Base Carbon Reports Second-Quarter 2025 Operating and Financial Results

Executive Summary

• Base Carbon Inc. reported its second-quarter 2025 consolidated financial results, highlighting a net cash proceeds of $1.0 million from Vietnam cookstove carbon credit monetization and significant inventory growth.
• The company holds a balance of 1,905,003 Article 6 Authorized labelled carbon credits, with recent issuances from the Rwanda project and a pending requantification request to Verra to align with CORSIA-approved VM0050 methodology.
• Financially, the company reported an operating loss of $743,000 for Q2 2025 (compared to an operating income of $9.97 million in Q2 2024), driven by realized gains on carbon credit investments and operating expenses.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Realized cash settled gains on investments in carbon credit projects: $1,022,000 (2024: $12,508,000).
  • Total operating expenses: $1,765,000 (2024: $2,537,000).
  • Operating income (loss): $(743,000) (2024: $9,971,000).
  • Unrealized gains on investments in carbon credit projects: $1,182,000 (2024: $(1,838,000)).
  • Comprehensive income: $239,000 (2024: $7,470,000).
  • Basic income per share: $0.00 (2024: $0.06).
  • Diluted income per share: $0.00 (2024: $0.06).
• Balance Sheet Highlights (as of June 30, 2025):
  • Total assets: $110,969,000.
  • Cash and cash equivalents: $10,425,000.
  • Carbon credit inventory: $25,633,000.
  • Current investment in carbon credit projects: $11,550,000.
  • Non-current investment in carbon credit projects: $61,096,000.
  • Total liabilities: $8,802,000.
  • Total shareholders’ equity: $102,167,000.
• Vietnam Household Devices Project:
  • Received $1,021,522 in net cash proceeds from off-taker Citigroup for delivery and monetization of cookstove carbon credits.
  • Recognized an unrealized gain of $897,174 from the unwinding of the discount rate.
  • SIPCO delivered an aggregate total of 7.4 million credits, completing Phase 1.
  • Phase 2 begins with an option for BCCPC to purchase all further credits at $5 per credit.
  • Cumulative cash proceeds since inception: ~$36.3 million.
  • Cumulative cash gain since inception: ~$15.4 million.
  • Agreement reached with SIPCO to apply Verra’s new VM0050 methodology to the cookstove component.
• Rwanda Cookstoves Project:
  • Recognized an unrealized gain of $284,586 from the unwinding of the 15% project discount rate.
  • DelAgua Group submitted a requantification request to Verra in May 2025 to move all credits from VMR0006 to VM0050 methodology.
  • Post-quarter end, 192,810 Article 6 Authorized labelled carbon credits were received into inventory, increasing the balance by 11.2%.
  • An additional 371,272 carbon credits were issued to DelAgua Group under a revenue-sharing arrangement.
• India ARR Project:
  • Submitted for validation to Verra by partner Value Network Ventures Pte. Ltd. (VNV).
  • First issuance expected in the first half of 2026.
  • VNV completed planting of 6,500,000 trees; mortality rate is within expected range.
  • VNV is contractually obligated to replace mortalities to maintain a standing stock of 6,500,000 trees.
• Corporate Actions:
  • Renewed normal course issuer bid (NCIB) during Q2.
  • Year-to-date, repurchased approximately 6 million shares at an average price of C$0.49 per share (approx. US$0.36 per share).
• Pipeline & Strategy:
  • Actively assessing capital deployments for "near-carbon environmental industrials" including biochar, agroforestry, and direct air capture.
  • Plans to limit capital commitments to prudently underwritable and value-accretive opportunities.
• Upcoming Events:
  • Investor Town Hall planned for September 2025 via Zoom Webinar; details to follow.