Stabilis Solutions, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
SLNG$3.58-4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001437749-25-015132
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001437749-25-025131
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 61 current paragraphs.
30 unchanged; 17 reworded; 6 added; 2 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 10 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses decreased $0.2 million in the Current Quarter compared to the Prior Year Quarter. The decrease was primarily related to lower compensation expense in the Current Quarter partially offset by $0.1 million of bad debt expense.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** **
Current report
Revenue
Current report
During the Current Year, revenues decreased $3.7 million, or 10%, compared to the Prior Year. The change in revenue primarily related to:
Current report
Operating Expenses
Current report
Other income (expense). Other expense was $36 thousand during the Current Year compared to other income of $5 thousand in the Prior Year related to, in both periods, transactional foreign exchange gains (losses).
Removed paragraphs (2)
Previous report
Shelf Registration Statement
Previous report
The Company filed a registration statement on Form S-3 (the "Shelf Registration"), which was declared effective on April 26, 2022. The Shelf Registration was for a period of three years, expiring on April 25, 2025, and permitted the Company to issue up to $100.0 million in either common stock, preferred stock, warrants or a combination of the above. On December 16, 2022, the Company filed a prospectus supplement to the Shelf Registration that allowed the Company to sell and issue shares of common stock directly to the public “at the market” (the "ATM") as permitted in Rule 415 under the Securities Act. The Company made no issuances under the Shelf Registration and related ATM. On April 25, 2025, the Shelf Registration and related ATM prospectus supplement expired unused.
Reworded paragraphs (17)
Previous wording
The DOE authorization received during the third quarter of 2022 supplements the Company's other existing import and export license from the DOE. Under this license, the Company is authorized to import and export LNG from and to Canada and Mexico, via truck. Additionally, effective September 2024, the Company can import LNG, by vessel, from various international sources to any LNG import terminal in the United States. In the three months ended March 31, 2025, we delivered LNG to Mexico under this authorization.
Current wording
The DOE authorization received during the third quarter of 2022 supplements the Company's other existing import and export license from the DOE. Under this license, the Company is authorized to import and export LNG from and to Canada and Mexico, via truck. Additionally, effective September 2024, the Company can import LNG, by vessel, from various international sources to any LNG import terminal in the United States.
Previous wording
During the Current Quarter, revenues decreased $2.4 million, or 12%, compared to the Prior Year Quarter. The change in revenue primarily related to:
Current wording
During the Current Quarter, revenues decreased $1.3 million, or 7%, compared to the Prior Year Quarter. The change in revenue primarily related to:
Previous wording
*Cost of revenues.*Cost of revenues decreased $0.7 million, or 5%, compared to the Prior Year Quarter. As a percentage of revenue, these costs were 74% and 68% in the Current Quarter and the Prior Year Quarter, respectively. The change in cost of revenues was primarily attributable to:
Current wording
*Cost of revenues.*Cost of revenues decreased $0.8 million, or 6%, compared to the Prior Year Quarter. As a percentage of revenue, these costs were 74% and 73% in the Current Quarter and the Prior Year Quarter, respectively. The change in cost of revenues was primarily attributable to:
Previous wording
Change in unrealized gain/loss on natural gas derivatives. The Company had a gain of $0.1 million on unrealized (gain) loss on natural gas derivatives in the Current Quarter compared to a gain of $0.3 million in the Prior Year Quarter. The decrease in the gain in the Current Quarter is due to fewer natural gas derivatives.
Current wording
Change in unrealized gain/loss on natural gas derivatives. The Company had a loss of $0.1 million on change in unrealized (gain) loss on natural gas derivatives in the Current Quarter compared to a gain of $0.1 million in the Prior Year Quarter. The loss in the Current Quarter is due to natural gas derivatives maturing.
Previous wording
*Net equity income from foreign joint venture operations.*Equity income from the Company's foreign joint venture increased by $0.2 million in the Current Quarter compared to the Prior Year Quarter due to increased net profits by the joint venture.
Current wording
*Net equity income from foreign joint venture operations.*Equity income from the Company's foreign joint venture decreased by $0.2 million in the Current Quarter compared to the Prior Year Quarter due to decreased net profits by the joint venture.
Previous wording
Other income (expense). Other expense was $12 thousand during the Current Quarter compared to other expense of $21 thousand in the Prior Year Quarter related to transactional foreign exchange gains (losses).
Current wording
Other income (expense). Other expense was $24 thousand during the Current Quarter compared to other income of $26 thousand in the Prior Year Quarter related to, in both periods, transactional foreign exchange gains (losses).
Previous wording
Income tax expense. The Company incurred state and foreign income tax benefit of $0.1 million during the Current Quarter compared to income tax expense of $0.1 million during the Prior Year Quarter due to revisions to estimated state taxes in the Current Quarter. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Current wording
Income tax expense. The Company incurred state and foreign income tax expense of $0.2 million during the Current Quarter compared to income tax expense of $0.4 million during the Prior Year Quarter. Income tax expense for the Current Quarter primarily related to foreign income taxes paid on the Company's dividends received from its joint venture investment in BOMAY. Income tax expense for the Prior Year Quarter primarily related to foreign income taxes paid on the Company's dividends received from the Company's joint venture investment in BOMAY and state income taxes related to the Prior Year Quarter operating income. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased $1.5 million in the Current Quarter compared to the Prior Year Quarter. Mr. Ballard's severance related expenses accounted for $2.1 million in the Current Quarter and were partially offset by lower compensation expense.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased $1.3 million in the Current Year compared to the Prior Year. Mr. Ballard's severance related expenses accounted for $2.1 million of the increase in the Current Year and were partially offset by lower other compensation expense.
Previous wording
*Gain on disposal of assets.*The Company recorded a gain on disposal of assets of $0.1 million in the Current Quarter related to an insurance settlement for an asset that was damaged in transit in which proceeds of $0.2 million were received. In the Prior Year Quarter, a gain of $0.1 million on the disposal of assets was recorded related to the sale of certain assets in which proceeds of $0.2 million were received.
Current wording
*Gain on disposal of assets.*The Company recorded a gain on disposal of assets of $0.1 million in the Current Year related to an insurance settlement for an asset that was damaged in transit in which proceeds of $0.2 million were received. In the Prior Year, a gain of $0.2 million on the disposal of assets was recorded related to the sale of certain assets in which proceeds of $0.3 million were received.
Previous wording
Interest (expense) income. Interest income, net was $21 thousand in the Current Quarter compared to interest expense, net of $4 thousand in the Prior Year Quarter. The increase in interest income, net related to interest earned on the Company's cash balances during the Current Quarter.
Current wording
Interest (expense) income. Interest income, net was $45 thousand in the Current Year compared to interest income, net of $24 thousand in the Prior Year. The increase in interest income, net related to interest earned on the Company's cash balances during the Current Year.
Previous wording
The Company's principal sources of liquidity have consisted of cash provided by our operations, cash on hand, and distributions from our BOMAY joint venture. During the Current Quarter, our principal sources of liquidity were cash provided from our operations and our existing cash balances. The Company used cash flows generated from operations to invest in fixed assets to support growth, as well as to pay interest and principal amounts outstanding under our debt agreements.
Current wording
The Company's principal sources of liquidity have consisted of cash provided by our operations, cash on hand, and distributions from our BOMAY joint venture, which was the case during the Current Year. The Company used cash flows generated from operations to invest in fixed assets to support growth, as well as to pay interest and principal amounts outstanding under our debt agreements.
Previous wording
As of March 31, 2025, we had $9.0 million in cash and cash equivalents on hand, $9.1 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $2.3 million is due in the next twelve months). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $3.5 million at March 31, 2025. During the three months ended March 31, 2025, the Company made no draw downs on either the Revolving Credit Facility or the AmeriState Secured Term Loan Facility.
Current wording
As of June 30, 2025, we had $12.2 million in cash and cash equivalents on hand, $8.4 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $1.9 million is due in the next twelve months). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $3.9 million at June 30, 2025. During the six months ended June 30, 2025, the Company made no draw downs on either the Revolving Credit Facility or the AmeriState Secured Term Loan Facility.
Previous wording
Net cash provided by operating activities totaled $1.0 million for the three months ended March 31, 2025 compared to $3.9 million for the same period in 2024. The decrease in net cash provided by operating activities of $2.9 million as compared to the Prior Year Quarter was primarily attributable to decreased profit as a result of lower income from operations in the Current Quarter.
Current wording
Net cash provided by operating activities totaled $5.5 million for the six months ended June 30, 2025 compared to $9.0 million for the same period in 2024. The decrease in net cash provided by operating activities of $3.4 million as compared to the Prior Year was primarily attributable to lower net income in the Current Year.
Previous wording
Net cash used in investing activities totaled $0.3 million for the three months ended March 31, 2025 compared to $0.7 million for the three months ended March 31, 2024. The decrease in net cash used in investing activities in the Current Quarter of $0.4 million was primarily due to cash paid to purchase additional liquefaction assets to support growth in the Prior Year Quarter.
Current wording
Net cash used in investing activities totaled $0.9 million for the six months ended June 30, 2025 compared to $2.0 million for the six months ended June 30, 2024. The decrease in net cash used in investing activities in the Current Year of $1.1 million was primarily due to cash paid to purchase additional liquefaction assets to support growth in the Prior Year.
Previous wording
Net cash used in financing activities totaled $0.7 million for the three months ended March 31, 2025, compared to $0.4 million for the three months ended March 31, 2024. The increase in cash used in financing activities in the Current Quarter compared to the Prior Year Quarter is due to additional debt payments on the AmeriState Loan.
Current wording
Net cash used in financing activities totaled $1.4 million for the six months ended June 30, 2025, compared to $0.9 million for the six months ended June 30, 2024. The increase in cash used in financing activities in the Current Year compared to the Prior Year is due to additional debt payments on the AmeriState Loan and payments related to finance leases for new mobile assets.
Previous wording
Capital expenditures for the three months ended March 31, 2025 were $0.5 million and primarily related to the purchase of additional liquefaction assets, refurbishments and upgrades to existing assets and rolling stock. Future capital expenditures will be dependent upon business needs and value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At March 31, 2025, the Company had open purchase orders and payables related to capital expenditures of approximately $0.2 million.
Current wording
Capital expenditures for the six months ended June 30, 2025 were $1.1 million and primarily related to the purchase of additional liquefaction assets, refurbishments and upgrades to existing assets and rolling stock. Future capital expenditures will be dependent upon business needs and value-adding investment opportunities as well as the availability of additional capital at favorable terms which is difficult to predict. At June 30, 2025, the Company had open purchase orders and payables related to capital expenditures of approximately $0.1 million.
Previous wording
The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. There have been no significant changes in the Company's “Critical Accounting Policies and Estimates” during the three months ended March 31, 2025 from those disclosed within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025.
Current wording
The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. There have been no significant changes in the Company's “Critical Accounting Policies and Estimates” during the three and six months ended June 30, 2025 from those disclosed within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
*Gain on disposal of assets.*The Company recorded a gain on disposal of assets of $0.1 million in the Prior Year Quarter related to the sale of certain assets in which proceeds of $0.1 million were received. The Company had no gains or losses on disposal of fixed assets in the Current Quarter.
Current report — wording carried from elsewhere
Interest (expense) income. Interest income, net was $24 thousand in the Current Quarter compared to $28 thousand in the Prior Year Quarter. In both periods, interest income, net related to interest earned on the Company's cash balances during the quarter.
Current report — wording carried from elsewhere
The comparative tables below reflect our consolidated operating results for the six months ended June 30, 2025 (the “Current Year”) as compared to the six months ended June 30, 2024 (the “Prior Year”) (unaudited, amounts in thousands, except for percentages).
Current report — wording carried from elsewhere
*Cost of revenues.*Cost of revenues decreased $1.6 million, or 6%, compared to the Prior Year. As a percentage of revenue, these costs were 74% and 71% in the Current Year and the Prior Year, respectively. The change in cost of revenues was primarily attributable to:
Current report — wording carried from elsewhere
Change in unrealized gain/loss on natural gas derivatives. The Company had a gain of $24 thousand on change in unrealized (gain) loss on natural gas derivatives in the Current Year compared to a gain of $0.3 million in the Prior Year. The decrease in the gain in the Current Year is due to the maturity of natural gas derivatives.
Current report — wording carried from elsewhere
Depreciation. Depreciation expense increased $0.2 million during the Current Year as compared to the Prior Year primarily due to new mobile assets in the Current Year compared to the Prior Year. The increase was partially offset by other assets reaching the end of their depreciable lives.
Current report — wording carried from elsewhere
*Net equity income from foreign joint venture operations.*Equity income from the Company's foreign joint venture decreased by $0.1 million in the Current Year compared to the Prior Year due to lower net profits by the joint venture in the Current Year.
Current report — wording carried from elsewhere
Income tax expense. The Company incurred income tax expense of $0.1 million during the Current Year compared to income tax expense of $0.5 million during the Prior Year. Income tax expense for the Current Year primarily related to foreign income taxes paid on the Company's dividends received from its joint venture investment in BOMAY. Income tax expense for the Prior Year primarily related to foreign income taxes paid on the Company's dividends received from the Company's joint venture investment in BOMAY and state income taxes related to the Prior Year operating income. No U.S. federal income taxes were recorded for the Current Quarter or Prior Year Quarter as any net U.S. deferred tax assets generated from operating losses or used from operating income were offset by a change in the Company's valuation allowance on net deferred tax assets.* *