Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 rose 37% to $7.2 million from $5.3 million in the prior year period, driven by growth in both APC and FUEL CHEM segments [23] - Full year 2025 consolidated revenue increased 6% to $26.7 million, with FUEL CHEM segment revenue rising 28% to $17.8 million [26] - Consolidated gross margin for Q4 2025 rose to 45% from 42% in the previous year, while full year gross margin increased to 46% from 42% in 2024 [23][27] - Operating loss narrowed to $1.4 million in Q4 2025 from $2.1 million in the prior year, and full year operating loss decreased to $3.7 million from $4.7 million [25][29] - Net loss for 2025 was $2.3 million or $0.08 per diluted share, compared to a net loss of $1.9 million or $0.06 per diluted share in 2024 [29] Business Line Data and Key Metrics Changes - APC segment revenues increased 37% to $2.4 million in Q4 2025, primarily due to project completion timing [23] - FUEL CHEM segment had a strong quarter with a 37% revenue increase to $4.9 million, benefiting from legacy portfolio contributions and a new demonstration program [23][24] - APC segment backlog at year-end 2025 was $7 million, up from $6.2 million at the end of 2024, indicating a positive trend in project awards [24] Market Data and Key Metrics Changes - The company secured $8.8 million in APC awards during 2025 from new and existing customers across the U.S., Europe, and Southeast Asia [8] - The near-term sales pipeline for APC contracts, excluding data center opportunities, is estimated to be between $3 million and $5 million [8] - The sales pipeline for data center opportunities is strong, approximating $75 million to $100 million for projects integrating SCR technology [10] Company Strategy and Development Direction - The company is focusing on expanding its air pollution control business, particularly in data center development and construction [5] - A strategic acquisition of Wahlco, Inc. has strengthened the company's technology portfolio and broadened its customer base [9] - The company aims to convert demonstration programs into commercial contracts, particularly in the FUEL CHEM segment, which is expected to continue performing well [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in 2026, expecting revenues to exceed 2025 levels, with FUEL CHEM approximating 2025 revenues and APC exceeding 2025 performance [22] - The regulatory environment is evolving, with potential rollbacks of certain regulations that could extend the life of coal and natural gas-fired units, which may benefit the company [14][15] - Management highlighted the importance of the data center opportunity as a significant growth driver for the future [10][12] Other Important Information - The company maintained a strong financial position with cash and investments of nearly $32 million at year-end and no debt [5][30] - SG&A expenses as a percentage of revenue decreased to 57% in Q4 2025 from 75% in the prior year, reflecting higher consolidated revenue [25] Q&A Session Summary Question: Data center opportunity and reliance on integrators - Management indicated that they are not yet specifically designed in with operators but are establishing themselves as trusted partners [36][38] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent rollbacks but emphasized that they do not affect nitrogen oxide reduction opportunities [40][41] Question: Potential customers in FUEL CHEM - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44][46] Question: Outlook for DGI revenues - Management expects to recognize small revenue from a rental contract and hopes for a system sale by the end of 2026, which would support further commercialization efforts [51][53] Question: Confidence in closing data center projects - Management's confidence stems from increased inquiries and the caliber of parties involved, indicating a long-term opportunity rather than a short-term one [62]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 rose 37% to $7.2 million from $5.3 million in the prior year period, driven by growth in both APC and FUEL CHEM segments [23] - Full year 2025 consolidated revenue increased 6% to $26.7 million, with FUEL CHEM segment revenue rising 28% to $17.8 million [26] - Consolidated gross margin for 2025 rose to 46% from 42% in 2024, with higher margins for both FUEL CHEM and APC segments [27] Business Line Data and Key Metrics Changes - APC segment revenues increased 37% to $2.4 million in Q4 2025, primarily due to project completion timing [23] - FUEL CHEM segment generated a 37% increase in revenue to $4.9 million in Q4 2025, reflecting contributions from legacy portfolio and a new demonstration program [23] - APC segment backlog at the end of 2025 was $7 million, up from $6.2 million at the end of 2024 [24] Market Data and Key Metrics Changes - The company secured $8.8 million in APC awards during 2025 from new and existing customers in the U.S., Europe, and Southeast Asia [8] - The sales pipeline for data center opportunities is estimated at $75 million-$100 million, indicating strong demand for emissions control solutions [10] Company Strategy and Development Direction - The company is focusing on expanding its air pollution control business, particularly in data center development and construction [5] - A strategic acquisition of Wahlco, Inc. has strengthened the company's technology portfolio and broadened its customer base [9] - The company aims to convert demonstration programs into commercial contracts, particularly in the FUEL CHEM segment [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue growth in 2026, expecting FUEL CHEM to maintain 2025 revenue levels and APC to exceed 2025 performance [22] - The regulatory environment is evolving, with potential rollbacks of certain regulations that could extend the life of coal and natural gas-fired units, which may benefit the company [14][15] Other Important Information - The company maintained a strong financial position with cash and investments of nearly $32 million at year-end and no debt [5] - Operating loss narrowed to $3.7 million for 2025, compared to a loss of $4.7 million in 2024, reflecting higher segment revenues [29] Q&A Session Summary Question: Data center opportunity and reliance on integrators - Management indicated that they are not yet specifically designed in with operators but are establishing themselves as trusted partners for pollution control systems [36] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent regulatory rollbacks but emphasized that these do not affect opportunities related to nitrogen oxide reduction [41] Question: Potential customers in FUEL CHEM segment - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44] Question: Revenue expectations from DGI - Management expects to recognize small revenue from DGI rentals and hopes for a system sale by the end of 2026, which would help in further commercializing DGI [52]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 rose 37% to $7.2 million from $5.3 million in the prior year period, driven by growth in both APC and FUEL CHEM segments [24] - Full year 2025 consolidated revenue increased 6% to $26.7 million, with FUEL CHEM segment revenue rising 28% to $17.8 million [27] - Consolidated gross margin for Q4 2025 rose to 45% from 42% in the previous year, while full year gross margin increased to 46% from 42% in 2024 [24][28] - Operating loss narrowed to $1.4 million in Q4 2025 from $2.1 million in the prior year, and full year operating loss decreased to $3.7 million from $4.7 million [26][29] - Net loss for 2025 was $2.3 million or $0.08 per diluted share, compared to a net loss of $1.9 million or $0.06 per diluted share in 2024 [29] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenues for Q4 2025 increased 37% to $4.9 million from $3.5 million, reflecting contributions from legacy accounts and a new demonstration program [24][25] - APC segment revenues rose 37% to $2.4 million in Q4 2025 from $1.8 million, primarily due to project completion timing [24] - APC segment backlog at year-end 2025 was $7 million, up from $6.2 million at the end of 2024, with a mix of domestic and foreign projects [25] Market Data and Key Metrics Changes - The sales pipeline for data center opportunities is estimated at $75 million to $100 million, with expectations for commercial awards beginning in Q2 2026 [11][13] - The company secured $8.8 million in APC awards during 2025 from new and existing customers across the U.S., Europe, and Southeast Asia [9] Company Strategy and Development Direction - The company is focusing on expanding its air pollution control business, particularly in data center development and construction, and is optimistic about converting demonstration programs into commercial contracts [5][21] - A strategic acquisition of Wahlco, Inc. has strengthened the company's technology portfolio and customer base, enhancing its market position [10] - The company aims to leverage regulatory changes to extend the life of coal and natural gas-fired units, offering retrofit and maintenance solutions [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue growth in 2026, expecting FUEL CHEM revenues to approximate 2025 levels and APC revenues to exceed 2025 performance [23] - The company is actively monitoring regulatory changes and their implications for business opportunities, particularly regarding nitrogen oxide reduction [14][16] - Management highlighted the importance of establishing relationships with data center integrators and turbine suppliers to capitalize on emerging opportunities [12][62] Other Important Information - The company maintained a strong financial position with cash and investments totaling $31.9 million and no debt as of year-end 2025 [30] - SG&A expenses for 2025 increased slightly to $14.1 million, but as a percentage of revenue, they decreased to 53% from 55% in 2024 [28] Q&A Session Summary Question: Data center opportunity and competition with integrators - Management indicated that they are not yet specifically designed in with operators but are establishing themselves as trusted partners for pollution control system design [36][37] Question: Impact of EPA regulations on existing plants - Management noted it is too early to assess the impact of recent regulatory rollbacks but emphasized that these do not affect opportunities related to nitrogen oxide reduction [40][41] Question: Potential for additional customers in FUEL CHEM - Management expressed optimism about converting demonstration contracts to commercial agreements and mentioned ongoing discussions for additional opportunities [44][45] Question: Revenue expectations from DGI - Management expects to recognize small revenue from DGI rental contracts and is hopeful for a system sale by the end of 2026, which would support further market development [51][52] Question: Confidence in closing data center projects - Management's confidence stems from increased inquiries and the caliber of parties involved, indicating a long-term opportunity rather than a short-term one [60][62]

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]

Financial Data and Key Metrics Changes - Revenues for the first quarter of 2025 rose 29% to $6,400,000 from $5,000,000 in the prior year period, primarily driven by the robust performance from the FUEL CHEM business segment [17][5] - Consolidated gross margin improved to 46% from 41% in the prior year, reflecting a higher proportion of FUEL CHEM segment revenue [18] - The operating loss narrowed to $952,000 from $1,700,000 in the previous year, indicating improved revenue profit [22] - The net loss for the quarter was $739,000 or $0.02 per share, compared to net income of $281,000 or $0.01 per share in the same period last year [22] Business Segment Data and Key Metrics Changes - FUEL CHEM segment revenue increased by 92% to $5,100,000 from $2,600,000 in the prior year, comprising nearly 80% of total revenues for the quarter [17][8] - APC segment revenue declined to $1,300,000 from $2,300,000 in the previous year, primarily due to the timing of project execution [17][9] - APC backlog improved significantly, reaching $10,300,000 as of March 31, 2025, up from $6,200,000 at December 31, 2024 [19] Market Data and Key Metrics Changes - The company is encouraged by the global landscape of business development activities, driven by manufacturing expansion and growing demand for power generation [6] - The demand for emissions control solutions is increasing due to the need for compliance with environmental regulations across various markets [7] Company Strategy and Development Direction - The company aims to maintain its revenue guidance for 2025, expecting total revenues to approximate $30,000,000, with both business segments exceeding their performance in 2024 [14] - The company is pursuing additional FUEL CHEM opportunities both domestically and internationally, including a new demonstration of TIFI technology [8] - Investment in water quality and infrastructure is growing, with the company planning to demonstrate its dissolved gas infusion technology [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook for business development opportunities, indicating that 2025 will be a year of growth [4] - The company does not expect specific tailwinds from new regulations but is confident in capturing opportunities driven by general business expansion [11][31] - Management noted that the extension of life for coal-fired units could benefit the company due to increased demand for reliable power [31] Other Important Information - The company has no long-term debt and maintains a strong financial position with approximately $31,000,000 in cash and investments [6][24] - Research and development expenses increased to $570,000, reflecting ongoing investment in water and wastewater treatment technologies [21] Q&A Session Summary Question: How is the company positioned regarding the current political environment and regulations? - Management indicated that the current administration is not deterring business opportunities, and general business expansion is driving growth [29][31] Question: Can the company share any names of partners in the data center market? - Management refrained from naming specific partners but mentioned working with OEM suppliers and large tech companies [33] Question: What is the potential size of the data center opportunity? - Management noted that opportunities could be significant, with costs per unit ranging from $1,000,000 to $2,000,000 [35] Question: What is needed for the Mexican opportunity to materialize? - The Mexican government needs to allocate funds for pollution remediation systems to begin receiving orders [39] Question: Is there a plan for stock buybacks given the current trading levels? - Management discussed the potential for stock buybacks but believes there is enough positive momentum to drive stock price without using cash for buybacks at this time [68]

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]