Charbone has G&A expenses of $519,697 in Q3 2025

Executive Summary

• Charbone Hydrogen Corp. reported Q3 2025 results, showing a 17% reduction in net operating loss to $577,159.
• Completed Phase 1A construction at the Sorel‑Tracy facility and began commissioning; first hydrogen production expected imminently.
• Executed multiple financing transactions—including new convertible debentures ($2.05 M total), a private placement ($1.01 M), debt settlement units ($1.78 M), and an equity issuance of 13,333,334 shares ($1 M) for the acquisition of Harnois Energies’ hydrogen equipment.

Key Details

• Construction Update: Phase 1A of the Sorel‑Tracy hydrogen plant is fully built; all components installed and connected, commissioning tests underway, production slated to start within days.
• Financial Performance: Net operating loss for Q3 2025 = $577,159 (down 17% from $697,894 in Q2 2025).
• Revenue Recognition: Revenues recognized from advancement of the master collaborative agreement supporting a Malaysian green‑hydrogen project announced in Q2 2025.
• Convertible Debentures: Issued new secured convertible debentures totaling $2,050,000 (including an additional $303,634) at 12% annual interest, convertible at $0.07 per share, maturing in one year.
• Private Placement: Closed a private placement raising $1,012,980 (with $551,000 received in October 2025).
• Debt Settlement Units: Issued units for debt settlement valued at $1,776,827 (including $503,125 issued in October 2025).
• Management Debt Settlement Shares: Issued shares worth $310,000 to settle management‑related debt.
• Warrant Exercises: Warrants exercised totaling $657,672 (with $452,345 exercised in Q3 2024).
• Acquisition of Harnois Energies Assets: Signed asset purchase agreement; completed acquisition and reinstallation of hydrogen production & refueling equipment at Sorel‑Tracy. Issued 13,333,334 common shares at $0.075 per share ($1 M equity consideration) to Harnois Energies Inc. as part of the transaction.
• Offtake Agreement: Executed an offtake agreement with a U.S. Tier 1 industrial gases producer; made first helium delivery in October 2025, initiating revenue from industrial gas distribution.

Notable Quotes

“Management is motivated to keep working on structuring deals to finance further project investments and expansion,” said Benoit Veilleux, CFO & Corporate Secretary.
“Charbone is moving into execution mode to unlock its strong growth potential.”