Financial Performance - For the three months ended March 31, 2024, the company reported revenues of 2,459,958 in the same period of 2023, representing an 8% growth [3] - Gross profit for the same period was 1,086,568, with a gross profit margin of 42%, down from 44% [3] - The company recorded a net loss of 786,677 in the prior year [3] - Adjusted EBITDA loss improved to (531,618) year-over-year [3] Liquidity and Capital Resources - As of March 31, 2024, the company had cash on deposit of 1,433,838 at the end of 2023 [6] - Accounts receivable decreased to 1,065,411, while inventory increased to 3,376,005 [6] - The working capital position was 5,026,580 at the end of 2023 [7] - Total assets increased to 9,703,271, while net assets decreased to 8,720,248 [8] Industry Outlook - The rail tank car industry is expected to experience slow growth, with deliveries aligning with replacement demand levels [11] - Tank car deliveries are forecasted to range from 7,000 to 10,000 units in 2024, continuing at this level through 2025 [13] - The company aims to secure full AAR approvals for its rail pressure car products in 2024, which is crucial for revenue growth [9][15] - The company is positioned to service the rail tank car market, which consists of approximately 86,000 tank cars, presenting a significant financial growth opportunity [15] Automotive Innovations - The company is developing an Advanced Driver-Assistance System (ADAS) designed for commercial wilderness travel, with a focus on safety and operational efficiency [16][19] - A pilot production facility has been established to convert heavy-duty vehicles using proprietary technologies, expected to generate approximately 80 billion by 2030 [20]
Kelso Technologies Inc. Financial Results for the Three Months Ended March 31, 2024