Good day and welcome to the AmpliTech Third Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal in the conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Chief Operating Officer, and Jorge Flores, Chief Operating Officer. Please note that this event is being recorded. I would now like to turn the conference over to Chief Operating Officer, Jorge Flores. Please go ahead.

Thank you, Operator. Welcome to Amplitech Group Third Quarter Fiscal 2026 Financial Results Conference Call. Today is Thursday, November 12, 2026. Earlier today, we issued our Third Quarter Earnings Release, which reports our results for the three and nine months ended September 30, 2026, along with our operational progress and updated full year outlook. Following our prepared comments, the operator will open the lines for the live question and answer session. Our replay and transcripts of today's call are expected to be made available through our corporate website when available. Before we begin, I want to remind everyone that the statements made during this call, including answers to questions, may constitute forward-looking statements within the meaning of applicable federal securities laws These include statements regarding future revenue, anticipated shipments, production readiness, backlog conversion, customer deployments, margins, operating performance, liquidity, and market opportunities. Forward-looking statements reflect current expectations and are not guarantees of future results. Actual performance may differ materially because of risks, including changes in customer schedules and demand, order deferrals or cancellations, Production and Supply Chain Constraints, Customer Qualification and Acceptance, Geopolitical Developments, Export Control, and Other Regulatory Requirements, and Risks described in our filings with the Securities and Exchange Commission. All forward-looking statements speak only as of today, and we undertake no obligation to update them except as required by law. We encourage everyone to review the full safe hardware language in today's early release and our SEC filings. With that, I will turn over the call to our founder and chief executive officer, Mr. Fawad Maqbool.

Thank you, Jorge. Thank you all of our shareholders, analysts, and other participants for joining us. Our third quarter tells us two very important stories. First, we continue to advance the business through year-over-year revenue growth, meaningful expansion in our O-RAN 5G and spectrum divisions, and an improvement in gross margin from the second quarter. Second, the timing of large 5G deployments and manufacturing execution has not matched the shipment schedules that originally supported our full-year revenue expectations. We want to address both of these realities clearly today. We also continue to see significant commercial activity. As previously announced, during the third quarter, we received more than $17 million in customer purchase orders including follow-on orders under existing O-RAN radio programs. In October, bookings were nearly 25 million, a record month for our company. Following the announced orders in October, our previously reported backlog exceeded $52 million, also a new company record. One of the most important developments was the $21.7 million follow-on purchase order announced on October 20th for 5G O-RAN radio supporting an Asian mobile Network Operator Program. There was confusion earlier on this, but we received almost half of that original $78 million LOI, which shows dedication to that program by our customer. Cumulative orders under that program reached approximately $34 million. So separately, we announced a $1.03 million follow-on order for low-noise amplifiers from a Fortune 1000 satellite communications customer. So orders, repeat orders in segments is happening on a regular basis, and it's increasing as we go forward. Earlier in October, we reported that more than 3,000 AmpliTech radio units had been deployed in support of a North American mobile network operator program. These deployments are tangible indicators of commercial activity. while the timing of future deliveries remains tied to each customer's rollout plan. After quarter end, we also completed a dedicated production line and reached production-ready status with initial shipments expected during the fourth quarter. On October 27th, we announced that our 5G medium-power radio unit, NPRU, demonstrated interoperability with Okudu, O-C-U-D-U, which is an open-source software platform for 5G wireless networks supported by the Linux Foundation. This happens to be a very important part of defense and military applications. It provides software that helps control how 5G radios communicate with mobile devices and the broader telecommunications network. This creates another software environment in which prospective customers can evaluate our radio technology. In addition, we successfully completed the qualification and onboarding requirements of a major telecommunications infrastructure provider and became an approved vendor of their very selective approved vendor list. This is an important commercial milestone for our 5G O-RAN platforms as it enables us to pursue large opportunities with this provider. It's only the beginning. Our work spans O-RAN radio systems, RF microwave components, semiconductor distribution, mimic design and low-noise amplifier technologies used across telecommunications, satellite, defense, space, and quantum-related applications. That's a lot. We are continuing to invest in product readiness, engineering, and manufacturing infrastructure to support the larger opportunities we are pursuing. With such a comprehensive and diversified portfolio of innovative products strategically aligned with some of the fastest and most transformative technologies in the world, One might reasonably ask why AmpliTech is not yet more widely recognized across the industry. That is precisely one of the reasons we have increased our investment in marketing, brand awareness, and strategic customer engagement. Our products alone are helping us push us to the top, but we need to have more market awareness. We believe these initiatives will significantly expand AmpliTech's visibility among major industry players strengthen our competitive positioning and create additional opportunities to convert customer interest into meaningful bookings and revenue in the coming quarters. This has slowly been happening, but it will become more evident as we proceed the rest of the year and into next year. Our approach to innovation has been deliberate, targeted, and highly strategic. Rather than pursuing technology development for its own sake, we have focused our resources on advanced wireless and connectivity solutions that address Critical market needs today and are positioned to remain in strong demand for years to come. Building an organization with a robust technology portfolio, differentiated intellectual property, scalable operational capabilities, and a sustainable pipeline of growth opportunities requires considerable time, investment, and disciplined execution. This is exactly what we have been working toward over the past several years. It may not seem evident, but this is what we have been announcing over the last several personalities. Our strategy has never been centered on achieving immediate profitability. We have never said that at the expense of long-term growth. Instead, we have consistently invested in building the technological foundation, industry relationships, certifications, strategic partnerships, and operational infrastructure necessary to support to sustainable revenue growth and ultimately drive consistent profitability. Year after year, we have announced meaningful milestones that demonstrate measurable progress toward these objectives and continue to strengthen Amplitech's presence and credibility with the global wireless communications industry. I'm proud of what our team has accomplished and believe we are now entering one of the most important phases of our strategic journey. that transition from years of technology development, infrastructure investment, and market positioning toward commercial execution, revenue expansion, and improved financial performance. That's the key, improved financial performance. While the timing of customer deployments and revenue recognition remains subject to various factors, which we'll explain as we go on, We believe the foundation we have established positions Amphitech to demonstrate increasingly tangible results in the coming quarters. We are no longer simply building the foundation for growth. We are increasingly focused on converting that foundation into measurable financial results and sustainable shareholder value. I'd like to thank all our faithful shareholders for their continued patience throughout this journey. I also want to speak directly about our revenue outlook. We previously projected $50 million in revenue for 2026 and withdrew that target in August. As today's press release makes clear, we will not achieve that original target. Based on the customer deployment, schedules, production plans, and anticipated shipments available to us today, we now expect full-year 2026 revenue of at least $28 million. The gap between our original outlook and our current expectations primarily reflects supply chain constraints, delays in technology transfers, extended customer evaluations, global geopolitical developments, and customer-directed deployment changes, including among international mobile network operators. At the time we established our earlier outlook, we relied in part on customer-provided shipment forecasts that subsequently moved. In addition, important backlog awards came later in the year than we had expected. Applying the lessons learned throughout 2026, the company made the decision that beginning with fiscal year 2027, AmpliTech will no longer provide formal full-year revenue guidance. Our decision reflects the nature of the industry in which we operate, where revenue recognition can be significantly influenced by factors beyond our control. These include customer-directed deployment, postponements, global supply chain constraints, and the availability of critical electronic components, some of which are experiencing increased demand due to the rapid expansion of AI-driven data centers and related infrastructure. This is not only in our industry, but in every industry. The AI-related chips and components are getting more and more expensive, and the deliveries are being pushed down. So it did affect us. As we have experienced this year, even when customer demand is strong and purchase orders are secured, the timing of shipments and revenue recognition can shift considerably due to circumstances outside our direct control. Rather than provide annual revenue projections that may not accurately reflect the timing of customer deployments, we believe shareholders will be better served by our continued transparency regarding confirmed purchase orders, backlog, production milestones, Shippments, and Actual Financial Performance. This decision does not change our confidence in Appalachic's long-term growth opportunities or our commitment to delivering sustainable shareholder value. The customer orders, production capabilities, and relationships we have announced provide a foundation for our work in 2027. Our priority is to convert orders into shipments, complete customer acceptance where required, improve operating efficiency and build sustainable performance. We are not treating backlog as a substitute for delivering results. With that, I will ask Louisa to review our third quarter financial performance and financial position in more detail.

Thank you, Fawad, and good afternoon, everyone. For the three months ended September 30th, 2026, AmpliTech recorded total revenues of $6.58 million. compared with 6.09 million in the third quarter of 2025, representing year-over-year growth of 8%. Spectrum Semiconductor Materials distribution revenue increased 36.4% year-over-year to 2.89 million. Gross margin improved sequentially to 34.2%. compared with 27.9% in the second quarter, an improvement of approximately 6.3 percentage points with gross profit for the quarter to be 2.25 million. Looking at the first nine months of the year, gross profit increased 41.1% to 7.07 million and gross margin reached 35.3% compared with 24.2% for the first nine months of last year. We believe these results illustrate the value of our evolving products and customer mix, even as quarterly margins can vary based on what ships in any particular period. Manufacturing and engineering segment revenue was 3.70 million compared to 3.98 million in the same quarter last year. Selling general and administrative expense was $3.38 million, compared with $2.48 million in the prior year quarter. The increase primarily reflects higher corporate costs, including legal fees and stock-based compensation, as well as increased marketing, business development, cybersecurity, and information technology security initiatives. Research and development expense was $860,000 compared to $700,000 in the third quarter of 2025. This included approximately $440,000 of 5G-related activity and approximately $420,000 of MIMIC design activity. The third quarter net loss was $1.89 million, or $0.07 per basic and diluted share. that compares with a net loss of approximately $3.09 million in the second quarter of 2026, reflecting a sequential narrowing of the quarterly loss. For the first nine months of 2026, total revenue was $20 million. Gross profit increased to 41.1% year-over-year to $7.07 million from $5.01 million, while gross margin increased to 35.3%, from 24.2% in the comparable period of 2025. The nine-month net loss is $6.50 million. This reflects the higher operating expenses and continued investment in technology development and commercialization as we prepare our products and production infrastructure for anticipated larger scale opportunities. As of September 30th, 2026, we held $19.48 million in cash and cash equivalents and $10.79 million in marketable securities for a combined total of approximately $30.27 million. Total current assets were $49.25 million, working capital was approximately $42.14 million, and our current ratio was approximately 6.93. Total assets were $76.13 million. Total stockholders' equity was $65.72 million, compared with $51.48 million of total assets and $32.86 million of stockholders' equity at December 31st, 2025. The improved liquidity position primarily reflects equity financing completed during 2026, including approximately 20 points won $1 million in net proceeds from the July closing of the Series A rights. Net cash used in operating activities was $8.48 million for the first time marked for 2026. Based on our existing cash, marketable securities, working capital, and current forecast, management believes we can meet normal operating obligations and planned capital requirements for at least the next 12 months. We continue to monitor spending, working capital, and capital allocation as we execute our customer program. That concludes my financial review. I will now turn the call back to Fawad.

Thank you, Louisa. So I'll discuss strategic perspective now. The priorities for AmpliTech remain clear. fulfill our funded customer programs and advance 5G O-RAN production and deployment readiness, along with expanding our 5G O-RAN business development efforts and increasing our spectrum division distribution activity, making good progress in RF and mimic innovation and exercise discipline over operating expenses and capital deployment. We need to stay ahead of our competition in all of these areas, and Apple Tech has never been a me-too company. So therefore, we need to invest the funds that we have gotten into making sure that we have a clear advantage over our competitors for the next three or four years. We currently do have that advantage in all the technology we possess right now. That's why we have made a focused development effort. We've made investments in engineering, manufacturing readiness, and supply chain capability ahead of the revenue that we expect those programs to generate. You might think we're both bullish on the company, but yes, we are bullish on the company and that's our job. This is why we are doing this and we're very confident that the results will be evident. Those investments carry near-term costs. Our focus now is translating that readiness and our customer commitments into a more efficient flow of deliveries and revenue during 2027 and 2028, recognizing that customer schedules and production execution remain important variables We're encouraged by the size of the customer opportunities and the order activity announced since quarter end, but we know that the business must be measured by operational delivery and financial performance, as you expect. The strengthened balance sheet gives us this additional capacity to execute while we continue to manage those risks. Before opening the phone lines, I would like to ask George to address several questions we anticipate investors may have following today's release and the questions that we have received already from investors.

Thank you, Fawad. I will go directly into the received investor questions. Why did the company fell short of its original 2026 revenue target? Our initial outlook was prepared at the end of fiscal year 2025 and reflected the customer provider's shipment forecast and production expectations available at that time. These forecasts not just included orders already booked, but also the expectation of receipts of follow-on orders much earlier in the year 2026. Those schedules subsequently changed, and some significant purchase orders, like the record 21.7 million PO recently reported, were awarded later in the year than originally anticipated. Supply chain constraints, delays in technology transfers, customer evolution timing, Geopolitical Factors and Diplomacy Postponements also affected the conversion of commercial demand into reportable revenue. We withdrew our original target in August and are now providing an updated expectation of at least $28 million for full year 2026. This is based on current schedules and anticipated shipments. We want investors to do an evaluation on us on the delivery of that plan, not on our backlog alone. It is important to note that we did not lose any orders or business. It was simply a case in which our customer pushed out the scheduled deliveries. Next question, what gives management confidence in the updated outlook of at least $28 million? Our updated expectation is grounded in the information currently available from customer deployment schedules, our production plans, and anticipated shipments. It is a revised assessment of what we believe can be recognized as revenue during 2026, rather than an assumption that all orders will convert on an accelerated timeline. Next question. How should shareholders interpret the backlog that exceeded $62 million in October? The backlog represents significant customer order activity that has been publicly disclosed including the $21.7 million follow-on order for the Asian Mobile Network Operator Program and the separate $1 million satellite-related LNA order. After the published booking reports, the company received an additional $3 million in bookings from our Spectrum and AmpliTech Inc. divisions. October bookings of nearly $25 million were a company record. Based on the production plans and customer schedules described in our release, The backlog is expected to be fulfilled over the remainder of 2026 and through 2027. The precise timing can still move, and we are not providing a quarter-by-quarter conversion commitment at this time. Next question. Why has the increased order activity not yet resulted in proportionately higher revenue? The principal issue is the timing between receiving an order and completing a deployment ready shipment. Telecom systems can involve production lead times, customer side readiness, import or export requirements, licensing and permits, logistics coordination and acceptance conditions. When those elements move, the accounting period in which revenue is recognized can move as well. Our emphasis is now on an execution against awarded business, aligning suppliers, production readiness and customer schedules, so that purchase orders become shipments and recognize revenue as efficiently as possible. We also acknowledge that it has taken longer than we originally expected. Next question, what drove this sequential gross margin improvement and is 34.2% sustainable? Therefore, our gross margin improved indeed to 34.2% from 27.9% in the second quarter, a gain of approximately 6.3 percentage points. The product sales mix is an important factor in our margin profile. For the first nine months of 2026, the gross margin was 35.3%, compared with 24.2% in the same period last year. We are very focused on product mix, pricing discipline, cost control, and improved manufacturing efficiency. However, margins can vary meaningfully with the volume and mix of radio systems, components, and distribution sales in any period. Accordingly, we are not representing the third quarter margins as a guaranteed quarterly floor or issuing a specific feature margin target on this call. Next question. What operational milestones support the company's readiness to execute larger 5G programs? We announced that more than 3,000 AmpliTech radios had been deployed as part of our North American operator program with TELUS. We also completed a dedicated production line following quarter end, reaching production ready status with initial shipments expected during the fourth quarter. In addition, as Fawad mentioned, our medium power radio unit demonstrated the interoperability with OKUZU, which is an open centralized and distributed unit, an open source software-defined radio access network, platform designed to support 5G, Open RAN, ARAN, and future 6G network, which is what's driving demand for 5G products. We also completed, and this is very important, we also completed the onboarding and qualification requirements to become an approved vendor to a major telecommunication infrastructure provider. These developments broaden our commercial opportunities and support customer evaluations. Next question. Why are expenses and losses still elevated while the company is building its backlog? We have been investing ahead of anticipated larger scale revenue opportunities. In the third quarter, selling general administrative expenses was $3.38 million versus $2.48 million a year earlier. And research and development expenses also increased as it was $860,000 versus $700,000. You can clearly see that these expenses reflect corporate activities, technology work, commercialization, and infrastructure readiness. We must be ready to absorb and be able to execute on large programs. We understand that investors expect this investment to translate into performance. Our focus is to improve operating efficiency, manage costs, and convert funded orders into shipments and revenue. The third quarter net loss narrowed sequentially to $1.89 million from approximately $3.09 million in the second quarter. Next question, does AmpliTec have sufficient liquidity to fund operations and production needs? Yes, absolutely. As of September 30, we had approximately $30 million in cash, cash equivalent, and marketable securities, along with approximately $42 million in working capital, and we have a current ratio of about 6.93. The total stockholders' equity was approximately $65.72 million. And most importantly, the company remains with zero long-term debt. The company used $8.48 million in operating cash during the first nine months of 2026. Based on existing resources and our current forecast, management believes the company can meet normal operating obligations and plan capital requirements for the next 18 months. This assessment remains subject to actual business conditions and capital needs. And the last question that we had was, what are management priorities for 2027? Our leading priority is converting the existing order base into production shipments and recognized revenue. Managing supplier lead times, manufacturer execution, deployment timing and customer acceptance. We also intend to pursue opportunities created by our expanded orange software interoperability and approved vendor status while supporting our RF Mimic spectrum distribution and satellite related businesses. The company believes its customer activities, current backlog, manufacturing readiness, and a strengthened balance sheet over an extraordinary foundation for growth during 2027 fiscal year. This addresses the principal questions we wanted to cover in the prepared portion of today's call. Operator, please open the lines for questions.

Thank you. We'll now begin the analyst question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. Once again, any analyst who has a question may press star then 1 at this time. There appear to be no questions, so I'd like to turn the conference back over to Fawad Maqbool. Oh, pardon me.

One moment, please. Please standby. Please standby. Please stand by. I'd like to turn the conference back over to Fawad Maqbool for any closing remarks.

Thank you, operator. Thank you to everyone who participated in today's call. We appreciate the continued interest in the AmpliTech Group. We believe the growth in our customer order activity, the progress in our product capabilities and interoperability, and our strengthened financial position provide a meaningful foundation for the next stage of the business. We look forward to reporting our progress in future updates. In the meantime, investors may reach our team through contact information in today's earnings release or by emailing investors at plitechgroup.com. We also have a detailed presentation available on our investors page on today's call and the results of the quarter. So please refer to that if you want any details. Thank you again for joining us and have a good evening.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.