Financial Data and Key Metrics Changes - Consolidated revenues for 2024 were $25.1 million, at the lower end of the guidance range of $25 million to $26 million, reflecting a 17% decrease in total APC segment revenue, partially offset by a 2% increase in FUEL CHEM revenue [7][32] - Consolidated gross margin for 2024 marginally decreased to 42% from 43% in the previous year, with a decline in both APC and FUEL CHEM gross margins [33] - Net loss for 2024 was $1.9 million or $0.06 per diluted share, compared to a net loss of $1.5 million or $0.05 per diluted share in 2023 [35] Business Segment Data and Key Metrics Changes - FUEL CHEM segment revenue was essentially unchanged at $3.5 million for Q4 2024, while APC segment revenue declined to $1.8 million from $2.8 million in the prior year [27] - APC gross margin declined to 36% from 55%, primarily due to product mix and lower segment revenue, while FUEL CHEM gross margin declined to 45% from 48% [28] - Consolidated APC segment backlog at December 31, 2024, was $6.2 million compared to $7.5 million at the end of 2023, with expectations for backlog improvement through the first half of 2025 [29] Market Data and Key Metrics Changes - The company is pursuing additional FUEL CHEM accounts, with a demonstration scheduled for late Q3 2025, and is in discussions to expand its chemical technology in Mexico [11][12] - The global data center power market is expected to expand significantly, with investments in emissions control solutions to address surging electricity demand [15][86] - The company is following opportunities in the municipal solid waste market driven by state-specific regulatory requirements [14] Company Strategy and Development Direction - The company aims to exceed $30 million in total revenues for 2025, with expectations that both business segments will outperform their 2024 performance [24] - The company is focusing on the commercialization of its DGI technology, with ongoing demonstrations and discussions in various end markets [22][23] - The company is exploring small acquisitions or licensing opportunities to enhance its market position [114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a strong portfolio of APC business opportunities and a return to normalized operations in FUEL CHEM [9][14] - The company does not expect significant contributions from new EPA regulations but is monitoring the regulatory landscape for potential impacts [16][20] - Management indicated that achieving breakeven on operating income would likely require revenues closer to $33 million to $35 million [112] Other Important Information - The company ended 2024 with cash, cash equivalents, and investments totaling approximately $30 million and no long-term debt [8][36] - SG&A expenses increased to $13.8 million for 2024, reflecting higher employee-related costs [33] Q&A Session Summary Question: Is the $30 million revenue outlook for 2025 based on confidence in securing additional FUEL CHEM customers and APC orders? - Management confirmed that the APC orders are included in the outlook, but contributions from new FUEL CHEM accounts are not expected to be significant in 2025 [44] Question: What is the expected gross margin trend for 2025? - Management anticipates a return to historical gross margins of 49% to 50% for FUEL CHEM, while APC margins are expected to remain in the 35% to 38% range [54][56] Question: Are there any impacts from tariffs on the supply chain? - Management acknowledged potential impacts from steel and aluminum tariffs, which could affect costs but would be passed on to end customers [66] Question: What is the timeline for data center-related orders? - Management indicated that delivery schedules for data center orders would typically be around 40 weeks from order to delivery [104] Question: Is the company considering M&A or stock buybacks? - Management is exploring small acquisitions and licensing opportunities but believes current business momentum will drive shareholder value without the need for buybacks [114][116]