Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4,600,000, a 36% sequential increase from $3,400,000 in Q4 2024 and up from $4,200,000 in Q1 2024 [5][22] - Gross margin for Q1 2025 was 2.7%, down from 6.4% in the same period last year, but improved from negative margins in Q4 2024 [24] - Net loss for the quarter was $2,400,000, consistent with the comparable period of 2024 [27] Business Line Data and Key Metrics Changes - Water Systems sales were $2,700,000, up from $1,500,000 in Q1 2024 and $1,400,000 in Q4 2024, driven by the record oil and gas order [22] - DPF and ceramic membrane sales were $1,000,000, down from $1,800,000 in Q1 2024 and slightly down from $1,100,000 in Q4 2024 [23] - Plastics revenue was $1,000,000, up from $900,000 in both Q1 2024 and Q4 2024 [23] Market Data and Key Metrics Changes - The company is seeing growth in various markets, including oil and gas, swimming pools, and plastics, with expectations for continued revenue growth in Q2 2025 [8][20] - The joint venture in China has begun to yield results, with new orders for marine scrubber units and a framework agreement for after-sales support [15][17] Company Strategy and Development Direction - The company aims to improve bottom-line profitability through better manufacturing utilization and cost-saving initiatives [8][29] - Focus on expanding in the Chinese market, particularly in marine water treatment solutions, is a key strategic direction [17][18] - The company is also enhancing its product offerings in various sectors, including lithium brine extraction and swimming pool systems [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the order pipeline, indicating continuous improvement across various segments [35] - The company anticipates revenue for Q2 2025 to be between $4,800,000 and $5,200,000, reflecting a sequential increase [20][22] - Management emphasized the importance of sustainable cash flow generation and long-term value creation [32] Other Important Information - The company has implemented a comprehensive cost reduction strategy aimed at lowering the breakeven target to $5,500,000 to $6,000,000 in quarterly revenue [27] - Cash balance at the end of Q1 2025 was $10,500,000, down from $10,900,000 at the end of December 2024 [28] Q&A Session Summary Question: Can you talk about your order pipeline? Is it improved, deteriorated or it stayed the same since your last call on March 28? - Management indicated that the order pipeline is continuously improving, with broad-based growth across marine, pool, and water energy segments [35] Question: Can you talk about which segments? How do you see sales trending sequentially in Q3 and Q4 of this year? - Management expects growth across all segments in Q2, with additional large projects anticipated in Q3 and Q4 [36] Question: Is there more competition in silicon carbide technology? - Management acknowledged competition from various regions, including France, Germany, and China, but emphasized superior performance compared to competitors [41][43] Question: Will all the cost savings initiatives be in full effect in the second quarter? - Management confirmed that cost savings initiatives will be fully implemented in Q2, with operating expenses expected to be slightly lower than Q1 [44] Question: How much more performance data is needed for the lithium brine pilot? - Management stated that additional data is needed for both the lithium brine and oil and gas pilots, with positive expectations for moving to the next phase [46][47] Question: Is the aftermarket agreement in China servicing only your own systems or competitor systems as well? - Management clarified that the focus is on servicing their own systems, as it is more straightforward and profitable [49]