Overall, the financials for the third quarter were an improvement on Q2 by 21% and on Q1 by 42% and while not yet back to the levels produced by 2021 and 2022 represents continued momentum in the right direction, both for the company and its customers. We continue to press forward on slower moving projects, while resolving their own bottlenecks. Now, to production highlights for the quarter. Please note that projects or potential projects previously announced that do not appear in the summary update or within the management discussion and analysis or outlook should not be considered as at risk. Noteworthy developments can occur at any time based on project stages and the information presented is a reflection of information on hand. Projects not mentioned may have simply not included or not got milestones worthy of discussion.
Also, some projects that are announced are relatively small, such as investigated studies requested by customers. Once concluded, the studies are the property of the customer and decisions they make as a result of the studies are entirely unforeseen and can often be months or even years away from manifesting as equipment sales. While these projects can be small, we announce these projects to give light to the areas where customers are showing interest and where PyroGenesis’ technology has potential future promise and may conduct further research. Under those circumstances, and given the number of studies the company conducts on behalf of customers, it is generally not deem necessary to announce their conclusion, especially when the customer’s ultimate end goal for the studies are still unknown or are part of further research and investigation or even a long negotiation between PyroGenesis and the customer.
And now a brief reminder of the company’s business strategy, where the company is a provider of an expanding technology ecosystem for heavy industry with a number of solutions in different stages from early pilot to full commercialization concentrated under three verticals that align with economic drivers key to heavy industry. First, energy transition and emission reduction, which focuses on fuel switching for helping heavy industry reduce their fossil fuel use and lower their greenhouse gas emissions by utilizing the company’s electrically-powered plasma torches and its biogas upgrading technology within various process steps. Second, waste remediation, the safe destruction of hazardous materials and the recovery and valorization of underlying substances such as chemicals and minerals that can be reused or resold.
And finally, commodity, security, and optimization which means using PyroGenesis technology to aid in the recovery of viable metals and the optimization of production output. Both actions meant to improve the availability of critical minerals, such as titanium, aluminum, magnesium, and others that are essential for modern manufacturing. In Q3, within the energy transition and emission reduction vertical, in August, the company announced a contract for $4.13 million or a 4.5-megawatt plasma torch system with an aeronautics and defense industry client who is a prime contractor for the US government and who has extensive experience as an innovation of providing Technology and Tech services to solve critical Defense, Military and Aeronautics challenges.
The importance of this contract was that the Plasma Torch Systems sold at 4.5 megawatts was at an appreciably higher power level than recent sales, a requirement that is becoming more common and indicates the potential for the company’s entry into other industries that require such high-power, including glass, cement and petrochemical industries, among others. In Q3, within the commodity security and optimization vertical, in September, the company announced receipt of an order from a Global Aerospace firm for course cut titanium metal powder produced by PyroGenesis, Next-Gen, Plasma Automization System, which produces metal powder for use in industrial 3D Printing and Additive Manufacturing. The client is a large global aerospace original equipment manufacturer in the United States with PyroGenesis has previously disclosed being in an ongoing qualification process towards approved vendor status.
This new order is unrelated to that process is intended for use in the clients’ Research and Development Programs. With the particle size distribution for this titanium powder of between 45 and 150 microns, this contract recognizes the overall quality of the company’s powder and potentially establishes a market for a larger percentage of powder output, thereby improving overall returns. By selling both the fine and coarse cut of each powder production run, the company’s yield percentage from raw material is greatly enhanced, which is in line with the company’s broader mandate for commodity security and optimization. And lastly, for Q3 within PyroGenesis Waste Remediation Vertical, in September, the company announced receipt of a $2.25 million Plasma Torch contract from a US corporation geared to destroy for Perfluoroalkyl and Polyfluoroalkyl Substances known as PFAS on behalf of a large operator of Public Water Systems.
