[CEO's Statement and Outlook](index=1&type=section&id=CEO%27s%20Statement%20and%20Outlook) The CEO reported a 69% YoY revenue increase to $8.3 million and a third consecutive quarter of net income, while addressing a reduced backlog and new tariff challenges Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change (YoY) | Change (QoQ) | | :--- | :--- | :--- | :--- | | Revenue | $8.3 million | +69.0% | +12.2% | | Net Income | $360,000 | - | 3rd consecutive quarter of net income | | Backlog | $13.8 million | - | from $19.4 million at Dec 31, 2024 | - Revenue growth was primarily driven by two contracts in the industrial and aerospace markets, along with strong demand for gas delivery equipment from the SDC segment[2](index=2&type=chunk) - The company is facing uncertainty due to recently imposed tariffs, which could affect component costs and economic conditions, potentially impacting the order rate[2](index=2&type=chunk) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Q1 2025 saw strong financial improvement with 69% YoY revenue growth and profitability, alongside modest new orders, a reduced backlog, and workforce reductions [First Quarter 2025 Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Performance) Q1 2025 financial performance improved significantly with 69% revenue growth to $8.3 million, a gross profit margin of 32.4%, and a net income of $360,000, despite a decrease in cash to $10.2 million Q1 2025 vs Q1 2024 Financial Comparison (in thousands, except percentages and EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $8,174 | $4,922 | | Gross Profit Margin | 32.4% | 16.2% | | Operating Income (Loss) | $269 | $(1,623) | | Net Income (Loss) | $360 | $(1,472) | | Basic & Diluted EPS | $0.05 | $(0.22) | - The improvement in gross margin was attributed to higher revenues, better absorption of overhead, and improved margins on contracts in progress[4](index=4&type=chunk) - Cash and cash equivalents stood at **$10.2 million** as of March 31, 2025, a decrease from **$12.6 million** at the end of 2024[4](index=4&type=chunk) [First Quarter 2025 Operational Performance](index=2&type=section&id=First%20Quarter%202025%20Operational%20Performance) Q1 2025 operational performance included $2.8 million in new orders, a $1.2 million post-quarter semiconductor system order, and a workforce reduction to align with demand - First-quarter orders amounted to **$2.8 million**, mainly from the SDC segment[8](index=8&type=chunk) - A significant **$1.2 million** order for a semiconductor system was received in early April 2025, which is not included in the Q1 backlog[8](index=8&type=chunk) - The company implemented a plan to reduce operating costs, resulting in a workforce reduction during the quarter[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Unaudited Q1 2025 financial statements show significant YoY revenue growth and profitability, with a slight decrease in total assets and reduced current liabilities [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 statements show revenue of $8.17 million, gross profit of $2.70 million, operating income of $269,000, and net income of $360,000, a significant turnaround from prior year losses Condensed Consolidated Statements of Operations (In thousands, except per share data) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Revenue** | **$8,174** | **$4,922** | | Cost of revenue | 5,621 | 4,125 | | **Gross profit** | **2,695** | **797** | | Total operating expenses | 2,426 | 2,420 | | **Operating income (loss)** | **269** | **(1,623)** | | **Net income (loss)** | **$360** | **$(1,472)** | | **Basic and diluted income (loss) per share** | **$0.05** | **$(0.22)** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $31.08 million (down from $31.69 million), driven by reduced cash, while total liabilities decreased and equity increased Condensed Consolidated Balance Sheets (In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,219 | $12,598 | | Total current assets | 19,469 | 19,986 | | **Total assets** | **$31,080** | **$31,686** | | **Liabilities and stockholders' equity** | | | | Current liabilities | $4,929 | $6,137 | | Total liabilities | 5,088 | 6,318 | | **Total stockholders' equity** | **25,992** | **25,368** | | **Total liabilities and stockholders' equity** | **$31,080** | **$31,686** | [Additional Information](index=2&type=section&id=Additional%20Information) This section covers business operations, target markets, investor relations, Q1 2025 conference call details, and forward-looking statement disclosures [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call for Q1 2025 results is scheduled for May 13, 2025, at 5:00 PM ET, with webcast and replay options available - A conference call is scheduled for May 13, 2025, at 5:00 PM ET, with a live webcast available on the company's website and a telephone replay for 7 days[6](index=6&type=chunk) [About CVD Equipment Corporation](index=2&type=section&id=About%20CVD%20Equipment%20Corporation) CVD Equipment Corporation designs and manufactures chemical vapor deposition and thermal processing systems for industrial and R&D sectors, targeting aerospace, high power electronics, and EV battery materials - The company designs and manufactures chemical vapor deposition, thermal processing, and other related equipment for developing and manufacturing materials and coatings[7](index=7&type=chunk) - Major target markets include aerospace & defense (ceramic matrix composites), high power electronics (silicon carbide), and EV battery materials / energy storage[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and potential risks, including market conditions, sales strategies, order changes, supply chain delays, competition, and geopolitical factors - The company claims "safe harbor" protection for forward-looking statements[9](index=9&type=chunk) - Potential risks include market conditions, customer delivery schedule changes, order cancellations, supply chain delays, competition, and ability to obtain raw materials from foreign markets[9](index=9&type=chunk)

Group 1: Company Highlights - AbbVie Inc. has outperformed the Zacks Large Cap Pharmaceuticals industry over the past year with a growth of +10.2% compared to the industry's decline of -12.5%. The company's products, Skyrizi and Rinvoq, are performing well due to new approvals, and robust revenue growth is expected in 2025 following the loss of exclusivity for Humira [4][5] - The TJX Companies, Inc. has outperformed the Zacks Retail – Discount Stores industry over the last six months with a growth of +11.2% compared to +2.2% for the industry. The company benefits from a strong focus on customer experience and consistent increases in customer transactions [5][6] - The Charles Schwab Corp. has underperformed the Zacks Financial – Investment Bank industry over the past six months, with a growth of +5.3% compared to +19.8% for the industry. The company is facing increased expenses due to investments in growth areas and subdued trading revenues [6][7] - Enzo Biochem, Inc. has significantly underperformed the Zacks Medical – Biomedical and Genetics industry over the past year, with a decline of -69.6% compared to -12.6% for the industry. The company faces challenges from market demand and pricing pressures, along with sustained net losses [7][8] - CVD Equipment Corp. has outperformed the Zacks Manufacturing – General Industrial industry over the last six months with a decline of -8.9% compared to -15.2% for the industry. Innovations in products position the company for growth in high-demand markets, despite facing challenges from market overcapacity and fluctuating revenues [8][9] Group 2: Market Trends and Challenges - AbbVie faces near-term headwinds including biosimilar erosion of Humira, competitive pressure on Imbruvica, and slow market growth for Juvederm fillers in the U.S. and China [5] - TJX is experiencing concerns over increased store wage and payroll costs, as well as negative impacts from unfavorable currency translations [6] - Charles Schwab's subdued trading revenues raise concerns due to volatile capital market performance, although opportunistic acquisitions have led to a rise in client assets [7] - Enzo Biochem's long-term recovery is challenged by compliance costs and increased competition, which threaten operational resilience amid macroeconomic issues [8] - CVD Equipment faces challenges from silicon carbide market overcapacity and declining liquidity, which pressure margins in the volatile semiconductor sector [9]

Core Viewpoint - CVD Equipment Corporation (CVV) has shown resilience in its stock performance despite broader market downturns, with significant year-over-year revenue growth and a return to net income in the fourth quarter of 2024 [1][3][10]. Quarterly Revenue and Earnings Performance - Fourth-quarter 2024 revenues reached $7.4 million, an 80.3% increase from $4.1 million in the same quarter of the previous year, although slightly below the $8.2 million in the third quarter of 2024 [2]. - Net income for the quarter was $132,000 or $0.02 per share, compared to a net loss of $2.3 million or $0.33 per share in the fourth quarter of 2023 [3]. - Gross profit was $2 million, reflecting a margin of 27.3%, a significant improvement from a gross loss of $348,000 in the prior year [3]. Full-Year Performance - For the full year 2024, revenues increased by 11.5% to $26.9 million from $24.1 million in 2023, while the net loss narrowed to $1.9 million or $0.28 per share from $4.2 million or $0.62 per share in 2023 [4]. Order Activity and Backlog - Fourth-quarter orders totaled $7.1 million, with a notable $3.5 million follow-on order for the CVI/CVD3500 system from an existing aerospace customer [5]. - Full-year orders rose 8.9% to $28.1 million from $25.8 million in 2023, driven by demand in aerospace and industrial markets [5]. - The year-end backlog increased by 4.9% to $19.4 million from $18.4 million, indicating steady customer interest [6]. Segment Performance - The CVD Equipment segment was the primary driver of revenue growth, benefiting from aerospace and industrial contract activity [7]. - The SDC segment experienced a 28.8% year-over-year revenue increase in the fourth quarter of 2024, supported by strong demand for gas delivery systems [7]. Financial Metrics - Gross margin for the year improved to 23.6% from 21%, despite a $1.3 million inventory write-down on PVT150 systems [8]. - Operating loss for 2024 was reduced to $2.4 million from $4.9 million in 2023, aided by gains from the sale of equipment related to discontinued operations [8]. Cash Position - Cash and cash equivalents at year-end were $12.6 million, down from $14 million a year earlier, while working capital slightly decreased to $13.9 million from $14.3 million [9]. Management Commentary - CEO Emmanuel Lakios highlighted the company's progress in navigating complex market conditions and noted the achievement of positive net income for two consecutive quarters [10]. - CFO Richard Catalano acknowledged challenges from inflation and supply chain costs but expressed confidence in the company's cash position and cost control efforts [10]. Market Challenges - The silicon carbide market, particularly for 150 mm wafers, faces challenges due to global overcapacity and declining wafer prices, impacting future orders [11]. - Management indicated that future orders will depend on broader market recovery and capacity needs [11]. Strategic Focus - The company discontinued its MesoScribe product line in 2024 to focus on core CVD and SDC businesses, reflecting a strategic effort to streamline operations [13]. - Ongoing strategic investments in R&D and sales are aimed at positioning the company for long-term growth and profitability [12].

Financial Data and Key Metrics Changes - The company's Q4 2024 revenue was $7.4 million, an 80.3% increase from $4.1 million in Q4 2023, but lower than $8.2 million in Q3 2024 [6][15] - Full-year revenue for 2024 was $26.9 million, an 11.5% increase from $24.1 million in 2023 [6][20] - Gross profit for Q4 2024 was $2 million, with a gross profit margin of 27.3%, compared to a negative gross profit of $348,000 in Q4 2023 [18] - The operating income for Q4 was $35,000, compared to an operating loss of $2.5 million in Q4 2023 [19] - The net income for Q4 was $132,000 or $0.02 per share, compared to a net loss of $2.3 million or $0.33 per share in Q4 2023 [19] Business Line Data and Key Metrics Changes - Revenue from the CVD Equipment segment increased by $2.8 million, while the SDC segment saw an increase of $0.5 million in Q4 2024 [16] - Orders for the full year 2024 were $28.1 million, up from $25.8 million in 2023, marking an 8.9% increase [9] - The SDC segment's revenue was 28.8% higher than in Q4 2023, driven by strong demand for gas delivery systems [16] Market Data and Key Metrics Changes - The silicon carbide market remains challenging due to global overcapacity and declining wafer prices [8] - The backlog as of December 31, 2024, was $19.4 million, a 4.9% increase from $18.4 million at the end of 2023 [12] Company Strategy and Development Direction - The company focuses on four key strategic segments: Aerospace & Defense, Microelectronics, Energy Storage, and Industrial [11] - The end of life for the MesoScribe product line was completed in 2024 to concentrate on core CVD and SDC product lines [11] - The company aims to build critical customer relationships while managing expenses to achieve long-term profitability and positive cash flow [13] Management's Comments on Operating Environment and Future Outlook - Management expects fluctuations in orders and revenue levels due to the nature of emerging growth markets [12] - The geopolitical environment and potential tariffs may affect the supply chain and increase costs [12] - The company is optimistic about its cash flow and working capital needs for the next 12 months [26] Other Important Information - The company recognized gains on equipment sales of $717,000 from the MesoScribe segment, which ceased operations as of September 30, 2024 [23] - The working capital at December 31, 2024, was $13.9 million, down from $14.3 million at the end of the previous year [24] Q&A Session Summary Question: How did the large $10 million silicon carbide coating order come about? - The order was developed through a combination of customer needs and the company's advertising efforts [32][34] Question: Are there other entities that might need similar solutions? - Yes, there is potential for other customers in the industrial space, but it depends on market growth [38][41] Question: What are the prospects for new orders for PVT200 systems? - Uncertainty exists due to overcapacity and pricing issues in the wafer market [44] Question: How many major aerospace engine manufacturers are there? - There are four major manufacturers, with the company currently having relationships with three [48] Question: What is the outlook for spare parts orders from the aerospace customer? - Spare parts orders declined during COVID, but there is an increase in demand now [62] Question: Are there potential opportunities in the battery materials business? - The company is exploring opportunities beyond its current customer, 1D, but the market is competitive [68] Question: What is the status of the PVT200 system in the field? - The system is meeting performance specifications, but demand will depend on market conditions [71][75] Question: Will operating margins improve in the future? - Margins are expected to improve if overhead is absorbed effectively and first article costs are controlled [85]

Financial Data and Key Metrics Changes - The company's Q4 2024 revenue was $7.4 million, an 80.3% increase from Q4 2023, but lower than the $8.2 million reported in Q3 2024 [4][10] - Full-year revenue for 2024 was $26.9 million, an 11.5% increase from the previous year [4][12] - Gross profit for Q4 was $2 million, with a gross profit margin of 27.3%, compared to a negative gross profit of $348,000 in Q4 2023 [11][12] - The company recorded a net income of $132,000 for Q4 2024, compared to a net loss of $2.3 million in Q4 2023 [12] Business Line Data and Key Metrics Changes - Revenue from the CBD equipment segment increased by $2.8 million in Q4 2024, driven by aerospace and industrial contracts [10] - The SDC segment saw a revenue increase of 28.8% in Q4 2024, attributed to strong demand for gas delivery systems [11] - Orders for the full year 2024 totaled $28.1 million, an 8.9% increase from $25.8 million in 2023 [6] Market Data and Key Metrics Changes - The aerospace and defense market is experiencing ongoing recovery, with a follow-on order of $3.5 million received from an existing aerospace customer [6] - The silicon carbide market remains challenging due to global overcapacity and declining wafer prices [5][8] Company Strategy and Development Direction - The company is focusing on four key strategic segments: aerospace defense, microelectronics, energy storage, and industrial [7] - The end of life for the MesoScribe product line allows the company to concentrate on core CBD and SDC product lines [8] - The company aims to build critical customer relationships while managing expenses to achieve long-term profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expects fluctuations in orders and revenue levels due to the nature of emerging growth markets and geopolitical challenges [8][14] - The company is optimistic about its backlog, which increased to $19.4 million at the end of 2024, up 4.9% from the previous year [8] - Future profitability is contingent on new equipment orders and managing inflationary pressures [14][15] Other Important Information - The company recognized gains of $717,000 from the sale of equipment, primarily from the MesoScribe segment, which ceased operations [13] - Working capital at the end of 2024 was $13.9 million, slightly down from $14.3 million the previous year [13] Q&A Session Summary Question: How did the large $10 million silicon carbide coating order come about? - The order was a result of a developed large volume silicon carbide CMC system for aerospace, driven by customer needs and advertising [19][20] Question: Are there other entities that might need similar solutions? - Yes, there is potential for other customers in the industrial space, but it depends on market growth and demand [24][26] Question: What are the prospects for new orders for PVT200 systems? - Uncertainty exists due to overcapacity and pricing issues in the wafer market, making it difficult to predict new orders [28] Question: How many major aerospace engine manufacturers are there? - There are four major manufacturers, with the company currently having relationships with three of them [30][32] Question: Will the company see follow-up orders for spare parts from a previous customer? - Spare parts orders have been slow due to COVID, but there is an increase in demand for spare parts as operations resume [38][40] Question: Are there potential opportunities to sell to other companies in the battery materials space? - Yes, there are opportunities, but the competition is strong, and the company is in the early stages of exploring these [41][43] Question: What is the outlook for operating margins? - Margins are expected to improve, potentially exceeding 30%, depending on overhead absorption and cost management [49][54]

Financial Data and Key Metrics Changes - The company's Q4 2024 revenue was $7.4 million, an 80.3% increase from Q4 2023, but lower than the $8.2 million reported in Q3 2024 [4][10] - Full-year revenue for 2024 was $26.9 million, an 11.5% increase from the previous year [4][12] - Gross profit for Q4 was $2 million, with a gross profit margin of 27.3%, compared to a negative gross profit of $348,000 in Q4 2023 [11][12] - The company recorded a net income of $132,000 for Q4 2024, compared to a net loss of $2.3 million in Q4 2023 [12] Business Line Data and Key Metrics Changes - Revenue from the CBD equipment segment increased by $2.8 million in Q4 2024, driven by aerospace and industrial contracts [10] - The SDC segment saw a revenue increase of 28.8% in Q4 2024, attributed to strong demand for gas delivery systems [11] - Orders for the full year of 2024 were $28.1 million, an increase of 8.9% from 2023 [6] Market Data and Key Metrics Changes - The aerospace and defense market is experiencing ongoing recovery, with a follow-on order of $3.5 million received from an existing aerospace customer [6] - The silicon carbide market remains challenging due to global overcapacity and declining wafer prices [5][8] Company Strategy and Development Direction - The company is focused on four key strategic segments: aerospace defense, microelectronics, energy storage, and industrial [7] - The end of life for the MesoScribe product line allows the company to concentrate on core CBD and SDC product lines [8] - The company aims to build critical customer relationships while managing expenses to achieve long-term profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expects fluctuations in orders and revenue levels due to the nature of emerging growth markets and geopolitical challenges [8][9] - The company is optimistic about its backlog, which was $19.4 million at year-end 2024, a 4.9% increase from 2023 [8] - Future profitability is contingent on new equipment orders and managing inflationary pressures [14] Other Important Information - The company recognized gains of $717,000 from the sale of equipment during fiscal 2024, primarily from the MesoScribe segment [13] - Working capital at year-end 2024 was $13.9 million, slightly down from $14.3 million in the prior year [13] Q&A Session Summary Question: How did the large $10 million silicon carbide coating order come about? - The order was a result of the company's development of a large volume silicon carbide CMC system for aerospace, which met a need from an industrial customer [19][20] Question: Are there other entities that might need similar solutions? - Yes, the technology is applicable to other customers in the industrial space, but demand expansion is necessary [25][26] Question: What are the prospects for new orders for PVT200 systems? - Uncertainty exists due to overcapacity and pricing issues in the wafer market, making it difficult to predict new orders [28] Question: How many major aerospace engine manufacturers are there? - There are four major manufacturers, with the company currently having relationships with three [32][33] Question: Will the company see follow-up orders for spare parts from a previous customer? - Spare parts orders have started to increase, and the company will continue to support that customer [41] Question: Are there potential opportunities in the battery materials business? - The company is exploring opportunities beyond its current customer, 1D, but the market is competitive [42][44] Question: What is the outlook for operating margins? - Margins are expected to improve, potentially exceeding 30% if overhead is managed effectively [51][57]

Part I [Business Description](index=5&type=section&id=Item%201.%20Description%20of%20Business.) CVD Equipment Corporation, with over 40 years of experience, develops and manufactures advanced materials equipment, focusing on high-growth markets like aerospace and microelectronics [Overview](index=5&type=section&id=Overview) CVD Equipment Corporation specializes in advanced materials, offering chemical vapor deposition, physical vapor transport, and heat treatment equipment - CVD Equipment Corporation has over 40 years of experience in the advanced materials market, focusing on the development and manufacturing of chemical vapor deposition, physical vapor transport, and heat treatment equipment[17](index=17&type=chunk) - The company operates through three reporting segments: CVD Equipment (designs and manufactures equipment), SDC (designs and manufactures ultra-high purity gas and chemical delivery control systems), and MesoScribe (provides advanced materials and coating products, ceased operations in 2024)[19](index=19&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - The company strategically sold its Tantaline subsidiary (May 2023) and closed its MesoScribe business (September 2024) to focus on the equipment business of the CVD Equipment and SDC segments[21](index=21&type=chunk)[53](index=53&type=chunk) [Key Company Strengths](index=5&type=section&id=Key%20Company%20Strengths) The company leverages over 40 years of experience, vertical integration, and proprietary software to transform emerging applications into mainstream manufacturing solutions - The company has over 40 years of equipment experience, utilizing its capabilities in process development, engineering, and vertical manufacturing to transform emerging applications into mainstream manufacturing solutions[22](index=22&type=chunk) - Proprietary real-time software enables rapid configuration, process optimization, and repeatable control, leading to reduced costs, improved quality, and shorter product delivery times[24](index=24&type=chunk) - The company operates application laboratories where customers can collaborate with company scientists and engineers to optimize process performance[24](index=24&type=chunk) [Key Growth Strategies](index=6&type=section&id=Key%20Growth%20Strategies) The core strategy involves focusing on high-growth markets and developing standardized products to complement custom systems - The core strategy is to focus on growth markets in aerospace, microelectronics, and industrial applications[27](index=27&type=chunk) - The company is developing a range of proprietary standardized products to complement its custom legacy systems, aiming for higher throughput, lower costs, and shorter delivery times[25](index=25&type=chunk) - In February 2024, the company received an approximately **$10 million multi-system order** from an industrial customer for depositing silicon carbide protective coatings on OEM components, with delivery expected within 18 to 24 months[29](index=29&type=chunk) [Major Target Markets](index=7&type=section&id=Major%20Target%20Markets) The company targets aerospace, microelectronics, and EV battery materials, providing specialized equipment for advanced applications - Major target markets include aerospace and defense, microelectronics/high-power electronics, and EV battery materials/energy storage[35](index=35&type=chunk) - In aerospace and defense, CVD is a leading manufacturer of preform CVI and fiber coating systems for ceramic matrix composites (CMCs) in aero gas turbine jet engines, securing multiple orders from major aerospace companies in 2022, 2023, and 2024[36](index=36&type=chunk)[37](index=37&type=chunk) - In microelectronics/high-power electronics, the company offers PVT150 systems for 150mm silicon carbide wafers and launched the PVT200 system for 200mm wafers in 2023, receiving its first order in February 2024[39](index=39&type=chunk)[55](index=55&type=chunk) - In EV battery materials/energy storage, increasing demand for nanomaterials like carbon nanotubes (CNTs), graphene, and silicon nanowires (Si-NWs) led to the 2021 launch of the PowderCoat-1100 production system for growing silicon nanowires on carbon nanoparticles[40](index=40&type=chunk)[42](index=42&type=chunk) [Bookings](index=10&type=section&id=Bookings) Total bookings increased by 8.9% in 2024, driven by significant aerospace and industrial orders Bookings Overview | Metric | 2024 Bookings | 2023 Bookings | | :--- | :--- | :--- | | Total Bookings | $28.1 million | $25.8 million | - 2024 bookings increased by **8.9%**, primarily due to increased aerospace and industrial orders[44](index=44&type=chunk) - Significant 2024 orders include a **$10 million multi-system order** from an industrial customer and a **$3.5 million CVI system order** from a major aerospace company[162](index=162&type=chunk) [Segments](index=10&type=section&id=Segments) The company operates through CVD Equipment and SDC segments, having ceased MesoScribe operations in 2024 - **CVD Equipment Segment:** Provides advanced chemical vapor deposition and heat treatment equipment for high-growth production markets and R&D applications, including aerospace advanced materials, high-power electronics (silicon carbide and gallium nitride), and battery nanomaterials[45](index=45&type=chunk)[46](index=46&type=chunk) - **SDC Segment:** Designs and manufactures ultra-high purity gas and chemical delivery control systems for semiconductor manufacturing, aerospace, solar cells, LEDs, and industrial applications, providing a competitive advantage to the CVD Equipment segment[51](index=51&type=chunk) - **MesoScribe Segment:** Provided direct-write printed electronics products and services; ceased operations on September 30, 2024, after selling certain assets and fulfilling remaining orders[52](index=52&type=chunk)[53](index=53&type=chunk) [Products and Technology](index=11&type=section&id=Products%20and%20Technology) The company offers CVD/CVI, PVT systems for SiC wafers, and other advanced thermal processing and gas control technologies - **Chemical Vapor Deposition/Infiltration (CVD/CVI):** Systems for material coating or growth at high temperatures through chemical decomposition and recombination, with CVI being a variant for coating inside porous materials[54](index=54&type=chunk) - **Physical Vapor Transport (PVT):** PVT150 systems (launched 2022) for 150mm silicon carbide crystal growth, and PVT200 systems (developed 2023, first order February 2024) for 200mm silicon carbide crystal growth[55](index=55&type=chunk) - **Other Technologies:** Include rapid thermal processing (RTP) systems for fast heating of semiconductor materials, annealing, diffusion, and low-pressure chemical vapor deposition (LPCVD) furnaces, ultra-high purity gas and liquid control systems, and in-house quartz fabrication[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Intellectual Property](index=12&type=section&id=Intellectual%20Property) The company protects its proprietary information through patents, trademarks, copyrights, and confidentiality agreements - The company protects its proprietary information and intellectual property through patents, trademarks, software copyrights, and confidentiality agreements[60](index=60&type=chunk) - The company believes future success primarily depends on the technical capabilities and innovative skills of its employees and the ability to commercialize next-generation intellectual property[62](index=62&type=chunk) [Research and Development](index=13&type=section&id=Research%20and%20Development) R&D focuses on new product development based on market needs and collaborations with universities for future opportunities - The company develops new products based on market analysis or customer needs, covering mechanical hardware, software and control systems, and overall configurations[63](index=63&type=chunk) - The company collaborates with leading universities and startups on research for silicon deposition, silicon carbide growth, carbon nanotubes, graphene, nanowire growth and infiltration, and aerospace manufacturing processes to capture future commercial opportunities[63](index=63&type=chunk) [Markets and Marketing](index=13&type=section&id=Markets%20and%20Marketing) The company serves global emerging and mature markets through direct sales, industry events, and online promotion - The company serves global emerging and mature markets, including compound semiconductor high-power electronics, aerospace, defense, battery energy storage, silicon and other microelectronics and micro-mechanical devices, semiconductors, universities, and research centers[64](index=64&type=chunk) - Key marketing activities include direct sales, participation in industry associations and trade shows, and promotion through the company website, with increased trade show and industry conference participation in 2024[64](index=64&type=chunk) [Customers](index=13&type=section&id=Customers) The company serves a diverse global customer base, with significant revenue concentration from a single aerospace customer in 2024 - Customers include aerospace gas turbine jet engine component material producers, defense, compound semiconductor wafer manufacturers, battery energy storage, silicon and other microelectronics and micro-mechanical device manufacturers, semiconductors, universities, and research centers, with a customer base spanning domestic and international markets[65](index=65&type=chunk) Customer Concentration | Customer Concentration | 2024 | 2023 | | :--- | :--- | :--- | | One customer (of total revenues) | 29.5% | N/A | | Three customers (of total revenues) | N/A | 14.3%, 13.5%, 10.9% | Export Sales | Export Sales | 2024 | 2023 | | :--- | :--- | :--- | | % of Total Revenues | 4.3% | 17.2% | [Competition](index=14&type=section&id=Competition) The company faces intense competition, differentiating through expertise, technology, quality, and customer support - The company faces intense competition from domestic and international competitors in all product areas, including larger companies with more resources and smaller companies competing primarily on price[68](index=68&type=chunk)[106](index=106&type=chunk) - The company competes primarily through expertise, technical performance, quality, delivery, price, and after-sales support, focusing on growth markets with technical and commercial competitive advantages[68](index=68&type=chunk) - SDC's gas management and chemical delivery control systems differentiate from competitors due to advanced technology and deep understanding of field applications[70](index=70&type=chunk) [Sources of Supply](index=14&type=section&id=Sources%20of%20Supply) The company sources most components from non-affiliated suppliers and leverages vertical manufacturing for competitive advantage - Most components are procured from non-affiliated suppliers, with no reliance on any single major supplier, and alternative suppliers are generally available[71](index=71&type=chunk) - The company has a well-equipped machine shop for in-house manufacturing of most metal components and sufficient quartz fabrication capabilities, considering vertical manufacturing integration a competitive advantage[73](index=73&type=chunk) - All procured and internally manufactured materials undergo stringent quality control processes to ensure they meet or exceed company and customer requirements[74](index=74&type=chunk) [Backlog](index=15&type=section&id=Backlog) Backlog increased to $19.4 million by December 31, 2024, but does not guarantee future revenue Backlog Overview | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Backlog | $19.4 million | $18.4 million | - As of December 31, 2024, the backlog includes approximately **$17.4 million** in remaining performance obligations for system contracts and approximately **$1.9 million** in other non-system orders[75](index=75&type=chunk) - Backlog does not necessarily represent actual future revenue due to potential cancellations, delays, and changes in sales mix and contract timing[76](index=76&type=chunk) [Government Regulations](index=15&type=section&id=Government%20Regulations) The company is subject to environmental, labor, and export control regulations, requiring continuous monitoring and compliance - The company is subject to federal, state, and local government regulations, including environmental, labor, and export control regulations (EAR)[77](index=77&type=chunk)[80](index=80&type=chunk) - The company utilizes internal safety teams and consultants to continuously monitor and comply with environmental health and safety regulations related to its facilities and customer equipment installations[78](index=78&type=chunk) - The company continuously monitors and complies with U.S. Export Administration Regulations (EAR), particularly for sales to China and other international customers, to avoid penalties and restrictions on export capabilities[80](index=80&type=chunk) [Product Liability](index=16&type=section&id=Product%20Liability) Products involving hazardous materials and extreme temperatures pose potential product liability risks, despite insurance coverage - The company's products involve explosive, flammable, corrosive, and toxic gases, as well as extreme temperatures during manufacturing, posing potential risks of personal injury and property damage, which may lead to product liability claims[81](index=81&type=chunk) - Management annually reviews insurance coverage and believes it is sufficient for business risks, but cannot guarantee existing policies will cover all potential liabilities[81](index=81&type=chunk) [Human Capital](index=16&type=section&id=Human%20Capital) The company focuses on fostering a respectful work environment, employee development, and competitive compensation to attract and retain talent Employee Count | Employee Count | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Employees | 118 | 128 | | Manufacturing | 58 | N/A | | Engineering (R&D, product improvement) | 30 | N/A | | Field Service | 5 | N/A | | Sales and Marketing | 10 | N/A | | General Management, Maintenance, Admin | 15 | N/A | - The company is committed to fostering a work environment of respect, communication, goal orientation, and work-life balance, emphasizing employee development and training, with plans to establish succession planning for key positions[83](index=83&type=chunk) - The company maintains strict environmental, health, and safety protocols and reviews employee compensation plans to attract, retain, and motivate qualified and diverse professionals[84](index=84&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from customer concentration, volatile sales, market demand fluctuations, international operations, and supply chain disruptions [Risks related to sales and product development](index=18&type=section&id=Risks%20related%20to%20sales%20and%20product%20development) High customer concentration, long sales cycles, and rapid technological changes pose significant risks to sales and profitability - High customer concentration, with one customer accounting for **29.5% of total revenue** in 2024, means changes in order patterns, delays, or cancellations could materially adversely affect business and operating results[90](index=90&type=chunk) - Long and variable sales cycles (several months to over a year) make sales volume and timing difficult to predict, increasing the risk of customer cancellations or non-contracting[91](index=91&type=chunk) - Product demand and profitability are highly volatile, influenced by global and regional economic developments, government budget constraints, capacity utilization, manufacturer capital resources, technological changes, and supply chain disruptions[96](index=96&type=chunk)[102](index=102&type=chunk) - Reliance on international business (historically a significant portion of revenue) means operating results can be negatively affected by economic downturns, changes in trade policies, imposition of tariffs, and exchange rate fluctuations in various countries or regions[98](index=98&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - The company may not keep pace with rapid technological changes, requiring continuous R&D investment and timely new product introductions to meet customer needs, otherwise, the business could be severely harmed[104](index=104&type=chunk)[105](index=105&type=chunk) - Intense competition from larger, more financially robust diversified companies and smaller emerging companies offering lower prices could harm the company's pricing, customer orders, revenue, gross margins, and market share[106](index=106&type=chunk) [Risks related to manufacturing and our supply chain](index=22&type=section&id=Risks%20related%20to%20manufacturing%20and%20our%20supply%20chain) Manufacturing disruptions, supply chain issues, inflation, and weather events can increase costs and hinder customer fulfillment - Manufacturing disruptions or delays can affect the company's ability to meet customer demand and lead to increased costs, often due to long lead times or single/limited suppliers for key components[108](index=108&type=chunk) - Geopolitical developments and supply chain disruptions have led to increased costs and delivery delays for certain components and materials, potentially impacting revenue recognition and reducing gross margins[111](index=111&type=chunk) - Inflation has adversely affected material, production, and labor costs, and fixed sales prices in customer contracts mean any cost increases could negatively impact gross margins and operating results[112](index=112&type=chunk) - Manufacturing facilities in Central Islip and Saugerties, NY, are susceptible to various weather risks, particularly the Central Islip facility facing hurricane risks, potentially causing production damage and inability to fulfill customer commitments[115](index=115&type=chunk) [Risks related to cybersecurity, intellectual property and regulatory compliance](index=24&type=section&id=Risks%20related%20to%20cybersecurity%2C%20intellectual%20property%20and%20regulatory%20compliance) Cybersecurity threats, inadequate IP protection, and non-compliance with export, anti-corruption, and environmental regulations pose significant financial and reputational risks - Cyberattacks could result in substantial costs for the company, potentially leading to significant liabilities, reputational damage, and operational disruptions if successful[116](index=116&type=chunk)[117](index=117&type=chunk) - If the company cannot recoup R&D investments or protect its proprietary technology through patents and confidentiality agreements, its financial condition and operating results could be severely harmed[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - Export sales are subject to U.S. Export Administration Regulations (EAR), and failure to obtain required export licenses or comply with regulations could result in substantial fines and restricted export capabilities[123](index=123&type=chunk) - Non-compliance with the U.S. Foreign Corrupt Practices Act and environmental regulations could lead to severe penalties, significant remediation liabilities, fines, or operational disruptions[124](index=124&type=chunk)[125](index=125&type=chunk) - Regulations related to "conflict minerals" may increase expenses, complicate the supply chain, and potentially harm customer relationships[127](index=127&type=chunk) [Risks related to financial and accounting matters](index=27&type=section&id=Risks%20related%20to%20financial%20and%20accounting%20matters) Cyclical demand, lack of long-term contracts, sustained losses, internal control deficiencies, and acquisition risks can negatively impact financial performance - Cyclical fluctuations in product demand make it difficult for the company to accurately budget expense levels, leading to volatile operating results and potentially requiring timely adjustments to cost structures or increased manufacturing capacity[128](index=128&type=chunk)[129](index=129&type=chunk) - The company does not have long-term volume production contracts with customers, and the timing and quantity of customer orders are beyond its control, potentially leading to underutilization of manufacturing facilities and infrastructure, negatively impacting financial condition and operating results[131](index=131&type=chunk) - Sustained operating losses may make it difficult for the company to obtain commercially reasonable financing, and issuing additional common stock to fund growth plans and operations could dilute existing shareholders' equity[132](index=132&type=chunk) - Future discovery of deficiencies in internal controls over financial reporting could adversely affect the company's ability to analyze, record, and report financial information free of material misstatement[133](index=133&type=chunk) - Acquisitions, as part of future growth strategies, involve numerous risks, including integration difficulties of personnel, operations, and technology, diversion of management attention, loss of key employees, insufficient synergies, and impairment of acquired assets due to technological advancements or underperformance[136](index=136&type=chunk)[138](index=138&type=chunk)[135](index=135&type=chunk) [Risks related to product liability](index=29&type=section&id=Risks%20related%20to%20product%20liability) Product liability claims from hazardous materials and uncertain health impacts of nanotechnology pose significant risks - The company faces risks of product liability claims because its products involve toxic materials and extreme temperatures in operation, potentially causing personal injury or property damage[138](index=138&type=chunk) - Uncertainty regarding the health and environmental impacts of nanotechnology (particularly carbon nanotubes) could adversely affect the company's business expansion if these materials are deemed harmful[139](index=139&type=chunk)[140](index=140&type=chunk) [Risks related to our stock](index=30&type=section&id=Risks%20related%20to%20our%20stock) The company's common stock price is highly volatile and subject to various market and company-specific factors - The company's common stock price is highly volatile and could decline significantly due to macroeconomic conditions, geopolitical events, market uncertainties, capital issuances, order fluctuations, product performance issues, financial announcements, analyst recommendations, strategic transactions, and trading volume[142](index=142&type=chunk) - Historical volatility in the technology stock market suggests that the company's common stock price may continue to fluctuate in the future, potentially leading to securities class action lawsuits[143](index=143&type=chunk) [General risks](index=30&type=section&id=General%20risks) The company's success heavily relies on key personnel, and challenges in talent retention and recruitment pose a significant risk - The company's success is highly dependent on the technical, sales, marketing, and management contributions of key individuals, including the CEO and President, and faces challenges in retaining and recruiting qualified talent (especially engineers) in a competitive labor market[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments in this report - No unresolved staff comments[147](index=147&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) CVD has implemented a risk-based cybersecurity approach with reasonable measures, regular testing, and board oversight - The company has implemented a risk-based approach to identify and assess cybersecurity threats that could affect its business and information systems, employing commercially reasonable measures, tools, and methods to manage cybersecurity risks[148](index=148&type=chunk) - Specific controls include endpoint threat detection, identity and access management (IAM), privileged access management (PAM), logging and monitoring, multi-factor authentication (MFA), firewalls and intrusion detection/prevention, and vulnerability and patch management[148](index=148&type=chunk) - The company conducts regular cybersecurity assessments, ongoing employee training, periodic phishing email simulations, and maintains incident response and IT continuity plans[149](index=149&type=chunk) - The Board of Directors and Audit Committee oversee the company's cybersecurity efforts, with the Director of Information Technology providing regular updates on the cybersecurity program[150](index=150&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) The company owns two unmortgaged facilities in New York, serving as headquarters, R&D, and manufacturing sites Company Properties | Location | Size (sf) | Segment | Principal Use | Mortgage/Loan | | :--- | :--- | :--- | :--- | :--- | | Central Islip, NY | 128,000 | CVD Equipment / MesoScribe | Corporate headquarters; R&D; Manufacturing | No | | Saugerties, NY | 22,000 | SDC | Manufacturing; Administration | No | [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings.) There are no applicable legal proceedings in this report - No applicable legal proceedings[152](index=152&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) There are no applicable mine safety disclosures in this report - No applicable mine safety disclosures[152](index=152&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, has never paid dividends, and has no recent unregistered sales or issuer equity purchases [Market Information for Common Stock](index=32&type=section&id=Market%20Information%20for%20Common%20Stock) The company's common stock is traded on the Nasdaq Capital Market under the symbol "CVV" - The company's common stock is traded on the Nasdaq Capital Market under the ticker symbol "CVV"[153](index=153&type=chunk) [Dividend Policy](index=32&type=section&id=Dividend%20Policy) The company has never paid dividends and plans to retain earnings for business development - The company has never paid dividends on its common stock and currently does not intend to, planning to retain earnings for business development[154](index=154&type=chunk) - Future dividend policy will be at the discretion of the Board of Directors, depending on earnings, financial needs, and overall business conditions[154](index=154&type=chunk) [Stockholders](index=32&type=section&id=Stockholders) As of March 18, 2025, the company had approximately 55 record holders and 3,544 beneficial owners of common stock Stockholder Count | Metric | As of March 18, 2025 | | :--- | :--- | | Holders of Record | ~55 | | Beneficial Owners | ~3,544 | [Recent Sales of Unregistered Securities](index=32&type=section&id=Recent%20Sales%20of%20Unregistered%20Securities) There were no recent sales of unregistered securities - No recent sales of unregistered securities[156](index=156&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) There were no issuer purchases of equity securities - No issuer purchases of equity securities[157](index=157&type=chunk) [Reserved](index=32&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved with no related information - Item 6 is reserved[158](index=158&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, revenue grew 11.5% to $26.9 million, gross profit increased 24.8% to $6.3 million, and net loss narrowed 54.6% to $1.9 million, despite a $1.3 million PVT inventory write-down [Executive Summary](index=33&type=section&id=Executive%20Summary) Revenue and gross profit increased in 2024, while net loss improved, driven by aerospace and industrial orders despite an inventory write-down Financial Highlights | Metric | 2024 | 2023 | Change | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $26.876 million | $24.109 million | +$2.767 million | +11.5% | | Gross Margin | $6.331 million | $5.071 million | +$1.260 million | +24.8% | | Total Bookings | $28.1 million | $25.8 million | +$2.3 million | +8.9% | | Backlog | $19.4 million | $18.4 million | +$0.8 million | +4.9% | | Net Loss | $(1.898) million | $(4.180) million | +$2.282 million | +54.6% (improvement) | | Cash Balance (Dec 31) | $12.6 million | $14.0 million | $(1.4) million | -10.0% | - Gross profit growth was due to increased revenue and improved margins on contracts under construction, partially offset by a **$1.3 million non-cash expense** for writing down certain PVT inventory to net realizable value[162](index=162&type=chunk) - 2024 orders include a **$10 million multi-system order** from an industrial customer and a **$3.5 million CVI system order** from a major aerospace company[162](index=162&type=chunk) [Business Update](index=34&type=section&id=Business%20Update) The company focuses on high-growth markets, with PVT150 demand declining but new PVT200 and CVI orders secured - The company's core strategy is to focus on growth end markets in aerospace, microelectronics (including "electrification of everything"), and industrial applications[163](index=163&type=chunk) - Market demand for PVT150 systems has decreased due to lower-than-expected EV sales and global overcapacity of 150mm silicon carbide wafers[165](index=165&type=chunk) - In February 2024, the company received an order for a PVT200 system from a new customer for growing 200mm silicon carbide crystals, which shipped in Q3 2024[166](index=166&type=chunk) - The company secured additional CVI system orders from the same aerospace company in 2023 and 2024, and an approximately **$10 million multi-system order** from an industrial customer in February 2024[168](index=168&type=chunk)[169](index=169&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Operating results show increased revenue and gross profit, with a narrowed net loss, despite an inventory write-down [Revenue](index=36&type=section&id=Revenue) Total revenue increased by 11.5% in 2024, driven by CVD Equipment and SDC segments, with one aerospace customer contributing significantly Revenue by Segment | Segment | 2024 Revenue ($ thousands) | 2023 Revenue ($ thousands) | Change ($ thousands) | Percent Change | | :--- | :--- | :--- | :--- | :--- | | CVD Equipment | 18,288 | 16,334 | 1,954 | 12.0% | | SDC | 8,444 | 7,139 | 1,305 | 18.3% | | MesoScribe | 778 | 722 | 56 | 7.8% | | Tantaline | 0 | 462 | (462) | (100.0%) | | Intersegment sales elimination | (634) | (548) | (86) | 15.7% | | **Total Revenue** | **26,876** | **24,109** | **2,767** | **11.5%** | - Revenue growth was primarily attributable to increased revenue from the CVD Equipment segment (**$1.9 million**) and the SDC segment (**$1.3 million**), partially offset by reduced revenue following the sale of Tantaline[175](index=175&type=chunk) - In 2024, one aerospace customer accounted for **29.5% of total revenue** and **43.4% of CVD Equipment segment revenue**[175](index=175&type=chunk) Backlog by Type and Customer | Backlog | Dec 31, 2024 ($ millions) | Dec 31, 2023 ($ millions) | | :--- | :--- | :--- | | Total Backlog | 19.4 | 18.4 | | System Contracts | 17.4 | N/A | | Other Orders | 1.9 | N/A | | One industrial customer (% of backlog) | 41.8% | N/A | | One aerospace customer (% of backlog) | 27.1% | N/A | [Gross Profit](index=37&type=section&id=Gross%20Profit) Gross profit increased by 24.8% to $6.3 million, with margin improvement, despite a $1.3 million inventory write-down Gross Profit and Margin | Metric | 2024 ($ millions) | 2023 ($ millions) | Change ($ millions) | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 6.3 | 5.1 | 1.2 | 24.8% | | Gross Profit Margin | 23.6% | 21.0% | +2.6 pp | N/A | - Gross profit increased due to higher revenue and improved margins on CVD contracts and final MesoScribe sales[181](index=181&type=chunk) - This was partially offset by a **$1.3 million non-cash expense** for writing down certain PVT inventory to net realizable value[181](index=181&type=chunk) [Operating Expenses](index=37&type=section&id=Operating%20Expenses) Total operating expenses decreased by 12.1% in 2024, primarily due to lower G&A and a gain on equipment sales Operating Expenses Summary | Operating Expense | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | 2,627 | 2,596 | 31 | 1.2% | | Selling | 1,656 | 1,632 | 24 | 1.5% | | General and administrative | 5,181 | 5,451 | (270) | (5.0%) | | Gain on sales of equipment | (717) | 0 | (717) | * | | Loss on disposition of Tantaline | 0 | 162 | (162) | * | | Impairment charge | 0 | 111 | (111) | * | | **Total Operating Expenses** | **8,747** | **9,952** | **(1,205)** | **(12.1%)** | - General and administrative expenses decreased due to lower employee compensation and professional service fees[185](index=185&type=chunk) - The 2024 gain on sales of equipment primarily resulted from MesoScribe assets (**$0.6 million**) and CVD Equipment (**$42 thousand**)[186](index=186&type=chunk) [Other Income, Net](index=38&type=section&id=Other%20Income%2C%20Net) Total other income, net, decreased by 21.1% in 2024, primarily from interest income Other Income, Net Summary | Metric | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Total Other Income, Net | 542 | 687 | (145) | (21.1%) | | Interest Income | 559 | 577 | (18) | (3.1%) | - Other income primarily consisted of interest income from U.S. Treasury bills[190](index=190&type=chunk) [Net Loss](index=35&type=section&id=Net%20Loss) Net loss improved by 54.6% in 2024 to $1.9 million, with basic and diluted loss per share at $(0.28) Net Loss and Income Tax | Metric | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Net Loss | (1,898) | (4,180) | 2,282 | 54.6% (improvement) | | Income Tax Expense (Benefit) | 24 | (14) | 38 | * | Loss per Common Share | Loss per Common Share | 2024 | 2023 | | :--- | :--- | :--- | | Basic | $(0.28) | $(0.62) | | Diluted | $(0.28) | $(0.62) | [Inflation and Supply Chain Matters](index=38&type=section&id=Inflation%20and%20Supply%20Chain%20Matters) Inflation and supply chain disruptions increased costs and delayed deliveries, impacting revenue and margins, prompting mitigation efforts - The company experienced increased material and component costs and delivery delays due to inflation and geopolitical developments, affecting revenue recognition and gross margins[192](index=192&type=chunk) - The company has taken measures to mitigate impacts, including extending order lead times, evaluating alternative suppliers, utilizing internal flexible manufacturing, and increasing sales prices[192](index=192&type=chunk) - Inflation led the company to review and adjust salaries and implement bonus incentives to remain competitive in employee recruitment and retention[193](index=193&type=chunk) - Significant increases in tariffs on purchased goods could negatively impact the company's business and operating results by raising product manufacturing costs[193](index=193&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and operating cash flow are expected to meet working capital and capital expenditure needs for the next 12 months Working Capital and Cash | Metric ($ millions) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Working Capital | 13.9 | 14.3 | | Cash and Cash Equivalents | 12.6 | 14.0 | Cash Flow Activities | Cash Flow Activity | 2024 ($ millions) | 2023 ($ millions) | | :--- | :--- | :--- | | Net cash used in operating activities | (1.5) | (0.2) | | Net cash provided by (used in) investing activities | 0.1 | (0.1) | | Net cash used in financing activities | (0.1) | (0.0) | - Management believes existing cash and cash equivalents and anticipated operating cash flows will be sufficient to meet working capital and capital expenditure requirements for the next twelve months[198](index=198&type=chunk) [Critical Accounting Estimates](index=39&type=section&id=Critical%20Accounting%20Estimates) Key accounting estimates include long-term contract revenue, inventory valuation, deferred tax assets, and long-lived asset impairment - Critical accounting estimates include long-term contract revenue recognition (cost-to-cost method), inventory valuation, allowance for credit losses, deferred tax asset valuation allowance, estimated lives and impairment considerations for long-lived assets, and stock-based compensation valuation[201](index=201&type=chunk)[328](index=328&type=chunk) - Revenue from sales of custom chemical vapor deposition equipment is recognized over time using the cost-to-cost method, which requires significant judgment in estimating total project costs[203](index=203&type=chunk)[204](index=204&type=chunk) - Long-lived assets are reviewed for impairment when indicators or circumstances suggest, with impairment loss measured as the amount by which carrying value exceeds fair value, relying on estimates of future undiscounted cash flows[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable - Item 7A is not applicable[208](index=208&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The required consolidated financial statements are included starting on page F-1 of this annual report on Form 10-K - Consolidated financial statements are included starting on page F-1 of this annual report on Form 10-K[209](index=209&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=41&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in accountants or disagreements on accounting and financial disclosure - No changes in accountants or disagreements with accountants on accounting and financial disclosure[210](index=210&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management assessed disclosure controls and internal controls over financial reporting as effective, with no significant changes in internal controls during the quarter [Disclosure Controls and Procedures](index=41&type=section&id=Disclosure%20Controls%20and%20Procedures) Management assessed the company's disclosure controls and procedures as effective as of December 31, 2024 - As of December 31, 2024, management, under the guidance of the Chief Executive Officer and Chief Financial Officer, assessed and determined the company's disclosure controls and procedures to be effective[211](index=211&type=chunk)[212](index=212&type=chunk) - Disclosure controls and procedures are designed to provide reasonable assurance that information is accumulated and communicated to management in a timely manner for disclosure decisions[212](index=212&type=chunk) [Changes in Internal Controls](index=41&type=section&id=Changes%20in%20Internal%20Controls) No significant changes in internal controls over financial reporting occurred during the most recent fiscal quarter - No significant changes in internal controls over financial reporting occurred or are reasonably likely to occur during the most recent fiscal quarter[213](index=213&type=chunk) [Limitations on the Effectiveness of Controls](index=41&type=section&id=Limitations%20on%20the%20Effectiveness%20of%20Controls) Control systems, regardless of design, cannot provide absolute assurance of achieving objectives, and evaluations cannot detect all control issues or fraud - The company believes that no matter how well designed and operated, control systems cannot provide absolute assurance that control system objectives will be met, and no control evaluation can provide absolute assurance that all control issues and fraud within the company will be detected[214](index=214&type=chunk) [Management's Annual Report on Internal Control Over Financial Reporting](index=42&type=section&id=Management%27s%20Annual%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting.) Management is responsible for internal controls and assessed them as effective, with no auditor attestation report included - Management is responsible for establishing and maintaining effective internal control over financial reporting[215](index=215&type=chunk) - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2024, based on the COSO framework, and concluded it was effective[215](index=215&type=chunk) - This annual report does not include an attestation report of the registered public accounting firm regarding internal control over financial reporting, in accordance with SEC regulations[216](index=216&type=chunk) [Other Information](index=42&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Item 9B is not applicable[217](index=217&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=42&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Item 9C is not applicable[218](index=218&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=42&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The Board comprises six diverse members, with independent oversight, and the company adheres to ethical and insider trading policies [Background and Experience of Directors](index=42&type=section&id=Background%20and%20Experience%20of%20Directors) The Board consists of six members with diverse experience, focusing on ethics, independence, and industry expertise for director recommendations - The Board of Directors consists of six members (as of March 19, 2025), with diverse experience and skills in engineering, finance, and business[220](index=220&type=chunk)[254](index=254&type=chunk) - The Nominating, Governance, and Compliance Committee primarily considers candidates' ethics, integrity, independence, and relevant industry experience when recommending directors[222](index=222&type=chunk) Directors and Executive Officers | Name | Age | Position(s) with the Company | | :--- | :--- | :--- | | Emmanuel Lakios | 63 | Chief Executive Officer, President, Director | | Lawrence J. Waldman | 78 | Chairman of the Board of Directors, Chairman-Audit Committee | | Robert M. Brill | 78 | Director, Chairman – Nominating, Governance, and Compliance Committee | | Ashraf Lotfi | 64 | Director, Chairman – Compensation Committee | | Debra Wasser | 60 | Director | | Andrew Africk | 58 | Director | | Richard A. Catalano | 65 | Chief Financial Officer, Executive Vice President, Secretary and Treasurer | | Kevin R. Collins | 59 | Vice President and General Manager of SDC | | Jeffrey A. Brogan | 55 | Vice President of Sales and Marketing | | Maxim S. Shatalov | 54 | Vice President of Engineering and Technology | | Warren D. Cheesman | 52 | Vice President of Manufacturing Operations | [Board Leadership](index=47&type=section&id=Board%20Leadership) The Board ensures effective and independent oversight through executive sessions, independent committees, and an independent chairman - The Board ensures effective and independent oversight of management through executive sessions of independent directors, independent committee members, and the appointment of an independent Chairman (Mr. Waldman)[252](index=252&type=chunk)[253](index=253&type=chunk)[256](index=256&type=chunk) - CEO Emmanuel Lakios is responsible for implementing company strategy and leading performance discussions related to company strategy at the Board level[253](index=253&type=chunk) [Code of Ethics](index=48&type=section&id=Code%20of%20Ethics) The company has adopted a Code of Business Conduct and Ethics applicable to all employees, senior management, and the Board - The company has adopted a Code of Business Conduct and Ethics applicable to all employees, senior management, and the Board of Directors[255](index=255&type=chunk) [Insider Trading Policy](index=48&type=section&id=Insider%20Trading%20Policy) The company has an insider trading policy to regulate securities transactions by directors, officers, and employees - The company has adopted an insider trading policy to regulate the purchase, sale, and other dispositions of securities by directors, officers, and employees, ensuring compliance with insider trading laws and regulations[255](index=255&type=chunk) [Audit Committee](index=49&type=section&id=Audit%20Committee) The Audit Committee, composed of independent directors, oversees the independent registered public accounting firm and financial statements - The Audit Committee consists of Lawrence J. Waldman (Chairman), Robert M. Brill, and Debra Wasser, all of whom meet Nasdaq Stock Market independence requirements[257](index=257&type=chunk) - The Audit Committee is responsible for the appointment, compensation, retention, and oversight of the independent registered public accounting firm, and reviews the company's annual audited financial statements and audit fees[257](index=257&type=chunk) - Mr. Lawrence J. Waldman is designated as an "audit committee financial expert" as defined by SEC rules[258](index=258&type=chunk) [Section 16(a) Beneficial Ownership Reporting Compliance](index=49&type=section&id=Section%2016%28a%29%20Beneficial%20Ownership%20Reporting%20Compliance) All Section 16(a) reports for officers, directors, and 10% shareholders were timely filed for the fiscal year ended December 31, 2024 - Based on review, all Section 16(a) reports for officers, directors, and 10% shareholders were timely filed for the fiscal year ended December 31, 2024[259](index=259&type=chunk) [Executive Compensation](index=49&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation decreased in 2024 due to no option awards, while non-employee directors received cash and equity retainers [Summary Compensation Table](index=49&type=section&id=Summary%20Compensation%20Table) Executive compensation decreased in 2024 for named executive officers, primarily due to the absence of option awards Executive Compensation Summary | Name and Principal Position | Year | Salary ($) | Bonus ($) | Option Awards ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Emmanuel Lakios, President and CEO | 2024 | 415,000 | - | - | - | 20,744 | 435,744 | | | 2023 | 388,600 | - | 699,990 | - | 19,522 | 1,108,112 | | Richard Catalano, Secretary, CFO, EVP | 2024 | 283,800 | - | - | - | 26,772 | 310,572 | | | 2023 | 274,700 | - | 233,330 | - | 27,201 | 535,231 | | Jeffrey A. Brogan, VP Sales & Marketing | 2024 | 206,000 | 25,000 | - | - | 7,578 | 238,578 | | | 2023 | 203,300 | - | 139,998 | - | 7,863 | 351,161 | - No stock options were granted to named executive officers in 2024[262](index=262&type=chunk) [Employment Agreements and Potential Payments Upon Termination or Change in Control](index=50&type=section&id=Employment%20Agreements%20and%20Potential%20Payments%20Upon%20Termination%20or%20Change%20in%20Control) Employment agreements outline base salary, bonus eligibility, and termination benefits for executives, including non-compete clauses - Emmanuel Lakios' employment agreement stipulates an initial annual base salary of **$288,000** and participation in a bonus plan[263](index=263&type=chunk) - Upon termination, Mr. Lakios is entitled to unpaid base salary, expense reimbursements, severance, and vested stock option rights[264](index=264&type=chunk) - If terminated without cause by the company or for good reason by Mr. Lakios, he is entitled to a pro-rata bonus and nine months of continued base salary and medical benefits[266](index=266&type=chunk) - The agreement includes non-compete, non-solicitation, and confidentiality clauses favorable to the company[268](index=268&type=chunk) [Equity Awards](index=51&type=section&id=Equity%20Awards) The company grants equity awards to employees and non-employee directors, with no grants to named executive officers in 2024 - The company grants equity awards (including stock options) to employees and non-employee directors, with new employee options typically granted in the quarter of hire and annual refresh options in the first quarter of each fiscal year[269](index=269&type=chunk) - Non-employee directors automatically receive initial and annual stock option awards[269](index=269&type=chunk) - No equity awards were granted to named executive officers during fiscal year 2024[271](index=271&type=chunk) [Outstanding Equity Awards at December 31, 2024](index=51&type=section&id=Outstanding%20Equity%20Awards%20at%20December%2031%2C%202024) Named executive officers hold significant unexercised stock options as of December 31, 2024 Outstanding Stock Options | Name | Number of Securities Underlying Options Exercisable | Number of Securities Underlying Options Unexercisable | Exercise Price | Expiration Date | | :--- | :--- | :--- | :--- | :--- | | Emmanuel Lakios | 18,750 | 56,250 | $14.11 | 3/23/2033 | | | 37,500 | 37,500 | $5.02 | 8/17/2032 | | | 75,000 | 25,000 | $4.26 | 6/1/2031 | | | 100,000 | - | $10.30 | 2/6/2027 | | Richard Catalano | 6,250 | 18,750 | $14.11 | 3/23/2033 | | | 10,000 | 10,000 | $5.42 | 8/30/2032 | | Jeffrey A. Brogan | 3,750 | 11,250 | $14.11 | 3/23/2033 | | | 7,500 | 7,500 | $5.02 | 8/17/2032 | | | 15,000 | 5,000 | $4.01 | 7/15/2021 | | | 20,000 | - | $11.61 | 10/31/2027 | [2024 Director Compensation](index=51&type=section&id=2024%20Director%20Compensation) Non-employee directors received annual cash and equity retainers, with additional compensation for committee chairs and the non-executive chairman Director Compensation Summary | Name | Fees Earned or Paid in Cash ($) | Option Awards ($) | Restricted Stock Awards ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Lawrence J. Waldman | 40,000 | 153,000 | - | 113,000 | | Robert M. Brill | 40,000 | 90,000 | - | 50,000 | | Debra Wasser | 40,000 | 80,000 | - | 40,000 | | Ashraf Lotfi | 40,000 | 82,500 | - | 42,500 | | Andrew Africk | 23,738 | 47,474 | - | 23,763 | | Raymond A. Nielsen | 40,000 | 70,435 | - | 30,453 | - The Director Compensation Plan (effective October 1, 2021) provides each director with an annual cash retainer of **$40,000** and an annual equity retainer of **$40,000**[277](index=277&type=chunk) - Committee chairs (Compensation/Nominating, Governance, and Compliance Committees) receive an additional **$10,000** annual chair retainer, the Audit Committee Chair receives **$25,000**, and the Non-Executive Chairman receives **$48,000**[277](index=277&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=53&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Leviticus Partners and Andrew Africk are significant beneficial owners, and all directors and executive officers collectively own 28.0% of common stock [Beneficial Ownership of Certain Beneficial Owners and Management](index=53&type=section&id=Beneficial%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Leviticus Partners and Andrew Africk are major beneficial owners, with all directors and executive officers collectively holding 28.0% of common stock Beneficial Ownership | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class (%) | | :--- | :--- | :--- | | **5% or Greater Shareholder:** | | | | Leviticus Partners, L.P. | 617,832 | 9.0 | | **Directors and Executive Officers:** | | | | Andrew Africk / ADA Partners LP | 1,303,690 | 18.9 | | Emmanuel Lakios | 256,358 | 3.7 | | Kevin R. Collins | 102,437 | 1.5 | | Lawrence J. Waldman | 80,221 | 1.2 | | Jeffrey A. Brogan | 54,519 | * | | Robert M. Brill | 33,006 | * | | Maxim Shatalov | 30,000 | * | | Richard Catalano | 22,500 | * | | Warren Cheesman | 15,000 | * | | Ashraf Lotfi | 14,811 | * | | Debra Wasser | 14,306 | * | | All directors and executive officers and executive employees as a group (eleven persons) | 1,926,848 | 28.0 | - Percentages marked with "*" indicate less than 1% of the total outstanding common stock or voting power[280](index=280&type=chunk) [Equity Compensation Plan Information](index=54&type=section&id=Equity%20Compensation%20Plan%20Information) As of December 31, 2024, 823,125 options were outstanding with a weighted-average exercise price of $8.24, and 183,128 securities remained available for future issuance Equity Compensation Plan Summary | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted-average exercise price of outstanding options, warrants and rights (2) | Number of securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 823,125 | $8.24 | 183,128 | | Equity compensation plans not approved by security holders | — | N/A | — | | **Total** | **823,125** | **$8.24** | **183,128** | - The calculation of the weighted-average exercise price does not include the value of any unvested restricted stock awards[284](index=284&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=54&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) There are no related party transactions, and several directors are deemed independent under Nasdaq rules - No transactions with related parties, promoters, or certain control persons[285](index=285&type=chunk) - Lawrence J. Waldman, Andrew Africk, Robert M. Brill, Debra Wasser, and Ashraf Lotfi are deemed "independent" directors under Nasdaq Stock Market Rule 4200[286](index=286&type=chunk) [Principal Accountant Fees and Services](index=54&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Marcum, LLP's audit fees totaled $249,775 in 2024, a decrease from 2023, with all services pre-approved by the Audit Committee [Fees for Professional Audit Services](index=54&type=section&id=Fees%20for%20Professional%20Audit%20Services) Total professional audit service fees decreased in 2024 to $249,775 Audit Fees Summary | Fee Type | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Audit fees | 224,025 | 236,076 | | Audit-related fees | 25,750 | 55,002 | | All other fees | - | - | | **Total fees** | **249,775** | **291,078** | [Audit Fees](index=54&type=section&id=Audit%20Fees) Audit fees cover quarterly reviews and the annual year-end audit - Audit fees include reviews of the first three quarters and the year-end audit[289](index=289&type=chunk) [Audit-related Fees](index=54&type=section&id=Audit-related%20Fees) Audit-related fees include the 401(k) plan audit and services for registration statements and comfort letters - Audit-related fees include the audit of the company's 401(k) plan and fees related to registration statements and comfort letters[290](index=290&type=chunk) [Audit Committee Approval](index=55&type=section&id=Audit%20Committee%20Approval) All fees and services provided by the independent registered public accounting firm are pre-approved by the Audit Committee - The engagement of the company's independent registered public accounting firm and all billed fees and services provided are pre-approved by the Audit Committee[291](index=291&type=chunk)[292](index=292&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed as part of the 10-K report - Various exhibits and financial statement schedules are listed, including the certificate of incorporation, bylaws, description of securities, lease agreements, employment agreements, insider trading policy, list of subsidiaries, consent of Marcum, LLP, CEO and CFO certifications, and XBRL information[294](index=294&type=chunk)[295](index=295&type=chunk) [Signatures](index=58&type=section&id=Signatures) The report was officially signed by the CEO, CFO, and Board members on March 19, 2025 - The report was signed by President and Chief Executive Officer Emmanuel Lakios and Executive Vice President, Chief Financial Officer, and Secretary Richard Catalano on March 19, 2025[298](index=298&type=chunk) - Directors Lawrence J. Waldman, Andrew Africk, Robert M. Brill, Ashraf Lotfi, and Debra Wasser also signed the report[299](index=299&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 688)](index=60&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20%28PCAOB%20ID%20Number%20688%29) Marcum LLP issued an unqualified opinion on the consolidated financial statements, with revenue recognition as a key audit matter - Marcum LLP issued an unqualified opinion on the company's consolidated financial statements for 2024 and 2023, deeming them fairly presented in all material respects in accordance with U.S. GAAP[303](index=303&type=chunk) - A key audit matter identified was "Revenue Recognition – Estimation of Total Contract Costs," due to management's subjective judgments in estimating costs to complete long-term contracts[307](index=307&type=chunk)[309](index=309&type=chunk) - Audit procedures included understanding management's cost estimation process, reviewing contracts, evaluating cost estimates against prior estimates, and testing estimated costs to complete for uncompleted system projects[311](index=311&type=chunk) [Consolidated Balance Sheets as of December 31, 2024 and 2023](index=62&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20December%2031%2C%202024%20and%202023) Total assets decreased to $31.7 million, driven by lower cash and inventory, while total liabilities also decreased to $6.3 million Consolidated Balance Sheets Summary | Metric ($ thousands) | Dec 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 31,686 | 35,025 | (3,339) | | Current Assets | 19,986 | 22,841 | (2,855) | | Cash and cash equivalents | 12,598 | 14,025 | (1,427) | | Inventories | 2,115 | 4,454 | (2,339) | | Total Liabilities | 6,318 | 8,822 | (2,504) | | Accounts payable | 679 | 1,203 | (524) | | Contract liabilities | 3,135 | 4,908 | (1,773) | | Total Stockholders' Equity | 25,368 | 26,203 | (835) | [Consolidated Statements of Operations for the years ended December 31, 2024 and 2023](index=63&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20years%20ended%20December%2031%2C%202024%20and%202023) Revenue increased 11.5% to $26.9 million, gross profit rose 24.8% to $6.3 million, and net loss improved 54.6% to $1.9 million Consolidated Statements of Operations Summary | Metric ($ thousands) | 2024 | 2023 | Change | Percent Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 26,876 | 24,109 | 2,767 | 11.5% | | Cost of revenue | 20,545 | 19,038 | 1,507 | 7.9% | | Gross profit | 6,331 | 5,071 | 1,260 | 24.8% | | Total operating expenses, net | 8,747 | 9,952 | (1,205) | (12.1%) | | Operating loss | (2,416) | (4,881) | 2,465 | 50.5% (improvement) | | Net loss | (1,898) | (4,180) | 2,282 | 54.6% (improvement) | | Basic Loss per Common Share | (0.28) | (0.62) | 0.34 | N/A | | Diluted Loss per Common Share | (0.28) | (0.62) | 0.34 | N/A | [Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2024 and 2023](index=64&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20years%20ended%20December%2031%2C%202024%20and%202023) Total stockholders' equity decreased to $25.4 million, primarily due to net loss, partially offset by stock-based compensation Consolidated Statements of Changes in Stockholders' Equity Summary | Metric ($ thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Stockholders' Equity | 25,368 | 26,203 | | Net loss | (1,898) | (4,180) | | Stock-based compensation | 1,063 | 908 | [Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023](index=65&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20years%20ended%20December%2031%2C%202024%20and%202023) Net cash used in operating activities increased to $1.5 million, leading to a $1.4 million decrease in cash and cash equivalents Consolidated Statements of Cash Flows Summary | Cash Flow Activity ($ thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | (1,489) | (206) | | Net cash provided by (used in) investing activities | 144 | (133) | | Net cash used in financing activities | (82) | (1) | | Net decrease in cash and cash equivalents | (1,427) | (340) | | Cash and cash equivalents at end of year | 12,598 | 14,025 | - Net cash used in operating activities in 2024 was primarily due to net loss and decreases in contract assets and liabilities, partially offset by a decrease in inventories and non-cash items like excess and obsolete inventory reserves[196](index=196&type=chunk) [Notes to Consolidated Financial Statements](index=66&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, revenue recognition, inventory valuation, and the impact of economic uncertainties [Note 1 – Business Description](index=66&type=section&id=Note%201%20%E2%80%93%20Business%20Description) CVD Equipment Corporation designs and manufactures advanced equipment and process solutions for materials and coatings in industrial and research applications - CVD Equipment Corporation designs, develops, and manufactures various chemical vapor deposition, physical vapor transport, gas control, and other equipment and process solutions[322](index=322&type=chunk) - The company's products are used for material and coating development and manufacturing in industrial applications and research, serving both production environments and R&D centers[322](index=322&type=chunk) [Note 2 - Summary of Significant Accounting Policies](index=66&type=section&id=Note%202%20-%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements are prepared under U.S. GAAP, involving key estimates for long-term contracts, inventory, deferred taxes, and asset impairment - Financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP), requiring management to make estimates and assumptions affecting reported amounts of assets and liabilities[323](index=323&type=chunk)[327](index=327&type=chunk) - Significant accounting estimates include long-term contract revenue recognized using the cost-to-cost method, inventory valuation, allowance for credit losses, deferred tax asset valuation allowance, estimated lives and impairment considerations for long-lived assets, and stock-based compensation valuation[328](index=328&type=chunk) - The company adopted ASU 2023-07 (Segment Reporting) in 2024 and is evaluating ASU 2023-09 (Income Tax Disclosures) and ASU 2024-0

Revenue Performance - Fourth quarter 2024 revenue was $7.4 million, an increase of 80.3% year over year, driven by higher system revenue from the CVD Equipment segment and increased gas delivery system revenue from the SDC segment [2]. - Full year 2024 revenue reached $26.9 million, a rise of 11.5% compared to $24.1 million in 2023, primarily due to increased revenues from aerospace contracts and the SDC segment [8]. Profitability - The gross profit margin for 2024 improved to 23.6%, up from 21.0% in the prior year, attributed to higher revenues and improved margins on CVD contracts [8]. - Fourth quarter operating income was $35,000, compared to an operating loss of $2.5 million in the same quarter of the previous year [4]. - Net income for the fourth quarter was $132,000, or $0.02 per share, compared to a net loss of $2.3 million, or $0.33 per share, in the prior year [4]. Orders and Backlog - The backlog as of December 31, 2024, was $19.4 million, up from $18.4 million at the end of 2023 [2]. - Total new orders for the fiscal year were $28.1 million, an increase of approximately 8.9% from $25.8 million in 2023, driven by aerospace and industrial orders [8]. Strategic Focus - The company continues to invest in research and development and sales and marketing, focusing on aerospace & defense, microelectronics/power electronics, and EV battery materials/energy storage [8]. - The company anticipates fluctuations in order and revenue levels due to the nature of the emerging growth markets and geopolitical challenges affecting the supply chain [2]. Inventory Management - The company recognized a $1.3 million non-cash charge in 2024 to reduce PVT150™ inventory to net realizable value [8].

Core Insights - CanAlaska Uranium Ltd. has confirmed additional high-grade unconformity-associated uranium mineralization at the Pike Zone through recent geochemical assays [1][3][4] - The summer 2024 drill program at the West McArthur project revealed significant uranium intersections, including 17.0 metres at 10.81% U3O8 and 6.5 metres at 10.05% U3O8 [1][3][4] - The ongoing 2025 winter exploration program aims to expand and delineate the high-grade Pike Zone uranium discovery, with three drills currently active [35][37] Company Overview - CanAlaska Uranium is a leading explorer of uranium in the Athabasca Basin, holding approximately 500,000 hectares of uranium properties [39] - The company operates the West McArthur project in joint venture with Cameco Corporation, holding an 85.97% ownership [1][39] - CanAlaska is fully financed for the 2025 drill season and focuses on Tier 1 uranium deposit discovery in a secure jurisdiction [39] Exploration and Drilling Results - The summer 2024 drill program consisted of 12 unconformity tests, with 11 containing uranium mineralization, indicating a strike length of approximately 200 metres [3][4] - Significant drillhole results include WMA082-12 with 17.0 metres at 10.81% U3O8 and WMA094-02 with 6.5 metres at 10.05% U3O8, including high-grade intervals [1][3][4] - The 2025 winter program is expected to achieve around 25 unconformity target intersections, optimizing drilling efficiency through advanced technology [36] Future Plans and Events - CanAlaska will showcase at the Swiss Mining Institute Conference on March 18th and 19th, 2025, to present its exploration progress [38] - The company plans to complete the winter portion of the 2025 exploration program by April [36]

Core Insights - CanAlaska Uranium Ltd. announced significant results from its ongoing winter diamond drill program at the Pike Zone, highlighting an ultra high-grade uranium intersection of 14.5 metres at 12.20% eU3O8, including 5.0 metres at 34.38% eU3O8, marking the best results to date for the project [1][2][4] Company Overview - CanAlaska Uranium Ltd. holds an 85.97% ownership in the West McArthur Joint Venture Project, which is operated in partnership with Cameco Corporation [1][4] - The company is focused on the exploration and discovery of high-grade unconformity uranium deposits in Canada's Athabasca Basin, with a landholding of approximately 500,000 hectares [21][22] Exploration Program Details - The 2025 winter exploration program aims to expand and delineate the ultra high-grade Pike Zone uranium discovery, located 20 km west of Cameco's McArthur River mine site [4][8] - Three drills are currently active, with one drill focusing on step-outs to the east, confirming the extension of high-grade mineralization [5][6] - The program is expected to achieve around 25 unconformity target intersections, utilizing advanced drilling technologies to enhance efficiency and accuracy [8] Drill Results - Drillhole WMA076-01 reported 14.5 metres at 12.20% eU3O8, with a notable section of 5.0 metres at 34.38% eU3O8, expanding the ultra high-grade footprint by at least 15 metres to the east [1][15] - Additional drillholes, such as WMA094-04, confirmed continuity of high-grade mineralization with 4.9 metres at 3.04% eU3O8, including 1.5 metres at 8.87% eU3O8 [6][16] - The ongoing drilling program is designed to evaluate mineralization continuity and identify additional high-grade zones within the Pike Zone [7][8]