Financial Data and Key Metrics Changes - For the fourth quarter ended August 31, 2025, total consolidated net sales decreased 4.4% to $22.3 million compared to the same period last year [5] - Fiscal 2025 consolidated net sales decreased 1.0% year-over-year [13] - NTIC reported a net loss of $1.1 million, or $0.11 per diluted share for Q4 2025, compared to net income of $1.8 million, or $0.19 per diluted share for Q4 2024 [17] - The effective tax rate for fiscal 2025 was 67.5%, significantly higher than 17.3% in the prior fiscal year [16] Business Line Data and Key Metrics Changes - Zerust oil and gas net sales decreased 29.4% in Q4 2025, totaling $3 million compared to $4.2 million in Q4 2024 [5][8] - NatureTech net sales declined 10% in Q4 2025, totaling $5.1 million [10] - Zerust industrial net sales increased by 5.8% [5] - NTIC China sales increased by 12% to $4 million in Q4 2025, and 14% to $16.2 million for the full fiscal year [7] Market Data and Key Metrics Changes - Joint venture sales increased by 4.7% in Q4 2025 to $24.4 million, but declined 4.9% for the full fiscal year [6] - The oil and gas group in North America was down close to 46% year-over-year, while NatureTech North America was down about 13% [39] Company Strategy and Development Direction - The company is focused on flattening operating expenses while expanding gross margins and driving sales in higher-margin areas [5] - NTIC is pursuing strategic initiatives to enhance long-term growth potential, including product innovation and emerging opportunities in the South American offshore oil and gas sector [4] - The company expects to start reaping benefits from strategic investments made over the past three years in fiscal 2026 [4] Management's Comments on Operating Environment and Future Outlook - Management anticipates macroeconomic headwinds to persist, especially in Europe, but believes NTIC is positioned for growth and improved profitability in key markets [5] - The company remains confident in its strategic growth plan despite challenges faced in fiscal 2025 [12] Other Important Information - NTIC's working capital as of August 31, 2025, was $20.4 million, down from $23.7 million a year earlier [18] - The company declared a quarterly cash dividend of $0.01 per common share payable on August 13, 2025 [19] Q&A Session Summary Question: Are the income taxes on international business higher than domestic taxes? - Management explained that the effective tax rate is influenced by profitability levels in North America, which were low in Q4 2025, leading to a high effective tax rate [22][23] Question: How much can the company cut expenses to improve profitability? - The goal is to maintain operating expenses close to fiscal 2025 levels, with expectations of revenue growth in 2026 from previous investments [25][26] Question: What is driving the oil and gas business? - The growth is attributed to general acceptance of the technology in the market and repeat business from existing customers [30] Question: What is the status of the compostable packaging business? - Trials are ongoing with several customers, and initial orders are expected to contribute to sales in 2026 [32] Question: Where is the weakness in North America coming from? - The main weaknesses were identified in the NatureTech and oil and gas groups, with significant declines reported [39] Question: Is the one-time customs charge a recurring issue? - Management confirmed it was a one-time event and does not expect it to impact future P&L [43][44]