A：Despite significant external headwinds such as microeconomic volatility, weak travel demand, rising energy prices, memory chip cost increases, and conflict-related supply chain disruptions, the company's new product lines continued to scale and offset the negative impact on traditional business.

A：The new product lines have made significant strategic progress, with increasing revenues following an initial market up period over the past two quarters. They are building the groundwork for accelerated commercial momentum, with the 'Peggo' platform and broader ecosystem seeing strong traction.

A：'Peggo' is a pioneering AI-powered social platform for the pet technology industry, which leverages AI technologies to enable pets and their owners to communicate seamlessly. This fosters a connected community and is expected to complete commercial validation in Q2 2026, starting to drive growth in Q3 2026.

A：The 'Dopamine Life' business line has achieved financial growth with industry-first innovations. The unique core product has gained strong traction, resulting in a significant increase in sales volume and market adoption, leading to a 559.9% year-over-year increase in average daily activity users (DAU) during the quarter.

A：The global Internet of Things (IoT) strategy is generating initial results, with a strong growth trajectory and expanding user adoption and revenue contribution. The business solidified its strategic position, with average revenue growth for IoT users increasing 246.5% year-over-year, and the total IoT solutions install base reaching 2.93 million for the Pro business plan.

A：The Gold G50 mask is a world-first, AI-driven mobile connectivity hub that is expected to serve as a powerful growth engine. By integrating satellite connectivity, it provides resilient, hyperconnected experiences and is expected to reach commercial deployment in the second quarter of 2026. It also aims to reinforce the brand's high-end aspirations and drive sales across the portfolio of mobile productivity solutions.

A：Strategically, the company will continue investing in new growth engines throughout 2026, guided by positive market feedback and momentum in global IoT. For the second quarter, the company expects total revenues to be between $19.19 to $22.5 million, representing an increase of 0.5% to 5% year-over-year. The ongoing product ramp up and market adoption are anticipated to further offset headwinds, leading to a return to positive year-over-year growth and sustainable business trajectory.

A：Average DAU from the global Internet of Things (IoT) grew by 246.5% and MAU by 193.6% from the period last year.

A：The company's capital expenditure in the first quarter of 2026 was $30,000 compared to $300,000 in the same period in 2025.

A：The G50 Max is a high-end 5G product that can be deployed in over 100 countries. Its market opportunities include conflict zones, remote rural areas, at sea, and providing continuous connectivity in such scenarios. It can also serve as a backup for WiFi connectivity and is designed to offer the best coverage and target scenarios, including homes and on-the-go use.

A：The in-car infotainment and security camera business is a part of the company's IoT segment, where they embed their cloud theme and hypercom solution into car devices from major Chinese manufacturers. The car devices using their solution can get both entertainment and network connectivity in the car. The market share in this space has grown significantly, with an increasing number of 4G cameras using the company's solution due to its cost-effectiveness and broader market availability. The company has a growing market share and an installation volume of about 2.2 to 3.9 million pieces in the six months prior to the report, with a six-month lag between shipping and user installation.

A：The company is facing challenges with memory chip prices being 5 to 10 times higher than last year. They are trying to address these issues by redesigning to reduce memory size, looking into alternative solutions, and exploring the use of local Chinese memory. While these measures help to offset some costs, they cannot fully compensate for the price increase, which leads to higher selling prices for the devices - approximately 20% to 30% above the previous year's prices.