Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES Q2/FY2023 RESULTS AND NEW CUSTOMER RELATIONSHIP

California Nanotechnologies Corp. had revenues of $271,969 (U.S.) for the quarter ended Aug. 31, 2022. This represents an increase of 61 per cent from the previous year. For the first six months of fiscal 2023, revenues increased to $601,148 (U.S.) from $374,525 (U.S.) in the previous year. Net income for the first half of the year was $23,773 (U.S.), and earnings before interest, taxes, depreciation and amortization were $153,442 (U.S.). Complete financial statements are available at SEDAR.

The largest revenue contributors in this quarter were new programs with Ambri and NASA along with other SPS-related projects.

"Developments with Ambri on a key component for their next-generation battery technology continue to progress as we explore new materials compositions for enhanced performance. The next set of prototypes are planned to be delivered in early 2023," stated chief executive officer Eric Eyerman.

With business coming around to postpandemic status, we are seeing increases in our expertise to support [research and development] to production capabilities in the aerospace, automotive and green energy sector. The thermoelectric customer that has been discussed in previous releases was focused on completion of its prototype device and, in the quarter, was not a material contributor to revenue. California Nanotechnologies continues to expect additional business from this customer in the near term.

California Nanotechnologies is pleased to announce that it has been engaged by a biotech company with a sustainability-focused supply chain to provide cryomilling services to reduce the particle size of a compound that will be used as a coating material. Revenue of approximately $70,000 was generated in October, 2022, and is expected to continue at over $50,000 per month, making this the largest cryomilling contract to date for California Nanotechnologies.

"While we are unable to predict the ultimate duration of the customer's requirements, we hope that this becomes an ongoing revenue stream, and expect a visible impact on [third quarter] and [fourth quarter] results," said Mr. Eyerman.

California Nanotechnologies also expects to deliver its first SPS system to Stony Brook University in its role as U.S. distributor for Suga Co., which should add approximately $130,000 to Q4 revenue.

As a result of cash generated by the company's recent business successes, California Nanotechnologies elected to repay its bank term loan early and has now fully extinguished all bank debt.

As noted in a recent press release, California Nanotechnologies' CEO recently attended and presented at the LD Micro event earlier this month.

"This is part of our continued effort to meet with current and new investors and get more people aware of the Cal Nano story and potential for sustainable and significant growth with our advanced technologies," stated Mr. Eyerman.

California Nanotechnologies is the sole North American provider for commercial SPS services. With multiple systems in-house, California Nanotechnologies is able to manufacture parts from advanced materials in multiple sizes and shapes at production scale. SPS is used for turning powders into solid parts, using a pulsed current and high pressure. Due to its unique method of heating, it is superior for sintering advanced and nanomaterials that will go into the next generation of enhanced products in the aerospace, green energy and defence industries.

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