Financial Performance - For the three months ended March 31, 2024, the company reported revenues of $2,652,604, an increase from $2,459,958 in the same period of 2023, representing an 8% growth [3] - Gross profit for the same period was $1,109,826, slightly up from $1,086,568, with a gross profit margin of 42%, down from 44% [3] - The company recorded a net loss of $698,759, an improvement from a loss of $786,677 in the prior year [3] - Adjusted EBITDA loss improved to $(158,616) from $(531,618) year-over-year [3] Liquidity and Capital Resources - As of March 31, 2024, the company had cash on deposit of $1,066,089, down from $1,433,838 at the end of 2023 [6] - Accounts receivable decreased to $939,641 from $1,065,411, while inventory increased to $3,824,083 from $3,376,005 [6] - The working capital position was $4,023,140, down from $5,026,580 at the end of 2023 [7] - Total assets increased to $10,207,748 from $9,703,271, while net assets decreased to $8,021,489 from $8,720,248 [8] Industry Outlook - The rail tank car industry is expected to experience slow growth, with deliveries aligning with replacement demand levels [11] - Tank car deliveries are forecasted to range from 7,000 to 10,000 units in 2024, continuing at this level through 2025 [13] - The company aims to secure full AAR approvals for its rail pressure car products in 2024, which is crucial for revenue growth [9][15] - The company is positioned to service the rail tank car market, which consists of approximately 86,000 tank cars, presenting a significant financial growth opportunity [15] Automotive Innovations - The company is developing an Advanced Driver-Assistance System (ADAS) designed for commercial wilderness travel, with a focus on safety and operational efficiency [16][19] - A pilot production facility has been established to convert heavy-duty vehicles using proprietary technologies, expected to generate approximately $25 million in annual revenue starting in early 2025 [21][24] - The company aims to lead in the ADAS market for no-road environments, targeting a global market projected to reach $80 billion by 2030 [20]
Kelso Technologies Inc. Financial Results for the Three Months Ended March 31, 2024