Summary of Tantalus Systems Holding Conference Call Company Overview - **Company**: Tantalus Systems Holding (OTCPK:TGMP.F) - **Industry**: Utility technology and smart grid solutions Key Financial Highlights - **Revenue Growth**: Revenue increased by $100,000 or 10% due to higher sales volumes and new utility customer conversions [1] - **Recurring Revenue**: Q3 recurring revenue reached $3.4 million, accounting for 24% of total revenue, with annual recurring revenue growing over 11% year-over-year to $13.5 million [1][4] - **Gross Profit Margins**: Gross profit margins were strong at 55%, with the connected devices segment showing improved margins due to lower provisions for customer accommodations and warranty [1][4] - **Net Income**: The company reported a net income of $384,000, a significant improvement from a loss of $361,000 in the prior year [2] - **Adjusted EBITDA**: Positive adjusted EBITDA of $1.2 million in Q3, up from $585,000 year-over-year, driven by revenue growth and disciplined cost management [3] Product Development and Market Position - **TruSense Gateway**: 52 utilities have placed orders for the TruSense Gateway, exceeding internal expectations for initial evaluations [6][7] - **Sales Pipeline**: The company has converted over $50 million in orders from its sales pipeline, marking a record for the company [8] - **Market Demand**: There is a strong demand for grid modernization, with utilities urgently upgrading their distribution grids [4] Strategic Insights - **Manufacturing Capacity**: Current contract manufacturing capacity is 150,000 units per year, with plans for geographic diversification to mitigate risks [10][11] - **Future Growth**: The company anticipates significant growth opportunities from the 52 utilities currently trialing the TruSense Gateway, with expectations for revenue contributions in 2026 [51][52] - **Acquisition Strategy**: Future acquisitions will focus on being accretive to earnings and strategically expanding market access and product lines [39][40] Industry Context - **Data Center Impact**: The rise of data centers is creating capacity constraints for utilities, necessitating modernization and improved power quality metrics [47][48] - **Competitive Landscape**: Tantalus competes and partners with traditional meter vendors, but does not currently see direct competition for the TruSense Gateway from these partners [45][46] Operational Considerations - **Installation Services**: Most utilities install connected devices using their personnel, with Tantalus providing oversight and project management for those that outsource installations [61][62] - **R&D to Sales Shift**: A shift in operational expenses from R&D to sales and marketing is expected as the company focuses on commercialization of the TruSense Gateway [35] Additional Insights - **Long-term Product Development**: The company is considering future enhancements to the TruSense Gateway, including potential capabilities for virtual power plant integration [56][57] - **Feedback Mechanism**: Continuous feedback from utilities is shaping the development of the TruSense Gateway and related services [56] This summary encapsulates the key points discussed during the conference call, highlighting Tantalus Systems Holding's financial performance, product developments, strategic insights, and industry context.

Summary of Tantalus Systems Holding Update / Briefing (November 25, 2025) Company Overview - **Company**: Tantalus Systems Holding (OTCPK:TGMP.F) - **Industry**: Utility technology and smart grid solutions Key Financial Metrics - **Cash Flow**: Approximately $1.3 million used from cash flow from operations due to seasonal working capital changes [1] - **Liquidity**: Available liquidity of approximately $18.3 million, including $9.8 million in cash and $8.5 million in borrowing capacity [1] - **Revenue**: Record revenue of approximately $52 million over the trailing 12 months, up from $42 million the previous year [1] - **Recurring Revenue**: Record recurring revenue of $12.7 million, representing 25% of total revenues [2] - **Gross Profit Margin**: Strong gross profit margin of 54% [2] - **Adjusted EBITDA**: Positive adjusted EBITDA of $3.5 million, with a margin of 6.7% [2] Business Performance and Growth - **Customer Base**: Approximately 88% of revenue generated during the quarter came from existing customers, indicating strong customer retention and growth potential [3] - **TruSense Gateway Orders**: 52 utilities have placed orders for the TruSense Gateway, exceeding internal expectations [4] - **Sales Pipeline**: Orders converted from the sales pipeline have surpassed any prior complete year, with over $50 million in orders converted [5] - **Order Growth**: Orders have grown over 30% year-over-year, while revenue is up 22% [16] Product Development and Market Strategy - **TruSense Gateway**: Positioned as part of a broader platform for utilities, focusing on grid modernization and data analytics [12][15] - **Manufacturing Capacity**: Current contract manufacturing capacity is 150,000 units per year, with plans for geographic diversification [8][9] - **Market Adoption Timeline**: Expected adoption timeline for utilities to deploy the TruSense Gateway is 3-5 years, with initial trials lasting from 3 to 18 months [10][11] Future Outlook - **2026 Expectations**: Internal targets for utility orders are being evaluated, with significant growth opportunities identified from the current 52 utilities [50][51] - **Acquisition Strategy**: Future acquisitions will focus on being accretive to earnings and expanding market access, technology, and product lines [38][39] - **Data Management Focus**: Emphasis on managing existing data and integrating new data from devices like the TruSense Gateway [56] Additional Insights - **Utility Challenges**: Data centers are creating capacity constraints for utilities, necessitating modernization and improved power quality [46][48] - **Installation Services**: Most utilities handle their own installations, with Tantalus providing oversight and project management without entering the installation business [60][61] - **Competitive Landscape**: Tantalus competes and partners with meter vendors, but has not seen direct competition for the TruSense Gateway from these partners [44][45] This summary encapsulates the key points from the Tantalus Systems Holding update, highlighting financial performance, product development, market strategy, and future outlook.