Core Insights - Kelso Technologies Inc. reported its first profitable fiscal year since 2020, achieving a net income of $447,397 for FY2025, or $0.01 per basic/diluted share, with a 1% increase in revenue to $10.78 million compared to FY2024 [5][11][14] Financial Performance Summary - Revenues for FY2025 were $10,784,090, a slight increase from $10,680,468 in FY2024 [4] - Gross profit was $4,432,744, down from $4,693,632 in FY2024, resulting in a gross profit margin of 41%, which is above industry averages [4][5] - Total expenses decreased by 27% to $3,989,053 in FY2025 from $5,315,929 in FY2024, reflecting effective cost management [5][12] - The company reported an adjusted EBITDA of $347,723 for FY2025, a significant improvement from a loss of $1,249,326 in FY2024 [4][5] Liquidity and Capital Resources - As of December 31, 2025, the company had cash of $399,375 and accounts receivable of $632,568, compared to $153,147 and $1,091,304 respectively at the end of FY2024 [7][8] - Working capital improved to $2,541,625 in FY2025 from $2,125,386 in FY2024 [8] - The company increased its line of credit from $500,000 to $1,000,000, enhancing financial flexibility [9][12] Strategic Focus and Outlook - Management is prioritizing revenue diversification and cost reduction in response to projected declines in tank car deliveries by over 20% [11][12] - The company aims to maintain operational efficiency and is focused on launching the new Angle Valve while preparing for increased tank car builds starting in 2027/2028 [13][14] - Kelso is exploring opportunities for vertical integration and strategic partnerships to enhance shareholder value [12][14] Management Changes and Recognition - Amanda Smith was appointed as COO effective July 1, 2025, succeeding Tony Andrukaitis as part of a cost reduction strategy [5] - Amanda Smith was recognized as a "Woman of Influence in Rail" by Progressive Railroading for her leadership and contributions to the industry [5]