Net loss was $3.4 million compared to a net loss of $7.5 million in Q1 of 2023. I would note that these improvements have come in what is a seasonally weak quarter for the company and on the back of what was a very mild winter. To achieve these enhancements against a backdrop of lower volumes as a result of contract enhancements we flagged in the second half of 2023 is especially encouraging. Again, our average selling price for their quarter improved 16% year-over-year. We continue to eliminate negative margin contracts as we focus on profitability over volumes, and at the end of the first quarter have reduced loss making contracts to roughly 3% of volumes versus roughly 24% in 2022, and approximately 13% in 2023. Selling, general and administrative expenses totaled $7.7 million, reflecting a reduction of approximately $3.6 million versus the prior year, driven by a reduction in payroll and benefit expenses as well as legal and professional fees.
Offset by a higher board compensation and rent occupancy expenses. Research and development costs for the first quarter totaled $1.6 million compared to approximately 0.7 million in the prior year period. Year-over-year growth in R&D was primarily driven by conducting product qualification testing in the first quarter of 2024 with potential lead GAC adopters. Based on today’s GAC contract announcement, we believe this reflects a very smart use of our capital. Overall and on an annualized basis, our performance demonstrates our ability to operate our PAC business in a way that contributes positively to our economic position, while further enabling us to pursue and execute on high growth, high margin opportunities with our expanding GAC business.
As Bob mentioned, we fully anticipate that our PAC business will be cash generative in 2024 and with it we will have a much more secure foundational business on which we can add more rewarding GAC opportunities. Turning to the balance sheet, we ended the first quarter with cash of $44 million with a change versus last year and quarter, driven by ongoing strategic investments and expansion at Corbin and Red River. As Bob noted earlier, we updated our 2024 CapEx forecast to a range of $60 million to $70 million of which Red River Phase 1 is expected to account for $55 million to $60 million. To echo Bob’s comments, we remain extremely confident in our ability to fund our CapEx needs via our existing cash, cash generation, ongoing cost reduction initiatives, potential prepayments on GAC contracts, and perhaps most pertinently our planned refinancing and expansion of our term loan, all without the requirement of further equity.
With regards to this previously discussed refinancing, I’m happy to confirm that we have appointed advisors to execute this transaction and our initial conversations with potential lenders support our confidence into entering into a new agreement with enhanced economics within the next few months. Further, we expect to gain even greater flexibility with an expansion of the facility supported by our current low debt position and improved and highly attractive future cash flow profile. With that, I will turn things back to Bob.
Robert Rasmus: Thanks. Stacia. The first quarter marked a period of steady progress on all fronts. The sustainable improvements in our financial profile and overall profitability are evident and I remain confident in our PAC business being cash flow positive in 2024 driven by our portfolio improvements and our ongoing cost reduction initiatives. Our focus is increasingly shifting towards executing on our GAC expansion at Red River and our ongoing transformation to an environmental technology company. We are extremely proud of our ability to enter into our first GAC contract and look forward to providing further updates on additional contract progress as it occurs. I would like to conclude by emphasizing our four key focus areas for the year ahead.
First, we remain focused on maximizing the value of our foundational PAC business. We have made incredible progress on this front and have transformed the business to a cash flow contributor. As we exit the last of the remaining loss making contracts, we will focus on entering into additional higher value markets like soil and groundwater remediation and municipal water. By enhancing our product mix, we aim to achieve higher prices and in doing so further improve the quality and financial contribution of our PAC business. Second, we remain focused on winning further GAC customers and contracts. We are very proud of reaching a strategic milestone with our first contract. We look forward to delivering continued execution on this front. The market is strong in getting stronger by the day, and we remain in a prime position to help companies meet the tighter regulatory regime here in the U.S. and globally.
Third, we look forward to concluding the commissioning at Corbin this quarter. By utilizing Arq’s technology for recycling by bituminous coal waste, we are able to offer customers a highly differentiated solution and a fully vertically integrated supply chain that leads to differentiated cost and environmental advantages versus conventional products and methods. And fourth, we remain keenly focused on successfully commissioning our Red River GAC facility later this year. With our first contract in place and numerous active discussions for the remaining capacity, we remain well positioned to complete the transformation of our business to an environmental technology company. As I have said on previous quarterly calls, it is all about execution.
