Mr. Raveel Afzaal reports

NEXT HYDROGEN REPORTS Q4 AND FISCAL 2021 FINANCIAL RESULTS

Next Hydrogen Solutions Inc. has released its financial results for the fourth quarter and full year ended Dec. 31, 2021.

"After demonstrating our unique electrolyzers with 15 cubic nanometres/hour and 60 cubic nanometre/hour (0.4 megawatt (MW)) pilot projects, we are now well capitalized to scale up our technology to deliver large-scale hydrogen generation solutions to our customers," said Raveel Afzaal, president and chief executive officer of Next Hydrogen. "With a strong foundation and strong strategic partnerships in place, we are poised to execute quickly on our core objectives."

2021 financial highlights

• Revenue for the three-month period ended Dec. 31, 2021, was $41,069 compared with nil in the prior year. Revenue for the full year 2021 was $177,589 compared with $1,775 during the previous full year. All of this revenue was service revenue acquired as part of the company's acquisition of Clean Fuel Systems Inc. on April 1, 2021.
• Net loss for the three-month period ended Dec. 31, 2021 was $4.6-million, compared with a loss of $2.6-million in the three-month period ended Dec. 31, 2020. Net loss for the full year 2021 was $25-million compared with a loss of $6.9-million in fiscal 2020.
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the three-month period was a loss of $2.9-million compared with a loss of $800,000 in the prior year. Adjusted EBITDA for the full year 2021 was a loss of $9.6-million compared with a loss of $3.6-million in fiscal 2020.
• Cash balance was $39.2-million as of Dec. 31, 2021, compared with $1.1-million at Dec. 31, 2020.

Management is also proud to highlight a number of recent developments that demonstrate progress during the year:

• Next Hydrogen entered into an agreement with Hyundai Motor Co. and Kia Corp. to jointly develop an alkaline water electrolysis system and its related stack for the purpose of generating green hydrogen economically and to explore new business opportunities and technological applications.
• The company was selected by Black & Veatch, a global engineering, procurement, consulting and construction company, to participate in its IgniteX climate tech accelerator program. Next Hydrogen's unique hydrogen technology expertise and Black & Veatch's vast customer network and engineering leadership will offer an integrated hydrogen solution to clients worldwide.
• The company acquired the assets of Clean Fuel Systems, a hydrogen system integration and service company focused on delivering energy solutions through system design, component integration and development, and engineering solutions. This acquisition helped expand the scope of after-market service support and positions the company to be a turn-key solution provider to its customers.
• Next Hydrogen joined a coalition of 40 partners that will work together to become one of at least four regional clean hydrogen hubs designated through the United States federal Clean Hydrogen Hubs program included in the federal 2021 bipartisan Infrastructure Investment and Jobs Act to advance a vision that enables a long-term sustainable clean hydrogen industry in the U.S. Northeast.
• The company opened a new 27,000-square-foot facility in Mississauga, Ont., that will provide capacity for product assembly, testing, product development and engineering, and leadership functions across the company.
• Next Hydrogen successfully completed $61.5-million in gross equity financings over the past year, which is expected to fully finance the company to commercialization.
• The company has seen significant growth in its employee and contractor base, which has expanded from 13 to 47 during 2021, and recently complemented its technology and product development leadership with the hire of three exceptional vice-presidents (VP), who have fulfilled its end-to-end capabilities from product development to manufacturing and aftermarket support.
• Next Hydrogen added four independent members to its board of directors from Prologis, Ballard Power Systems, Google and Exchange Income Fund.
• The company successfully listed its shares on the TSX Venture Exchange under the symbol NXH and crosslisted on the OTCQB under the symbol NXHSF.

For a more detailed discussion of Next Hydrogen's fourth quarter and full year results, please see the company's audited consolidated financial statements and management's discussion and analysis, which are available on the company's website or SEDAR.

About Next Hydrogen Solutions Inc.

Founded in 2007, Next Hydrogen is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Next Hydrogen's unique cell design architecture supported by 39 patents enables high current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. Following successful pilots, Next Hydrogen is scaling up its technology to deliver commercial solutions to decarbonize transportation and industrial sectors.

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