Financial Data and Key Metrics Changes - In Q2 2025, total recognized revenue was approximately $1,000,000, a decline of 66% from $3,000,000 in Q2 2024, primarily due to customers deferring capital expenditure projects [14] - Service revenue for the quarter was $378,000, representing a 33% increase year-over-year, while service revenue for the first six months reached $955,000, a 299% increase [15] - Gross margin improved to 66% in Q2 2025, up from 62% in the same quarter last year, attributed to a favorable product mix [15] Business Line Data and Key Metrics Changes - Service revenue from IHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first six months [8] - BIT solution sales saw a 40% increase year-to-date, with expectations for continued growth due to repeat orders [10] - The company has a sales order backlog of approximately $4,600,000, with active projects scheduled for delivery in 2025 [7] Market Data and Key Metrics Changes - The company is negotiating approximately $2,000,000 in new custom and integrated contracts, with bids expected to close before year-end [7] - Open opportunities for three product offerings total approximately $15,000,000, with $7,000,000 designated as high priority [7] - The USDA increased its usage of SteraMist in Q2 2025, indicating growing market acceptance [12] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing strategies and strategic partnerships [9] - There is an emphasis on educating the market about proactive disinfection through the SteriMist Pro certified program [10] - The company aims to enhance its infrastructure by strengthening personnel in management and expanding its global distributor network [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining a positive trajectory for the remainder of 2025, despite challenges faced in Q2 [6] - The company anticipates significant orders from large companies as new manufacturing plants are built in the U.S. [38] - Management is hopeful that upcoming regulatory approvals will significantly impact growth [29] Other Important Information - The company was recognized as the Disinfection, Decontamination, and Disinfection Product Company of the Year for 2025 [12] - The company is developing a scalable solution to replace outdated methods in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases [21] - There is a strong pipeline of international partnerships in Europe, with pending approvals expected soon [23] Q&A Session Summary Question: Can you provide margins realized in solution sales compared to the rest of the business? - Management expressed excitement about solution sales, noting high margins and an increase in gross margins to 66% this quarter [33] Question: What opportunities arise from the strategy to bring back pharma manufacturing to the U.S.? - Management highlighted that high regulatory standards present opportunities for significant orders from large companies as new facilities are built [38] Question: Have any customers that deferred CapEx projects notified you about moving ahead? - Management indicated a significant increase in customer deposits and confirmed that at least two customers are expected to proceed with projects in 2026 [41] Question: Can you describe how SteraMist would be used if FDA approvals are obtained? - Management detailed ongoing FDA approval processes for medical devices and food safety applications, emphasizing the potential for expanded market opportunities [43][44] Question: Any new uses developed for SteraMist? - Management mentioned ongoing internal tests for new applications, including extending the shelf life of flowers, but noted hurdles to overcome before entering new industries [46]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased to $1,577,000, up from $1,114,000 in Q1 2024, representing a 42% increase driven by heightened demand for bit solutions and mobile systems [11] - Product-based revenues totaled $1,000,000 in Q1 2025, reflecting a 35% growth compared to Q1 2024 [11] - Service revenues generated $577,000, a 56% increase from the same prior year period [11] - BIT solution sales reached approximately $300,000, marking nearly a 200% increase from just over $100,000 in Q1 2024 [12] - Operating loss for the quarter was approximately $754,000, an improvement from the operating loss of $1,226,000 in the same quarter last year [12] - Net loss was approximately $256,000 or $0.01 per share compared to $1,310,000 or 7% loss per share in the prior year [12] - Cash and cash equivalents stood at approximately $674,000, with working capital of $3,800,000 [13] Business Line Data and Key Metrics Changes - Total sales in February 2025 saw a 42% increase compared to February 2024, with a 21% increase in April 2025 compared to April 2024 [6] - Year-to-date, there was a 169% surge in bit solution sales compared to the same period last year [6] - The company welcomed several new customers, including a division of the US Army and a children's hospital, indicating expansion in various sectors [8] Market Data and Key Metrics Changes - The company reported an increase in open sales log from approximately $877,000 at the end of 2024 to $1,600,000 by the end of Q1 2025 [10] - The IHP corporate service deployment pipeline currently stands at $1,000,000 in open proposals for 2025 [22] Company Strategy and Development Direction - The company is focused on expanding its product line and distribution strategy, with new service offerings launched in 2024 [5] - There is a commitment to educating the market on the importance of protective disinfection through the SteraMist Pro certified program [7] - The company aims to enhance its sales infrastructure by establishing new distribution channels and recruiting qualified business developers [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining sales momentum and anticipated a positive trend in sales throughout the year [14] - The company is encouraged by significant progress made in Q1 2025, showcasing the effectiveness of its strategies and product offerings [23] - Management noted that they are not experiencing significant problems due to government budget cuts and expect increased demand from government sectors [28] Other Important Information - The company is actively seeking strong global partners and is focused on rebuilding brand presence in various international markets [21] - The partnership with AlgaFeed has opened a new aquaculture market for SteriMist IHP [8] Q&A Session Summary Question: Do you have any financial goals for the year 2025? - Management is confident that 2025 will be a great year and expects to improve on last year's numbers [25] Question: Do you anticipate any effects from the tariffs trade policy? - Management indicated that they have had minor issues with tariffs but are not experiencing significant problems with international sales [26][27] Question: Do you anticipate significant problems due to government budget cuts? - Management believes there will be an increase in demand from government sectors that utilize their products [28] Question: Any new developments on food safety? - Management reported a surge in interest and requests related to food safety, indicating a growing market [30] Question: Any updates on SteraMist for prevention of bird flu transmission? - Management noted that there is increased interest in using their products for bird flu disinfection, but no significant developments have materialized recently [31][32] Question: Any new developments on Ceramist as an ethylene oxide replacement? - Management confirmed ongoing negotiations with companies looking to replace ethylene oxide with Ceramist [33] Question: Was the order for treating pacemakers used in replacement of ethylene oxide? - The order was not a replacement but helped develop a new protocol for the medical device manufacturer [34][35] Question: Have any new ways been developed to educate the market? - The SteraMist Pro certified program was launched to educate the market and improve product usage [37][38]