What changed in this filing

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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 182 added, 80 removed, 465 unchanged (36% of the section changed)

3 unchanged sentences

(Unaudited)(in thousands, except share and per share data)

September 30,

Current assets:

46 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

$ 7,490 $ 7,851 $ 19,430 $ 19,850

Costs and expenses:

Cost of sales

3,829 4,444 10,281 11,462

Selling, general and administrative

3,207 3,225 9,895 9,815

Research and development

Operating loss

450 361 1,510 1,159

7,486 8,030 21,686 22,436

Operating income (loss)

4 ( 179 ) ( 2,256 ) ( 2,586 )

Interest income

Other income (expense), net

Loss before income taxes

311 323 1,127 968

Other (expense) income, net

( 5 ) ( 63 ) 15 1,576

Income (loss) before income taxes

310 81 ( 1,114 ) ( 42 )

Income tax expense

Net loss per common share:

Basic net loss per common share

Diluted net loss per common share

( 7 ) ( 1 ) ( 11 ) ( 18 )

Net income (loss)

$ 303 $ 80 $ ( 1,125 ) $ ( 60 )

Net income (loss) per common share:

Basic net income (loss) per common share

$ 0.01 $ 0.00 $ ( 0.04 ) $ ( 0.00 )

Diluted net income (loss) per common share

$ 0.01 $ 0.00 $ ( 0.04 ) $ ( 0.00 )

Weighted-average number of common shares outstanding:

31,074,000 30,708,000 30,890,000 30,526,000

31,293,000 30,848,000 30,890,000 30,526,000

See notes to condensed consolidated financial statements.

FUEL TECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Net income (loss)

$ 303 $ 80 $ ( 1,125 ) $ ( 60 )

Other comprehensive income (loss):

Foreign currency translation adjustments

Comprehensive loss

( 14 ) 106 132 ( 32 )

Comprehensive income (loss)

$ 289 $ 186 $ ( 993 ) $ ( 92 )

See notes to condensed consolidated financial statements.

2 unchanged sentences

(Unaudited)(in thousands of dollars or shares, as appropriate)

The following summarizes the changes in total stockholders' equity for the three and six months ended June 30, 2024:

The following summarizes the changes in total stockholders' equity for the three and nine months ended September 30, 2024:

Comprehensive

Balance at December 31, 2023

30,385 $ 313 $ 164,853 $ ( 117,529 ) $ ( 1,748 ) $ 76 $ ( 2,251 ) $ 43,714

— — — 281 — — — 281

Foreign currency translation adjustments

— — — — ( 143 ) — — ( 143 )

Stock compensation expense

— — 104 — — — — 104

Balance at March 31, 2024

30,385 $ 313 $ 164,957 $ ( 117,248 ) $ ( 1,891 ) $ 76 $ ( 2,251 ) $ 43,956

— — — ( 421 ) — — — ( 421 )

Foreign currency translation adjustments

— — — — 5 — — 5

Stock compensation expense

— — 124 — — — — 124

Common shares issued upon vesting of restricted stock units

406 4 ( 4 ) — — — — —

Taxes paid on behalf of equity award participants

( 83 ) — — — — — ( 95 ) ( 95 )

Balance at June 30, 2024

The following summarizes the changes in total stockholders' equity for the three and six months ended June 30, 2025:

30,708 $ 317 $ 165,077 $ ( 117,669 ) $ ( 1,886 ) $ 76 $ ( 2,346 ) $ 43,569

— — — 80 — — — 80

Foreign currency translation adjustments

— — — — 106 — — 106

Stock compensation expense

— — 109 — — — — 109

Balance at September 30, 2024

30,708 $ 317 $ 165,186 $ ( 117,589 ) $ ( 1,780 ) $ 76 $ ( 2,346 ) $ 43,864

The following summarizes the changes in total stockholders' equity for the three and nine months ended September 30, 2025:

Comprehensive

Balance at December 31, 2024

30,708 $ 317 $ 165,295 $ ( 119,472 ) $ ( 1,915 ) $ 76 $ ( 2,346 ) $ 41,955

— — — ( 739 ) — — — ( 739 )

Foreign currency translation adjustments

— — — — 135 — — 135

Stock compensation expense

— — 110 — — — — 110

Common shares issued upon vesting of restricted stock units

85 1 ( 1 ) — — — — —

Taxes paid on behalf of equity award participants

( 24 ) — — — — — ( 24 ) ( 24 )

Balance at March 31, 2025

30,769 $ 318 $ 165,404 $ ( 120,211 ) $ ( 1,780 ) $ 76 $ ( 2,370 ) $ 41,437

— — — ( 689 ) — — — ( 689 )

Foreign currency translation adjustments

— — — — 11 — — 11

Stock compensation expense

— — 102 — — — — 102

Common shares issued upon vesting of restricted stock units

429 4 ( 4 ) — — — — —

Taxes paid on behalf of equity award participants

( 123 ) — — — — — ( 198 ) ( 198 )

Balance at June 30, 2025

31,075 $ 322 $ 165,502 $ ( 120,900 ) $ ( 1,769 ) $ 76 $ ( 2,568 ) $ 40,663

— — — 303 — — — 303

Foreign currency translation adjustments

— — — — ( 14 ) — — ( 14 )

Stock compensation expense

— — 57 — — — — 57

Balance at September 30, 2025

31,075 $ 322 $ 165,559 $ ( 120,597 ) $ ( 1,783 ) $ 76 $ ( 2,568 ) $ 41,009

See notes to condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities

$ ( 1,125 ) $ ( 60 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Non-cash interest income on held-to-maturity securities

( 91 ) ( 109 )

Stock-based compensation, net of forfeitures

1 unchanged sentence

Accounts receivable

3,066 ( 845 )

Employee retention credit receivable

1,677 ( 1,677 )

Prepaid expenses, other current assets and other non-current assets

1 unchanged sentence

Accrued liabilities and other non-current liabilities

516 ( 1,215 )

Net cash provided by (used in) operating activities

4,583 ( 1,785 )

Investing Activities

Purchases of equipment and patents

( 231 ) ( 316 )

Purchases of debt securities

( 10,004 ) ( 14,072 )

Maturities of debt securities

11,000 11,000

Net cash provided by (used in) investing activities

765 ( 3,388 )

Financing Activities

Taxes paid on behalf of equity award participants

( 222 ) ( 95 )

Net cash used in financing activities

( 222 ) ( 95 )

Effect of exchange rate fluctuations on cash

Net increase (decrease) in cash and cash equivalents

5,167 ( 5,304 )

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

$ 13,677 $ 12,274

See notes to condensed consolidated financial statements.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

September 30, 2025

(in thousands, except share and per-share data)

16 unchanged sentences

All significant intercompany transactions and balances have been eliminated.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025 .

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025 .

For further information, refer to the audited consolidated financial statements and footnotes thereto included in Fuel Tech’s Annual Report on Form 10 -K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission.

5 unchanged sentences

GAAP on accounting for government assistance to for-profit business entities, we account for the ERC by analogy to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance.

In accordance with IAS 20, management determined it has reasonable assurance for receipt of the ERC and recorded the ERC benefit of $ 1,677 as other income on the Statement of Operations for the six months ended June 30, 2024 .

We received payment for $ 1,232 of the outstanding receivable during the three months ended June 30, 2025 .

The remaining ERC benefit receivable of $ 511 , which includes an additional $ 67 of interest receivable recorded during the three months ended June 30, 2025, is presented as a component of Accounts receivable on the Balance Sheet as of June 30, 2025 .

In accordance with IAS 20, management determined it had reasonable assurance for receipt of the ERC and recorded the ERC benefit of $ 1,677 as other income on the Statement of Operations for the nine months ended September 30, 2024 .

We received full payment of this benefit during the nine months ended September 30, 2025 .

Summary of Significant Accounting Policies

3 unchanged sentences

A portion of the funds invested are restricted as collateral under the Investment Collateral Security agreement (see Note 10 ).

At June 30, 2025 , the amount of funds collateralized under the Investment Collateral Security agreement is $ 4,385 relating to existing standby letters of credit that is comprised of $ 2,933 with varying maturity dates that expire no later than June 30, 2026 and $ 1,452 with a latest maturity date of March 31, 2027.

At September 30, 2025 , the amount of funds collateralized under the Investment Collateral Security agreement is $ 4,711 relating to existing standby letters of credit that is comprised of $ 2,879 with varying maturity dates that expire no later than September 30, 2026 and $ 1,832 with a latest maturity date of October 8, 2028.

We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash equivalents.

12 unchanged sentences

Held-to-maturity debt securities:

June 30, 2025

September 30, 2025

December 31, 2024

4 unchanged sentences

$ 20,217 $ 21,076

The following table provides the amortized cost and fair value of debt securities by maturities at June 30, 2025 :

The following table provides the amortized cost and fair value of debt securities by maturities at September 30, 2025 :

Amortized Cost

5 unchanged sentences

Inventories consist primarily of equipment constructed for resale and spare parts and are stated at the lower of cost or net realizable value, using the weighted-average cost method.

At June 30, 2025 and December 31, 2024 , inventory included equipment constructed for resale of $ 176 and spare parts, net of reserves, of $ 440 and $ 221 , respectively.

At September 30, 2025 and December 31, 2024 , inventory included equipment constructed for resale of $ 176 and spare parts, net of reserves, of $ 226 and $ 221 , respectively.

Usage is recorded in cost of sales in the period that parts were issued to a project, used to service equipment, or sold to customers.

Equipment constructed for resale that is in process is recorded in Other assets.

In process equipment for inventory recorded as Other assets was $ 44 and $ 44 as of June 30, 2025 and December 31, 2024 , respectively.

In process equipment for inventory recorded as Other assets was $ 32 and $ 44 as of September 30, 2025 and December 31, 2024 , respectively.

In ventories are periodically evaluated to identify obsolete or otherwise impaired parts and are written off when management determines usage is not probable.

14 unchanged sentences

(Write-offs) / Recoveries

At June 30, 2025

At September 30, 2025

Disaggregated Revenue by Product Technology

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Air Pollution Control

13 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

United States

13 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Products transferred at a point in time

9 unchanged sentences

These assets are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period.

At June 30, 2025 , December 31, 2024 , and December 31, 2023 , contract assets for APC technology projects were approximately $ 1,064 , $ 2,075 , and $ 2,285 , respectively.

At September 30, 2025 , December 31, 2024 , and December 31, 2023 , contract assets for APC technology projects were approximately $ 1,300 , $ 2,075 , and $ 2,285 , respectively.

The Company will periodically bill in advance of costs incurred before revenue is recognized, resulting in contract liabilities.

These liabilities are reported on the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period.

Contract liabilities were $ 1,683 , $ 721 , and $ 1,279 at June 30, 2025 , December 31, 2024 , and December 31, 2023 , respectively, and are included in other accrued liabilities on the Condensed Consolidated Balance Sheets.

Changes in the contract asset and liability balances during the six -month period ended June 30, 2025 were not materially impacted by any other items other than amounts billed and revenue recognized as described previously.

Revenue recognized that was included in the contract liability balance at the beginning of the period was $ 171 and $ 543 for the three and six months ended June 30, 2025 , respectively, and $ 438 and $ 1,221 for the three and six months ended June 30, 2024 , respectively, which represented revenue from progress towards completion of our APC technology contracts.

As of June 30, 2025 and December 31, 2024 , we had no construction contracts in progress that were identified as a loss contract.

Contract liabilities were $ 2,200 , $ 721 , and $ 1,279 at September 30, 2025 , December 31, 2024 , and December 31, 2023 , respectively, and are included in other accrued liabilities on the Condensed Consolidated Balance Sheets.

Changes in the contract asset and liability balances during the nine -month period ended September 30, 2025 were not materially impacted by any other items other than amounts billed and revenue recognized as described previously.

Revenue recognized that was included in the contract liability balance at the beginning of the period was $ 1 and $ 544 for the three and nine months ended September 30, 2025 , respectively, and $ 20 and $ 1,241 for the three and nine months ended September 30, 2024 , respectively, which represented revenue from progress towards completion of our APC technology contracts.

As of September 30, 2025 and December 31, 2024 , we had no construction contracts in progress that were identified as a loss contract.

Remaining Performance Obligations

Remaining performance obligations represents the transaction price of APC technology booked orders for which work has not been performed.

As of June 30, 2025 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 7,811 .

As of September 30, 2025 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 9,472 .

The Company expects to recognize revenue on approximately $ 7,134 of the remaining performance obligations over the next 12 months with the remaining recognized thereafter.

1 unchanged sentence

The components of accounts receivable are as follows:

June 30, 2025

September 30, 2025

December 31, 2024

11 unchanged sentences

This action was part of Fuel Tech’s ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs, and drive profitability for the Company on a global basis.

The transition associated with the suspension of the APC business which has taken place through June 30, 2025 includes staff rationalization and reduction, supplier and partner engagement, and the monetization of certain assets.

The transition associated with the suspension of the APC business which has taken place through September 30, 2025 includes staff rationalization and reduction, supplier and partner engagement, and the monetization of certain assets.

The remaining transition activities include the execution of the activities to satisfy the requirements for the remaining APC projects in China (with a backlog totaling approximately $ 3 ) and those related to subsidiary closure.

The following table presents our revenues and net loss for the three and six months ended June 30, 2025 and 2024 in China as follows:

The following table presents our revenues and net loss for the three and nine months ended September 30, 2025 and 2024 in China as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Total revenues

1 unchanged sentence

( 12 ) ( 13 ) ( 42 ) ( 41 )

The following table presents net assets in China as of June 30, 2025 and December 31, 2024 :

June 30, 2025

The following table presents net assets in China as of September 30, 2025 and December 31, 2024 :

September 30, 2025

December 31, 2024

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Foreign currency translation

Balance at beginning of period

$ ( 1,769 ) $ ( 1,886 ) $ ( 1,915 ) $ ( 1,748 )

Other comprehensive income (loss):

Foreign currency translation adjustments (1)

( 14 ) 106 132 ( 32 )

Total accumulated other comprehensive loss

$ ( 1,783 ) $ ( 1,780 ) $ ( 1,783 ) $ ( 1,780 )

In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings.

Treasury Stock

Common stock held in treasury totaled 1,206,741 and 1,059,056 with a cost of $ 2,568 and $ 2,346 at June 30, 2025 and December 31, 2024 , respectively.

Common stock held in treasury totaled 1,206,741 and 1,059,056 with a cost of $ 2,568 and $ 2,346 at September 30, 2025 and December 31, 2024 , respectively.

These shares were withheld from employees to settle personal tax withholding obligations that arose as a result of restricted stock units that vested.

3 unchanged sentences

Out-of-money stock options and warrants are excluded from diluted earnings per share because they are unlikely to be exercised and would be anti- dilutive if they were exercised.

For the three and six months ended June 30, 2025 and 2024 , basic earnings per share is equal to diluted earnings per share because all outstanding stock awards, warrants, and convertible loan notes are considered anti-dilutive during periods of net loss.

The following table sets forth the weighted-average shares used in calculating the earnings per share for the three and six months ended June 30, 2025 and 2024 :

For the three months ended September 30, 2025 and 2024, basic earnings per share has been adjusted to include dilutive options and RSUs.

For the nine months ended September 30, 2025 and 2024, basic earnings per share is equal to diluted earnings per share because all outstanding stock awards, warrants, and convertible loan notes are considered anti-dilutive during periods of net loss.

The following table sets forth the weighted-average shares used in calculating the earnings per share for the three and nine months ended September 30, 2025 and 2024 :

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Basic weighted-average shares

1 unchanged sentence

Unexercised options and unvested RSUs

219,000 140,000 — —

Diluted weighted-average shares

31,293,000 30,848,000 30,890,000 30,526,000

For the three and six months ended June 30, 2025 , Fuel Tech had weighted-average outstanding equity awards of 36,800 and 71,300 , respectively, and warrants of 2,850,000 in both periods, which were antidilutive or represent out-of-the-money options for the purpose of the calculation of diluted earnings per share.

For the three and six months ended June 30, 2025 , Fuel Tech had incremental equity awards of 316,100 and 467,100 , respectively, that were excluded from the computation of diluted earnings per share as the inclusion of such would have been anti-dilutive due to a net loss in the period.

For the three and nine months ended September 30, 2025 , Fuel Tech had warrants of 2,850,000 which were antidilutive for the purpose of the calculation of diluted earnings per share.

For the nine months ended September 30, 2025 , Fuel Tech also had weighted-average outstanding equity awards of 73,800 which were antidilutive or represent out-of-the-money options for the purpose of the calculation of diluted earnings per share.

For the nine months ended September 30, 2025 , Fuel Tech had incremental equity awards of 297,300 that were excluded from the computation of diluted earnings per share as the inclusion of such would have been anti-dilutive due to a net loss in the period.

These equity awards could potentially dilute basic earnings per share in future years.

For the three and six months ended June 30, 2024 , Fuel Tech had weighted-average outstanding equity awards of 198,400 and 284,100 , respectively, and warrants of 2,850,000 in both periods, which were antidilutive or represent out-of-the-money options for the purpose of the calculation of diluted earnings per share.

For the three and six months ended June 30, 2024 , Fuel Tech had incremental equity awards of 802,000 and 933,400 , respectively, that were excluded from the computation of diluted earnings per share as the inclusion of such would have been anti-dilutive due to a net loss in the period.

For the three and nine months ended September 30, 2024 , Fuel Tech had weighted-average outstanding equity awards of 132,000 and 283,700 , respectively, and warrants of 2,850,000 in both periods, which were antidilutive or represent out-of-the-money options for the purpose of the calculation of diluted earnings per share.

For the nine months ended September 30, 2024 , Fuel Tech had incremental equity awards of 279,000 that were excluded from the computation of diluted earnings per share as the inclusion of such would have been anti-dilutive due to a net loss in the period.

These equity awards could potentially dilute basic earnings per share in future years.

6 unchanged sentences

There are a maximum of 2,883,057 shares that may be issued or reserved for awards to participants under the Incentive Plans.

As of June 30, 2025 , Fuel Tech had 2,668,885 shares available for issuance under the Incentive Plans.

We did not record any excess tax benefits within income tax expense for the three and six months ended June 30, 2025 and 2024 .

Given the Company has a full valuation allowance on its deferred tax assets, there were no excess tax benefits to record for the three and six months ended June 30, 2025 and 2024 .

As of September 30, 2025 , Fuel Tech had 2,668,885 shares available for issuance under the Incentive Plans.

We did not record any excess tax benefits within income tax expense for the three and nine months ended September 30, 2025 and 2024 .

Given the Company has a full valuation allowance on its deferred tax assets, there were no excess tax benefits to record for the three and nine months ended September 30, 2025 and 2024 .

In addition, we account for forfeitures of awards based on an estimate of the number of awards expected to be forfeited and adjust the estimate when it is no longer probable that the employee will fulfill the service condition.

Stock-based compensation is included in selling, general, and administrative costs in our Condensed Consolidated Statements of Operations.

The components of stock-based compensation for the three and six months ended June 30, 2025 and 2024 were as follows:

The components of stock-based compensation for the three and nine months ended September 30, 2025 and 2024 were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Stock options and restricted stock units, net of forfeitures

13 unchanged sentences

and ( 3 ) expected life of the option – an estimate based on historical experience including the effect of employee terminations.

Stock option activity for Fuel Tech’s Incentive Plans for the six months ended June 30, 2025 was as follows:

Stock option activity for Fuel Tech’s Incentive Plans for the nine months ended September 30, 2025 was as follows:

Weighted- Average

4 unchanged sentences

( 105,000 ) 2.44

Outstanding on June 30, 2025

Outstanding on September 30, 2025

71,000 $ 1.20 1.60 $ 128

Exercisable on June 30, 2025

Exercisable on September 30, 2025

71,000 $ 1.20 1.60 $ 128

As of June 30, 2025 , there was no unrecognized compensation cost related to non-vested stock options granted under the Incentive Plans.

As of September 30, 2025 , there was no unrecognized compensation cost related to non-vested stock options granted under the Incentive Plans.

Restricted Stock Units

10 unchanged sentences

All RSUs are valued at the date of grant based on the closing price of the Company’s common stock on the grant date.

At June 30, 2025 , there is $ 1,121 of unrecognized compensation cost related to all non-vested share-based compensation arrangements granted under the Incentive Plan.

At September 30, 2025 , there is $ 1,064 of unrecognized compensation cost related to all non-vested share-based compensation arrangements granted under the Incentive Plan.

That cost is expected to be recognized over the remaining requisite service period of 1.87 yea rs.

A summary of restricted stock unit activity for the six months ended June 30, 2025 is as follows:

A summary of restricted stock unit activity for the nine months ended September 30, 2025 is as follows:

Weighted Average

3 unchanged sentences

( 425,100 ) 1.26

Unvested restricted stock units at June 30, 2025

Unvested restricted stock units at September 30, 2025

1,109,222 $ 1.06

The fair value of restricted stock that vested during the six -month period ended June 30, 2025 was $ 654 .

The fair value of restricted stock that vested during the nine -month period ended September 30, 2025 was $ 654 .

Deferred Directors Fees

2 unchanged sentences

In accordance with Accounting Standards Codification (ASC) 718, Fuel Tech accounts for these awards as equity awards as opposed to liability awards.

During the six -month periods ended June 30, 2025 and 2024 , Fuel Tech recorded no stock-based compensation expense under the Deferred Plan.

The following table summarizes information about warrants outstanding and exercisable at June 30, 2025 :

Exercise Price

Number Outstanding/Exercisable

Weighted Average Remaining Life in Years

Weighted Average Exercise Price

During the nine -month periods ended September 30, 2025 and 2024 , Fuel Tech recorded no stock-based compensation expense under the Deferred Plan.

The following table summarizes information about warrants outstanding and exercisable at September 30, 2025 :

Exercise Price Number Outstanding/Exercisable Weighted Average Remaining Life in Years Weighted Average Exercise Price

$5.10 2,500,000 0.87 $ 5.10

$6.45 350,000 0.87 $ 6.45

Debt Financing

2 unchanged sentences

There are no financial covenants set forth in the Investment Collateral Security agreement.

At June 30, 2025 , the Company had outstanding standby letters of credit totaling approximately $ 2,923 under the Investment Collateral Security agreement.

At June 30, 2025 , the investments held as collateral totaled $ 4,385 .

At September 30, 2025 , the Company had outstanding standby letters of credit totaling approximately $ 3,141 under the Investment Collateral Security agreement.

At September 30, 2025 , the investments held as collateral totaled $ 4,711 .

Fuel Tech is committed to reimbursing the issuing bank for any payments made by the bank under these instruments.

19 unchanged sentences

Air Pollution

Three months ended June 30, 2025

Three months ended September 30, 2025

Control Segment

11 unchanged sentences

Air Pollution

Three months ended June 30, 2024

Three months ended September 30, 2024

Control Segment

11 unchanged sentences

Air Pollution

Six months ended June 30, 2025

Nine months ended September 30, 2025

Control Segment

11 unchanged sentences

Air Pollution

Six months ended June 30, 2024

Nine months ended September 30, 2024

Control Segment

15 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

United States

2 unchanged sentences

$ 7,490 $ 7,851 $ 19,430 $ 19,850

September 30,

United States

3 unchanged sentences

The components of other accrued liabilities are as follows:

June 30, 2025

September 30, 2025

December 31, 2024

18 unchanged sentences

This approach provides an aggregate warranty accrual that is historically aligned with actual warranty claims experienced.

There was no change in the warranty liability balance included in the other accrued liabilities line of the Condensed Consolidated Balance Sheets during the six months ended June 30, 2025 and 2024 .

The warranty liability balance was $ 159 at June 30, 2025 and December 31, 2024 .

The Company’s effective tax rate is approximately 0.3 % and 13.8 % for the six -month periods ended June 30, 2025 and 2024 , respectively.

The Company's effective tax rate differs from the statutory federal tax rate of 21 % for the six -month periods ended June 30, 2025 and 2024 primarily due to a full valuation allowance recorded on our United States, China and Italy deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future.

There was no change in the warranty liability balance included in the other accrued liabilities line of the Condensed Consolidated Balance Sheets during the nine months ended September 30, 2025 and 2024 .

The warranty liability balance was $ 159 at September 30, 2025 and December 31, 2024 .

The Company’s effective tax rate is approximately 1.0 % and 42.9 % for the nine -month periods ended September 30, 2025 and 2024 , respectively.

The Company's effective tax rate differs from the statutory federal tax rate of 21 % for the nine -month periods ended September 30, 2025 and 2024 primarily due to a full valuation allowance recorded on our United States, China and Italy deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future.

Further, our effective tax rate differs from the statutory federal tax rate due to state taxes, differences between U.S.

and foreign tax rates, foreign losses incurred with no related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the six -month periods ended June 30, 2025 and 2024 .

and foreign tax rates, foreign losses incurred with no related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the nine -month periods ended September 30, 2025 and 2024 .

On July 4, 2025, the One Big Beautiful Bill Act was signed into law.

2 unchanged sentences

The Company is currently evaluating the full effect of the legislation, but does not expect it to have a material impact on our Consolidated Financial Statements.

Subsequent Events

On October 3, 2025 the Company purchased certain intellectual property assets of Wahlco, Inc., a leading environmental equipment and services company, for a purchase price of $ 350 .

The intellectual property assets consist of technology rights, patents, and trademarks relating to Wahlco, Inc.

FUEL TECH, INC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements