Core Viewpoint - Kelso Technologies Inc. reported its audited consolidated financial statements for the year ended December 31, 2024, highlighting a decrease in revenue but an increase in gross profit margin, alongside significant losses due to one-time expenses and challenges in tank car demand [1][2][6]. Financial Performance Summary - Revenues for FY2024 were $10,680,468, a decrease of approximately 2% from $10,819,916 in FY2023 [4][6]. - Gross profit increased to $4,693,632 in FY2024 from $4,582,447 in FY2023, resulting in a gross profit margin of 44%, up from 42% [4][6]. - Total expenses, including non-cash items, rose to $9,315,929 in FY2024 from $6,684,333 in FY2023 [4]. - The net loss for FY2024 was $4,622,297, compared to a loss of $2,101,886 in FY2023 [4][7]. - Adjusted EBITDA loss for FY2024 was $1,249,326, worsening from a loss of $845,487 in FY2023 [4][7]. Liquidity and Capital Resources - As of December 31, 2024, cash on hand was $153,147, down from $1,433,838 in FY2023 [8]. - Working capital decreased to $2,125,386 from $5,026,580 in FY2023 [8]. - Total assets were $6,570,345, a decline from $9,703,271 in FY2023 [8]. - The company obtained a line of credit of $500,000, with $250,000 drawn down in Q1-2025 [8]. Outlook - The company anticipates flat to slightly positive sales growth of 0% to 5% for FY2025, focusing on cost discipline in preparation for increased tank car builds expected in 2026/2027 [9][10]. - Kelso is pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve and Angle Valve, which could open new revenue streams [11]. - Tank car deliveries are projected to improve slightly, with an expected increase to 10,325 units in 2025, representing a 15.8% increase over the 2021-2023 average [12]. Discontinued Operations - The KXI project has been classified as discontinued operations, with significant losses reported and a reassessment of its carrying value leading to a reduction in capitalized R&D to a nominal $1 [13][14]. - The net loss from discontinued operations for FY2024 was $2,969,442, compared to $1,983,789 in FY2023 [14]. Summary - The company is positioned for new value creation with no long-term debt and improved sales prospects from diverse markets, aiming to enhance equity value through financial performance and new proprietary products [15].

Core Viewpoint - Kelso Technologies Inc anticipates flat to slightly positive sales growth for fiscal year 2025, with a focus on maintaining cost discipline and preparing for an upswing in tank car builds expected to begin in 2026 [1][2][7] Financial Performance - For FY2024, the company expects to report revenue of $10.7 million and anticipates a significant loss due to one-time expenses and write-offs [1][2] - The management's cost-cutting initiatives have improved operational efficiency and are expected to positively impact profitability for FY2025 [2][6] Strategic Initiatives - Kelso is pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve (BOV) and Angle Valve (AV), which are in service trial periods, to open new revenue streams [3] - The company is undergoing a strategic reorganization to enhance financial stability while reviewing the KXI HD product line to unlock shareholder value [4] Market Outlook - Tank car deliveries are projected to improve slightly, with actual deliveries for 2024 reaching over 10,000 cars and an expected increase to 10,325 in 2025, representing a 15.8% increase over the 2021-2023 average [5] - Industry projections indicate growth to 13,000 units in 2027, aligning with Kelso's strategic focus on obtaining AAR approvals [5] Liquidity and Capital Resources - Kelso has established a line of credit with Texas Capital Bank for $250,000, enhancing its liquidity position [6]

Core Viewpoint - Kelso Technologies Inc anticipates flat to slightly positive sales growth for fiscal year 2025, with a focus on cost discipline and preparing for increased demand in tank car builds starting in 2026 [1][2][7] Financial Performance - For FY2024, the company expects to report revenue of $10.7 million and anticipates a significant loss due to one-time expenses and write-offs [1][2] - The management's cost-cutting initiatives have improved liquidity, allowing the company to meet vendor obligations and establish a line of credit of $250,000 with Texas Capital Bank [6] Strategic Initiatives - Kelso is pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve (BOV) and Angle Valve (AV), which are in service trial periods, to open new revenue streams [3] - The company is undergoing a strategic reorganization to enhance financial stability while reviewing the KXI HD product line to unlock shareholder value [4] Market Outlook - Tank car deliveries are projected to improve, with actual deliveries for 2024 reaching over 10,000 cars and an expected increase to 10,325 in 2025, representing a 15.8% increase over the 2021-2023 average [5] - Industry projections indicate growth to 13,000 units in 2027, aligning with Kelso's strategic focus on obtaining AAR approvals [5] Conclusion - Kelso Technologies aims for a profitable FY2025 through strategic initiatives and financial restructuring, with a favorable market recovery anticipated post-2025 [7]

Group 1 - Kelso Technologies Inc. has appointed Frank Busch as the permanent Chief Executive Officer after serving as interim CEO since July 2024 [1][2] - The Board of Directors unanimously agreed on the appointment, highlighting Busch's effective leadership during his interim tenure [2] - Busch expressed his commitment to executing the company's strategic plan and achieving growth objectives while managing resources effectively [2] Group 2 - Kelso Technologies specializes in transportation equipment, focusing on proprietary products for rail and automotive sectors [3] - The company is recognized for its high-quality rail tank car valves that ensure safe handling of commodities during transport [3] - Kelso's automotive division has developed an automated suspension-based Advanced Driver Assistance System for critical wilderness operations [3] - The company's innovation aims to enhance public safety and reduce risks associated with human and technology errors [3] Group 3 - Kelso Technologies is preparing to present its FY2025 outlook in the coming weeks, indicating a focus on future growth and strategic initiatives [2]

Company Leadership - Kelso Technologies Inc. has appointed Frank Busch as the permanent Chief Executive Officer after serving as interim CEO since July 2024 [1][2] - The Board of Directors unanimously agreed on this appointment, highlighting Busch's effective leadership during his interim period [2] Strategic Vision - Frank Busch expressed his commitment to executing the company's strategic plan and achieving growth objectives, emphasizing careful resource management and positioning for future opportunities [2] - The company is preparing to present its FY2025 outlook in the coming weeks, indicating a focus on future growth and performance [2] Company Overview - Kelso Technologies is a diverse transportation equipment company specializing in proprietary products for rail and automotive transportation [3] - The company designs and supplies high-quality rail tank car valves for safe handling of commodities and has developed an automated suspension-based Advanced Driver Assistance System for commercial operations [3] - Kelso's products aim to enhance public safety, worker well-being, and minimize environmental harm while providing operational advantages [3]

Core Viewpoint - Kelso Technologies Inc. reported a 20% decrease in revenue for Q3-2024, resulting in a net loss, but showed improvement in expense management compared to the previous quarter [2][4][5]. Financial Performance - Q3-2024 revenue was $2.52 million, down from $3.14 million in Q3-2023, with a net loss of $361,800, an improvement from a net loss of $544,927 in Q2-2024 [2][3]. - Gross profit margin remained above industry average at 44%, slightly down from 45% in Q3-2023 [2][3]. - Adjusted EBITDA loss for Q3-2024 was $(297,751), compared to $(36,142) in Q3-2023 [3]. Liquidity and Capital Resources - As of September 30, 2024, working capital was $3.13 million, down from $5.03 million at the end of 2023 [4][5]. - Cash on hand decreased to $410,416 from $1.43 million at December 31, 2023 [4][5]. - Total assets were $9.62 million, slightly down from $9.70 million at the end of 2023 [5]. Management and Strategic Focus - New management appointments include Frank Busch as interim CEO and Sameer Uplenchwar as CFO, focusing on cost control and expense reduction [2][3]. - The company is undergoing a strategic reorganization to improve financial outlook while maintaining production capabilities [8]. - A strategic review of the KXI HD system is ongoing to maximize shareholder value [2][8]. Market Outlook - The company anticipates a challenging market for tank car demand, with expected deliveries of approximately 8,400 units in 2024 and 8,000 units in 2025 [9]. - Positive growth is forecasted for 2026 and 2027, with deliveries expected to increase to 9,350 units and 13,000 units respectively [9]. - Full AAR approval of the pressure car package is crucial for new revenue growth, with specialized angle valves nearing completion of the approval process [10][11].

Core Points - Kelso Technologies Inc. announced the retirement of CEO James R. Bond effective July 9, 2024, with Frank Busch appointed as interim CEO [2] - Frank Busch has been a director since February 2020 and has extensive experience in finance and leadership [5] - The company specializes in the design and production of proprietary service equipment for transportation applications, particularly rail tank car valve equipment [3] Group 1 - The company is focused on ensuring a smooth transition in leadership without disrupting existing operations [1] - Frank Busch will engage with stakeholders and review the company's market outlook and strategic planning [1][2] - The Board of Directors expressed gratitude for Mr. Bond's years of service [2] Group 2 - Kelso Technologies is recognized for its high-quality products that enhance safety and reduce environmental risks during the transport of hazardous and non-hazardous commodities [3] - The company aims to provide economic and operational advantages to its customers [3]

Group 1 - Mr. James R. Bond, the CEO and President of Kelso Technologies Inc., has announced his retirement effective July 9, 2024, and Mr. Frank Busch has been appointed as the interim CEO [5] - Mr. Busch has been a director of the Company since February 11, 2020, and is also the Chair of the Audit and Finance Committee [1] - Mr. Busch plans to reach out to stakeholders in the coming weeks to review the company's market outlook and strategic planning [2] Group 2 - Kelso Technologies is a diverse product development company specializing in the design, engineering, production, and distribution of proprietary service equipment for transportation applications [3] - The Company is recognized for its high-quality rail tank car valve equipment, which ensures safe handling and containment of hazardous and non-hazardous commodities during transport [3] - Kelso's products are designed to provide economic and operational advantages while minimizing human error and environmental impact [3]

Core Points - The omnibus equity incentive plan and various stock options were not approved by shareholders, with significant opposition reflected in the voting results [1] - The number of directors to be elected was set at six, receiving strong support from shareholders [2] - A total of 26,741,861 common shares were voted, representing 49.12% of the outstanding shares [4] - James R. Bond, the President and CEO, received less than majority support and has tendered his resignation as a director [11] - The reappointment of Smythe, LLP as auditors was approved with a high level of support [5] Voting Results - The omnibus equity incentive plan received 24.54% For and 75.46% Against [1] - The unallocated stock options plan received 25.07% For and 74.93% Against [1] - The unallocated restricted share units plan received 25.07% For and 74.93% Against [1] - The unallocated deferred share units plan received 25.03% For and 74.97% Against [1] - The election of directors showed James R. Bond with 31.92% For and 68.08% Withheld, while other nominees received higher support [18] Company Overview - Kelso Technologies Inc. specializes in the design, engineering, production, and distribution of proprietary service equipment for transportation applications, particularly in rail tank car valve equipment [14]

Core Points - The Annual General and Special Meeting of Kelso Technologies Inc. was held on June 6, 2024, with 49.12% of the common shares voted [5] - The shareholders elected six directors, with James R. Bond receiving only 31.92% support, leading to his resignation tender [6][7][13] - The shareholders approved the reappointment of Smythe, LLP as auditors with 89.30% in favor [2] - Several equity incentive plans were not approved, including the omnibus equity incentive plan (24.54% for), unallocated stock options (25.07% for), and unallocated restricted share units (25.07% for) [8][15] Voting Results - A total of 26,741,861 common shares were voted out of 54,443,422 outstanding shares [1] - The number of directors was set to six, with 82.54% in favor [6] - The voting results for individual directors were as follows: - James R. Bond: 31.92% for, 68.08% withheld - Anthony Andrukaitis: 72.97% for, 27.03% withheld - Paul Cass: 82.89% for, 17.11% withheld - Laura Roach: 75.75% for, 24.25% withheld - Jesse V. Crews: 75.98% for, 24.02% withheld - Frank Busch: 75.98% for, 24.02% withheld [13][14] Company Overview - Kelso Technologies Inc. specializes in the design, engineering, production, and distribution of proprietary service equipment for transportation applications, particularly in rail tank car valve equipment [17]