UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______. Commission file number: 001-33059 FUEL TECH, INC. (Exact name of registrant as specified in its charter) Delaware 20-5657551 (State or ot ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2023 were $5.5 million, down from $6.4 million in Q2 2022, reflecting higher APC segment revenues offset by a decline in FUEL CHEM product revenue [18][19] - Adjusted EBITDA loss was $1.2 million compared to a loss of $200,000 in the prior year period [23] - Net loss for the quarter was $1 million or $0.03 per share, compared to a net loss of $356,000 or $0.01 per share in the same period last year [47] - Consolidated gross margin for Q2 was 37% of revenues, down from 42% in the prior year period [44] Business Segment Data and Key Metrics Changes - APC segment revenue increased 25% to $3.4 million from $2.7 million in the prior year period, driven by project execution timing and new orders [43][40] - FUEL CHEM product revenue was $2 million, down from $3.6 million in the prior year quarter, primarily due to unplanned client maintenance and outages [19][6] - Consolidated APC segment backlog as of June 30 was $6.6 million, down from $7.6 million at March 31, 2023 [20] Market Data and Key Metrics Changes - The company is pursuing international opportunities for the FUEL CHEM segment, particularly in Mexico, to address emissions from high sulfur fuel oil [14] - The U.S. EPA's new rule tightening NOx emission requirements is expected to drive new APC orders over the next several years [41] Company Strategy and Development Direction - The company is focused on maintaining a conservative cost profile while investing in growth, particularly in water and wastewater treatment technology [36] - The company expects total revenues for 2023 to increase modestly to between $28 million and $30 million, up from $26.9 million in 2022 [17] - The company is working on commercializing its Dissolved Gas Infusion (DGI) technology and has commenced on-site demonstrations [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved performance in the second half of 2023, particularly for the FUEL CHEM segment as maintenance issues have subsided [6][27] - The company anticipates that interest income for 2023 will exceed $1.2 million [47] - Management noted that while it is too early to determine the full impact of DGI technology, initial data shows promising results [37] Other Important Information - Research and development expenses for Q2 increased to $413,000 from $289,000 in the prior year, driven by new product development efforts [21] - The company ended the quarter with total cash and investments of nearly $33 million and no long-term debt [36][48] Q&A Session Summary Question: Are you getting the full benefit of the quarter with all unplanned maintenance activities at client sites complete before Q3? - Management confirmed that most outages were completed in Q2, and they expect a normalized run rate for primary accounts in Q3 [27] Question: Were there any specific actions taken to bring SG&A down? - Management indicated that there were no material changes in human resources for DGI, but they plan to invest in SG&A as they see success in DGI [28][52] Question: Should R&D expenses be expected to be in line with Q2 rather than Q1? - Management confirmed that R&D expenses would likely remain consistent with Q2 as they continue to invest in demonstrations [30][53] Question: Is there a possibility that one of the DGI demonstrations could convert into an order recognized in Q4 2023? - Management acknowledged that while it is a possibility, they do not expect it to be material [63]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements for H1 2023 reflect a slight asset decrease and net loss, primarily due to investing activities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2023, shows a slight asset decrease, with reduced cash offset by increased investments Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $15,134 | $23,328 | | Short-term investments | $12,855 | $2,981 | | Total current assets | $36,585 | $35,825 | | Total assets | $49,609 | $50,124 | | **Liabilities & Equity** | | | | Total current liabilities | $5,126 | $4,766 | | Total liabilities | $5,959 | $5,283 | | Total stockholders' equity | $43,650 | $44,841 | | Total liabilities and stockholders' equity | $49,609 | $50,124 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For H1 2023, revenues increased, but operating and net losses widened, while Q2 2023 saw a revenue decline Statement of Operations Summary (in thousands, except per-share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $5,461 | $6,368 | $12,748 | $11,903 | | Operating loss | $(1,332) | $(485) | $(1,990) | $(1,469) | | Net loss | $(1,044) | $(356) | $(1,458) | $(1,354) | | Diluted net loss per share | $(0.03) | $(0.01) | $(0.05) | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations improved in H1 2023, but overall cash decreased due to substantial investing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $17 | $(3,321) | | Net cash used in investing activities | $(8,288) | $(138) | | Net cash provided by (used in) financing activities | $42 | $(17) | | **Net decrease in cash** | **$(8,194)** | **$(3,756)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, segment performance, and remaining performance obligations - The company's business involves developing proprietary technologies for air pollution control (NOx reduction), process optimization (FUEL CHEM®), and water treatment (DGI® Dissolved Gas Infusion Systems)[23](index=23&type=chunk)[24](index=24&type=chunk) Revenue by Product Technology (in thousands) | Product Line | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Air Pollution Control technology | $6,981 | $4,942 | | FUEL CHEM technology | $5,767 | $6,961 | | **Total Revenues** | **$12,748** | **$11,903** | Revenue by Geography (in thousands) | Geography | H1 2023 | H1 2022 | | :--- | :--- | :--- | | United States | $10,297 | $7,967 | | Foreign | $2,451 | $3,936 | | **Total Revenues** | **$12,748** | **$11,903** | - The planned suspension of the APC business in China continues, with a remaining project backlog of approximately **$3 thousand** and total net assets in China of **$790 thousand** as of June 30, 2023[47](index=47&type=chunk)[49](index=49&type=chunk) - As of June 30, 2023, the company had **$6.61 million** in remaining performance obligations, with approximately **$6.31 million** expected to be recognized as revenue over the next 12 months[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2023 challenges to customer delays and outages, with H1 2023 revenue up and strong liquidity maintained - APC segment revenue increased **41%** to **$7.0 million** in H1 2023 due to the timing of project execution, with a consolidated APC backlog of **$6.6 million** at June 30, 2023[89](index=89&type=chunk) - FUEL CHEM segment revenue decreased **17%** to **$5.8 million** in H1 2023, primarily due to unplanned client maintenance and outages[90](index=90&type=chunk) - Consolidated gross margin for H1 2023 decreased to **38%** from **42%** in H1 2022, mainly due to a change in segment mix and lower APC gross margin[93](index=93&type=chunk) - R&D expenses increased in H1 2023, focusing on new product development, including DGI® Dissolved Gas Infusion Systems for the water and wastewater industries[96](index=96&type=chunk) - The company has a strong liquidity position with **$15.1 million** in cash and cash equivalents, **$31.5 million** in working capital, and no outstanding debt as of June 30, 2023, which management believes is adequate to fund operations for the next 12 months[100](index=100&type=chunk)[105](index=105&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's earnings and cash flow are subject to foreign currency exchange rate fluctuations, but this risk is currently immaterial - The company is exposed to market risk from changes in foreign currency exchange rates but does not use derivative instruments to hedge this exposure due to its immateriality[112](index=112&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and principal financial officer concluded that disclosure controls are effective, with no material changes to internal controls - The CEO and principal financial officer have concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[113](index=113&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[114](index=114&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any litigation that it believes would have a material adverse effect on its business - The company reports no current involvement in litigation expected to have a material adverse effect on its business[115](index=115&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - Risk factors have not materially changed from those reported in the Annual Report on Form 10-K for the year ended December 31, 2022[116](index=116&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[117](index=117&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and principal financial officer - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[118](index=118&type=chunk)

Fuel Tech, Inc. (NASDAQ:FTEK) Q1 2023 Earnings Conference Call May 10, 2023 10:00 AM ET Company Participants Devin Sullivan - Managing Director, The Equity Group Vince Arnone - Chairman, President & Chief Executive Officer Ellen Albrecht - Vice President, Chief Financial Officer & Treasurer Conference Call Participants Sameer Joshi - H.C. Wainwright Operator Greetings, and welcome to Fuel Tech's First Quarter 2023 Financial Results Conference Call. At this time, all participant are in listen only mode. A br ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______. Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchan ...

Start Time: 10:00 January 1, 0000 10:43 AM ET Fuel Tech, Inc. (NASDAQ:FTEK) Q4 2022 Earnings Conference Call March 08, 2023, 10:00 AM ET Company Participants Vince Arnone - Chairman, President and CEO Ellen Albrecht - VP, CFO and Treasurer Devin Sullivan - Managing Director, The Equity Group Conference Call Participants Amit Dayal - H.C. Wainwright Pete Enderlin - MAZ Partners Operator Hello, and welcome to the Fuel Tech, Inc. Fiscal 2022 Fourth Quarter Financial Results Conference Call and Webcast. [Operat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33059 ______________________________ Fuel Tech, Inc. (Exact name of registrant as s ...

Fuel Tech, Inc. (NASDAQ:FTEK) Q3 2022 Earnings Conference Call November 9, 2022 10:00 AM ET Company Participants Devin Sullivan - SVP, The Equity Group Vince Arnone - President and CEO Ellen Albrecht - CFO Conference Call Participants Amit Dayal - H.C. Wainwright Marc Silk - Silk Investment Advisors Operator Greetings and welcome to the Fuel Tech Inc. Third Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to______. Commission file number: 001-33059 FUEL TECH, INC. (Exact name of registrant as specified in its charter) Delaware 20-5657551 (State or ot ...

Financial Data and Key Metrics Changes - For Q2 2022, consolidated revenues rose by 22% to $6.4 million from $5.2 million in Q2 2021, driven by an increase in the APC segment revenue [31][10] - Consolidated gross margin was 42.1%, down from 49.5% in Q2 2021, reflecting lower gross profit margins from both operating segments [32] - The net loss for the quarter was $356,000 or $0.01 per share, compared to a net loss of $778,000 or $0.03 per share in Q2 2021 [37] Business Line Data and Key Metrics Changes - APC revenues increased by approximately $1.8 million to $2.7 million from $1 million in Q2 2021, reflecting project execution timing and revenue generation from new orders [31][13] - FUEL CHEM revenues declined to $3.6 million from $4.2 million in Q2 2021, primarily due to the loss of one customer and unforeseen plant outages [32][15] - APC gross margin was 34.2%, down from 48.6% in Q2 2021, while FUEL CHEM gross margin was 48%, slightly down from 49.7% in the same period last year [33] Market Data and Key Metrics Changes - The consolidated APC segment backlog rose to $10.5 million from $9.1 million at the end of 2021, with expectations to recognize $8.4 million of this backlog in the next 12 months [34] - Increased energy demand is driving coal-fired plants to be dispatched despite rising coal prices, creating opportunities for pollution control projects [17][18] Company Strategy and Development Direction - The company is focused on new contract awards, expedient execution, and technology innovation, particularly in the DGI segment [40] - The company is pursuing a global sales pipeline of $50 million to $75 million, tracking projects with contract values of $5 million to $10 million expected to be awarded soon [14][10] - The company is investigating providing chemical technology solutions for emissions from high-sulfur fuel oil in Mexico, with potential significant revenue opportunities [24][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that APC revenues for the year will exceed $6.9 million reported for 2021, potentially as early as the end of Q3 2022 [13][10] - The company is optimistic about the DGI technology's potential and is preparing for further investment and commercialization efforts [57][58] - Management noted that the recent legislation could provide long-term benefits for technologies that enhance the utilization of fossil fuels [52][55] Other Important Information - The company had total cash of more than $33 million with no long-term debt as of June 30, 2022 [11] - SG&A expenses fell to $2.9 million from $3 million in Q2 2021, with a target for 2022 set between $12 million and $12.5 million [35] Q&A Session Summary Question: Clarification on FUEL CHEM revenues - Management confirmed that the expected revenue range for FUEL CHEM for 2022 is $13 million to $15 million, with a long-term customer deciding to continue using the program [48] Question: Anticipation of revenue increase from Q2 to Q3 - Management expects a typical step-up in revenues from Q2 to Q3, particularly for the FUEL CHEM segment [49] Question: Size of the opportunity in Mexico - The opportunity in Mexico involves 20 to 25 units that could utilize the company's program, with potential annual royalty revenues of $3 million to $4 million from a single plant site [50][51] Question: Impact of IRA legislation on the company - Management indicated that the legislation could provide benefits by preserving the utilization of fossil fuels, which could positively impact the company's technologies [52][55] Question: Resources for DGI commercialization - Management stated that further investment in DGI will be assessed after hiring experienced leadership in water and wastewater treatment [56][57]