DFLIW

• Revenue growth: Net sales increased 26% to $16 million, with gross margin expanding by over 700 basis points to nearly 30%. - Capital actions: Successfully executed a comprehensive capital raising and debt restructuring, raising ~$90 million in gross proceeds and restructuring debt to $19 million with lower interest rates and extended covenants. - OEM partnerships: In RV, expanded partnerships with Airstream, Awaken RV, and Ember RV; in heavy-duty trucking, gained traction with fleets and collaborated with PACCAR. - Technology: Expanded IP portfolio with two new patents, and received a $300,000 grant for domestic manufacturing modernization.

• Q4 2025: Expect net sales of approximately $13 million, with adjusted EBITDA of approximately negative $3.3 million. - 2026: Confident in growth, especially in trucking segment as it transitions from pilot to production orders and expands into new segments.

In the third quarter, net sales grew 26% year-over-year to $16 million. OEM net sales increased 44%. DTC net sales totaled $5 million compared to $5.2 million. Third-quarter gross profit increased 65% to $4.7 million, with gross margin expanding 710 basis points to 29.7%. Operating expenses decreased to $8.5 million from $8.9 million. Net loss was $11.1 million versus a net loss of $6.8 million, and net loss per share was $0.20 compared to a loss of $0.98 per share. Adjusted EBITDA improved to negative $2.1 million from negative $5.5 million.

• Macroeconomic headwinds affecting DTC segment. - Government shutdown impacting industrial customers in DTC. - Volatile trade environment affecting domestic manufacturing.

Q: Maybe the focus first just on the guidance a little bit for Q4 as to which segment of the business is dragging down, like sequentially the revenue? Is it the OEM business that's sort of impacting the Q4 outlook?

A: Hi, George. Thanks for the question. Yeah. It's an interesting economic environment we're in right now. And I would say, in terms of our OEM business, Q4 is always the slowest quarter by seasonality. We've got a number of days off on the holidays. So that's not unexpected. There may be a little bit less than what we expected in the OEM segment, but really, what's happening is we don't have as much visibility in the DTC segment. And DTC is typically strongest in the fourth quarter. We've got the Black Friday sales coming up. And given the macroeconomic conditions now and the low consumer sentiment, we're just trying to be cautious because we really don't have a lot of visibility there. Also included in the DTC segment, we have a number of industrial customers that have basically shut down due to the government shutdown. So just a number of things really led to us being a little bit more cautious with our guidance.

Q: Hey, Denis and Wade. Thanks for taking the question. You know, I wanted to echo congrats on debt restructuring, right? Clearly, understandable that that's been a hindrance on the commercial side. So maybe just expand on your comments about facing some headwinds there. I know it's early, right? It's only closed a week ago. So are you thinking about early feedback from potential customers, whether it's fleets or OEMs? Is this more so think about capital budgets for next year? And with this comfort, that really helps? Just what are the conversations you're having?

A: Well, it was like a flip of the switch, really. I mean, we were starting to get POs now. I mean, you've got to consider the fact that as a vendor, our balance sheet is going to be a large part of what customers look at. It's not just the product and the benefits of the product, but also our long-term viability as a company. And I think that what we've been able to accomplish in a very short period of time has basically taken that out of the conversation. And now the focus is on the product itself and on the ROI and driver comfort and the ability of fleets to operate more efficiently now. You know? It really is a game changer in terms of the fact that the conversations have completely changed over now to how do we get going with these projects.