PyroGenesis Canada Inc. (NASDAQ:PYR) Q4 2022 Earnings Call Transcript

Rodayna Kafal: The Company recently announced sales of some plasma torches to the US Navy, three torches for approximately $700,000. This is a steep discount compared to the initial sale price. Why the discounted price?

Steve McCormick: The torches that were sold to the US Navy are in no way comparable to torches sold, for instance, as part of the iron ore pelletization plasma system. These plasma torches sold to the US Navy are significantly smaller in size and not anywhere near the high-power output used for iron ore purposes. Second, the $700,000 was just for the torches and some small periphery items and not for the numerous other large elements that went into the overall Navy’s shipboard waste destruction system such as waste shredders, cooling units, and most importantly, power supplies where a lot of the cost for the shipboard systems stem.

Rodayna Kafal: PyroGenesis share ownership in HPQ has been significantly reduced. What is the strategy there? And is that to continue?

Steve McCormick: The strategy there is for liquidity purposes and cash flow. It’s one of the many tools at the Company’s disposal for cash generation. The Company has a licensing and/or royalty deal with HPQ in some areas that will provide longer term revenue, which somewhat offsets any concerns about lost opportunity from selling HPQ shares. PyroGenesis believes very strongly in HPQ as well as in the technology that the Company creates on its behalf.

Rodayna Kafal: And last question, in the past, you said there were no other PFAS opportunities you were pitching or in consideration for, what happened to those?

Steve McCormick: We’re very aware of the vast opportunity available for PFAS and have faith in our technology’s potential to be utilized in this regard. We continue to pursue opportunities, but are doing so in a cautious meticulous manner, in light of the experience with the initial PFAS contracts. We will update investors as more information becomes available.

Rodayna Kafal: That’s today’s conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.