# EDGAR Filing Document

**Accession Number:** 0000925528
**File Stem:** 0001104659-23-030102
**Filing Date:** 2023-3
**Character Count:** 18382
**Document Hash:** f3dcffb822a28066c7ff76ae34801ef8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-030102.hdr.sgml**: 20230308

**ACCESSION NUMBER**: 0001104659-23-030102

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230308

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230308

**DATE AS OF CHANGE**: 20230308

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HUDSON TECHNOLOGIES INC /NY
- **CENTRAL INDEX KEY:** 0000925528
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-MACHINERY, EQUIPMENT & SUPPLIES [5080]
- **IRS NUMBER:** 133641539
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13412
- **FILM NUMBER:** 23716234

**BUSINESS ADDRESS:**
- **STREET 1:** PO BOX 1541
- **STREET 2:** ONE BLUE HILL PLAZA, 14TH FLOOR
- **CITY:** PEARL RIVER
- **STATE:** NY
- **ZIP:** 10965
- **BUSINESS PHONE:** 8457356000

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 1541
- **STREET 2:** ONE BLUE HILL PLAZA, 14TH FLOOR
- **CITY:** PEARL RIVER
- **STATE:** NY
- **ZIP:** 10965

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** REFRIGERANT RECLAMATION INDUSTRIES INC
- **DATE OF NAME CHANGE:** 19940617

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(** **d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of report (Date of earliest event reported) March 8, 2023

Hudson Technologies, Inc. <br> (Exact Name of Registrant as Specified in Charter)

New York <br> (State or Other Jurisdiction of Incorporation)

<u>1-13412</u> <u>13-3641539</u> <br> (Commission File Number) (IRS Employer Identification No.)

<u>300 Tice Boulevard, Suite 290, Woodcliff Lake, New Jersey</u> <u>07677</u> <br> (Address of Principal Executive Offices) (Zip Code)

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| |
|:---|
| (845) 735-6000 |
| (Registrant's Telephone Number, Including Area Code) |
| Not Applicable |
| (Former Name or Former Address, if Changed Since Last Report) |

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbols(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, $0.01 par value | HDSN | Nasdaq Capital Market |

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

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On March 8, 2023, Hudson Technologies, Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits

[Exhibit 99.1](tm238617d1_ex99-1.htm) [Press Release issued March 8, 2023](tm238617d1_ex99-1.htm) <br> Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 8, 2023

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| | |
|:---|:---|
| HUDSON TECHNOLOGIES, INC. | HUDSON TECHNOLOGIES, INC. |
| By: | /s/ Nat Krishnamurti |
| Name: Nat Krishnamurti | Name: Nat Krishnamurti |
| Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer & Secretary | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer & Secretary |

---

## Exhibit 99.1

**Exhibit 99.1**

**HUDSON TECHNOLOGIES REPORTS FOURTH QUARTER Revenue Growth of 26%; Record Full YEAR 2022 revenue of $325.2 Million**

**WOODCLIFF LAKE, NJ – MARCH 8, 2023 –** Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the fourth quarter and year ended December 31, 2022.

For the quarter ended December 31, 2022, Hudson reported revenues of $47.4 million, an increase of 26% compared to revenues of $37.8 million in the comparable 2021 period. Fourth quarter revenue growth was driven by increased selling prices for certain refrigerants during the period as well as increased sales volume in the quarter as compared to the fourth quarter of 2021. Gross margin in the fourth quarter of 2022 was 32%, compared to 45% in the fourth quarter of 2021. Hudson reported operating income of $7.1 million in the fourth quarter of 2022, compared to operating income of $9.3 million in the prior year period. The Company recorded net income of $5.1 million or $0.11 per basic and diluted share in the fourth quarter of 2022, compared to net income of $6.2 million or $0.14 per basic and $0.13 diluted share in the same period of 2021.

For the year ended December 31, 2022, Hudson reported revenues of $325.2 million, an increase of 69% compared to revenues of $192.7 million for full year 2021. The revenue growth was driven by increased selling prices for certain refrigerants during the period. Gross margin for full year 2022 was 50%, compared to gross margin of 37% in the prior year period. The margin increase is primarily related to higher selling prices for certain refrigerants for 2022 when compared to 2021. Hudson reported operating income of $131.5 million for full year 2022 compared to operating income of $42.3 million in the prior year. The Company recorded net income of $103.8 million or $2.31 per basic and $2.20 per diluted share in 2022, compared to a net income of $32.3 million or $0.74 per basic and $0.69 diluted share in 2021.

Hudson reduced total outstanding debt from $94.9 million at December 31, 2021 to $46.8 million at December 31, 2022. Stockholders' equity improved to $175.0 million at December 31, 2022 as compared to $70.9 million at December 31, 2021.

Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented,

"2022 was a tremendous year for Hudson as evidenced by record revenues, and enhanced profitability. We delivered a solid fourth quarter consistent with historical fourth quarter performance, which is typically our lowest revenue quarter because it falls outside of our nine-month selling season. During the fourth quarter of 2022, gross margin fell just below our long-range target gross margin of 35%, but we do not believe this slightly lower fourth quarter gross margin will affect our long-term target. With the enhanced profitability and strong free cash flow achieved in 2022, we substantially reduced our total outstanding debt from approximately $95 million at year-end 2021, to $47 million at year-end 2022. The success of our operational execution allowed us to strengthen our balance sheet, providing improved financial flexibility as we begin moving through 2023.

"We remain optimistic that the ongoing stepdown in HFC production and consumption allowances mandated by the AIM Act will benefit our business. The 10% stepdown in virgin production and consumption that began in 2022 remains in place for 2023, as we track toward a 40% baseline reduction beginning in 2024. As we've previously mentioned, we believe the current phasedown schedule will drive higher demand for our reclaimed refrigerants as virgin HFCs become increasingly scarce. Likewise, we are encouraged by legislation at both the federal and state levels that promotes the use of reclaimed refrigerant.

"Hudson has held a leadership role in the refrigerant industry for more than thirty years, and we have long been committed to developing sustainable solutions around responsible refrigerant management and the adoption of reclamation. We are uniquely positioned to leverage our expertise and industry-leading reclamation technology to help drive the transition to more efficient cooling equipment and greener refrigerants, while also servicing the existing installed base with reclaimed refrigerants as the industry continues to evolve," Mr. Coleman concluded.

**Conference Call Information**

The Company will host a conference call and webcast to discuss the fourth quarter and year end results today, March 8, 2023 at 5:00 P.M. Eastern Time.

To access the live webcast, log onto the Hudson Technologies website at <u>www.hudsontech.com</u>, and click on "Investor Relations".

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use entry code: 799619.

A replay of the teleconference will be available until April 7, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 47630.

**About Hudson Technologies**

Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company's SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility's refrigeration systems and other energy systems. The Company's Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company's products and services, the Company also generates carbon offset projects.

**Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995**

Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under existing credit facilities, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company's ability to successfully integrate any assets it acquires from third parties into its operations, the impact of the current COVID-19 pandemic, and other risks detailed in the Company's 10-K for the year ended December 31, 2021 and other subsequent filings with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

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| | |
|:---|:---|
| <br> **<u>Investor Relations Contact:</u>**<br> John Nesbett/Jennifer Belodeau<br> IMS Investor Relations<br> (203) 972-9200<br> <u>jnesbett@institutionalms.com</u>  | <br> **<u>Company Contact:</u>**<br> Brian F. Coleman, President & CEO<br> Hudson Technologies, Inc.<br> (845) 735-6000<br> <u>bcoleman@hudsontech.com</u> |

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**Hudson Technologies, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

(Amounts in thousands, except for share and par value amounts)

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
|  | (unaudited) | |
| **<u>Assets</u>** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5295 | $3492 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable – net | 20872 | 14223 |
| &nbsp;&nbsp;&nbsp;Inventories | 145377 | 94144 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 5289 | 8090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 176833 | 119949 |
| Property, plant and equipment, less accumulated depreciation | 20568 | 20093 |
| Goodwill | 47803 | 47803 |
| Intangible assets, less accumulated amortization | 17564 | 20357 |
| Right of use asset | 7339 | 6803 |
| Other assets | 2386 | 710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $272493 | $215715 |
| **<u>Liabilities and Stockholders' Equity</u>** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | $14165 | $9623 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 27908 | 30637 |
| &nbsp;&nbsp;&nbsp;Accrued payroll | 6303 | 3931 |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 4250 | 5248 |
| &nbsp;&nbsp;&nbsp;Short-term debt |  | 15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 52626 | 64439 |
| Deferred tax liability | 244 | 1692 |
| Long-term lease liabilities | 5763 | 5500 |
| Long-term debt, less current maturities, net of deferred financing costs | 38985 | 73145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | 97618 | 144776 |
| **Commitments and contingencies** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding: 45,287,619 and 44,758,925 respectively | 453 | 448 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 116442 | 116312 |
| &nbsp;&nbsp;&nbsp;Retained earnings (accumulated deficit) | 57980 | (45821) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Stockholders' Equity** | 174875 | 70939 |
| **Total Liabilities and Stockholders' Equity** | $272493 | $215715 |

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**Hudson Technologies, Inc. and Subsidiaries**

**Consolidated Income Statements**

**(unaudited)**

(Amounts in thousands, except for share and per share amounts)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months <br> ended December 31** | **Three months <br> ended December 31** | **Twelve months<br> ended December 31,** | **Twelve months<br> ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Revenues** | $47444 | $37775 | $325225 | $192748 |
| **Cost of sales** | 32107 | 20755 | 162332 | 121084 |
| **Gross profit** | 15337 | 17020 | 162893 | 71664 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 7534 | 6980 | 28591 | 26566 |
| &nbsp;&nbsp;&nbsp;Amortization | 698 | 698 | 2793 | 2793 |
| &nbsp;&nbsp;&nbsp;**Total operating expenses** | 8232 | 7678 | 31384 | 29359 |
| **Operating income** | 7105 | 9342 | 131509 | 42305 |
| **Other (expense) income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net interest expense | (2034) | (2844) | (14327) | (11376) |
| &nbsp;&nbsp;&nbsp;Other income | - | - | - | 2470 |
| **Total other (expense)** | (2034) | (2844) | (14327) | (8906) |
| **Income before income taxes** | 5071 | 6498 | 117182 | 33399 |
| **Income tax expense (benefit)** | (9) | 310 | 13381 | 1140 |
| **Net income** | $5080 | $6188 | $103801 | $32259 |
| Net income per common share – Basic | $0.11 | $0.14 | $2.31 | $0.74 |
| Net income per common share – Diluted | $0.11 | $0.13 | $2.20 | $0.69 |
| Weighted average number of shares outstanding – Basic | 45151426 | 44318805 | 44990104 | 43765443 |
| Weighted average number of shares outstanding – Diluted | 47238439 | 46828212 | 47109018 | 46640822 |

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