Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $3.8 million, up from $2.5 million in Q3 2024, representing a year-over-year increase of 52% [15] - Gross margin improved to 19.6% from a negative margin of 8.5% in the year-ago period, indicating a significant recovery [18] - Operating expenses decreased to $2.1 million from $2.4 million in Q3 2024, reflecting cost management efforts [19] - Net loss for the quarter was $1.5 million, an improvement from a $2.8 million loss in the same period last year [19] - Cash at the end of the quarter stood at $7.3 million, consistent with normal operating procedures [20] Business Line Data and Key Metrics Changes - Water system sales and related services generated $2 million, up from $0.7 million in Q3 2024, driven by swimming pool orders and industrial orders [16] - DPF and ceramic membrane sales were $0.8 million, down from $1.1 million in Q3 2024, indicating a decline in this segment [16] - Plastics revenue increased to $1.0 million from $0.7 million in Q3 2024, showing a growth of 43% [16] Market Data and Key Metrics Changes - The swimming pool vertical achieved its highest quarterly revenue to date, with systems delivered to six customers totaling $1.0 million [8] - The water for energy market in the US is rapidly growing, with the company establishing a service center in Fort Worth, Texas to support this segment [12] - The marine industry is beginning to show order momentum, with two first orders for marine dual-fuel engine water treatment systems received [10] Company Strategy and Development Direction - The company is focusing on modular design systems to reduce costs and improve deployment efficiency across various applications [9][10] - There is a commitment to expanding filtration solutions to address global water shortages and stringent environmental regulations [22][23] - Partnerships with industry players are being leveraged to enhance capabilities and offer integrated filtration solutions [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth based on strong order books and revenue growth in Q3 2025 [5] - The company anticipates revenue for Q4 2025 to be between $4.6 million and $5.6 million, representing a 38%-67% increase from Q4 2024 [17] - There is a belief that gross margin improvements are sustainable and will continue to rise with increased revenue [26] Other Important Information - The company has deployed nine pilot systems across various industry applications since the beginning of last year, indicating a consistent delivery cadence [13] - The company is working to reduce component and assembly costs in its marine water treatment systems through joint ventures in China [10] Q&A Session Summary Question: Besides swimming pool systems, which segments are seeing the most sustained order momentum? - Management noted strong momentum in the water for energy segment and initial orders from the marine industry [25] Question: Is the uptick in gross margin sustainable? Where do you see gross margins trending over the next few quarters? - Management confirmed that the gross margin increase is sustainable and expected to rise further with higher revenues [26] Question: How is your capacity utilization trending? Are there any metrics you can provide there? - Management indicated that there is spare capacity available to support growth with limited investments [27] Question: What would be a reasonable target for 2026 revenue growth? - Management is currently budgeting for 2026 and sees a strong growth trend but could not provide a concrete number yet [28]