Tecogen Inc.

a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Jack Whiting, General Counsel. Please go ahead, Jack.

Good morning. This is Jack Whiting, General Counsel and Secretary of TKGEN. This call is being recorded and will be archived on our website at tkgen.com. The press release regarding our first quarter 2025 earnings and the presentation provided this morning are available in the investor section of our website as well. I would like to direct your attention to our safe harbor statement included in our earnings press release and presentation. Various remarks that we may make about the company's expectations, plans, and prospects constitute forward-looking statements for purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by forward-looking statements as a result of various factors, including those listed in the company's most recent annual and quarterly reports on foreign 10K and form 10Q under the caption risk factors filed with the SEC and available in the investor section of our website under the heading SEC filings. While we may elect to update forward-looking statements, we specifically disclaim any obligation to do so, so you should not rely on any forward-looking statements representing our views as of any future date. During this call, we will refer to certain financial measures not prepared in accordance with generally accepted accounting principles or CAP. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is provided in the press release regarding our first quarter of 2025 earnings and on our website. I will now turn the call over to Abhinav Rangesh, TCAGEN's CEO, who will provide an overview of first quarter 2025 activity and results, and Roger Deschenes, TCAGEN's CAO, who will provide additional information regarding first quarter 2025 financial results. Abhinav.

Thank you, Jack. Welcome to TicoGen's Q1 2025 earnings presentation. So far this year, we've seen some exciting developments at TicoGen. Before Roger gives us a rundown of the financials, I want to provide a few key updates. Our uplisting and the benefits this brings to shareholders, how the data center strategy is going, and what the new tariff environment means for TicoGen. In addition to the strategic moves, we also saw improved financial numbers across the board. Our revenue for the quarter increased 17.6% to 7.3 million, slightly ahead of our forecast. Our adjusted EBITDA loss narrowed from 900,000 to 381,000. Our gross profit margin also increased from 41.6% to 44.3%. The adjusted EBITDA loss would have been even lower, likely less than 200,000, but we needed to incur some additional operating expenses essential to position us to ramp up for the anticipated data center orders. This resulted in increased R&D expenses, recruiter fees for strategic hires, and professional fees for the uplist. As many of you have seen, we have successfully uplisted from the OTCQX to the NYSE American Stock Exchange. This is a huge milestone for us. The uplisting enables more shareholders to easily purchase our stock and can already be seen by the increased daily trading volume. One of the questions I regularly get from shareholders is why the company hasn't seen more growth in the past despite having great technology. I believe there was one missing ingredient. That was finding a market where the dollar per project is large. This means that even if it takes longer and there are more complex sales cycles, the time invested can still provide a good return. The data center market provides this missing ingredient. However, executing the strategy requires employees at every level of the company to deliver. Some of this is dependent on providing the right incentives. And I believe having a stock that is growing and having stock options that are liquid is critical in that regard. The uplist to the NYSE American achieves this. Before I provide an update on how the data center strategy is going, I want to recap the problem facing AI data centers and why our solution offers such a compelling benefit. As the power density of AI chips has increased, The need for cooling has also increased. The cooling system for a data center needs to be designed for the worst case scenario. For example, when it's 120 degrees Fahrenheit outside and all the AI chips are operating at full capacity. This means that a 300 megawatt data center might need to allocate up to 100 megawatts of their available power to the cooling system. Even if they use the cooling system for only parts of the year. Since you never know when you'll need the full cooling capacity, once this power is allocated, it can't be used for other more useful loads like AI chips and computing. Given that computing is the primary revenue source for a data center, every bit of additional power that can be used for the chips directly impacts a data center's bottom line. Currently, most data centers use an electrical cooling system. By switching to our high efficiency advanced natural gas chillers, data centers can increase the amount of power they have available by 30% or more. If you could unlock, for example, 100 megawatts or more in a larger data center, this could be substantial. To put this in context, This is equivalent to the combined power used by more than 200 high-rise buildings in Manhattan. Best of all, our solution can even be retrofitted to an existing data center. As hyperscalers attempt to find the fastest way to roll out AI data centers, unlocking power in an existing data center may provide ways to future-proof the data center as chips become more powerful or or available capacity needs to increase quickly. How does our TECOchill compare versus the alternatives? Compared to the nearest other gas cooling technology called an absorption chiller, TECOchill consumes half the amount of gas for the same amount of cooling provided. TECOchill has also been proven in many critical cooling applications, including hospitals, ice rinks, and cannabis growing facilities. Most absorption chillers are manufactured overseas. This means that in the current tariff environment, absorption chillers are likely to subject to significant tariffs. Compared to the conventional alternative, which is an electric chiller, not only do our chillers free up significant amounts of available power, our solutions operating costs can be 50% lower than the electric chiller. Even if a customer decides to build their own power generation onsite, the installed cost per kilowatt is 50% lower if they use TicoChill versus building onsite power generation. Therefore, compared to all the alternatives, TicoChill offers some very compelling benefits. In addition to our Vertiv partnership, Our own marketing and networking efforts are starting to result in interest for much larger projects. We have now quoted multiple larger projects, much larger than ever before. Having been on some of the sales calls, every one of the prospective customers has immediately grasped the compelling benefit. The main challenge we're presently facing is convincing customers to do something different from business as usual. This is common in the adoption of new technologies, even though we have ample proof points from critical cooling applications in other industries. We're presently working with prospective customers on approaches to mitigate any perceived risk, including redundancy and choosing the right projects where power constraints are more acute. Given that some of these projects might require significant ramp up of our supply chain, we are asking customers for letters of intent so we can start working with our suppliers to ensure we can hit delivery times required. The Vertiv relationship is also making great progress. A project manager from Vertiv has been assigned to manage the TicoChill launch through Vertiv's new product introduction process. This includes generation of marketing material and sales training. We have already seen sales leads from the Vertiv team but you'd see further activity in the upcoming months as the new product introduction process proceeds. Therefore, I'm very optimistic that the Vertiv relationship will be successful. I know many shareholders are wondering how exposed Tinkogen is to tariffs. We are predominantly a domestic manufacturer. We have contacted all our major vendors and don't anticipate any meaningful impacts as a result of tariffs. This is particularly true for the DTX chillers, which are likely to be our product most used by data centers. The most impacted components are circuit boards and electronics, which make up a small percentage of our overall costs. The only meaningful components likely affected are permanent magnet generators used in our inverters, mainly due to export controls from China. We have sufficient inventory presently to handle anticipated orders in 2025 while we obtain the relevant permissions. I believe the tariffs may give us a competitive advantage. As already discussed, other gas cooling technologies are facing big tariffs. Our systems were already ahead of the competition due to our increased efficiencies. Now with tariffs, absorption chillers are at a further disadvantage. The tariffs may also have knock-on effects on long lead time equipment like electrical switchgear. Our ability to alleviate power constraints quickly and being a domestic manufacturer is likely to be more of an advantage than ever. Backlog and cash. The backlog is presently at $10.8 million, including the $2 million Las Vegas prepaid service contract. We expect $2 million of non-data center projects to enter the backlog in the next couple of months. As mentioned earlier, we are quoting some very large chiller projects, but the timing of these closing is uncertain. Combined with Vertiv's marketing, I am very confident we will be successful in securing some of these larger orders. Therefore, I would caution shareholders not to expect linear increases in backlog since a single data center order will fundamentally change our backlog number. Our current cash position is $3 million, following material purchases to increase product revenue and roll out engine improvements to the service fleet. Our engine improvements are resulting in 50% longer intervals between oil changes, but require cash investments to complete. Our balance sheet is also stronger today, since we have no maturing short-term debt. This means our cash allocation can go towards increasing revenue and capacity. I'll now hand over to Roger to take us through the financials.