Northstar Reports Second Quarter 2025 Financial and Operating Results and Announces Upcoming Investor Conference Call

Executive Summary

• Northstar Clean Technologies Inc. reported its financial and operating results for the second quarter and first half of 2025, highlighting continued operational progress at its Calgary Empower Facility and significant patent acquisitions.
• The company received $3.9 million from Emissions Reduction Alberta (ERA) for completing Milestone 2 of its contribution agreement and finalized the drawdown of its BDC Project Loan.
• A non-binding letter of interest was received from Export Development Canada (EDC) for potential project financing of up to C$12.5 million per facility for planned US expansion, subject to due diligence.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Net Loss: $3,130,135 (2025) vs $1,375,777 (2024).
  • Net Cash Flow Used in Operating Activities: $918,205 (2025) vs $605,773 (2024).
  • Capital Expenditures: $1,946,558 (2025) vs $4,094,208 (2024).
• Financial Performance (Six Months Ended June 30, 2025 vs 2024):
  • Net Loss: $6,080,052 (2025) vs $2,957,355 (2024).
  • Net Cash Flow Used in Operating Activities: $3,256,857 (2025) vs $1,806,941 (2024).
  • Capital Expenditures: $6,027,047 (2025) vs $5,942,486 (2024).
• Liquidity & Capitalization (as of June 30, 2025):
  • Working Capital Deficit: $(1,697,301).
  • Senior Secured Non-Revolving Loan: $8,750,000.
  • Convertible Debentures Principal Outstanding: $9,305,000 (down from $10,405,000 due to conversions).
  • Royalty Debenture Balance: $15,141,000 (includes fair value increase).
  • Weighted Average Shares Outstanding (Basic/Diluted): 136,448,577.
  • Common Shares Outstanding (End of Period): 137,476,985.
• Operational & Strategic Updates:
  • Patents: Received a second Canadian patent for proprietary asphalt reprocessing technology on April 7, 2025, valid until 2042. This adds to two US patents and one prior Canadian patent.
  • Calgary Facility Commissioning:
    • April 21, 2025: Completed commissioning of the water-based front-end process, delivering specification segregated aggregate.
    • July 10, 2025: Completed commissioning of the hydrocarbon-based back-end process, delivering high-quality asphalt product that exceeded previous Delta Pilot specifications and shingle-oil feedstock requirements.
  • ERA Funding: Received $3.9 million on May 5, 2025, for completing Milestone 2 of the Contribution Agreement with Emissions Reduction Alberta. Remaining milestones involve sustained operations.
  • BDC Loan: Final draw of $617,698 made on May 20, 2025. The loan will fully amortize over the next 13 years.
  • US Expansion Financing: Received a non-binding LOI from Export Development Canada (EDC) on June 30, 2025, for potential project financing of up to C$12.5 million per facility for US Facility #1 and three additional facilities. Security and covenants are directly attributable to the specific facilities.
• Subsequent Event (Post-Q2):
  • Closed a non-brokered private placement of 11,926,664 units at $0.30 per unit for gross proceeds of approximately $3.6 million.
  • Each unit includes one common share and one common share purchase warrant.
  • Warrants are exercisable at $0.45 per share for 36 months from the closing date.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.