Enovix Corporation Common Stock Status update

Earlier today, Enovix issued a press release announcing a leadership transition. The release, along with an accompanying presentation, can be found on the investor relations section of the company's website. Joining us today are T.J. Rodgers, Executive Chairman, Ryan Benton, Interim CEO, Michael Vivona, COO, Samira Naraghi, Chief Business Officer, and Jonathan Doan, SVP of R&D. They will provide prepared remarks, and then we will open the call for questions. Joining us for the Q&A session will also be Ed Casey, SVP of Operations, and Kihong Park, SVP of Global Manufacturing. Before we begin, please note that certain statements made today may be forward-looking and are subject to risks and uncertainties described in our SEC filings. For a discussion of these risks, please refer to the disclosures in today's press release and our filings with the Securities and Exchange Commission.

All statements made on this call are as of today, August 17, 2026, and we undertake no obligation to update them except as required by law. During the call, we may also reference non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in the materials posted on our IR website. With that, I will turn the call over to T.J.

Hi, I'm T.J. Rodgers, the Executive Chairman of Enovix. I rarely open with an apology, but I'd like to apologize for the British-speaking AI voice and the reading of long legal disclaimers. I'll get that fixed in the future. You're going to listen to real people who are in the picture, talking English real-time. I've got the staff here. I decided to bring them in because I want them to tell you what they have to do, since they are really the people who make this company work. Point 1, we have a CEO transition. I won't spend time on it. It's water under the bridge. He said, she said stuff is irrelevant really. The question is where are we going forward? That's what I'm focusing on here. I've only had since Thursday of last week to work on that, and I was up to speed pretty much already.

So there's more here. What is changing? Raj resigned last Thursday, and the statement to me was it was to pursue a dream job. It's for you to decide about that statement. It could well be. I think he had a dream job here. He disagreed. This is America. He can work anywhere he wants. The next day, we had a board meeting and the board unanimously accepted the resignation. We appointed Ryan Benton the interim CEO. I got appointed back up to executive chairman, meaning I'm going to be making decisions and weekly appearances at the company working on stuff, and I take it as my number one job right now. We launched a parallel CEO search. We're going to look to find the best we can outside. We're using the same firm that found Raj. We were happy with what they brought bringing Raj to us.

We're also looking inside. The people that are here can cut it. Question is, can they cut it in the long haul? Can they have the long-term strategic vision? That we'll wait to see. What is not changing is more important than what is changing. What is changing is a single position, an important one, of course, not minimizing it. What is not changing, strategy and product roadmap. We're working on three things. Smartphones we've been talking about now for years, and getting them qualified is our number one job. While we've been working on number one, number two has turned into reality here in Silicon Valley. We're right downtown Silicon Valley in the Enovix cafeteria. That is important companies, household words, are going to bring eyewear to the market. Obviously, the market's huge, 300 million Americans.

We're in the middle of that, and we've got some early wins. We'll talk about that. Last is defense. Defense wants batteries that are made in America or made by American companies with non-FEOC, that is non-foreign entity threatened offshore sites. We're in the middle of that. Our batteries also perform very well, state-of-the-art. That business came to us, and we're working on it. So I've got our main line and the two things that we will ramp and make money on while we're getting the main line ramped up. Another thing that didn't change is our 2Q 2026 guidance. I'll show you this for a minute or two, but I'm not here to talk about guidance. Customer programs and qualification schedules haven't changed. We have teams working on their customers. They're not changing. Their job is not changing. There's no charter or personnel changes on them.

I'm actually going to be reviewing this week, customer by customer, the strategic plans Operating leadership, then I've given all the names, including the Malaysian, Korean groups not changing. The balance sheet is the plum of the company. I work in other companies that would love to have this balance sheet with a decimal moved one place to the left. My point here is I hope the CEO transition does not distract investors from the Enovix Q2 2026 event of the decade. I've worked 14 years to get cycle life on this battery to work, and we finally got it, and that's the headline. That should have been, like, America wins World War II. Instead, this is a distraction that's way less important than an event that really defines the company.

The event of the decade is successfully demonstrating 1,000 cycle life on our AI class smartphone batteries. I want to just tell you to geek out for 60 seconds and tell you what this means. This is the battery sliced in half. On this side, you have the silicon-carbon, silicon atoms encased in a carbon coating. Then you have the separator. On this side, you have lithium cobalt oxide. The lithium comes out of here, and the whole battery is when you charge it, the lithium atoms here turn into ions, move across this barrier and go over here, and when you discharge it, the lithium atoms go back the other way. The energy level of these two things is the energy level of the battery. Think about 3.5 volts. That's it.

The problem is the anode, and the problem is this material we buy with lithium in it. This material is what we add to the battery, and we're using silicon. Silicon is used because it's more efficient. The section over here is one third as big as it would have been if we used the standard, which is graphite. I'm not going to go into that. I actually downloaded a nice little picture of the graphite lattice, and I decided not to time. This is what we've been working on for a decade. By the way, this is what Sony worked on for more than a decade when back in the '90s, they invented the lithium-ion battery. What's the problem? Silicon is a crystal, literally, and therefore, it is a little bit like china, or china as in a material. If you break it will shatter.

The problem here is I was going to say to you the problem is obvious. Now you understand what we've been working on and move on to the next slide. We started here. This was our silicon. This is a chunk of a wafer, and the lithium came in from this side and went into the silicon. As you can see, it cracked up the silicon, caused giant fissures, because the swelling eventually pried it apart. This is a picture of one of our earliest batteries falling apart. It says less than 200 cycles. The answer is, when I first came in here 14 years ago, the answer was less than 10 cycles. Silicon doesn't like lithium to be inserted into it. We changed from crystal and silicon to silicon oxide. It's an engineered material. Here is silicon.

You've got the atoms of silicon in there. The same thing happens. Lithium forms a stable compound with silicon. I'll leave it at that. Here you see this layer on the outside is called the solid electrolyte interphase, and the lithium has to get through this. Then here you see it's big, and furthermore, you can see cracks here. The same thing is happening across an entire battery here. It's happening on these little microparticles. Then here we are now, and this is 1,000 cycles. You can see the particles of silicon have a thin SEI, and they're in good shape. That took 14 years. Of course, each step, if you want to rough cut, seven years, seven more years, and now we're there. That happened in second quarter.

Somebody should have been standing on top of the building, putting up a sign, screaming about this event, and it didn't happen as well as it should have happened. When I came in, I was worried about, oh my God, are they going to quit? Is the morale in the tank, et cetera. I talked to the leaders in the company, these people. These are a quickie. I cut down the resumes from pages to paragraphs. Samira is on the end, so might as well show these quick. Samira is on the end. Then Ryan. She's the Chief Business Officer. Then Ryan, CFO, and now Interim CEO. I want to go over here, Michael Vivona is next. And then, just showing you that T.J. Rodgers ran out of time, on the end is Michael Dunn.

Jonathan Doan. Jonathan Doan. Sorry.