Financial Data and Key Metrics Changes - For Q3 2025, the company recognized approximately $1 million in revenues, a decrease from approximately $1.9 million in Q3 2024, primarily due to a large order shipped in the prior year [5][6] - The net loss increased by approximately $274,000 compared to the same period in 2024, driven by the decrease in sales volume [6][8] - Gross margin increased by approximately 6.1 percentage points year-over-year for Q3 2025, reinforcing the long-term strategy to target margins between 40% and 45% [7] Business Line Data and Key Metrics Changes - Q3 2025 revenue was generated from multiple spare parts orders, a midstream order, a flare order, and engineering services, indicating a diversification strategy adding incremental revenue [6] - The M-series burners are targeted at the gas industry and midstream gas, with significant growth potential due to ongoing upgrades and compliance needs [18][19] Market Data and Key Metrics Changes - There has been an uptick in order flow across major product lines, driven by regulatory pressures and increased customer inquiries, particularly in Texas and California [11][12] - The company is seeing increased interest in its products due to evolving regulations in key markets, particularly regarding NOx emissions [17][62] Company Strategy and Development Direction - The company aims to expand its market presence by leveraging its technology to meet regulatory requirements and customer needs, particularly in the process burner and flare markets [12][62] - The development of a burner capable of operating on 100% hydrogen is seen as a significant opportunity for future applications, despite current market conditions [91] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming quarter, highlighting the shipment of 26 burners and ongoing projects that are expected to contribute to revenue [73][75] - The company anticipates that the M-series and flare products will help fill revenue gaps while larger process burner orders are being developed [80][82] Other Important Information - The company has approximately $10.5 million in cash and cash equivalents as of September 30, 2025, positioning it well for future growth [8] - Spare parts sales are expected to become a significant and consistent revenue stream as more equipment is installed [95] Q&A Session Summary Question: What is the impact of different order types on revenue expectations for 2026? - Management noted that process burner orders are larger but take longer to execute, while M-series and flare orders turn more quickly, helping to balance revenue flow [78][80] Question: Are there new product opportunities under development? - Management indicated potential for new products, particularly leveraging the technology developed under the SBIR program, which is versatile for various applications [83] Question: Is there any risk from federal regulatory changes affecting sales? - Management does not foresee significant headwinds from federal regulations, particularly regarding NOx emissions, and believes global interest in hydrogen capabilities will continue [84][92] Question: What is the outlook for spare parts revenue? - Spare parts are expected to grow as more equipment is installed, providing a high-margin revenue stream for the company [95] Question: What factors are driving increased orders from Texas and the Gulf Coast? - Management highlighted acceptance in the industry and upcoming regulatory changes as key factors driving interest in these regions [96]