Amplitech Group, Inc.

Good day, ladies and gentlemen, and welcome to AmpliTech Group's quarterly investor update call, where the company will discuss its second quarter 2025 financial results. At this time, all participants are in listen-only mode. Later, we'll conduct a question and answer session, and instructions will be given at that time. As a reminder, today's conference is being recorded. I would now like to turn the call over to AmpliTech's COO, Jorge Flores.

Thank you for joining today's call to review the progress of AmpliTech's growth initiatives. and financial results, and to answer investors' questions. On the call today are AmpliTex founder and CEO, CTO, Mr. Fawad Mahbub, the company's CFO, Luis Sanfrancelo, and the company's COO, Jorge Flores. Following initial management comments, we will open the call to investors' questions. An archived replay of today's call will be posted to the investors' relations section of AmpliTex corporate websites, This call is taking place on Friday, November 14, 2025. Remarks that follow and answers to questions may include statements that the company believes to be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include words such as anticipate, believe, expect, or words of similar importance. Likewise, statements that describe future plans, objectives, or goals are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to be materially different than expected. Such risks include, among others, matters that the company has described in its press releases and in its filings with the Securities and Exchange Commission. Except as described in these filings, the company disclaims any obligation to update forward-looking statements which are made as of today's date. With that, let me turn the call over to our CEO, CTO, Mr. Fawamak Bo.

Ladies and gentlemen, good morning. Thank you for joining our Q3 2025 review call. Today, we'll reflect on our record performance in the third quarter of 2025 and the nine-month period ending September 30th, 2025. We'll take the opportunity to discuss the company's growth outlook, market opportunities, and provide additional financial guidance. We'll start with the Q3 2025 highlights and strategic progress. Quarterly revenue was 6.09 million, 115% increase compared to 2.83 million in Q3 2024. Growth profit more than doubled to 2.96 million, representing a 48.6% growth margin, up from 47.5% in the prior year period, up about 40% from Q2 2025 growth margin. EBITDA positive of nearly $200,000. reflecting substantial improvement in operating performance and margin expansion. Net loss significantly narrowed to $188,000 compared to a net loss of $1.19 million in Q3 2024. Cash, cash equivalents and accounts receivable of nearly $12 million, with zero long-term debt and working capital of $14 million as of September 30, 2025. Now the nine-month highlights. year-to-date 2025. Overall, nine months' company's record revenue surged 171% year-to-date to $20.7 million compared to $7.7 million in the same period last year. Net loss reduced by nearly 50%, improving from $7.4 million in 2024 to $3.8 million in 2025. The growth driven by the successful integration of Appletech 5G O-RAN technology and strong momentum in low-noise amplifiers, low-noise blocks, and 5G infrastructure systems. This is not just 5G O-RAN. It's true 5G, and we are 5G. Continued investment in R&D, up 60%, supporting the new product development in MIMO, 64T, 64R O-RAN radios, private 5G network systems, and cryogenic amplifier platforms for quantum applications. Now, this isn't just random R&D. It's strategically focused on what the world needs, billion and trillion dollar markets. Now, operational and financial highlights. Integration of ORAN IP portfolio positions AmpliTech as a U.S.-based vertically integrated supplier for next-generation open-ramp 5G radios and private network deployment. Our third quarter shows to be an EBITDA-positive quarter achieved through disciplined expense control, operational efficiency, and growth in high-margin segments. This is a clear signal we are turning the corner and getting close to achieving profitability. Price offering announced. Earlier, it's an above-market price, shareholder-friendly rights offering, priced at $4 per unit, providing growth capital for scaling O-RAN product lines and expanding domestic production. We're going to go deeper into that a little bit later. But now, I'll give some outlook and forward guidance. The company increased revenue guidance to at least $25 million for fiscal year 2025. representing 160% year-over-year increase over fiscal year 2024, beating discrete estimates. We anticipate double-digit growth margins in Q4 2025 and 2026. As production costs normalize, one-time costs are reduced, and higher margins follow on business ramps up. We project positive cash flow from operations and profitability to be achieved in fiscal year 2026, assuming continuation of current order pace and margin recovery. Company expects to receive follow-on orders from both publicly announced LOIs imminently, as well as orders from new customers in 2026. Given continuation of the current order page and based on forecast information received by the company, fiscal year 2026 revenue will be at least $50 million, effectively doubling that of projected record fiscal year 2025 of at least 25 million. With you've all said, I'd like to focus on our current rights offering efforts, because I'm sure many people are confused. ECHOTEC has an effective form S3 based perspective perspectives from which it intends to offer these securities registered with the Securities and Exchange Commission for a proposed rights offering in which it plans to distribute to A, stockholders, and B, certain warrant holders, two transferable unit rights to purchase up to the maximum of 8 million units at $4 per unit. Each unit will consist of one share of common stock, the common share, and two short-term rights to purchase additional common shares. These are rights, short-term rights, not warrants. Under the rights offering, each stockholder and certain warrant holders, as of the record date, will receive as a dividend at no charge two unit rights for each common share, each common share subject to a warrant owned on the record date. The distribution of the unit rights will occur on or around the record date. The record date for the distribution of the unit rights, the expiration date for the unit rights, and related short-term rights and related pricing information will be included in the final prospectus. Holders who fully exercise their unit rights will be entitled to oversubscribe for additional units, if available, that are not purchased by other right holders, subject to potential pro rata allocation of those oversubscription units, for which they subscribe in proportion to the total number of oversubscription units. Now that sounds very complicated, but you can get the FWP that has been published publicly to get all the details. The company is aiming for 25-30% annual revenue growth through 2030. This target is mainly driven and based on our O-RAN 5G LOIs with two different customers. These LOIs, while not binding, are the result of months of technical meetings and our involvement as what is known as the industry of POCs, or proof of concept. With this said, there's a predetermined price set up with these minimum quantities and specific delivery requirements set in place already, which have been supported by receiving forecasts from both customers. We're executing on a visible pipeline, early repeat orders, and capacity plans to support tens of thousands of radios over time. As we scale, we expect operating leverage, better purchasing, tighter manufacturing cycles, which will contribute to lift growth margins. Potentially 25%, 35%, 30% isn't a moonshot. It's what happens when a validated product line meets a secular upgrade cycle with a differentiated orange 5G supplier. Companies' rights offering provides our loyal investors choice, fairness, and alignment. In choice, a rights offering lets every existing shareholder decide if they want to maintain or increase their ownership on similar terms. No one's boxed out by a collective private deal. Everyone has access. Fairness is pro-rata by design. If you participate, you can offset dilution. If you don't, you're making conscious portfolio decisions, not suffering because we raise capital with a small group. Please take note, the rights are transferable. Holders can also choose to sell their rights in the market, as we do expect market makers will create a market for them to be traded. So again, not just fairness, but flexibility. Alignment. We picked this structure to strengthen the balance sheet without loading the company with expensive debt or entering into toxic financing transactions. It supports growth while respecting our value of long-term shareholders. It also sends a clear signal. We're raising capital to fund concrete opportunities, production, inventory turns, certifications, and go-to-market. We are not raising capital to flood holes. Bottom line, the right field gives us our shareholders agency and keeps us aligned as we step into larger orders and programs. We're inviting our owners to come with us on the next leg of our growth on the same terms. The company will use the proceeds as a high-return, near-term growth lever. There are five levers. Number one, scale production and working capital. Fund inventory for committed and forecasted order. Shorten lead time and secure long lead components. The goal is faster order to cash and capacity to fulfill multi-site rollouts without bottlenecks. Number two, certification and market access. Complete these certifications and who extends certifications like CE and ISED. Some are operator-specific. The field trials and interoperability testing. Each certification stands expands our addressable market and removes friction for large buyers. Number three, product roadmap, encryption and software. Advanced next-gen radios and RF front-ends add AI and RIC adjacent features, improve manageability and harden security. We also have a proprietary encryption for our network. It's hardware-based, not firmware-based. Big difference, which we want to incorporate across our entire O-RAN 5G product line. These additional products and features will lift performance and margins and create upsell paths across our installed base. These are valuable differentiators for us. We are not a me-too company. We have never been. Number four, go-to market expansion. The strategy is to add sales, engineering, carrier enterprise channel partners, and targeted international presence where trusted, highly secured OEM 5G has become a mandate. We all know how important security is, and we're going to the next step, incorporating this into our networks. This accelerates deal velocity and conversions. And finally, number five, strategic flexibility. It keeps the balance sheet strong so we can pursue select tuck-ins, joint ventures, or capacity investments when they're clearly accretive. We're disciplined about ROI. Dollars go where they unlock revenue, improve growth margin, and reduce cycle time. That's how this raise translates into 25% to 30% growth trajectory. More importantly, durable value creation. In concluding, valued shareholders, we are firmly looking ahead with our company having a record fiscal year 2025, in which we expect to nearly triple the sales achieved in fiscal year 2024. The major milestones for the company. We have expectations of receiving additional orders to continue funding our LOIs with a healthy balance sheet, zero long-term debt, and expanding portfolio of proprietary 5G and satellite technologies. We also have special cryogenic amplifiers to serve the growing needs of the quantum computing market, along with O-RAN technology to support artificial intelligence and global 5G product certifications now in place. AmpliTech is now positioned to deliver successive quarters of growth, enhanced shareholder value, and a significantly stronger IT valuation in 2046 and beyond. Thank you for continued support. We will now open the call for questions. Operator, please proceed.

Okay, thank you. We will now move on to Q&A. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad, and the confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants that are using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Once again, that's Star 1 to ask a question. We'll pause a moment to assemble a queue. Thank you.

Thank you.

Our first question comes from the line of Vishal Mishra with Bard Associates. Please proceed with your question.

Good morning, Kavad. Good morning. So I heard you right, which is that you do expect these rights to be traded when they're distributed, correct? Correct. That's great. Thanks. And second question, this is great momentum. Congratulations. Do we – I know I see double-digit growth margins, or do we have any more, like as you scale – Like, and you also said that the gross, like, the margins, the quantities have been sort of solidified in the contract as you've been working on the POC. Do we know more, do we have more color on that? It's like those margins which has been in the, been agreed upon are like in, like the gross margin, like in the 20s, 30s, 40s, or that's not something you can disclose?

Well, yes. Hello, this is George, our CEO for AmpliTech Group. I'm going to be taking on that answer. We do have a mixed list of ore and 5G products, and every single one of them carries a different gross margin. All we can say right now, though, and also due to competitive nature, is that we are not going to be able to disclose a specific gross margin information on our products due to competitive nature, of course. But that's why we are saying that at least we're going to be able to achieve double-digit gross margins on every of our products right now. Okay.

Thank you, Jorge. So I know historically you've been close to, you know, 30, 40. Is that something historically you'll be, or like because these are new products, they'll be lower, higher, or too difficult to say?

Well, as you could see from our results in Q2 in which we had a lot of one-time cost drivers, we have recovered very handsomely in Q3 with over 40% gross margins. So we are, of course, going to keep allocating capital to improve on our margins. Sometimes we might like to go into a higher configuration of molding equipment and fixturing to be able to drive the cost down on every single item used in our radios. So we do expect, though, that we're going to have, as I said before, though, at least, you know, like gross margins in double digits.

Okay. Thank you, Jorge. That's it for me. Thank you. As a reminder, if you'd like to ask a question, you may press star 1 from your telephone keypad. Thank you. This concludes the Q&A session. I'll turn the call back to Fawad McBool for closing remarks.

Thank you. If you want, please, you may proceed with closing remarks. Okay.

Operator, thank you. Operator, thank you everyone who enjoyed today's call to hear about progress. We made the plan. We have to further our company's mission of providing the communication systems of tomorrow today. We look forward to updating you further on our full year financial results call next year. Until then, please contact us directly should you have any questions or wish to schedule a call with management. Our investor relations team can be reached at the contact information listed at the bottom of our press release. Thank you and be well.

Today's conference call is now concluded. Thank you and you may now disconnect your lines.