# EDGAR Filing Document

**Accession Number:** 0001043186
**File Stem:** 0001628280-23-007060
**Filing Date:** 2023-3
**Character Count:** 28662
**Document Hash:** f67c66f29a10541f22a9a3a0110e707c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-007060.hdr.sgml**: 20230309

**ACCESSION NUMBER**: 0001628280-23-007060

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230308

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

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230309

**DATE AS OF CHANGE**: 20230308

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Stabilis Solutions, Inc.
- **CENTRAL INDEX KEY:** 0001043186
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS DISTRIBUTION [4924]
- **IRS NUMBER:** 593410234
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40364
- **FILM NUMBER:** 23717389

**BUSINESS ADDRESS:**
- **STREET 1:** 11750 KATY FREEWAY
- **STREET 2:** SUITE 900
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079
- **BUSINESS PHONE:** 8324566500

**MAIL ADDRESS:**
- **STREET 1:** 11750 KATY FREEWAY
- **STREET 2:** SUITE 900
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Stabilis Energy, Inc.
- **DATE OF NAME CHANGE:** 20190724

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** American Electric Technologies Inc
- **DATE OF NAME CHANGE:** 20070516

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN ACCESS TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 19971117

?xml version="1.0" ? slng-20230308

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 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**

**Stabilis Solutions, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Florida** | **001-40364** | **59-3410234** |
| (State or other jurisdiction <br>of incorporation) | (Commission <br>File Number) | (IRS Employer <br>Identification No.) |

---

---

| | |
|:---|:---|
| **11750 Katy Freeway Suite 900 Houston, Texas** | **77079** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **832-456-6500**

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 (<u>see</u> 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))

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

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol</u> | <u>Name of each exchange on which registered</u> |
| **Common Stock, $.001 par value** | **SLNG** | **The Nasdaq Stock Market LLC** |

---

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. ☐

------

**Item 2.02. Results of Operations and Financial Condition.**

On **March 8, 2023**, Stabilis Solutions, Inc. (the "Company") issued a press release announcing information regarding its results of operations and financial condition for the three and twelve months ended December 31, 2022. A copy of the Company's press release is furnished as Exhibit 99.1 to this Form 8-K.

The Company's press release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or ("GAAP"). Pursuant to the requirements of Regulation G, the Company has provided within the press release quantitative reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The information in this Current Report, including the exhibit, is being furnished pursuant to Item 7.01 of Form 8-K and General Instruction B.2 thereunder. The information in this Current Report shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

**Item 7.01 Regulation FD Disclosure.**

The information set forth under Item 2.02 is incorporated by reference as if fully set forth herein.

**Item 9.01 Financial Statements and Exhibits.** 

Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press release dated](ex991earningsrelease4q22.htm)[March 8](ex991earningsrelease4q22.htm)[, 202](ex991earningsrelease4q22.htm)[3](ex991earningsrelease4q22.htm)[.](ex991earningsrelease4q22.htm)</u> |

---

**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.

---

| | |
|:---|:---|
| | STABILIS SOLUTIONS, INC. |
| | <u>By: /s/Westervelt T. Ballard, Jr.</u> |
| | Westervelt T. Ballard, Jr. |
| | President and Chief Executive Officer |
| Date: March 8, 2023 |  |

---

## Exhibit 99.1

Exhibit 99.1

![stabilislogonewa.jpg](stabilislogonewa.jpg)

**STABILIS SOLUTIONS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 RESULTS**

**Houston, March 8, 2023** — Stabilis Solutions, Inc., ("Stabilis" or the "Company") (NASDAQ: **SLNG**), a leading provider of clean energy production, storage, and delivery solutions to multiple end markets, today announced its financial results for its fourth quarter and full year ended December 31, 2022.

**Fourth Quarter Results** 

For the fourth quarter ended December 31, 2022, Stabilis reported revenues of $29.6 million, a 15% increase &nbsp;&nbsp;&nbsp;&nbsp;sequentially and a 42% increase from the fourth quarter of 2021. The year-over-year growth was primarily the result of 1.1 million additional LNG gallons delivered, higher natural gas prices, and additional rental and service revenue.

Net income from continuing operations was $0.2 million in the quarter, compared to $1.0 million in the third quarter of 2022 and a loss of $2.3 million in the fourth quarter of last year.

Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $3.9 million, compared to $2.3 million in the third quarter of 2022 and $0.7 million in the fourth quarter of 2021.

**Full Year Results**

Full year 2022 revenues totaled $98.8 million, an increase of 43% compared to $69.2 million reported in 2021.

Net loss from continuing operations was $1.2 million for the full year, compared to a net loss from continuing operations of $7.6 million for 2021.

Adjusted EBITDA was $9.6 million in 2022, compared to $5.2 million in 2021.

The Company generated positive cash flows from continuing operations of $13.6 million during 2022, compared to $4.7 million in the prior year. Cash on hand as of December 31, 2022 was $11.5 million and the Company has $1.0 million of available liquidity under its current bank agreement.

"We made tremendous progress both operationally and financially in 2022." commented Westy Ballard, President and CEO. "The cost rationalization and pricing strategies I discussed on previous calls have improved profitability and delivered strong operating cash flows in a difficult and uncertain economic environment. Additionally, we began to lay the foundation for expansion into exciting new markets and look forward to building on this foundation in 2023 and beyond."

------

**Conference Call**

Management will host a conference call on Thursday, March 9, 2023 at 10:00 a.m. eastern time (9:00 a.m. central). Individuals in the United States and Canada who wish to participate in the conference call can access the live webcast at https://www.webcaster4.com/Webcast/Page/2256/47612 or dial +1 888-506-0062; passcode 376150. International callers should dial +1 973-528-0011; passcode 376150. A replay of the call will be available until April 9, 2023. Individuals in the United States and Canada who wish to listen to the replay should dial +1 877-481-4010; passcode 47612. International callers should dial +1 919-882-2331; passcode 47612. A replay of the call will also be available in the investor center on the Stabilis website (www.stabilis-solutions.com).

**About Stabilis Solutions**

Stabilis Solutions, Inc. is a leading provider of clean energy production, storage, and delivery solutions to multiple end markets. To learn more, visit www.stabilis-solutions.com.

**Cautionary Statement Regarding Forward-Looking Statements**

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "can," "believes," "feels," "anticipates," "expects," "could," "will," "plan," "may," "should," "predicts," "potential" and similar expressions are intended to identify such forward-looking statements.

Such forward-looking statements relate to future events or future performance, but reflect our current beliefs, based on information currently available. Most of these factors are outside our control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the future performance of Stabilis, future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions.

The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in the Risk Factors in Item 1A of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2022 which is available on the SEC's website at www.sec.gov or on the Investors section of our website at www.stabilis-solutions.com. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters attributable to Stabilis, or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.

Stabilis does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

------

**Stabilis Solutions, Inc. and Subsidiaries** 

**Selected Consolidated Operating Results**

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| **Revenues:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | $29587 | $25819 | $20880 | $98823 | $69171 |
| **Operating expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs of revenues | 22749 | 19904 | 17915 | 77694 | 55216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss (gain) on natural gas derivatives | 905 | (926) |  | 878 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 3548 | 3658 | 3234 | 13191 | 13792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from disposal of fixed assets |  | 46 |  | (34) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 2075 | 2115 | 2241 | 8664 | 8894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of right-of-use lease asset |  |  |  |  | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 29277 | 24797 | 23390 | 100393 | 78254 |
| **Income (loss) from operations before equity income** | 310 | 1022 | (2510) | (1570) | (9083) |
| **Net equity income from foreign joint venture operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from equity investment in foreign joint venture | 755 | 205 | 879 | 1881 | 2146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign joint venture operating related expenses | (44) | (91) | (171) | (283) | (363) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net equity income from foreign joint venture operations | 711 | 114 | 708 | 1598 | 1783 |
| **Income (loss) from operations** | 1021 | 1136 | (1802) | 28 | (7300) |
| **Other income (expense):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (154) | (150) | (135) | (591) | (324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net - related parties | (50) | (49) | (136) | (179) | (577) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense) | (86) | (28) | 27 | (185) | 1058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (290) | (227) | (244) | (955) | 157 |
| **Income (loss) from continuing operations before income tax expense** | 731 | 909 | (2046) | (927) | (7143) |
| Income tax expense (benefit) | 513 | (115) | 258 | 265 | 487 |
| **Net income (loss) from continuing operations** | 218 | 1024 | (2304) | (1192) | (7630) |
| Loss from discontinued operations, net of tax | (553) | (1301) | (40) | (1994) | (168) |
| **Net loss** | $(335) | $(277) | $(2344) | $(3186) | $(7798) |
| **Net income (loss) per common share:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic income (loss) from continuing operations | $0.01 | $0.06 | $(0.13) | $(0.07) | $(0.44) |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic loss from discontinued operations | (0.03) | (0.07) |  | (0.11) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net loss per common share | (0.02) | (0.02) | (0.13) | (0.17) | (0.45) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted income (loss) from continuing operations | $0.01 | $0.06 | $(0.13) | $(0.07) | $(0.44) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted from discontinued operations | (0.03) | (0.07) |  | (0.11) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net loss per common share | (0.02) | (0.01) | (0.13) | (0.17) | (0.45) |
| **EBITDA** | $3010 | $3223 | $466 | $8507 | $2652 |
| **Adjusted EBITDA** | $3915 | $2297 | $716 | $9613 | $5177 |

---

------

**Stabilis Solutions, Inc. and Subsidiaries** 

**Consolidated Balance Sheets**

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

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **Assets** | **Assets** | **Assets** |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $11451 | $910 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 16326 | 9397 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 205 | 258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2186 | 1522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 2049 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets of discontinued operations, current |  | 3446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 32217 | 15533 |
| Property, plant and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost | 103368 | 101192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (55699) | (47027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 47669 | 54165 |
| Goodwill | 4314 | 4314 |
| Investments in foreign joint ventures | 11606 | 12325 |
| Right-of-use assets and other noncurrent assets | 774 | 167 |
| Assets of discontinued operations, noncurrent |  | 832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $96580 | $87336 |
| **Liabilities and Stockholders' Equity** | **Liabilities and Stockholders' Equity** | **Liabilities and Stockholders' Equity** |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $4474 | $5064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 19642 | 6317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term notes payable | 848 | 855 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term notes payable - related parties | 2435 | 1168 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of finance and operating lease obligations | 133 | 292 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations |  | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 27532 | 15627 |
| Long-term notes payable, net of current portion and debt issuance costs | 8650 | 7608 |
| Long-term notes payable, net of current portion - related parties |  | 2435 |
| Long-term portion of finance and operating lease obligations | 183 | 319 |
| Other noncurrent liabilities | 348 |  |
| Liabilities of discontinued operations, noncurrent |  | 288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 36713 | 26277 |
| **Stockholders' Equity:** |  |  |
| Common stock; $0.001 par value, 37,500,000 shares authorized, 18,420,067 and 17,691,268 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 19 | 18 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 100137 | 97875 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 82 | 351 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (40371) | (37185) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 59867 | 61059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $96580 | $87336 |

---

------

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

(Unaudited, in thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelves Months Ended** | **Twelves Months Ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| **Cash flows from operating activities:** | | | | | |
| Net income (loss) from continuing operations | $218 | $1024 | $(2304) | $(1192) | $(7630) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2075 | 2115 | 2241 | 8664 | 8894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 607 | 602 | 502 | 2348 | 3233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishment of debt |  |  |  |  | (1086) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from equity investment in joint venture | (755) | (205) | (879) | (1881) | (2146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions from equity investment in joint venture |  |  | 702 | 1550 | 2089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash settlements from natural gas derivatives, net | 142 | 682 |  | (1037) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized (gains) losses from natural gas derivatives, net | 1014 | (602) |  | 465 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of right-of-use lease asset |  |  |  |  | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (6036) | (513) | (3069) | (7013) | (4450) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 29 | (35) | (115) | 73 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (152) | (192) | 1119 | 1395 | 1337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 5380 | 3904 | 357 | 10554 | 3968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 223 | (8) | 306 | (290) | 285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities from continuing operations** | 2745 | 6772 | (1140) | 13636 | 4732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities from discontinued operations** | 323 | 180 | 8 | 1061 | (435) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) operating activities** | 3068 | 6952 | (1132) | 14697 | 4297 |
| **Cash flows from investing activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of fixed assets | (2186) | (723) | (877) | (3932) | (7625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of fixed assets |  |  | 35 | 100 | 293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of assets held for sale |  | 2049 |  | 2049 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of the Brazil operations | 200 |  |  | 200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) investing activities from continuing operations** | (1986) | 1326 | (842) | (1583) | (7332) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) investing activities from discontinued operations** |  | (76) | 12 | (334) | (188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) investing activities** | (1986) | 1250 | (830) | (1917) | (7520) |
| **Cash flows from financing activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings on notes payable |  |  | 1003 | 1000 | 8000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on short and long-term notes payable | (245) | (682) | (424) | (1800) | (856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on notes payable and finance leases-related party | (586) |  | (7) | (1255) | (3284) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of debt issuance costs |  |  |  |  | (420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee tax payments from restricted stock withholdings |  | (85) |  | (85) | (430) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash provided by (used in) financing activities from continuing operations** | (831) | (767) | 572 | (2140) | 3010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash provided by (used in) financing activities from discontinued operations** |  | (55) | (11) | (113) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | (831) | (822) | 561 | (2253) | 3012 |
| Effect of exchange rate changes on cash | 98 | (48) | (43) | 14 | (119) |
| **Net increase (decrease) in cash and cash equivalents** | 349 | 7332 | (1444) | 10541 | (330) |
| **Cash and cash equivalents, beginning of period** | 11102 | 3770 | 2354 | 910 | 1240 |
| **Cash and cash equivalents, end of period** | $11451 | $11102 | $910 | $11451 | $910 |

---

------

**Non-GAAP Measures**

Our management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of our business. EBITDA is defined as Earnings from continuing operations before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for certain special items that occur during the reporting period, as noted below. We include EBITDA and adjusted EBITDA to provide investors with a supplemental measure of our operating performance. Neither EBITDA nor Adjusted EBITDA is a recognized term under generally accepted accounting principles in the U.S. ("GAAP"). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definition of EBITDA and Adjusted EBITDA may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies. The following table provides a reconciliation of net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(335) | $(277) | $(2344) | $(3186) | $(7798) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations | 553 | 1301 | 40 | 1994 | 168 |
| **Net income (loss) from continuing operations** | 218 | 1024 | (2304) | (1192) | (7630) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2075 | 2115 | 2241 | 8664 | 8894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 204 | 199 | 271 | 770 | 901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 513 | (115) | 258 | 265 | 487 |
| **EBITDA** | 3010 | 3223 | 466 | 8507 | 2652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special items\* | 905 | (926) | 250 | 1106 | 2525 |
| **Adjusted EBITDA** | $3915 | $2297 | $716 | $9613 | $5177 |

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\**&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended December 31, 2022, special items consist of add-back for change in unrealized loss on natural gas derivatives of $0.9 million. For the twelve months ended December 31, 2022, special items consist of add-back for change in unrealized loss on natural gas derivatives of $0.9 million and one-time costs related to an expired contract of $0.2 million. For the three months ended September 30, 2022 special items consist of subtraction for change in unrealized gain on natural gas derivatives of $0.9 million.*

*Special items for the three months ended December 31, 2021 consist of non-cash charges related to the write-off of engineering designs. Special items for the twelve months ended December 31, 2021 include the engineering designs, the add backs for executive officer's immediate vesting of restricted stock of $1.8 million, former executive officer's severance and immediate vesting of restricted stock of $1.2 million, impairment charges for settlement of an office lease of $0.4 million, and the forgiveness of indebtedness of a Payroll Protection Act Loan ($1.1 million).* 

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**Investor Contact:**

Andrew Puhala

Chief Financial Officer

832-456-6502

ir@stabilis-solutions.com

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