Tecogen Inc.

Greetings. Welcome to TicoGen Third Quarter 2025 Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jack Whiting, General Counsel. Thank you, sir. You may begin.

Good morning. This is Jack Whiting, General Counsel and Secretary of TicoGen. This call is being recorded and will be archived on our website at TicoGen.com. The press release regarding our third quarter 2025 earnings and the presentation provided this morning are available in the investor section of our website. I'd like to direct your attention to our safe harbor statement included in our earnings press release and presentation. Various remarks that we make about the company's expectations, plans, and 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 discussed in the company's most recent annual and quarterly reports on Forms 10-K and 10-Q, under the caption, Risk Factors Filed to the Securities Exchange Commission, and available in the Investors section of our website under the headings SEC Files. 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 that represent 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 GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is provided in the press release regarding our Q3 2025 earnings and on our website. I will now turn the call over to Avnan Rangesh, TKGEN CEO, who will provide an overview of third quarter 2025 activity and results. And Roger Deschen, TKGEN CFO, will provide additional information regarding Q3 2025 financial results.

Avnan. Thank you, Jack. Welcome to our Q3 2025 earnings presentation. In the last three months, we have seen significant forward momentum on our data center strategy. A year ago, When we started this pivot into data center cooling, most of the leads were from independent developers. Now the level of interest has ramped up substantially. We're getting interest from well-known co-location data center developers. We have now presented our solution to NVIDIA, AMD, and hyperscale developers. Across the board, the feedback has been positive. Given the level of interest, I'm now very confident that TikaGen will be successful in this market. During this call, I'll explain what some of the bigger developers are asking of us, the validation steps, and give some clarity on the path forward. The verge of relationship is a key part of this strategy, so I'll explain how this fits in as well. Our initial leads in data centers were from independent developers. For example, companies in conventional real estate pivoting into data centers or former data center executives who had started their own companies. These developers were initially more open to new ideas such as our chillers. One of these developers gave us the LOI for six STX chillers I mentioned last quarter. Over the last three months, The developer has come to visit TicoGen, see our customer sites, and as a result is now looking to include us on three of their projects as part of their main AI cooling load. This could mean sales of many more chillers than contemplated by the LOI. The total combined IT capacity in the initial phase of the build-out is likely to exceed 200 megawatts and substantially more than that over time. The developer is in active discussions with potential tenants, and given the power constraints across the country, we believe this developer is likely to be successful. The other projects I mentioned last quarter are also at various stages of either obtaining financing or tenants, but are moving along. What is more exciting is that we have started to attract the attention of big name developers who are well established in the industry, including those with multiple AI data centers already constructed or in construction. As we've presented and listened to developers, hyperscalers, and chip companies, it has become clear that the current methods of cooling a data center create numerous problems that we can solve. For those of you who are new shareholders, I'd like to reiterate the value proposition that EcoGen offers to data centers. As chips have become more powerful, they need more cooling, and cooling systems must be designed for the worst case, the hottest day with full AI load. In some parts of the country, this can be 120 degrees Fahrenheit or more. When you design for the peak, you tie up a lot of power since you don't know when you'll need to turn on the cooling system. In the past, this wasn't a big problem, but with the latest AI chips, electric cooling could consume 25% to 35% of a data center's total power. And the power requirements are only increasing. If you move all or part of the cooling to natural gas, data centers have more power for IT, increasing their potential revenue. I know that many of you may have heard of data center cooling technologies such as liquid cooling immersion cooling, et cetera. All of these technologies are targeted at what happens inside the data centers. All these technologies still connect to chillers like ours to reject the heat, which today are powered by electric chillers requiring substantial amounts of power. Our chillers can interface with any of these liquid cooling or immersion cooling options. The graph on the left shows how much power allocated to cooling nearly doubles based on the hottest design day. This means that in Texas, a 100-megawatt data center today is allocating 35 megawatts to cooling. There's also a secondary problem for some of the bigger data centers. One of the reasons we've started to get interest from hyperscale developers is that some of them are using on-site power generation. They tell us that due to their cooling requirements, they add additional power generation capacity that sits idle for much of the year. Because gas turbines are in short supply, data center developers would rather redeploy these idle gas turbines at the next data center. These developers have also told us that the cost of adding our chillers is less than half the cost of adding an equivalent amount of power generation. The reason for this is because significant additional infrastructure is required to support gas turbines, whereas our chillers can be a direct replacement for electric chillers, reducing the need for electric power for cooling. Most data center developers we have spoken to are considering using our chillers for 30 to 50% of the data center's cooling load. Our chillers will operate on natural gas above a certain temperature threshold, so the data center can cap the power allocated for cooling. In order for these established developers to use our chillers, there is a validation process. This requires providing test data, computer modeling of performance of various parameters, and other information. Although many of these developers understand that we are a smaller company and will need time to ramp up, manufacturing capacity is a key parameter that we need to satisfy. To address manufacturing capacity, we have already been making factory layout changes to increase throughput. We have begun working with contract manufacturers and expect to get the first articles for sheet metal assemblies for the dual power source chiller before year-end. However, this is only one pathway to manufacturing capacity. And currently, we have been working with Vertiv as a secondary pathway for increasing manufacturing. I understand that shareholders may be concerned that the Vertiv-Tingogen relationship has been slow to date. This has changed substantially in the last month. Vertiv has tasked the head of their U.S. chilled water group to lead the partnership. As a result, we have seen significant forward momentum. Although I can't get into specifics, we are working on multiple avenues to jointly sell and scale out our natural gas solutions to these larger developers and satisfy their validation requirements. Based on conversations with these larger developers, the AI chip companies, and hyperscalers, I am now confident on the scale of the opportunity and the value our chillers bring. Many of these developers need hundreds of chillers a year. and all of them have confirmed the benefits. Our current backlog is approximately 4 million, and it's predominantly cannabis cultivation, and the Las Vegas Convention Center 10-year service contract. We're expecting some multifamily projects and some other projects in cannabis to close later this quarter or early next year. But given that we are now getting interest from some of the well-known developers in data centers, our focus needs to go on securing initial projects from them. If we can do that, more projects from other developers will follow suit. From there, there are multiple strategic options to turn our opportunities in the data center market into value for TicoGen shareholders. As a technology company of our size, we also don't need the broader AI market to grow at billions of dollars a year to generate value for our shareholders. A single 200 megawatt data center uses 100 to 200 electric chillers. To put that into context, the Las Vegas Convention Center order was just seven of our bigger chillers. We're working on technology improvements that provide test data and engineering support and building chiller inventory for potential data center projects. We've also made several improvements to our engine platform so that we can double our service intervals and provide better performance of higher engine companies. To get essential data for continued product improvement and to reduce the impact of higher labor costs in certain territories like New York City, we invested $700,000 into new engines for the service fleet. This disproportionately reduced our service margin because we expense engines, but will have a beneficial effect on profitability medium and long term. It also provided much-needed data for continued R&D. Our current cash position is approximately $14 million, but we're expecting to collect $2.5 million in the next few weeks. We also repaid the related party note, so we have no debt on the balance sheet. I'll now hand over to Roger to take us through the financials.