Financial Data and Key Metrics Changes - First fiscal quarter revenue increased by 10% from $5.4 million to $6 million [4] - Income from operations rose by 28% to $1.9 million compared to $1.5 million [5] - GAAP net income increased by 13% to $1.8 million from $1.6 million [6][7] - Earnings per share for the quarter was $0.10 basic and $0.09 diluted, reflecting a year-over-year EPS growth of 13% [8] - Cash from operations decreased to $1.5 million from $1.9 million in the year-ago quarter [8] - Total cash increased to $28.8 million from $28.6 million, maintaining zero bank debt [8] Business Line Data and Key Metrics Changes - All lines of business are experiencing growth, with traditional sales and cross-selling initiatives contributing to accelerated momentum [9] - Revenue per employee is $356,000 annually, significantly higher than the industry average of $175,000 [5] Market Data and Key Metrics Changes - The company is positioned as a dominant player in the traceability and food safety sectors, leveraging its capabilities to grow across all business lines [15][22] - The traceability revenue continues to grow, enhancing the company's reputation in the industry [22] Company Strategy and Development Direction - The company aims to grow annual recurring revenue between 10%-20% and increase profitability at a faster rate [4] - A multi-year initiative to modernize the software code is underway, focusing on automation and AI to enhance operational efficiency [12][20] - The capital allocation strategy includes returning 50% of annual free cash flow to shareholders while maintaining a strong cash reserve [9][10] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a cautious industry environment due to factors like government shutdowns and inflation, but the impact is not substantial [28] - The focus on data integrity and error correction in traceability is seen as a significant opportunity for future growth [30] Other Important Information - The company has redeemed approximately 572,000 shares of preferred stock and continues to repurchase common shares without incurring debt [10][11] - The modernization project is expected to drive significant efficiencies and create incremental value for customers and shareholders [22] Q&A Session Summary Question: How, if at all, were you impacted by the government shutdown? - The shutdown impacts the food industry due to the FDA not working, causing caution in the industry, but the impact is not substantial [28] Question: Do you still believe your by-ingredient efforts are increasing your total addressable market? - Yes, it expands the market as traceability records require participation from suppliers, creating a connected chain [29][32]

Financial Data and Key Metrics Changes - For the three-month period ended September 30, 2025, the company reported a net loss of $723,000, a significant improvement from a net loss of $1,638,000 in the same period of 2024, primarily due to the recognition of other income from a tax recovery of $1,257,000 [6][8] - For the nine-month period ended September 30, 2025, the company reported a net loss of $5,787,000 compared to a net income of $12,922,000 in the same period of 2024, largely due to two significant gains recognized in 2024 [7][8] - The company maintained a strong cash position with $13.7 million on hand at September 30, 2025, down from $16.9 million at the end of 2024 [8][9] Business Line Data and Key Metrics Changes - The completion of a new feasibility study for the Mount Todd Gold Project was a significant milestone, indicating a shift to a 15,000 ton per day operation with lower initial capital costs of $425 million [4][10] - The feasibility study projected stable gold production over a 30-year mine life, with a net present value of $1.1 billion at a gold price of $2,500 per ounce and $2.2 billion at $3,300 per ounce [11][13] Market Data and Key Metrics Changes - The company noted that the current gold price environment, with prices reaching $4,150 per ounce, significantly enhances project economics compared to the feasibility study's conservative price of $2,500 per ounce [24][27] - The Mount Todd Gold Project is positioned as one of the most attractive development-stage projects in the gold sector, benefiting from strong project economics and favorable jurisdiction [14][15] Company Strategy and Development Direction - The company is committed to developing the Mount Todd project in compliance with high mining and ESG standards, with ongoing modifications to existing permits to align with the new operational strategy [12][15] - The management is exploring various strategic options for advancing Mount Todd, including potential joint ventures or standalone development [27][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the intrinsic value of the Mount Todd project, projecting approximately $300 million in annual free cash flow at conservative gold prices [13][50] - The company believes it is in a favorable market to advance the Mount Todd project, with expectations of continued strength in gold prices positively influencing share performance [14][51] Other Important Information - The company achieved four years without a lost time accident at the Mount Todd site, emphasizing its commitment to safety and environmental stewardship [5][12] - The management highlighted the potential for significant shareholder value creation, suggesting that current share prices are undervalued relative to the project's projected net asset value [14][50] Q&A Session Summary Question: Insights on the project's benefits from current metal pricing - Management acknowledged that at a gold price of $4,150, project economics are substantially better than those discussed in the feasibility study, leading to increased interest from potential partners [24][27] Question: Reaction from the Jawoyn Association regarding the feasibility study - Management reported that the Jawoyn Association remains supportive of the Mount Todd project and is hopeful for timely development, benefiting economically from the project's success [30][31] Question: Number of confidentiality agreements signed post-feasibility study - Management confirmed that several new confidentiality agreements have been signed, indicating growing interest in the project, but did not disclose specific numbers [36][38] Question: Trade-offs between developing the project independently versus with a partner - Management discussed the significant trade-offs, noting that a joint venture could reduce dilution but would require giving up part of the project, while standalone development preserves full ownership but may involve higher financing costs [39][42]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $3.1 million, representing a growth of 23.5% compared to the prior year, driven by an 82% increase in product revenue and a modest 2% growth in services revenue [9][12] - Gross loss was $1.6 million, influenced by a $600,000 write-off of slow-moving inventory and higher material costs [10] - Operating expenses increased by nearly 13% to $7.9 million, primarily due to heightened investment in R&D for the K7 robot [10] - Net loss was $10 million, which was $1 million better than the previous year, with EPS at negative $0.98 compared to a loss of $3.58 in the prior year [12] - Cash balance improved significantly to $20.4 million from $5.3 million year-over-year [12] Business Line Data and Key Metrics Changes - Services revenue grew modestly by 2%, while product revenue surged by 82%, indicating a strong recovery from previous component shortages [9] - The ECD devices accounted for approximately 60% of overall revenue, with a focus on growing service revenue alongside product sales [104][108] Market Data and Key Metrics Changes - The company is experiencing uneven adoption in the robotics industry, which is still in its early stages despite excitement around the technology [8][72] - The company aims to penetrate existing markets and explore new ones with innovative technologies [8] Company Strategy and Development Direction - The company is overhauling its product delivery and manufacturing processes to prepare for the next phase of growth [9] - Three growth strategies were outlined: organic growth, new product development-led growth, and inorganic growth through mergers and acquisitions [40][42] - The K7 robot is set to begin limited series production in the second half of 2026, which is expected to enhance the company's market position [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, emphasizing the importance of execution and innovation for growth [38][76] - The company is focused on addressing the challenges of uneven adoption of robotics in the security sector and is working to educate potential clients [72][98] - Management acknowledged the need for a national robotics strategy to facilitate the adoption of robotics in government and other sectors [98] Other Important Information - The company is committed to maintaining compliance with the Buy American Act, ensuring that its products are designed and manufactured in the U.S. [58] - The company is actively pursuing government contracts, although progress has been hindered by government shutdowns [49] Q&A Session Summary Question: What is the company’s strategy for inventory management? - The company traditionally sold products first and then built them, but is shifting towards building inventory to meet demand more efficiently [21][29] Question: How does the company justify executive salaries given stock performance? - Management stated that stock price does not reflect company performance and that compensation is determined by the board based on performance and future potential [30] Question: What capabilities does the K7 have? - The K7 can reach speeds of up to 10 miles per hour and is designed for more challenging terrains, with ongoing R&D for off-grid capabilities [31][32] Question: What is the company doing to drive shareholder value? - The company is focused on execution, market penetration, and improving margins as part of its strategy to enhance shareholder value [37][38] Question: Are there any M&A opportunities being pursued? - The company is actively looking at M&A opportunities, particularly in software and human resources to enhance its technology and capabilities [42][43] Question: What is the company’s approach to government contracts? - The company has local, state, and federal contracts but faces challenges due to government shutdowns affecting progress [49] Question: How does the company plan to overcome the fear of robots? - Management emphasized the importance of communication and education to alleviate concerns about robotics [97][98] Question: What are the challenges in achieving the goal of 100-plus K5s in the field? - The primary challenge is adoption, as potential clients need time to become comfortable with new technologies [90]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $15.5 million, an increase of $1.2 million or 8.4% compared to Q3 2024 [13] - Year-to-date revenue increased by $2.8 million or 7% to $42.2 million [13] - Operating expenses for Q3 2025 were $12.6 million, up $2.3 million or 21.9% from Q3 2024 [13] - Net income for Q3 2025 was $1.7 million or $0.06 per diluted share, down from $2.9 million or $0.12 per diluted share in Q3 2024 [16] - Adjusted EBITDA for Q3 2025 was $7.8 million, a decrease of $0.4 million or 5% from Q3 2024 [17] Business Line Data and Key Metrics Changes - Total active service connections increased by 6.6% to 68,130 as of September 30, 2025 [9] - The annualized total active service connection growth rate, excluding the Tucson acquisition, was 3.3% [9] - The single-family dwelling unit market in the Phoenix area saw a 29% decrease in building permits in Q3 2025 compared to Q3 2024 [10] Market Data and Key Metrics Changes - The City of Maricopa was ranked sixth among the fastest-growing large municipalities in the U.S., with a population growth of 7.4% in 2024 [8] - The Highway 347 expansion project is expected to begin construction in fiscal year 2026, which will support the growth of the City of Maricopa [6] Company Strategy and Development Direction - The company aims for long-term value creation and strong total returns to shareholders through strategic acquisitions and infrastructure investments [4] - The Tucson acquisition is expected to generate around $1.5 million in annual revenue and is seen as immediately accretive [5] - The company is focused on integrating the newly acquired Tucson water systems and executing capital investment strategies [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as high inflation impacting earnings growth but remains optimistic about future growth drivers [11] - The company expects a fair outcome from the ongoing rate case, which is anticipated to conclude in mid-2026 [19] - Management believes the new water legislation will drive growth in service areas and improve aquifer sustainability [5] Other Important Information - Year-to-date capital investments totaled $49.6 million for infrastructure improvements [9] - The company is in the middle of the rate case process, with further steps including formal written testimony and a hearing [18] Q&A Session Summary Question: Rate case completion timeline - Management confirmed that the rates are expected to change by mid-2026, potentially around July 1 [24] Question: Ag to Urban program impact - Management explained that the program allows for the conversion of agricultural water rights to municipal water supply without the need to purchase or lease rights, benefiting aquifer sustainability [26][28] Question: Regulatory proposal differences - Management clarified that the significant difference in proposed rates is due to ongoing processes and the inclusion of post-test year plant [32][33] Question: Expected rate base figure - Management confirmed that the expected rate base figure is still valid but not reported in quarterly financials [34][35]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 2.5% to $7.2 million compared to $7 million in Q3 2024 [16] - Year-to-date revenues increased by 5.6% to $20.4 million compared to $19.3 million in the first nine months of 2024 [18] - Adjusted EBITDA for Q3 2025 was $1.9 million, a 42% increase from $1.3 million in Q3 2024 [9][18] - Gross margins improved to 22.1% in Q3 2025, with a 60% year-over-year increase to $1.6 million [18] Business Line Data and Key Metrics Changes - Revenue from direct patient services increased by 9.4% to $4 million in Q3 2025, driven by increased procedures at the new facility in Puebla, Mexico [16] - Gamma Knife revenue increased by 16% year-over-year to $2.1 million in Q3 2025, with the number of procedures rising to 231 from 218 in Q3 2024 [17] - Revenue from the medical equipment leasing segment decreased to $3.1 million from $3.3 million in Q3 2024 due to lower proton beam radiation therapy volumes [16] Market Data and Key Metrics Changes - The new radiation therapy treatment center in Puebla, Mexico showed a remarkable 263% annual revenue growth [8] - The company expects continued growth in treatment volumes, particularly in Rhode Island, as new radiation oncologists engage with the healthcare community [10] Company Strategy and Development Direction - The company is transitioning from a medical equipment leasing focus to a more patient-centric service model, which is expected to enhance long-term shareholder value [4][5] - The acquisition of three Rhode Island cancer treatment centers and the new center in Puebla, Mexico are seen as significant growth opportunities [10] - Plans to construct a fourth radiation therapy center in Bristol, Rhode Island, and the first proton beam radiation therapy center in the state are underway, representing major growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth strategy and the ability to weather short-term fluctuations [13] - The management team is focused on operational efficiencies and building momentum as growth strategies take hold [35] Other Important Information - The company entered Q3 2025 with cash and cash equivalents of $5.1 million, down from $11 million at the end of 2024, reflecting capital expenditures for expansion [22] - Shareholders' equity was $24.6 million, or $3.78 per outstanding share, compared to $25.2 million, or $3.92 per share at the end of 2024 [23] Q&A Session Summary Question: Concerns about shareholder value and investor outreach - A shareholder expressed concerns about the company's market cap relative to its EBITDA and suggested increased investor outreach [26] - Management acknowledged the need for more outreach and recognized the importance of communicating the company's progress to shareholders [28] Question: Disconnect between market valuation and company performance - Another investor questioned why the stock is trading at a 52-week low despite positive results and growth prospects [30] - Management attributed this to thin trading and lack of exposure, agreeing that increased outreach is necessary [32]

Financial Data and Key Metrics Changes - Revenue grew 272% year-over-year to $1.45 million, the strongest quarter yet, reflecting accelerating adoption of AI-driven solutions [7][12] - Gross profit increased 1,070% year-over-year to $720,000, indicating margin expansion from higher recurring revenue [12] - Net loss for the quarter was $2.06 million compared to a loss of $1.72 million last year, as the company continued to invest in growth [12] Business Line Data and Key Metrics Changes - Hardware sales increased 144%, remote guarding revenue rose 154%, and cloud subscriptions expanded 142% [13] - Properties serviced grew 83%, and installation and other services increased 790%, demonstrating scaling across customers and products [13] Market Data and Key Metrics Changes - The company signed approximately $4.79 million in contracts through the end of September, more than triple the total of $1.5 million for all of 2024 [7] - September was the strongest month in the company's history, with over $1 million in new contracts signed [7] Company Strategy and Development Direction - The company focuses on expanding its AI-driven security solutions, emphasizing proactive systems that detect and prevent incidents in real-time [6][10] - A customer financing program was launched to help large property operators modernize their security infrastructure without upfront costs, facilitating multi-site rollouts [9] - The introduction of new compression technology reduces bandwidth consumption by up to 50%, supporting more cameras per device and improving video quality [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and long-term value creation strategy, reinforced by a $5 million share repurchase program [11] - The company is well-positioned with over $6 million in cash at quarter end, allowing for continued investment in growth and innovation [11][12] - Management highlighted a strong operational execution and a focused vision, achieving record revenue and industry recognition [37][38] Other Important Information - The company processed over 8 million videos per day, indicating strong operational leverage and positioning for continued margin improvement [8] - The company received the PropTech Breakthrough Award for its Alpha Mobile Surveillance Trailer, showcasing innovation in AI-driven security solutions [10] Q&A Session Summary Question: Expectations for revenue recognition from contracts signed - Management explained that contracts signed include hardware, installation, and service components, with revenue recognized as installations are completed and SaaS components recognized over 12 months [18][19] Question: Growth rates and attach rates for remote guarding - Management noted that remote guarding has become a significant part of service revenue, with an increasing attach rate as customers recognize its value [22][23] Question: Expansion plans with existing customers - Management indicated that they are in the second or third inning of expansion with existing customers, seeing continued acquisition of new logos and expansion within current portfolios [25][27] Question: Installation capacity and servicing demand - Management confirmed that they utilize a network of third-party installers to meet demand and are expanding this network to ensure timely installations [29][31]

Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $7 million, a decline of $92,000 compared to the same quarter last year [3] - Revenue in the verification and certification segment grew by 1% to $5.6 million, driven by increased activity across the portfolio [3] - Net income increased to $1.1 million or $0.22 per share, compared to $500,000 or $0.09 per share a year ago [5] - Operating income was $575,000, down from $608,000 in the previous year [5] - Cash and cash equivalents rose to $4.8 million from $2 million at the end of 2024, with no debt reported [6] Business Line Data and Key Metrics Changes - Hardware sales declined to $1.2 million from $1.3 million year over year, attributed to lower tag volumes due to herd shrinkage [4] - Customer retention rates remained well above 90%, contributing to revenue stability [4] - The Care Certified program and certification activities for organic, non-GMO, gluten-free, and upcycled products all showed gains [4] Market Data and Key Metrics Changes - The company reported strength in various service offerings, which offset the impact of smaller herd sizes on core beef-related verification activities [3] - The company was ranked 74th in Time Magazine's America's Growth Leaders 2026, highlighting its position among innovative public companies [8] Company Strategy and Development Direction - The company aims to remain at the forefront of the trend for verified sourcing, addressing consumer demand for transparency in food origins [8] - There is a focus on innovation with new services expected to become meaningful revenue streams, including a labeling program that has gained traction [9] - The company is exploring new growth areas and technologies, including AI initiatives to improve efficiency and customer service [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as tariffs, inflationary pressures, and smaller herd sizes impacting verification and hardware revenue [5] - There is cautious optimism regarding a potential build-up in cattle herds, although challenges remain due to border issues and drought conditions [12][13] - The company is positioned as a growth company, actively seeking opportunities to invest in new companies and technologies [25] Other Important Information - The sale of Progressive Beef generated cash proceeds of $1.8 million, contributing to a stronger balance sheet [6] - The company has returned over $14 million in value to shareholders through stock buybacks since the program's inception [6] Q&A Session Summary Question: When will product revenue see a material pickup relative to herd size growth? - Management indicated that cattle prices are starting to support herd rebuilding, but challenges remain due to border closures and other issues [12][13] Question: What other businesses and programs are expected to grow in the next year or two? - Management highlighted growth in dairy, poultry, and organic certification, as well as the unique position in upcycled certification [20] Question: How does the company view its capital structure and future growth? - Management confirmed the company is a growth-oriented entity, looking for opportunities to invest and expand while maintaining a strong balance sheet [25]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $0.46 per share, unchanged from the prior quarter, resulting in an annualized NII yield of 9.5% [5][20] - Net asset value (NAV) decreased to $19.28 per share as of September 30, down from $19.55 per share as of June 30, primarily due to unrealized and realized losses from certain portfolio companies affected by tariffs [5][20] Business Line Data and Key Metrics Changes - The investment portfolio totaled approximately $1.6 billion at fair value, with 187 companies, and an average investment size of about 0.6% of the total portfolio [7] - The portfolio consists primarily of first-lien loans, representing 90% of the portfolio at fair value [7] - The weighted average yield of income-producing securities at cost remained stable at 10.4% [14] Market Data and Key Metrics Changes - The macroeconomic environment in the U.S. remains resilient, with expectations of near-term growth in loan activity due to recent Federal Reserve rate cuts and clarity on tariff policies [6] - The company has no exposure to recent bankruptcies, indicating a focus on governance by working with established private equity sponsors [6][8] Company Strategy and Development Direction - The company is focused on strong cash flow generation, tight EBITDA definitions, and enhanced monitoring rights to proactively manage the portfolio [6] - The board declared a regular dividend of $0.42 per share for the fourth quarter, representing a 9% and 12% annualized dividend yield based on NAV and stock price, respectively [8][24] - The company anticipates that a lower base rate environment may gradually reduce portfolio yields and pressure net investment income, but believes it is well-positioned to address these challenges [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the company, citing a strong capital structure and diversified portfolio [25] - The company noted that while tariff impacts have been identified, the overall portfolio remains resilient, with most borrowers experiencing steady revenue and EBITDA growth [17][18] Other Important Information - The company ended the quarter with a net debt to equity ratio of 1.20 times, providing flexibility for portfolio growth [10] - The weighted average interest coverage of the companies in the investment portfolio was stable at 2.1 times, indicating strong earnings durability [14] Q&A Session Summary Question: What is the probability of maintaining NII coverage of the dividend at 100% or more? - Management believes that available levers will allow them to cover the base dividend with NII in the near term, with potential for increased non-interest-related income [27][28] Question: Has the ability of exposed companies to handle tariffs deteriorated? - Management indicated that overall, companies have responded well to tariff pressures, although two specific companies have shown a need for a longer recovery period [30][32] Question: What is the state of competition in the lower-middle market? - Management acknowledged spread compression in the market but emphasized that they are still able to secure high-quality transactions with appropriate risk-adjusted returns [34][36] Question: What drove the increase in spreads on new investments? - The company has maintained new origination spreads around 500 over SOFR, driven by a mix of incremental activity from existing portfolio companies and opportunities in specific market segments [41][42] Question: Are there any non-recurring items in earnings this quarter? - Management confirmed that there were no significant non-recurring items, with core interest income representing the majority of total revenue [51]

Financial Data and Key Metrics Changes - Pro forma revenue for Q3 2025 increased to $205.5 million, up 8% compared to the previous quarter, driven mainly by increased volumes and rates [16] - Combined produced water handling volumes for the quarter were 2.5 million barrels per day, representing quarter-over-quarter growth of 7% [16] - Pro forma net loss was $18.7 million for the third quarter, with pro forma adjusted EBITDA of $105.7 million and an adjusted EBITDA margin of 51% [16][18] Business Line Data and Key Metrics Changes - Produced water handling comprises approximately 90% of the company's revenue, derived from fixed-fee contracts for transportation, treatment, handling, and disposal [8] - The water solutions business, including fees from sales of brackish water and waste management, contributes the remainder of the revenue [9] Market Data and Key Metrics Changes - The company operates primarily in the Delaware Basin, the most prolific oil and natural gas basin in North America, with a network of approximately 2,500 miles of pipeline and nearly 200 produced water handling facilities [6][8] - The demand for water handling services is expected to grow significantly, particularly in New Mexico, as recycling capacity declines and produced water volumes increase [25] Company Strategy and Development Direction - WaterBridge aims to capitalize on its strong balance sheet and proven business strategy to meet the growing needs of customers in the water infrastructure sector [5] - The company is focused on expanding its infrastructure network and commercial relationships while maintaining a conservative balance sheet [18] - WaterBridge is exploring opportunities to serve a wider range of industries, including data center cooling and beneficial reuse of produced water [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth despite macroeconomic volatility, citing long-term contracts and minimum volume commitments as key factors [24] - The company anticipates providing 2026 guidance during the fourth quarter and full year 2025 earnings call [18] Other Important Information - The company completed a successful IPO in September 2025, raising approximately $673 million to strengthen its balance sheet [16] - WaterBridge has secured significant access to pore space through partnerships with LandBridge and Texas Pacific Land, which supports future growth in produced water handling capacity [10] Q&A Session Summary Question: Demand for Speedway Pipeline project - Management noted strong demand for the Speedway Pipeline project, with the potential to add an additional 500,000 barrels per day capacity [21][22] Question: Macro backdrop and growth expectations - Management indicated that the company is well-insulated from broader market volatility, with growth underpinned by minimum volume commitments [24] Question: Competitive landscape and customer discussions - Management highlighted strong traction with producers, emphasizing the importance of partnerships with experienced operators and access to differentiated pore space [30] Question: Contract rate outlook - Management reported meaningful increases in rates for recent deals, reflecting the value of premium flow assurance [31] Question: Regulatory reforms in Texas - Management expressed confidence in their relationship with the Railroad Commission and noted that recent regulatory changes have not negatively impacted the company [40][41] Question: Data center opportunity - Management acknowledged the potential for significant demand from data centers and the company's advantageous position due to its infrastructure and expertise [45][46]

Financial Data and Key Metrics Changes - For Q3 2025, total net revenues were reported at $40.4 million, with a net loss attributable to controlling shareholders of $0.7 million, equating to a loss of $0.24 per share. Adjusted net loss was $0.6 million or $0.23 per share. Adjusted EBITDA for the quarter was $4.1 million [3][4][21] - For the first nine months of 2025, total net revenues were $34.9 million, representing a 25% decrease from $46.6 million in the same period of 2024. Adjusted EBITDA for this period was $5 million, down from $7.6 million in 2024 [23][24] Business Line Data and Key Metrics Changes - The company operated an average of 12 vessels in Q3 2025, earning an average time charter equivalent rate of $13,232 per day, compared to 13 vessels earning $13,105 per day in Q3 2024. The commercial utilization rate was 100% [25][26] - Daily cash flow break-even level for Q3 2025 was $12,482 per vessel, down from $15,145 per vessel in Q3 2024 [26] Market Data and Key Metrics Changes - Panama export rates increased from approximately $14,500 per day to $14,950 per day by the end of Q3 2025, with spot rates for Panamax vessels rising to around $15,500 per day as of November 7 [7][8] - The Baltic Dry Index and Baltic Panamax Index recorded year-over-year increases of approximately 6% and 14%, respectively, indicating a better market compared to the previous year [8][11] Company Strategy and Development Direction - The company plans to continue executing share repurchases under its $10 million plan, which has been extended for an additional year, while also modernizing its fleet in preparation for future market conditions [4][18] - The company is focusing on securing longer-term coverage when rates reach between $15,000 and $17,000 per day [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall market remains uncertain due to geopolitical developments, but there are signs of recovery in the dry bulk sector, supported by strong demand for minor bulks and robust grain trade flows [15][16] - The IMF projects global growth to ease slightly, with persistent trade tensions and policy uncertainty impacting investment and trade activity [9][10] Other Important Information - The company has two Ultramax vessels under construction, scheduled for delivery in 2027, which will expand the fleet to 13 vessels with a total carrying capacity of just under 900,000 deadweight tons [6] - As of September 30, 2025, the company's debt stood at $97.9 million, with a repayment schedule indicating $13.1 million in repayments for 2025 [28][30] Q&A Session Summary Question: What is the threshold for shifting from short-term index-linked exposure to securing longer-term coverage? - Management indicated that they would consider longer-term coverage if rates reach around $15,000 to $17,000 [32] Question: What is the timeline for the extra RENI vessel? - The extra RENI was fixed for a trip via South America and back to the Far East, expected to take about 90-100 days at a rate of approximately $16,500 per day [33] Question: What are the plans for improving near-term liquidity? - Management highlighted improved liquidity due to the sale of the Irini vessel and financing arrangements for new buildings, projecting a liquidity increase of over $15 million by year-end [35] Question: Can you clarify the new build financing and incremental debt? - Management confirmed that approximately $53 million in debt would be drawn to finance the two new buildings by their delivery in 2027 [37] Question: What is the outlook for rates on specific vessels? - Management explained that rates can vary significantly based on the type of voyage, with higher rates expected for voyages from the Atlantic to the Far East [38]