Charbone Hydrogen Announces Q2 2025 Financial Results

Executive Summary

• CHARBONE Hydrogen Corporation released its financial and operational results for the three and six-month periods ending June 30, 2025, highlighting a significant decrease in net loss and the first recognition of revenues.
• Construction has commenced at the Sorel-Tracy facility, with electrical interconnection and water supply completed; production is targeted to start this fall.
• The company secured a US $50 million construction capital facility term sheet and executed an offtake agreement with a US Tier One industrial gases producer to diversify revenue streams.

Key Details

• Financial Performance (Q2 2025):
  • Net loss decreased by 39% to $444,542 for the three months ended June 30, 2025, compared to $729,425 in Q2 2024.
  • General and administrative expenses continue to be tightened.
• Revenue Recognition:
  • First recognition of revenues occurred following the advancement of activities from the Master Collaborative Agreement to support the deployment of a Malaysian green hydrogen project.
• Capital Activities & Debt Settlement:
  • Closed units for debt settlement totaling $1,273,702.
  • Issued shares for management debt settlement totaling $310,000.
  • Exercises of warrants totaling $575,022 (compared to $223,378 in Q2 2024).
• Strategic Agreements:
  • Signed a term sheet for a construction capital facility of up to US $50 million.
  • Executed an offtake agreement with a US Tier One industrial gases producer to expand offerings and generate immediate revenues.
• Operational Updates:
  • Construction of the Sorel-Tracy facility has started.
  • Hydro-Québec completed electrical interconnection and metering.
  • The town has connected the water supply.
  • Contractors have started civil construction works.
  • The project remains on track to start production this fall.

Notable Quotes

• “Charbone’s disciplined financial management and new strategic partnerships position the company to achieve its vision of becoming a North American leader in green hydrogen and industrial gases distribution networks. These advancements underscore its commitment to being a game-changer in the energy transition.” — Benoit Veilleux, CFO and Corporate Secretary
• “Management is motivated to keep working on structuring deals to preserve cash. CHARBONE is moving into execution mode to unlock its strong growth potential in the short term.” — Benoit Veilleux, CFO and Corporate Secretary