Revenue Performance - Revenues for Q2 2022 were $6,368 million, an increase of $1,150 million or 22% compared to Q2 2021[87]. - The APC technology segment generated revenues of $2,738 million for Q2 2022, a 178% increase from $986 million in Q2 2021[88]. - The FUEL CHEM technology segment reported revenues of $3,630 million for Q2 2022, a decrease of $602 million or 14% from Q2 2021[89]. Gross Margin and Expenses - Consolidated gross margin for Q2 2022 was 42%, down from 50% in Q2 2021, primarily due to decreased operating segment gross margins[90]. - Selling, general and administrative expenses (SG&A) for Q2 2022 were $2,874 million, a decrease of $83 million from $2,957 million in Q2 2021, with SG&A as a percentage of revenues decreasing to 45% from 57%[92]. - Research and development expenses for Q2 2022 were $289 million, down from $315 million in Q2 2021, focusing on new product development and technologies[94]. Tax and Cash Position - The consolidated effective tax rate is projected to be approximately 0% for 2022, significantly lower than the federal income tax rate of 21%[95]. - Cash and cash equivalents as of June 30, 2022, totaled $33,298 million, with working capital of $36,953 million and no outstanding debt[99]. Investment and Backlog - The company plans to invest $10,000 million in held-to-maturity debt securities of U.S. Treasuries and U.S. Government Agency securities[107]. - The consolidated APC backlog as of June 30, 2022, was $10,547 million, with a global sales pipeline estimated between $50 million and $75 million[86]. Financing and Liabilities - Fuel Tech raised gross proceeds of $25.812 million from a private placement of 5,000,000 shares of Common Stock and 2,500,000 warrants, with associated fees of $1.783 million[110]. - The Company received $1.556 million in loan proceeds from the Paycheck Protection Program, which was fully forgiven on January 8, 2021, resulting in a reduction of non-current liabilities and recognition of other income[111]. - There was no change in the warranty liability balance during the six months ended June 30, 2022[112]. Currency Fluctuations - Fuel Tech's earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, with no hedging contracts in place due to the immaterial nature of transactions[114].
Fuel Tech(FTEK) - 2022 Q2 - Quarterly Report