CitroTech Q1 2026 Earnings Report

CitroTech EPS Results

• Actual EPS: -$0.33
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

CitroTech Revenue Results

• Actual Revenue: $0.34 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

CitroTech Announcement Details

• Quarter: Q1 2026
• Date: 5/14/2026
• Time: Before Market Opens
• Conference Call Date: Friday, May 15, 2026
• Conference Call Time: 9:00AM ET

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CitroTech Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: CitroTech said it is moving from technology validation into scaled commercialization, with management framing Q1 as a transition from development-stage activity toward real customer deployment and structured commercial engagement.
• Positive Sentiment: The company announced the formation of Hexatech LLC, a 50/50 joint venture with Hexion, which management said validates CitroTech’s IP and gives it access to Hexion’s manufacturing, sales, distribution, and global customer relationships in wood products.
• Positive Sentiment: Management emphasized a large opportunity in fire-retardant treated lumber and engineered wood, including OSB, plywood, and mass timber, and said the product can be embedded into wood fibers without pressure treating or weakening the material.
• Neutral Sentiment: CitroTech highlighted its ground-based wildfire prevention strategy, positioning its non-phosphate chemistry as a recurring-revenue alternative to legacy retardants for utilities, roadsides, rail corridors, and other infrastructure applications. The company said this market could eventually reach $300 million-$500 million in the U.S.
• Positive Sentiment: The company also spotlighted CitroSafe, a stationary wildfire defense system aimed at homes and commercial properties, and said its proof-of-concept work with an insurance broker could support recurring adoption tied to insurance and resilience needs.

Presentation

[Operator]

Greetings, and welcome to the CitroTech first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brett Maas of Hayden IR. Thank you, sir. You may begin.

[Brett Maas, Managing Partner at Hayden IR]

Thank you, operator. The call today will be hosted by Wes Bolsen, Chief Executive Officer. We will direct all questions to be sent to citr@haydenir.com and answered following this call. We appreciate the opportunity to review the first quarter financial results and recent business highlights. Before we get started, let me remind you this call is being recorded and webcast. During this call, management may make forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in the earnings released early today, Friday, May 15th, which applies to the content of the call. I'd like to now turn the call over to Wes Bolsen, CEO. Wes, please go ahead.

[Wes Bolsen, CEO at CitroTech]

Thank you, Brett. Good morning, everyone, and thank you for joining CitroTech's first quarter quarterly earnings call as an NYSE American-listed company. This is an important moment for CitroTech and a critical time in the markets we serve. Wildfire prevention, infrastructure resilience, and environmentally safer chemistry solutions are no longer emerging themes. They're becoming national and global priorities. Governments, utilities, builders, insurers, and land managers are converging on a shared requirement for solutions that are not only effective, but also environmentally sustainable, scalable, and economically viable. CitroTech sits at the intersection of these needs. Our mission is straightforward. We're commercializing environmentally safer chemistry solutions that protect people, infrastructure, forest, utilities, and building materials from fire risk while reducing the environmental liabilities associated with legacy phosphate and borate-based solutions.

[Wes Bolsen, CEO at CitroTech]

At a practical level, CitroTech delivers this through a platform of fire protection technologies that's chemistry-driven, environmentally safe, scalable, and designed to perform across multiple environments. We're in the early stages of commercialization, transitioning from technology validation into real-world deployment. Over the past several quarters, we've moved from proving the science and securing certifications to building the operational manufacturing and commercial foundation required to scale. That includes developing repeatable use cases across wildfire prevention, advancing manufacturing readiness for industrial applications, and establishing early customer relationships across government, infrastructure, and private sector channels. We remain early in the revenue ramp, this quarter reflects a meaningful transition in the composition of our business from primarily development stage activities towards initial commercial execution and structured customer engagement. We expect this progression to continue as we move through 2026.

[Wes Bolsen, CEO at CitroTech]

At quarter end, we held cash and cash equivalents of $4.3 million, providing us with a solid foundation to execute against our commercialization strategy. Our commercialization strategy is organized around three core pillars: manufactured wood products and lumber treatment, ground-based wildfire applications, and stationary defense systems. Each represents a large and growing market opportunity unified by the same underlying chemistry platform, shared IP, manufacturing capabilities, and a common objective to deliver scalable, environmentally responsible fire protection solutions across multiple use cases. Let me walk through each pillar, focusing on the long-term market opportunity that is associated with each of these. Let me begin with manufactured wood products and lumber treatment, which we believe represent one of the most transformative long-term commercialization opportunities for CitroTech.

[Wes Bolsen, CEO at CitroTech]

The construction and the building materials industries are increasingly confronting the realities of wildfire exposure, stricter building codes, rising insurance pressures, and growing demand for environmentally safer fire-resistant materials. At the same time, many existing fire retardant-treated wood solutions rely on borate-based chemistries and pressure treating that can negatively impact wood strength, structural integrity, or long-term performance. CitroTech is approaching this differently. Our chemistry platform is designed to create Class A fire-rated lumber and engineered wood products without weakening the wood fibers or compromising structural performance. This goes beyond being simply a surface coating solution and becomes a product that can soak into the cellulosic fibers of wood products. This opens up possibilities for products like OSB board, plywood, and mass timber to now be produced with fire resiliency built in.

[Wes Bolsen, CEO at CitroTech]

CitroTech's chemistry platform is recognized under the EPA's Safer Choice program and designated to meet stringent environmental and human safety concerns. It penetrates the structure of the material itself, changing combustion behavior throughout the wood rather than just having a coating or something on the surface. That distinction matters significantly for builders, architects, contractors, engineered wood manufacturers, and insurers. In early 2026, we began working with lumber and building material companies to utilize CitroTech formulations in the manufacturing of Class A fire-rated lumber and building materials. Commercial engagement is growing from OSB board manufacturers, engineered wood producers that are interested in integrating CitroTech directly into the production process. CitroTech formulations can be applied during manufacturing, included directly into wood strands and veneers used in panel production, enabling fire protection to become embedded within the product itself. In April, we announced the formation of HexiTech LLC, our joint venture with Hexion.

[Wes Bolsen, CEO at CitroTech]

The joint venture aims to rapidly accelerate the sales of CitroTech into some of the largest wood product companies globally. The formation of HexiTech validates both our chemistry platform and the strength of our intellectual property portfolio. Hexion is a globally recognized leader in specialty resins and engineered wood technologies, and their partnership provides substantial industrial credibility and commercialization capability. In the 50/50 JV, CitroTech brings world-leading IP, and Hexion brings all the manufacturing, sales, distribution, and customer relationships. Hexion is owned by American Securities and has a tremendous leadership team in place to deliver on this venture, with both companies being all in. Michael Lefenfeld, the CEO of Hexion, will be joining me on the three-member board of the Delaware LLC. Even in the first few weeks since its formation, we are highly impressed with the engagement of the entire Hexion team.

[Wes Bolsen, CEO at CitroTech]

Together, we believe we can fundamentally change how fire-resistant wood products are manufactured. The opportunity in fire retardant treated wood has the potential to generate highly scalable recurring revenues as treated wood products move into broader residential, commercial, infrastructure, and mass timber applications. Near-term opportunities include a portion of more than 1.2 billion sq ft of OSB-related production annually, with additional adjacent expansion opportunities across siding, engineered wood, treated lumber, mass timber. When an end customer decides to adopt CitroTech into their manufacturing process for fire retardant treated wood, it's not a $1 million or $2 million a year sale, but it could be tens of millions of dollars at full commercial adoption.

[Wes Bolsen, CEO at CitroTech]

What I want to make sure the market understands is that CitroTech would have been able to form a commercial relationship with a large and highly respected wood product company in the United States, but it might have involved some exclusivity. The joint venture with Hexion enables us to work with many of the largest wood products companies in the world now, all at the same time, given Hexion's global reach and capability. Our second pillar is ground-based retardant fire inhibitor applications. Historically, the wildfire industry has largely centered around reactive suppression, responding to fires after ignition through aerial deployment of traditional red phosphate-based retardants. CitroTech is approaching the market from a prevention-first perspective. Our goal is to deliver what we believe is the only long-term fire inhibitor specifically designed for repeated environmental applications supporting proactive ignition prevention and asset protection, not simply suppression. That distinction is becoming increasingly important.

[Wes Bolsen, CEO at CitroTech]

The fire community is recognizing that phosphate-based retardants, while potentially effective in suppression scenarios, are not ideal for repeated environmental deployment due to concerns around aquatic toxicity, heavy metals, long-term environmental impact. CitroTech's non-phosphate chemistry was designed specifically to address those concerns. Our products are intended for repeated use in utility corridors along roadsides and ingress and egress routes, railroad right-of-way, tribal lands, parks, commercial properties, critical infrastructure, and residential areas where environmental stewardship matters just as much as fire protection. We believe this fundamentally changes the economics of wildfire management. Instead of relying solely on event-driven suppression spending, CitroTech is building toward predictable, recurring wildfire prevention revenues. That recurring prevention model is strategically important. Utilities, state and federal transportation agencies, counties, municipalities, tribal governments, and state and federal firefighting agencies increasingly want non-phosphate proactive mitigation programs, not simply emergency response after ignition.

[Wes Bolsen, CEO at CitroTech]

In the event of red flag warnings and pending public safety power shutoffs, utilities are now understanding that CitroTech is the first and only EPA Safer Choice recognized solution to help prevent ignitions and protect utility poles, other assets from an approaching wildfire. Utilities will start to make their own fire breaks by applying CitroTech under their lines and around their poles. This can all be funded through their vegetation management, utility wildfire mitigation plans, and even dedicated safety and infrastructure protection teams. CitroTech can be deployed through a wide range of methodologies, including existing fire equipment, agricultural sprayers through skid-mounted pickup and utility vehicles, hydroseeders along roadsides, and even new drone applications, given CitroTech has a viscosity that is close to water. That flexibility dramatically expands our addressable market and supports scalable deployment across multiple customer segments.

[Wes Bolsen, CEO at CitroTech]

Recent fires reinforce the importance of ground-based prevention strategies in areas where aerial suppression alone may not be sufficient or practical. Aerial applications can only be initiated from sunrise to sunset and when the winds are not blowing too much, which is the worst-case scenario for a wildfire. CitroTech can be applied through multiple ground-based partnerships 24 hours a day, seven days a week, even in high-wind scenarios, to put environmentally safe firebreaks ahead of the fire. This was well demonstrated last fire season, where CitroTech was the only safe fire inhibitor that was applied around homeless encampments and along some roadsides in San Diego. We will expand the success of what we saw fire chiefs seeing in San Diego into other parts of California during the 2026 fire season. We're also seeing a meaningful shift among service providers historically using phosphate-based solutions.

[Wes Bolsen, CEO at CitroTech]

Many are now moving towards CitroTech for ground-based applications due to growing liability concerns associated with knowingly and repeatedly applying phosphate-based retardants around residential areas and critical infrastructure. What is especially encouraging is that we're now seeing meaningful real-world adoption across California fire departments and related agencies. California and CitroTech's home state of Colorado are two of the largest and most environmentally sensitive wildfire locations in the U.S. Communities, metropolitan fire chiefs, utilities, municipalities are increasingly focused on prevention strategies that are environmentally responsible and operationally scalable. We believe CitroTech is emerging as a clear choice for those customers. Importantly, we already see California fire agencies progressing towards deployment of CitroTech for wildfire prevention and protection applications while continuing to use the traditional red retardants primarily for active suppression scenarios.

[Wes Bolsen, CEO at CitroTech]

We believe those two markets can coexist, but prevention spending is where we see the largest long-term commercialization opportunity and where phosphates can no longer really be repeatedly applied. Another important development is the formation of the new Office of Wildland Fire and broader restructuring efforts around a unified federal wildfire response framework. We believe this modernization creates opportunities for innovation, competition, and new technologies to gain traction. CitroTech has established strong relationships with the new Office of Wildland Fire, and we believe the market increasingly wants a credible second public company to bring new technology and innovation into the wildfire prevention space. We're also seeing strong engagement with the Department of the Interior ecosystem, including evaluations that involve tribal nations under the Bureau of Indian Affairs. The communities have expressed significant interest in environmentally safer wildfire prevention technologies that avoid phosphate accumulation in soil and water systems.

[Wes Bolsen, CEO at CitroTech]

We believe not only the U.S. Department of Agriculture and CAL FIRE, but also the Department of Interior is a substantial long-term commercialization opportunity for CitroTech. We think the ground-based application opportunity could represent a $300 million-$500 million market opportunity in the United States when it's fully adopted where it should be. We think this could go across roadsides, utilities, federal and state corridors. We believe this is importantly a recurring revenue model, though. Finally, the third pillar of what CitroTech is bringing is around stationary systems. We call this our CitroSafe system, a proactive wildfire defense system designed for residential and commercial properties using self-contained perimeter protection systems integrated with CitroTech chemistry solutions. We believe this addresses one of the fastest growing challenges in the wildfire ecosystem today, insurability. Insurance carriers are increasingly reducing coverage or exiting wildfire-prone regions entirely.

[Wes Bolsen, CEO at CitroTech]

Property owners, communities, and commercial operators are now searching for practical risk mitigation solutions that can improve resiliency and potentially support insurance availability. CitroSafe was designed specifically to address this challenge. Unlike traditional water-only systems, CitroSafe uses our long-term fire inhibitor chemistry that remains active after water evaporation and is designed to function independently with dedicated tank systems during power outages and emergency conditions. We believe this creates a differentiated value proposition for homeowners, insurers, builders, HOAs, utilities, and commercial property operators that can't have a water-based system taking precious water away from our firefighting community during an event. Our ongoing proof-of-concept initiative with a major insurance broker demonstrates the broader opportunity to align wildfire mitigation technologies with insurance risk management strategies. We believe this creates the potential for scalable recurring adoption models extending well beyond just traditional fire agencies and their purchasing cycles.

[Wes Bolsen, CEO at CitroTech]

Importantly, it expands CitroTech from a product company into a broader wildfire resilience platform. Our strategy is increasingly focused on top-down integration into new developments, commercial construction, HOA communities, insurance-driven deployment models. As outlined in our investor presentation, we're targeting some of the nation's largest home builders, custom builders, architects, HOA developments, home hardening partners. We believe this will lead to recurring CitroTech chemical sales and reapplication revenues. What we're really building is a scalable commercialization platform. As we look across these three pillars, what becomes increasingly clear is CitroTech is building far more than a single product wildfire company. We're building a scalable commercialization platform around environmentally safer fire protection chemistry. What is particularly important is that each pillar reinforces the others. Lumber protection validates manufacturing scalability. Ground-based deployments validate field performance. Stationary systems validate recurring property protection applications.

[Wes Bolsen, CEO at CitroTech]

Together, these initiatives expand market awareness, strengthen commercial relationships, create multiple pathways towards recurring revenue generation. You may have seen that CitroTech is also laying the groundwork for future products through our CitroTech Textiles business or CitroTex. This is based on a promising breakthrough polymer that allows for wash durable retardant fabrics. The polymer IP was developed under the direction of Dr. Jaime Grunlan of Texas A&M University. Dr. Grunlan is truly one of the world's foremost polymer chemists. Through a small funded research program, CitroTech is exploring opportunities for near-term commercialization of wash durable fire retardant fabrics. This platform could allow hospital workers, welders, firefighters, and other heroes in the workforce to safely perform their jobs with the best and safest chemistry across a range of textiles.

[Wes Bolsen, CEO at CitroTech]

We believe this integrated model positions CitroTech to participate across multiple segments of the fire protection and infrastructure resilience markets while leveraging a common technology platform and supply chain. Importantly, we believe we're now moving beyond early-stage validation and into the early stages of scaled commercialization. The long-term market drivers supporting our business have never been stronger. Wildfires are increasing in both frequency and severity. Population growth continues expanding in the wildland-urban interface. Utilities and municipalities are under growing pressure to harden infrastructure, and regulatory standards continue moving towards safer and more environmentally responsible fire protection solutions. We believe CitroTech is uniquely positioned within this evolving landscape because our platform addresses multiple high-growth segments simultaneously. We're not trying to create demand for a new problem. We're delivering solutions to problems that are already accelerating globally.

[Wes Bolsen, CEO at CitroTech]

With validated technology, meaningful certifications, expanding intellectual property, growing commercial partnerships, and increasing market awareness, we believe CitroTech is positioned to capture a meaningful share of this expanding market opportunity. At the parent level, CitroTech saw some events announced in the last month. The first is a deep belief in our company by one of our largest investors, BoltRock Holdings, who's represented on our board by Mr. Craig Huff. BoltRock made the decision to convert their debt into common shares in April, given the significant upside they see for the company. We've now retired our corporate debt. Looking ahead, our priorities for 2026 are centered on execution, operational scale, and continued market adoption across each of our three growth pillars.

[Wes Bolsen, CEO at CitroTech]

As wildfire activity intensifies and commercial channels continue to expand, we expect revenue growth to accelerate alongside broader deployment of our technologies across wildfire prevention, lumber protection, and property defense applications. To support that growth, we anticipate raising some strategic and opportunistic funds for measured investments in manufacturing scale, sales infrastructure, supply chain development, and strategic partnerships, all designed to strengthen our ability to support larger commercial opportunities and long-term customer relationships. At the same time, innovation remains central to our strategy as we continue advancing next-generation formulations and evaluating additional applications for our chemistry platform across adjacent industrial and infrastructure markets. While Q1 wildfire prevention activity began somewhat slower than the extraordinary conditions experienced following the Eaton and Palisades fire last year, the broader market backdrop remains highly constructive.

[Wes Bolsen, CEO at CitroTech]

Wildfire risk continues expanding geographically, infrastructure hardening is becoming an increasingly urgent priority, and communities, utilities, and government agencies are continuing to shift toward proactive prevention and resiliency strategies. Those trends continue to support growing demand for environmentally responsible fire protection solutions. As a company, CitroTech is approaching an important inflection point. Over the past several years, we've validated the science, secured meaningful certifications, expanded our intellectual property portfolio, and established early commercial traction across multiple end markets. We're now transitioning from technology validation into scaled commercialization and deployment, as seen with the Hexion announcement. We're supported by growing industry engagement, expanding strategic relationships, and increasing market awareness. The future of wildfire management will increasingly shift from reactive suppression towards proactive prevention and infrastructure resiliency. CitroTech is positioning itself to play a meaningful role in that transition. Thank you again for joining us this morning.

[Wes Bolsen, CEO at CitroTech]

I'll now turn the call back over to Brett Maas of Hayden IR to ask a few questions sent by investors. Brett?

[Brett Maas, Managing Partner at Hayden IR]

Thank you, Wes. Okay, first question. The investing public is aware of pressure treating or impregnating wood to make it fire resistant. It sounds like you're doing somewhere that is not required. Can you explain?

[Wes Bolsen, CEO at CitroTech]

Yeah. I mean, the pressure treating or incising or impregnating, people use different words, Brett, to get lumber to Class A fire-rated. You know, we have a number of ways that our product can be applied, but importantly, CitroTech can soak into the cellulosic fibers without needing to be pressure treated or incised or pressed into the lumber. This is really a game-changing solution for the fire retardant-treated wood market, because of how it actually can go into individual strands and then be pressed into boards or, just how the technology functions or migrates into the lumber.

[Brett Maas, Managing Partner at Hayden IR]

Great. Thank you. Number two, CitroTech has talked about treating wood products to enhance material properties in addition to fire resistance, such as making OSB stronger so that it can be used in applications where it's not currently used. Do you see this as an additional benefit that will drive sales and adoption? Are there other benefits? Are there different products for internal and external wood products?

[Wes Bolsen, CEO at CitroTech]

Yeah, that's a good question. I mean, we believe, as large wood product companies continue to test the integration of CitroTech into panel production, they may find additional positive material properties that will drive additional adoption beyond just the fire retardant wood characteristics. I mean, they're looking at everything from the strength and swell to product advancements or combination products that might be with multiple different things like mold and termites. I mean, there's so many ways that as you integrate CitroTech in different properties, different combinations can be added in. Kind of related to the different CitroTech products for internal and external home use that you mentioned, you're exactly correct. CitroTech soaks into cellulosic materials, for internal lumber, it doesn't wash off.

[Wes Bolsen, CEO at CitroTech]

External wood products, we would have agents added in for weathering as well as the fire retardant capabilities that are being mandated in the wildland-urban interface. We really see CitroTech as the baseline that things can be built upon, and we're highly impressed, like I said in my comments, with the relationship with Hexion and how they're really going to be helping think through because they know the end customers, and they know the demands that are in the market and how we can best position this in our joint venture.

[Brett Maas, Managing Partner at Hayden IR]

Thank you. Let's delve into the JV a bit. Hexion is a private company owned by American Securities, but Hexion is not well known by many of the public markets. Can you tell us a bit more about them? Has the JV helped conversations with U.S. manufacturers you were already talking to? Is there a market outside the U.S. for treated lumber that they're going to bring to CitroTech?

[Wes Bolsen, CEO at CitroTech]

Yeah. I mean, Hexion, prior to selling its epoxy business, was I think doing over $3 billion in revenues. I mean, they've got, I think 1,800 employees from what I could see and 27 production facilities worldwide and serving customers in 60 countries. Although the U.S. is a giant market for the joint venture, we anticipate Hexion is going to bring their global strength to the JV for commercialization. The Hexion-CitroTech JV brings a lot of credibility in your question there, Brett. It customers have already been talking to them. I mean, they're integrated, working with almost all of these large global customers already. What it does is it brings credibility.

[Wes Bolsen, CEO at CitroTech]

This joint venture brings credibility that we're going to be able to deliver the kind of large orders that they would need in the event of changing an entire manufacturing line or integrating CitroTech for the long term. That's the strength that the JV brings is, you know, there's been a lot of interest, a lot of initial commercial conversations after the JV was announced. It's very positive. I mean, it's gonna take some time though before they would ramp up and start production immediately. I mean, we'll keep the market informed as the customer, you know, pipeline turns on.

[Wes Bolsen, CEO at CitroTech]

I mean, you have to believe, I mean, I think the market will believe that we wouldn't have formed this joint venture if there wasn't a huge market opportunity and the ability to deliver on that into processed wood, lumber, building materials, and wood products industry, Brett.

[Brett Maas, Managing Partner at Hayden IR]

Yep. Clearly, that makes sense. Okay, next question. What is the potential CapEx needed to scale this partnership?

[Wes Bolsen, CEO at CitroTech]

I mean, we're in the process of looking at capital needs to accelerate the joint venture, but the great news is, as I talked about, Hexion already has a global footprint, a global sales force, manufacturing capabilities. I mean, additional significant CapEx that might be needed beyond what I mentioned in my remarks, you know, would be a high-class problem looking more like a growth equity raise. If, if we look at CapEx, I mean, we're still in conversations, but, I think right now, you know, we're moderating where we're spending, CitroTech capital while we get the customers, lined up.

[Brett Maas, Managing Partner at Hayden IR]

Given the strength of the partnership and this massive opportunity, can you say more about Hexion's ability to buy out CitroTech's 50% of the JV in five years?

[Wes Bolsen, CEO at CitroTech]

That was part of the agreement when we put it in. Starting year five, Hexion can buy the other half of the joint venture, which is honestly a testament to the tremendous value that we believe and they believe that the joint venture could create in a really short period of time, and something that would be potentially in the interest of both companies. The joint venture, you know, has nothing to do with our entire wildfire prevention and asset protection business that I talked about. The CitroSafe Systems business is also not inside the joint venture. I mean, it's really, you know, there's a lot of opportunities that aren't in the JV.

[Wes Bolsen, CEO at CitroTech]

As you put all of our effort and all of our focus into this JV, for what we're doing with all the lumber and all the strengths and all the pieces where Hexion already is, it just made sense. It's actually additional validation that they might have the option to do that out five years from now.

[Brett Maas, Managing Partner at Hayden IR]

Thank you. Next question related to the wildfire business. How can you replicate the success of CitroTech in San Diego? Why are they interested in CitroTech over other fire suppression solutions? Any barriers to replicating this strategy, or replacing, sorry. Any barriers to replacing legacy retardants?

[Wes Bolsen, CEO at CitroTech]

Yeah, as I mentioned in my comments, we see the industry now separating into suppression and using the phosphate red stuff for aerial applications, at least for now, while customers that don't want the liability of phosphate-based retardants for repeated ground-based applications, unless it's recognized by the EPA as a Safer Choice product and ingredients. I mean, we're seeing movement not just in California, but across the entire Western U.S. towards this answer. As people are looking at legacy and what's been around, coming out of that, the industry hasn't changed a lot. I think bringing new innovation is being looked at extremely favorably.

[Wes Bolsen, CEO at CitroTech]

I think it starts as like San Diego being a kind of bellwether and a lot of other counties and a lot of other states looking at what we did there and saying, We need to do the same thing.

[Brett Maas, Managing Partner at Hayden IR]

Great. You've had a lot of history in the fire retardant industry. You know, your track record speaks for itself. Has this helped in reaching decision-makers and explaining CitroTech's advantages over legacy retardants? Where are the sticking points?

[Wes Bolsen, CEO at CitroTech]

I guess, Brett, I know a lot of the good and the bad of a very small wildfire prevention industry, especially serving as a former global head of wildfire prevention and protection at the other public company in our space. The wildfire industry is one where your reputation carries with you. That's something that I guess I'm proud of, that I can talk to utilities, state and federal wildfire agencies, and even application partners. As I mentioned, we need more innovation in this industry. We're not just a fertilizer phosphate solution that's been used for 70 years. I mean, we're being welcomed by large commercial customers and agencies that want more environmentally friendly solutions.

[Wes Bolsen, CEO at CitroTech]

As for pain points, I mean, we have to take CitroTech through some of the same federal qualifications and get the story of better and more safer chemistry into the market. You can imagine there's just an awareness of getting out there, I think we are, as I was saying in my comments, Brett, like I think people are just now becoming aware of what CitroTech is and what is available. I think we're coming into the start of fire season right now. Fire season traditionally starts now. Last year was an exceptional year with the Eaton and Palisade fire, we're now going to have a year where people start to see the CitroTech solution, you know, getting out hopefully during the upcoming fire season.

[Brett Maas, Managing Partner at Hayden IR]

Thank you. How did the Texas A&M research program for textiles come about?

[Wes Bolsen, CEO at CitroTech]

Well, that actually relates a bit to the last question. I got to personally know Dr. Grunlan at Texas A&M. Jamie was introduced to me by one of the other foremost polymer chemists in the world, who came out of Dr. Bob Langer's lab at MIT. I mean, the polymer could have been put into the hands of any number of companies, but Researchers wanna trust their partners to get the technology into the world. We'll see where this goes very early. Brett, this is just some low, small funded research to say, Hey, what is possible? I think the market needs to know CitroTech is going to continue to look at breakthrough environmentally safe solutions that are good for people, good for the environment.

[Wes Bolsen, CEO at CitroTech]

I think it speaks to CitroTech being a multifaceted fire prevention and fire protection company.

[Brett Maas, Managing Partner at Hayden IR]

Thank you. Our final billion-dollar question. In general, any expectations on how revenue would ramp up from any of the revenue pillars?

[Wes Bolsen, CEO at CitroTech]

You know, I think the best way that I heard our revenue ramp up explained, Brett, was by one of our investors using a baseball analogy. I think we've put a number of our guys on base. I mean, Hexion JV having the first ever EPA Safer Choice recognized wildfire prevention product coming into what people anticipate could be, you know, a number of fires. We have our CitroSafe systems, so much more. All it's gonna take is one of the big wood product companies to say, We want this, for this to be a home run. These are sticky long-term revenues that are gonna build up, so it looks like a grand slam.

[Wes Bolsen, CEO at CitroTech]

What you have is, you know, hopefully a patient market that says, Hey, look, we see this is coming, and it doesn't matter exactly which month. You know, you've got a lot of at-bats here with all of the biggest wood customers. You've got a lot of at-bats with the largest counties and states wanting environmentally friendly solutions. We're coming into fire season now, and getting just single utility or railroad customer, or other counties doing what San Diego did, I think we'll continue to have that validation of what CitroTech is bringing. Maybe even a transportation agency wanting to prevent fire starts on the roadside could drive some revenue or, you know, these big wood customers finishing their evaluations and making plans to put CitroTech into lumber products in larger long-term purchase scenarios.

[Wes Bolsen, CEO at CitroTech]

They could make that decision, you know, through the rest of this year. Systems will move through a number of affiliates who will do the installations, and we'll see revenue from CitroTech sales of product as part of the system installs as it takes off and replaces water-based systems. I mean, we find that homeowners make decisions a couple times a year. First is fire season, which we're coming into right now, and second is where they're up for insurance renewal, and they're getting non-renewed or giant increases. I see in kind of an order for right now in revenue order, wildfire season's here. Customers and homeowners are gonna be making decisions. State and federal agencies are gonna be looking at where they can test out and start using the CitroTech solution.

[Wes Bolsen, CEO at CitroTech]

In parallel, you have all the wood products customers that are hopefully gonna make some decisions as quickly as possible for long-term adoption of CitroTech. Hope that answered the question, Brett.

[Brett Maas, Managing Partner at Hayden IR]

Yep. Thank you, Wes. Well, this concludes the questions that have been submitted for our Q1 CitroTech earnings call. I'd like to thank you for joining us and remind you that if you have additional questions, send those to citr@haydenir.com, where we can follow up with you individually. At this time, operator, we'll conclude the call. Thank you, everyone, for joining.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Participants

Executives

• Wes Bolsen, CEO

Analysts

• Brett Maas, Managing Partner at Hayden IR