Financial Data and Key Metrics Changes - For Q3 2025, the company recognized approximately $1 million in revenues, a decrease from approximately $1.9 million in Q3 2024, primarily due to a large order shipped in the prior year [5][6] - The net loss increased by approximately $274,000 compared to the same period in 2024, driven by the decrease in sales volume [7] - Gross margin increased by approximately 6.1 percentage points year-over-year for Q3 2025, reinforcing the long-term strategy to target margins between 40% and 45% [8] - Net cash used in operations for Q3 was approximately $1.8 million, compared to $1.4 million in the same period in 2024 [8] Business Line Data and Key Metrics Changes - Q3 2025 revenue was generated from multiple spare parts orders, a midstream order, a flare order, and engineering services, indicating a diversification strategy adding incremental revenue [6] - The M-series burners are targeted at the gas industry and midstream gas, with significant growth potential in the energy sector, particularly with export LNG [18][19] Market Data and Key Metrics Changes - There has been an uptick in order flow across major product lines, driven by regulatory pressures and increased customer inquiries, particularly in Texas and California [11][12] - The company is seeing increased interest in its products due to ongoing regulatory changes in key markets, which are pushing customers to meet compliance requirements [12][92] Company Strategy and Development Direction - The company aims to expand its market presence by getting more equipment out in the field and building customer trust [11] - The focus is on developing a range of burners capable of operating on various fuel types, including hydrogen, to meet future market demands [88] - The company is also looking to leverage its technology in larger systems projects, moving beyond just burner sales to include comprehensive solutions [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the successful completion of significant projects and the potential for further orders [71] - The company anticipates continued traction in orders for the M-series and flare products, which are expected to fill revenue gaps while larger process burner orders are being developed [78] - Management does not foresee headwinds from federal regulatory changes, particularly regarding NOx emissions, and expects ongoing inquiries related to hydrogen capabilities [81][82] Other Important Information - The company has a strong working capital position, with approximately $10.5 million in cash and cash equivalents as of September 30, 2025 [8] - The relationship with Zeeco is strong, with extensive collaboration on testing and burner fabrication [70] Q&A Session Summary Question: What is the outlook for 2026 expected revenues based on the different types of orders? - Management indicated that while process burner orders are larger and take longer to execute, quicker-turn products like the M-series and flare orders will help fill revenue gaps [77][78] Question: Are there new product opportunities under development? - Management confirmed that there is potential for new products, particularly leveraging the technology developed under the SBIR program [80] Question: Is there any risk from federal regulatory changes affecting sales? - Management does not expect headwinds from the EPA regarding NOx emissions and sees ongoing interest in hydrogen capabilities from global clients [81][82] Question: What is the significance of spare parts in revenue? - Spare parts are becoming an increasingly important and consistent revenue stream, expected to grow as more equipment is installed [90][91] Question: What factors are driving increased orders from Texas and the Gulf Coast? - Management noted that while California business remains strong, there is a significant uptick in interest from the Gulf Coast due to regulatory awareness and acceptance in the industry [92]

Financial Data and Key Metrics Changes - For Q3 2025, the company recognized approximately $1 million in revenues, a decrease from approximately $1.9 million in Q3 2024, primarily due to a large order shipped in the prior year [5][6] - The net loss increased by approximately $274,000 compared to the same period in 2024, driven by the decrease in sales volume [6][8] - Gross margin increased by approximately 6.1 percentage points year-over-year for Q3 2025, reinforcing the long-term strategy to target margins between 40% and 45% [7] Business Line Data and Key Metrics Changes - Q3 2025 revenue was generated from multiple spare parts orders, a midstream order, a flare order, and engineering services, indicating a diversification strategy adding incremental revenue [6] - The M-series burners are targeted at the gas industry and midstream gas, with significant growth potential due to ongoing upgrades and compliance needs [18][19] Market Data and Key Metrics Changes - There has been an uptick in order flow across major product lines, driven by regulatory pressures and increased customer inquiries, particularly in Texas and California [11][12] - The company is seeing increased interest in its products due to evolving regulations in key markets, particularly regarding NOx emissions [17][62] Company Strategy and Development Direction - The company aims to expand its market presence by leveraging its technology to meet regulatory requirements and customer needs, particularly in the process burner and flare markets [12][62] - The development of a burner capable of operating on 100% hydrogen is seen as a significant opportunity for future applications, despite current market conditions [91] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming quarter, highlighting the shipment of 26 burners and ongoing projects that are expected to contribute to revenue [73][75] - The company anticipates that the M-series and flare products will help fill revenue gaps while larger process burner orders are being developed [80][82] Other Important Information - The company has approximately $10.5 million in cash and cash equivalents as of September 30, 2025, positioning it well for future growth [8] - Spare parts sales are expected to become a significant and consistent revenue stream as more equipment is installed [95] Q&A Session Summary Question: What is the impact of different order types on revenue expectations for 2026? - Management noted that process burner orders are larger but take longer to execute, while M-series and flare orders turn more quickly, helping to balance revenue flow [78][80] Question: Are there new product opportunities under development? - Management indicated potential for new products, particularly leveraging the technology developed under the SBIR program, which is versatile for various applications [83] Question: Is there any risk from federal regulatory changes affecting sales? - Management does not foresee significant headwinds from federal regulations, particularly regarding NOx emissions, and believes global interest in hydrogen capabilities will continue [84][92] Question: What is the outlook for spare parts revenue? - Spare parts are expected to grow as more equipment is installed, providing a high-margin revenue stream for the company [95] Question: What factors are driving increased orders from Texas and the Gulf Coast? - Management highlighted acceptance in the industry and upcoming regulatory changes as key factors driving interest in these regions [96]

Investment Opportunity - The industry is observing Solsticefi as a potential "Ethena for Solana", suggesting a high-growth opportunity in the Solana ecosystem [1] - Early depositors in similar projects like Ethena experienced significant gains, indicating a potential for high returns [1] Risk Assessment - The author is not going "crazy" on deposits, implying a cautious approach due to potential risks associated with new DeFi projects [1] User Behavior - Users are incentivized to use referral codes to earn affiliate Flares, indicating a strategy to boost platform adoption [1] - Users are depositing stablecoins to farm "flares" that will convert into SLX tokens, showcasing a yield farming strategy [1]

Financial Performance - Adjusted sales reached $90.5 million, representing an 8.9% year-over-year increase[5, 9] - Adjusted EBITDA was $11.3 million, a 9.7% increase compared to the previous year[5, 9] - Adjusted EPS stood at $0.23, reflecting a 15% increase year-over-year[5, 9] - Net debt was maintained below $42 million, with a low leverage ratio of 0.7x[6] - Cash from operations increased by $1.5 million to $5.1 million[9] Segment Results - Elektron segment sales grew to $49.4 million, a 31% increase year-over-year, with an adjusted EBITDA of $8.7 million[15, 20] - Gas Cylinders segment sales were $41.1 million, a 9.5% decrease year-over-year, with an adjusted EBITDA of $2.6 million[26, 55] - Elektron segment achieved a 17.6% adjusted EBITDA margin[15] - Gas Cylinders segment experienced a margin compression, with adjusted EBITDA margin falling to 6.3%[26] Outlook and Strategy - The company reaffirmed its 2025 outlook, projecting adjusted EBITDA between $48 million and $52 million and adjusted EPS between $0.95 and $1.05[29] - The company anticipates interest expense of approximately $4 million, capital expenditures between $12 million and $15 million, and a tax rate of around 23%[31]