Greetings, ladies and gentlemen, and welcome to the WISeKey International Holdings 2025 Interim Financial Results Earnings Conference Call. This call includes forward-looking statements that carry certain risks, uncertainties, and factors that could lead to actual results, financial conditions, performance, or achievements of WISeKey International Holding Limited being significantly different from what is expressed or implied. WISeKey is sharing this information as of today and will not update any forward-looking statements in light of new information, future events, or other circumstances. This conference is being recorded. It is now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of WISeKey. Mr. Moreira, you may begin.

Good afternoon to all of you joining us from Europe and the United States. I am joined today by our Chief Financial Officer, Mr. John O'Hara. And I'll start this call by providing highlights on the company performance and also on the subsidiary level initiatives for the first half of 2025. I will disclose the growth opportunities since the beginning of 2025. And moving forward, and then John will provide commentaries on our financial conditions in greater detail. Then we will open the floor to Q&A. I would like to provide now a short overview of the corporate structure. So WISeKey is a Swiss cybersecurity company created in 1999, which I am the founder. As a computer infrastructure provider, WISeKey delivers secure platforms for data and device management across various industries, including finance, healthcare and government, leveraging its route of trust technology and public infrastructure PKI. WISeKey is expanding its legacy technology into the quantum realm, building on its expertise in securing digital identities and enabling trusted communities. WISeKey continues to safeguard traditional encrypted communications and provide strong authentication services to governments, enterprises and consumers worldwide. At the same time, WISeKey is pioneering the transition toward the next generation of security through post-quantum cryptography, what we call PQC. This dual approach ensures that existing infrastructures remain protected today while preparing them for a future where quantum computers will challenge conventional cryptographic standards; it is being projected to happen in 2030. So we have only a few years to get ready. By integrating PQC into semiconductors, IoT and digital identity solutions, WISeKey is setting the foundation for a quantum resilient digital ecosystem, ensuring continuity of trust and privacy in the post-quantum era. So WISeKey operates also as a holding company, encompassing several specialized operational subsidiaries, each subsidiary plays a crucial role in the WISeKey ecosystem contributing through independent research and development and expertise while integrating their technology into the overall WISeKey platform. These businesses are no longer operating as separate entities, but as a single interconnected ecosystem, what we call the convergent effect. Specifically, these companies are SEALSQ, which is now known as a listed company on the NASDAQ under the symbol LAES, focusing on advanced semiconductor technology and it's coming with a world first in November of a post-quantum chip. WISeID offers Root of Trust and PKI services central to the WISeKey digital identity and encryption services ecosystem. WISeSaT, a newcomer from the last year, offers space technology using and developing secure picosatellites for secure communications from space. We also have WISe.ART, the trusted blockchain and NFT segment, offering secure digital asset solutions. Lastly, we have SEALCOIN AG, incorporated in 2024 and developing the SEALCOIN platform, focusing on a decentralized physical Internet with a soon-to-come token named QAIT. In regard to the first half of 2025, it has been a decisive step forward in the execution of WISeKey's Quantum convergence strategy. This strategy launched last year combines existing proven identity and security methods with emerging quantum safe technologies to ensure a smooth transition into the post-quantum era. It maintains the protection of current infrastructure while integrating post-quantum cryptography and quantum resilient algorithms. This strategy relies on a hybrid model where traditional and quantum-safe algorithms work together, guaranteeing backward compatibility while avoiding disruption. By applying this convergence across semiconductor, IoT, satellite, digital identities, and blockchain networks, it ensures that trust and privacy remain intact. As quantum computers advance, the essence of quantum convergence is bridging today security with tomorrow's challenges, enabling a resilient and future-proof digital ecosystem. This quantum convergence is now beginning to show its financial potential as each component drives value creation for the others, enabling WISeKey to multiply revenues, diversifying them and starting to reduce the dependency on any single line of business and capturing new recurring income streams. The foundation of this quantum conversion strategy lies in SEALSQ, which I previously mentioned is a major player in that ecosystem and has one of the most secure manufacturing capabilities of post-quantum chips, expected to be released in November 2025. This will be a world first: the first post-quantum chip capable of protecting against quantum attacks and positioned to be the world's first secure chip to embed NIST-standard quantum-resilient algorithm, the ML8-KEM CRYSTALS-Kyber on ML8-DSA-CRYSTALS-Dilithium, which is the NIST standard quantum resistant algorithm that has been made available for companies like SEALSQ to implement in their hardware devices. WISeKey controls 52% of the voting rights of SEALSQ as of June 30, 2025. The Quantum Shield QS7001 aims to secure critical applications such as cryptocurrency transactions, defense systems, healthcare infrastructure, airport security, and IoT devices against future quantum computing threats. As quantum computers advance towards what we call the Q day, when quantum computers will break traditional encryption like elliptic curve cryptography (ECC) and RSA, the QS7001 chip addresses vulnerabilities in systems such as Bitcoin and other blockchains that could be hacked with this new computing capability provided by quantum. Current ECC-based algorithms, including ECDSA, are susceptible to quantum attacks that could compromise public keys and expose funds. The QS7001 integrates lattice-based quantum resistant cryptography to provide secure key storage, efficient signing and key exchange operations optimized for hardware wallets and IoT devices. It also offers a migration framework with hybrid cryptography and tools to assist transition systems to quantum-safe standards with minimal disruption. The chip is launched as an open hardware platform to hold personalized customer firmware, enabling full flexibility for all kinds of applications. SEALSQ also plans to launch the trusted platform module version of the QVault TPM in H1 2026. While very few competitors are integrating post-quantum cryptography through hardware accelerators that support PQC via software implementation, SEALSQ QS7001 embeds quantum resistant algorithms directly at the hardware level. This approach delivers enhanced efficiency, around 10x faster, side-channel protection, and tamper resistance without relying on software layers, aiming to provide a more robust foundation for long-term security in high-stakes environments. So the conversion does not stop at connectivity. Each secure device will, in time, be able to transact autonomously within a SEALCOIN ecosystem, of which WISeKey holds 75% of the corporation. This is creating four revenue streams through transaction fees on trusted IoT chains. Earlier this year, WISeKey proved the potential of this model with a world first space-based cryptocurrency transaction, demonstrating how satellites, chips and the blockchain can combine the power to create an entirely new digital ecosystem or a new generation of WISe.ART platform, which WISeKey owns 87.5% of the corporation, and the remainder is held by the Hashgraph Group, the Hedera blockchain company and a pioneering Swiss-based Web 3.0 technology company. This platform adds a fifth layer by extending this infrastructure into tokenized assets generating transaction revenue from authenticated trading on both digital and physical assets. Together, this creates a diversified yet fully integrated monetization model where every element from chip to satellite to blockchain to marketplace reinforces and extends the other. For shareholders, the value of this model lies in scalability and resilience. Hardware sales generate media revenue, while OSPT services, satellite subscriptions, and blockchain transactions and tokenization provide recurring income streams that we expect will grow with adoption. This means each customer or partner engagement has a compounding effect; for instance, a defense contractor adopting SEALSQ chips could also become a client for OSPT services, a subscriber for WISeSat connectivity, a participant in SEALCOIN transactions, and potentially a user of WISe.ART for tokenized asset management. It is important to note that only a few companies in our sector can offer this level of vertical integration, horizontal interoperability, and monetization. This sets us apart from most of our competitors and represents the DNA of WISeKey. Another key point is the strategic partnerships that WISeKey is building to further enhance shareholder value by creating new addressable markets, such as the Quantix Edge Security initiative in Spain, which was announced today as the final outcome of a company with the participation of the Spanish government investing EUR 20 million, with WISeKey also investing EUR 10 million. This company has already committed revenue of EUR 25 million over the next 3 years. So this is a very concrete example of how this verticalization works, creating what we call decentralized value by bringing the technology to the national level. This company is at the heart of the semiconductor sovereignty strategy in Europe, supported by public funding and demand for secure microelectronics. Our collaboration with the Swiss Army, ongoing for 3 years, demonstrates that our convergence model is not just theoretical but is already being deployed to deliver ultra-secure sovereign communications, connecting mobile phones with our satellites, enabling secure communication directly with satellites and exchanging the keys required for secure end-to-end device authentication. Our HUMAN-AI-T initiative, launched with the United Nations, extends our leadership-based technology into AI global governance, which, although not directly related to revenue generation, is crucial for ensuring that countries benefit from the AI revolution without becoming dependent on others. These initiatives strengthen our brand, influence standards, and lay the foundation for future trust services, where AI must rely on secure chips, authenticated data, and tamper-proof transactions. As WISeKey moves into the second half of 2025, our focus is on scaling execution. Here are a few milestones. We are approaching the commercial launch of SEALSQ in Q4 2025, scheduled around November 22, which we expect will trigger new revenue growth in 2026 and beyond, as already communicated during the earnings call of SEALSQ, where these projections were disclosed. We are also expanding the WISeSat constellation to increase coverage and open new subscriptions; we now have 22 operational satellites in orbit. We are testing real-time connections with those satellites daily, with a new launch scheduled for November, again, with SpaceX, which will include the new generation chip, coinciding with the world's first launch of VaultIC, for post-quantum capabilities. We are also bringing SEALCOIN and WISe.ART from the pilot stage to commercial deployment, establishing new transactional income streams, and strengthening the OSPT footprint to ensure that every chip produced by SEALSQ is rapidly personalized and integrated into this global infrastructure. For shareholders, the message is loud and clear: WISeKey's convergence strategy is designed to create multiple layers of monetization from each customer relationship, with recurring revenue streams compounding over time and strategic partnerships opening new markets while derisking execution. With a robust pipeline of $170 million in revenue opportunities as of September 8, 2025, for the period '26 to '28, a strong balance sheet, and increased global recognition of the intersection of quantum security, space connectivity, blockchain, and AI, WISeKey is building a business designed to scale, resilience, and long-term shareholder value. WISeKey is not just adapting to technological change; in fact, WISeKey is shaping it. We are constructing a new sovereign trusted digital infrastructure that the world increasingly depends on, especially as the move is towards the centralization of technology among a few countries and players, creating dependency issues. For investors, this represents a unique opportunity to participate in a company positioned not only to grow revenue but to define the architecture of digital trust for decades to come. With that, I will now turn the call over to John, who will provide further insights into our first half 2025 financial highlights. So John, please go ahead.

Thank you, Carlos. As Carlos mentioned earlier, WISeKey's performance in the first half of 2025 is in line with our expectations. While the company is executing its strategy moving towards next-generation semiconductors, space connectivity, transactional IoT, and blockchain, we are laying the foundation for sustainable long-term growth. For the first half of 2025, revenues grew slightly by $0.1 million to $5.3 million, which was entirely in line with our expectations reflecting the continued transition period, which is coming in ahead of the industry-wide strategic shift towards post-quantum and IoT-driven technologies. In this slide, I would highlight that with the second half growth already booked— we have all our orders for the second half booked out at the SEALSQ level. We now have roughly a 300% higher backlog of book orders for 2026 than we had at the end of 2025. So we already have much more confidence in the figures going ahead for continued growth. Our operating losses did increase by $30.2 million to $27.3 million, but this was largely driven by a one-off stock-based compensation charge at the SEALSQ level of $10.1 million, in addition to increased investment in research and development and an increase in general and administrative costs due to an investment in the infrastructure of the company to support developing verticals. The increase in operating losses is partially offset by increased nonoperating income from a one-off gain on the settlement of the ExWorks loan, which we recognized as a $3.7 million one-off credit as we settled for far less than the amount held on our balance sheet, alongside interest earned on our cash deposits of $1.6 million. This results in a net loss of $22.3 million for the six months ending June '25, an increase of $6.8 million compared to the same period last year. As mentioned, we continue to invest in research and development, with the first half of the year totaling $5.8 million, focusing on the development of SEALSQ's next-generation quantum resistant chips, the SEALCOIN transactional IoT platform, the WISeSaT expansion and constellation, and the launch of the WISeSaT 3.0 platform. Our strong balance sheet and cash balance of $124.6 million at the end of June will allow us to accelerate technological development and execute strategic investments that expand our capabilities, strengthen our growth pipeline, and position WISeKey at the forefront of the transition to quantum resilient security solutions. A brief word on the outlook: We expect strong growth in the second half of the year, with full year revenues estimated to be in the range of $18 million to $21 million. This growth is driven by the expected return to growth in the demand for SEALSQ's traditional semiconductor products, the consolidated revenue of IC'ALPS, a subsidiary of SEALSQ since the completion of its acquisition by SEALSQ on August 4, 2025, along with the continuing development of the revenue streams of our other business divisions. We look forward to reporting our progress in the coming months. With that, I would like to open the line for Q&A.

Our first question comes from Matthew Galinko with Maxim Group.

And congrats on getting the Quantix deal done. Can you maybe touch on the contribution from Quantix? I think the press release said a relatively even revenue recognition of $20 million over 3 years. Is there anything we should think about for margins on that project revenue? And is there potential for product revenue on top of the project revenue?

Just to clarify, it's $25 million over 3 years. So margins in that project do vary a bit because some of it involves equipment and plants as we install the equipment in Murcia, so some will be lower margin than our traditional semiconductor work. However, the other elements will relate to professional service type arrangements involving our staff's expertise, the installation of IP, so we expect that segment to run at a higher margin, something much closer to what our—well, as a margin level, it would be very high as some of these staff are already currently employed by us. So yes, we start to be somewhere in the typical traditional margin range. Also, as highlighted in the PR, we agreed we would be looking to allow them to sell our next-generation semiconductors and other products directly beforehand to avoid losing momentum or significant time. So yes, we hope to have product revenues coming through while the center is still under construction.

Yes. Maybe, Matt, this is Carlos. Just to elaborate on that point, this deal is actually a very important one because it's the first personalization center that we signed. The logical step for personalization centers is that many countries are increasingly concerned about their dependency on semiconductors and want some control over that process. They start with injecting the keys, although the chips might come from Taiwan, Singapore, or wherever, but they want to inject the keys at a national level. These machines that John just mentioned will facilitate that. A full transfer of knowledge, equipment, licenses, IP, and royalties will occur for them to accomplish this. Parallel to that, this investment is a private partnership with the Spanish government SETT, which is sinking EUR 18 billion to develop semiconductor capabilities in Spain. They are co-investing, with us putting $10 million, and a startup in Murcia, Spain, adding another $10 million. Thus, for us, we recover our investment as there is a $25 million commitment over the next three years. Additionally, as John said, we are immediately selling the semiconductors, even before the center is fully operational, to markets that are high users of IoT, like electrical solar power plants that require IoT connectivity and authentication chips for solar panels. The agricultural sector is massive in that area, utilizing IoT sensors to monitor water irrigation. Many interesting new applications are being added to the existing ones with these new generation chips. Moreover, since SETT is investing in many other companies, creating an ecosystem arises. These companies are also creating synergies with other companies like us. We are currently negotiating similar personalization centers in several countries, including the United States in Arizona, and recently, a memorandum of understanding was signed with the Mayor of Civil. Countries are approaching us, expressing interest in utilizing our unique technology for post-quantum chips. We might be the only company globally willing to assist at a national level; others tend to centralize technology. This has created a fascinating ecosystem for us. As I mentioned during my introduction, these create huge synergies with the entire WISeKey Group, as once we deploy these chips at the national level, the next step is connectivity, which is where WISeSat satellite plays a crucial role. We have already conducted concrete tests on how to connect satellites directly to sensors located in IoT devices or device-to-device communication, and mobile-to-satellite communication is indeed a newly emerging industry, with WISeSaT flourishing as a result.

I appreciate the answer, Carlos, and John, the additional color is very helpful in seeing how everything is coming together. In a follow-up, you mentioned the $170 million, I think it was, three-year business pipeline from the SEALSQ press release and conference call, which you reiterated here. Can you talk about how significantly the TPM is represented in the pipeline versus some other applications you are working on? Or is TPM a major component of that?

The pipeline is a mixture among three major components; one section is the QS7001, the new chip, which is upgrading the existing security of the current chips. Clients currently using legacy chips buying 5 million to 10 million units yearly want to upgrade now. An important piece of the $170 million is based on the design wins the company has already secured with some clients. These clients are becoming increasingly concerned due to new legislation in the United States, as in Europe, that by 2027, the White House will release regulations akin to those on AI focused on quantum, indicating companies need to be quantum resilient before 2027, as by 2030, legacy systems will not be permitted in critical infrastructures due to heightened risks. There is growing consensus that Quantum day arrives in 2030, and delaying preparations until 2027 will be too late to comply, generating a regulatory push that is prompting increased valuations among companies engaged in the quantum realm. The next priority derives from the TPM, which will become relevant later in the year. The remaining portion encompasses the centers we are building, with costs ranging from $40 million to $100 million depending on the country, notably a $100 million project in the United States. In some cases, we might partner with investors to demonstrate the seriousness of our commitment, facilitating the provision of licensing, technology, chips, and machinery, creating revenue for the company. This is how we break down the $170 million. Clients are employing VaultIC, which has historically sold 1.6 billion times, generating a massive user community. Some adhere to a legacy environment while considering transitioning to post-quantum. Recently, we announced a collaboration with a Taiwanese company this week dealing in ledger technology for Bitcoin storage, as clients fear quantum threats to blockchain security. We signed a deal with them to PQC-enable their devices, and while they are in the testing phase on a limited device group, the upcoming step will be full-scale production becoming PQC-ready next year. It’s worth noting the PQC addressable market is expanding rapidly, and for the moment, we don't have a clear competitor in the PQC sector, with significant revenue projections becoming realistic, proving the potential for growth. Addressing the question regarding the skepticism towards our capabilities, many wonder why multi-billion-dollar chip manufacturing companies aren't undertaking similar ventures, to which the answer is they only find it challenging to shift focus from existing technology to cultivate PQC technology—this transition will take between 3 to 5 years, providing us significant time to capture as much of the addressable market as possible.

Carlos, fantastic insights on that. To wrap it up, before I return to the queue, can you elaborate on the commercialization of WISe.ART with the 3.0 release and how it ties into SEALCOIN? What's the path to commercializing that segment, and what can we expect for it in 2026?

WISe.ART was developed initially with the idea of having a microchip embedded in an object, allowing that object to be secured via its microchip and authenticated, like a spare part from a car or a drone. Additionally, the concept enables the creation of digital twins of these parts, thus facilitating a digital environment where engineers can create the digital twin of the car without physical interaction. The technology is complex, requiring every spare part to have a secure identity embedded in it, forming a digital twin. WiSe.ART is an interesting starting point, and we have had success in advancing art through this concept, now with about 1,000 artists and thousands of art pieces dematerialized. However, we faced challenges due to the recent collapse of the NFT market, leading to misconceptions regarding WISe.ART’s positioning as merely an NFT platform, which it is not. We are gradually reeducating the market on WISe.ART’s potential, which is evolving from solely being art-focused to becoming an industrial generator of digital twin components for digital analysis. In addition, SEALCOIN will serve as the currency for transactions between devices. We envision machine-to-machine payments through SEALCOIN, enabling a satellite to purchase data from another satellite or a connected vehicle paying for data from an electric plug directly, eliminating intermediaries. Admittedly, this is a technologically complex initiative, but the advancements we are making are considerable. In three years, it is likely we will focus on a common theme around web 3.0 cybersecurity, stemming from the specialized companies that are tackling specific issues; once resolved, these will yield numerous synergies throughout the broader ecosystem.

Mr. Moreira, it seems there are no other questions at this time. I'll hand it back to you for your closing remarks.

Thank you very much for your help in organizing this call. I would also like to thank Matt, the analysts following us, and, of course, our shareholders and investors who may have joined this call. This call has been recorded, and all the presentations are available on our website. John and I are here to address any further questions you might have. Thank you for your attention, and have a great day.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.