NanoXplore Inc.: NanoXplore Reports Results for its Q2-2025

MONTREAL, Feb. 11, 2025 (GLOBE NEWSWIRE) -- NanoXplore Inc. ("NanoXplore" or "the Corporation") (TSX: GRA and OTCQX: NNXPF), a world-leading graphene company, reported today financial results for the three-month and six-month periods ended December 31, 2024.

All amounts in this press release are in Canadian dollars, unless otherwise stated.

Key Financial Highlights

• Total revenues of $33,120,886 in Q2-2025 compared to $29,063,024 in Q2-2024, representing a 14% increase;
• Adjusted gross margin⁽¹⁾ on revenues from customers of 21.3% in Q2-2025 compared to 19.4% in Q2-2024;
• Loss of $2,894,922 in Q2-2025 compared to $2,428,388 in Q2-2024;
• Adjusted EBITDA ⁽²⁾ of $1,102,050 in Q2-2025 compared to an adjusted EBITDA loss of $92,806 in Q2-2024;
• Adjusted EBITDA ⁽²⁾ of $1,319,926 in Q2-2025 compared to $416,000 in Q2-2024 for the Advanced Materials, Plastics and Composite Products segment;
• Adjusted EBITDA ⁽²⁾ loss of $217,876 in Q2-2025 compared to an adjusted EBITDA loss of $508,806 in Q2-2024 for the Battery Cells and Materials segment (VoltaXplore initiative);
• Total liquidity of $31,050,804 as at December 31, 2024, including cash and cash equivalents of $21,050,804;
• Total long-term debt of $5,452,604 as at December 31, 2024, down by $893,899 compared to June 30, 2024.

Overview

Pedro Azevedo, Chief Financial Officer, stated: "Our second quarter continued the solid start to the year with mid-double digit sales growth, continued adjusted gross margin expansion driving a higher adjusted EBITDA, and demonstrating the underlying strength of the business. With the risk of tariffs in the backdrop since the US election and especially given the events of last week, the decision to increase our US manufacturing presence was the right one. During the past quarter, we have selected the new site and expect to begin production in late summer which will contribute to incremental sales."

Soroush Nazarpour, President & Chief Executive Officer, stated: "Our second quarter results show our ability to perform and execute in a quickly evolving macro environment. We continue to build the company for the long term with a focus on creating value for all stakeholders. In the quarter we have made significant inroads in two key growth segments for our graphene products namely drilling fluid and insulation foam. We are finalizing plans for our large scale dry-processed graphene pilot plant in our Montreal facility with production planed by the end of 2025. Finally, our US expansion is well underway and could not be timelier given the specter of tariffs. Our financial situation is strong and gives us the agility to execute our near-term growth plans as well as on our 5-year strategic plan."

* Non-IFRS Measures

The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted gross margin".

The following tables provide a reconciliation of IFRS "Loss" to Non-IFRS "Adjusted EBITDA" and of IFRS "Gross margin" to Non-IFRS "Adjusted Gross margin" for the three-month periods ended December 31, 2024 and 2023.

IFRS "Loss" to Non-IFRS "Adjusted EBITDA"

	Q2-2025		Q2-2024		YTD 2025		YTD 2024
	$		$		$		$
Loss	(2,894,922)		(2,428,388)		(5,613,934)		(6,154,466)
Current and deferred income tax expenses (recovery)	400,155		(116,870)		874,769		(343,299)
Net interest expenses (revenues)	118,181		(18,032)		157,023		(47,945)
Gain on disposal of property, plant and equipment	-		-		-		(18,260)
Foreign exchange	201,920		(518,778)		232,002		53,818
Share-based compensation expenses	366,182		225,416		883,718		527,478
Non-operational items (1)	115,000		40,000		155,000		80,000
Depreciation and amortization	2,795,534		2,723,846		5,537,771		5,361,536
Adjusted EBITDA	1,102,050		(92,806)		2,226,349		(541,138)
- From Advanced Materials, Plastics and Composite Products	1,319,926		416,000		2,832,030		586,654
- From Battery Cells and Materials	(217,876)		(508,806)		(605,681)		(1,127,792)

(1)	Non-operational items consist of professional fees mainly due to debt renegotiation and to prospectuses related fees.

IFRS "Gross margin" to Non-IFRS "Adjusted Gross margin"

	Q2-2025		Q2-2024		YTD 2025		YTD 2024
	$		$		$		$
Revenues from customers	32,636,947		28,559,390		65,964,016		57,266,142
Cost of sales	25,685,206		23,031,357		52,055,110		46,078,811
Adjusted gross margin	6,951,741		5,528,033		13,908,906		11,187,331
Depreciation (production)	1,645,083		1,563,699		3,265,264		3,080,846
Gross margin	5,306,658		3,964,334		10,643,642		8,106,485

Reporting Segments results

NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery Cells.

	Q2-2025		Q2-2024		Variation				YTD 2025		YTD 2024		Variation
	$		$		$		%		$		$		$		%
From Advanced Materials, Plastics and Composite Products
Revenues	33,109,366		29,058,796		4,050,570		14%		66,744,959		57,972,897		8,772,062		15%
Non-IFRS Measure *
Adjusted EBITDA	1,319,926		416,000		903,926		217%		2,832,030		586,654		2,245,376		383%
From Battery Cells and Materials
Revenues	11,520		4,228		7,292		172%		41,341		26,158		15,183		58%
Non-IFRS Measure*
Adjusted EBITDA	(217,876)		(508,806)		290,930		57%		(605,681)		(1,127,792)		522,111		46%

A. Results of operations variance analysis - Three-month periods

Revenues

	Q2-2025		Q2-2024		Variation				Q1-2025		Variation
	$		$		$		%		$		$		%
Revenues from customers	32,636,947		28,559,390		4,077,557		14%		33,327,069		(690,122)		(2%)
Other income	483,939		503,634		(19,695)		(4%)		338,345		145,594		43%
Total revenues	33,120,886		29,063,024		4,057,862		14%		33,665,414		(544,528)		(2%)

All revenues are coming from the segment of Advanced Materials, Plastics and Composite Products, except for $11,520 of other revenues [Q2-2024 - $4,228] from the Battery Cells and Materials segment.

Revenues from customers increased from $28,559,390 in Q2-2024 to $32,636,947 in Q2-2025. This increase is mainly due to higher tooling revenues and positive FX impact.

Other income decreased from $503,634 in Q2-2024 to $483,939 in Q2-2025. The variation is due to grants received for R&D programs.

Adjusted EBITDA

1) From Advanced Materials, Plastics and Composite Products

The adjusted EBITDA increased from $416,000 in Q2-2024 to $1,319,926 in Q2-2025. The variation is explained as follows:

• Adjusted Gross margin on revenues from customers increased by $1,423,708 compared to Q2-2024 due to higher sales as described above, favourable product mix, improved productivity and cost control;
• Partially offset by higher Selling, General & Administration and Research & Development expenses of $567,795 mainly due to timing of professional fees.
  

2) From Battery Cells and Materials

The adjusted EBITDA loss improved from a loss of $508,806 in Q2-2024 to a loss of $217,816 in Q2-2025. The variation is explained by the operational expenses decrease (Selling, General & Administration and Research & Development) of $283,638.

B. Results of operations variance analysis - six-month periods

Revenues

	YTD 2025		YTD 2024		Variation
	$		$		$		%
Revenues from customers	65,964,016		57,266,142		8,697,874		15%
Other income	822,284		732,913		89,371		12%
Total revenues	66,786,300		57,999,055		8,787,245		15%

All revenues are coming from the segment of advanced materials, plastics and composite products, except for $41,341 of other income [YTD 2024 - $26,158] from the Battery Cells and Materials segment.

Revenues from customers increased from $57,266,142 in the last year period to $65,964,016 in the current period. This increase is mainly due to a higher volume, higher tooling revenues and a positive FX impact.

Other income increased from $732,913 in the last year period to $822,284 in the current period. The variation is due to grants received for R&D programs.

Adjusted EBITDA

1) From Advanced Materials, Plastics and Composite Products

The adjusted EBITDA increased from $586,654 in the last year period to $2,832,030 in the current period. The variation is explained as follows:

• Gross margin on revenues from customers increased by $2,721,575 compared to last year due to favourable product mix, improved productivity and cost control;
• Higher Other income of $89,371; and
• Partially offset by higher administrative expenses (Selling, General & Administration and Research & Development) of $625,387 mainly due to higher wages, including higher accrued variable compensation.
  

2) From Battery Cells and Materials

The adjusted EBITDA loss improved from a loss of $1,127,792 in the last year period to a loss of $605,681 in the current period. The variation is explained by lower administrative expenses (Selling, General & Administration and Research & Development) of $506,928.

C. Other

Additional information about the Corporation, including the Corporation's Management Discussion and Analysis for the three-month and six-month periods ended December 31, 2024 and 2023 ("MD&A") and the Corporation's consolidated financial statements for the three-month and six-month periods ended December 2024 and 2023 (the "financial statements") can be found at www.nanoxplore.ca.

Webcast

NanoXplore will hold a webcast tomorrow, February 12, 2025, at 10:00 am EST to review its three-month and six-month periods ended December 31, 2024. Soroush Nazarpour, CEO and President of NanoXplore, and Pedro Azevedo, Chief Financial Officer, will host the event. To access the webcast please click on the link https://edge.media-server.com/mmc/p/u4qihx57 or you can access through our website in the Investors section under Events and Presentations. A replay of this event can be accessed via the above link or on our website.

About NanoXplore

NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon-graphene-enhanced Li-ion battery manufacturer for the Electric Vehicle and grid storage markets. NanoXplore is headquartered in Montreal, Quebec with manufacturing facilities in Canada, the United States and Europe.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in NanoXplore's most recent annual management discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which may cause NanoXplore's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy, notably as a consequence of the Covid-19 pandemic. Any forward-looking information is made as of the date hereof and, except as required by law, NanoXplore does not undertake any obligation to update or revise any forward-looking statement as a result of new information, subsequent events or otherwise.

Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.

No securities regulatory authority has either approved or disapproved the contents of this press release.

For further information, please contact:

Pierre Yves Terrisse
Vice-President Corporate Development
[e-mail]
Tel: [phone]

(1)	Adjusted gross margin is a non-IFRS measure and a reconciliation can be found in the "Overall Results" section in the MD&A
(2)	Adjusted EBITDA is a non-IFRS measure and a reconciliation can be found in the "Overall Results" section in the MD&A