Revenue and Income - Advent's revenue primarily comes from the sale and servicing of fuel cell systems and Membrane Electrode Assemblies (MEAs), with expectations for significant future income from these markets[208]. - Total revenue from continuing operations increased by approximately $1.7 million or 113.3% from approximately $1.5 million in 2023 to approximately $3.3 million in 2024, driven by an increase in Joint Development Agreements[267]. - Revenues are expected to increase materially, with a focus on Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs)[254]. - Advent anticipates substantial increased demand for its fuel cell systems and MEAs, with existing customers expected to increase order volume[251]. Grants and Collaborations - The company secured a €34.5 million grant from the EU Innovation Fund for the RHyno Project, aimed at developing innovative fuel cells and electrolysers[215]. - Advent entered a joint development agreement with Hyundai to enhance the HMC-Advent Ion Pair™ MEA, focusing on heavy-duty and stationary applications[228]. - The company has engaged in a multi-million-dollar collaboration with Airbus to optimize the Ion Pair™ MEA for aviation fuel cells, expected to last two years[218]. - Advent's collaboration with the Department of Energy National Laboratories aims to advance HT-PEM fuel cells for heavy-duty transportation and stationary power systems[226]. - The company is collaborating with BASF to develop a closed-loop supply chain for fuel cells, focusing on improved performance and cost competitiveness[230]. Product Development - Advent launched the Honey Badger 50™ Fuel Cell System, capable of generating up to 50W of continuous power with 65% weight savings compared to traditional batteries[236]. - In September 2023, Advent secured a $2.2 million contract with the US DoD to optimize the HB50 system, focusing on integrating Ion Pair MEA technology[239]. - A new $2.8 million contract was secured in December 2023 to develop advanced manufacturing processes for the HB50 system, aiming to increase production capacity[240]. - As of December 31, 2024, Advent continues to collaborate with the US DoD to advance HB50 technology[241]. - The company is developing its next generation MEA technology, which is expected to deliver up to three times the power output of current products[252]. Financial Performance - Cost of revenues decreased by approximately $5.5 million from approximately $7.0 million in 2023 to approximately $1.5 million in 2024, primarily due to a shift from product sales to Joint Development Agreements[268]. - Research and development expenses decreased from approximately $7.6 million in 2023 to approximately $3.2 million in 2024, reflecting cost reductions[270]. - Administrative and selling expenses decreased from approximately $28.8 million in 2023 to approximately $14.3 million in 2024, primarily due to cost and staff reductions[271]. - Net cash provided by operating activities from continuing operations was approximately $1.2 million in 2024, a significant improvement from $(21.0) million in 2023[286][287]. - Cash flows from investing activities provided approximately $1.2 million in 2024, primarily related to the sale of equipment, compared to $(5.3) million in 2023[288][289]. Stock and Equity - A reverse stock split of 1-for-30 was executed on May 13, 2024, adjusting all historical share amounts accordingly[213]. - Advent's stockholders' equity was reported at ($2,879,000) as of June 30, 2024, leading to non-compliance with Nasdaq's listing requirements[245]. - The company is authorized to issue 501,000,000 shares of Common Stock, which did not change as a result of the Reverse Stock Split[294]. Impairments and Contingencies - The company received an arbitration award in favor of F.E.R. for approximately €4.5 million, which it is appealing[249]. - Impairment losses of $9.8 million were recognized in 2023, primarily related to goodwill and other intangible assets[274]. - The company recorded a goodwill impairment charge of $0.6 million for the UltraCell Reporting Unit during the year ended December 31, 2023[316]. - A goodwill impairment charge of $5.1 million was recorded for the SerEnergy and FES Reporting Unit during the year ended December 31, 2023[317]. - The company recognized an impairment charge of $3.3 million related to the Patented Technology during the second quarter of 2023[316]. - The company recognized a loss contingency of $4.7 million related to litigation during the year ended December 31, 2024[278]. Tax and Interest - Advent follows the asset and liability method of accounting for income taxes under ASC 740, recognizing deferred tax assets and liabilities for estimated future tax consequences[319]. - For the years ended December 31, 2024 and 2023, net income tax benefits of $0.1 million were recorded in the consolidated statements of operations for both years[323]. - The Company recognized $26 thousand of interest income related to the Bond Loan for the year ended December 31, 2023[327]. - The estimated fair value of the Bond Loan was fully reserved as an expected credit loss as of December 31, 2023, and continues to be reserved as of December 31, 2024[328]. Cash Flow and Debt - The company had a working capital deficit of $(26.1) million as of December 31, 2024, with current assets of $2.7 million and current liabilities of $28.8 million[282]. - Advent's cash flows from financing activities from continuing operations were approximately $0.9 million for the year ended December 31, 2024, compared to $9.1 million for the year ended December 31, 2023[290][291]. - The Company had an unrestricted cash balance of approximately $0.4 million as of December 31, 2024[339]. - Advent's short-term debt was $0.5 million, with limited exposure to interest rate risk in the future[339]. - The Company has not entered into any hedging transactions for foreign exchange risk due to relatively low exposure[341]. Losses and Adjusted Metrics - For the three months ended December 31, 2024, the net loss from continuing operations was $0.77 million, a decrease of $23.60 million compared to the same period in 2023[335]. - Adjusted EBITDA for the three months ended December 31, 2024 was $1.95 million, an increase of $26.44 million compared to the same period in 2023[335]. - Adjusted net loss from continuing operations for the year ended December 31, 2024 was $0.77 million, a decrease of $23.63 million compared to 2023[337]. Corporate Tax Changes - The U.S. corporate income tax rate was reduced from 35% to 21% as part of the Tax Cuts and Jobs Act of 2017[324].

Financial Performance - Net income for the first quarter was $0.7 million, down from $2.1 million in the same period last year, primarily due to a large disaster recovery order last year [1]. - Net sales for the first quarter were $33.754 million, down from $46.735 million in the same period last year [19]. - Operating loss for the first quarter was $94, compared to an operating income of $2.971 million in the prior year [19]. Margins and Costs - Gross margin improved to 47.5%, up 400 basis points from 43.5% in the prior year, attributed to lower margins on last year's disaster recovery order and a higher proportion of full-service orders [2]. Shareholder Returns - The company repurchased $4.0 million worth of shares and paid $0.4 million in cash dividends during the first quarter [7]. - A quarterly dividend of $0.025 per share was declared, payable on July 11, 2025 [3]. Market Outlook - Shipments plus backlog declined by 22.9% to $105.6 million compared to the previous year [3]. - The current year is expected to represent a "pause" in the recovery of the school furniture market post-COVID, but there are hopeful signs for mid-term growth in school construction [10]. - The company maintains an opportunistic stance to navigate challenges and opportunities in the upcoming year [9]. Investments - The company invested over $2.0 million in major platform processes to expand operations and support domestic market expansion [7].

Financial Performance - For the three months ended April 30, 2025, the Company reported a net income of $0.7 million on sales of $33.8 million, a decrease of approximately 27.8% in sales compared to $46.7 million in the same period last year [81]. - Gross margin for the first quarter of 2025 was 47.5%, an increase from 43.5% in the prior year, attributed to a higher proportion of full-service orders [82]. - Selling, general and administrative expenses decreased by approximately $1.3 million compared to the same period last year, primarily due to lower variable selling expenses [83]. - The effective income tax rate for the three months ended April 30, 2025, was 26.4%, compared to 25.5% in the prior year [86]. Backlog and Orders - The Company's backlog as of April 30, 2025, was $70.4 million, down from $88.5 million on April 30, 2024, reflecting a decrease in incoming orders [77]. Share Repurchase - The Company spent $4.0 million to repurchase 348,944 shares of its common stock, with $7.2 million authorized for future repurchases as of April 30, 2025 [91]. Accounts and Inventory - Accounts Receivable decreased by $7.5 million at April 30, 2025, due to decreased shipments and improved collections [88]. - Inventory increased by $2.7 million at April 30, 2025, primarily due to increased material costs during the quarter [88]. Compliance and Future Outlook - The Company believes it will maintain compliance with its financial covenants under the Credit Agreement, despite risks related to economic conditions and raw material costs [92]. - Management cautions that future growth rates are unlikely to match those of the past several years due to various uncertainties, including trade policies and funding for educational institutions [78].

Financial Performance - Net sales decreased by $14.0 million, or 12.0%, to $102.7 million in the first quarter of fiscal 2025 compared to $116.7 million in the same period of fiscal 2024[119]. - Gross profit decreased by $8.3 million, or 13.4%, to $53.4 million, with gross margin decreasing to 52.0% from 52.8% year-over-year[121]. - The net loss for the first quarter of fiscal 2025 was $15.3 million, compared to a net loss of $7.9 million in the prior year[111]. - Adjusted EBITDA decreased to ($3.8) million in the first quarter of fiscal 2025, down from $1.8 million in the same period of fiscal 2024[111]. - Net loss attributable to controlling interest was $15.3 million for the three months ended May 4, 2025, compared to a net loss of $7.9 million for the same period in 2024[125]. - Adjusted EBITDA decreased by $5.6 million to $(3.8) million in the three months ended May 4, 2025, compared to $1.8 million in the same period of 2024, representing a decrease to (3.7%) of net sales from 1.6%[127]. Sales Breakdown - Store market net sales decreased by $6.4 million, or 8.2%, to $71.6 million, while non-store market net sales decreased by $5.5 million, or 16.5%, to $28.0 million in the same period[120]. - The decrease in net sales was primarily driven by a decline in web traffic due to slower promotional activity[119]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by $4.9 million, or 6.9%, to $65.7 million, but as a percentage of net sales, it increased to 64.0% from 60.5%[122]. - Net cash used in operating activities was $56.5 million for the three months ended May 4, 2025, compared to $33.7 million for the same period in 2024[134]. - Cash used in operating assets and liabilities was $50.3 million for the three months ended May 4, 2025, primarily due to a $28.2 million decrease in accounts payable and a $9.6 million increase in inventory[134]. - Income tax expense was $1.3 million for the three months ended May 4, 2025, compared to an income tax benefit of $2.1 million for the same period in 2024[124]. - Net cash used in investing activities was $1.3 million for the three months ended May 4, 2025, compared to $1.5 million for the same period in 2024[136]. Capital Expenditures and Financing - The company expects to spend approximately $17.0 million on capital expenditures in fiscal 2025, primarily for logistics optimization and information technology[129]. - Net cash provided by financing activities was $63.0 million for the three months ended May 4, 2025, compared to $9.8 million for the same period in 2024[137]. - The company believes that cash flow from operating activities and available cash under the credit facility will be sufficient to cover working capital requirements and anticipated capital expenditures for the foreseeable future[130]. Operational Overview - The company operated 62 retail stores and three outlet stores as of May 4, 2025, reflecting ongoing expansion efforts[103]. - The macroeconomic environment is experiencing inflation and recessionary concerns, impacting store traffic and consumer demand[108]. - The company continues to focus on direct-to-factory sourcing initiatives to improve product costs despite challenges in gross margin[121].

Financial Performance - Hurco reported a net loss of $4,063,000, or $0.62 per diluted share, for Q2 FY 2025, compared to a net loss of $3,922,000, or $0.61 per diluted share, in Q2 FY 2024[1]. - Sales and service fees for Q2 FY 2025 were $40,867,000, a decrease of $4,305,000, or 10%, compared to the same period in FY 2024[2]. - Orders for Q2 FY 2025 were $43,700,000, a decrease of $492,000, or 1%, compared to Q2 FY 2024[7]. - Gross profit for Q2 FY 2025 was $7,829,000, or 19% of sales, compared to $8,019,000, or 18% of sales, in Q2 FY 2024[12]. - Selling, general, and administrative expenses for Q2 FY 2025 were $10,897,000, or 27% of sales, compared to $11,461,000, or 25% of sales, in Q2 FY 2024[13]. - The net loss for the three months ended April 30, 2025, was $4,063,000, compared to a net loss of $3,922,000 for the same period in 2024[19]. - Selling, general and administrative expenses as a percentage of sales increased to 27% for the three months ended April 30, 2025, from 25% in the same period of 2024[20]. - Gross profit for the six months ended April 30, 2025, was $16,119,000, down from $17,714,000 in 2024, reflecting a gross margin of 18% compared to 20% in the prior year[19][20]. Cash and Working Capital - Cash and cash equivalents totaled $43,807,000 at April 30, 2025, compared to $33,330,000 at October 31, 2024[15]. - Working capital was $175,914,000 at April 30, 2025, down from $180,788,000 at October 31, 2024[15]. - Total current assets decreased to $222,909,000 as of April 30, 2025, from $228,577,000 as of October 31, 2024[22]. - Shareholders' equity decreased to $202,280,000 as of April 30, 2025, from $207,172,000 as of October 31, 2024[22]. - The company reported a decrease in accounts receivable, net, to $25,583,000 as of April 30, 2025, from $36,678,000 as of October 31, 2024[22]. - Days sales outstanding increased to 51 days as of April 30, 2025, compared to 49 days as of October 31, 2024[20]. Sales Performance by Region - Sales in the Americas decreased by 9% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased shipments of Hurco and Takumi machines[4]. - European sales decreased by 5% in Q2 FY 2025 compared to Q2 FY 2024, driven by decreased shipments in Germany, France, and Italy[5]. - Asian Pacific sales decreased by 29% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased sales of higher-performance machines in India[6]. Tax and Capital Expenditures - The effective tax rate for the six months ended April 30, 2025, was (44)%, compared to 9% in the same period of 2024[20]. - Capital expenditures for the six months ended April 30, 2025, were $1,356,000, compared to $1,311,000 in 2024[20].

Cash Distribution - The cash distribution for April 2025 is declared at $0.503880 per unit, payable on April 29, 2025, to unit holders of record on April 15, 2025[2]. - This month's distribution is higher than the previous month due to an increase in oil and gas production and a rise in natural gas prices[4]. Production Volumes - Preliminary production volumes for January 2025 are approximately 102,540 barrels of oil and 1,410,501 Mcf of gas[3]. - The prior month's production was 45,827 barrels of oil and 1,044,259 Mcf of gas, with average prices of $69.44 per barrel for oil and $1.86 per Mcf for gas[5]. Revenue and Cash Receipts - Approximately $119,000 of revenue received in March will be posted in April, in addition to normal cash receipts[7]. Oil Prices - The realized oil price for the current month is $44.22 per barrel, significantly lower than the national average of $71.56 per barrel[4]. Regulatory Filings - The Trust's 2024 Annual Report on Form 10-K has been filed with the SEC, and the Reserve Summary is available on the Trust's website[8]. Forward-Looking Statements - Forward-looking statements indicate potential risks that could cause actual results to differ from anticipated results[10]. - The Trustee disclaims any obligation to update forward-looking statements, which should not be relied upon as representing views after the date of the release[11].

Financial Performance - Total revenue for the three months ended April 30, 2025, was $69.6 million, a decrease of 7.2% year-over-year compared to $75.0 million in the same period of 2024[128] - Gross Profit was $21.9 million, representing a gross margin of 31.5%, down from 37.9% in the previous year[128] - Net Loss for the quarter was $(26.1) million, with a net loss as a percentage of revenue of (37.5)%, compared to (29.3)% in the prior year[128] - Adjusted EBITDA was $(1.3) million for the three months ended April 30, 2025, down from $6.5 million in 2024, with Adjusted EBITDA margins of (1.9)% and 8.7% respectively[158] - Total revenue, net for the three months ended April 30, 2025, was $69.6 million, a decrease of $5.4 million, or 7.2%, compared to $75.0 million for the same period in 2024[173] - Subscription and Reserve rental revenue was $62.0 million for the three months ended April 30, 2025, a decrease of $4.1 million, or 6.2%, compared to $66.1 million for the same period in 2024[174] - Other revenue was $7.6 million for the three months ended April 30, 2025, a decrease of $1.3 million, or 14.6%, compared to $8.9 million for the same period in 2024[175] - Total costs and expenses were $89.3 million for the three months ended April 30, 2025, a decrease of $2.2 million, or 2.4%, compared to $91.5 million for the same period in 2024[176] - General and administrative expenses were $20.7 million for the three months ended April 30, 2025, a decrease of $2.1 million, or 9.2%, compared to $22.8 million for the same period in 2024[183] - Interest expense, net was $(6.3) million for the three months ended April 30, 2025, an increase of $0.7 million, or 12.5%, compared to $(5.6) million for the same period in 2024[191] Subscriber Metrics - Active Subscribers increased by 1% year-over-year, reaching 147,157 as of April 30, 2025, compared to 145,837 in 2024[128] - Active Subscribers increased to 147,157 as of April 30, 2025, up from 145,837 year-over-year, driven by improved retention and promotional activity[152] Customer Engagement - Customer engagement metrics improved, with Spring 2025 rental products showing a 23% higher share of views and 46% more hearts compared to Spring 2024[128] - The company plans to focus on increasing the quantity and desirability of rental product purchases to enhance customer satisfaction and retention in fiscal year 2025[136] Cash Flow and Liquidity - Cash and Cash Equivalents decreased to $70.4 million from $82.0 million year-over-year[128] - Cash flows from operations for the three months ended April 30, 2025 were $8.3 million, an increase from $4.6 million in the same period of 2024[203] - Total cash and cash equivalents, along with restricted cash, decreased to $79.4 million as of April 30, 2025, down from $86.5 million at the beginning of the period[203] - The cash consumption of the business was $(6.4) million for the three months ended April 30, 2025, compared to $(1.4) million for the same period in 2024, indicating higher operational costs[203] Operational Strategy - The company launched 36 new brands and over 1,000 new styles in the first quarter of fiscal year 2025, with a projected 134% increase in rental product receipts year-over-year[126] - The company expects to double the new rental product added to its site in fiscal year 2025 compared to fiscal year 2024[131] - The company is focused on investing in customer value and improving the customer experience to mitigate inflationary pressures and rising labor costs[147] - The company plans to continue leveraging technology and automation to drive efficiencies and improve margins as it scales its operations[140] - The company plans to significantly increase rental product availability, which may impact cash and cash equivalents in fiscal year 2025[197] Financial Challenges - Net loss for the three months ended April 30, 2025, was $26.1 million, compared to a net loss of $22.0 million for the same period in 2024[172] - The company's accumulated deficit reached $(1,149.1) million as of April 30, 2025, indicating ongoing financial challenges since inception[197] - The macroeconomic environment remains uncertain, impacting consumer discretionary spending, price sensitivity, and overall business operations[145] Cost Management - Transportation costs decreased as a percentage of revenue in fiscal year 2024, attributed to higher revenue per order and a new transportation contract, with expectations to further reduce these costs in fiscal year 2025[147] - Fulfillment expenses were $20.4 million for the three months ended April 30, 2025, representing 29.3% of revenue, compared to 27.5% for the same period in 2024[177] - The January 2024 restructuring plan is expected to generate total annual operating expense savings of approximately $12 million[189] Market and Risk Factors - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to adopt new accounting guidance within the same time periods as private companies[214] - There were no material changes to the company's quantitative and qualitative disclosures about market risk in the three months ended April 30, 2025, compared to the 2024 Annual Report[215] - The company experienced seasonality in subscriber acquisition, typically peaking in March through May and September through November, with disruptions noted during fiscal year 2022 and 2023 due to pricing changes and inventory levels[143] Asset Management - The company performed an impairment analysis of its long-lived assets as of April 30, 2025, and January 31, 2025, concluding that undiscounted cash flows exceeded carrying values, resulting in no impairment recognized for the respective periods[212]

Revenue Growth - Revenues increased by $93.5 million, or 4.6%, to $2,111.7 million for the three months ended April 30, 2025, driven by organic growth of 3.7% and acquisition growth of 0.8%[100] - Revenues increased by $138.8 million, or 3.4%, to $4,226.6 million for the six months ended April 30, 2025, compared to the prior year period, driven by organic growth of 2.6% and acquisition growth of 0.7%[125] - Business & Industry segment revenues rose by $25.9 million, or 2.6%, to $1,015.5 million, primarily due to client expansions domestically and internationally[112] - Technical Solutions segment revenues increased by $34.0 million, or 19.3%, to $210.2 million, with organic growth of 9.8% and acquisition growth of 9.5%[120] - Aviation segment revenues grew by $21.9 million, or 9.2%, to $260.1 million, attributed to new business and scope expansions with existing clients[116] - Technical Solutions segment revenues increased by $70.3 million, or 20.5%, to $412.4 million, driven by organic growth of 12.0% and acquisition growth of 8.5%[144] - Aviation segment revenues increased by $42.4 million, or 8.7%, to $530.2 million, attributed to new business and scope expansions with existing clients[140] Operating Profit and Margins - Operating profit rose by $1.0 million to $82.3 million during the same period, attributed to revenue increases and operational efficiencies[100] - Operating profit for the consolidated entity increased by $4.5 million, or 2.9%, to $159.9 million for the six months ended April 30, 2025[124] - Operating profit margin for the Business & Industry segment improved by 34 bps to 8.2%[113] - Operating profit margin for the Aviation segment increased by 85 bps to 6.3%[117] - Operating profit for the Technical Solutions segment increased by $6.5 million, or 27.6%, to $30.0 million, with an operating profit margin increase of 40 bps to 7.3%[145] Operating Expenses - Operating expenses increased by $77.5 million, or 4.4%, to $1,841.0 million, with a gross margin improvement of 19 basis points to 12.8%[103] - Corporate expenses rose by $3.2 million, or 4.0%, to $82.9 million, primarily due to increased costs associated with systems' go-live and acquisition integration[122] - Operating expenses increased by $106.3 million, or 3.0%, to $3,696.1 million for the six months ended April 30, 2025, compared to the prior year period[126] Cash Flow and Financing - Net cash used in operating activities was $73.9 million for the six months ended April 30, 2025, compared to net cash provided of $116.9 million in the prior year period[100] - Net cash provided by financing activities was $98.7 million for the six months ended April 30, 2025, compared to a cash outflow of $98.0 million in the prior year, driven by increased borrowings from the Amended Credit Facility[163] - The total outstanding borrowings under the Amended Credit Facility were $1.6 billion, with a weighted average interest rate of 6.07% as of April 30, 2025[154] - The Amended Credit Facility was amended to increase the revolving credit capacity from $1.3 billion to $1.6 billion and extend the maturity date to February 26, 2030[152] Strategic Initiatives - The ELEVATE strategy involves investments totaling $200 - $215 million aimed at enhancing client and team member experiences and leveraging technology[96] - The Quality Uptime Acquisition contributed an additional $16.6 million in revenue, completed in June 2024, supporting overall revenue growth[102] - The company anticipates long-term cash uses may include strategic acquisitions and plans to reinvest foreign earnings for non-U.S. growth[155][150] Other Financial Metrics - Interest expense increased by $3.3 million, or 16.1%, to $23.9 million, driven by higher borrowings from the Amended Credit Facility[106] - Effective tax rate on income from operations increased to 25.6% for the six months ended April 30, 2025, from 24.0% in the prior year[130] - Foreign currency translation gain increased to $6.7 million during the six months ended April 30, 2025, compared to a gain of $3.7 million in the prior year[133] - The company remains in compliance with the covenants of the Amended Credit Facility, which includes a maximum total net leverage ratio of 5.00 to 1.00[153] Shareholder Returns - Dividends of $32.9 million were paid to shareholders, with a declared dividend of $0.530 per common share during the six months ended April 30, 2025[100] - The company has $133.2 million remaining under its share repurchase program as of April 30, 2025, although no shares were repurchased during the three months ended April 30, 2025[158]

Financial Performance - Total revenues for the three months ended April 30, 2025, were $37.4 million, reflecting a 67% increase from $22.4 million in the same period of 2024[128]. - Total costs of revenues for the same period were $46.8 million, an increase of 59% from $29.5 million in the prior year[128]. - The gross loss for the three months ended April 30, 2025, was $9.4 million, compared to a gross loss of $7.1 million in the same period of 2024, representing a 33% increase in losses[128]. - Product revenues reached $13.0 million for the three months ended April 30, 2025, with no product revenues reported in the comparable prior year period[129]. - Product revenues increased by $13.3 million to $16.3 million for the three months ended April 30, 2025, compared to $2.9 million in the same period in the prior year[130]. - Service agreements revenues surged by 495% to $8.1 million for the three months ended April 30, 2025, up from $1.4 million in the same period in 2024, driven by three module exchanges[133]. - Generation revenues decreased by 14% to $12.1 million for the three months ended April 30, 2025, down from $14.1 million in the same period in 2024, due to lower output from plants[136]. - Advanced Technologies contract revenues fell by 41% to $4.1 million for the three months ended April 30, 2025, compared to $6.9 million in the same period in 2024[142]. - Total revenues for the six months ended April 30, 2025, were $56.4 million, an increase of $17.3 million (44%) from $39.1 million in the same period of 2024[161]. - Cost of revenues for the same period increased to $71.0 million, up $13.1 million (23%) from $57.9 million in 2024[161]. - Product revenues reached $13.1 million for the six months ended April 30, 2025, compared to no product revenue in the same period of 2024[162]. - Service agreements revenues increased to $10.0 million, a rise of $7.0 million (235%) from $3.0 million in 2024[166]. - Generation revenues decreased to $23.5 million, down $1.1 million (5%) from $24.6 million in 2024[169]. - Advanced Technologies contract revenues fell to $9.8 million, a decrease of $1.7 million (15%) from $11.5 million in 2024[173]. Expenses and Losses - Research and development expenses decreased to $9.9 million for the three months ended April 30, 2025, down from $16.6 million in the same period in 2024[146]. - Loss from operations improved to $35.8 million for the three months ended April 30, 2025, compared to a loss of $41.4 million in the same period in 2024[149]. - Net loss attributable to common stockholders was $38.8 million for the three months ended April 30, 2025, compared to $32.9 million in the same period in 2024[159]. - Interest expense increased to $2.5 million for the three months ended April 30, 2025, compared to $2.3 million in the same period in 2024[150]. - Administrative and selling expenses decreased to $16.5 million for the three months ended April 30, 2025, down from $17.7 million in the same period in 2024[145]. - Overall gross loss from service agreements revenues was $(0.9) million for the three months ended April 30, 2025, compared to a gross profit of $0.1 million in the same period in 2024[135]. - Loss from operations for the six months ended April 30, 2025, was $68.7 million, a decrease of $15.1 million (18%) from $83.8 million in 2024[181]. - Interest expense increased to $5.2 million for the six months ended April 30, 2025, compared to $4.6 million in 2024[182]. - Net loss attributable to common stockholders for the six months ended April 30, 2025, was $68.0 million, compared to $53.5 million for the same period in 2024, with net loss per common share decreasing to $3.22 from $3.55[190]. Restructuring and Workforce - The company implemented a global restructuring plan, including a workforce reduction of 122 employees, or approximately 22% of its workforce[123]. - The restructuring plan is expected to incur aggregate costs of approximately $3.5 million to $4.5 million related to severance payments and other employee termination benefits[124]. - The company is evaluating certain assets for impairment, including goodwill and in-process research and development intangible assets, with a net book value of $13.8 million[125]. - The company aims to align its production schedule with contracted demand, which may result in a decrease in annualized production rate if growth in the closed order book does not continue[123]. - The company continues to face macroeconomic and industry-specific headwinds, particularly in the zero-carbon hydrogen space, impacting its strategic plans[123]. Cash and Liquidity - As of April 30, 2025, unrestricted cash and cash equivalents totaled $116.1 million, down from $148.1 million as of October 31, 2024[194]. - Cash and cash equivalents totaled $179.1 million as of April 30, 2025, down from $208.9 million as of October 31, 2024[235]. - The company received a $4.0 million contribution from East West Bank during the six months ended April 30, 2025, recorded as noncontrolling interest[195]. - Net cash used in operating activities was $75.6 million for the six months ended April 30, 2025, an improvement from $95.4 million in the same period of 2024[236]. - The company has pledged approximately $63.1 million of cash and cash equivalents as collateral for performance security and letters of credit as of April 30, 2025[232]. Backlog and Contracts - The company's backlog increased by approximately 18.7% to $1.26 billion as of April 30, 2025, compared to $1.06 billion as of April 30, 2024[216]. - Generation backlog totaled $967.4 million as of April 30, 2025, compared to $852.9 million as of April 30, 2024[218]. - The company entered into a 20-year PPA with Eversource and United Illuminating for a 7.4 MW carbonate fuel cell power generation system, expected to generate approximately $167.4 million in revenue over the contract term[218]. - The LTSA with GGE has a total contract value of approximately $159.6 million, with $33.6 million allocated to service and $126.0 million to product sales[221]. - The Advanced Technologies contract backlog totals $29.6 million, with $22.0 million being non-U.S. Government-funded and $7.6 million being U.S. Government-funded[307]. Projects and Development - The generation operating portfolio totaled 62.8 MW as of April 30, 2025, with an additional project of 7.4 MW in development expected to generate future cash flows[207]. - The Groton Project reached its design rated output of 7.4 MW during the first quarter of fiscal year 2024[212]. - The company has ceased all work on the Trinity and UConn projects due to restructuring plans and a slowdown in clean energy technology adoption[214]. - The Hartford Project, a 7.4 MW project under development, is expected to require an additional investment of approximately $34.0 million to $36.0 million through calendar year 2026[227]. - The company recognized revenue for four modules shipped during the six months ended April 30, 2025, and expects to continue recognizing revenue from additional shipments[226]. Financing and Debt - Total significant commitments and contractual obligations amount to $266.06 million, with $91.82 million due within 1 year[246]. - Purchase commitments total $61.22 million, with $59.49 million due within 1 year[246]. - Term loans (principal and interest) total $141.12 million, with $18.77 million due within 1 year[246]. - Operating lease commitments total $16.90 million, with $1.32 million due within 1 year[246]. - Natural gas and biomethane gas supply contracts total $39.32 million, with $10.83 million due within 1 year[246]. - The company entered into a 7-year natural gas contract for the LIPA Yaphank Project with an estimated annual cost of $2.0 million[248]. - A project debt financing transaction with EXIM resulted in gross proceeds of approximately $10.1 million, with a fixed interest rate of 5.81%[251]. - The OpCo Financing Facility includes a term loan facility of up to $80.5 million and a letter of credit facility of up to $6.5 million[261]. - The company is required to maintain a minimum cash balance of $100.0 million under the EXIM credit agreement[252]. - The OpCo Financing Facility closed on May 19, 2023, with a total Term Loan amount of $80.5 million drawn down[266]. - Approximately $11.4 million of senior and subordinated indebtedness related to the Bridgeport Fuel Cell Project was extinguished[264]. - The total net proceeds from the financing transactions amounted to approximately $46.1 million after accounting for the release of restricted cash[267]. - The Term Loan has a seven-year term, maturing on May 19, 2030, with quarterly principal amortization obligations based on a 1.30x debt service coverage ratio[269]. - The Applicable Margin for SOFR Rate Loans is set at 2.5% for the first four years, increasing to 3% thereafter[268]. - OpCo Borrower is required to maintain a capital expenditures reserve balance of $29.0 million, with $14.5 million funded from the Term Loan[270]. - An Irrevocable Letter of Credit was issued for $6.5 million to satisfy the debt service reserve funding obligation[271]. - The interest rate swap agreements will result in a net interest rate of 6.366% for the first four years and 6.866% thereafter[274]. - OpCo Borrower must maintain a debt service coverage ratio of not less than 1.20:1.00, tested every six months[276]. - Groton Holdco Borrower secured a total of $20.0 million through the Groton Senior Back Leverage Loan Facility and the Groton Subordinated Back Leverage Loan Facility on August 18, 2023[283]. - The Groton Senior Back Leverage Loans have a seven-year term, maturing on August 18, 2030, with a principal amortization based on a ten-year period[286]. - The interest rate for the Groton Senior Back Leverage Loan from Liberty Lender is 6.75%, while Amalgamated Lender's rate is 6.07% or 7.32% depending on the occurrence of a "Carbon Offset Event"[285]. - The Groton Subordinated Back Leverage Loan accrues interest at 8% prior to the "Step Down Date," which is contingent on the repayment of the Groton Senior Back Leverage Loans[287]. - The company must maintain a "Senior" debt service coverage ratio of at least 1.20:1.00 and a "Total" debt service coverage ratio of at least 1.10:1.00[289]. - The outstanding finance obligation balance from sale-leaseback agreements was $18.8 million as of April 30, 2025, with $11.3 million representing imputed interest[293]. - The company received a $10.0 million disbursement from the State of Connecticut for the expansion of its Torrington manufacturing facility, with a fixed interest rate of 2.0%[294]. Compliance and Obligations - The Employment Obligation under the Assistance Agreement requires the company to maintain 538 full-time positions for 24 consecutive months to qualify for loan forgiveness[295]. - The Third Amendment to the Assistance Agreement extended the Target Date to October 31, 2024, requiring the retention of 538 full-time positions[296]. - The Company has an average of 389 employees over the applicable 24 consecutive month period, resulting in a calculated repayment obligation of $2.1 million due to not meeting the amended Employment Obligation[300]. - The Company is subject to an accelerated payment penalty of $14,225.00 for each full-time employment position below the amended Employment Obligation[298]. - The Company has not been formally assessed a penalty as of April 30, 2025, but any accelerated payment penalty will be applied to the outstanding principal balance of the loan[300]. - The Company has deferred three months of principal and interest payments under the Assistance Agreement due to the COVID-19 pandemic, extending the maturity date by three months[301]. - As of April 30, 2025, the Company has $2.9 million in restricted cash primarily to support obligations under power purchase and service agreements related to Crestmark sale-leaseback transactions[302]. - The Company has no off-balance sheet debt or similar obligations and does not guarantee any third-party debt[308]. - The Company is in discussions with the State of Connecticut regarding a potential amendment to the terms of the Third Amendment to the Assistance Agreement[300].

Revenue Performance - Revenue for the second quarter of fiscal 2025 was $37.4 million, an increase of approximately 67% compared to $22.4 million in the prior year[4] - Total revenues for the three months ended April 30, 2025, were $37.406 million, a significant increase from $22.420 million in the same period of 2024, representing a growth of 67%[36] - Total revenues for the six months ended April 30, 2025, increased to $56,403,000, compared to $39,111,000 for the same period in 2024, representing a growth of 44%[37] Product and Service Revenues - Product revenues for the second quarter were $13.0 million, compared to no product revenues in the prior year[9] - Product revenues reached $13.027 million, while service revenues increased to $8.144 million, compared to $1.369 million in the previous year[36] - Product revenues reached $13,099,000 in the first half of 2025, while service revenues increased to $9,992,000, compared to $2,986,000 in 2024[37] Gross Loss and Operating Expenses - The company reported a gross loss of $(9.4) million, which is an increase of approximately 33% from $(7.1) million in the same quarter last year[4] - The gross loss for the quarter was $9.438 million, compared to a gross loss of $7.074 million in the same quarter of 2024[36] - Total costs of revenues rose to $71,045,000 in the first half of 2025, up from $57,910,000 in 2024, leading to a gross loss of $14,642,000[37] - Operating expenses decreased to $26.4 million from $34.3 million, reflecting a reduction in administrative and selling expenses due to restructuring actions[12] - Operating expenses totaled $26.372 million, down from $34.287 million in the prior year, indicating a reduction of approximately 23%[36] - Operating expenses decreased to $54,019,000 in the first half of 2025 from $65,040,000 in 2024, primarily due to lower research and development expenses[37] Net Loss and Loss Per Share - Net loss per share improved to $(1.79), a decrease of approximately 18% from $(2.18) in the prior year[4] - The net loss attributable to common stockholders for the quarter was $38.849 million, compared to a net loss of $32.940 million in the same period last year[36] - The net loss attributable to common stockholders for the six months ended April 30, 2025, was $67,975,000, compared to $53,533,000 in 2024, reflecting an increase in losses[37] - Loss per share attributable to common stockholders improved to $(3.22) in the first half of 2025 from $(3.55) in 2024[37] Cash and Assets - Cash and cash equivalents totaled $240.0 million as of April 30, 2025, down from $318.0 million as of October 31, 2024[21] - Cash and cash equivalents decreased to $116.061 million as of April 30, 2025, down from $148.133 million as of October 31, 2024[34] - Total assets as of April 30, 2025, were $883.843 million, a decrease from $944.124 million as of October 31, 2024[34] Restructuring and Workforce Reduction - The company announced a restructuring plan aimed at reducing operating expenses by 30% on an annualized basis compared to fiscal year 2024[4] - The company has reduced its workforce by approximately 22% as part of its global restructuring plan[17] - The company reported a restructuring expense of $1,542,000 for the first half of 2025, which was not present in the same period of 2024[37] Adjusted EBITDA and Operational Efficiency - Adjusted EBITDA improved to $(19.3) million from $(26.5) million in the same quarter last year[15] - Adjusted EBITDA for the six months ended April 30, 2025, was $(40,383,000), compared to $(55,633,000) in 2024, indicating a reduction in operational losses[42] - The company plans to increase its annualized production rate at its Torrington manufacturing facility in the future, aiming for improved operational efficiency[28] Interest Expense and Depreciation - Interest expense increased to $5,155,000 in the first half of 2025 from $4,613,000 in 2024, indicating higher borrowing costs[37] - Depreciation and amortization for the six months ended April 30, 2025, totaled $20,836,000, compared to $18,151,000 in 2024, reflecting increased asset utilization[42] Focus on Sustainable Energy - FuelCell Energy is focused on advancing sustainable clean energy technologies to address critical challenges in energy access and environmental stewardship[31]