Ed Woo

Ed Woo asked if Genasys has observed any changes in competition, such as new entrants, as interest in their products grows. He also questioned whether the company's enhanced reputation and market position translate into improved pricing power. Additionally, he sought confirmation that the overall cost and profitability expectations for the $75 million Puerto Rico project remain consistent.

Answer

CEO Richard Danforth stated that there has been no change in competition in software, hardware, or systems. Regarding pricing power, he explained that while the company can justify price increases for government customers based on cost and profitability improvements, they are subject to justification requirements. For competitive solicitations, pricing is determined by the bid strategy. Richard Danforth confirmed that the cost and overall profitability expectations for the Puerto Rico project remain the same.

Ed Wood inquired about NRx Pharmaceuticals' commercialization strategy for NRx 100 and NRx 101, specifically whether a dedicated sales force would be required for their potential approvals.

Answer

Matthew Duffy, Chief Business Officer, explained that NRx 100, a clinic-deployed drug likely with a REMS, would primarily require a medical science liaison function rather than traditional sales, which is within the company's capabilities. For NRx 101, targeting suicidal bipolar depression patients, a sales force of approximately 50 people would be needed to reach the 1,600 relevant prescribers, a scale also manageable by the company, though larger commercial partnerships are being considered.

Ed Wood inquired about NRx Pharmaceuticals' commercialization strategy for NRx 100 and NRx 101, particularly whether the company plans to build its own sales force for these distinct drugs, given their potential approval within the next year.

Answer

Matthew Duffy, Chief Business Officer, outlined that NRx 100, deployed in clinic settings, would require a medical science liaison function rather than a traditional sales force, which is within the company's launch capabilities. For NRx 101, targeting severe bipolar depression with suicidal ideation, he estimated a need for approximately 50 salespeople, also within their launch capabilities, but acknowledged significant interest from larger commercial partners.

Inquired about the valuations of precision psychiatry clinics, the availability of reasonably priced targets, and whether the company has considered building new clinics versus buying them.

Answer

The CEO explained that since there are not enough clinics that meet their ideal model, their strategy will be opportunistic, involving either acquiring and upgrading existing clinics or building new ones from scratch. He emphasized they would not acquire 'medspa' type facilities.

Ed Woo, Senior Research Analyst at Ascendiant Capital, requested clarification on Aytu BioPharma's operating expenses, specifically the pro forma $39 million figure, and the distribution pattern of the $10 million additional investment planned for the Exua launch over the fiscal year.

Answer

CFO Ryan Selhorn clarified that the pro forma annual operating expense is about $36.3 million, which is roughly $1,000 a month ongoing. He stated that a significant portion of the $10 million Exua launch investment, approximately 50%, is expected to be spent in Q2 (December quarter), with the remaining 50% distributed across Q3 and Q4, covering sales reps and marketing materials.

Inquired about the company's focus on enterprise opportunities versus federal, and whether there have been any shifts in customer budgets or sales cycles in either sector.

Answer

The CEO explained that while federal is a historical strength, their primary go-to-market for enterprise is through MSPs and MSSPs. He noted that sales cycles remain long, but there is strong customer interest in justifying cybersecurity spend and a growing focus on protecting OT (Operational Technology) environments, which represents a less crowded and promising market for Intrusion.

Ed Woo asked about the current cybersecurity spending environment and budget sentiment among CIOs, based on observations from the RSA conference.

Answer

The executive noted that the RSA conference feels more robust than ever, indicating strong interest and energy in cybersecurity. AI is a major topic. The company's technology remains competitive, and the threat landscape continues to drive demand for detection and defense solutions, suggesting a healthy spending environment.

Ed Woo of Ascendiant Capital Markets inquired about the impact of the federal DOGE (Department of Government Efficiency) program on Knightscope's focus on government clients and the potential effects of trade tariffs on operations.

Answer

Executive William Li explained that the DOGE program creates both challenges with personnel turnover and significant opportunities from the need for efficiency, estimating a $10 billion potential market. Regarding tariffs, Li, along with CFO Apoorv Dwivedi, acknowledged potential supply chain and pricing impacts but viewed them as not material, highlighting Knightscope's U.S.-based operations and the one-time nature of such costs within a subscription model.

Ed Woo from Ascendiant Capital questioned if the company was increasing its focus on products for short-sellers to capitalize on the down market. He also inquired about international growth opportunities and sought details on the types of futures to be added to the platform.

Answer

CEO Gust Kepler explained that while their marketing acknowledges the potential to profit in a down market, high volatility and option premiums still present challenges for their core user base of directional options traders. He noted that international user trends have remained stable across approximately 32 countries, with plans to add more exchanges in the future. Regarding the new futures product, Kepler stated they will launch with a specific set of top futures contracts, with more to be added over time.

Ed Woo from Ascendiant Capital asked if the economics for the company are improving with each new professional sports team partnership and inquired about the company's strategy for pursuing international sports teams.

Answer

CEO Rory Cutaia confirmed that the company is now past the initial phase of trading services for platform adoption and is beginning to 'turn up the economics' on new sports team deals. He highlighted that gaining league-wide approval from Major League Baseball Advanced Media was a significant milestone that opens the door to more teams. Regarding international expansion, Cutaia mentioned that they are in slow-moving discussions with teams in Europe and will announce any deals when finalized.

Ed Woo of Ascendiant Capital Markets inquired how the enrollment pace for Cohort 2 of the Pathway study compared to the company's initial expectations and whether the types of patient injuries enrolled were also in line with projections.

Answer

President and CEO Ian Massey confirmed that actual enrollment rates are closely aligning with the company's original projections. He also stated that the company has been reassured by the availability and interest from the targeted patient population (cervical, AIS B status), which matches their predictions and is encouraging for the therapy's regenerative potential.

Ed Woo from Ascendiant Capital inquired about the potential timing for interim results from the dry AMD study. He also asked for clarification on the company's cash runway and its plans for pursuing non-dilutive financing opportunities.

Answer

An Unidentified Company Representative stated there are no plans to release interim results for the blinded, fellow-eye controlled dry AMD study and confirmed the company has sufficient cash to fund activities for 'quite a while.' CEO Martin McGlynn elaborated that with advancing Phase II trials, the company is actively exploring non-dilutive financing to reduce reliance on capital markets, leveraging its growing human clinical database.