Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 declined to $5.6 million from $7.0 million in the prior year due to lower APC segment revenue [22] - APC segment revenue decreased to $2.5 million from $3.9 million, primarily due to the timing of project execution [22] - Consolidated gross margin increased to 46% from 42% in the prior year, driven by segment contribution mix [22] - FUEL CHEM gross margin rose to 47% compared to 46% in the previous year despite flat segment revenues [22] - The net loss for the quarter was $689,000 or $0.02 per share, compared to a net loss of $421,000 or $0.01 per share in the prior year [26] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenue remained flat at $3.1 million for the quarter, with expectations to meet an annual objective of $15 million to $16 million [22][8] - APC segment margin rose to 44% in Q2 compared to 39% in the prior year, attributed to project and product mix [23] - The backlog for the APC segment increased to $7.8 million as of June 30, 2025, up from $6.2 million at the end of 2024 [23] Market Data and Key Metrics Changes - The company anticipates receiving an incremental $2.5 million to $3 million in new APC awards before the end of August 2025 [6][10] - The company is pursuing additional awards driven by industrial expansion globally and state-specific regulatory requirements in the U.S. [11] - The backlog includes $2.8 million of domestically delivered project backlog and $5 million of foreign delivered project backlog [23] Company Strategy and Development Direction - The company is optimistic about the application of its APC emissions control solutions in the construction of AI-related data centers in the U.S. [16] - The company aims to build a material contract backlog as it moves towards 2025 and into 2026 [21] - The company is focusing on expanding its DGI technology into various end markets, including wastewater treatment and aquaculture [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain a strong financial position and fund growth initiatives [26] - The company is cautious in its revenue guidance for 2025, reducing it to a range of $28 million to $29 million due to uncertainties in APC award timing [20] - Management noted that regulatory changes are not expected to provide significant headwinds or tailwinds for the business [40] Other Important Information - The company has no long-term debt and maintains a strong cash position of approximately $30.9 million [26][27] - Research and development expenses increased to $490,000, reflecting ongoing investment in DGI systems [24] Q&A Session Summary Question: Clarification on FUEL CHEM revenue expectations - Management confirmed that the expected FUEL CHEM revenue of $15 million to $16 million does not include contributions from new accounts [32] Question: Backlog recognition timing - Management indicated that the backlog of $7.8 million is expected to be recognized over the next twelve months, but it is project-specific [34] Question: DGI demonstration costs - The DGI demonstration is considered R&D expense, with no reimbursement expected from the customer [35] Question: Regulatory impacts on NOx control - Management stated that current opportunities for APC are driven by business expansion rather than regulatory changes [39] Question: Data center opportunities - Management highlighted a pipeline of approximately $100 million in bids related to AI data centers, indicating significant potential [46] Question: Global data center opportunities - Management expects to see data center build-out opportunities outside the U.S., although they are less developed [53] Question: Engagement with Mexican partners - Management confirmed ongoing engagement with partners in Mexico, noting increased pressure for emissions compliance [74]