Good day, and welcome to the LiqTech Second Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Robert Blum with Lytham Partners. Please go ahead.

All right. Thank you very much. Good morning, everyone, and thank you for joining us today to discuss LiqTech's second quarter 2025 financial results for the period ended June 30, 2025. Joining us on today's call from the company are Fei Chen, Chief Executive Officer; and David Kowalczyk, the company's Chief Financial and Chief Operating Officer. Before I turn the call over to management, I do want to remind listeners that there will be a Q&A session at the end. [Operator Instructions] Before we begin with prepared remarks, we submit for the record the following statement. This conference call may contain forward- looking statements. Although the forward-looking statements reflect the good faith and judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed during the conference call. The company, therefore, urges all listeners to carefully review and consider the various disclosures made in the reports filed with the Securities and Exchange Commission, including risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, operations and cash flows. If one or more of these risks or uncertainties materialize or if the underlying assumptions prove incorrect, the company's actual results may vary materially from those expected or projected. The company, therefore, encourages all listeners not to place undue reliance on these forward-looking statements, which pertain only as of the date of the release and conference call. The company assumes no obligation to update any forward-looking statements to reflect any events or circumstances that may arise after the date of this release and conference call. Now I'd like to turn the call over to Fei Chen, CEO of LiqTech International. Fei, please proceed.

Thank you, Robert, and good day to everyone on the call. At a high level, we achieved improved financial performance across the board during the second quarter, including revenue growth, gross margin improvement and decreased operating expenses as we continued to execute on our key strategic priorities. In the second quarter, we achieved strong performance in our swimming pool segment, delivering 6 systems and generating nearly $800,000 in revenue. Further, the order flow for swimming pools looks strong as we enter the back half of the year. We also received an order for an advanced membrane-based filtration system to treat oily wastewater and delivered a new pilot system to our partner at Razorback Direct to address a new end market opportunity. These water system orders, coupled with 31% sequential growth in our ceramic and the plastics business combined helped drive the overall revenue improvement during the quarter. Beyond the strength of the second quarter results for the year, our revenue outlook anticipates continued year-over-year improvements in the third and fourth quarter with full year revenue expected to be at company's highest level in 4 years, dating back to the pandemic. I am certainly pleased with the progress made to date and expected over the rest of the year. In brief, this quarter is a little different than some of the previous quarters in that we really had solid operational performance across the board. Unlike the first quarter where we had the record oil and gas system order, the second quarter was much more balanced with contributions from water system deliveries, ceramics, DPF and the plastics. We obviously like this balance as something to build on for the rest of the year. One item I would like to mention is the order we received from North Star Bluescope Steel, a major…

Thank you, David. To close things out before I turn it over to questions, I see our proprietary silicon carbide filtration technology as a cornerstone for addressing some of the world's most pressing environmental challenges. Our advanced ceramic membranes offer unparalleled performance in treating the most difficult water purification applications from oil and gas produced water to swimming pool systems. By enabling industries to meet stringent regulatory requirements, we are reducing water usage and energy consumption. We are not only solving critical purification needs, but also driving sustainabilities. Our recent successes such as securing significant orders for produced water treatment as well as the steel processing industry in the U.S. and expanding our presence in the marine and pool filtration markets demonstrate the growing global demand for our solutions. The opportunity ahead is significant, driven by increasing water scarcity and strengthen environmental regulation worldwide. Through strategic partnerships such as our collaboration with Razorback Direct for oil and gas application, we are expanding our reach to deliver tailored turnkey systems. These collaborations amplify our ability to provide turnkey systems that not only ensure compliance, but also optimize production processes, protecting equipment and reducing operational costs for our clients. Looking ahead, LiqTech's vision is to be a global partner in creating a cleaner, more sustainable future. We are committed to innovating and scaling our filtration technologies to address these large opportunities. Again, thank everyone for your support of LiqTech. With that, Robert, we would be happy to take any questions.

Wonderful. Thank you very much, Fei and David, for the prepared remarks. As I do have a couple of questions here, Fei and David. To begin, the first off here, can you discuss the area focus for the new Razorback pilot?

As I mentioned in my speech, it's an area outside oil and gas industry, but it's an industry water treatment. And I would like to wait until we got positive customer feedback before I give more concrete information about the end market.

Okay. Very good. Next question here. What does the approval of the pilot at the U.S. oil and gas industry application mean in terms of potential timing?

It's a very, very good result for us because this is the world-leading integrated engine company. They have their fixed procedures to approve projects in their technology pipeline. And we have now got the highest grade. That means we are able to commercialize across the whole company. And I am optimistic we're going to see some very exciting results in the near future.

Another question here. What timing do you think will be -- or what do you think timing will be for the bidding process in the Marine segment there that was mentioned?

As I said in my speech, it will be in quarter 3. So we expect something is going to happen in the next 2 months.

Okay. Very good. Next question here. It says so based on your full year guide of $19 million to $20 million and your Q3 guide of $3.5 million or $3.8 million to $42 million, that implies a Q4 run rate of $62 million to $66 million. First off, are my numbers correct? And secondly, does that mean you will be EBITDA profitable in Q4? David Nørby Foss Kowalczyk: Yes. So definitely, we expect Q4, you can say to be a higher of the 2 quarters. Will we see an EBITDA positive? Again, we are guiding, you can say up to 6.5% for that to happen. It will be depending on mix. But for sure, the goal will be to reach an EBITDA positive quarter this year. but depending on mix and of course, the total sales volume happening in the quarter.

All right. Very good. I am showing no further questions here. Fei, David, I will turn it back over to you for any closing remarks.

Okay. I would like to thank everyone very much for being with us today. We look forward to communicating with you soon again. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.