Midwest Energy Emission

this third quarter's reported revenues. At approximately $7.5 million, this has been the single highest revenue quarter in a number of years. Our CFO, Jamie Slatherway, will speak further about the actual reported figures shortly. It's notable that our quarter increased approximately 50% from last year's third quarter. Based on this revenue growth, which we expect will continue Our current cash position in the recently announced three-year deferral of all of our major debt management has removed the going concern, a testament to our financial stability going forward. The revenue gains this quarter were achieved from increased demand by the coal-fired utility market and from the additional loose supply business. In conjunction with our revenue growth, we've also been able to navigate challenging supply issues through excellent operational management by our key vice president and a true collaborative partnership with our utility customers. Coal-fired generation remains a stable sector of the overall U.S. power mix, and we feel it will for years to come. We also continue to seek and gain new business partnerships with utilities who may be using our technologies without a license agreement at this time, and those efforts come between Ourselves and Caldwell Cassidy-Curry remain positive due to the market's increasing recognition of the value of our technologies in mercury emissions capture and our patent position. We believe that our company has turned the corner and remains on track for consistent and continued growth moving into 2023 and beyond. As mentioned, a significant recent highlight is the extended debt agreement with our principal financial partner, who is also our largest single shareholder. The only major debt that our company now holds is through this lender, which is a secured loan of $270,000 and an unsecured debt of $13.2 million. Through careful and collaborative discussions with this financial partner, an agreement was reached that benefits our company, their lender, and our shareholders. through a new financial position providing ME2C with the unfettered financial capacity to go forward with key growth strategies which are now underway. In addition to a three-year extension of the maturity date of these loans to August 2025, a notable element of the agreements reached allows for ME2C to buy back a significant portion of the stock held by this lender at a price of $0.50 per share at our company's discretion. We anticipate moving forward with this stock repurchase plan at an appropriate time. Other items include a significant increase in rate reduction for the small secured portion, decreasing from 15% to 9%. And, of course, the remainder debt has no debt repayment over the next three years other than a percentage of the profit of any large segments that we may derive. So ME2C is truly confident that this revised financial arrangement will allow our capital to work towards critical growth areas while we gain additional revenue over these next three years. So we'll now discuss the two other key areas of growth that have reached pivoting points, the ongoing litigation proceedings against certain refined call entities and our efforts in new environmental technologies. The market should know that our lawsuit remains strong and passed a significant marker with the conclusion of the lengthy fact discovery phase during this past third quarter. We are now within one year of our trial date, after over three years of process. And during the next several months, our legal team and the defendants are preparing for the trial next fall. Expert witnesses from both sides are being posed to build arguments from both sides. Most of that has concluded. This period prior to trial may provide the opportunity for potential discussions with settlements in mind if they are pursued. we continue to remain confident about our legal position. We've also reached a turning point in our technology efforts focused on rare earth elements. With consistent results from academic labs, our results in developing a sorbent technology to be used to process or remove the extraction of REEs from solution has not been conclusive due to a large part to a lack of the excuse me, technology that we have discovered in the field itself. In order to process the rarest out of solution, it is critical that these elements be captured from either coal ash or acid mine drainage and put in a solution that will allow the elements to be further separated and processed. Our work in that area continues, and we look forward to bringing more updated information to the markets as we get into the test results that we expect to receive later this year. These key areas of growth, our lawsuit, the new environmental technologies, are expected to be funded internally. The extension of our sole major debt for the three-year period allows our finances to focus on these areas of growth. We remain committed and confident in achieving further patent recognition across the coal farm market and in developing new sorbent technologies addressing critical environmental concerns. And so with that, I'll turn the call over to Jamie Slatherwaite, our CFO, for an overview of the strong third quarter results. Jamie?

Thank you, Rick. Hello, everyone. In the third quarter, the company's financial position continued to improve as we experienced the strongest quarter since 2017. Third quarter 2022 revenue increased to $7.5 million from $5 million in the third quarter of 2021, an increase of approximately 50%. The increase in revenue was primarily driven by increased assortment product sales due to increased supply demands in the coal-fired market, as well as expansion of the company's customer base. Total costs and expenses in the third quarter of 2022 were $6.9 million compared to $5.2 million in the same quarter last year. The increase in total costs and expenses is primarily due to the increase in cost of sales resulting from increased sales offset by a decrease in interest expense. The company had net income of 0.6 million dollars in the third quarter of 2022 or one cent per basic and diluted share compared to a net loss of 0.2 million dollars or zero per basic and diluted share for the prior year period. Adjusted EBITDA in the third quarter of 2022 was $1.2 million compared to $0.7 million in the third quarter of 2021, an increase of approximately $0.5 million. As of September 30, 2022, the company had approximately $1.3 million in cash, working capital of $2.2 million, and $3.3 million in accounts receivable. Taking into consideration the deferral of all major debt, the company's current cash position, and recent revenue growth, management believes that a substantial doubt regarding the company's ability to continue as a going concern has been mitigated. With that, I will hand the call back over to Rick for his concluding remarks. Rick?

Jamie, thank you. And thank you to our management team and to our business partners. We're excited that we've been able to turn the corner today with a solid financial position heading into the new year. Our developments in the litigation and rare earth technologies are on track, with near-term progress anticipated. On behalf of our ME2C management team, we'd like to thank our shareholders for their long-term commitment, and to all of you listening today for your continued interest in our firm. With that, I'll turn the call back over to the operator to begin the question and answer session.