Next Hydrogen earns $100,000 in Q3 2025

Executive Summary

• Next Hydrogen Solutions Inc. reported profitable third-quarter 2025 financial results, turning a net loss into a net income of $100,000, driven by increased revenues from a development contract nearing completion.
• The company announced a transformative non-brokered private placement of common shares for gross proceeds of $20 million to $30 million at 45 cents per share, led by Smoothwater Capital Corp, expected to close in late November 2025.
• Operational milestones include the successful commissioning of Ontario’s largest on-site hydrogen fuelling station and the drawing of additional funds under existing debt facilities to support operations and bridge financing.

Key Details

• Q3 2025 Financial Highlights (Three Months Ended Sept. 30, 2025):
  • Revenues: $2.3 million (compared to $100,000 in the prior year period).
  • Net Income: $100,000 (compared to a net loss of $3.9 million in the prior year period).
  • Profitability driven primarily by increased revenues from a development contract nearing completion.
• Nine-Month Period Financials (Ended Sept. 30, 2025):
  • Revenues: $2.9 million (compared to $1.2 million in the prior year).
  • Net Loss: $5.8 million (compared to $11.2 million in the prior year).
• Cash Position:
  • Cash balance was $900,000 as of Sept. 30, 2025, compared with $3.6 million as of Dec. 31, 2024.
• Financing Announcement (Non-Brokered Private Placement):
  • Announced in November 2025.
  • Structure: Common shares at 45 cents per share.
  • Gross Proceeds: $20 million to $30 million.
  • Lead Investor: Smoothwater Capital Corp.
  • Use of Proceeds: Accelerate commercialization of proprietary electrolyzer NH-150, advance development of larger NH-500 model, and execute a capital-light growth strategy toward cash-flow positivity.
  • Expected Close: On or about Nov. 28, 2025, subject to regulatory approvals (including TSX Venture Exchange).
• Operational Milestones:
  • Hydrogen Station Commissioning (July 2025): Successful commencement of operation of an electrolyzer at a major distribution centre, inaugurating Ontario's largest onsite clean hydrogen generation and fueling station.
  • Capacity: Designed to produce up to 650 kilograms of hydrogen per day to support fuel cell forklifts.
• Debt and Bridge Financing:
  • Unsecured Loan (July 2025): Entered into a loan agreement with existing directors and officers for an unsecured loan of $500,000 to bridge finances and retain talent.
  • Working Capital Facility (July 2025): Drew an additional $1 million under a $5 million working capital debt facility with Export Development Canada.
  • Total Drawn: $4 million of the $5 million facility has been drawn to date.

Notable Quotes

• "Last week, we announced a transformative financing following the successful commissioning of our electrolyzer at the largest on-site hydrogen fuelling station in Ontario. We view this as a testament to our proprietary electrolyzer technology for cost-effective clean hydrogen production," said Raveel Afzaal, president and chief executive officer.
• "This financing, once closed, is expected to fully fund us to cash flow positive while enabling us to scale our existing product line and launch our larger product line. We will execute on a capital light strategy in partnership with leading Canadian and global companies."