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