Q4 2024 Anaergia Inc Earnings Call

Operator: Hello everyone and thank you for joining us for today's Anaergia Q4 2024 and year-end conference call and webcast. My name's Drew and I'll be the operator on today's call. After today's prepared remarks we will have a Q&A session.

Hello, everyone and thank you for joining us today's energy, Yeah, Q4, 'twenty 'twenty four and year end conference call and webcast. My name is drew and I'll be the operator on today's call.

After today's prepared remarks, we will have a Q&A session. If you would like to ask a question. Please press star followed by one on your telephone keypad and if you wish to withdraw your question then it soften a bit to it.

Operator: If you would like to ask a question please press star followed by one on your telephone keypad and if you wish to withdraw your question then it's star followed by two.

Darlene Webb: It's now my pleasure to hand over to Darlene Webb, Investor Relations for Anaergia. Please go ahead when you're ready. Thank you very much, operator, and good morning, everyone. On this call, we'll be discussing our earnings for Anaergia's fourth quarter, 2024, which ended December 31st, 2024. If you're following along with our slides, my comments are directed to slides one through three.

Speaker Change: It's now my pleasure to hand over to Darlene wet Investor Relations for Energia. Please go ahead, when you're ready.

Darlene Wet: Thank you very much operator, and good morning, everyone.

Darlene Wet: On this call, we'll be discussing our earnings for energy as fourth quarter 2024.

Darlene Wet: And at December 31st 2024.

Darlene Wet: If you're following along with our slides in my comments are directed to slides one through three.

Darlene Webb: And on slide two, you'll see that for our call today I am joined by Mr. Assaf Onn, Anaergia's Chief Executive Officer, Mr. Greg Wolf, Anaergia's Chief Financial Officer, and Dr. Yaniv Scherson, Anaergia's Chief Operating Officer.

Speaker Change: On slide two you'll see that for our call today I am joined by Mr. Ourself on juice.

Speaker Change: She was chief Executive Officer.

Mr. Greg Wolf energy as Chief Financial Officer.

Speaker Change: And Dr. Yang Shearson Chief.

Speaker Change: Chief operating officer.

Darlene Webb: Before beginning our formal remarks, we would like to refer listeners to Slide 3 of the presentation, which contains a caution on forward-looking information and a note on the use of non-IFRS measures. listeners are reminded that today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in these forward-looking statements. does not undertake to update any forward-looking statements, except as may be required by applicable law.

Speaker Change: Before beginning our formal remarks I'd like to refer listeners to slide three of the presentation, which contains the caution on forward looking information and a note on the use of non ISR us measures.

Speaker Change: Listeners are reminded that today's discussion may contain forward looking statements that reflect current views with respect to future events.

Speaker Change: Any such statements are subject to risks and uncertainties that could cause.

Speaker Change: Could cause actual results to differ materially from those anticipated in these forward looking statements.

Speaker Change: Energy does not undertake to update any forward looking statements, except as maybe required by applicable laws.

Darlene Webb: Listeners are urged to review the full discussion of risk factors in the company's perspective, which is filed with Canadian securities regulators.

Speaker Change: Those are urged to review the full discussion of the risk factors in the company's prospectus, which was filed with Canadian Securities regulators.

Assaf Onn: And with that, I'll turn the call over to Assaf. Thank you, Darlene. And good morning, everyone. We're currently on slide four.

Speaker Change: With that I'll turn the call over to herself.

Speaker Change: Yeah.

Charlie: Thank you Charlie.

Charlie: Good morning, everyone. We're currently on slide four.

Assaf Onn: I am pleased to be here today to reflect on a pivotal year for Anergia and share how we are positioning the company for long-term success. When I stepped into this role, Anaergia was at a turning point. We faced significant challenges, but also significant opportunities. Over the past year, we took bold, decisive steps to stabilize our financial position, refine our strategy, and rebuild trust with our investors. Today, I can confidently say, energy is stronger, more focused, and better positioned than ever. 2024 was about deliberate action. Not just small improvements, but foundational changes to ensure long-term success.

Charlie: I'm pleased to be here today to reflect on the pivotal year for Energia and share how we are positioning the company for long term success.

Charlie: When I stepped into this role and NGL was that the 30 points.

Charlie: Face significant challenges, but also significant opportunities.

Charlie: Was it last year.

Charlie: Bold decisive steps to stabilize our financial position refined our strategy.

Charlie: Build trust with our investors today.

Charlie: I'll kick off with LTC.

Charlie: <unk> stronger.

Charlie: Both focused and better positioned than ever.

Charlie: 2024, well.

Charlie: Was it both deliberate action.

Charlie: Small improvement, but on additional changes to ensure our long term success and as we close the year I want to highlight some of the most meaningful progress as we have made.

Assaf Onn: And as we close the year, I want to highlight some of the most meaningful progresses we have made. a successful $41 million strategic investment for money investment marked a turning point for Energia, significantly improving our balance sheet and providing the capital need to execute on our strategy. With this investment came a new controlling shareholder, Mr. Rod Epstein, a new management team, a refreshed board, and a new chairman, reinforcing governance and positioning us for potential for substantial growth. As we took steps to enhance transparency and better align with investors by converting Energia multiple voting shares into single class common share structure, these changes ensure that we are not only financially stronger, but also more accountable and shareholder-focused.

Charlie: The successful 41 million strategic investment somebody that just moved attorneys points 400 year significantly improving our balance sheet, providing the capital needed to execute.

Charlie: Our strategy.

Charlie: With this investment can be your controlling shareholder you still have that study and your business would be yes.

Charlie: Our refreshed board and the new chairman.

Charlie: Enforced the governance and positioning us for potential for substantial growth.

Charlie: As we took steps to enhancements fantasy and better aligned with investors Bancorp, breaking energy and multiple voting shares at a single class cobalt share structure. These changes ensure that we are not only financially stronger, but also more comfortable and shareholder focused.

Charlie: Moving to slide five.

Assaf Onn: move us to slide five.

Charlie: Well these structural changes.

Assaf Onn: Where are the structural changes? in place, we launched Energy Act 2.0. A strategy focused on financial discipline, operational excellence, and sustainable growth. more than just a shift in direction. Energy at 2.0 is about focus. doubling down on what we do best. executing with purpose. We prioritize capital sales. building on our successful core business, leveraging our proven expertise to drive revenue with lower capital intensity while focusing on profitable projects. This shift is already gaining traction, supported by a strong pipeline of well-funded strategic customers who recognize the value of our organic waste-to-energy solution. At the same time, we will reduce debt and improve financial flexibility, ensuring that we can pursue growth while maintaining a disciplined approach to investing.

Charlie: In place, we launched <unk> to point out.

Charlie: Our strategy focus on financial discipline operational excellence and sustainable growth.

Charlie: For the justice shifting direction and it just people I know is about focus.

Charlie: Doubling down on what we do best.

Charlie: Executing with breakfast.

Charlie: We prioritize capital sales building on our successful core business, leveraging our global expertise to drive revenue with lower capital intensity.

Charlie: While focusing on profitable project.

Charlie: This shift is already gaining traction.

Charlie: Posted by a strong pipeline of well funded strategic customers will recognize the value of our organic waste to energy solutions.

Charlie: At the same time, we reduced debt and improved financial flexibility.

Charlie: If we could pursue growth while maintaining a disciplined approach to investments.

Assaf Onn: Strategic partnerships has played a key role in this effort, allowing us to share project risk, strengthen execution capacity, and broaden our market reach through our collaboration with trusted regional players. We also worked to make our operation more efficient. Right-sizing and streamlining the business and SG&A to align with our capital light model and reducing headcount by 35%. These efficiencies have contributed to improved profitability and Greater Financial Resilience.

Charlie: Strategic partnerships has played a key role in this effort.

Charlie: In regard to share approach at risk.

Charlie: Execution capacity and broaden our market reach through our collaboration with trusted regional players.

Charlie: We also worked to make our operations more efficient.

Charlie: Right sizing and streamlining the business and SG&A to align with our capital light model and reducing head count by 35%.

Charlie: These efficiencies have contributed to improved profitability and.

Charlie: Greater financial resilience.

Assaf Onn: As well, our geographic expansion has been another important pillar of this study. We extended our presence into high-potential markets, including Latin America, Central and Eastern Europe, Africa, Japan, and North America. region where regulatory incentives, sustainability mandates, and the demand for R&G are driving adoption. We are positioning Energia to be a preferred solution provider in this rapidly evolving market. Together, these actions have transformed our ability to compete. wind and grow.

Charlie: As well our job graphic expansion has been another important P&L if the strategy.

Charlie: Then our presence into high potential markets, including Latin America.

Charlie: Central and eastern Europe.

Charlie: Africa, Japan, and North America.

Charlie: Region, where regulatory incentives sustainability buildings, and the demand for LNG and driving adoption.

Charlie: We are positioning <unk> to be the preferred solution provider in this rapidly evolving markets.

Charlie: Together.

Charlie: <unk> has transformed our ability to compete.

Charlie: And growth.

Charlie: We now turn to slide six.

Assaf Onn: We now turn to slide.

Assaf Onn: The removal of our growing concern mark a critical inflation This milestone reopened opportunities that were previously frozen and restored our ability to secure bonding capacity for new contracts. Most importantly, it allowed us to pursue sustainable macro growth of previously delayed projects. enabling us to capitalize on long-term revenue opportunities that had been on hold. This backlog provides clear visibility into future growth and reinforces our strong financial trajectory.

Charlie: The removal of our going concern note market critical inflection point.

Charlie: This milestone we opened opportunities that were previously frozen and restored our ability to secure the capacity for new contracts.

Charlie: Most importantly, it allows us to pursue sustained of backlog growth of previously delayed project.

Charlie: Enabling us to capitalize on long term revenue opportunities that had been on hold.

Charlie: This backlog provides clear visibility into future growth and reinforce our strong financial trajectory.

Charlie: We are now on slide number seven.

Assaf Onn: We are now on slide number seven. Our commercial momentum began accelerating in Q4, driven by a major contract that validates our strategy and reinforces our role as a global leader in organic waste-to-energy solutions. These contracts are not just about revenue. They reinforce credibility, expand our market reach, and support our long-term growth plans. Among more significant Q4 wins are PepsiCo Colombia, a flagship organic waste-to-energy project for a global food and beverage leader. Monterey One Water in the U.S., a significant O&M expansion in California that we expect will generate more than $3 million annually. And already, in early 2025, we are seeing further traction.

Charlie: Yeah.

Charlie: Our comparison would be to begin accelerating in Q4 driven.

Charlie: Driven by a major chord Barclays.

Charlie: To date, our strategy and reinforce our role as a global leader in organic waste to energy solutions.

Charlie: These contracts are not just about revenue.

Speaker Change: Yeah reinforced with ability extend our market reach and support our long term growth plans.

Charlie: Most significantly Q4 rigs are.

Charlie: CECO Colombia.

Charlie: Chip organic waste to energy project for our global food and beverage leader.

Charlie: Military one water in the U S. A significant O&M extensions, these California, which we expect will generate more than $3 billion annually.

Charlie: And already in early 2025, we are seeing further traction.

Assaf Onn: QGM Italy, two biometallic production facilities under EPC contracts that we announced yesterday valued over $46 million. The CTO of Fermo Italy, a newly announced anaerobic digestive project for a municipal client, reinforcing our growing presence in Italy's public sector, valued at over $9 million. University of California, Davis Councils have a new project to upgrade on-campus anaerobic digester facilities. Supporting North America's leading institutes in its sustainability goals, a contract valued at approximately $7 million. Peckbaugh, Italy, a multi-plant biotech agreement to develop five biometrics. JGC holding Japan. a major step into the Japanese RNG market.

Charlie: <unk>, Italy through Biomethane production facilities under EPC contracts that we announced yesterday valued over $46 million. The CTO of February, Italy, and Julian those anaerobic digestion project political client.

Charlie: Enforcing our growing presence in Italy public sector valued at over $90 billion with University of California Davis costs have.

Charlie: A new project to upgrade all the task force on aerobic digestion facilities supporting one North America, leading institutes in its history.

Charlie: Inability cores a contract value of approximately $7 million.

Charlie: Think about Italy, or multi cloud bike league agreements to develop five biomass facilities J D C holding Japan.

Charlie: A major step into the Japanese LNG market.

Assaf Onn: These projects are more than just ribbons. They represent the trust of global partners, validation of energy acceptability, and the strong indicators of the momentum that we are building.

Charlie: These projects are going to adjust revenue.

Charlie: They represent the trust of global partners, but in basin offtake of.

Charlie: And ags capabilities and a strong indicators of their batesville.

Charlie: Building.

Charlie: Moving on to slide eight.

Assaf Onn: Moving on to slide eight. The renewed confidence in Energia is evident, not just from our partners, but also from leadership and investors. inside purchase from our largest shareholders, Bondi Investments and Dr. Andrew Benedict, as well as two board members and our CFO demonstrate clear alliance and conviction in the company's project.

Charlie: The reduced coffee designated Gis evident not just from our partners, but also formed leadership as investors.

Charlie: Each site purchase from our largest shareholders body investments and Dr. <unk> as well as two board members and our CFO demonstrate clear alliance.

Charlie: And conviction in the company's trajectory.

Charlie: We have also taken steps to reengage.

Assaf Onn: We have also taken steps to re-engage institutional investors and build analyst coverage, helping to ensure that the market better understands Energia's long-term potential. and the Financial Markets Took Note. and Egeotop stock delivered a remarkable 260% return in 2024. making it the best-performing Canadian click-text book of the year.

Charlie: Institutional investors and analyst coverage, helping to ensure the micra, the bucket better understands and its long term potential.

Charlie: At this time.

Charlie: Additional buckets took notice.

Charlie: And as you talk stock delivered a remarkable 260% return in 2024.

Charlie: Making it the best performing <unk> topped off the year.

Assaf Onn: as recognized by the financial.

Charlie: As recognized by the financial press.

Assaf Onn: We are now on slide number nine. While we are proud of these accomplishments, we recognize that 2024 was a transition year. A year of rebuilding, repositioning, realigning energy for the future. We have stabilized our financial position, improved operation efficiency, and laid the foundation for long-term profitable growth. But most importantly, we have momentum. Our capital sales building business is gaining traction. Our operating model is sharper, and we are winning business with well-funded strategic partners. This momentum, combined with the renewed confidence of our investors, positioning Energia to accelerate growth in 2025 and well beyond.

Charlie: We are now on slide number nine.

Charlie: While we are proud of these accomplishments we recognize that 2024 was it was decent here.

Charlie: Rebuilding repositioning realigned again, it's here for the future.

Charlie: We have stabilized our financial position improved operation efficiency and lay the foundation for long term profitable growth.

Charlie: But most importantly, we have a bit our capital sales building.

Business is gaining traction.

Charlie: Our operating model the shopper and we are winning business with wealth funded strategic partners.

Charlie: This momentum combined with a renewed confidence of our investors positioning energy to accelerate growth in 2025 and well beyond.

Charlie: I also want to take the ball goes to thank the entire the GSD <unk>.

Assaf Onn: I also want to take a moment to thank the entire NGF team, from our engineers and project managers to our corporate operational staff, who have worked tirelessly to deliver results. We are a team of doers. and that mindset had made all the difference in this past. We are committed to executing the GR 2.0, delivering a profitable project. spending into key markets and creating long-term value for our shareholders. I look forward to keeping you updated.

Charlie: Our engineers and project managers to our cooperating operational staff, who have worked tirelessly to deliver results.

Charlie: We are a team of doors.

Charlie: And that mindset had debate or the difference in this past year.

Charlie: Yeah.

Charlie: We are committed to execute it is yet to play out.

A very profitable project.

Charlie: Spending into key markets and creating long term value.

Charlie: A value for our shareholders.

Charlie: I look forward to keeping you updated.

Gregory Wolf: With that, I will turn the call over to Greg. to go over the financial results. Thank you, Assaf. And good morning, everyone. Before I begin, I'd like to echo Assaf's gratitude for the exceptional work of our team in executing Energia 2.0 and setting the stage for sustainable development. Thank you. Today I'll walk you through our financial results for the fourth quarter in full year. Results that reflect not just improving fundamentals, but the impact of disciplined execution, sharper focus on our core business, and the early returns from our strategic reset.

Greg: With that I will turn the call over to Greg.

Greg: To go over the financial results Greg.

Greg: Thank you Olaf and good morning, everyone.

Greg: Before I begin I'd like to Echo SaaS gratitude for the exceptional work of our team and executing energy at two point out and setting the stage for sustainable.

Greg: Staying ability and profitable growth today I'll walk you through our financial results for the fourth quarter and full year.

Greg: That reflects not just improving fundamentals, but the impact of disciplined execution sharper focus on our core business and the early returns from our strategic reset.

Greg: Let's now move to slide 10, and 11 in our financial results for the periods ended December 31 2024.

Gregory Wolf: Let's now move to slide 10 and 11, our financial results for the period ending December 31, 2024. Revenue for Q4 2024 was $34.1 million, a sequential increase of 1.9% from $33.4 million for the same period of 2023. On a full year basis, revenue was $111.6 million, down 24.2% or $35.6 million from $147.2 million in 2023. The year-over-year decline was primarily due to the completion of the Italian and North American capital sales project, some customer-driven project delays, and an interim slowdown in new capital sales project signing. In addition, revenue declined because of the sale of Bioneer, a food project in Italy, which was divested in August 2023, as well as the idling of the Charlotte facility in February 2024, a decision that was made by us to minimize operating losses while we prepared the site for construction.

Greg: Revenue for Q4, 2024 was $34 1 million a sequential increase of one 9% from $33 4 million for the same period of 2023 and a full year basis revenue was $111 6 million down 24, 2% or $35 6 million from 140 <unk>.

Greg: $7 2 million in 2023.

Greg: The year over year decline was primarily primarily due to the completion of the accounting in North American capital sales projects, some customer driven project delays and an interim slowdown in year, New capital sales project signings in.

Greg: In addition revenue decline because of the sale of pioneer.

Greg: Through project in Italy, which was divested divested in August 2023, as well as.

Greg: The idling of the Charlotte facility in February 2020 for a decision that was made by us to minimize operating losses, while we prepare the site for construction.

Gregory Wolf: Gross profit for Q4 2024 was $9 million, reflecting a $157.8 increase or up $5.5 million from $3.5 million in Q4 2023. Full year gross profit was $25.6 million, a 29.9% for a $5.9 million improvement from $19.7 million in 2023. The increase was driven by a strategic focus towards more profitable capital sales and operating and maintenance contracts, plus our continued progression and ramp-up of our existing boot project, combined with our disciplined project execution approach. Growth margins for Q4 2024 expanded substantially to 26.4%. up from 10.5% in Q4 2023. On a full year basis, gross margins also 23%, up from 13.4% in 2023.

Greg: Gross profit for Q4, 2024 was $9 million, reflecting 157, eight increase or up $5 5 million from $3 5 million in Q4 2023.

Greg: Full year gross profit was $25 6 million, a 29, 9% or a $5 9 million improvement from $19 7 million in 2023.

Greg: The increase was driven by a strategic focus towards more profitable capital sales and operating and maintenance contracts plus our continued progression and ramp up of our existing food project.

Find with our disciplined project execution approach.

Greg: Gross margins for Q4, 2024 expanded substantially to 26, 4%.

Greg: Up from 10, 5% in Q4 of 2023 on a full year basis gross margins also increased to 23% up from 13, 4% in 2023. This kind of expansion requests the early pay off from our shift toward more profitable projects tighter cost controls and production oversight.

Gregory Wolf: This kind of expansion reflects the early payoff from our shift towards more profitable projects, tighter cost controls, and production oversight. It shows that our capital light strategy and cost disciplines are beginning to flow through the bottom line in a meaningful way. SG&A expenses for the fourth quarter increased to $18.6 million from $13.8 million in Q4 2023. This increase was mainly driven by year-end compensation and executive severance accruals. External professional fees regarding our year-end audit, increased insurance costs, and other year-end related expenses and reserves. For the full year, SG&A expenses were $66.8 million, a decrease of $8.5 million or 11.3% from $75.3 million in 2023.

Greg: It shows that our capital light strategy and cost disciplines are beginning to flow through the bottom line in a meaningful way.

Greg: SG&A expenses for the fourth quarter increased to $18 6 million from $13 8 million. In Q4 2023. This increase was mainly driven by year end compensation and executive severance accruals.

Greg: External professional fees regarding our year end audit increased insurance costs and other year end related expenses and reserves.

Greg: For the full year <unk>.

Greg: SG&A expenses were $66 8 million, a decrease of $8 5 million or 11, 3% from $75 3 million in 2023.

Gregory Wolf: This improvement reflects the impact of the business actions we took throughout the year, including a reduction in headcount and other cost reduction measures aimed at lowering our overhead cost structure. Net loss for Q4 2024 was $15.4 million, a $54.7 improvement or $18.6 million from the $34.1 million loss in Q4 2023. This $18.6 million improvement was driven by a notable increase in gross margins during Q4 2024 compared to the same period last year, coupled with losses on the deconsolidation of Rialto that occurred in Q4 2023. On a full year basis, net loss significantly improved to $55.9 million, representing a 71% improvement compared to $192.8 million in 2023.

Greg: This improvement reflects the impact of the business actions, we took throughout the year, including a reduction in head count and other cost reduction measures aimed at lowering our overhead cost structure.

Greg: Net loss for Q4, 2024 was 15 point.

Greg: $4 million, a $54 seven improvement or $18 6 million from the $34 1 million loss in Q4 of 2023.

Greg: This $18 6 million improvement was driven by a notable increase in gross margins during Q4 of 2024 compared to the same period last year, coupled with losses.

Greg: And the deconsolidation of Rialto that occurred in Q4 2023.

Greg: On a full year basis net loss significantly improved to $55 9 million, representing a 71% improvement compared to $192 8 million in 2023 <unk>.

Gregory Wolf: This $136.9 million improvement was primarily due to a prior year one-time charge related to the disposition of the company's subsidiary, ATA, and the deconsolidation of Rialto, both of which were partially offset by the sale of Tana. Additionally, 2024 benefited from the large improvements in gross margin and reduction of SG&A expenses as noted. Adjusted EBITDA for Q4 2024 was a loss of $6.3 million, an improvement of 18.2%, or $1.4 million, compared to a loss of $7.7 million in Q4 2023. The majority of the Justin Diva Dot improvement relates to the substantially higher gross margin. achieved in Q4 2024 compared to Q4 2023 as noted earlier.

Greg: $136 9 million improvement was primarily due to a prior year, one time charge related to the disposition of the Companys subsidiary <unk>.

Greg: And the deconsolidation of Rialto, both of which were partially offset by the sale of <unk>.

Greg: Additionally, 2024 benefited from the large improvements in gross margin and reduction in SG&A expenses has noted.

Greg: Adjusted EBITDA for Q4, 2024, with the loss of $6 3 million, an improvement of 18, 2% or $1 4 million compared to a loss of $7 7 million in Q4 2023.

Greg: The majority of adjusted EBITDA improvement relates to the substantially higher gross margin.

Greg: Achieved in Q4 2024 compared to Q3 2023, Q4 2023 as noted earlier.

Gregory Wolf: Full year adjusted EBITDA loss improved 23 percent or $8 million to $26.9 million compared to a loss of $34.9 million in 2023.

Greg: Full year, adjusted EBITDA loss improved 23% or <unk> 8 million to $26 9 million compared to a loss of $34 9 million in 2023. This marks a notable improvement driven by higher gross margins reduced SG&A expenses and continued financial discipline throughout our system.

Gregory Wolf: This marks a notable improvement driven by higher gross margins, reduced SG&X expenses, and continued financial discipline throughout our And now let's move to slide 12.

Greg: And now let's move to slide 12.

Gregory Wolf: As we close out 2024, we're reintroducing our revenue backlog, which gives us a clearer picture of the business we have in hand. This includes signed contracts across our capital sales and O&M service segment. with a conservative approach to backlog book. For capital sales, for example, we include only signed contract values and for O&M services. We modeled just three years of revenue as backlog, even though several of these agreements extend beyond 10 years. Under this refined definition, our backlog at year-end stands at $90 million in capital sales and $13.3 million in O&M services contracts for a year-ending backlog of $103.3 million.

Greg: As we close out 2020 for reintroducing, our revenue backlog, which gives us a clearer picture of the business. We have in hand. This includes signed contracts across our capital sales and O&M services segment.

Greg: With a conservative approach to backlog bookings.

Greg: For capital sales. For example, we include only signed contract values and for O&M services we.

Greg: We modeled just three years of revenue at backlog, even though several of these agreements extend beyond 10 years.

Greg: Under this refined definition our backlog at year end stands at $90 million in capital sales and $13 3 million in O&M services contract.

Greg: Our year ending backlog of $103 3 million.

Gregory Wolf: This figure is as of December 31st and does not reflect contracts announced since that date. Beyond that, across various stages of the sales cycle, we are actively pursuing and are negotiating additional contracts that collectively exceed $250 million in capital sales and over $15 million in O&M services.

Greg: This figure is as of December 31, and does not reflect contracts announced since that date.

Greg: Beyond that across various stages of the sales cycle we are.

Greg: Actively pursuing and are negotiating additional contracts that collectively exceed $250 million in capital sales and number of $15 million of O&M services with this solid backlog and a large growing pipeline of new deals. We are not only securing work for the near term were laying the foundation for sustainable revenue growth and long term stability.

Gregory Wolf: With this solid backlog and a large growing pipeline of new deals, we are not only securing work for the near term, we're laying the foundation for sustainable revenue growth and long-term stability.

Greg: Moving to slide 13, our current operating build own operate facilities Socal in Rhode Island, both continue to increase performance with Socal Biomethane operating profitably and getting closer to full capacity in Rhode Island also continuing to ramp up production.

Gregory Wolf: Moving to slide 13, our current operating build-own-operate facilities, SoCal and Rhode Island, both continue to increase performance, with SoCal Biomethane operating profitably and getting closer to full capacity, and Rhode Island also continuing to ramp up production. Our other development stage projects, including Charlotte and Riverside, remain in various stages of development.

Greg: Our other development stage projects, including Charlotte and river side remain in various stages of development in 2024, we took actions to minimize losses at our Charlotte facility by idling operation as we prepare the site for future construction.

Gregory Wolf: In 2024, we took actions to minimize losses at our Charlotte facility by idling operations as we prepared the site for future construction. Riverside also continues to be ready for construction as we complete development work under our existing capital sales contracts. Both projects will be constructed under our Capital Light model, whereby we are seeking a financial partner to fund the CapEx for these R&G developments. Both of these development projects are anticipated to begin construction in 2025 once a financial partner is selected.

Greg: Riverside also continues to be ready for construction as we complete development work under our existing capital sales contracts both projects will be constructed under our capital light model, where whereby we are seeking a financial partner to fund the capex for the R&D development.

Greg: Both of these development projects are anticipated to begin construction in 2025 whats the financial partner is selected.

Gregory Wolf: In summary, our financial results of the fourth quarter and full year reflect clear, tangible progress under Energia 2.0. We've taken meaningful steps to stabilize our financial foundation, improve operational discipline, and position the company for long-term value creation. We are productively managing risk, strengthening our internal controls, and focusing on execution and margin enhancement growth.

Greg: In summary, our financial results for the fourth quarter and full year reflect clear tangible progress under energy at two point out we've taken meaningful steps to stabilize our financial foundation improve operational discipline and position the company for long term value creation, we are productively managing.

Greg: Risk strengthening our internal controls and focusing on our <unk>.

Greg: And execution and margin enhancement growth.

Gregory Wolf: In early 2025, we already see a much greater opportunity in our pipeline. And because we are the market leader in R&G technology and a complete turnkey solution, this makes us the perfect choice for our customers. We believe this will lead to sustainable, long-term returns for our shareholders.

Greg: In early 2025, we already see a much greater opportunity in our pipeline and because we are the market leader in LNG technology.

Speaker Change: A complete turnkey solution. This makes us the perfect choice for our customers. We believe this will lead to sustainable long term returns for our shareholders with that I'll now turn the call over to India to share operational highlights to provide further context on our strategic execution.

Yaniv Scherson: With that, I'll now turn the call over to Yaniv to share operational highlights to provide further context on our strategic execution. Yaniv? Thanks, Craig. We're now on slide 14. We're driving a fundamental shift in how organic waste is managed, energy is produced, and how the circular economy is strengthened. Going forward, we ensure that each project we take creates long-term value, both financially and environmentally, reinforcing our leadership in sustainable infrastructure. Our partnership with PepsiCo in Colombia expands our partnership to three continents where we continue to support decarbonization solutions for major industrial players. Going forward, we expect continued demand for on-site decarbonization solutions from large industrial players seeking to reduce scope to emissions.

Speaker Change: Thanks, Craig we're now on slide 14.

Speaker Change: We're driving a fundamental shift in how organic waste is managed energy is produced and how that circular economy has strengthened.

Speaker Change: Going forward, we ensure that each project project, we take create long term value both financially and environmentally reinforcing our leadership in sustainable infrastructure.

Speaker Change: Our partnership with Pepsico in Colombia expands our partnership to three continents, where we continue to support decarbonization solutions for major industrial players.

Speaker Change: Going forward, we expect continued demand for onsite decarbonization solutions from large industrial players seeking to reduce scope two emissions.

Yaniv Scherson: In California, we continue to expand our operations footprint through new agreements with Monterey One Water and the Rialto Bioenergy Solutions Facility. Both projects align with California Senate Bill 1383, Organic Waste Recycling Mandate, and leverage energy as a vertically integration of design, technology, and operations. These projects provide recurring revenue and strengthen our ability to scale operations efficiently in the North American region, growing municipal and industrial sectors.

Speaker Change: In California, we continue to expand our operations footprint through new agreements with Monterrey, one water and the Rialto bioenergy solutions facility.

Speaker Change: Both projects aligned with California Senate, Bill 383, organic waste recycling and.

Speaker Change: And leverage energy as a vertically integration of design technology and operations.

These projects provide recurring revenue and strengthen our ability to scale operations efficiently and the North American region, and growing municipal and industrial segments.

Yaniv Scherson: In Japan, our new office and recently announced LOI with JGC Holdings marks a strategic entry into one of Asia's most forward-thinking energy markets. Japan has set clear goals for carbon neutral gas by 2030. And with government-backed incentives and the introduction of the Clean Gas Certificate System, there's growing demand for R&G solutions like ours. This move expands our global footprint and establishes Energia as a key player in Japan's transition to low-carbon energy.

Speaker Change: In Japan, our new office in recently announced LOI with <unk> Holdings marks a strategic entry into one of agents Asia's most forward thinking energy markets.

Japan has had clear goals for carbon neutral gas by 2030, and with government back incentives and the introduction of the coal gas certificate system. There is strong demand for RMG solutions like ours.

Speaker Change: This move expands our global footprint and establishes energy as a key player in Japan is transitioning to low carbon energy.

Yaniv Scherson: In Italy, we recently secured an agreement with TECPAL for five new biomethane plants, expanding energy at scale in the high-growth European market. These plants will process 270,000 tons of organic waste annually. We are focused to capitalize on the rapidly expanding European energy security initiatives and leverage repowered EU incentives. that support sustainable biomethane development across the EU.

Speaker Change: In Italy, we recently secured an agreement with Teck Val for five new Biomethane plant expanding energy at scale and the high growth European market.

Speaker Change: These plants will profit 270000 tons of organic waste annually.

Speaker Change: We are focused to capitalize on the rapidly expanding European energy security initiatives and leverage Repower EU incentives.

Speaker Change: <unk> sustainable Biomethane development across the EU.

Speaker Change: Moving onto slide 15.

Yaniv Scherson: Moving on to slide 15. Beyond individual projects, our build, own, operate, and capital sales pipeline continues to gain momentum.

Speaker Change: Beyond individual projects, our build own operate and capital sales pipeline continues to gain momentum with policy tailwind, including the clean fuel regulation in Canada as the <unk> hundred 83, and <unk> $14 40 in California, and Repower EU in Europe energy is well positioned to accelerate growth in the global organic way.

Yaniv Scherson: With strong policy tailwinds, including the Clean Fuel Regulation in Canada, SB 1383, and SB 1440 in California, and Repower EU in Europe, energy is well positioned to accelerate growth in the global organic waste energy market.

Speaker Change: The energy market.

Yaniv Scherson: And on to slide 16.

Speaker Change: And also slide 16.

Speaker Change: Why does all of this matter because our execution translate into long term revenue growth stable margins and increased cash efficiency or capital light strategy ensures we focus on financially healthy projects that reduce financial risk, while expanding in markets, where we already have strong momentum.

Yaniv Scherson: Why does all this matter? Because our execution translates into long-term revenue growth, stable margins, and increased cashing. Our capital-like strategy ensures we focus on financially healthy projects that reduce financial risk, while expanding in markets where we already have strong momentum. This disciplined approach positions Energia for scalable and sustainable profitability, making us more resilient in evolving global energy markets. 2.0 is not just about transformation, it's about execution. We're proving that our business model works. And we are poised to capture growing opportunities in the global organic waste-to-energy market.

Speaker Change: The fund approach physicians energia for scalable and sustainable profitability, making us more resilient and evolving global energy markets.

Speaker Change: Energy as you pointed out it's not just about transformation it's about execution.

Speaker Change: Moving that our business model works.

Speaker Change: And we are poised to capture growing opportunities in the global organic waste to energy market.

Assaf Onn: With that, I'll turn the call back to Assaf for his closing remarks. Thank you very much, Yaniv. As you have just heard, we are making clear, measurable progress in moving energy forward financially, operationally, and strategically.

Speaker Change: With that I'll turn the call back to a soft for his closing remarks.

Speaker Change: Thank you very much indeed.

Speaker Change: Because you have just heard Rob Mckee clear measurable progress in moving energy forward.

Speaker Change: Ali.

Speaker Change: So Lee.

Speaker Change: Strategically.

Assaf Onn: 2024 was a year of stabilization, a time to refocus on our core strengths and lay the groundwork for long-term success. We have taken decisive action to improve our financial position. streamline our business model and place Energia on a path to profitable, disciplined growth.

Speaker Change: 2024 was a year of stabilization tied to <unk>.

Speaker Change: Refocus on our core strengths and lay the groundwork for long term success.

Speaker Change: We've taken decisive action to improve our financial position.

Speaker Change: Streamline our business model.

Speaker Change: Place Energia on a path to profitable disciplined growth.

Assaf Onn: But our work is far from done. As we look ahead to 2025, our focus remains on execution, converting our growing pipeline into signed contracts. Advancing Strategic Partnership, and counting on building a financial regime. with a strong team.

But our work is far from done.

Speaker Change: As we look ahead to 2035 focus we've made on execution converting our growing pipeline into signed contracts.

Advancing strategic partnerships and.

Speaker Change: Counting on building financial resilience.

Speaker Change: Yeah.

Speaker Change: We have a strong team.

Assaf Onn: a focus strategy and an extended presence in key markets, Energia is well positioned to drive sustainable growth and create value for our shareholders.

Speaker Change: Our focused strategy.

Speaker Change: And an expanded presence in key markets and <unk> is well positioned to drive sustainable growth and create value for our shareholders.

Darlene Webb: With that, I will return back the call to Darlene to close. Thank you, Assaf.

Speaker Change: With that.

Speaker Change: I will turn back the call to lead to close.

Speaker Change: <unk>.

Speaker Change: Thank you soph.

Operator: Operator, I believe we're now able to open the call to questions. Apologies, we will now start today's Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. If you wish to withdraw your question, then it's star followed by two. We'll pause for just a moment to see which...

Speaker Change: Operator, I believe we're now able to open the call to questions.

Speaker Change: Yes.

Speaker Change: Apologies, we will now start today's Q&A session. If you would like to ask a question. Please go ahead, John followed by one on your telephone keypad. If you wish to withdraw your question Denny Stoffel will.

Speaker Change: We will pull it forward Jessica vitamin D C, which question. Thank you.

Darlene Webb: It looks like we have no questions registered at this time so I'll hand back over to Darlene Webb for closing remarks. Thanks again, operator. And thank you, everyone, as always, for additional information or should you have any questions. please do contact the IR team at ir.anergia.com. or visit us online at anaergia.com.

Speaker Change: It looks like we have no questions registered at this time, so I'll hand back over to Tony <unk> for closing remarks.

Tony: Thanks again operator.

Tony: And thank you everyone as always for additional information or should you have any questions. Please do contact the IR team at IR at energy Dot Com.

Tony: It is online and energy Dot com.

Operator: Thank you all for your time today. and Operator, you may now end the call. Thank you.

Tony: Thank you all for your time today.

Speaker Change: Operator, you may now and to come.

Speaker Change: Thank you that concludes today's call you may now disconnect your lines.

Operator: That concludes today's call. You may now disconnect your line.