FormerXBC Inc XEBEQ

hey aaron, how about some company specifics....

[Tan4646]

Recognizing that past estimates were missed and all companies print optomistic expectations, the reality of XBC specific guidance is very envouraging.

Renewable Natural Gas

Xebec continues to execute on its long-term production-type RNG projects with the last handful of projects in finalstages of execution and commissioning. The tapering down of impact from these legacy contracts as a result of less contribution to total revenues, was seen this quarter through a stronger gross margin.

Overall, standardized products such as Biostream are expected to lead to a stronger organic revenue growth profile for the segment, more predictable cost management and improved gross margins.

The company has also begun production of its second-generation Biostream in Canada, with the aim of having a capacity run rate of 30 to 40 units per year.

Revenues on the recent 18-unit Biostream order have not yet been recognized as they will now be recognized on delivery, instead of on a percentage of completion basis.

The recently announced additional capacity acquired with UECompression, will add another 120 to 150 containerized renewable gas systems for North American capacity totaling 150 to 190 units.

This significant manufacturing capacity increase reflects the anticipated demand Xebec sees in the market for its productsin the agriculturalsector.

In addition, the expansion is further supported by the success and positive feedback received from customers for the first generation Biostream, which now has several units producing RNG at U.S. dairy farms and is performing at or above expectations.