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Kelso Technologies Inc. Financial Results for the Year Ended December 31, 2024
KIQKelso(KIQ) GlobeNewswire·2025-03-26 04:55

Core Viewpoint - Kelso Technologies Inc. reported its audited consolidated financial statements for the year ended December 31, 2024, highlighting a decrease in revenue but an increase in gross profit margin, alongside significant losses due to one-time expenses and challenges in tank car demand [1][2][6]. Financial Performance Summary - Revenues for FY2024 were 10,680,468,adecreaseofapproximately210,680,468, a decrease of approximately 2% from 10,819,916 in FY2023 [4][6]. - Gross profit increased to 4,693,632inFY2024from4,693,632 in FY2024 from 4,582,447 in FY2023, resulting in a gross profit margin of 44%, up from 42% [4][6]. - Total expenses, including non-cash items, rose to 9,315,929inFY2024from9,315,929 in FY2024 from 6,684,333 in FY2023 [4]. - The net loss for FY2024 was 4,622,297,comparedtoalossof4,622,297, compared to a loss of 2,101,886 in FY2023 [4][7]. - Adjusted EBITDA loss for FY2024 was 1,249,326,worseningfromalossof1,249,326, worsening from a loss of 845,487 in FY2023 [4][7]. Liquidity and Capital Resources - As of December 31, 2024, cash on hand was 153,147,downfrom153,147, down from 1,433,838 in FY2023 [8]. - Working capital decreased to 2,125,386from2,125,386 from 5,026,580 in FY2023 [8]. - Total assets were 6,570,345,adeclinefrom6,570,345, a decline from 9,703,271 in FY2023 [8]. - The company obtained a line of credit of 500,000,with500,000, with 250,000 drawn down in Q1-2025 [8]. Outlook - The company anticipates flat to slightly positive sales growth of 0% to 5% for FY2025, focusing on cost discipline in preparation for increased tank car builds expected in 2026/2027 [9][10]. - Kelso is pursuing full Association of American Railroads (AAR) approval for its Bottom Outlet Valve and Angle Valve, which could open new revenue streams [11]. - Tank car deliveries are projected to improve slightly, with an expected increase to 10,325 units in 2025, representing a 15.8% increase over the 2021-2023 average [12]. Discontinued Operations - The KXI project has been classified as discontinued operations, with significant losses reported and a reassessment of its carrying value leading to a reduction in capitalized R&D to a nominal 1[13][14].−ThenetlossfromdiscontinuedoperationsforFY2024was1 [13][14]. - The net loss from discontinued operations for FY2024 was 2,969,442, compared to $1,983,789 in FY2023 [14]. Summary - The company is positioned for new value creation with no long-term debt and improved sales prospects from diverse markets, aiming to enhance equity value through financial performance and new proprietary products [15].