Dear patrons, our next presenter is a pioneer and leading supplier of gallium nitride and is all about converting power in a fast, reliable, and cost-efficient way. Based out of Goleta, California, Transphorm, ticker TGAN, is focused on powering the next generation of semiconductor devices from 5G to data centers, cloud computing to industrial renewable energy. The company is also a leviathan on the intellectual property side, with an IP portfolio of more than 1,000 owned or licensed patents. Joining us to give our investor community an overview, it is my pleasure to welcome Primit Parikh, the co-founder, President, and CEO of Transphorm, as well as the CFO of the company, Mr. Cameron McAulay. Gentlemen, thank you so much for joining us today. It is absolutely a privilege. The floor is now yours. Thank you, Chris. Our pleasure to be here and welcome to all the viewers joining us. Transphorm, TGAN, trading on the OTCQX exchange, is the pioneer and leading manufacturer of gallium nitride power conversion devices. We are already ramped in exciting markets such as power adapters and chargers for fast chargers for computing, data centers, crypto mining, and communication infrastructure with our high-power products, a variety of broad industrial products like robotics and renewable energy, and supplying and designing into automotive electric vehicles and charging applications. Our phenomenal team has taken the company to a leader in this area, a technology and a manufacturing leader with full worldwide production capabilities, including our own manufacturing with an unparalleled IP portfolio, as Chris alluded to, more than 1,000 patents, the strongest in the area of GaN power, a worldwide base with particular strength in U.S., Japan, as well as a strong customer base in Asia, and having delivered $12.7 million revenue in FY 2021. Our technology and business has been vetted by strong blue-chip partners and customers like KKR on the financial side, Nexperia, Marelli, a leading automotive customer, Yaskawa, a leader in motion control, and a variety of other customers. We are supplying products in the market today. In fact, our comprehensive product portfolio has garnered over 15 billion operating hours in the field with exceptional field reliability performance. Our growing product shipments have allowed us to achieve 180% growth CAGR in our product shipments from July of 2020 -June of 2021. Why is gallium nitride so exciting in the future of power semiconductors? That is fundamentally because of its intrinsic performance and figure of merit advantages that allows gallium nitride to extend the so-called Moore's law of power conversion, as we dub it, allowing to provide superior power density, how much power you can pack in a small box. Silicon has simply reached its physical limits. Amongst the semiconductors today, providing power conversion like silicon carbide and silicon and gallium nitride, gallium nitride is without a doubt intrinsically the best, and Transphorm has succeeded in harnessing this potential of gallium nitride. The result is unparalleled efficiency, higher power density, and lower system cost, enabling smaller, lighter, and cooler power systems for our customers with long term energy savings and carbon footprint reduction. The markets we are addressing are presenting a tremendous opportunity in front of us. We are targeting a $3 billion power semiconductor GaN TAM, as we call it, with a further inflection point and upside to this in the 2025, 2026 timeframe as the electric vehicle powertrain market kicks off in full force with gallium nitride. In the near term, Transphorm is addressing and today ramping rapidly in power adapters and chargers and computing, as well as data centers, communication, and crypto mining. With midterm focus in broad industrial, like I said, renewables energy, robotics, and industrial power. In the mid to long term, the automotive EV market presents a tremendous growth opportunity for us. As we dissect these markets further, you can see that today the GaN TAM is a healthy portion of the total market TAM. When we do this GaN TAM, we focus on markets that can be reasonably addressed by products and gallium nitride products that Transphorm has today and in the near future. As you can see, the power adapters, the mobile chargers for laptops and computers and mobile handsets is one of the largest segments today in the market and growing healthily, doubling over the next five years. The electric vehicle segment will present the strongest growth rate for us, going from $200 million-plus GaN TAM to more than $2.5 billion GaN TAM in the 2026 timeframe. By the end of the decade, we and gallium nitride, in general, are addressing a more than $10 billion market opportunity. How does Transphorm do it, and how do we do it better than other gallium nitride competitors and silicon and other silicon carbide players in the market? At the heart of our architecture is the normally off gallium nitride product. All products in the power markets are normally off. Different companies choose to do it in different ways. What we have done is we have integrated a low voltage silicon transistor with our high-performing high voltage gallium nitride transistor to give the user the performance of the gallium nitride, but the look and feel of the silicon FET in as much as how they use the gallium nitride product from Transphorm. Our products are very easy to integrate, simple to drive means interface to the outside world, with existing controllers and drivers, integrated controllers and drivers that the customers are already familiar with. We do not need any external shrubbery to connect our gallium nitride to the external world, as some of our competition needs to do. With this architecture, we've been delivering robust products. Reliability and robustness is critical in the field of power, in high volume production with best-in-class performance in efficiency, speed, and form factor. Our installed power base is more than 350 MW, with 15 billion+ hours of operation, with extremely good field reliability statistics, less than 0.4 failures per billion hours of operation statistically. Our IP portfolio is unparalleled. The beauty about the IP portfolio is it is not only encompassing material and devices, which is the basic gallium nitride material and devices, and how to make the gallium nitride, but it also includes some very fundamental patents on how to use the gallium nitride in packages, applications, and circuits, no matter how the gallium nitride is made. Some people who have analyzed our portfolio, like Nomad, has said positive things about us and Transphorm's gallium nitride portfolio. As the GaN market grows, we believe this IP will become a critical point for Transphorm as well as various companies in gallium nitride. As we compare our technology, Transphorm's technology, to silicon MOSFETs as well as other gallium nitride flavors out there on the market, as notably e-mode gallium nitride, as it is called, Transphorm offers more to all customers. Faster, smaller, more efficient and robust solutions versus competing technology. We attribute, we list some key attributes here, starting from ease of use and how the user can be agnostic to the fact that they are using gallium nitride, largely agnostic, superior size and form factor, performance, higher efficiency. In fact, we have shown what I show on the right is a measured performance in an apples-to-apples comparison how Transphorm gallium nitride FET is better in an exactly similar application as some competitions, the so-called IC gallium nitride out there. We enable high speed, high frequency of operation, how fast the gallium nitride is doing the job, which also translates to lower loss, and we do it, or we enable the customer rather to do it, with minimum BOM components, bill of material components. One of the unique things about Transphorm is the power levels addressed. We are not a one-trick pony. Transphorm's gallium nitride addresses products from 45 W - kW, something very difficult for other gallium nitride providers to do. Silicon, the existing silicon technology, has been addressing this market as well, but with the lack of size, performance, and the speed of operation. There is several misinformation in the market that is also out there. We need to correct that. There is reports about the so-called GaN ICs with higher performance. That is incorrect. We show here clearly that depending on the application, the GaN FETs actually from Transphorm, perhaps from others also, have higher performance. GaN FETs can switch at 1 MHz, which is higher switching speed. We have verified that years ago. We have achieved 1 kW operation with 99% efficiency at 1 MHz, another myth in the market. The fact is that where do you integrate and what do you integrate? In the area of adapters and chargers, which is a dominating area ramping in the market today with gallium nitride, it turns out that most modern-day controllers actually have the drivers integrated for free. What Transphorm does is it takes advantage of it and works with a variety of leading controller and driver companies to offer our solution across the platform. Going next step, the Transphorm GaN FET, the T GaN FET, provides higher range, higher reliability, and higher performance. What do we mean by higher range? We address today power levels from 45 W for adapters and chargers, 65 W, 100 W, 1-2 kW in the mid power range for gaming, 2-4 kW for servers and crypto mining, and 10 kW for renewable energy and automotive. This is because our products can be put in variety of packages that others are simply not able to put because of the fundamental weakness of the competing gallium nitride technology. We are in production, this is on the various our customers and partners, as well as the products we have released, in the areas of adapters, data centers, gaming, crypto, industrial, and aerospace. The reason for this is, again, versatility, ease of use, performance, of course, and unparalleled reliability. As a result, we've been able to partner with strong companies in the driver and controller arena. On the left of this chart is shown some of the design done by our partners with Transphorm gallium nitride inside. What we have done with those designs, as well as our own reference designs, is we deliver best in class reliability and performance in a variety of products. A snapshot of that is shown here, from 45 watts, 35 watts actually wall clock charger, to 65 watt fast chargers and adapters, to 130 watts, 160 watt higher power notebook adapters and ultra-compact 240 watt adapters. Recently, we released, working with one of our partners, a 100 watt Qualcomm QC5 standard compatible fast charger reference design. As you can see, some of the market analysis with our parts have shown the third parties when they did this market analysis, have shown that Transphorm gallium nitride does more with less, achieves higher efficiency with, in fact, a smaller gallium nitride part. Some other customers have said with Transphorm gallium nitride, it is very easy for them to pass thermal requirements because the gallium nitride literally operates cooler. Now we move our focus to higher power. In this area, Transphorm is leading the space in gallium nitride, and we compare ourselves to silicon carbide, another wide bandgap technology that has been in the market for a while now. Because there is no other suitable gallium nitride, because the E-mode or the so-called IC packages simply cannot be offered in the standard TO packages currently due to the inherent device weakness. Comparing to leading silicon carbide products, this is measured performance. Transphorm gallium nitride provides 25%-38% lower loss reduction as compared to the two popular varieties or flavors of the silicon carbide power transistor, which are very good, by the way. Again, the reason this happens is because the higher speed, high efficiency, and low loss of gallium nitride. What this has enabled us to do is provide our gallium nitride products for applications ranging from data center to communication, and recently, taking off in crypto mining. Our customers have made titanium efficiency rated power supplies in the area of data centers. In the data centers, it is not only enabling efficiency and size advantages at the point of use but also longer term savings at the data center itself, including significant carbon footprint reduction from the efficiency. Crypto mining, as you can imagine, is one of the most power-hungry processes because the power supplies have to operate 24/7 and typically at full load. Here again, the higher efficiency with higher reliability is what has allowed Transphorm to penetrate. Some of our customers give us accolades for, again, our reliability, our performance, ease of drivability and designability, as well as the success and proven quality and reliability of the team that partners very well with our customers in helping them achieve their power conversion objectives. The automotive and electric vehicles is a very important focus area for Transphorm and gallium nitride mid to long term. Today, we are addressing three slots in the automotive, the onboard charger, the DC-DC converter powering auxiliary electronics from the battery, such as your air conditioner, and an auxiliary inverter, which is useful for off-grid power. In future, we are developing today higher power, higher scale products with gallium nitride that will allow us and our partners like Marelli and Nexperia to tap into the EV powertrain market, which is providing power levels up to the level of 100 kilowatts, 150 kilowatts, and higher. To, again, recap our product portfolio, the applications Transphorm's platforms, our SuperGaN platform in particular, can address these ranges from lower power adapters and fast chargers. These range from 45 watts to, say, 200 watts. Mid power, industrial data server and telecom from, say, 500 watts to two-three kilowatts. Higher power, renewable energy, UPS, and automotive up to 10 kilowatt products today. In future, working on exciting power modules that will provide 100 kilowatts and more power. The reason for our success, the backbone of Transphorm, has been our in-house capabilities for an end-to-end process in what we call the asset light vertically integrated model. It allows us to maintain complete control of manufacturing, as well as leadership in innovation and GaN technology. Not only we design our gallium nitride, obviously all companies doing gallium nitride design their own gallium nitride, but we have full control and ownership of the gallium nitride wafer manufacturing, which is called epi manufacturing, which is absolutely critical to develop sustained, reliable, and high-powered products. We have shared ownership through a joint venture in the wafer fabrication, which allows us to control our destiny in manufacturing while keeping the intellectual property in that area. We work with a variety of packaging partners, again, with Transphorm's unique IP of packaging to scale these products for our customers. Not only we have those packaged products with superior wafers, but we also focus enough attention on application-driven resources, working with our partners as well as internally to provide reference designs to our customers that show them how to use the gallium nitride in the best possible way. From there, our customers are very good at innovating and delivering solutions to the end market. Our full production capability span what is called MOCVD, the technique with which gallium nitride is manufactured, the gallium nitride wafers are manufactured, and we have multiple of these reactors on site in two geographically diverse location for diffusing geographical risk. Our high volume wafer fab in Japan used to be the former high-quality silicon CMOS Fujitsu wafer fab, which has achieved exceptionally high yields for manufacturing. To the best of our knowledge, we are the only company and manufacturing who have shown and published the data that gallium nitride running in a silicon fab can have the same yields as silicon CMOS running in the same fab. This is what also in part has allowed us to scale with very high-efficiency our chips to high-power solutions. Moving to current execution. The last one year has been extremely productive for gallium nitride and Transphorm. We have managed to achieve more than double, and recently triple quarterly unit shipment growths. From the first half of 2021, calendar 2021 to the second half of calendar 2021, we predict a 3x growth in unit shipments. This rapid growth is coming from two key areas in the near term. One is the adapter and charger market, which gallium nitride has been adopted now for a while, excellent companies like Power Integrations driving this market initially. Also uniquely, what Transphorm has done is sustained shipping in the higher power gaming, server, and crypto mining segments. Some key business priorities that we executed on. We deliver, first of all, $3.2 million of revenue in April to June quarter, the June ending quarter, driven by record product sales. Some highlights were 30-plus adapters and charger design, 20-plus in production, growing fast, strong MOUs with customers in this area to scale to multi-million units next year. Several adapter solutions on the market, including the new 100-watt Qualcomm QC5 fast charging compatible solution. On track with our capacities to deliver 1 million adapter GaN products a month from the next quarter. Then maintaining our leadership in higher power. Our Gen4 SuperGaN products are shipping actively into these higher power areas, crypto mining and server and gaming, notably with 10+ designs in production. We've doubled our product shipments in this area as well. We are well-positioned to target 200% or 3x product revenue growth year-over-year revenue growth over the next two years. Continuing on the execution, we release new products and reference design to help our customers and enhance the revenue ramp. We remain on target next for two -three more product releases in the low to mid-power case and a couple of designs in the higher power case. We continue to partner with marquee companies in controllers and driver space to jointly have reference design that promote Transphorm's gallium nitride along with suitable controllers from this market leaders of the driver and controllers. We continue in the automotive space with our Gen 5 automotive qualification and already sampling Gen IV in the area of automotive. Partners are always important to Transphorm, and along that end, three key partnerships we are executing on is with Yaskawa, our industrial partner, Nexperia, our automotive partner and licensee, and Marelli, our automotive customer and an investor in the company. With that, I'd like to hand over to Cameron to walk you through our financials. Thank you, Primit. Hello to everyone joining us today. As Primit mentions, I'll start with a brief recap of our most recently completed quarter and then share some thoughts on our key revenue drivers and long-term business model. Q1 2022 saw a continuation of strong revenue growth. Total revenue comprising both product and government, as Primit mentioned, was $3.2 million in the quarter, in excess of our target and representing a 33% sequential increase from the prior three months and over 200% when comparing to the same quarter last year. Focusing specifically on product revenue, the three months to June 30th saw our third successive quarter of at least doubling shipments, fueling continued growth and resulting in our highest quarterly production revenue number to date. This is our sixth successive quarter of product revenue growth. This growth is being driven primarily by strong traction in the consumer adapter space, but we are also seeing traction in higher power segments, including data centers and crypto mining. Turning briefly to expenses, cost of goods sold increased in the quarter, driven largely by our strong increase in revenue. All other areas of OpEx were largely flat. This despite this being the first full quarter with our increased footprint across manufacturing, sales, and applications, and G&A, together with expenditures tied to a change in our year-end. The non-EPS loss for the quarter was $0.13, flat to the prior quarter, and representing a $0.07 increase in non-EPS relative to the same quarter 2020, excluding licensing revenue. Turning now to other updates in the next slide. Thanks, Primit. Net current assets decreased $4.5 million in the quarter. Cash burn was a little higher than the prior quarter due to some annual insurance payments, together with ongoing investment in our inventory and CapEx to support the strong growth. We are well-positioned to lower the burn significantly in the current quarter. We're also happy to report several important developments that occurred in the quarter, all of which contribute to a strengthening of our balance sheet as we move forward. From a funding perspective, the company announced the conclusion of a $5 million equity investment at $5 per share from a multi-billion dollar international company based in Asia, solidifying our midterm cash position. Staying on funding, the company also completed another component of our development program with Yaskawa, securing $750,000. On liabilities, we executed on our deliverables with respect to our partnership with Nexperia. This execution means the development loan is now considered forgiven, and licensing revenue will be recognized in the current quarter. These developments extend our financial runway, strengthen our balance sheet, and enable us to continue to develop and grow the company's growth engine. Additionally, the company continues to target a near-term public listing to Nasdaq. Several steps have been taken from a compliance and governance perspective, and the company continues to perform internal due diligence as we work towards this short term goal. Moving from current activity, I wanted to touch on our thoughts on key revenue drivers. On the next slide. Thank you. We view this in four distinct stages, adoption, execution, inflection point and accelerated growth. For each stage, we've identified key factors that will drive our top line. Starting with adoption, we have successfully monetized our industry-leading IP portfolio to generate revenue through both licensing and government funding. As mentioned earlier, our product revenue continues to increase very strongly. We are seeing this trend continue into phase II, our current phase, execution. This product revenue growth is driven by our rapid adapters, together with increases in both our epi vertical data center and crypto mining applications. This growth is an addition to continuation of our licensing and government revenue. Much of this ramp will be using our latest technology, our Gen IV SuperGaN products, and our most recently released Gen five products, with record low on resistance and a robust TO-247 package. Moving to phase III, we see an inflection point in the market in the 2022, 2023 timeframe. As Primit mentioned earlier, there are a number of very sizable market segments that we expect GaN and Transphorm to penetrate, and it is in this timeframe that we anticipate this broad market adoption to occur. Additionally, we will see our first revenue in the automotive sector in this timeframe, a key long-term revenue enabler for the company. From there, the story will be one of profitability and growth. Transphorm will be a leader in EV, consumer, and RF segments. Automotive revenue will ramp, and the continued expansion in broad markets such as data centers and broad industrial will support positive cash generation and enable incremental investment. Turning from this to provide some thoughts on our long-term business model. We are in the process of building a high-growth, cash-generative business. The company has three distinct revenue streams: licensing, government, and product. In the current year, we are generating solid revenue from both licensing and government contracts, and this is being supplemented by significant growth in our product revenue. Product revenue will be around 1/3 of our total revenue for FY 2022, we are, as Primit mentioned, targeting annual product revenue growth of 200% as we move from this phase into FY 2023. From 2023 onwards, as we continue to ramp our production revenue across our target segments, product will form over 90% of our revenue. As with FY 2022, this growth is coming from multiple segments and not simply consumer. This consistent rapid acceleration in our product revenue allows Transphorm to target a five year annual CAGR in excess of 50%. We're also confident this volume increase, married to our product portfolio, including our recently released Gen IV and Gen five products, will allow us to achieve an overall gross margin in excess of 40%. With respect to operating margin, the company will continue to invest to support all aspects of our core operations, our stable structure allowing us to translate gross margins into delivering an operating margin that will be in excess of 20%. In conclusion, here are some of our key investment highlights. We have a disruptive technology that provides power conversion solutions across a number of significantly growing markets. We are commercially ramping with strong production revenue today, together with a manufacturing structure in place that can support our long-term growth. We have a comprehensive product offering to meet our customers' needs across a wide range of power levels and segments, all of which underpinned by the industry's strongest IP position and a deep talented team led by GaN experts. Thank you. Chris, over to you. Gentlemen, thank you so much for the presentation. For anyone who's interested in asking a question, please feel free to use the chat app on Zoom or email me directly at chris@ldmicro.com. Gentlemen, are you ready? There are quite a few questions in the queue. Go for it. We'll see. Yeah, exactly. There was one question for you, Cameron, which I thought was interesting. They said, "Who is the most famous Scottish person alive today, in your eyes?" I'll tell you. Wow A lot of people say Sean Connery, but he passed away last year, I believe. That's who came to mind. Funny you mention that, Chris, and he passed away recently. I don't know. I have a- As a biased soccer fan, I'm thinking of the Scotland manager perhaps, something like that. I'm not too sure. Yeah. As a biased tennis fan, I would say Andy Murray. Andy Murray, yes. Yeah. Absolutely. Good example. That was the only question. Sometimes we get a question like, "What is going to be the EPS for the company next quarter?" Which I don't really dignify with a response, but there's a lot of new investors out there. Of course. Quick question is, when did you guys go public, and was it a traditional IPO? We did this in 2020, beginning, and it happened, it was a APO, alternate public offering, came through an inbound inquiry that we and our board evaluated and decided to go forward combining, at that time, in early 2020, strategic investor interest that the company already had from our partners with institutional interest that came in externally to the company, and we decided it was the right time with the gallium nitride market set to launch for Transphorm to access the public markets and did this, went public, and got listed in the OTCQX. Subsequently, in July of 2020, we completed the PIPE transaction associated with the APO in February of 2020, just before COVID hit, actually. In July of 2020, we completed the listing on the OTCQX at that time. Roger. Don asked a question about the timing. I just want to kind of wrap this around. Don asked a question about the timing on the Nasdaq up-listing. Is it by the end of the year? Is it a few weeks? What's kind of your consensus right now? It's certainly, we're actively looking at it right now, Chris. We meet the seasoning requirements, which is one important component of it. We've done a lot of work internally, and we'd love to get it done by the end of the year. It depends a lot on the processing time and so on and so forth. Certainly, it's a near-term target, and we're keen to get it done. Respect. Next question is, were you guys one of the first companies to focus on gallium nitride, and what is the backstory here? Sure. Gallium nitride in different forms, actually, it's an interesting question, has been around now for more than two decades. First it was in the area of gallium nitride LEDs for solid state lighting, then gallium nitride RF transistors for radar as well as the commercial wireless infrastructure, LTE and now 4G, 5G. Our team actually, prior to Transphorm, had the good fortune and a very positive experience of being part of this market innovations with gallium nitride. I personally was part of Cree at that time. Then we decided to launch gallium nitride for power in the 2007/2008 timeframe because at that time, we imagined that gallium nitride in power could be the biggest application yet for gallium nitride, not only in terms of market size, but also in terms of energy-saving potential. At that time, actually, it was Transphorm and International Rectifier, two companies who were actively started in gallium nitride for the power conversion, the high voltage, 650 volts at that time, power conversion space. IR was subsequently acquired by Infineon, who is obviously a gorilla in the field of power with silicon and silicon carbide. They are working on gallium nitride, which is good to know. A lot of marquee companies are working on gallium nitride, in which Transphorm has established a leadership in. Transphorm and IR, International Rectifier, were the originally two companies in the gallium nitride power space. One of the perks I get as moderator is I can get to ask a question at any given time, and this is one of those moments. Sure. Is there a reason why it's Transphorm with a P and not Transform with an F? It's a long story. It's perfectly told over a beer. The PH had something to do with things we were doing at that time, related to exploiting other areas with gallium nitride, to which the PH was also related. The Transphorm came nicely, transforming the way the world will use energy, applying to our power conversion area. Well, Primit, it's a tongue-in-cheek question because basically everything has been taken. All the names for shows, for companies. Sure it's almost damn near, domain names. Right. It is damn near impossible to get anything in its actual spelling. Absolutely. That's why I asked. Even the PH was taken. That's why our website is transphormusa.com. The guy at- That was not the reason why we have the PH. Understood. The next question is, have you guys valued the IP, and do you have anyone currently infringing on the portfolio? Let me take two separate parts. We have worked with a reputed firm who is providing models on, and sophisticated software models on how to value the IP. We've subscribed with them. We have partnered with them to value our IP. We can value any IP with that, according to their models. That's what when I said our IP was valued at about $200 million. That's our directly owned patents and exclusively licensed patents give that number. We've also compared it to IP from other gallium nitride providers. It's Transphorm and Infineon again, because Infineon, because IR originally was one of the early entrants in this. Transphorm and Infineon have the highest IP in this area. Some of the recent entrants have IP that is 5 x or even 10 x lower, not only in number of patents, but also value. I thought this was a really good question. Does the global chip shortage help the company or hurt it? It depends, right? It's, in some areas, we make the good thing about Transphorm in terms of gallium nitride manufacturing is we control our own destiny to some extent because we have our wafer manufacturing, our epi manufacturing, and our fab. Now, obviously, in some of the raw materials that come to this, they are subject to general semiconductor raw materials. We have to do a lot of advanced planning. In the area of packaging, like I said, we enable high-power packages, all kinds of packages, but the similar packages may also be used in silicon, right? There, when we work carefully with our subcontracting partners, our package manufacturers, a lot of advanced planning has to be there. In that sense, we have to very carefully manage, let's say, the challenging of supply with very long lead times where we have to make our commitments significantly ahead of time. If that said, in certain areas, because we make our own GaN, we can actually provide right now products to the customer. It depends how you are looking at it. There are two sides of the coin, not one answer. We have to manage it very carefully because yes, we are also subject to some of the fluctuations, especially raw materials that we buy from outside. On the other hand, when it comes to making the gallium nitride, we make it on our own. In terms of your current customer base, who are they, and what are they using your technology specifically for? Correct. As we talked about our market areas, the customers range from the folks who make power adapters and fast chargers. Either sometimes the folks who are large, sophisticated manufacturing partners to the tier ones, or in some cases, the tier ones directly. In the area of gaming, we have a strong customer that's a publicly released, Corsair, for example, a pioneer in gaming, has been our valued customer for a number of years now, having the best power supply out there with gallium nitride. We have customers like Bel Power Solutions in the area of data servers, that's also publicly released. We have ramped up recently key customers in the area of crypto mining, because our high power parts have been picked up in crypto mining because of the efficiency and reliability. In industrial, we have strong partners like Yaskawa, who is a leader, number one company actually in the world in motion control and robotics. They're our longtime customer partner. Yaskawa talked, they have funded a development program also to provide certain customized solutions for them. In automotive, we work with customers such as Marelli, amongst others, with other customers in Japan. Marelli also happens to be an investor in the market. Our customers are people making the power supplies, people making the adapters and chargers, people making servo motion control, drives, industrial power, and people making automotive, tier 2s and tier 1s who make automotive components. A follow-up. If fast charging was a segment, how big do you see it becoming for GaN? That will ramp significantly, right? In the end, a variety of things. This is just not your smartphones or the laptops that need the fast charging, right? It's a variety of devices all around that need chargers in the range of 30, 40 watts - 150, 200 watts. Like power tools, for example, use chargers, right? Can you make it compact and high speed, right? That's a very strong segment for gallium nitride, not only for just Transphorm, but many leading gallium nitride companies who are providing good solutions to the market. I liken that with my prior experience to the gallium nitride LED space, where four or five top companies, the Cree of the world or the Nichia, Lumileds, Osram, the four or five top companies who had strong IP, who had strong manufacturing and strong products, they dominated the market for two decades. It will be similar, we believe, in the area of gallium nitride, and we certainly hope to get more than our fair share. Given the fact that you guys have your fingers on the pulse, do you see a future where in the next three-five years, you'll be able to charge your smartphone from 0% - 100% battery in less than 15 minutes? Yeah, it is completely possible today, for example, that's why we emphasize the Quick Charge five Qualcomm charger. It already charges 0%-50% in half that time, right? five minutes, 0%-50% it can charge extremely fast, the Quick Charge five, if the phone is compatible with that charger. The pace of the technology innovation, GaN is one of the enablers for fast charging, but also on the receiving side, the battery itself and the interface to the battery, very strong companies are working on those standards. The pace of innovation has been tremendous, right? What used to be five watt chargers now just five years ago, right? Those small cubes have morphed into 65 watt chargers, and the size of that thing has, of course, not increased too much, which means the power density has significantly increased. For all those who are tuning in from the state of California, it's not a bad thing to have in your bolt bag just in case of a fire or an earthquake, because when power goes down, you still want to be able to access your phone. On the competitive side, which name do you guys go up head to head the most often? Thank you for the question. Sure. Overall, as we look at the power market, right? We have, like I said, a $multi-billion GaN TAM here. The incumbent actually in the market is silicon, the silicon superjunction, and on the higher power side, in the industrial side, silicon IGBTs. Silicon superjunction and IGBTs is the dominant in the market today. Silicon carbide has been around now for a number of years, and it's been adopted for automotive. Those are the key competition at the top level. In the area of gallium nitride, first of all, like I said, it's very good that there are multiple companies in the area of gallium nitride now. Transphorm is certainly leading in quality, reliability, performance, and IP. In the area of gallium nitride, when we look, there are good companies, and it's good to have competitors because you need that to sustain the market. That's one of the things actually that held back gallium nitride early on. Companies like Power Integrations, for example, has done extremely well in adapters. Navitas is providing good solutions for adapters. Both these companies don't have solutions for higher power. There we tend to compete more again with silicon carbide and silicon itself. Are there other pure play GaN players that are currently public? Currently public, Transphorm is a pure play. Navitas has recently announced a SPAC transaction to be completed, I believe. That would be the next one. I think Transphorm led the way in terms of the pure play GaN being public. Power Integrations, obviously, it does a number of things, has been a marquee public company for a long time. Infineon has been out there for a long time. Is your ROI primarily based on energy savings or other things as well? The first ROI is providing again direct value to the customer, right? Make the system cheaper and cost-effective. Using gallium nitride, it's just not about the gallium nitride enabling efficiency, but actually gallium nitride allowing the system to be more cost effective by eliminating some other components, shrinking down the size, because like I said, we operate at higher frequency. Gallium nitride is a high speed semiconductor. Inherently, most gallium nitride should be able to operate at higher frequency, not just one type or the other. We exploit that well, that makes other components smaller. It's just not necessarily about the gallium nitride, it's how the system comes together. It's a system cost saving at the point of use, whether it's a power supply or an adapter or an automotive charger. That is the first ROI. The second ROI in the areas of demanding power-hungry applications. Like the servers in data centers or crypto mining. There it is a sustained efficiency ROI, how much electricity savings do you do? Over the year what you save, not only in the power supply, but auxiliary things. Like in the data center, for example, you have to cool the data center, amount of heat you waste is not only you are saving that electricity in the power supply, but you'll save another double of that in cooling. In those markets, it is an extended ROI, which one has to exploit because there is a value chain. The immediate ROI is at the point of use of the customer. On the crypto side, how big a market is it for you guys right now, and how big can it get moving forward? Yeah. The crypto is very interesting, right? It's not only about Bitcoin now, but there are a variety of crypto markets there. I don't want to claim to be an expert on the fluctuations that happen in the crypto market at all. What we know is crypto is one of the most power hungry applications out there, right? A variety of studies liken the crypto energy use as almost a use of a energy use of an entire small country, right? In that, when you improve the energy efficiency, say from even 96% - 97%, what you are doing in that 1% is reducing loss from four percent - three percent. Improving energy one percent efficiency at 96%, you're improving loss by 25%. You save 25% electricity by that level of efficiency improvement. We believe there is a tremendous opportunity in the area of crypto mining. Today we supply both to people who make power supplies and then do the end sale to the crypto mining rig developers. Recently we've started talking directly to some companies who are developing the crypto mining rigs themselves and want to be vertically integrated, making the power for the crypto mining, because that is such an important component. Just to let you guys know, we have a few more questions and about 10 minutes. Let's see if we can get through this quickly. Can you give us some color on the board and how it has changed over the past two years? Sorry, color on what, Chris? On the board of directors. Oh, on the board. On the board of directors wanted to get a feel for who makes the composite. Sure. Of course. Transphorm, we work very closely with our Board of Directors. It's an excellent partnership, whether we were prior to being a public company or now that we are a public company. As we look at our public company, we are fortunate and we work hard to add Board members from variety of walks of the company. KKR, our largest shareholder, is well represented on the Board. We've added exceptional Board members recently. Kelly Smales, who had a long career in semiconductor finance at AMD and National. Katrina McFarland, who was a high-ranking Department of Defense official in the Navy. We are very fortunate to have her on our Board to guide us through our kind of technology platform growth and government business. We have a well diversified Board. Dr Julian Humphreys, who used to be in charge of the entire power MOSFET programs at NXP and later Nexperia. He's on our board bringing a wealth of power experience. We have a strong financial equity experience represented, financial semiconductor hands-on experience, power semiconductor, technology and government, along with, obviously our internal management team on the board. It's a well-diversified board, and we continue to expand and add strength to the board to help us position best on the public markets and grow as a public company as time goes on. Primit, you have two more questions, and then Cameron is gonna be grilled with four questions to end. Oh, ticket. Yeah. No, exactly. I love how you're smiling. It'll be interesting to see what your reaction is to the final one. No worries. Primit, is most of your future growth going to be from existing customers or new client wins? Actually, it's both, right? Obviously, it's key priority to support existing customers by definition. What we like about many of our existing customers is proliferation within a customer. Customers also work very hard to design a GaN, adopt a GaN, and then what we like to see is proliferation from platform to platform. Somebody's made a two kW power supply, we'd like to see a 2.2 kW, 2.6 kW, 3.2 kW. Different products obviously, but based on the same platform. That is happening. Clearly to expand, we are adding customers, new customers in these areas that we talked about, obviously. That's an important growth factor in our future growth. Most certainly both those things. Final question for you, is business pipeline stronger currently than it was this time a year ago? Absolutely. That is how we have been able to achieve the double, and triple unit shipment growth that we talked about. Well, okay, you're off the hot seat. Now it's Cameron's turn. Cameron, since going public, how much has the company raised and spent? We took the company public, as Primit mentioned, through the APO process. As part of that, we've raised $21 million. That was in February of 2020. We did the PIPE in December 2020. That was another $50 million. We just completed another equity round last month, actually, for $5 million with an Asian multibillion-dollar semiconductor company. What that does is gives us a middle-term runway to continue to grow the business and invest in the business. The aim, Chris, will be continue to look at ways to strengthen the balance sheet, to elongate that runway and to drive growth. Historically speaking, where has most of capital spend been on? I'm assuming it's been on R&D. Yeah. That's right. I think for us, developing products, having a really strong portfolio out there, making sure we've got a packaging portfolio to support it is crucial. Making sure that the products are of high quality and very reliable. We've had dedicated teams to support each of these areas, and I think what we're seeing increasingly as well is an increase in our sales footprint, our applications footprint. We're seeing more traction and we're seeing more growth, and we need to have the sales and application team to support that. That's growing. Historically, I would say R&D, quality, reliability, those areas have been the fulcrum of what we've developed. What does the company have to generate on the revenue side to reach break even? I mentioned earlier on, we've got this kind of long-term operating model of about 40% plus gross margin. There you go. As we think about the preponderance of our revenue being product revenue, and you look at OpEx and the kind of, I would say, roughly $5 million just under that a quarter. You're thinking, if you do the math, that takes you somewhere in the kind of $50 million-$60 million range for the company to break even. Anything beyond that, obviously, we're cash generative, profitable and moving forward. On this last $5 million raise with the semiconductor company, was it straight equity? Did you guys disclose at what price and whether there were any warrants attached to it? It was straight equity. It was $5 million at $5 per share, which is above the price. Yes, there were some warrants attached, and we disclosed that in our most recent public filing. Absolutely. Excellent. Cameron, that was it. Yeah. Oh, that was okay. Thank you, Chris. You went easy on me. Before we started the presentation, we talked about where you guys are based. I still don't know this, even though I've been there many times. Do they say Goleta or is it Goleta? I say Goleta, and I think they say Goleta. For everyone who doesn't know, Goleta is kind of a town right next to Santa Barbara. For anyone who's been lucky enough to go there's a reason why most famous celebrities have homes down there as well, because it's private, it's tranquil, and you can't beat the scenery. The joke was that I've only gotten two speeding tickets in my life, and they were both in the town of Goleta. What I wanted to ask you guys is CHP really nasty over there, or was it just my bad luck? How have you guys adapted to the scenery over the last 18 months of essentially being close to home? Chris, first of all, I've had the good fortune to be here for the last 28 years from the days I went to school at UC Santa Barbara, which obviously is in Goleta, but they don't want to call it, nobody should call it UC Goleta, right? UC Santa Barbara. Yeah, of course. Yeah. Yeah, the celebrities you talk about are in Montecito. In Goleta, it's people like me and Cameron working on Transphorm. No, I have no complaints against CHP. Statistically, with my track record, I've been very fortunate in Goleta and Santa Barbara compared to other areas of California. I wanted to give you guys a pop quiz question, okay? I really apologize to do this very quickly, but I want to be respectful for others. There was three questions that were asked in the Q&A. We'll come back to my trivia at the last thing. Don asked a question, "Where and how secure are your materials that are secured?" Excellent question, Don. The materials, it's a variety. It's a semiconductor company, right? It's semiconductor manufacturing, there is a variety of materials. What we do, our supply chain team, led by a very experienced person who's been in this business for 35 years now. We make sure as far as possible, we have second sources to all our materials. Our infrastructure, making the materials, the reactors as such, that's in Goleta. We have a second, owned by Transphorm, but located physically in our joint venture wafer fab in Aizu Wakamatsu in Japan. We have two separate sites for our, as it's called, the MOCVD epi reactors. Our wafer fab is in Japan. Very secure. That area of Japan is actually in things like earthquakes and other things, it has survived, even after the bad Fukushima disaster, that fab was not actually down. Internally, it was obviously because of the supply chain disruption, it took a week or so, but internally, the fab was operating. It's a very strong former Fujitsu semiconductor wafer fabrication facility. Coming to key material supplies. In our making a gallium nitride wafer, you use things like gallium, you need nitrogen. We have to secure the supply with our suppliers of gases or chemicals. Are you using any ISO standards in your work? Yeah. Yes, we are ISO certified, and we and our customers, our manufacturing processes, our supply chain processes, our customer-centric processes, we are ISO certified. Yes, we actively use that. A semiconductor whiz, Jared, asked a question, "How does your cost compare to GaN foundries such as Tower Semiconductor?" Thank you for the question, Jared. Again, that's a great question. In the area of new semiconductor, if you look at, and I'll give a statement, and then I'll give an answer. Historically, innovation cost manufacturing leadership has always come from being vertically integrated. It's not easy to do vertically integrated. It's not cheap to get vertically integrated. If you are vertically integrated, think about the gallium arsenide handset power amplifiers in the '80s. Every company that succeeded who had their own manufacturing, not throw over the wall to a foundry. Think about silicon carbide. Think about gallium nitride LEDs. For a long time, it was vertically integrated manufacturing. After successfully after 15 years or so, 10, 15, 20 years as the case may be, then the foundry model develops, obviously, in silicon now after 50, 60 years, right. It's all about the foundry model. It's a different scale altogether. When we compare, by having our own manufacturing, the number one thing is we control our destiny for quick cycle times, quick innovation, complete manufacturing control and traceability, and obviously the wafer cost. The cost model, you don't have to pay anyone else that added margin by making your own manufacturing. The challenge, obviously, is are you ready for that manufacturing, scaling, investing in it? That's where Transphorm, you asked the question, where has a lot of the capital been spent, R&D plus also investing over time. All of that has been substantially done. That's the good news in manufacturing. Excellent. I apologize because I saw that from the corner of my eye, and I didn't want to be respectful to the people that asked questions. Of course. the Q&A is concluded. Now it's time for trivia. Okay. I don't know what we're playing for. I'm sure I'll give you guys a good perk. It was the last company I wrote on about two years ago, because our legal team here won't let me recommend anything. What fast food chain's first location was in Santa Barbara, California, that was recently acquired by Yum Brands? Okay. I'll give you guys a hint. They sell sweet potato fries, which are amazing, by the way. Interesting. Is it Habit? It's Habit. You got it, baby. Yeah, it's Habit. I knew that, Pramit, because we went out for a game of golf, and the first thing Pramit said is, "I'm going to take you to this burger place. It's absolutely fantastic." It was a Habit Burger in Santa Barbara. Oh, I got to tell you- Delicious in downtown Santa Barbara, I think it's their first location. You can't physically go inside. It's just like a standalone. Yeah. The reason I owned, let's just say that I was a fairly large shareholder in this company, is because it was one of the very few brands where the wealthiest people in our community came and brought their family and some of the more bourgeoisie, if you will. It was one of those things where it didn't matter who was there in terms of dollar spent. They were there because it was delicious. For anyone who goes down there, Habit is a thrill. I will also give you guys this insight. The ice cream that first location sells is different than any other ice cream in any other location. I don't know why. I don't know the history behind it, but it's the best soft serve I've ever had. If anyone is down there, I think you should go visit Transphorm and then pop to downtown Santa Barbara and have this ice cream. Gentlemen, where can people go to get more information on the company? Obviously, our website is a great resource, www.transphormusa.com. If any further inquiries, they can put it on our website, and it will 100% get routed to the right person. If it's Cameron or myself or our marketing, that will be taken care of promptly. We can take care of that. For anyone who submitted a question by way of email that I didn't receive, of course, I will forward it to Brett and the team. Absolutely. Gentlemen, it was an absolute pleasure. I hope to see you guys shortly, and we'll be following the company in the weeks, months, and years ahead.