Executive Summary

Q3 FY2025 revenue rose 77.7% year over year to $0.56M, driven by higher-margin sales and international demand; gross margin expanded to 55.8% from 44.8% in Q3 FY2024 and 24.1% in Q2 FY2025 .
Operating loss improved sequentially versus Q2 as margins normalized, yet net loss remained elevated at $0.81M; diluted EPS was -$0.10 vs -$0.12 in Q2 and -$0.11 in Q3 FY2024 .
Management highlighted execution on strategic initiatives: Sanzonate EU asset acquisition closing, GSA MAS contract access, and a major New York airport deployment, underpinning pipeline and channel expansion .
No formal quantitative guidance or consensus estimates were available; investor focus remains on revenue trajectory, margin sustainability, and operating discipline amid scaling costs .

What Went Well and What Went Wrong

“We continue to execute on our strategic initiatives and expand our leadership... evidenced by the 77.7% increase in revenue year-over-year,” said CEO Clayton Adams, citing Sanzonate Europe acquisition, GSA award, and a major airport deployment as key milestones .
Gross margin lifted to 55.8% in Q3 from 44.8% YoY and 24.1% QoQ, reflecting higher-margin unit mix and efficiencies .
International growth: revenue gains in Q3 were “primarily due to an increase of sales to our distributor in India,” highlighting geographic expansion .

Operating expenses remained heavy: G&A reached $0.97M in Q3, up 85.9% YoY, driven by stock comp, headcount, professional fees, and D&O insurance linked to listing costs .
Q2 showed margin compression (24.1% gross margin) amid demo strategy and discounted sales, contributing to a larger quarterly loss (-$1.01M), underscoring volatility during sales model transition .
Ongoing going-concern uncertainty disclosed across filings, requiring additional capital and posing dilution/debt constraint risks despite subsequent financing initiatives (context from Q3/Q2 10-Q) .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$313,920	$257,269	$557,915
Gross Margin %	44.83%	24.10%	55.77%
Operating Loss ($USD)	$(436,577)	$(963,995)	$(716,803)
Net Loss ($USD)	$(520,670)	$(1,005,030)	$(809,354)
Diluted EPS ($)	$(0.11)	$(0.12)	$(0.10)

Product Category	Q3 2024	Q3 2025
Janitorial & Sanitation ($USD)	$245,495	$475,762
Ice System ($USD)	$6,548	$50,624
Commercial & Residential Laundry ($USD)	$6,991	$1,440
Rental/Service Income ($USD)	$12,088	$22,851
Other ($USD)	$42,798	$7,238
Total Revenue ($USD)	$313,920	$557,915

KPI	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)
Cash and Cash Equivalents ($USD)	$560,489	$796,843
Accounts Receivable, net ($USD)	$439,374	$576,147
Inventory, net ($USD)	$718,628	$734,527

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4/Q3 windows	Not provided	Not provided	Maintained (no formal guidance)
Margins	FY/Q4/Q3 windows	Not provided	Not provided	Maintained (no formal guidance)
OpEx	FY/Q4/Q3 windows	Not provided	Not provided	Maintained (no formal guidance)
Tax rate / OI&E	FY/Q4/Q3 windows	Not provided	Not provided	Maintained (no formal guidance)

Note: The Q3 FY2025 press release and 10-Q did not provide quantitative guidance ranges; commentary was directional only .

Note: No public earnings call transcript was identified for Q3 FY2025 in the document catalog.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 FY2025)	Trend
International expansion	Building service contractors; education sector pilots; channel traction (Q1) . Q2 noted adoption and pilots, plus sequential revenue dip due to model transition .	Growth primarily from India distributor; revenue +77.7% YoY .	Positive momentum; stronger int’l mix supporting margin lift .
Government channel	Awarded GSA MAS IDIQ, enabling access to government buyers (Q3 press released in Q3 window) .	Reinforced as strategic growth channel .	Structurally positive channel access.
Large venue deployment	Early pilots in aviation and education (Q1/Q2) .	Major New York airport deployment highlighted; recurring potential .	Scaling deployments in high-traffic venues.
M&A/Europe footprint	Sanzonate Europe assets acquisition announced/closed around Q3 .	Integration and EU pipeline expansion .	Positive for geographic expansion and margin profile.
Regulatory backdrop	EPA ban of carcinogenic chemicals cited as demand driver (Q2) .	Supportive narrative for aqueous ozone adoption .	Tailwind to sustainable solutions demand.
Sales model transition	Q2: demo strategy and discounts pressured margins; higher sales costs .	Q3: margin normalization with higher-margin units .	Improving unit economics; operating leverage still developing.

“We continue to execute on our strategic initiatives and expand our leadership... evidenced by the 77.7% increase in revenue year-over-year,” citing Sanzonate Europe acquisition, GSA MAS award, and a major New York airport deployment .
“We believe the momentum we have established will translate into continued growth and meaningful long-term value creation for our shareholders,” said CEO Clayton Adams .
On Q4 FY2025: “Record fourth quarter revenue... first ever quarter exceeding $1 million in U.S. sales,” positioning for FY2026 with large customer orders and strengthened balance sheet via debt-to-equity conversions and warrant cash proceeds .

Not applicable; no public Q3 FY2025 earnings call transcript found in the available document catalog.

Wall Street consensus for Q3 FY2025 was unavailable or limited (no published EPS or revenue consensus counts observed). Values retrieved from S&P Global.*

Implications: With no formal consensus, investor comparisons rely on YoY/Sequential performances and margin trajectory .

Revenue inflected to $0.56M (+77.7% YoY) with gross margin expansion to 55.8%, signaling improved unit mix and pricing against prior quarter demo-related pressure .
Sequential improvement from Q2’s margin trough (24.1%) suggests normalization post sales model transition; monitoring sustainability of >50% gross margin is critical .
OpEx scale remains the principal headwind; near-term thesis depends on disciplined cost control while scaling channels (GSA, EU, large venues) .
International demand, notably India, is becoming a meaningful growth vector; track distributor performance and repeat orders .
Absence of guidance and consensus estimates shifts focus to execution milestones (EU pipeline conversion, government orders, airport/enterprise deployments) .
Liquidity modest at quarter-end ($0.80M) with ongoing capital needs disclosed; dilution/debt trade-offs are part of the medium-term capital plan .
Narrative catalysts: contract wins, EU commercialization steps, and proof points in aviation/government could drive sentiment and multiple expansion if margins hold .

Footnote: *Values retrieved from S&P Global.