Financial Data and Key Metrics Changes - Revenue for the first quarter decreased by 12% compared to the first quarter of 2024, primarily due to the roll-off of a large contract and planned downtime with a major marine customer [12] - GAAP net loss was $1.6 million or $0.09 per diluted share, compared to net income of $1.5 million or $0.08 per diluted share in the first quarter of 2024 [13] - Adjusted EBITDA was $2.1 million, down from $3.1 million in the first quarter of last year, with an adjusted EBITDA margin of 11.9%, down from 15.7% [13] Business Line Data and Key Metrics Changes - Revenue in marine and aerospace markets grew by over 13% year over year, driven by increased activity with a major aerospace customer [6] - Approximately 51% of revenues were derived from marine and aerospace customers compared to 39% in the first quarter of last year [12] - Power generation revenues remained consistent with Q1 of 2024 [12] Market Data and Key Metrics Changes - The company is focused on expanding its position in high-growth sectors such as marine bunkering, aerospace, and power generation, supported by significant multiyear demand [5] - The company expects steady utilization and demand under existing contracts, with potential upside as new opportunities are converted into signed agreements [7] Company Strategy and Development Direction - The strategy remains focused on becoming the leading small-scale LNG supplier in high-growth sectors where access to traditional LNG supply infrastructure is limited [6] - The company is evaluating potential expansion of liquefaction capacity in South Texas and along the Gulf Coast as part of its long-term growth strategy [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenues does not reflect the underlying momentum in the business, and they continue to generate consistent positive operating cash flow [6] - The company remains focused on maintaining a strong balance sheet and liquidity position to fund future growth [9] Other Important Information - Cash generated from operations during the first quarter was $1 million, representing a conversion rate of 50% of adjusted EBITDA [14] - Capital expenditures were $0.5 million, with about 70% allocated to growth initiatives [14] Q&A Session Summary Question: Update on contracting side and liquefaction train - Management is actively working on commercial contracts and expects to provide clarity on timing in the second or third quarter of this year [21] Question: Customer inquiries in power generation - Management indicated they are seeing inquiries for various types of power needs, including data centers and emergency power, with projects ranging from six months to five years [24] Question: Details on bunkering operation downtime - The planned downtime was a one-week maintenance period for crew operators, which reduced bunkering events during the quarter [30] Question: Indicators of demand for small-scale LNG services - Management is focused on increased bidding and customer needs in aerospace, marine bunkering, and distributed power markets [33] Question: Space industry demand - The normalization of commercial aerospace activity and increased launches are seen as positive indicators for demand [35]

Part I. Financial Information This section covers the company's unaudited Q1 2025 financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Stabilis Solutions, Inc.'s unaudited Q1 2025 condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in millions) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Total current assets | $15.433 | $17.473 | | Property, plant and equipment, net | $50.289 | $51.728 | | Total assets | $83.060 | $85.584 | | Total current liabilities | $10.356 | $11.627 | | Total liabilities | $17.149 | $18.576 | | Total stockholders' equity | $65.911 | $67.008 | - **Total assets decreased from $85.584 million at December 31, 2024, to $83.060 million at March 31, 2025**. **Total current assets decreased by $2.04 million**, primarily due to decreases in accounts receivable, inventories, and prepaid expenses[13](index=13&type=chunk) - **Total liabilities decreased from $18.576 million at December 31, 2024, to $17.149 million at March 31, 2025**, driven by a reduction in accounts payable, accrued liabilities, and the current portion of long-term notes payable[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's Q1 2025 financial performance, including revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations (in millions) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenues | $17.338 | $19.770 | | Cost of revenues | $12.788 | $13.514 | | Selling, general and administrative expenses | $4.933 | $3.456 | | Net income (loss) | $(1.598) | $1.469 | | Basic and diluted per common share | $(0.09) | $0.08 | - The company reported a **net loss of $1.598 million** for the three months ended March 31, 2025, a **significant decline from a net income of $1.469 million** in the prior year quarter[16](index=16&type=chunk) - **Revenues decreased by 12.3%** from **$19.770 million** in Q1 2024 to **$17.338 million** in Q1 2025[16](index=16&type=chunk) - **Selling, general and administrative expenses increased by $1.477 million, or 42.7%**, primarily due to **$2.1 million in severance-related expenses** for the former CEO[16](index=16&type=chunk)[94](index=94&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section details the company's total comprehensive income or loss, including net income and other comprehensive items Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income (loss) | $(1.598) | $1.469 | | Foreign currency translation adjustment, net of tax | $0.071 | $(0.466) | | Total comprehensive income (loss) | $(1.527) | $1.003 | - **Total comprehensive loss for Q1 2025 was $1.527 million**, a **decrease from a comprehensive income of $1.003 million** in Q1 2024, primarily driven by the net loss[19](index=19&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Stockholders' Equity (in millions) | Metric | Balance at Dec 31, 2024 (in millions) | Balance at Mar 31, 2025 (in millions) | | :------------------------- | :----------------------------------- | :----------------------------------- | | Common Stock (Amount) | $0.019 | $0.019 | | Additional Paid-in Capital | $103.214 | $103.644 | | Accumulated Deficit | $(35.647) | $(37.245) | | Total Stockholders' Equity | $67.008 | $65.911 | - **Total stockholders' equity decreased from $67.008 million at December 31, 2024, to $65.911 million at March 31, 2025**, mainly due to the net loss incurred during the quarter[21](index=21&type=chunk) - **Additional paid-in capital increased by $430 thousand**, reflecting **stock-based compensation of $447 thousand**, partially offset by employee tax payments from stock-based withholdings[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash flows from operating, investing, and financing activities for Q1 2025 Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :----------------------- | :--------------------------------------- | :--------------------------------------- | | Operating activities | $1.025 | $3.929 | | Investing activities | $(0.276) | $(0.666) | | Financing activities | $(0.730) | $(0.355) | | Net increase in cash | $0.016 | $2.912 | | Cash and cash equivalents, end of period | $9.003 | $8.286 | - **Net cash provided by operating activities decreased significantly to $1.025 million in Q1 2025 from $3.929 million in Q1 2024**, primarily due to lower income from operations[24](index=24&type=chunk)[106](index=106&type=chunk) - **Net cash used in investing activities decreased to $0.276 million in Q1 2025 from $0.666 million in Q1 2024**, mainly due to reduced purchases of liquefaction assets[24](index=24&type=chunk)[107](index=107&type=chunk) - **Net cash used in financing activities increased to $0.730 million in Q1 2025 from $0.355 million in Q1 2024**, driven by additional debt payments on the AmeriState Loan[24](index=24&type=chunk)[108](index=108&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's energy transition business and the accounting principles used in financial reporting - **Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy solutions using liquefied natural gas (LNG) to diverse end markets** including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company also holds a **40% interest in BOMAY Electric Industries, Inc.**, a Chinese joint venture that builds power and control systems for the energy industry, accounted for under the equity method[27](index=27&type=chunk) - The Company operates as a single operating and reporting segment, with the CEO and CFO assessing performance on a consolidated basis[31](index=31&type=chunk) - The Company has not designated its natural gas derivative instruments as hedges under U.S. GAAP and does not enter into derivative transactions for speculative purposes[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2. Revenue Recognition](index=12&type=section&id=2.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from LNG product sales, rentals, and services - Revenues are recognized upon delivery of goods or services, measured as consideration specified in the contract, and disaggregated into LNG Product, rental, service, and other categories[37](index=37&type=chunk) Revenue Source (in millions) | Revenue Source | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------- | :--------------------------------------- | :--------------------------------------- | | LNG Product | $13.946 | $15.413 | | Rental | $1.550 | $2.173 | | Service | $1.705 | $1.924 | | Other | $0.137 | $0.260 | | Total revenues | $17.338 | $19.770 | Geographic Location (in millions) | Geographic Location | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :-------------------- | :--------------------------------------- | :--------------------------------------- | | United States | $16.523 | $18.507 | | Mexico | $0.815 | $1.263 | | Total revenues | $17.338 | $19.770 | - **LNG Product revenues decreased by $1.467 million (9.5%) year-over-year**, while **Rental revenues decreased by $623 thousand (28.7%)** and **Service revenues decreased by $219 thousand (11.4%)**[42](index=42&type=chunk)[43](index=43&type=chunk)[89](index=89&type=chunk) [Note 3. Prepaid Expenses and Other Current Assets](index=14&type=section&id=3.%20PREPAID%20EXPENSES%20AND%20OTHER%20CURRENT%20ASSETS) This note provides a breakdown of the company's prepaid expenses and other current assets, including insurance and derivatives Prepaid Expenses and Other Current Assets (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :---------------------------------- | :----------------------------- | :----------------------------- | | Prepaid insurance | $0.670 | $1.044 | | Prepaid supplier expenses | $0.170 | $0.167 | | Other receivables | $0.262 | $0.204 | | Natural gas derivatives at fair value, current | $0.141 | $0.207 | | Deposits | $0.099 | $0.129 | | Other | $0.168 | $0.151 | | Total prepaid expenses and other current assets | $1.510 | $1.902 | - **Total prepaid expenses and other current assets decreased from $1.902 million at December 31, 2024, to $1.510 million at March 31, 2025**, primarily due to a reduction in prepaid insurance[47](index=47&type=chunk) [Note 4. Property, Plant and Equipment](index=14&type=section&id=4.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note details the company's fixed assets, including liquefaction plants, vehicles, and construction in progress Property, Plant and Equipment (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Liquefaction plants and systems | $56.752 | $56.752 | | Vehicles and tanker trailers and equipment | $49.435 | $49.754 | | Construction in progress | $8.532 | $8.082 | | Total cost | $117.456 | $117.246 | | Less: accumulated depreciation | $(67.167) | $(65.518) | | Net property, plant and equipment | $50.289 | $51.728 | - **Net property, plant and equipment decreased from $51.728 million at December 31, 2024, to $50.289 million at March 31, 2025**, despite an increase in construction in progress[48](index=48&type=chunk) - **Depreciation expense increased slightly to $1.9 million for Q1 2025 from $1.8 million for Q1 2024**, mainly due to new mobile assets[48](index=48&type=chunk)[95](index=95&type=chunk) [Note 5. Investment in Foreign Joint Venture](index=15&type=section&id=5.%20INVESTMENT%20IN%20FOREIGN%20JOINT%20VENTURE) This note describes the company's equity method investment in BOMAY Electric Industries, Inc., a Chinese joint venture - The Company holds a **40% interest in BOMAY Electric Industries, Inc.**, which builds electrical systems in China, accounted for using the equity method[49](index=49&type=chunk)[50](index=50&type=chunk) BOMAY Financials (in millions) | BOMAY Financials | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :----------------- | :----------------------------- | :----------------------------- | | Total assets | $125.235 | $133.749 | | Total liabilities | $91.943 | $101.562 | | Total equity | $33.292 | $32.187 | BOMAY Operations (in millions) | BOMAY Operations | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :----------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $21.710 | $17.239 | | Net income | $0.961 | $0.537 | - **Net equity income from BOMAY increased by $0.2 million to $0.417 million in Q1 2025 from $0.247 million in Q1 2024**, driven by increased net profits from the joint venture[51](index=51&type=chunk)[97](index=97&type=chunk) [Note 6. Accrued Liabilities](index=17&type=section&id=6.%20ACCRUED%20LIABILITIES) This note outlines the company's accrued liabilities, including compensation, taxes, and other short-term obligations Accrued Liabilities (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------ | :----------------------------- | :----------------------------- | | Compensation and benefits | $2.605 | $2.408 | | Other taxes payable | $0.272 | $0.268 | | Other accrued liabilities | $0.422 | $0.890 | | Total accrued liabilities | $3.299 | $3.566 | - **Total accrued liabilities decreased from $3.566 million at December 31, 2024, to $3.299 million at March 31, 2025**, primarily due to a decrease in other accrued liabilities[53](index=53&type=chunk) - **The Company recorded $1.7 million in expenses related to the separation of former CEO Westervelt T. Ballard, Jr., including $1.6 million for separation, additional, and consulting pay, and $0.1 million for other related expenses**. As of March 31, 2025, **$1.5 million of this amount remains unpaid and is included in current liabilities**[54](index=54&type=chunk) [Note 7. Debt](index=17&type=section&id=7.%20DEBT) This note details the company's debt obligations, including secured term notes, revolving credit facilities, and covenant compliance Debt (in millions) | Debt Type | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Secured term note, net | $7.765 | $7.975 | | Insurance and other notes payable | $0.510 | $0.883 | | Total debt | $8.275 | $8.858 | | Less: amounts due within one year | $(1.655) | $(2.010) | | Total long-term debt | $6.620 | $6.848 | - **Total debt, net of debt issuance costs, decreased from $8.858 million at December 31, 2024, to $8.275 million at March 31, 2025**[56](index=56&type=chunk) - **The $10.0 million Revolving Credit Facility with Cadence Bank was extended to June 9, 2028**, and the Fixed Charge Coverage Ratio terms were amended. As of March 31, 2025, no amounts have been drawn, and **the Company has $2.5 million availability**[57](index=57&type=chunk)[58](index=58&type=chunk) - **The AmeriState Loan, a secured term loan facility, had $8.0 million outstanding at March 31, 2025, with $1.0 million remaining availability**. **The Company was in compliance with all debt covenants as of March 31, 2025**[60](index=60&type=chunk)[61](index=61&type=chunk) [Note 8. Related Party Transactions](index=19&type=section&id=8.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including lease agreements and purchases from entities with common ownership - The Company entered into a **lease agreement for office space with The Modern Group, beneficially owned by Executive Chairman J. Casey Crenshaw, at a market rate of $28 thousand per month, resulting in a $0.4 million right-of-use asset and operating lease liability**[63](index=63&type=chunk) - **Purchases and lease payments from subsidiaries of The Modern Group totaled $40 thousand for Q1 2025, a decrease from $0.1 million in Q1 2024**[64](index=64&type=chunk) - **The Company made purchases of $0.1 million from Chart Energy and Chemicals, Inc., which beneficially owns 7.9% of the Company's common stock**, for both Q1 2025 and Q1 2024[65](index=65&type=chunk) [Note 9. Commitments and Contingencies](index=20&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) This note describes the company's commitments and potential liabilities, including environmental regulations and legal proceedings - The Company is subject to federal, state, and local environmental laws and regulations and does not anticipate material expenditures for compliance[66](index=66&type=chunk) - **Management believes the ultimate resolution of any legal actions, claims, or audits will not have a material adverse effect on the Company's financial position, results of operations, or liquidity**[67](index=67&type=chunk) [Note 10. Stockholders' Equity and Stock-Based Compensation](index=20&type=section&id=10.%20STOCKHOLDERS'%20EQUITY%20AND%20STOCK-BASED%20COMPENSATION) This note provides information on changes in stockholders' equity and the company's stock-based compensation plans and expenses - **Stock compensation expense was $0.4 million for both Q1 2025 and Q1 2024**[68](index=68&type=chunk) - **The Company's Amended and Restated Long-Term Incentive Plan has a maximum of 5,500,000 shares available for issuance**, with **no new stock-based awards granted in Q1 2025**[69](index=69&type=chunk)[70](index=70&type=chunk) - Upon Mr. Ballard's separation, **7,765 unvested restricted stock units and 147,525 unvested stock options vested**, and **the exercise period for these and 1.6 million previously vested options was amended to expire December 31, 2025**. **This modification resulted in an additional $0.4 million in non-cash stock compensation expense**[72](index=72&type=chunk) [Note 11. Net Income Per Share](index=22&type=section&id=11.%20NET%20INCOME%20PER%20SHARE) This note details the calculation of basic and diluted net income or loss per common share for the reporting periods Net Income Per Share (in millions, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Basic weighted average number of common shares outstanding | 18,591,374 | 18,578,815 | | Dilutive securities | — | 1,996 | | Net income (loss) | $(1.598) | $1.469 | | Basic net income (loss) per common share | $(0.09) | $0.08 | | Diluted net income (loss) per common share | $(0.09) | $0.08 | - **Basic and diluted net loss per common share was $(0.09) for Q1 2025**, **compared to basic and diluted net income per common share of $0.08 for Q1 2024**[75](index=75&type=chunk) - **No dilutive securities were included in the Q1 2025 calculation due to the net loss and out-of-the-money stock options**[74](index=74&type=chunk) [Note 12. Supplemental Cash Flow Information](index=22&type=section&id=12.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) This note provides additional details on cash flow activities, including interest paid and non-cash investing and financing transactions Supplemental Cash Flow Information (in thousands) | Item | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Interest paid | $144 | $157 | | Income taxes paid | — | — | | ROU assets from leases | $425 | — | - **Interest paid decreased slightly to $144 thousand in Q1 2025 from $157 thousand in Q1 2024**. **No income taxes were paid in either period**[76](index=76&type=chunk) - **Significant non-cash investing and financing activities for Q1 2025 included $425 thousand in Right-of-Use (ROU) assets from leases**[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 financial condition, operations, liquidity, and capital resources [Overview](index=23&type=section&id=Overview) This section provides an overview of Stabilis Solutions, Inc.'s clean energy solutions and LNG operations - **Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy production, storage, transportation, and fueling solutions using LNG to diverse end markets across North America**[78](index=78&type=chunk) - **The Company generates revenue through LNG sales and delivery, cryogenic equipment rental, and engineering and field support services**, offering both separate and bundled solutions[79](index=79&type=chunk) - **Stabilis owns and operates two liquefiers in George West, Texas (100,000 LNG gallons/day) and Port Allen, Louisiana (30,000 LNG gallons/day)**, and supplements supply with third-party sources[80](index=80&type=chunk) - **The Company received DOE authorization in Q3 2022 to export LNG to FTA and non-FTA countries (up to 51.75 billion cubic feet per year)** and has initiated exports to Europe and Mexico under these authorizations[84](index=84&type=chunk)[86](index=86&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's Q1 2025 financial performance, detailing revenues, cost of revenues, and operating expenses Results of Operations (in millions) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | $ Change | % Change | | :--------------------------------------- | :--------------------- | :--------------------- | :------- | :------- | | Revenues | $17.338 | $19.770 | $(2.432) | (12.3)% | | Cost of revenues | $12.788 | $13.514 | $(0.726) | (5.4)% | | Selling, general and administrative expenses | $4.933 | $3.456 | $1.477 | 42.7% | | Income (loss) from operations | $(1.695) | $1.576 | $(3.271) | n/a | | Net income (loss) | $(1.598) | $1.469 | $(3.067) | n/a | - **Total revenues decreased by $2.4 million (12.3%) year-over-year**, primarily due to **decreased LNG gallons delivered ($2.1 million decrease)**, **lower rental, service, and other revenues ($1.0 million decrease)**, and **decreased take-or-pay contracts ($0.2 million decrease)**. These declines were **partially offset by a $1.0 million increase from higher natural gas prices passed to customers**[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - **Cost of revenues decreased by $0.7 million (5.4%)**, mainly due to **decreased gallons delivered ($1.4 million decrease)** and **lower rental/service costs ($0.5 million decrease)**, **partially offset by higher natural gas pricing and liquefaction costs ($1.2 million increase)**[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - **Selling, general and administrative expenses increased by $1.5 million (42.7%), largely driven by $2.1 million in severance-related expenses for the former CEO**, partially offset by lower compensation[89](index=89&type=chunk)[94](index=94&type=chunk) - **The Company shifted from an income from operations of $1.576 million in Q1 2024 to a loss from operations of $1.695 million in Q1 2025**[89](index=89&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's Q1 2025 liquidity sources, cash flows, debt obligations, and capital expenditures - **Principal sources of liquidity include cash from operations, cash on hand, and distributions from the BOMAY joint venture**. For Q1 2025, liquidity primarily came from operations and existing cash balances[101](index=101&type=chunk) - **As of March 31, 2025, the Company had $9.0 million in cash and cash equivalents, $9.1 million in outstanding debt and lease obligations ($2.3 million due in next 12 months), and $3.5 million total availability under its Revolving Credit Facility and AmeriState Secured Term Loan Facility**[103](index=103&type=chunk) - **Net cash provided by operating activities decreased by $2.9 million to $1.0 million in Q1 2025, primarily due to decreased profit from lower income from operations**[105](index=105&type=chunk)[106](index=106&type=chunk) - **Capital expenditures for Q1 2025 were $0.5 million, mainly for additional liquefaction assets, refurbishments, and upgrades**[110](index=110&type=chunk) - **The Company's $100.0 million Shelf Registration Statement and related ATM prospectus supplement expired unused on April 25, 2025**[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of the company's disclosure controls and procedures as of March 31, 2025 - **The Company's disclosure controls and procedures were deemed effective as of March 31, 2025, providing reasonable assurance that required information is accumulated, communicated, and reported timely**[115](index=115&type=chunk) - **There were no material changes in internal control over financial reporting during the quarter ended March 31, 2025**[116](index=116&type=chunk) Part II. Other Information This section includes disclosures on legal proceedings, risk factors, other information, and exhibits [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, but their resolution is not expected to materially affect financial position - **Management does not anticipate that the ultimate resolution of legal proceedings and claims will have a material effect on the Company's financial position or results of operations**[118](index=118&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2024 Form 10-K, except for a new risk factor concerning changes in U.S. trade policy and tariffs - **No material changes to risk factors from the 2024 Form 10-K, except for a new risk factor regarding changes in U.S. trade policy, including tariffs**[119](index=119&type=chunk) - **New risk factor: Escalating tariffs and potential trade restrictions could lead to economic uncertainty, reduced demand for LNG, or increased operating costs**, despite the majority of sales being domestic and current LNG trade with Mexico not being subject to tariffs[120](index=120&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - **No officers or directors engaged in Rule 10b5-1 or non-Rule 10b5-1 trading arrangement adoptions, modifications, or terminations during Q1 2025**[121](index=121&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and recent agreements - **Key exhibits include Amended and Restated Articles of Incorporation and Bylaws, various Registration Rights Agreements, and recent agreements such as the Release and Consulting Agreement (Exhibit 10.1) and the Loan Modification Agreement (Exhibit 10.2)**[123](index=123&type=chunk) Signatures This section contains the official signatures of the company's principal executive and financial officers, certifying the report - **The report was signed on May 7, 2025, by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director, and Andrew L. Puhala, Chief Financial Officer**[126](index=126&type=chunk)

First Quarter 2025 Highlights & Management Commentary This chapter provides an overview of the company's performance and strategic direction for Q1 2025, emphasizing management's perspective on market demand and capital allocation [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights strong demand in marine, aerospace, and power generation, with 13% revenue growth in aerospace and marine, while maintaining a strong balance sheet - Strong demand observed across the **marine bunkering**, **commercial aerospace**, and **power generation** sectors[3](index=3&type=chunk) - Revenue growth within aerospace and marine markets increased **13%** compared to the prior year[3](index=3&type=chunk) - Company maintained a strong balance sheet with **$12.5 million** of cash and availability under credit agreements as of March 31, 2025[3](index=3&type=chunk) [Strategic and Operational Update](index=1&type=section&id=Strategic%20and%20Operational%20Update) Stabilis Solutions is strengthening its competitive position in high-growth markets, with marine, power generation, and aerospace now comprising nearly 70% of total revenue [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) This section presents a summary of key financial metrics for the first quarter of 2025, including revenues, net loss, and Adjusted EBITDA Key Financial Highlights (in millions USD) | Metric | Q1 2025 | | :----- | :------ | | Revenues | $17.3 | | Net loss | ($1.6) | | Adjusted EBITDA | $2.1 | | Cash flow from operations | $1.0 | | Cash and availability (as of March 31, 2025) | $12.5 ($9.0 cash + $3.5 availability) | [Market Position and Growth Initiatives](index=1&type=section&id=Market%20Position%20and%20Growth%20Initiatives) The company is strategically enhancing its market position and investing in growth initiatives to capitalize on multi-year demand trends for LNG solutions - Revenue mix in high-growth marine, power generation, and aerospace end-markets increased from **56% to nearly 70%** of total revenue since Q1 last year[6](index=6&type=chunk) - Company is uniquely positioned as an incumbent small-scale LNG supplier of choice in these markets due to its turnkey solutions offering[6](index=6&type=chunk) - Advancing significant operating and capital investments to support future growth while delivering consistent operating cash flow[6](index=6&type=chunk) Financial Performance Summary This section provides a concise overview of the company's key financial results for the first quarter of 2025, including revenue, net income, and Adjusted EBITDA [Revenue](index=2&type=section&id=Revenue) Q1 2025 revenue decreased by 12.3% to $17.3 million year-over-year, primarily due to planned marine customer downtime and a completed industrial project, partially offset by aerospace growth Revenue (in millions USD) | Metric | Q1 2025 | Q1 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Revenue | $17.3 | $19.77 | -12.3% | - Decrease primarily due to expected downtime with a marine customer and completion of a large industrial customer contract[7](index=7&type=chunk) - Partly offset by higher revenues associated with aerospace customers[7](index=7&type=chunk) [Net Income (Loss)](index=2&type=section&id=Net%20Income%20(Loss)) Stabilis Solutions reported a net loss of ($1.6) million, or ($0.09) per diluted share, in Q1 2025, a decline from Q1 2024, driven by lower revenues and $2.1 million in non-recurring expenses Net Income (Loss) (in millions USD, except EPS) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Net Income (Loss) | ($1.6) | $1.5 | | Diluted EPS | ($0.09) | $0.08 | - Decrease reflects lower net revenues and **$2.1 million** in non-recurring selling, general, and administration expenses associated with executive transition[8](index=8&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $2.1 million (11.9% of revenue), down from $3.1 million (15.7%) in Q1 2024, primarily due to lower revenues and a completed customer contract Adjusted EBITDA (in millions USD) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Adjusted EBITDA | $2.1 | $3.1 | | Adjusted EBITDA Margin | 11.9% | 15.7% | - Decrease primarily attributable to lower revenues, including lower equipment and labor revenues on a completed customer contract[9](index=9&type=chunk) Consolidated Financial Statements This section presents the company's selected consolidated operating results, balance sheets, and cash flow statements for the reported periods [Selected Consolidated Operating Results](index=4&type=section&id=Selected%20Consolidated%20Operating%20Results) Q1 2025 selected consolidated operating results show a year-over-year decline in revenues and a shift to an operating loss, driven by increased SG&A expenses and lower overall revenues Selected Consolidated Operating Results (in thousands USD, except EPS) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Revenues | $17,338 | $17,298 | $19,770 | | Cost of revenues | $12,788 | $12,367 | $13,514 | | Selling, general and administrative expenses | $4,933 | $1,941 | $3,456 | | Income (loss) from operations | ($1,695) | $2,193 | $1,576 | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Basic and diluted per common share | ($0.09) | $0.11 | $0.08 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $83.06 million from $85.58 million, driven by lower current assets, with a corresponding reduction in total liabilities and stockholders' equity Condensed Consolidated Balance Sheets (in thousands USD) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total current assets | $15,433 | $17,473 | | Property, plant and equipment, net | $50,289 | $51,728 | | Total assets | $83,060 | $85,584 | | Total current liabilities | $10,356 | $11,627 | | Total liabilities | $17,149 | $18,576 | | Total stockholders' equity | $65,911 | $67,008 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow was $1.025 million, a decrease from Q1 2024, with net cash outflows from investing and financing activities, resulting in a $16 thousand net increase in cash Condensed Consolidated Statements of Cash Flows (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net cash provided by operating activities | $1,025 | $2,171 | $3,929 | | Net cash used in investing activities | ($276) | ($4,940) | ($666) | | Net cash used in financing activities | ($730) | ($625) | ($355) | | Net increase (decrease) in cash and cash equivalents | $16 | ($3,406) | $2,912 | | Cash and cash equivalents, end of period | $9,003 | $8,987 | $8,286 | Non-GAAP Measures This section provides reconciliations of non-GAAP financial measures, specifically EBITDA and Adjusted EBITDA, to their most directly comparable GAAP measures [Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20EBITDA%20and%20Adjusted%20EBITDA) Q1 2025 EBITDA was $0.16 million and Adjusted EBITDA was $2.069 million, with the latter including a $2.1 million add-back for executive severance expenses Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Depreciation | $1,867 | $1,802 | $1,800 | | EBITDA | $160 | $4,002 | $3,355 | | Special items | $1,909 | $11 | ($252) | | Adjusted EBITDA | $2,069 | $4,013 | $3,103 | - Special items for Q1 2025 include a **$2.1 million** add-back for Mr. Ballard's severance expenses and a subtraction of **$0.1 million** for a property damage settlement gain[23](index=23&type=chunk) Corporate Information This section provides details regarding the company's conference call, a brief overview of Stabilis Solutions, cautionary statements, and investor contact information [First Quarter 2025 Conference Call and Webcast](index=3&type=section&id=First%20Quarter%202025%20Conference%20Call%20and%20Webcast) Stabilis Solutions will host a conference call on May 8, 2025, at 9:00 am ET to discuss Q1 2025 financial results and recent events, with webcast access available - Conference call scheduled for **May 8, 2025, at 9:00 am ET** to review Q1 2025 financial results[10](index=10&type=chunk) - Webcast available in the Investor Relations section of the Company's corporate website[11](index=11&type=chunk) [About Stabilis Solutions](index=3&type=section&id=About%20Stabilis%20Solutions) Stabilis Solutions, Inc. is a leading provider of clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions[12](index=12&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) This section cautions that the press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations - Press release includes 'forward-looking statements' subject to risks and uncertainties, and actual results may differ from expectations[13](index=13&type=chunk) - Factors causing differences include future performance, demand/price of LNG, natural gas availability/price, unexpected costs, and general economic conditions[14](index=14&type=chunk) - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[15](index=15&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) Investor contact information is provided, including the Chief Financial Officer's name, phone number, and email address - Investor Contact: **Andrew Puhala**, Chief Financial Officer, **832-456-6502**, **ir@stabilis-solutions.com**[24](index=24&type=chunk)

Financial Data and Key Metrics Changes - Revenue during Q4 2024 decreased by 4% compared to Q4 2023, primarily due to lower oil and gas customer activity, partially offset by a 35% increase in aerospace revenues, a 23% increase in power generation revenues, and over 500% growth in marine bunkering revenues [18][19] - Q4 net income was $2.1 million or $0.11 per diluted share, compared to $1.4 million or $0.08 per diluted share in Q4 2023 [19] - Full year revenues were $73.3 million, an increase of 0.2% compared to 2023, with adjusted EBITDA rising to $11.8 million from $6.8 million in 2023 [20][21] Business Line Data and Key Metrics Changes - Approximately 49% of Q4 revenues were derived from aerospace and marine customers, compared to 14% in Q4 2023 [19] - The company generated over 8 million additional gallons delivered to customers in 2024, despite lower natural gas commodity prices impacting revenue [20] Market Data and Key Metrics Changes - The company focused on high-potential markets including marine, aerospace, and distributed power solutions, with significant capital expenditures directed towards growth investments in these areas [15][22] Company Strategy and Development Direction - The company is committed to operational efficiency and disciplined capital management while prioritizing growth in select markets [14][15] - Investments in infrastructure along the U.S. Gulf Coast are aimed at scaling to serve both new and existing customers [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capabilities and relationships to scale the business, despite acknowledging that growth may not be linear [14] - The company is working on multiple paths to deploy new liquefaction capacities and is focused on securing contracts in marine, aerospace, and distributed power markets [28][29] Other Important Information - The company had total cash and equivalents of $9 million and $4.3 million of availability under credit facilities as of December 31, 2024 [23] - Total debt outstanding was $9.3 million, resulting in a net debt to trailing twelve-month adjusted EBITDA of just 0.03 times [23] Q&A Session Summary Question: Timetable for the relocation of liquefaction train - Management confirmed the relocation of the liquefaction train to the Gulf Coast and is working on financing and customer contracts for deployment in marine and aerospace markets [26][28] Question: G&A line decrease in Q4 - Management noted that the decrease was due to adjustments in bonus accruals and lower professional services, with expectations for a similar run rate going forward [30][33] Question: Change in drilling gallons for 2024 - Management attributed the decrease to operational efficiency, timing of contracts, and a slower uptake in aerospace and oil and gas markets [35][37] Question: Costs and timing for the new train - Estimated costs to finish construction on the new train range from $20 million to $25 million, with a completion timeline of 9 to 12 months depending on location [48][50] Question: Marine bunkering business and customer base - Management highlighted the growth potential in the marine bunkering space, with various types of ships adopting LNG and the company working to be a primary supplier [51][55] Question: Data centers and distributed power - Management clarified that data centers fall under the distributed power category, which is a key growth area for the company, and they are actively working on projects in this space [62][66]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) [Fourth Quarter and Full Year 2024 Highlights](index=1&type=section&id=FOURTH%20QUARTER%20AND%20FULL%20YEAR%202024%20HIGHLIGHTS) Stabilis Solutions delivered strong Q4 and FY2024 results, marked by increased profitability, margin expansion, and cash generation Q4 2024 and Full Year 2024 Financial Highlights | Metric | Q4 2024 (Millions) | FY 2024 (Millions) | | :-------------------------- | :----------------- | :----------------- | | Net income | $2.1 | $4.6 | | Adjusted EBITDA | $4.0 | $11.8 | | Adjusted EBITDA margin | 23.2% | 16.1% | | Cash flow from operations | $2.2 | $13.7 | | Cash & availability (YE) | $13.3 | $13.3 | - Revenue mix in high-growth marine and aerospace end-markets increased from **14%** of total revenue to **nearly 50%** in Q4 2024[6](index=6&type=chunk) - During 2024, the Company invested **$7.4 million** in growth capital, representing **more than 80%** of its total capital investment for the year, focusing on expanding capabilities in Marine and Aerospace end-markets[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=MANAGEMENT%20COMMENTARY) Management noted strong 2024 performance with margin expansion, increased cash generation, and improved profitability from asset optimization - Stabilis achieved year-over-year margin expansion, increased cash generation, and improved profitability in 2024, prioritizing asset optimization and system efficiency[2](index=2&type=chunk) - Operating cash flow more than doubled in 2024, driven by improved utilization of the Texas LNG liquefaction facility and revenue growth in aerospace and marine markets[2](index=2&type=chunk) - At year-end, the company had **$13.3 million** in cash and availability under credit agreements, remaining well capitalized for 2025 and actively seeking strategic growth capital[2](index=2&type=chunk) [Strategic and Operational Update](index=1&type=section&id=STRATEGIC%20AND%20OPERATIONAL%20UPDATE) Stabilis strengthened its competitive position in marine and aerospace markets, increasing revenue mix and prioritizing growth-oriented capital - Stabilis' revenue mix in high-growth marine and aerospace end-markets increased from **14%** to **nearly 50%** in Q4 2024, positioning the company as a preferred small-scale LNG supplier[6](index=6&type=chunk) - Over **80%** of 2024 capital investments (**$7.4 million**) were growth-oriented, aimed at enhancing manufacturing and logistics capabilities for commercial expansion in marine and aerospace markets[6](index=6&type=chunk) [About Stabilis Solutions](index=2&type=section&id=ABOUT%20STABILIS%20SOLUTIONS) Stabilis Solutions is a leading provider of clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions[9](index=9&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) [Selected Consolidated Operating Results](index=3&type=section&id=Selected%20Consolidated%20Operating%20Results) Stabilis Solutions reported significant Q4 and FY2024 operating improvements, with full-year net income reaching **$4.6 million** and Adjusted EBITDA doubling Selected Consolidated Operating Results (Unaudited, in thousands, except per share data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------- | | Revenues | $17,298 | $18,049 | $73,293 | $73,114 | | Total operating expenses | $15,661 | $16,909 | $69,907 | $73,926 | | Income from operations | $2,193 | $1,517 | $4,950 | $879 | | Net income | $2,106 | $1,422 | $4,599 | $125 | | Basic and diluted per common share | $0.11 | $0.08 | $0.25 | $0.01 | | EBITDA | $4,002 | $3,340 | $12,118 | $8,581 | | Adjusted EBITDA | $4,013 | $2,900 | $11,808 | $6,817 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Stabilis Solutions reported increased total assets to **$85.6 million** and stockholders' equity to **$67.0 million** Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Asset/Liability/Equity | December 31, 2024 | December 31, 2023 | | :---------------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | $8,987 | $5,374 | | Total current assets | $17,473 | $14,972 | | Property, plant and equipment, net | $51,728 | $49,479 | | Total assets | $85,584 | $81,299 | | Total current liabilities | $11,627 | $11,719 | | Total liabilities | $18,576 | $19,487 | | Total stockholders' equity | $67,008 | $61,812 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For FY2024, net cash from operations more than doubled to **$13.7 million**, while investing and financing activities resulted in outflows Consolidated Statements of Cash Flows Highlights (Unaudited, in thousands) | Cash Flow Activity | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Net cash provided by operating activities | $2,171 | $1,332 | $13,693 | $6,712 | | Net cash provided by (used in) investing activities | $(4,940) | $72 | $(8,120) | $(8,910) | | Net cash used in financing activities | $(625) | $(941) | $(1,914) | $(3,884) | | Net increase (decrease) in cash and cash equivalents | $(3,406) | $460 | $3,613 | $(6,077) | | Cash and cash equivalents, end of period | $8,987 | $5,374 | $8,987 | $5,374 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Measures) Management uses EBITDA and Adjusted EBITDA as supplemental performance measures, with FY2024 Adjusted EBITDA increasing to **$11.8 million** - EBITDA is defined as Earnings from continuing operations before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is further adjusted for certain special items like unrealized gain/loss on natural gas derivatives and property insurance claims[19](index=19&type=chunk)[20](index=20&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (Unaudited, in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | | Net income | $2,106 | $1,422 | $4,599 | $125 | | Depreciation | $1,802 | $1,872 | $7,146 | $7,878 | | Interest expense, net | $(7) | $26 | $(112) | $334 | | Income tax expense | $101 | $20 | $485 | $244 | | **EBITDA** | **$4,002** | **$3,340** | **$12,118**| **$8,581** | | Special items* | $11 | $(440) | $(310) | $(1,764) | | **Adjusted EBITDA** | **$4,013** | **$2,900** | **$11,808**| **$6,817** | [Additional Information](index=1&type=section&id=Additional%20Information) [Conference Call and Webcast Details](index=1&type=section&id=FOURTH%20QUARTER%20AND%20FULL%20YEAR%202024%20CONFERENCE%20CALL%20AND%20WEBCAST) Stabilis Solutions will host a conference call on February 26, 2025, at 9:00 am ET to review financial results - A conference call to discuss Q4 and FY 2024 results will be held on February 26, 2025, at 9:00 am ET, with webcast available on the Company's investor relations website[4](index=4&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - Domestic Live: **800-267-6316**, International Live: **203-518-9783**, Conference ID: **SLNGQ424**. Replay available through March 5, 2025[9](index=9&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=2&type=section&id=CAUTIONARY%20STATEMENTS%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements, cautioning that actual results may differ due to various factors - The press release contains forward-looking statements, and actual results may differ from expectations due to factors such as future LNG demand, natural gas availability and price, unexpected costs, and general economic conditions[10](index=10&type=chunk)[11](index=11&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and Stabilis does not undertake any obligation to publicly update or revise them, except as required by law[12](index=12&type=chunk) [Investor Contact](index=6&type=section&id=Investor%20Contact) Andrew Puhala, Chief Financial Officer, serves as the investor contact for Stabilis Solutions - Investor Contact: Andrew Puhala, Chief Financial Officer, **832-456-6502**, ir@stabilis-solutions.com[21](index=21&type=chunk)

Revenue Performance - Total revenues for the year ended December 31, 2024, increased by $0.2 million, or 0.2%, compared to the prior year, totaling $73.293 million[187]. - LNG Product revenue decreased by $1.166 million, or 2.0%, to $57.351 million, despite an increase of 8.165 million gallons delivered[187]. - Rental revenue increased by $1.063 million, or 17.1%, to $7.273 million, and service revenue increased by $0.550 million, or 8.0%, to $7.436 million[187]. - Total revenues for 2024 increased to $73,293,000, a slight increase of 0.25% compared to $73,114,000 in 2023[267]. - The United States accounted for $69,007,000 of total revenues in 2024, an increase of 5.8% from $65,487,000 in 2023[319]. - Customer 1 contributed $24,599,000, representing 33.6% of total revenues in 2024, a significant increase from only 0.5% in 2023[323]. Operating Expenses and Income - Operating expenses decreased by $4.019 million, or 5.4%, totaling $69.907 million, with costs of revenues decreasing by $2.850 million, or 5.2%[187]. - Net income for the year was $4.599 million, a significant increase of 3579.2% compared to $125 thousand in the prior year[187]. - Operating expenses decreased to $69,907,000 in 2024, down 5.5% from $73,926,000 in 2023[267]. - Net income for 2024 was $4,599,000, a significant increase from $125,000 in 2023, representing a growth of 3,678%[268]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $13.7 million in 2024 from $6.7 million in 2023, a rise of approximately 104%[207]. - Cash used in investing activities decreased to $8.1 million in 2024 from $8.9 million in 2023, reflecting a reduction of about 9%[209]. - Total cash and cash equivalents at the end of 2024 were $8.9 million, up from $5.4 million at the beginning of the year, marking a net increase of $3.6 million[206]. - The company maintains a revolving credit facility with a maximum amount of $10 million, expiring in June 2026, to support liquidity needs[179]. - The company had $9.3 million in outstanding debt as of December 31, 2024, with $2.4 million due in 2025[204]. - The company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $4.3 million as of December 31, 2024[204]. Investments and Assets - The company acquired liquefaction assets for $6.0 million, including a 100,000 LNG gallon per day liquefaction train[180]. - Total assets increased to $85,584,000 in 2024, up 5.3% from $81,299,000 in 2023[265]. - Stockholders' equity improved to $67,008,000 in 2024, a rise of 8.5% from $61,812,000 in 2023[265]. - The company’s investment in foreign joint ventures was $11,659,000 in 2024, down from $12,009,000 in 2023, reflecting a decrease of 2.9%[265]. Revenue Recognition and Accounting Policies - LNG Product revenues are recognized upon delivery to the customer, with contracts typically lasting from 1 to 24 months[229]. - Rental revenues are generated from cryogenic equipment rentals, recognized upon completion of the rental period, based on day or monthly rates[230]. - Service revenues come from engineering and field support services, recognized as events are completed or work is done, independent of LNG delivery[231]. - The Company recognizes revenue from contracts with customers disaggregated into LNG Product, rental, service, and other categories[228]. - Revenue from the sale of LNG is recognized when the customer obtains control of the asset, primarily considering legal title transfer and physical delivery[297]. Debt and Interest Obligations - The company expects total interest payment obligations of approximately $0.5 million for the year ending December 31, 2025[215]. - Total interest expense decreased from $509,000 in 2023 to $300,000 in 2024, reflecting lower interest on secured term notes and related party loans[348]. Tax and Compliance - Income tax expense for the year ended December 31, 2024, totaled $485,000, compared to $244,000 for 2023, reflecting a significant increase[360]. - The company had no uncertain tax positions requiring recognition as of December 31, 2024, and 2023[300]. Other Financial Metrics - The company recorded bad debt expense of $0.1 million for the year ended December 31, 2024, compared to $0.0 million for 2023, indicating a slight increase in credit losses[287]. - The Company has a cumulative translation adjustment of $0.6 million recorded as Accumulated Other Comprehensive Income (Loss) due to foreign currency translation[249]. - The fair value of the Company's fixed and variable rate debt was estimated to approximate the carrying value of $8.6 million at December 31, 2024[306]. - The fair value of natural gas derivatives at the end of 2024 was $207,000, compared to none in 2023[324].

Group 1 - SLANG Worldwide Inc. has filed for bankruptcy under Canada's Bankruptcy and Insolvency Act [1][4] - The company's common shares, which are currently halted, will be delisted from the CSE at market close on December 2, 2024 [2][4] - Further information can be found in the issuer's news release [3][5]

Financial Data and Key Metrics Changes - Third quarter net income was $1 million or $0.05 per diluted share on revenues of $17.6 million, representing a 15.1% increase compared to the prior year period driven by strong LNG demand and improved utilization of liquefaction facilities [28][29] - Adjusted EBITDA reached a record $2.6 million, increasing by $2.1 million year-over-year, with an adjusted EBITDA margin of 14.6%, up from 3.5% in the same quarter last year [29] - The company ended the third quarter with $15.6 million in available cash and liquidity, compared to $8.6 million in the previous year [9][30] Business Line Data and Key Metrics Changes - The revenue mix shifted significantly, with 68% of third quarter revenue coming from long-term contractual agreements, up from 43% in the previous year [8] - Revenues from marine and aerospace growth markets increased threefold year-over-year, now comprising approximately 40% of total revenues compared to 11% in the third quarter of last year [13] Market Data and Key Metrics Changes - The company is experiencing strong structural tailwinds in the commercial and industrial markets, with an anticipated increase in US power consumption by at least 55 gigawatts by 2030, of which data centers are expected to consume around 40% [20][22] - The company is positioned to address the growing demand for cleaner fuel sources in various markets, including marine vessels and data centers [10][12] Company Strategy and Development Direction - The company aims to stabilize and optimize its existing business while pursuing key growth initiatives to drive long-term shareholder value, focusing on cleaner fuel alternatives [7][10] - The strategic focus includes expanding into marine bunkering, data centers, and aerospace markets, leveraging existing capabilities to capture market share [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in marine and aerospace markets, noting the early stages of demand increase and the company's competitive advantages in these sectors [12][62] - The company is actively evaluating opportunities to expand its infrastructure and capabilities to meet the growing demand for LNG in various applications [18][22] Other Important Information - The company has invested $3.6 million in capital expenditures year-to-date, with expectations for total CapEx to be between $8 million and $10 million for the full year [31][32] - The company is exploring various sources of capital to support its growth initiatives, emphasizing partnerships with those familiar with the industry [32] Q&A Session Summary Question: Milestones for Gulf Coast marine bunkering operation - Management highlighted the importance of commercial activity and financing in determining milestones, with a potential timeline of 18 to 24 months from the decision to proceed to operational rollout [34][40] Question: Data center opportunity and offtake agreements - Management noted a significant increase in discussions with data centers, indicating potential for long-term contracts to bridge gaps in power supply and the possibility of expanding liquefaction capacity [41][46] Question: Production capacity and annual capacity - Management did not disclose gallons sold for competitive reasons but indicated a utilization rate close to 90% at George West and about 25,000 gallons a day for Port Allen, with an annual capacity of approximately 45 million gallons from their own production [53][54] Question: Sweet spot for data center solutions - Management acknowledged that many data centers are not on natural gas pipelines, creating opportunities for LNG solutions, especially for backup and peaking power generation [55][58] Question: Aerospace market development - Management confirmed that the aerospace market is developing as expected, with opportunities for long-term contracts emerging, and they are positioned as a market leader in supplying LNG for rocket launches [61][62]

Revenue Performance - Total revenues for the three months ended September 30, 2024, increased by $2.3 million, or 15%, to $17.6 million compared to $15.3 million in the prior year quarter[91]. - LNG Product revenue rose by $2.1 million, or 17.6%, driven by an increase in gallons delivered and customer pricing mix[91]. - Total revenues for the nine months ended September 30, 2024, increased by $0.9 million, or 2%, to $55.995 million compared to $55.065 million in the prior year[104]. - LNG product revenues decreased by $300 thousand, or 0.7%, to $44.295 million, while rental and service revenues increased by 17.9% and 11.7%, respectively[103]. Operating Expenses - Operating expenses increased by $1.6 million, or 9.9%, with cost of revenues accounting for $12.6 million, representing 72% of total revenue[91][93]. - Operating expenses decreased by $2.771 million, or 4.9%, to $54.246 million, primarily due to a $3.209 million decrease in the cost of revenues[103]. - Selling, general, and administrative expenses increased by $33,000, primarily due to higher compensation costs[97]. Net Income - Net income for the current quarter was $997,000, compared to a net loss of $207,000 in the prior year quarter, marking a significant turnaround[91]. - Net income for the nine months ended September 30, 2024, was $2.493 million, compared to a net loss of $1.297 million in the prior year[103]. Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $11.522 million, an increase of $6.142 million compared to $5.380 million in the prior year[118]. - Capital expenditures for the nine months ended September 30, 2024, were $3.6 million, primarily for liquefaction assets and upgrades[122]. - Future capital expenditures will depend on business needs and availability of capital, with approximately $6 million in open purchase orders related to capital expenditures[122]. Financial Position - The company has $12.4 million in cash and cash equivalents and $9.8 million in outstanding debt as of September 30, 2024[116]. - The company has a three-year Revolving Credit Facility with a maximum amount of $10 million, with no amounts drawn as of September 30, 2024[115]. - The company filed a Shelf Registration Statement allowing it to issue up to $100 million in securities to raise capital for various needs[123]. - As of September 30, 2024, there were no off-balance sheet arrangements that could materially affect the company's financial position or results[125]. Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by $232,000, or 81.7%, reflecting improved profitability in joint ventures[91][99]. - Interest income increased by 35% to $81,000, reflecting stable cash balances during the periods[91][99]. - The company recorded a loss of $13,000 from changes in unrealized gains/losses on natural gas derivatives, compared to a gain of $267,000 in the prior year quarter[96]. Regulatory Approvals and Operations - The company received DOE approval to export LNG to all free trade and non-free trade countries for up to 51.75 billion cubic feet per year, valid for 28 years[87]. - The company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[83]. Accounting Policies - The financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported assets, liabilities, revenues, and expenses[126]. - There have been no significant changes in the company's critical accounting policies and estimates during the three and nine months ended September 30, 2024, compared to the previous annual report[126].

Financial Performance - Net income improved by $1.2 million year-over-year, reaching $997,000[2] - EBITDA for the three months ended September 30, 2024, was $2,569,000, up from $1,808,000 in the same period last year, indicating a year-over-year increase of 42%[21] - Adjusted EBITDA for the nine months ended September 30, 2024, reached $7,795,000, compared to $3,917,000 for the same period in 2023, reflecting a growth of 99%[21] - Net income for the three months ended September 30, 2024, was $997,000, compared to a loss of $207,000 for the same period in 2023, representing a significant improvement[19] Revenue and Sales - LNG sales volumes increased by 22% year-over-year[2] - 68% of third quarter revenues were derived from contracted customer agreements, up from 43% in Q3 2023[4] - Revenue mix in high-growth marine and aerospace markets increased from 11% to 40% year-over-year[5] Cash Flow and Assets - Cash flow from operations increased by 73% year-over-year, totaling $2.6 million[2] - Cash provided by operating activities for the three months ended September 30, 2024, was $2,555,000, compared to $1,478,000 in the same period last year, marking a 73% increase[19] - The company reported a net cash increase of $910,000 for the three months ended September 30, 2024, compared to a decrease of $3,207,000 in the same period of 2023[19] - Total assets increased to $89.35 million as of September 30, 2024, up from $81.30 million at the end of 2023[16] - The company’s cash and cash equivalents at the end of the period were $12,393,000, up from $4,914,000 at the end of September 30, 2023[19] Equity and Expenses - Stockholders' equity rose to $65.36 million, compared to $61.81 million at the end of 2023[18] - Depreciation expense for the three months ended September 30, 2024, was $1,776,000, slightly lower than $2,003,000 in the same period last year[21] Investments and Financing - Cash used in investing activities for the three months ended September 30, 2024, was $1,210,000, a decrease from $3,771,000 in the same period of 2023[19] - The company reported a net cash used in financing activities of $405,000 for the three months ended September 30, 2024, compared to $904,000 in the same period last year[19] Operational Developments - The company is expanding Texas Gulf Coast marine bunkering operations with a new LNG train capable of producing 100,000 gallons per day[6] - Identified substantial opportunities for LNG deployment in emergency power generation and aerospace applications[7] Gains and Losses - The company experienced a gain from the disposal of assets amounting to $102,000 for the three months ended September 30, 2024, compared to a loss of $1,002,000 in the same period last year[19]