PART I - FINANCIAL INFORMATION This section presents the company's financial statements, management's analysis, market risk disclosures, and internal controls for Q1 2023 [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) For Q1 2023, the company reported a net loss of $7.5 million, a 21% revenue decrease, and significant asset growth due to the Arq acquisition [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $234.0 million by March 31, 2023, driven by the Arq acquisition, while liabilities and equity also increased Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$233,951** | **$181,164** | | Total Current Assets | $104,724 | $105,662 | | Property, plant and equipment, net | $76,378 | $34,855 | | **Total Liabilities** | **$53,810** | **$41,185** | | Total Current Liabilities | $20,044 | $23,884 | | Long-term debt obligations | $20,119 | $3,450 | | **Total Stockholders' Equity** | **$161,214** | **$139,979** | - The significant increase in Property, Plant, and Equipment (from **$34.9 million to $76.4 million**) and Long-term debt (from **$3.5 million to $20.1 million**) is primarily attributable to the Arq Acquisition completed in February 2023[9](index=9&type=chunk)[20](index=20&type=chunk)[70](index=70&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 revenues fell 21% to $20.8 million, leading to a wider operating loss of $7.8 million and a net loss of $7.5 million Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenues | $20,805 | $26,402 | | Total Operating Expenses | $28,632 | $29,737 | | Operating Loss | $(7,827) | $(3,335) | | Net Loss | $(7,508) | $(3,033) | | Diluted Loss Per Share | $(0.32) | $(0.17) | - Operating expenses in Q1 2023 included a **$2.7 million gain** on the sale of Marshall Mine, LLC, which partially offset increased costs in other areas. Legal and professional fees more than doubled to **$4.5 million** from **$2.2 million** year-over-year[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to $161.2 million, primarily from stock issuances for the Arq acquisition and PIPE investment, offset by net loss - The company issued **3.81 million shares** for the Arq Acquisition and **3.84 million shares** for a PIPE Investment, adding a combined **$27.6 million** to equity, net of offering costs[15](index=15&type=chunk) - The net loss of **$7.5 million** and preferred stock dividends of **$0.2 million** reduced retained earnings during the first quarter of 2023[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 saw $17.7 million cash used in operations, offset by $23.3 million from financing activities, resulting in a $2.7 million cash increase Q1 Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(17,705) | $2,094 | | Net cash used in investing activities | $(2,897) | $(439) | | Net cash provided by (used in) financing activities | $23,260 | $(628) | | **Increase in Cash and Restricted Cash** | **$2,658** | **$1,027** | - Financing activities were the primary source of cash, with **$15.2 million** from a common stock issuance and **$8.5 million** from a new term loan[18](index=18&type=chunk) - The significant cash used in operations was driven by the net loss and a **$14.0 million negative change** in accounts payable and accrued expenses[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Arq acquisition, new term loan, PIPE financing, Marshall Mine sale, and increased debt obligations in Q1 2023 - On February 1, 2023, the company acquired Arq for **$31.2 million** in stock consideration, accounted for as a business acquisition. Arq is a pre-revenue environmental technology company[20](index=20&type=chunk)[21](index=21&type=chunk)[43](index=43&type=chunk) - To finance operations and the acquisition, the company entered into a **$10.0 million term loan** and raised **$15.4 million** through a PIPE Investment on February 1, 2023[22](index=22&type=chunk)[24](index=24&type=chunk) - The company disposed of Marshall Mine, LLC on March 27, 2023, making a cash payment of **$2.2 million** to discharge **$4.9 million** in liabilities, resulting in a recognized gain of **$2.7 million**[63](index=63&type=chunk) - Total debt obligations increased significantly to **$21.7 million** as of March 31, 2023, consisting of a new **$10.0 million term loan**, an assumed **$10.0 million Arq loan**, and finance lease obligations[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2023 revenue declined 21% due to lower sales volumes, while operating expenses rose, with future capital expenditures projected at $40-45 million - Revenue for Q1 2023 decreased by **$5.6 million (21%)** compared to Q1 2022, primarily due to a **$5.9 million drop** from lower sales volumes to power generation customers. This was driven by low natural gas prices, which averaged **$2.65/MMBtu** in Q1 2023 versus **$4.66/MMBtu** in Q1 2022[148](index=148&type=chunk)[149](index=149&type=chunk) - Operating expenses increased, with legal and professional fees rising by **$2.4 million** and payroll by **$2.1 million**, largely due to costs associated with the Arq acquisition[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) Non-GAAP Adjusted EBITDA (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net loss | $(7,508) | $(3,033) | | (EBITDA loss) | $(4,988) | $(1,336) | | (Adjusted EBITDA loss) Adjusted EBITDA | $(7,683) | $880 | - The company projects capital expenditures for 2023 to be between **$40.0 million and $45.0 million**, with **$27.0 million to $30.0 million** allocated for growth capital to integrate Arq Powder as a feedstock[178](index=178&type=chunk)[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing market risk disclosures - As a smaller reporting company, ADES is exempt from the requirement to provide quantitative and qualitative disclosures about market risk[188](index=188&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2023, excluding the recently acquired Arq business from internal control assessment - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[189](index=189&type=chunk) - The company acquired Arq on February 1, 2023, and has excluded its business from the assessment of internal control over financial reporting for the period, as permitted by SEC staff guidance[190](index=190&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, updated risk factors, equity sales, defaults, mine safety, and other disclosures [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) As of March 31, 2023, there were no significant legal proceedings to report - There were no significant legal proceedings as of March 31, 2023[96](index=96&type=chunk)[193](index=193&type=chunk) [Risk Factors](index=34&type=section&id=Item%201a.%20Risk%20Factors) A new risk factor addresses potential adverse effects of bank failures, noting concentration of cash deposits exceeding FDIC limits - A new risk factor was added regarding the potential impact of bank failures on the company's business and liquidity[194](index=194&type=chunk)[195](index=195&type=chunk) - The company holds the majority of its cash deposits at a single bank, with balances exceeding FDIC insurance limits, creating a concentration risk[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company raised $15.4 million through a PIPE investment on February 1, 2023, by selling common stock at $4.00 per share - The company raised **$15.4 million** through a PIPE investment on February 1, 2023, by selling common stock at **$4.00 per share**[197](index=197&type=chunk) - The securities were issued in a private placement, exempt from registration under the Securities Act[198](index=198&type=chunk) [Defaults Upon Senior Securities](index=34&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[199](index=199&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are included in Exhibit 95.1 of this report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are included in Exhibit 95.1 to this report[200](index=200&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this item - None[201](index=201&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreements and certifications

Financial Data and Key Metrics Changes - The company reported fourth quarter consumables revenue of $23.4 million, slightly up from $23.2 million in the prior year, while full year total revenue reached $103 million, representing a year-over-year increase despite a $14 million decline in royalties from Tinuum investments in 2022 [8][9][17] - The net loss for the fourth quarter was $3.2 million, compared to a net income of $5.8 million in 2021, and for the full year, the net loss was $8.9 million versus a net income of $60.4 million in 2021 [10][21] - Adjusted EBITDA for the fourth quarter was a loss of $1.2 million, down from a positive $9.1 million in the prior year, while full year adjusted EBITDA was $1.3 million compared to $84.9 million in 2021 [21][22] Business Line Data and Key Metrics Changes - Consumables revenues increased by 20% year-over-year due to strong demand from power generation customers, pricing initiatives, and product mix improvements [9] - The production volume at Red River was lower than anticipated due to unplanned maintenance downtime, but overall production volume for the year exceeded expectations [11] Market Data and Key Metrics Changes - The decline in natural gas prices during the fourth quarter lowered demand from power generation customers, a trend that continued into the first quarter of 2023 [8][12] - The company expects that persistently low natural gas prices could hinder demand and revenue performance from power generation customers [12] Company Strategy and Development Direction - The company aims to transform into a diversified environmental technology company following the Arq acquisition, which is expected to enhance its product offerings and market reach [7][26] - Capital projects are planned to modify the Red River and Corbin sites for commercial-scale GAC and Arq powder production, with an estimated capital expenditure of $25 million to $30 million for 2023 [14][35] - The company anticipates generating approximately $106 million in revenue for 2023, with an EBITDA loss of roughly $6 million, excluding one-time acquisition costs [15][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that lower natural gas prices could impact demand from power generation customers, which has been a significant factor in the company's revenue performance [12][45] - The integration of the Arq team and assets is a priority, with expectations for revenue generation from Arq-related products to begin in early 2024 [43][36] Other Important Information - The company ended the year with a strong cash position of $76.4 million, which will support capital expenditure plans for 2023 [11][23] - The sale of Marshall Mine is expected to close in the first half of 2023, which will remove approximately $4.9 million in liabilities from the balance sheet [11][24] Q&A Session Summary Question: Details on pricing and contracts - Contracts typically last 3 to 4 years, with about 25% turning over annually; approximately 15% of contracts may be below current market pricing, with some renewing this year [39][40] Question: Restricted cash related to Marshall Mine - It is estimated that 50% to 70% of the restricted cash will be released upon closing the transaction, pending regulatory approvals [41] Question: Revenue expectations from Arq products - Revenue from Arq-related products is expected to begin in early 2024, with initial capital expenditures focused on product testing and market entry [43][36] Question: Impact of low natural gas pricing on power generation customers - Low natural gas prices could negatively impact demand from power generation customers, which had previously benefited from higher prices [45] Question: Combined R&D efforts and Colloidal Carbon product development - The integration of technology teams is underway, with the first generation of Colloidal Carbon products developed and a manufacturing partner secured for commercial production [46]

Advanced Emissions Solutions, Inc. Fourth Quarter & Full Year 2022 Results Call March 9, 2023 Nasdaq: ADES Disclaimer 2 This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. When used in this presentation, the words "can," "will," "intends," "expects," "believes," similar expressions and any other statements that are not historical facts are intended to ident ...

Revenue and Sales Performance - Total revenues for 2022 were $102.987 million, a 3% increase from $100.294 million in 2021, driven primarily by a 20% increase in consumables sales to $102.987 million from $85.882 million[213]. - Consumables revenue increased by $11.8 million year over year, driven by higher volumes sold and improved pricing, offset by an unfavorable product mix impact of approximately $1.4 million[214]. - For 2023, a slight increase in Consumables revenue is expected, but a decrease in volumes is anticipated due to alternative energy prices affecting demand[217]. Cost and Expenses - Consumables cost of revenues increased by 23% to $80.465 million in 2022, up from $65.576 million in 2021[213]. - Total operating expenses increased by 16% to $34.6 million in 2022, with significant increases in legal and professional fees (51%) and general and administrative expenses (15%)[219]. - Payroll and benefits expenses decreased by 7% to $10.5 million, primarily due to a reduction in headcount[220]. - Consumables gross margin decreased due to higher raw material and transportation costs, with a negative impact of $0.8 million from Tinuum Group Royalties[215]. Financial Position and Performance - The company reported a net loss of $8.9 million compared to a net income of $60.4 million in 2021, reflecting a year-over-year change of $69.3 million[248]. - Adjusted EBITDA for 2022 was $1.3 million, a significant decrease from $84.9 million in 2021, indicating a decline in operational performance[248]. - Cash and restricted cash decreased from $88.8 million in 2021 to $76.4 million in 2022, a decline of $12.3 million[252]. - The company reported cash flows used in operating activities of $6.1 million in 2022, a decrease of $32.1 million compared to cash provided by operating activities of $26.0 million in 2021[253]. Investments and Acquisitions - The company completed the Arq Acquisition on February 1, 2023, for a total purchase consideration of $31.2 million, enhancing its product offerings in carbon technology[193]. - A PIPE Investment closed on February 1, 2023, for approximately $15.4 million at a purchase price of $4.00 per common share[196]. - The company closed a PIPE Investment for an aggregate purchase price of $15.4 million and entered into a Loan Agreement for $10.0 million, receiving $8.5 million in net proceeds[249]. Liabilities and Obligations - As of December 31, 2022, Marshall Mine, LLC had outstanding liabilities of approximately $4.9 million, expected to be discharged upon the sale of the mine[192]. - The company had outstanding surety bonds totaling $24.1 million related to reclamation obligations for the Five Forks Mine and Marshall Mine as of December 31, 2022[260]. - The company expects to close the sale of its equity interests in Marshall Mine, LLC in the first half of 2023, which will discharge all liabilities associated with reclamation for that mine[261]. Taxation and Valuation - The reported income tax expense for 2022 was $0.2 million, with an effective rate of (2)%, reflecting pretax losses and valuation allowance adjustments[232]. - As of December 31, 2022, the valuation allowance on deferred tax assets was $88.3 million, indicating a lack of expected taxable income to utilize these assets[236]. - The company had approximately $86.1 million in Section 45 tax credit carryforwards as of December 31, 2022, following the expiration of the tax credit program[239]. Accounting and Compliance - The company applies the acquisition method for both business and asset acquisitions, requiring significant estimates and assumptions regarding fair values at the acquisition date[269]. - The company reviews long-lived assets and intangibles for impairment at least annually, measuring impairment losses based on the excess of carrying amounts over estimated fair values[271]. - Recent accounting standards are referenced in the Consolidated Financial Statements, indicating ongoing compliance and updates[278].

Advanced Emissions Solutions, Inc. (ADES) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET Company Participants Ryan Coleman - Alpha IR Group Greg Marken - Chief Executive Officer, President and Treasurer Morgan Fields - Chief Accounting Officer Conference Call Participants Operator Good morning, ladies and gentlemen. Welcome to the Advanced Emissions Solutions Q3, Earnings Results Call. My name is Digrita, I'll be your moderator for today's call. [Operator Instructions] I would now like to pass ...

1 Advanced Emissions Solutions, Inc. Advancing Cleaner Energy Third Quarter 2022 Earnings Results Call November 9, 2022 Safe Harbor 2 This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. When used in this presentation, the words "can," "will," "intends," "expects," "believes," similar expressions and any other statements that are not historical facts are int ...

______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37822 ______________________________________ Advanced Emissions Solutions, Inc. (Exact name of registrant as specifie ...

Financial Data and Key Metrics Changes - Consumables revenue for Q2 2022 was $24.7 million, reflecting a year-over-year growth of over 41% for the second consecutive quarter [8][15] - Gross margin improved to 19.5% compared to 15.4% in the prior year [8] - Net loss for Q2 2022 was $0.3 million compared to net income of $16.6 million in Q2 2021 [9][19] - Consolidated adjusted EBITDA for Q2 2022 was $2.2 million compared to $21.2 million in the prior year [9][20] - Cash balance at the end of Q2 2022 was $90.8 million, with total debt of $5.2 million [11][21] Business Line Data and Key Metrics Changes - The increase in consumables revenue was primarily driven by higher sales of activated carbon products, which offset the loss of royalty earnings from the former Refined Coal segment [15][20] - Other operating expenses for Q2 2022 were $7.6 million compared to $5.9 million in Q2 2021 [16] - Earnings from equity method investments for Q2 2022 were $2.4 million compared to $21.4 million in Q2 2021, reflecting the wind-down of Tinuum investments [16][19] Market Data and Key Metrics Changes - Elevated energy commodity prices for alternative fuels, such as natural gas, continue to drive demand for consumables products [7][8] - The company is seeing strong customer interest in emerging markets, including groundwater remediation [24][25] Company Strategy and Development Direction - The company aims to enhance long-term profitability of its Red River plant by optimizing manufacturing operations and improving customer contracts [26][27] - There is a focus on diversifying product and customer mix through ongoing investment in new product development [27] - The company expects revenues for the full year 2022 to be comparable to 2021, despite the loss of royalty earnings [26] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the current status of negotiations related to the strategic review process and expects to provide updates soon [11][12][33] - The company anticipates continued strong demand for activated carbon technologies, although margins may remain under pressure due to supply chain challenges and inflation [12][13] Other Important Information - The reclamation work at the Marshall mine is progressing well and is under budget [22] Q&A Session Summary Question: How much incremental revenue from transitioning utilities to front-end technology? - The company expects to generate approximately $5 million in incremental revenues annually from these utilities [31] Question: Any plans for additional price increases for activated carbon products? - Contracts are generally long-term, and the company will continue to improve commercial terms as contracts are renewed [32] Question: Update on the strategic review process? - Management is pleased with the progress and is encouraged by the current status of negotiations [33]

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37822 ______________________________________ Advanced Emissions Solut ...

1 Advanced Emissions Solutions, Inc. Advancing Cleaner Energy First Quarter 2022 Earnings Results Call May 10, 2022 Safe Harbor 2 This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding net, after-tax cash flows from refined coal ("RC"); expectations of continued APT performance improve ...