PyroGenesis had previously announced — a previously announced its involvement in this very same project before subsequently suspending and discontinuing discussions as at the time, the project did not align with the minimum requirements of the company’s global strategy. However, because of renewed interest from the project principles and upon developing a different approach, the client reengaged with PyroGenesis and PyroGenesis will now supply a Plasma Torch System as a key destruction component of the overall solution build. For those who are unaware, PFAS are a group of almost 15,000 Synthetic Chemicals that have been widely used in various industries for decades and thousands of products, including nonstick cookware, stain resistant coatings on carpets and upholstery, water-resistant clothing, firefighting foam, cleaning products, personal care, cosmetics, plastic food container and any other product that crease, water and oil.
Because of their widespread use, the cumulative tendencies and resistance to breaking down PFAS or proving to be a persistent pollutant with a longevity measured in centuries, hence, given the name “forever chemicals”, with worrying concentrations in drinking water, soil and air, recent scientific investigations have revealed concerning connections between PFAS exposure and damage to the health of humans and Wildlife, leading global governments and industry seeking ways to reduce their usage and destroy existing stockpiles for the chemicals. To read about these and additional events and updates to ongoing projects not discussed on this call, please refer to the corresponding section of the news release or the management discussion and analysis, in particular, the outlook sections of those documents.
I’ll be back at the end for some final thoughts. But at this point, I’d like to turn the call over to the company’s Chief Financial Officer, Andre Mainella, to discuss the financials in more detail. Andre?
Andre Mainella: Thank you, Steve, and good morning, everyone. Let me begin with a review of the financial results. Total revenue for Q3 2023 was $3.7 million compared to $5.7 million for the same period last year. Revenue for the first nine months of 2023 was $9.3 million compared to $15.7 million for the same period last year. Although, the third quarter revenue for 2023 was lower than the prior year, it’s important to note that the prior year included an IP sale of $3.6 million, which was not repeated in Q3 of 2023. Furthermore, the current quarter is the second consecutive quarter of revenue growth in the year, and we expect Q4 to maintain the positive trend. The revenue variation was a general increase across all product lines, except for the high-purity silicon and Purevacline.
Otherwise, in the quarter, sales of biograph upgrading increased by $0.7 million versus the same quarter of 2022 as well as sales to the U.S. Navy, which increased by $0.6 million. The combined increases in the other product lines equaled $0.6 million, offset by the IP sale, which did not reoccur in 2023. As of November 9, 2023, the company had a backlog of signed and/or awarded contracts of $35 million. The company’s backlog grew again slightly as we continue to add contracts while delivering and progressing on contract advancement. Of the $35 million of backlog, close to half is categorized in the vertical that we call energy transition and emission reduction. One-third is related to commodity security and optimization and the remainder in waste remediation.
Gross profit for Q3 2023 was $1.1 million or 30% of revenue compared to a gross profit of $4.1 million or 73% of revenue for Q3 of 2022. For the nine months ended September 30, 2023, the gross profit was $2.7 million or 29% compared to gross profit of $7.6 million or 49% of revenue for the nine months ended September 2022. And once again, the prior year included an IP sale of $3.6 million, which directly impacted the gross profit, both in dollars and in percentage. The company’s gross margin achieved in the current quarter comprised no special or onetime measures contributing to this 30% margin and is based exclusively on production and project advancement. This is once again comparable to industries the company serves and consistent with margin pressures being seen across those industries.
We continue to have difficulty maintaining 2022 margin levels due to a persistent inflationary environment in the sector. The decrease in the gross profit margin was mainly attributable to the impact of direct materials used in production and in foreign exchange in 2023 and the fact that Q3 2022 included the IP sale directly benefiting the gross profit. Selling, general and administrative expenses were $7.6 million and $21.6 million for the three and nine months period ended September 2023 respectively. This is compared to $5.9 million for Q3 of 2022 and $18.6 million for the same 2022 nine months period. The increase in Q3 2023 is mainly due to the expected credit loss, which increased to $2.8 million in Q3 of 2023, and is due to the additional quarterly allowance, which whereby no such expense was recorded in the comparable period.
