Earnings Call: Q1 2026

May 15, 2026

Summary

Q1 revenue rose 10.7% YoY and losses narrowed, while signed and probable orders covered 99.7% of FY2026 revenue guidance. Growth plans include international expansion and a 2027 data-center energy product launch.

Hello, I'm Masahiro Ito. I'm the co-founder and CEO of PowerX. Thank you very much for tuning into our financial results briefing for Q1 2026. I'd like to start off with a summary for this quarter. A couple of things that I want to point out, because this is going to be a long presentation, and I hope you bear with us, but there is a lot of information. First of all, we're trying something new. There's going to be an AI-readable version of this document. It's a MD file, and you can download it, and it's designed so that you can feed it into any AI LLM and really do Q&As and completely understand what's in the document. Please give that a try. That's in the QR code you see here. The summary. Number one, we have been able to achieve both revenue and profit growth year-over-year for fiscal year Q1. We also are at 34% of our production progress for the entire year. We're ahead of production right now. We have plenty of inventory. 34% of inventory, basically, of the sales guidance this year has been created. Order backlog. We've actually added JPY 8.9 billion since February. Just in the past three months, we've been able to add a lot of new orders. We are facing a very good environment. Lots of strong tailwinds in not only Japan, but overseas as well. We've actually started something new with a global strategy. We're going to be going beyond Japanese borders, and I'm very excited to tell you about that, and possibly most excited today to tell you about a brand-new product that we have coming up very soon. I'm going to go into the financial results, and I'd like to explain our consolidated financial results for the first quarter. In Q1, revenue was JPY 1.94 billion, up 10.7% year-on-year. Operating loss improved by JPY 106 million year-over-year to JPY 697 million, and net loss also improved by JPY 215 million year-on-year to JPY 1 billion. As a result, we achieved both revenue growth and improved profitability year-over-year. As in the previous year, due to revenue seasonality, progress against the full-year forecast remained at 5.1% at the end of Q1. However, we have secured orders that have reached 99.7% of our expected revenue this year, and we believe we are absolutely safely on track to meet guidance. Gross profit margin was 34.6%, and gross profit totaled JPY 673 million. Gross profit improvements can be attributed to a strong performance in battery operation services, along with temporary high-margin projects in the EVCS business. Although these are strong, as explained in our last quarter call, we are cautious constantly and still expecting an increase in battery costs in Q2 and beyond. SG&A expenses totaled JPY 1.37 billion, representing only a 1% increase year-over-year. As a result, operating loss, EBITDA, ordinary loss, and net losses have all improved year-over-year, and we believe overall performance is progressing very well. Next, I'd like to explain where we are in production. While revenue recognition is seasonal, production of our product remains constant throughout the year. As of the first quarter, production progress reached 34.6% of our annual production plan, progressing steadily without any operational concerns. As our product is mass-produced yet made on order, we produce inventory for contracted projects and do not accumulate stagnant inventory. Everything we make will be delivered, and everything we have now will be delivered this year. Next, I'd like to touch on quarterly performance trends. In both FY 2024 and 2025, revenue was heavily concentrated in the fourth quarter, and we expect this trend to continue this year as well. Please note that the chart is an illustration of how revenue would progress per quarter and not to be seen as specific financial guidance. Speaking of the rest of the year, we expect larger revenue starting in the third quarter as larger projects require deliveries to start early, so the third quarter revenue expected to be relatively larger than years before. We expect gross margins to trend within our original assumptions, despite first quarter margins being better. As mentioned earlier, we see first-quarter margins being elevated due to some one-time factors. I'd like to provide investors with some additional context regarding our seasonality and its causes. For our customers that use government subsidies, battery installments must be completed and reports be filed by January 19, 2027, as a requirement of those subsidies. As a result, working backwards from the submission deadline, installation delivery of the batteries must be completed by the end of 2026, which is one of the primary reasons our concentration of deliveries is in the second half of this year. In any case, there's nothing that we want investors to be concerned about for timing because battery handover and delivery dates are agreed upon with our customers at the signing of the purchase order and do not allow for delays purely on our customer's readiness. If the customer is unable to accept a delivery due to delays on their side, ownership of the product is transferred at our factory on the date agreed upon in the contract. I'd like to dive a bit deeper into each of our business segments and highlight some notable trends that we're starting to see. For BESS, battery energy storage, in addition to our own products, we've sold a record number of third-party peripherals, namely power converters and other control equipment needed for battery power plants. As sales and installations increase, we're expecting to see an uptick in maintenance and operation revenue as well. For our Power business, we not only sell energy to customers, but provide a vertically integrated development business where we procure and construct battery power plants on behalf of the customer and operate the plant. This is why we recognize peripheral equipment sales here, along with sales of our battery products. What's common across these businesses is the fact that revenue from our own products usually carries the highest profit margin, which can sometimes affect how profitability will look for these businesses at a certain moment in time. Next, let's look at performance of each of our business segments. First, regarding the BESS business, profitability may look weaker than last year, but this is due to revenue recognition of third-party peripherals that have increased in this first quarter. Keeping in mind that these third-party peripherals are just that, overall profitability is anchored by the higher margin of our own products, and as deliveries of our batteries progress, we expect profitability to improve. In the Power business, battery operation services performed strongly, resulting in 157.4% revenue growth and improved profitability. For the EVCS business, revenue was largely flat year-on-year. However, profitability improved due to several high-margin projects. Next, allow me to explain the breakdown of SG&A expenses. Total SG&A expenses were JPY 1.37 billion, representing only a 1% increase year-on-year, despite revenue increasing by 10.7%. Looking at the breakdown, sales and marketing expenses increased as they are essential to expanding revenue, while G&A expenses were kept under control. Overall, we believe SG&A expenses are being managed in line with expectations. Next, I will talk about signed orders. The chart you see here only consists of definitive contracts that have been signed, so everything is done here. As of December 31, 2025, signed orders were approximately JPY 37 billion, which increased to JPY 47.5 billion as of March 31, and further increased to JPY 69.5 billion as of today. We are happy to see this trend and expect it to continue for the foreseeable future. Next, I would like to compare this with the revenue forecast disclosed in our full-year guidance. As you can see, against our fiscal year 2026 revenue forecast of JPY 38 billion, signed orders alone have already covered 93.8% as of Q1. Including probable orders, coverage reaches an almost complete 99.7%. We still have multiple months of sales left, so we are very confident that we will meet our sales guidance for this year. Finally, I would like to briefly explain the consolidated business balance sheet. Borrowings totaled JPY 2.25 billion as of the end of the first quarter. In addition, we were able to increase the commitment line from our lenders to JPY 8 billion, and we believe we are well positioned to address working capital needs towards the second half of this fiscal year. Furthermore, to finance our new Hokkaido factory and expand our main facility, which I am now in, we are currently in discussions to increase long-term borrowings, and financing arrangements are progressing steadily. Okay. Let me talk more freely about business highlights. Our order book, what does it look like? For 2026, as I just mentioned, we are at JPY 37.9 billion. For 2027, JPY 42.1 billion. For 2028 to 2030, we are at JPY 8.9 billion. Overall, new orders we have been able to sign since February, just in the past three months, we have been able to sign JPY 8.9 billion in orders. That means we have taken probable orders and signed a lot of them. If you look at 2027, for example, we have added JPY 29.1 billion in signed definitive agreements. There has been lots of progress there. As for probable orders, we are now in the second half of this year's cycle of order books. I want to talk to you a little bit about our pipeline. The next page. Looking at generally where we are headed, the trajectory of the company, I remind you that revenue was JPY 19.3 billion last year. We are looking like we are going to hit JPY 38 billion and more possibly this year. Of course, we still have 15 months until the end of 2027. Within this one year, we have been able to do a lot. I expect us to do a lot more than what we are looking at in JPY 42.1 billion of the order backlog as we have today. To shine a little bit of light on the future, the gray bars on the bottom. This is in gigawatt hours and not in yen. These are for actual projects where we are negotiating deliveries, prices, contracts. Within our sales pipeline, these are what we call high-probability projects. Once we get an order, then you see them as the pink, and we put a price on them and disclose that. For 2027, we have another 1 gigawatt hours that we are literally closing right now. For projects between 2028 and 2030, we have a very strong 3.7 gigawatt hours. 2027, 2028, and beyond, from our perspective, is looking very positive and we want to go ahead and close these deals as soon as we can. We hope to do so again within the next three months. Other updates, and I want to give you especially an update on the Japanese market and where it stands for energy storage. There are four things I would like to talk to you about. These are just simply facts of the market today. Number one is the balancing market. The balancing market is the EPRX in Japan, and the EPRX market has changed fairly. The policy has changed from April this year, and on the next page, we can try to explain that. The balancing market basically is set at a ΔkW range, and because it is a free market, however, there is a price limit, the limit. The previous price cap was JPY 19.51 ΔkW for 30 minutes. New policy regulation came in and lowered that price range to 15. The market, people trading in the energy industry were worried that perhaps this would take a toll on battery revenue. But after the change, the market is very stable at around JPY 12.27 is average ΔkW 30 minutes for April, and it seems very steady. To be honest with you, the IRR on the batteries have not really significantly changed. It is still probably too high, extremely high. We expect this to normalize at some point. Right now, if you own a battery, it is very profitable right now, and that is great. It helps us, it helps the owners of the battery, but of course it creates a frenzy where everybody is trying to connect to the grid, and grid interconnections can be slower. Honestly, PowerX has only seen a benefit from this situation, but we should not expect it to last forever. I just want to remind our investors that even at JPY 7 ΔkW, we are still looking at a 10% IRR. So it is still very healthy as an energy asset to own, even at a much lower ΔkW cap. So it is JPY 12, still very, very high, but this has changed, but not negatively. Moving on. The second change is actually quite positive and it came as a little bit of a surprise to us as well. The JEPX market is where electricity, it is about 40% of Japan's energy is bought and sold. 60% of Japan's energy is direct contract or vertically integrated, so they're usually PPAs or they're companies that have long-term agreements, whereas the JEPX is literally a free market. This free market has seen an influx of what used to be PPAs have come to the market, and those happen to be long-term oil and gas power plants where they do big block trades inside the market. On the next page, you'll see that arbitrage, so basically the spread of energy pricing during the day, has increased incredibly. What we're seeing right now is during the day, energy is very, very low, and then at night it's very expensive. That's because, and I have a whole separate video, I've spent about 45 minutes talking about this market, and it's on YouTube. You can watch it. We have English subtitles, but this is a systemic change of what's happening in the market. It is not driven by what's happening in the Middle East, for example. This is just what it is right now. You're looking at maybe JPY 50 per kilowatt hour in the spread daily. If you own a battery now, you have that arbitrage and it's only gotten bigger since April, and we expect it to last for a while. If not, this might be normal for a while. This has really been positive for batteries. Number three, the cost of new entry, Net CONE. This has been revised. If you're building a new power plant, which includes battery energy storage, you're able to receive CapEx assistance by the capacity market auction. This auction exists, this is set so that we have enough power plants in the country four years from now to make sure Japan doesn't run out of power. That's why this auction exists, and it's called the capacity market auction. On the next page, you'll see that the Net CONE, which is the total cost of constructing a new power plant, minus the revenue of markets, becomes what the auction will pay you. It used to be JPY 10,000 a kilowatt hour, now it's JPY 20,500 per kilowatt, and it's looking like we might even see up to JPY 30,000 kilowatt. This is all due to Japan sets this price based on the cost of a new gas power plant, and so construction is more expensive, things are getting harder to procure, labor is harder to secure, and hence the production cost and the construction cost has gone quite a bit higher. A cost of new entrant is higher. Not so much with a battery power plant. If you're building a battery power plant, the costs aren't as high, but you're still privy to the same support from this capacity market. If you're building a power plant four years from now, this is a great thing to have and again, another thing that's helping propel adoption of energy storage here. The last thing, JC-STAR. This is very helpful for PowerX, and something that we actually truly believe in. This is very important. On the next page, you'll see that JC-STAR, which is Japan's own certification for security compliance, is now mandatory starting April 2027 for high voltage and October 2027 for low voltage. In other words, you cannot connect a battery system or a power converter to the grid that does not have a JC-STAR certification. Many foreign battery suppliers do not have this certification, and there are only a few of us that have it here. This has actually been quite a bit of a plus for PowerX. We have JC-STAR 1. We're in full compliance. We expect to be JC-STAR 2 and 3 as they come out, of course. All of the software code that is running in our batteries, all that control is ours. We are very proud of our security and having this certification has really propelled us to gain traction and market share here. All right. I want to go through each business, and then talk about international strategy, and then I'll talk about new product. BESS, our main battery energy storage, doing very well. We have lots of signed orders, lots of new things in the pipeline, lots of things that have commenced. We have lots of commissionings. I wouldn't say daily, but weekly. All of our customers right now are very happy. Everything is operating very smoothly. We notably recently started operation of some of our customers, maybe I'll name a few. Toyota Motor East Japan. Their factories now use our batteries for a microgrid. We have, for example, Imabari Shipyard has launched as well and of course, multiple battery energy storage plants just very recently. You can check out press releases of many of these that we have announced. There's a whole bunch that we don't announce due to the customer's preference. You can check these out by the link here. PowerX, where we sell energy. This is actually very interesting. It's something that makes us unique because we not only sell batteries, but we are able to operate the batteries on our customer's behalf because we have a license to do so. We have a license for retail electricity sales. We can be an aggregator, we can do tolling, and we can also build new plants and operate them and do a full vertical integration for our customers as well. That is actually seeing a lot of traction recently. We're now seeing these battery power plants get bigger. One installation is now like 100 of our containers. Some of these owners, a lot of them are financial institutions, they want maybe 70% of the revenue to be stable. They want an offtaker and then maybe 30% to be operating all those markets that I mentioned earlier. It's really strong for us competitively to be able to offtake that 70% and deal with the tolling and operate that battery farm for our customer. This vertical integration is bringing new, and it's the very bottom line of this PowerPoint, sales of battery energy storage bundled with power plant operation. This is seeing a lot of traction. Recently, we've started basically operating our customers' battery power plants. We now operate 17. That's up 10 sites from February, so high growth here. Because of the situation in the Middle East, we had actually stopped selling retail energy to see what was going to happen. We've recently restarted because things have settled down a little bit. That's why we only have nine new sites with 3 MW additional. Again, this is geopolitical, if you will. On the bottom right here, this is what I was talking about. There's a lot of customers who want us to operate the battery power plant and also buy the batteries from us. This isn't our main sales unit, this is our power unit. They actually are looking at 1.5 GWh of projects within the next three years. We're looking at huge potential in this growth area for this business. Okay, so I'd like to talk about our international expansion. Something that makes me very excited. Japan's a great market and we will continue to grow in Japan for the next coming years. However, if we want to continue our growth rate, which is already very high, but we want to continue doing that for three years, probably okay, but four, five years, we have to add new markets to the mix. We have to expand our addressable market. We need to start early. This stuff takes time. We have four criteria that we have to hit before we enter a new market. Number one is, yeah, that market has an addressable TAM. It's big enough to sell enough batteries. If the market size is too small and we can't get 100% of that market, it's not worth it. If it's a big enough market, we can do 20%, 30% share there, it'd be great. Number two is it's competitive. In other words, it's something where it's not too crowded. Because of the geopolitical nature of energy, because of where the world is right now, let's be honest, there's a lot of decoupling happening. There are plenty of areas in the world where our competitors from other countries are having some issues or cannot enter at all. Those are places that, as a Japanese company, we're going to try and enter. That is the second bit. The third bit is cost. We have an internationally competitive price on our batteries, and that's why we're pretty good everywhere. I think we can compete almost anywhere in the world, but we have to look at that. We have to make sure that our gross margin is safe, and it makes sense at our price to enter that market. Number four is strategic geographic fit. If we're going to be shipping product there, if we're going to be assembling there, it has to make sense. It has to be friendly with Japan, I think, with a Japanese company. It's kind of no choice. Yeah, we're looking for good geographic fit. If we can hit all four of these, we decide to enter the market. Let's talk about Europe. Europe is very interesting for us. This year, lots of new changes are happening. It's a flurry of changes. It's kind of the decoupling that I was mentioning earlier. There are now very strong restrictions on, quote, "high-risk countries" for PCS and inverters. You need a PCS to connect a battery. There's a lot of shuffling happening in some of these markets that we may be interested in. We're also interested in a factory in Europe where we can assemble, something like this, but in Europe where we can make assembly, and that really helps our strategic competitiveness there. Europe is very interesting, which is why we have gone ahead and signed an MoU with Montenegro's national utility, EPCG, for a strategic cooperation on energy storage. This is something that we've been working on for a while, and we were able to sign the MoU. I was there literally last week. Then we're trying to enter a definitive agreement within the next six months. This MoU explores 500 megawatt hours within the first three years, but to be honest with you, I think the potential is very high here. Let me explain why Montenegro, because I think I got a lot of questions about that, and why it's actually a really good idea. Montenegro's energy grid is predominantly hydroelectric. They have two really big dams, but they don't use that much power domestically, and the EPCG chairman is quoted as saying, "Solar power plants and battery systems is our oil." They're looking to export. They also have a grid that's connected to multiple countries, one that is underwater directly to Italy, and pass-through electricity also is a big market. Energy storage can help sell the right energy to the right people at the right time, in other words, the right price, and also alleviate some of that flow of energy by creating more capacity. Energy storage really actually does make sense to deploy within Montenegro, but in our opinion, Montenegro can be a really good partner for us. What we really want to do is we want to work together and explore the regional markets. We've done some calculations. We did our math. It's in the document. You can look at it later. Just in the Balkan countries, we're looking at maybe a TAM of 600 megawatt hours a year. Romania, Greece, Italy, when you combine all those, we're looking at just shy of 2 gigawatt hours a year, and that is suddenly very attractive. This area of the world, in our opinion, hits those four prerequisites that we have for market entry, and we're very excited to potentially explore production there as well. If we were to do a joint production facility in Montenegro, we could literally ship product by truck, by railroad, by ferry to the neighboring area. Montenegro itself is supposed to join the EU in the next two years. This is very exciting for us to see where we can join in that journey. These are just the calculation logics for what I just mentioned. We did the math. Please check it out if you're interested. That was Eastern Europe. We think we have very similar opportunities where those four prerequisites can be met in Southeast Asia, in Africa, and possibly in South America as well. We're going to look at markets that we can make an entry and our price fits and the Japan angle works. I'm looking for partners that we can expand in. Our goal really is to have footholds in these countries within the next year, 2 years, so that that can all create revenue for us by the 2029, 2030 timeframe, so that we can continue growing at the high rate that we are today. This is literally the last thing I want to talk about today. Thank you very much for staying with us this far. I apologize, it's a lot of information. Data center products. We announced the Mega Power DC. This was a modular, containerized data center where you could put a battery rack, and this would help because you don't have to build a building to install a very low PUE, very efficient liquid-cooled data center. We'll announce a new product today, but I just have one update for this product. The one update is that in the last investors call we told you that we would be doing a contract manufacturing. The customer would send us their custom rack, and we would put it in the device and hook it up, and then we'd take a fee for contract manufacturing. In the future, hopefully, we would be able to offer a packaged solution. That future came a little bit earlier than we were expecting. We are now talking with Dell Technologies and evaluating a packaged offering combined with Dell's AI factory racks, NVIDIA Blackwell Hopper series, and we're trying to get this fully packaged into something that our customers can buy from us. Updates coming on this, we need a little bit more time to flesh this out. I want to make sure we're doing really well before I raise any expectations. This is really progressing quite well, I'd say. Today, I want to introduce a completely new product. If you're looking at the news, there's no noticing that we're now competing for power with computers. All of these countries, all these areas in the world, a huge chunk of new energy will be going to data centers. This is not trivial. This is very difficult to do. What's happening now is data centers need to be working with the grid. Back in the past, you're a customer of the grid, you're buying energy, you ask the power company how much you need, you get it done. This isn't so anymore. We're running out of power globally. What you need to do is we need to adapt data centers and curtail the power usage of data centers and work with what the grid can offer. We were looking at this and said, "Well, maybe this is something we can do. We can help because we do lots of energy management." Again, our company's vision is to create a sustainably prosperous future. We got to thinking, how can we address the energy challenges arising from the rapid growth of data centers? We came up with this idea. When there's not enough power, it's really, really simple, but this is the gist of it. When the grid doesn't have enough power, you're just going to have to power down a little bit. You have to change the workload that's running in the data center and run your clock speed lower and basically curtail the use of the data center. This is just all you have to do. But if you do that, you lose compute, and compute is revenue. Our idea is, well, why can't we do both? We optimize this process. The power does go down, but before it goes down and as it goes down, batteries lend a hand. We've done multiple studies. This is a test bench that we built inside our lab. It has a control computer, has a H200 8 GPU NVIDIA, 8 GPU server connected to it. To that computer, we also connect the power converter, our BMS, our battery, and then a grid simulator. What we did was we had the grid simulator running all sorts of grid instances. So fluctuations, deviations in frequency, TSO commands for curtailment. We did everything. Just as any battery ESS product would, our battery picks that up and sends it to the control computer, which is new, which is what we built. The control computer initiates this workload shift. It tells the NVIDIA servers to curtail, but it tells the battery to discharge, and it helps go through that process in the most efficient way possible so that at the end of the day, we do not disrupt the compute. The compute continues. On the next page, you'll see some of the data. Now, there's a QR code here, and you can scan that, and we have a whole white paper on our findings. We have filed multiple patents on this. We're very excited about the technology, and we'd love for you to read our findings, and I don't have enough time to go through them all here. But this graph, for example, you'll see the blue is the super high-power discharge from the battery, and then the orange is the rate of curtailment. So curtailed servers, server compute modulation is orange, and you can see that the battery supports the initial few seconds because there's no energy curtailment on the computer yet. But as the energy curtailment happens, the battery then follows that through and makes sure that no compute is disrupted. The yellow here is the grid signal. The grid's going all over the place on purpose, and the green is the battery, and the blue is the compute, and we've made sure that everything is sustained. So you're not losing any compute, but you're working with all of the grid events. We can go to detail. You can go to detail on the QR. I want to announce a new product. What we found. We found that by utilizing high capacity, high output battery systems, and control equipment for servers, AI infrastructure can respond to power grid events without sacrificing computational performance. So you can have your cake and eat it too, if you will. You can have that data center, and with our new product, you can run it even if the grid fluctuates, and actually, it can be a new revenue source for you. So efficiently reducing GPU workloads, we also discovered it's not that easy. You need to look at what's in the workload, the SLA, what kind of tokens it's using, and then you have to rematch and reposition all of those workloads, which we are doing. Here's the new product. It's called the PowerX Energy Blade. We put 2027 because we don't want to raise too many expectations. We can't ship this this year. We will ship it next year. So this is it. This is the Energy Blade. The Energy Blade is mounted in a rack, an OCP rack, and these blades with the X's, these are super high-power batteries. These are not like UPS. The density is much higher, the power is much higher, and it's more about the control. The control is grid-friendly. It works with the grid. I have a few more pictures of the product. This is from the side. It slots in and out just like with any OCP product, compatible product. Inside it, we have batteries, and we have a controller, and it's liquid-cooled. Okay. Specifications. The PowerX Energy Blade is the blade, one of those blades, and the energy rack is 16 of them in a rack. Each blade is packed with 8 C-batteries, so super high power discharge. We're talking milliseconds in response. It can do 49.5 volts, and each blade is 1-3 kilowatt hours in capacity, depending on the configuration. The Energy Blade rack can then take 16 of these and put them in one rack and provide 200-800 volt DC, and provide 125 kilowatts of power. In other words, you can take the newest, the most power-hungry AI rack and power it completely with one of these blade racks, and it'll take care of grid curtailments and grid incidents for you while not disrupting the compute of those very expensive and very profitable servers. So what can it do for our customers? Number one, it's a new revenue opportunity. I'll explain this very quickly next. Faster grid connection and possibly better contract with the utility and greater use of renewable energy. These three things our product can enable for our customers. The new revenue part is interesting. If you respond to the grid, if you work with the grid, you get compensated. This is for Japan, and multiple grid response, especially the FCR type of stuff, pays higher and better in other countries. Japan doesn't necessarily have the best market for this. This is what I mentioned much earlier in the video. But if we still are at 12 JPY ΔkW 30 minutes, having this product in a just installing, retrofitting a regular data center with one of these, this data center can do a frequency response now. It's enabled by these Energy Blades. You can make, with a 20-megawatt data center, up to 1.85 billion JPY of completely additional revenue per year, and that'll pay for the Energy Blade in 1.5 years or less, and this thing will last five. So it's very, very profitable. You can take what is currently a load on the grid and turn it into an asset that will actually generate revenue for you. You can retrofit data centers. When you are building a new data center, by having this, you might be able to get a faster interconnection because you do not have a peak, you can cut the peak. You can also get a better contract with the grid carrier, and there are multiple things that we can do for our customers, and we are very excited to bring this to market. This will be launching in 2027. We are announcing this today because we want to recruit strategic partners to implement the solution. As I mentioned, we are now looking global. We want to do this overseas as well. Japan is a great market for this, but it is small. The data center market itself is not as big as Europe or, of course, the U.S. We want to take this unique idea and move as quickly as we can into the world. But of course, for our investors, our fiscal year budget this year, our R&D, all that is not changing. We can do it within budget for now. Next year, when we make more strategic investments, we will let you know before we do that. This will not change how we land this year. Again, we think we are doing okay this year, and we will continue growing at a very fast pace into the future. This ends my presentation. Next. Again, I thank you for joining us for such a long call. Thank you very much for watching this video, being here with us. Here are some QR codes for details on the. There is a longer view, too, that really goes into the Japanese market. Then there is an AI-friendly MD file. It is a markdown file of this entire document. We have designed it so that it is easier, and it can be easily read by AI, and you can talk to the AI and ask anything about PowerX that is in the document. This is something new we are trying, and we are looking for your feedback. Hopefully, this is a good thing that we are doing. We will see. But please try that out as well. Thank you again. We really appreciate your support, and we will keep going. Hopefully, we will show you another strong quarter next time. Thank you very much.