FST Corp Financial Results Conference Call and live webcast for the year ended December 31, 2025. Joining us from the company this morning are Chief Executive Officer, David Chuang, and Chief Financial Officer, Sebastian Tadla. At the request of the company, today's call is being recorded and will be available for replay along with a transcript for this call on the investor relations section of the company's corporate website, fstcorp.com. You may also access the teleconference replay via the Echo Replay platform by dialing either +1-800-715-9871 or +1-646-307-1963 and inputting playback ID 6261208, followed by the pound key. This replay will expire on Friday, May 22nd, 2026 at 11:59 P.M. Eastern Daylight Time. I would like to inform all parties that your line will now be placed in a listen-only mode until the question and answer segment of this call begins. You will receive instructions from the operator to ask a question in that segment. At this point, I would like to turn the call over to Scott Powell, President of Skyline Corporate Communications Group. Thank you, operator. Thanks everyone for joining us on this call. Before we begin, I'd like to read you our forward-looking statements provision. During today's conference call, company representatives may make forward-looking statements. Any statements made in this presentation about future operating results or other future events are forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please know that actual results achieved by the company may differ materially from such forward-looking statements. A discussion of factors that could cause such differences appears in the Risk Factors sections of the company's 20F. Now, I am pleased to turn the call over to FST's Chief Executive Officer, David Chuang. David? Thank you, Scott, and good morning to our shareholders, analysts, and members of the media joining us from around the world. Thank you for your continued interest in FST Corp. For those new to our story, FST Corp is a global manufacturer and marketer of premium golf shafts. We were founded in Taiwan in 1976 and began manufacturing golf shafts in 1989. Today, we design, manufacture, and sell steel and graphite shafts under our own KBS brand, as well as on an OEM and ODM basis for leading golf equipment brands, including TaylorMade, Callaway, PXG, and Mizuno. We also operate KBS Golf Experience retail stores in Carlsbad, California, Taipei, and Tokyo. Our brand is validated where it matters most, at the professional level. As of year-end 2025, there are more than 70 professional players playing and competing with KBS shafts on various tours around the world, including the PGA Tour. The professional adoption drives both R&D feedback and brand visibility in the consumer market. I also want to emphasize one central point about the KBS brand. FST does not pay to sponsor professional players. We do not have paid endorsement or sponsorship contracts with professionals competing with our shafts. Every player who chose KBS in 2025 did so on the merits of the product, not because we paid them. We believe this kind of unpaid, merit-based adoption at the professional level is the most credible validation of our engineering. Fiscal 2025 was a pivotal year for FST. We completed our business combination and began trading on NASDAQ under the ticker KBSX in January of 2025. We scaled revenue by more than 31% year-over-year, narrowed our net loss by more than half, and invested in the KBS brand through the inaugural KBS Open Golf Tournament. I want to thank our global team, our engineers in Taiwan, our operators in the U.S., and our KBS Experience colleagues in Taipei, Carlsbad, and Tokyo for the work that produced these results. I want to thank our shareholders for their continued support as we execute our plan. Sebastian Tadla, our CFO, will walk you through the 2025 results in detail, talk about the priorities for 2026, and how we're thinking about the first quarter. With that, I will turn it over to Sebastian. Thank you, David, and good morning, everyone. I'm pleased to report that driven by increased sales generated by our expanded golf shaft product lines, inroads into new geographic markets, and key operational efficiencies, FST Corp grew its revenue by over 30% and achieved major improvements in its bottom line performance. I'm also pleased to report that since year-end 2025, these operational improvements have accelerated, putting us in a position to achieve significant profitability in our first quarter ended March 31st, 2026. Let's first take a look at our three growth engines for 2025. The first, as I mentioned, was increased sales from our golf shaft product line. This growth was achieved primarily from improved sales of steel shafts to our OEM partners and a significant spike in sales of our premium KBS Graphite shafts. These graphite shafts performed particularly well, accounting for more than half of our company's $11.5 million in incremental revenue in 2025. We also saw increased demand from both our U.S. distribution channels and the aftermarket outside the U.S., and we believe both trends were in large part due to the growing popularity and acknowledged quality of our products and brand. Our second growth engine for 2025 was our inroads into several new geographic markets. These included Japan, Europe, and Korea, where we successfully introduced several new products, including our KBS PGI Graphite Shaft line, which we marketed to premium golf club brands, OEMs, and consumers in these regions. Our third primary improvement last year was the implementation of two key operational efficiencies. Last July, we added 5,400 square feet of usable storage space, representing a 155% increase to our fulfillment facility in Garden Grove, California. This expansion significantly improved FST's ability to meet sales demand, helping us increase our revenue for the year. In addition, FST adopted the Shopify Plus program, allowing us to consolidate our direct-to-consumer, B2B, and point-of-sale systems into a single platform, streamlining operations, improving inventory tracking, and reducing operational costs, particularly in marketing and customer service. Now let's turn to our financial performance. Our revenue for 2025 was $48 million, a 31% increase from $36.5 million in 2024. 97.2% of our 2025 revenue came from sales of golf shafts, 2.2% from sales of sports accessories and food and beverage, and 0.6% from software services, compared with 96.8%, 2.6%, and 0.6%, respectively, in 2024. Gross profit margin for 2025 remained stable at 43%, with a gross profit of $20.6 million, compared with a gross profit margin of 43.1% and a gross profit of $15.7 million for 2024. The company had a net loss of $1.5 million, or $0.03 per share for 2025, compared with a net loss of $3.2 million or $0.09 per share for 2024. This improvement was mainly the result of our $11.5 million rise in revenue, offset in part by a $3.6 million increase in total costs and operating expenses. We would like to note that this net loss of $1.5 million is an audited figure and represents a $5.7 million differential from the unaudited 2025 net loss of $7.2 million reported on February 12th, 2026. This differential resulted from certain adjustments in our audited financials, including a $1 million reduction in G&A expenses, the restatement of a change in fair value of OET derivative liability to a gain of $909,000 compared to a loss of $1.9 million in our unaudited financials, the restatement of income tax to a benefit of $730,000 compared to an expense of $545,000 in our unaudited financials, and a gain on change and fair value of warrants of $599,000 that did not appear in our unaudited financials. Turning to our balance sheet. As of December 31st, 2025 and December 31st, 2024, FST had cash and cash equivalents of $7.2 million, compared to $5.1 million. Total assets of $61 million versus $58.5 million, and total liabilities of $45.4 million in 2025 versus $35.5 million in 2024. We believe that our current liquidity, together with cash flows from operations and available credit facilities, will be sufficient to fund our operating requirements for the next 12 months. Now let's turn to 2026. This year, FST is again focused on expanding sales in both the domestic and export markets. This strategy will include launching several new product lines, including graphite lines, to meet the increasing demand for these products in both professional and amateur markets. We'll also focus on securing additional OEM business with strategic partners, expanding distribution channels across multiple markets, and increasing our company's exposure through popular marketing events, including our KBS Open Golf Tournament, which launched last year. We will also implement additional cost control measures to improve margins and evaluate new strategies to mitigate currency risk. Let me close by referring to my earlier remarks about accelerating our operational improvements into our first quarter 2026 results. It's my genuine pleasure to share that for Q1, we expect to see significant improvements in revenue, gross profit margin, operating income, and net income compared to the first quarter of 2025. These improvements continue to be primarily driven by significant inroads into several new geographic markets, as well as by increased sales from our expanded graphite and steel shaft product lines. We look forward to discussing these and other operating developments when we announce our first quarter 2026 financial results next month. Before we open the line, on behalf of both David and myself, I want to acknowledge our shareholders, our OEM partners, the professional players who trust KBS shafts in competition, and the retail customers who visit our KBS Golf Experience stores. Thank you all. Operator, we'll now open the line for questions. Thank you, Sebastian. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star one to join the queue. Our first question comes from the line of Tom Kerr with Zacks SDR. Your line is open. Good morning, guys. Let me start with a topical question, that is sort of the elevated fuel cost environment we in. Are you seeing any negative effects, whether it's shipping or manufacturing, with these high fuel costs or energy costs? Good morning. Thanks for the question. First, we want to say that while shipping costs have really gone up a little bit, especially these past few weeks, so far, that is really our Q1 results. In these 2025 results, we haven't really been affected by it yet. That being said, moving forward, we are being very strategic in what we bring over and how we bring it over. We're trying to load up the shipments a little bit more, have more inventory on hand, so there is no disruptions moving forward. Got it. Thanks. Couple more questions. Can you give a little more color on the graphite shaft growth we're seeing either last year or this first quarter? Is it the player age? Is it a secular shift from steel to graphite? Is it driven by pros? Any more color you can give us on the solid graphite growth? Absolutely. Our overall strategy is to really work top down by first introducing a line of shafts that are meant for the more professional or high-level amateur players. As our R&D continues to grow, we introduce additional lines meant for the wider public in general. That being said, this year we have a full line of products ranging from professional grade players all the way down to juniors, seniors, and intro level amateurs. There is significant growth because we have more product in the market. We have also released two new products which have caught on with professional players as well, and that is the TG Black shaft, which has helped us break into the PGA Tour with some players playing it and playing very well. There is adoption of our graphite product by our OEM partners, as well as the general public, and that is really fueling the growth. Got it. Thanks. One more quick one, a financial question, then I'll jump back in the queue. The capital expenditure, the audit of the capital expenditure was a little lower than I had thought. Any guidance, or I know you guys aren't giving guidance, but any sort of outlook for CapEx needs in 2026 or going forward? Yeah. We actually believe that this year our CapEx needs will be very similar to what we saw in 2025. We have no major significant programs or projects in the near future. The higher CapEx needs that we saw in 2024 and in 2023 were related to opening our KBS store in Taipei as well as our factory expansion. I think now, until we have another capital project at the factory, you will really see CapEx about where we were in 2025. Got it. Thanks for the answers. I'll jump back in line. Again, if you would like to ask a question, press star then the number 1 on your telephone keypad. At this time, there are no further call-in questions, we will now take the webcast question. We have another question from call. Tom Kerr from Zacks SDR again. Your line is open. One quick financial one, I'm going to ask a question about the golf industry growth in general. In terms of the debt profile, the majority of your debt is short-term. Are there plans in the work to create long-term debt out of that, or do you just keep rolling it over? How do we look at the debt profile going forward? Absolutely, Tom. Right now, we have around $18 million in short-term debt. We are working with our banking partners to kind of convert that over into a long-term debt. However, the other side of it is, as we enter into profitability, we will plan on paying that debt down to have a positive current ratio. That is really our goal for this upcoming year, for these next few quarters, to pay that debt down while at the same time also converting it to long-term. Got it. Just a big picture update on where we're seeing the industry. I know it's mature in some regions, it's growing. Just how do we look at the big picture in the golf industry or golf equipment industry? Player growth, equipment growth, that sort of thing. Independent research has shown us that the golf industry is still growing. In the U.S., it is still a growing market as we have more groups joining, general golfers. When we spread this to worldwide, it is definitely still a growing game. Excuse me. We are constantly seeing additional growth in many parts of Asia as well as Europe as the game becomes more accessible to players everywhere. We can look at what has happened in Q1 a little bit when we reach out to our OEM partners to gauge what their demand is on product. A lot of them have come back and said that their new product that is selling this year is actually beating their expectations, meaning that demand in the U.S. market still remains very strong and there's no plans to slow that down right now, or nothing is slowing it down at the moment. Got it. That's good to hear. All right. Thanks for the answers. That's all I have for today. Okay. Looks like we have one question came in from web. Scott? Okay, great. I'm not sure if Sebastian and management can answer this, as I don't think the company's given guidance, but I will ask the question and management will answer to the extent that they can. The question is, you stated significant improvements are expected in Q1 fiscal year 2026. Can you provide a specific numerical range for Q1 revenue and confirm whether Q1 will be the first quarter of positive EBITDA in the company's history? Sure. I'll answer a portion of this. In terms of the revenue, we do expect to see continued growth. That's where we're gonna land on answering that. However, the second part, we do anticipate a positive EBITDA. However, we've had positive EBITDAs in the past few quarters as well, so this wouldn't be the first one in our history. I think that's all I'm comfortable saying at the moment. Great. Thanks, Sebastian. All right. Thank you very much. Thanks, David, Sebastian, and Casey. That seems to be all questions that we have for this call. If you have any questions following this call, please feel free to send your questions to ir@skylineccg.com at any time. I'll now turn it back to David for closing remarks. Okay. Thanks, everybody. Thank you again to everyone for taking the time to join us this morning. We appreciate your interest in FST and invite you to visit our website and follow our progress throughout 2026, including a fuller report on our first quarter results next month. Thank you again. Have a great day. Thanks, Mr. Chuang, and thank you to everyone for joining the FST Fiscal Year 2025 Earnings Conference Call. This concludes the call. Thank you and have a wonderful day