On results is so critically important, and I think the results that I share with you today, and which you can see in the report, are certainly testament to this focus. It is impossible to do battery development and have a successful battery at the end of the line without focusing on it first and having the people organized. With the new leadership on board, I'm very pleased to see that our thesis, our focus is starting to pay dividends. The performance we have is record in company history. The cycle life, the capacity retention of a stacked layer, the company has never seen this before. This is very important and very exciting for us to see that this technology is truly viable.
I remember in my first meeting in Norway back in October, only seven or so months ago, when I first joined the company and just having joined the company in September. I said that I believe the physics worked, and I believe that still today, and the data we have shows that. That is what is so critically important about what we do. We are taking stepping stones towards something that is monumental in the world. This is a technology that will truly change how we interact with our devices, how AI is delivered to us at the edge, how we can actually get things done in a seamless, wonderful way. It takes energy at the edge, and that's exactly what we're doing, and it's really quite an exciting place.
For us to have record performance data and bring that to you today, this is a major step in the right direction of an exciting technology and a promising opportunity. The Corning Ribbon Ceramic cathode. This is early data, single layer. What we're seeing is flat capacity retention. The battery experts in our building, when we saw this first data come through, and then we saw it again, and we saw it again, we looked at each other and we knew that there's something special here. We're very excited about our work with Corning and on the Ribbon Ceramic. The customer pipeline continues to expand. This is an area where, frankly, it's an opportunity for us to spend more time and obviously more focus as a company.
We'll be focusing resources, dedicating resources on this because we need to go from a place of being reactive to customer input and customers coming to us. We have everything from pet health to sensor technology to medical to hearables. There's a lot coming into the company. Our job now is to be strategic and say, "What are the best segments we want to be part of? Who are the right customers? And where do we go deploy the technology?" We continue to be in active negotiations across a number of different companies. It's important for us to be strategic about what the right companies are for us to focus our time on. I would say lastly, and we continue to do this, is on the resourcing side. The human capital, the people in this building, the talent we have is our single largest lever toward progress.
We have hired in some excellent people. We just had some wonderful people just join us this past week, and we are making immediate progress with some excellent people because they're deliberately coming to us. They want to be part of what we're doing, which is special and unique and the first of its kind. It's extremely hard, but that's why we're here. We're attracting wonderful people. Very grateful to those people who have really been excited to join us, and I'm excited to welcome more people in the future. What is the rest of 2026? This is consistent with what I've said before, and that is this is the year of commercialization. Shipping products with repeat performance is a critical next step. These two vectors of capability in batteries, there are a lot of great battery technologies that have not been able to repeat themselves.
The repeatability of that battery technology is critical, and that's why we've invested operational and manufacturing expertise that know batteries in addition to the engineers, because these two vectors, in terms of technology and operations and manufacturing, those two things are so critical toward the performance and the repeatability that is required for any battery. The next, absolutely securing partnerships. That is so critical as our lifeblood. As I mentioned, we're excited to have to be deliberately focused on the right partners. This is not my first rodeo, certainly. In my past, I've had lots of different first customers. What's important is they're a partner out of the gate. To go prime time with big, major customers, that's super important. We need customers that are going to work with us along the way.
The third element here, this is a critically important part of the company. This is the first time we're actually tackling the fixed cost basis of this company. The fixed costs amount to 50% of our cash burn every month. Anything to change that is extremely meaningful. This is an area of deliberate focus by our operations team, myself, and other members of the company. We are actively going out and reducing this fixed cost structure. It's not easy. It's certainly a multi-period effort. The building lease, equipment lease, these are major items that we inherited that we have to tackle, and we are excited to make some progress on that because anything to reduce the building facilities related costs of an oversized building as well as an equipment lease, these are two levers that make a big difference.
We look forward to having more progress there. Again, these are multi-period efforts. Q1 achievements. I think I mentioned a lot of these already, but I'll continue to drill in. I think the key thing is that when we switched to a product-led organization, leaned out the organization in February, unfortunately reduced staff, that allowed room to bring in expertise that we needed to focus on what matters, which is our immediate product milestones. Bringing product performance and repeatability to you as our investors and/or customers. The customers do continue to expand. We're seeing a lot more use cases, and that's quite exciting. We continue to have negotiations and progressing those on a complex multi-year, multi-phase development program. We're excited about this company and other companies that are right there with them, and we're progressing well.
On the product, when we think about what is important, it's the product performance. It's shipping product to customers. Getting through the capacity retention to make sure there's not leakage out of the cell. Why build lots of layers when you have leakage out of one layer? You've got to solve it at the layer. This performance improvement toward this proof of concept stage gate is the signal that we need to focus on and continue to drive it, and the team is driving toward it in a very focused way. The initial results, as I mentioned, where the Corning relationship had got off to a great start, and we're continuing to progress with them. They're material science experts, and we're very happy to be working with them.
The discipline, I think I spoke about in late 2025 and how important it was to have a culture of discipline. This execution is starting to bear fruit. Every Friday, I have every engineer report to me what their work stream is, what the status is, what their blockers are, what can I do to support them, what resources do they need, how do we prioritize their needs versus other work streams. This allows everybody in the building to have a shared understanding of what is our priority, how do we help each other, how do we uncover our issues so that we solve them immediately. That kind of culture of truth-telling and purposeful connection and collectivity is so critically important for then getting to the root cause of what our challenges are.
When it comes to that leakage, you'll see the performance improvement in the next page, and that is the exact next couple of pages, and that's exactly what we're doing week by week by week. Every day prior to our Friday meeting, are meetings that then drill in even further into each of those areas. There's transparency across the organization, there's organization, and importantly, there's discipline. We're following the industry standard product development process that our customers do, and what's right now in front of us is our proof of concept phase gate. I would say we've achieved a major component of that. Now we're focused on repeatability and bringing that product to customers.
The team. This team rebalance was critically important, and bringing the right expertise in the building while also bringing the current expertise, the people who've given their years of service to this company, bringing them along and helping them evolve into this new model. I'm really pleased with a team that has really low ego, really focused on what matters, and everybody's working together, and I very much appreciate that. One area of the team that also needed shoring up was our data infrastructure. To move to the cloud, to have actual real-time data analysis. At the end of the day, what is battery performance? It's the data we need to then analyze to then go and do root cause analysis upstream. Having a modern data architecture where machines and people can talk to each other real time.
When people are maybe out of the building, they can talk to the machine, and they can also get the data. They can analyze the data using the best tools, using AI. These are the things that we're bringing to the company by bringing in the right talent and bringing in the right resources and tools, and modernizing an infrastructure so that it can do what we need it to do when it comes to the battery. I have to admit that the talent, because we have such good talent and we're attracting good talent, that is becoming noticed by the industry. We do have a talent retention risk that if there's one thing that I get very concerned about always, it's the people. I very much care about our team.
Losing people is never easy, and I'm concerned that there are some heightened risks in the industry. Again, it's about our value proposition and bringing people who have the grit and the heart and the commitment to doing the hard stuff, which is electrons and battery development at a very small scale. I wouldn't be anywhere else because it's the hardest challenge I can find, and the people I've had surrounding us and surrounding me feel the same. We're locked elbows ready to go, but there will always be that person who gets an offer that's going to pay more than what we're able to do. Again, we're focused on the team, the values we have, the focus we have, and the mission we have in front of us, and I'm still very excited about that, and so is the team.
Manufacturing. First principles. This is, again, as I mentioned, we're dealing with electrons. Electrons are part of a molecule, right? Part of an atom. We're talking about the very fundamental essence of our physical world here. The movement of these electrons, the movement of these very tiny elements that we're talking about between lithium, all of the nitrogen, the oxygen, all of the cobalt and the phosphorus, all of the different elements that we engage with or our materials engage with. The manufacturing process of this is equally important to the cell design. This manufacturing expertise, getting down to first principles of our laser etching. Well, why was the laser off? Well, we have to understand then with the focal point of the laser.
Getting down to the specific root cause of why something happened and then bringing that back to the first principles is what you're seeing in results right now. Lean standard across manufacturing. This is manufacturing 101, to be honest. Having processes that are documented that are followed and that are actually then changed. If there's an engineering change, then that process goes along that disciplined process. This may sound very boring, but it is so critically important to that repeatability because when you have beautiful results that you got in front of a customer, but you can't go back and find how and why you got it, you don't have results. What we're doing is we're paving the way so these results, when we lack repeatability, we can quickly go back and see what that root cause is.
All of this adds speed and time, speed and acceleration to results. Now to the financials. We had a bit of revenue in the quarter from some strategic development activities, which we're pleased about. Our EBITDA for the quarter, minus the restructuring expense, is about on par to this time last year, but without the restructuring expense, we're substantially lower. Q4 was certainly higher. If we look year-over-year, we're about par, but do consider that part of that was restructuring expense. The meaningful thing here is that by moving from a mass volume manufacturer, let's manufacture as much as we can, we're focusing on, well, actually, let's manufacture good stuff. Let's manufacture high-performing product. We don't need to manufacture as much.
Our material spend has gone down considerably, as well as we did a major cleanup of the building, and we're able to now use materials that are in the building rather than having to go out and buy new materials. Just doing inventory control and cleaning up the shop that we have, we've been able to save substantial amounts of money, and we will continue to do that because it's about being lean. It's about the 5S, which is about sort and being clear and being very orderly about our manufacturing to Japanese framework. We will continue to be very careful about the money we spend on our R&D materials. Lastly, as I mentioned prior in the last page, this building renegotiation is critically important.
We've taken advantage of the fact that the building changed ownership in April. Immediately, even prior to that with the new owner, we were signaling and having conversations about what we needed to do. There are shared interests, I believe. It's a timeline question of now being able to find. We certainly have our line of sight to possible locations. Now it's a matter of planning the relocation. The great news is the COO has tons of experience. We already have a general contractor ready to go. The team is ready to go. We have line of sight of a new building. Now it's about renegotiating this exit. Timing is TBD, but believe me, it's a high priority item because these fixed costs have to be restructured. As I mentioned, they are 50% of our cost burn, and one or two levers make a substantial impact.
Let's get to the meat of the story here. This is what gets all of us excited here, and that is, if you see this graph, what you want in a battery is for the battery life to continue over the length of the product. I'm sure all of you have smartphones. If your smartphone battery in about a year and a half starts to die, well, that's because its cycle life has degraded past an appropriate threshold. Here at 250 cycles, think about that as almost a year of service of an equivalent device that you charge every night. Obviously we want to increase that number.
We want this curve to be flat, flatter certainly, but the rate of change, the rate of improvement from where we were to 50 cycles, that's not even two months of a product, to 250, this almost order of magnitude difference, this is a substantial improvement. The industry benchmark is 80%, but for a new battery, 70% is certainly permissible. 250 cycles is a marker, a mile marker for us. We're obviously shooting for a lot more, but the rate of change by being able to say what we fixed and now this is what we have, now we know what we need to fix to get to the next one. The performance-driven development allows for us to then find those areas of improvement and then go after them and do them.
As I mentioned about our program reviews, having that full visibility, the team then collectively provides input, and what we're getting is new creative ideas from people who were otherwise quiet before. That to me, as a leader, is something that I love more than anything, is getting these wonderful ideas from PhDs who are experts in their field. They had just been quiet. Now we're bringing the collective wisdom of the team together, and that for me is where we get these wonderful levers to then move our performance in the right direction. Obviously, continued development is underway, but I wanted to share this with all of you to show that we're on the right track, we're making meaningful improvements, and the physics do indeed work, and now we're focused on repeatability.
When it comes to Corning, what we're doing is we're taking a material and turning it into a product. These little boxes at the right are our cyclers. The material, we put our battery technology on it, we put it into our cyclers, and we show this data on this field on the chart in the middle. If you see a trend line there, it looks about the slope of zero, practically flat. We've gotten over 100 cycles, again, a very important indicator toward physics that work, and a product that has the potential. We're excited about what we're doing with Corning. It's an excellent partnership, and we're working on encapsulation and other opportunities to bring this into a full-fledged product.
We're also collaborating and looking at the commercial pipeline and how we bring this to customers and already making extremely exciting progress there as well. Very pleased about the progress we've made in this quarter. The other thing that's quite nice about this is that cell after cell after cell, the data looks very similar. As we call in battery talk, it's clean. It's very interesting to see the repeatability here and how we're able to have that when we have a single Ribbon Ceramic lot. The repeatability is very interesting. Again, focus of ongoing improvement. Certainly, we're in the early innings here, but reason to be excited and certainly encouraged about the progress.
Consistent with what I've shared with you before, and I believe dating back to my very first meeting with investors, the product development process is the backbone of any hardware product, getting a product to market. We can't race to the finish line because then it doesn't help anybody. Building value, building progress one step at a time. These are building blocks that are so important. As I mentioned before, the process, the engineering part, the manufacturing process, having a process that's defined, and then the operator doing that process is actually doing what was defined. That discipline is new, and that discipline is what allows us to then have the traceability back to say, "This cell didn't perform that way. How do we root cause it?" We can go back to the process.
All of this development is proof of concept in the sense that we can't have a proof of concept product without having both a product performance as well as the manufacturing repeatability, because we have to have that locked down before we get into engineering validation. Engineering validation is when you ruggedize the product, you put it through more rigorous testing. You start to see the end-use application, and you integrate those ambient conditions of that product. Is there vibration or temperature or packaging or use case, or whatever that might be, altitude, whatever that might be. The complexity starts to build on itself. Design validation is when you have design freeze. It's a production intent design. You start to have production intent tooling. You start to ramp that up.
That's when the high volume manufacturing definition is so critically important because then you start getting into production validation and that high volume manufacturing. All of these steps have a purpose, and there's always the purpose for doing right by the stage you're in, and that is our focus here. Right now, what matters is quality. I know that there's a lot of desire for speed out there, and believe me, I've heard that before, and I've seen that, but that will not help us. What is so critically important right now is quality of execution. Believe me, we're working as fast as we can, given the resources we have. What we've accomplished, the innovation stage is what happened before I got here, and I would say I arrived at the tail end of innovation.
What I've done is converged us rather than divergent ideas and new ideas that are being generated every day. I'm converging those great ideas toward a workable, repeatable, high performance product. That requires the testing, the definition, both in terms of the product and the process. We are focused on these evaluation agreements. Certainly, those are helpful, but what I'm focused on are really long-term, meaningful customer relationships which require this platform validation. The platform validation is so important to being able to have a product that we can ship that is predictable, and that when it shows up to the customer's site and they can't get to it for two weeks, we know how it's going to perform when they actually go and test it.
All of these discipline steps right now may be very boring to the outside world, but I have to tell you how important they are to the customer in delivering a predictable, repeatable product. Right now, we're also preparing for that long game, that design validation step. What does that pilot line need to look like? Where does it need to be? What incentives do we need to get from government to be able to get that pilot line at a better cost? We're doing all that right now because we don't want to do that too late, a lot of the stuff we want to do in parallel. That is work that is ongoing. Certainly, the customer development programs, right? The engagement with customers, being focused on what their application is.
We have had discussions with customers ranging from a 15-day dispensable battery to a battery that's in situ in a pet, to a sensor for different people, humans and pets and robotics. The discussions are vast, and now our focus, our next steps are to really focus those and prioritize the highest value opportunities. Speaking of, we continue to have really impressive marquee customers, marquee companies coming to us with various ideas. This shows this demand in the market is truly something that I've seen markets where there's demand, and this is beyond that demand. On top of this, we're looking at where our battery becomes a solution to a much higher value application. These are not just batteries that you find at your grocery store, right?
These are batteries that are going to perform something very meaningful and unique for a customer that will enable AI and enable greater functionality and the miniaturization of these units. Lots to come here. I'm excited now that we have the table stakes performance out of the product. We have the ability to now and the right to have a conversation with these customers because what they want to see is data. Now we show the data, and now they're more actively engaging. Our financials, as I mentioned, they're relatively flat year-over-year.
We did change the capitalization of the R&D because I believe in transparency, and I think that we might as well show that as to what we're spending on R&D. Considering that we had restructuring charges, given the shift to the product-led model in Q1, these are actually then substantially down year-over-year, pulling that out. As I mentioned, the shift to the product-led model in terms of quality versus quantity has allowed us to have a substantial reduction in our R&D materials. We anticipate that that's going to continue to be on the right trajectory. The critical thing for us now is that if you look at that number, 50% is fixed.
50% comes from long-term agreements that are years, years old, that need to be restructured to the company of the size that we are so that we can be nimble. We can invest that money in people rather than in rent, rather than in heating and ventilating a building that's too big for us. That is a key priority for us, and we're actively focusing on that to continue driving down these costs for our investors and to drive us into the lean capital model that I know we can achieve. To wrap up, Q1 was about laying this important foundation. What we're seeing at the end of that foundation are the results that matter. The results of the foundation show that we're on the right track. We are focused on reliable delivery. Already we're seeing certain reliability out of our product.
We are sustaining our product. We are engaging our partners, and we have sustained partner engagement there, and that is a focus, as you'll see, for Q2 and beyond. We are positioning the company to scale, and that also means which partners are the ones that allow us to scale. It's better for us to spend time now and be strategic about what are the right partners. Let's not just go out and get a partner. That's somewhat arbitrary. What really matters is who are the right partners. We've taken a pause, not a pause, but we've really taken a moment to focus on who are those partners. We're continuing the negotiation with certain partners. We're also now speaking with some very interesting partners that I believe are in the right direction for us from an engagement model. That all allows the company to scale.
Scalability and hardware, anything having to do with capital is about table stakes. The last thing as investors you want are five customers, 10 customers, and 10 different products and 10 different product lines. You don't want that complexity. You want the minimized hardware capital spend, minimized pilot line, and minimized streamlined hardware with a maximum amount of applications. That scalability is a term that you'll probably hear from me a lot. Hardware scalability is so critically important. When I've been part of hardware successes in the past, it's largely due to scalability and having the right product at the right time and the right market and the right scalability, the right cost structure, and the right foundation to scale. We will continue, and we've certainly demonstrated our ability to have disciplined execution, and that's something that we will continue in the next quarters.
What you'll see, what are our priority areas for the rest of the year? It's the platform validation. When there's a lot of stuff going on and the world is noisy, the signal to that noise, the real important thing that is so critically important is that product and validating the product. When I say platform, I mean our battery platform. Within that platform are our products that we are focused on. Having defined product requirements. We can't build everything for everybody. That is also not something that anybody can be successful at doing. We have to validate something toward customer applications or market applications that are scalable. Having that product definition and locking in those specifications is that critical for that next step past proof of concept into engineering validation.
The commercial side is absolutely top of mind, critically important for us as a priority area for the rest of the year. This customer demand, translating that into scalable, meaningful, long-term partnership engagements, that is the fun part. That is the part that we are doing. Having these taking evaluation agreements, which were just samples to be evaluated, turning those into meaningful discussions around what do these customers want to achieve with a battery? What value do we bring? That also then translates into pricing. We need to understand these applications for our financial model down the road. Lastly, the scalability, right? The platform partnerships that can unlock scale. The capitalization so that we can retain our talent and have these long-term fixed costs restructured. The fixed cost restructuring will take some time and will take two quarters at best.
We need to actually have that capitalization to do that. There is fruit at the end of that process. The restructuring opportunity is on the order of about 45% to be able to reduce the cost structure. Of the level of fixed costs we have, the ability to then reduce that is truly substantial, and it is why we're spending our time doing it. It will take capital to do that. The manufacturing processes, making sure that these are scalable. That is so critically important. Lastly, this infrastructure. It comes down to the manufacturing process, the manufacturing tools, the data infrastructure. Let's not underestimate the importance of a modern data infrastructure that can enable AI, can enable seamless communication between engineers and engineers to the machines and to the data. This seems like it should have been done already.
This is something that is table stakes and is something we're investing in to bring this to the modern times and actually have AI as an enabler for our battery development. All this to say, we're excited about what comes next for Ensurge. We're powering what comes next here at Ensurge. We're developing batteries, moving electrons in tiny micro form. This is something that is a challenging manufacturing effort, but something that we've proven is capable. Now our job is to make it repeatable in customers' hands with a fixed cost structure, a cost structure that is scalable, and a product that's scalable, customers that are scalable, and a model that will allow us to be the leading battery company in the world because what we're doing is enabling the first of its kind, the first to market. We're enabling new markets for AI-driven devices.
Something like this hasn't been done before. The level of excitement that can come from this development is truly world-shaping and life-changing for people across patients who have an implantable, across companies that are trying to move goods with smart sensors, to militaries with micro drones, with all sorts of opportunities. Energy right now, energy in small form, putting electrons in the box. We're putting more electrons in the box than any company in the world right now, arguably. What our job and what we're excited to do is bring that to the world where we're on that path, we're with the right people, and we appreciate your investment, and we are looking forward to what comes next for the company. Thank you very much for your support. I know it's been longer than many of you have wanted.
I'm here to tell you that it's worth it because the opportunity ahead of us is monumental. This technology is real. The technology has so much promise, and what we're doing next is putting time and people and opportunities together and realizing that opportunity. I'm on a mission to bring a new category of batteries to the world for a next generation of devices. I'm so grateful to all of you to be on that mission with me and to my wonderful team here at Ensurge, who spend their days with me as we drive toward this mission. I really look forward to what comes next for this company. Thank you very much. Very much appreciate all of your time, and I look forward to answering questions in another setting. Very much appreciate your time today, and thank you very much.