Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 declined slightly to $7.5 million from $7.9 million in the prior year period due to lower APC segment revenues, partially offset by higher Fuel Chem segment revenue [27] - Consolidated gross margin rose to 49% of revenues from 43% in the prior year, driven by increases in both Fuel Chem and APC segment gross margins [27] - Net income for Q3 2025 was $303,000 or $0.01 per share, compared to a net income of $80,000 or $0.00 per share in the prior year period [29] Business Line Data and Key Metrics Changes - Fuel Chem segment revenue improved to $4.8 million from $4.6 million, while APC segment revenue declined to $2.7 million from $3.2 million due to timing of project execution [27] - Fuel Chem's full year 2025 segment revenue is now expected to approximate $16.5 million-$17 million, up from prior guidance of $15 million-$16 million [15] - APC segment backlog increased to $9.5 million at the end of Q3 2025, up from $6.2 million at the end of 2024 [28] Market Data and Key Metrics Changes - The company is pursuing $3 million-$5 million of potential additional APC contracts expected to close before the end of the year or early Q1 2026 [15] - The sales pipeline for data center opportunities is valued at approximately $80 million-$100 million, with eight to ten opportunities currently being pursued [22][42] Company Strategy and Development Direction - The company is focusing on expanding its APC portfolio through strategic acquisitions and enhancing its technology base to address global customer needs [16][18] - There is a strong emphasis on the digital economy, including AI and data centers, which is driving new power generation demand and creating opportunities for emissions control solutions [20][21] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a strong financial position and funding growth initiatives across its business segments [32] - The company anticipates continued demand for its technology solutions, particularly in the context of the electrification of everything and industrial transitions [20][21] Other Important Information - The company has no long-term debt and total cash and investments were reported at $33.8 million as of September 30, 2025 [30] - The acquisition of complementary APC intellectual property was completed for $350,000, which is expected to enhance the company's competitive position [16] Q&A Session Summary Question: Will additional investments be needed to monetize the recent acquisition? - Management does not expect significant incremental investment to capitalize on the acquired IP, with some small contributions anticipated relatively quickly from aftermarket opportunities [37] Question: How is the company approaching data center opportunities? - The company is typically brought into data center projects through engine or turbine OEMs and is also engaging with non-traditional players looking to repurpose aircraft engines for power generation [40][41] Question: What is the current pipeline size for data center opportunities? - The current pipeline consists of eight to ten opportunities valued at $80 million-$100 million, with expectations for some commercial opportunities to finalize by the end of the year or early 2026 [42][43] Question: What are the expectations for cash flow in Q4? - Management anticipates cash balance to be flat to slightly down by the end of the year, with Q3 typically being the best performing quarter [54] Question: Did the previous global sales pipeline include data center opportunities? - The previous pipeline number did not include data center opportunities, which are now valued at $80 million-$100 million, in addition to $10 million-$20 million in standard APC business [58][59]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 declined slightly to $7.5 million from $7.9 million in the prior year period due to lower APC segment revenues, partially offset by higher Fuel Chem segment revenue [28] - Consolidated gross margin for Q3 rose to 49% from 43% in the prior year, driven by increases in both Fuel Chem and APC segment gross margins [28] - Net income for Q3 was $303,000 or $0.01 per share, compared to $80,000 or $0.00 per share in the prior year [30] Business Line Data and Key Metrics Changes - Fuel Chem segment revenue improved to $4.8 million from $4.6 million, while APC segment revenue declined to $2.7 million from $3.2 million due to timing of project execution [28][15] - Fuel Chem's full year 2025 segment revenue is now expected to approximate $16.5 million-$17 million, up from prior guidance of $15 million-$16 million [15] - APC segment backlog increased to $9.5 million at the end of Q3, up from $6.2 million at the end of 2024 [29] Market Data and Key Metrics Changes - The company is pursuing $3 million-$5 million of potential additional APC contracts expected to close by the end of the year or early Q1 2026 [15] - The sales pipeline for data center projects integrating SCR technology is valued at approximately $80 million-$100 million [22] Company Strategy and Development Direction - The company is advancing its dissolved gas infusion technology and has commenced a six-month demonstration program for a new FuelCam customer [13][14] - A small strategic acquisition of complementary APC intellectual property was made for $350,000, aimed at enhancing the company's technology base and competitive position [16][18] - The company is focusing on expanding its APC portfolio and pursuing additional awards driven by industrial expansion and regulatory requirements [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted an unprecedented increase in demand for power generation driven by the digital economy, including AI and data centers [20] - The company expects revenues for 2025 to be approximately $27 million, representing an 8% increase over 2024 [27] - Management expressed confidence in maintaining a strong financial position with total cash and investments of $33.8 million and no debt [32] Other Important Information - The company is continuing to monitor the EPA's rule for large municipal waste combustor units, which could impact nitrogen oxide emissions requirements [19] - The company is experiencing significant interest in its DGI technology, with ongoing demonstrations and discussions in various end markets [26] Q&A Session Summary Question: Will additional investments be needed to monetize the recent acquisition? - Management does not expect significant incremental investment to capitalize on the acquired IP, with some near-term contributions anticipated from aftermarket opportunities [38] Question: How is the company approaching data center opportunities? - The company is typically brought in by engine or turbine OEMs and is also engaging with non-traditional players looking to repurpose aircraft engines for power generation [40][41] Question: What is the current pipeline size for data center opportunities? - The company is pursuing eight to ten opportunities valued at $80 million-$100 million, with some expected to finalize by the end of the year or early 2026 [43] Question: What are the expectations for cash flow in Q4? - Management anticipates a flat to slightly lower cash balance by year-end, with Q3 being the best performing quarter [54]