales engine alongside existing dealer channels.
  • Vanka reported that certification from Hyster-Yale for Class I, II, and III forklifts serves to "significantly expand our market share across the largest segments of the material handling industry."
  • Management indicated that gross margins are expected to return above 30% once the company achieves a quarterly revenue run rate between $12 million to $14 million.
  • Royal noted that the year-over-year decrease in operating expenses primarily reflects previous actions taken to reduce headcount and streamline the operating model.

INDUSTRY GLOSSARY

  • BMS: Battery Management System, a system that manages rechargeable batteries by protecting them from operating outside their safe operating area.
  • Class I, II, and III Forklifts: Industrial lift truck classifications covering electric motor rider trucks, electric motor narrow aisle trucks, and electric motor hand trucks.
  • GSE: Ground Support Equipment, equipment used at airports to support aircraft between flights.
  • NAID: National Association for Information Destruction, a certification for recycling partners specializing in secure data and material destruction.
  • OCPP: Open Charge Point Protocol, an open-source communication standard for electric vehicle charging stations and network software.
  • SkyEMS: A proprietary fleet intelligence software platform providing AI-powered diagnostics and predictive analytics for energy assets.

Full Conference Call Transcript

Operator: Good afternoon, and welcome to Flux Power's Fiscal Fourth Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. As a reminder, this conference call is being recorded today, 08/20/2026. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead. Good afternoon, and welcome to Flex Power's fifth fiscal fourth quarter and full year 2 thousand 26 earnings conference call. I am Leanne Sievers, president of Shelton Group. Flux Power's Investor Relations firm. Joining me today from FluxPower are Krishna Vanka, CEO Kevin S.

Royal, chief financial officer and Stu Jacover, vice president of sales for material handling. Before I turn the call over to Krishna, I would like to remind our listeners that during the course of this conference call, the company will provide financial guidance projections, comments and other forward looking statements regarding future market developments, the future financial performance of the company, new products or other matters. These statements are subject to risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically our 10-K, our most recent 10-Q, identify important risk factors that could cause actual results to differ materially from those contained in the forward looking statements.

Also, the company's press release and management statements during this conference call will include discussions of certain adjusted or non GAAP financial measures. These financial measures and related reconciliations are provided in the company's press release related current report on Form 8-Ks, which can be found in the Investor Relations section of FluxPower's website at www.fluxpower.com. For those of you unable to listen to the entire call at this time, recording will be available via webcast on the company's website. And now it is my pleasure to turn the call over to FluxPower's CEO, Krishna Vanka. Krishna, please go ahead.

Krishna Vanka: Thank you, Leanne, and thank you everyone for joining us on today's conference call. I am very pleased to report fourth quarter revenue increased 25% sequentially and even slightly better than the expectations conveyed on last quarter's call. We are encouraged by the improving order patterns we saw throughout the quarter across both of our ground service equipment and material handling business. On a year over year basis, the quarter was below our historic revenue level due to our most significant material handling customer, continuing to navigate its capital freeze as we conveyed previously. Our business has also been impacted by the broader economic disruptions related to tariffs and higher fuel prices.

I want to reiterate that our partnership with our significant customer remains strong, and we expect business with this valued customer to resume in the future. As mentioned on prior calls, we have been taking decisive actions over the past year to lower product and operating costs as well as improve operating efficiencies. We reduced operating expenses by 33% over the fourth quarter of fiscal 25 and a decrease of 28% when comparing full year 2026 versus 2025. These actions have included headcount reductions cost containment, and broader efficiency measures. We also continue to work aggressively to improve margins through near term supply chain optimization, vendor pricing negotiations, and the product redesign efforts.

Additionally, we have been closely evaluating all of our component costs and meeting with vendor partners in low cost regions. Also, this initiative will take time to implement, it should have a meaningful benefit to overall product cost over time. Another initiative I mentioned last quarter was optimizing our sales team and launching aggressive new marketing programs. These programs are aimed at diversifying our customer base so we are less dependent on any 1 customer. We are beginning to see positive results from new lead generation programs that have increased our customer activity. As a result of these marketing programs, we are also very excited to announce we entered a new and growing vertical robotics in the last quarter.

We are doing this in close collaboration with a very large global technology platform company. They already deployed more than 70 of our batteries for their robotics testing and are looking at full scale production starting in Q1 or Q2. I cannot wait to share more details soon. We also successfully added senior sales veterans to the team including a new VP of sales for material handling, Stu Jacover. Stu has more than 3 decades of dealer network, OEM, and national account leadership experience. I would now like to turn the call over to Stu to tell you more about himself and his initiatives aimed at accelerating growth across North America. Stu, please go ahead.

Stu Jacover: Thank you, Krishna, and thank you for the opportunity to introduce myself and talk about my primary objectives and our go forward strategy. I am certainly excited to be part of the FluxPower team. As Krishna had mentioned, I have spent the last 25 years in the material handling industry most recently as general manager at Mitsubishi Logisnets. And previously in various sales leadership roles including Toyota material handling. Over that time, I have built and led sales organizations across the industry and I have done it with a consistent focus on profitable market share growth.

Whether it was managing dealer networks or building out enterprise account strategies, my track record has been about identifying where the real growth opportunities are, and building the right team and process to capture them. that is exactly the lens I am bringing to FluxPower. Flux has built this business on a strong dealer sales network and that foundation will be further enhanced. Our dealer partners remain central to our go to market strategy. That said, I believe there is a significant opportunity to add a second growth engine. Throughout my career, I have spent a substantial amount of time calling directly on large enterprise and national accounts.

These are the big fleet operators who run hundreds or thousands of forklifts across multiple sites. I know how these organizations make purchasing decisions, I know the stakeholders involved. I have existing relationships with many of them. My plan is to leverage that experience and build a direct enterprise sales engine that runs alongside and complements our dealer channel. This will not be in competition but complementary too. That gives us a hybrid strategy with 2 ways to win business instead of 1. It positions Flux Power to go after large fleet opportunities directly with a tailored approach.

And I would not be as confident in this strategy if I did not believe in what we are selling. and Flux Power's products give us a real edge. 1 differentiator I am especially excited about is our end of life recycling program. This matters as a lot of our corporate customers have significant green and sustainability initiatives. This is an area where flux is ahead of the industry and not just working toward it. Flux has a documented robust program that utilizes a NAID, certified recycling partner specializing in lithium ion battery processing and a written take back guarantee.

This provides our customers a formal end of life agreement not just a verbal promise, so our customers know exactly what happens to their batteries at a nominal expense. We offer our customers multiple paths to being environmentally responsible, Depending on the condition, battery modules can go into second life uses like grid storage or emergency power. Components can also be refurbished to be utilized again. Or the unit goes to certified material recovery. Being able to walk a large enterprise fleet operator through an actual documented program with real path to recovery rather than an industry that is still figuring this out is a genuine differentiator in the conversation.

In addition to recycling, we back our product with best in class customer support during the life of the battery. When you are asking a large fleet operator to trust their operation to us, they need to know we will be there after the sale. Not just at the point of purchase. The combination of a strong sustainability program and dependable responsive support is exactly what gives me confidence in our ability to win and retain these larger accounts. As you can tell, I am very excited about FluxPower's product differentiation reputation in the industry, and opportunities that lie ahead for what we believe will be a very promising future.

We look forward to providing you with more updates in the coming quarters. And now I will turn the call back over to Krishna.

Krishna Vanka: Thank you, Stu. Once again, it is great having you on the team. Let me turn back to the other notable progress made during the last quarter. I will start with the positive developments made on our OEM partnership programs that our director, Brian McKenzie, discussed last quarter. First, 1 of our OEM white label customers increased their yearly order commitment by 50%. This is the first time we were able to get that commitment from a white label customer and serves as a strong validation of our OEM program success.

I am also very pleased today to announce that during the last quarter, Flex received official certification from Hyster-Yale Material Handling, Inc., a key OEM partner who is a global leader in lift truck manufacturing. This important certification is for all of the Hyster-Yale Class I, II and III forklifts. These 3 classes of forklifts represented $3.5 billion in high sales revenue during their fiscal year 2025. This represents a major growth opportunity for FluxPower as it significantly expand our market share across the largest segments of the material handling industry. Certification not only validates our technology, but also strengthens our credibility with OEMs and dealers while also reducing adoption barriers for large enterprise fleets.

We are now selling to the top 4 OEMs which account for more than 60% of the North American market. When combined with the direct enterprise sales strategies Stu outlined, this gives us multiple avenues to grow. Also, on June 30, we made 1 of our most significant platform leads in the company history with the launch of AI driven SkyEMS 3.0. This was not a minor update. But rather a fundamental redesign of how our customers manage and optimize their energy assets. This plays a key role in shaping FluxPower's competitive position. As many of you know, Flux has historically competed as a battery hardware manufacturer SkyEMS 3.0 enhances that equation.

It layers AI powered intelligence, predictive analytics, and a fully customizable dashboard experience on top of every battery we deploy. It turns fleet data into a personalized command center. This software driven differentiation is difficult for hardware only vendors to replicate quickly and also strengthens our moat in the market. As I mentioned previously, 100% of our GFC batteries now come with SkyEMS access, and airline customers are actively using it. We look forward to making it part of every material handling battery sale as well. Why does all this matter for FluxPower? First, it deepens our engagements with customers and increases customer retention. Once a fleet operates on SkyEMS, the platform becomes embedded in their daily operations.

Next, it also expands our value delivered beyond the battery sale is a foundation for future recurring software attached revenue. And finally, it positions FluxPower as a technology company, not just as a lithium battery manufacturer. And also for our customers, it provides 15% to 40% faster time to awareness on battery issues. So operators catch problems before they become downtime issues. Fleet uptime is improved 10% to 30%, a direct measurable productivity gain. And it is built on more than 90 platform enhancements delivered in just the past 6 months, showing sustained execution velocity not just a 1-off release. Overall, reception in the market has been strong since the launch. Reinforcing this platform meets a real market need.

As we look to fiscal 27, the flux team remains intently focused on driving future growth and executing on our 5 strategic initiatives that include profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software to generate recurring revenue streams. With that, I will now turn the call over to our CFO, Kevin Royal, who will review our fourth quarter and full year financial results in more detail.

Operator: Kevin, please go ahead.

Kevin S. Royal: Good afternoon, everyone. Revenue for the fourth fiscal quarter of 2026 was $8.2 million up from $6.6 million in the prior quarter and compared to $16.7 million in the same quarter a year ago. Revenue for the full year 2026 was $42.1 million compared to $66.4 million in 2025. Gross margin for the fourth fiscal quarter of 2026 was 27.4%, compared to 27.3% in the prior quarter, and 34.5% in the fourth quarter of 2025. Gross margin for the full year 2026 was 30.2% compared to 32.7% in 2025.

The year over year decline in gross profit as a percentage of revenue was largely due to changes in product mix, a full year impact from tariffs and a loss in operating leverage due to lower volumes resulting in higher unabsorbed labor and overhead. Operating expenses for the fourth quarter were $4.4 million, a decrease from $4.8 million in the prior quarter, and $6.5 million in the same quarter a year ago. Full year 2026 operating expenses were $19.2 million, compared to $26.8 million in the prior year.

The year over year decrease in operating expenses primarily reflects the benefit of our previous actions to reduce headcount and streamline the operating model, as well as the fiscal year 2025 included cost of $2.9 million associated with the restatement of previously issued financial statements. Net loss for the fourth quarter was $2.3 million or $0.01 per share, compared to a net loss of $3.2 million or $0.15 per share in the prior quarter and a net loss of $1.2 million or $0.07 per share in the fourth fiscal quarter of 2025.

Net loss for the full year 2026 was $7.4 million or $0.38 per share, compared to net loss of $6.7 million or $0.40 per share in the prior year. On a non GAAP basis, excluding the above referenced stock based compensation costs, fourth quarter net loss was $2.1 million or $0.10 per share, compared to a net loss of $2.9 million or $0.14 per share in the same quarter and a net loss of $100 thousand or $0.01 per share in the same quarter a year ago.

Which also excluded the above reference restatement cost The full year 2026 non GAAP net loss was $6.5 million or $0.33 per share compared to net loss of $2.8 million or $0.17 per share in 2025, which also excluded restatement cost. Adjusted EBITDA for the fourth quarter was negative $1.6 million, compared to negative $2.5 million in the prior quarter and a positive adjusted EBITDA of $500 thousand in the prior year period. Adjusted EBITDA for the full year 2026 was negative $4.5 million, compared to negative $100 thousand in 2025. Turning to the balance sheet. We ended the quarter with cash and cash equivalents of $300 thousand compared to $400 thousand in the prior quarter.

Before turning the call back over to Krishna, I want to provide some insight around our near term revenue expectations. For the first quarter of 2027, we are currently expecting revenue to be down in the range of $6 million to $7 million However, expect the second fiscal quarter revenue to rebound and be in the range of $8 million to $9 million I will now hand the call over to Krishna for closing comments before opening it up to your questions. Krishna?

Krishna Vanka: Thank you, Kevin. In conclusion, the company has faced a number of headwinds during my past 18 months as a CEO. This, in turn, led us to reassess our business priorities and implement changes that we expect to benefit us in the fiscal year 2027 and beyond. We have the right team in place to execute on our sales and marketing initiatives with multiple growth engines to drive a more diversified customer base and a new vertical. With our lower cost base, we are well positioned to achieve renewed growth and profit in the future as broader economic conditions improve.

We look forward to the opportunities that lie ahead and remain confident in our ability to deliver long term value for our shareholders. With that, let's open the call to questions. Operator?

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. We will pause momentarily to assemble our roster. First question today is from Sameer Joshi with H. C. Wainwright. Please go ahead.

Sameer Joshi: Hey. Good afternoon, everyone, Krishna. Kevin, Stu, thanks for taking my questions. My first question is about first, congratulations on the nice quarter and the SkyEMS launch as well. The question is about the SkyEMS 3.0 launch. Do you have sort of targeted pipeline for this already that you are targeting? Do you have existing customers that would deploy this alongside your already installed base how should we look at it from a revenue standpoint over the next 2, 3, 4 quarters?

Krishna Vanka: Sameer, thanks for the great question. And thanks for your compliments. Yes, so SkyEMS 3.0, as I mentioned, is built from ground up with AI embedded in it. And it is not just managing the battery analytics. it is also managing the entire energy metrics. So this includes some charger data that can potentially come through OCPP type protocols. So it is really gathering all the data that fleet needs for managing their energy efficiently. So this is the first time we actually did this type of connection.

At this point, it is being deployed, as I mentioned again, with the airline customers All of our batteries since quarter or quarter and a half are going with SkyEMS, as a default option for airlines. And, we have also reached out to our material handling customers few significant ones, and having them start using this new SkyEMS platform. So as it stands today, our intent is to obviously deploy this 100% with both the verticals. And as we explore these new verticals including the robotics, we see a potential of having something like this for our customers to embed and work through the SkyEMS for their energy decisions.

At this point, that is our So this is adding on top of, you know, our hardware sales. Not a stand alone software product yet.

Sameer Joshi: Understood. Got it. Thanks for that. And you did mention robotics. My next question was about that. Do you have like, plan, or at least, in terms of the size of the market that you could access for robotics? How should we see it shaping as a component of your revenues in fiscal 27 and beyond?

Krishna Vanka: Yep. So the opportunity we are working on is a very significant 1. it is with 1 big technology company. That is on the forefront of using robotics. We are very thrilled about it. And as I mentioned, we deployed or we are deploying and testing as we speak. About 70 batteries with them to start with. If everything goes well and the testing goes well and it goes into production, this is going to be 1 of our marquee customers, and there is a good potential that they will have a significant revenue coming up in the next couple of years. You know, not just for 1 quarter or 2 quarters.

So we are looking holistically, you know, for multiple year contracts and deployments. I would love to speak more with you as soon as the test is done, and we know that we are deploying at scale. Yep. Yeah. No. that is a that is a big emerging market, and I am sure you are all excited about it for it. Just shifting, I just have 2 more questions. I think there was a global cargo airliner that you mentioned last call, you had received around $1.2 million order from it. Is there follow on or, like, have those been delivered, and is there going to be a follow on order or how do you see that customer contributing?

They have been delivered, and Stu. Why do not you talk about the follow on orders?

Stu Jacover: Yeah. Yeah. Sure. Thank you. Thank you for the question. Yes, we have delivered the initial order and installment of product We are actively involved in several other open projects. However, at this time, those are not, secure, but we are looking very favorably on those, additional opportunities.

Sameer Joshi: Understood. And the last question, I think I should start with, again, complementing the team on the cost cuts over the last year. The it is really good to see, the nice tightening of the belt there. In terms of gross margins, though, sequentially, the revenues were up almost 25%, 20-plus percent. But the gross margin improvement was just, like, a 10-basis-point improvement. Sequentially. How when and at what revenue levels should we see a meaningful moment upside moment on the gross margin?

Kevin S. Royal: Yeah. I think you know, we will see improvement when we are above the $12 million quarterly run rate. So between, you know, 12 and 14, we would expect to get up above 30% once again.

Sameer Joshi: Understood. that is all I have. I will step back in queue. Thanks for answering my questions.

Operator: The next question is from Robert Brown with Lake Street Capital Markets. Please go ahead.

Robert Brown: Good afternoon. First on the on your largest customer, the pause. I know you gave some more cadence or some revenue cadence outlook How is your visibility with that large customer in terms of the recovery of order activity?

Krishna Vanka: Yeah. Robert, thanks for the question. We are in close communication, as I mentioned, you know, constant communication. Trying to get updates, As far as we heard, they are now working on planning for the next you know, fiscal or the calendar year, I would say. So it is it is in good progress. And we are literally awaiting. We are seeing the positive sign. We are awaiting to hear some good news pretty soon. Okay. Excellent. And then on the on entering the robotics market, are these, battery systems, a standard product, or are you designing a new configuration for that market? Yeah. The batteries we deployed are 1 of our UL certified standard offerings.

So it was a great you know, use case for us to be able to find new verticals for our existing products. That said, we are very open to find new in this industry, and we may be able to accelerate the product road map as needed. Okay.

Robert Brown: Okay. Great. Thank you so much. I will turn it over.

Operator: The next question is from Craig Irwin with ROTH Capital Partners. Please go ahead.

Craig Irwin: Good evening and thanks for taking my questions. So Krishna, we have been hearing good things about potential demand from the airport ground equipment market. Can you maybe update us on your conversations with customers there? I know you have a very wide sales funnel. And when they do start buying again, you know, we would expect an uptick. Is this something fair for us to expect at Flux maybe in the next couple of quarters?

Krishna Vanka: So the airline industry, particularly, as we mentioned, has been hit a little bit because of the fuel cost. Right, in the last few quarters, again, because of the wars and whatnot. But we have just started seeing through our partner some good progress, some, you know, renewed interest to start buying the equipment again, which we see it as a positive sign. And yeah, I would say we would you know, all the signals are pointing to, you know, more airline business in the next 2 to 3 quarters. To pick up.

Craig Irwin: Understood. Understood. So then the next question I have is around gross margins. So you know, are there any changes to the long term target still think you can get well above 30%? And, you know, with the revenue contraction in the September quarter, and just modest recovery in the December quarter, Should we expect similar margins to what you had in the fourth quarter? Or is possible we see modest margin depreciation from that level? Before the revenue starts to tick back up in the back end of the year.

Kevin S. Royal: Yeah. I think the latter part of your observation is what we will see is you know, a little bit of a degradation before the revenues pick back up we get up above 30% and into that mid thirties range.

Craig Irwin: Okay. Excellent. And then for us to understand the materiality of the robotics revenue, you said you are working on delivery of 70 packs. I think you would said you would already delivered 30. Can you remind us which product, which UL certified product you are supplying in there? And, you know, roughly, what a fair or MSRP a fair price to use sort of as we as we do back of the envelope math to look at the materiality for the September and December quarters.

Kevin S. Royal: Yeah. Craig, so the model is our c 48. And a good ASP to use, a good round ASP would be $10 thousand per battery.

Craig Irwin: Excellent. And then if you were to scope out the long term potential with this customer, 70 is not a bad number to start with. it is a great number. Do they have the opportunity to buy in the hundreds? Thousands, many thousands, tens of thousands? I mean, how would you scope out this individual customer?

Kevin S. Royal: Yeah. I would I would say that, you know, these are batteries that we have provided for, you know, prototype build and testing. So that when they go to scale, you know, it will be you know, hundreds per year.

Craig Irwin: Understood. Well, congratulations on the progress. I will hop back in the queue.

Krishna Vanka: Thank you. Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Krishna Vanka for any closing remarks.

Krishna Vanka: Thank you again for joining today's call. 1 final note, we will be in New York on September 10, 11, 14 and 15 with opportunities to meet with investors at the Lake Street and H.C. Wainwright conferences as well as an additional day of nonconference meetings. If you are interested in meeting with us while we are in the city, please reach out to Leanne Sievers at Shelton Group to schedule a time. I really look forward to some good discussions. Operator, you may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.