Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES FY2024 RESULTS

California Nanotechnologies Corp. had record annual revenues of $3,337,457 (U.S.) for the fiscal year ended Feb. 29, 2024. This represents an increase of 142 per cent compared with the same period last year. Revenues for the quarter ended Feb. 29, 2024, were $983,004 (U.S.), representing an increase of 171 per cent compared with the same period last year.

Net income for the fiscal year was $381,678 (U.S.), compared with $79,764 (U.S.) in the same period last year, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,157,141 (U.S.), compared with $384,174 (U.S.) for the same period last year. A net loss of $318,359 (U.S.) was recorded for the quarter ended Feb. 29, 2024, compared with a net loss of $8,811 (U.S.), while adjusted EBITDA was $325,326 (U.S.), compared with $73,025 (U.S.) for the same period last year.

Diluted earnings per share for the fiscal year increased to one cent compared with nil in the same period last year, while remaining unchanged at nil for the quarter ended Feb. 29, 2024, compared with the same period last year.

Adjusted EBITDA showed significant improvements due to the contribution margin from higher revenue generation relating to research and development manufacturing programs and equipment sales, which was partly offset by new investments to expand the company's manufacturing footprint. Net income saw improvements for the reasons above but was partly offset by a $363,256 (U.S.) unrealized loss on share purchase warrants, employee bonus payments and consulting expenses. The financial statements are available on SEDAR+ and on the company's website.

"FY 2024 was a transformative year for Cal Nano as we executed on growth initiatives, including the signing of key clients, scaling up R&D contracts, signing a new lease to expand our footprint, and installing additional capacity," stated chief executive officer Eric Eyerman. "We hope to continue the momentum in the new fiscal year, and at this time, we are expecting [first quarter] FY 2025 to be a record quarter in revenue and profitability."

The increase in revenue for FY 2024 was attributable to the continuing ramp-up of R&D manufacturing programs and Spark Plasma Sintering equipment deliveries. Q4 FY 2024 saw higher revenues from R&D manufacturing and no contributions from equipment sales. The green steel cleantech customer continues to be the largest customer to date and accounts for the majority of revenues for the 2024 fiscal year. California Nano is in the pilot production stage with several customers in the aerospace, industrial and automotive markets which have the potential to convert to commercial production contracts.

California Nano delivered two SPS systems in Q1 FY 2025 (one to each of the University of Connecticut and Embry-Riddle University), contributing to the expected record revenue quarter. While not a core focus, California Nano expects equipment sales and deliveries to continue, helping build its growing aftermarket parts and service business.

Since the company took possession of the new Santa Ana facility on March 1, 2024, the infrastructure to support the new cryomilling equipment has been completed along with securing key operational permits. Preparation of the infrastructure for the new MSP-5 SPS machine is continuing in anticipation of its delivery in August, 2024. Since California Nano announced the purchase of the MSP-5, the company has garnered interest from new and existing customers which have started initial production discussions. The new machine has opened new markets for California Nano due to its larger size allowing bigger, more expensive parts to be processed.

California Nano currently expects fiscal year 2025 to be another year of significant growth as it makes the transition to its new facility and executes on R&D and potential commercial manufacturing opportunities.

Lastly, the company currently expects to release its Q1 FY 2025 on or about mid-July.

About California Nanotechnologies Corp.

At California Nano, it envisions a world in which its advanced technologies are used to help make the most innovative products on this planet and beyond. Global leaders trust it to help push the boundaries of applied material science by utilizing its unique technical expertise and vision. Headquartered in greater Los Angeles in California, California Nano hosts advanced processing and testing capabilities for material research and production needs. Customers range from Fortune 500 companies to start-ups with programs spanning aerospace, renewable energy, defence and semiconductors.

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