FuelCell Energy, Inc.

and our earnings press release on our quarterly report on form 10Q are available in the investor section of our website at www.fuelcellenergy.com. Consistent with our practice, in addition to this call and our earnings press release, we have posted a slide presentation on our website. This webcast is being recorded and will be available for replay on our website approximately two hours after we conclude the call. Before we begin, please note that some of the information that you will hear or be provided with today will consist of forward-looking statements within the meaning of the Securities and Exchange Act of 1934. Such statements express our expectations, beliefs, and intentions regarding the future and include, without limitation, statements with respect to our anticipated financial results, our plans and expectations regarding the continuing development, commercialization, and financing our fuel cell technology, and our business plans and strategies. Our actual future results could differ materially from those described in or implied by such forward-looking statements because of a number of risks and uncertainties. More information regarding such risks and uncertainties is available in the Safe Harbor Statement in the slide presentation and in our filings with the Securities and Exchange Commission, particularly the risk factor section of the most recently filed annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. During the course of this call, we will be discussing certain non-GAAP financial measures, and we refer you to our website and to our earnings press release and appendix to the slide deck presentation for your reconciliation of those measures to GAAP financial measures. Our earnings press release and a copy of today's webcast presentation are available on our website under Investors. For our call today, I am joined by Jason Few, Fuel Cell Energy's President and Chief Executive Officer, and Mike Bishop, our Executive Vice President, Chief Financial Officer and Treasurer. Following our prepared remarks, we will be available to take your questions and be joined by other members of the leadership team. I will now hand the call over to Jason for opening remarks. Jason?

Thank you, Tom, and good morning, everyone. Thank you for joining us on our call today. In the third quarter, we achieved solid performance and continue to advance our powerhouse strategy. Our revenue increased sequentially compared to our second quarter. Year over year, revenue decreased as expected. given the comparison against three module replacements in the prior year quarter, while there were none in this quarter. We had strong growth in generation and advanced technology revenues and continued our focus on discipline expense and capital deployment management. We will provide more detail in the financial portion of our presentation. Each quarter, we also like to share some non-financial highlights for fuel cell energy shown on slide three. to give an overview of who we are and what we do. In short, all of us at Fuel Cell Energy are committed to our work in support of our purpose to enable a world empowered by clean energy. We are working to achieve this purpose by deploying our proprietary fuel cell technology platforms for energy delivery and emissions management around the world to accomplish two fundamental technology applications, decarbonizing power and industry and producing hydrogen. Turning to slide four, let's look at the key messages for the quarter. First, we announced a significant commercial win during the third quarter, the execution of a long-term service agreement pursuant to which we will provide Kongi Green Energy, or GGE, in South Korea with 42 upgraded replacement fuel cell modules over the next two years. In addition to the sale of these modules, Under the long-term service agreement with GGE, we will provide long-term operations and maintenance services for GGE's Wausau and Ballin Industrial Complex, the largest single-site fuel cell power platform installation in the world. At quarter end, the agreement with GGE brought our total backlog to 1.2 billion, our largest backlog in two years. allocated primarily between product and service revenues. The order from GGE represents an important milestone for us and a vote of confidence in our company from a major genco in a country that has embraced fuel cell technology as essential to its energy infrastructure. Our manufacturing capabilities allowed us to get off to a quick start, and we shipped the first six replacement modules to GGE in August. We continue to monitor and adjust production at our Torrington facility to reduce costs while managing our carbon and inventory position to meet current and forecasted demand. We, along with ExxonMobil Low Carbon Solutions, are also making progress on our carbon capture project at the Esso Refinery in Rotterdam. ExxonMobil's major projects team is advancing site work in Rotterdam and Fuel Cell Energy is advancing module testing and validation and building the two deployment modules. In a moment, I will share more details on our progress. Additionally, we are advancing our recently announced biogeneration project developed by Amoresco for the Sacramento Area Sewer District to convert onsite biofuels into clean electricity. The project will be powered by one of our 2.8 megawatt carbonate fuel cell platforms which will produce carbon neutral electricity and usable heat from biogas and has the potential for future production of renewable green hydrogen similar to our Port of Long Beach Toyota installation. The modules installed at this project site will also be our first commercially deployed CO2 recovery ready modules manufactured by Fuel Cell Energy. Under our agreement with Amoresco, We will also provide comprehensive maintenance services for the fuel cell system. Third, we focused on expanding our reach into the South Korea market as we have done with our long-term service agreement with GGE. We see a tremendous opportunity to build upon our presence and establish reputation in the market through the long-term service agreements and product sales. Additionally, applications like electrolysis, time to power, and CO2 as a delivered product are gaining momentum among a broader set of customers and geographies. And fourth, we are taking proactive steps to maintain the strength of our balance sheet. We are making critical investments to support continuous improvements in our manufacturing process, including safety performance to position fuel cell energy for future growth. We are doing this while maintaining a disciplined approach to managing cash and liquidity to establish investment triggers linked to key milestones. As we grow, we will do so in a cost-effective way, maintaining the quality and safety of our operations. Now let's turn to a couple of operational updates on key commercial and development items. Turning to slide six, I would like to give a commercial update on the Korea market, where Fuel Cell Energy has a long history and is a trusted partner to GGE, Noel Green Energy, or NGE, and Korea Southern Power Company. I have spoken at length about the details of our agreement with GGE, but I think it is also important to look at our relationships in Korea from a wider perspective. I would like to highlight our relationship with NGE, for example, which owns a fuel cell park, which we are now servicing under a 14-year service agreement. Under this long-term service agreement, We will oversee power plant operations and the replacement of 16 modules in 2030. The NGE fuel cell park is capable of producing approximately 150 million kilowatt hours per year of eco-friendly electricity and has been in operation since late 2016. This history illustrates the long-term commitment to hydrogen power by the South Korean government and demonstrates the trust placed in fuel cell energy by NGE to maintain its power production. Next, I want to highlight our relationship with Korea Southern Power Company, or COSPO. In 2018, we completed construction in just nine months of a platform to produce 20 megawatts of clean, sustainable energy. To date, this platform has produced 896,971 megawatt hours of electricity. The nine-month build time demonstrates our ability to meet large-scale time-to-power requirements. This past June 28, we held an event in Korea titled Accelerating Korea's Energy Transition with Advanced Fuel Cell Solutions, showcasing fuel cell energy's cutting-edge technology and strategic vision for the nation's energy future. The gathering was attended by approximately 140 leaders of the Korean energy industry. as well as fuel cell energy executives. Importantly, CEO Andy Candler, GGE, and CEO Chang Suk Koo of NGE also addressed the group to provide their perspective on fuel cell energies, fuel cell technology platforms, and how they support the needs of their business and commitment toward decarbonization. It was a great day that generated extensive and positive press coverage in the Korean market. Since regaining access to the Asian market in December of 2021, we have continued to invest in scaling our commercial organization in South Korea in support of building a pipeline of opportunities in the Korean and broader Asian markets, where we believe that fuel cell energy's differentiated technology is a desirable choice for utility scale projects. The South Korean government has established an aggressive hydrogen economy roadmap. which we believe should continue to create opportunities in this market. Turning to slide seven. We have an update on the carbon capture and recovery demonstration we are constructing in Torrington, Connecticut. As you may recall, since last year, we have been working to add engineered carbon recovery capabilities to the shore source 1500. We expect to complete construction later this calendar year which will allow prospective customers to observe the operating plant and allow for the sampling and testing of recovered CO2 to verify quantity, quality, and purity requirements. We're really excited about the promise of this technology to capture CO2 emissions from industrial and commercial exhaust streams. We believe our technology can help solve one of the world's biggest environmental challenges while also providing mission critical certainty of price and supply of high-quality CO2 for the food and beverage industry. Next, on slide 8, we have an image of what will be the first full-scale commercial unit for carbon capture with our Gen 2 design. This is a 600-kilowatt unit, and one of the ways it is differentiated from our traditional carbonate module is the level of balance of plant that is integrated inside the module. We believe that this modular design will improve large scale deployment capabilities by enabling multiple units to be stacked or rack mounted vertically. The design is also expected to support greater uptime given its modularity and to improve maintenance flexibility. Flexibility is an essential capability to support continuous commercial and industrial operations. Our first two units are scheduled to ship to Rotterdam in fiscal year 2025. And now, I would like to turn the call over to our CFO, Mike Bishop.

Thank you, Jason, and good morning to everyone on the call today. Let's begin on slide 10 by reviewing the financial highlights for the quarter. For the third quarter of fiscal year 2024, we reported total revenues of $23.7 million compared to $25.5 million in the comparable prior year quarter. In the third quarter of fiscal year 2024, we reported a net loss of $35.1 million compared to a net loss of $23.6 million in the third quarter of fiscal year 2023. The net loss in the prior year quarter included the benefit of a gain on early extinguishment of finance obligations and debt net of $15.3 million. The resulting net loss per share attributable to common stockholders in the third quarter of fiscal year 2024 was negative 7 cents compared to negative six cents in the third quarter of fiscal year 2023, which included the one-time benefit of a gain on early extinguishment of finance obligations and debt net of approximately four cents per share. Adjusted EBITDA totaled negative 20.1 million in the third quarter of fiscal year 2024 compared to adjusted EBITDA of negative 31.6 million in the third quarter of fiscal year 2023. Please see the discussion of non-GAAP financial measures, including adjusted EBITDA, in the appendix at the end of our earnings release. Finally, we reported a strong total cash and short-term investment position of approximately $326 million, consisting of cash, cash equivalents, restricted cash, and investments in U.S. Treasuries as of July 31, 2024. Next, on slide 11, you will see additional details on our financial performance and backlog. In the graph on the left-hand side of the slide, revenue is broken down by category. Product revenues were $0.3 million during the third quarter of fiscal year 2024, and there were no product revenues in the comparable prior year period. These revenues were recognized under the company's new sales contract with Amoresco that was entered into last quarter. Service agreement revenues decreased to $1.4 million for the third quarter of fiscal year 2024 from $9.8 million in the prior year period. The decrease was primarily driven by the absence of any module exchanges during the quarter. Higher service agreement revenues recognized during the prior year third quarter were driven primarily from the module exchanges at the plants owned by Korea Southern Power Company in Korea and a module exchange at the plant at Trinity College. Generation revenues increased 22% to $13.4 million from $11 million in the prior year period, primarily driven by revenue related to the Toyota and Derby projects, which began operations in the first quarter of fiscal year 2024. Advanced technology contract revenues increased 84% to $8.6 million from $4.7 million. Advanced technologies contract revenues recognized under our joint development agreement with ExxonMobil Technology and Engineering Company, or M-TECH, were approximately $1.8 million. Revenues arising from the purchase order received from ESSO Netherlands BV, or ESSO, an affiliate of M-TECH and ExxonMobil Corporation related to the Rotterdam project were approximately $3.5 million, and revenue recognized under government contracts and other contracts were approximately $3.3 million for the three months ended July 31, 2024. This compares to contract revenues recognized under our joint development agreement with MTEC of approximately $2.8 million and revenue recognized under government contracts and other contracts of approximately $1.9 million for the three months ended July 31, 2023. Looking at the top right-hand side of the slide, gross loss for the third quarter totaled $6.2 million, compared to a gross loss of 8.2 million in the comparable prior year quarter. The reduction in gross loss resulted in part from higher favorable margins for advanced technologies of 1.9 million and lower unfavorable margins for generation of 1.1 million, partially offset by unfavorable product margins of 1 million. Service gross margin remained consistent quarter over quarter. Operating expenses for the third quarter of fiscal year 2024 decreased to $27.4 million from $33.2 million in the prior year third quarter. Administrative and selling expenses decreased by $3 million from the prior year quarter primarily as a result of lower legal, consulting, and shareholder relations expenses and lower compensation expense. Research and development expenses decreased by 2.8 million compared to the prior year third quarter, reflecting a decrease in spending on commercial development efforts during the quarter, as well as a shift in engineering resource allocation towards supporting the increase in funded advanced technology activities. At the bottom right of the slide, you will see the backlog increase to 1.2 billion as of July 31, 2024, compared to $1.06 billion as of July 31, 2023. The increase was primarily as a result of the long-term service agreement entered into with GGE during the third quarter of fiscal year 2024. Backlog for the agreement with GGE was allocated between product backlog of $126 million and service backlog of $33.6 million. product backlog will be recognized as revenue over time as the company completes commissioning on the replacement modules to be sold to GGE. Commissioning of the first six 1.4 megawatt replacement fuel cell modules is expected to be completed in the fall of calendar year 2024 with an additional 30 1.4 megawatt replacement fuel cell modules expected to be commissioned throughout the course of calendar year 2025. The remaining six 1.4 megawatt replacement fuel cell modules are expected to be commissioned in the first half of calendar year 2026. As a reminder, service backlog will be recognized as revenue as the company performs service at the GGE site over the term of the agreement with GGE. Next, on slide 12, we have an update on our cash and liquidity. As of July 31, 2024, cash and cash equivalents, investments in U.S. Treasuries, and restricted cash and cash equivalents totaled $326 million. This includes approximately $159.3 million of unrestricted cash and cash equivalents, $107.8 million of short-term investments in U.S. Treasuries, and $58.8 million of restricted cash and cash equivalents. During the three months ended July 31st, 2024, approximately 95.2 million shares of common stock were sold under the company's amended open market sale agreement at an average sale price of 71 cents per share, resulting in net proceeds to the company of approximately 65.9 million dollars. As discussed last quarter, the company has made certain downward adjustments to expected spending during fiscal year 2024 as a result of the pace of market development and due to the need to continue the company's work to optimize and focus on optimizing and improving the company's solid oxide technology, including its stack life, performance, and efficiency. Adjustments to expected spending for fiscal year 2024 have included reductions in capital expenditures and company-funded research and development expenses. The company has also extended the timing and deployment of certain first article solid oxide units as a result of the factors that I just mentioned. Current spending targets are included on slide 19 in the appendix of this presentation. In September 2024, as part of its cost saving measures, the company also made job eliminations in certain areas and reduced its workforce by approximately 4%, which is calculated as a percentage of total salaries being reduced. The company expects to continue to focus its strategy to respond to market conditions, which may result in additional spending and headcount reductions in future periods. Finally, as I mentioned on this slide, the company is also pursuing financing to support our commercial efforts which includes deployment of modules to the repowering opportunities in the Korean market, including the GGE project. We look forward to providing further updates on our cash management and financing activities in the coming months. I will now turn the call back to Jason.