CHAR Tech Reports Fiscal Year 2025 Financial Results and Commercialization Updates

Executive Summary

• CHAR Technologies Ltd. reported its fiscal year 2025 financial results (ended September 30, 2025), highlighting a significant gain on the contribution to a joint venture and a substantial reduction in liabilities.
• The company announced a non-brokered private placement completed in December 2025, raising approximately $1 million, and confirmed its listing on the Frankfurt Stock Exchange.
• Operational milestones include commercial biocarbon production at the Thorold facility, the successful deployment of a high-temperature pyrolysis system in Baltimore for PFAS destruction, and a UK court ruling requiring a subsidiary to pay $635,810 to Actinon.

Key Details

• FY25 Financial Highlights (CAD):
  • Total Revenue: $2,195,650 (down from $3,161,996 in FY24).
  • Gross Profit: $850,414 (up from $631,582 in FY24).
  • Gain on Contribution to Joint Venture: $4,131,709 (vs. nil in FY24).
  • Net Loss Before Income Taxes: ($1,121,188) (improved from ($7,524,006) in FY24).
  • Total Assets: $8,886,846 (decreased by $6,465,625).
  • Total Liabilities: $3,988,089 (decreased by $10,892,692).
  • Total Shareholders' Equity: $4,898,757 (increased by $4,427,067).
• Financing Activity (Subsequent Event):
  • On December 22, 2025, the Company completed a non-brokered private placement.
  • Issued 4,550,000 units at $0.22 per unit.
  • Gross Proceeds: $1,001,000.
  • Warrant Terms: Each unit includes one non-transferable common share purchase warrant exercisable at $0.32 per share for 24 months.
  • Finder’s Fees: Approximately $60,000.
  • Use of Proceeds: General working capital and advancement of the project pipeline.
• Partnerships and Project Updates:
  • BMI Group Partnership: BMI invested $2M into CHAR Tech and $8M into the Thorold Project during FY25.
  • Espanola Biocarbon Project: BMI reaffirmed a $10M commitment to the development of the Espanola biocarbon project (subject to engineering/design study completion).
  • Thorold Facility: Commercial biocarbon production is underway; production is set to increase as construction and commissioning progress.
  • Baltimore Project: Successful deployment of a high-temperature pyrolysis (HTP) system for PFAS destruction in biosolids, a global first. The six-month operational program completed on November 6, 2025, with performance data currently being analyzed.
• Legal Matters:
  • On January 21, 2026, the High Court of Justice in the UK ruled in favor of Actinon against CHAR Technologies' subsidiary, CHAR Biocarbon Inc.
  • Judgment Amount: US$635,810 payable by CHAR Biocarbon Inc. to Actinon.
  • Status: The amount was recorded as a contingent liability. CHAR Biocarbon intends to seek leave to appeal the decision.
• Market Listings:
  • Common shares are listed on the TSX Venture Exchange (YES) and the Frankfurt Stock Exchange (68K), with the Frankfurt listing announced on December 31, 2025.

Notable Quotes

• "As CHAR Tech reports our fiscal 2025 results, we are immensely proud of the progress we've made this year... As we continue to develop projects, the effort that the team puts into project development prior to the formation of a limited partnership can be expected to produce a gain for the Company." — Andrew White, CEO