MONTREAL, Feb. 11, 2025 (GLOBE NEWSWIRE) -- NanoXplore Inc. ("NanoXplore” or "the Corporation”) (TSX: GRA and OTCQX: NNXPF), a world-leading graphene company, reported today financial results for the three-month and six-month periods ended December 31, 2024.
All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights
- Total revenues of $33,120,886 in Q2-2025 compared to $29,063,024 in Q2-2024, representing a 14% increase;
- Adjusted gross margin( 1) on revenues from customers of 21.3% in Q2-2025 compared to 19.4% in Q2-2024;
- Loss of $2,894,922 in Q2-2025 compared to $2,428,388 in Q2-2024;
- Adjusted EBITDA (2) of $1,102,050 in Q2-2025 compared to an adjusted EBITDA loss of $92,806 in Q2-2024;
- Adjusted EBITDA (2) of $1,319,926 in Q2-2025 compared to $416,000 in Q2-2024 for the Advanced Materials, Plastics and Composite Products segment;
- Adjusted EBITDA (2) loss of $217,876 in Q2-2025 compared to an adjusted EBITDA loss of $508,806 in Q2-2024 for the Battery Cells and Materials segment (VoltaXplore initiative);
- Total liquidity of $31,050,804 as at December 31, 2024, including cash and cash equivalents of $21,050,804;
- Total long-term debt of $5,452,604 as at December 31, 2024, down by $893,899 compared to June 30, 2024.
Pedro Azevedo, Chief Financial Officer, stated: "Our second quarter continued the solid start to the year with mid-double digit sales growth, continued adjusted gross margin expansion driving a higher adjusted EBITDA, and demonstrating the underlying strength of the business. With the risk of tariffs in the backdrop since the US election and especially given the events of last week, the decision to increase our US manufacturing presence was the right one. During the past quarter, we have selected the new site and expect to begin production in late summer which will contribute to incremental sales.”
Soroush Nazarpour, President & Chief Executive Officer, stated: "Our second quarter results show our ability to perform and execute in a quickly evolving macro environment. We continue to build the company for the long term with a focus on creating value for all stakeholders. In the quarter we have made significant inroads in two key growth segments for our graphene products namely drilling fluid and insulation foam. We are finalizing plans for our large scale dry-processed graphene pilot plant in our Montreal facility with production planed by the end of 2025. Finally, our US expansion is well underway and could not be timelier given the specter of tariffs. Our financial situation is strong and gives us the agility to execute our near-term growth plans as well as on our 5-year strategic plan.”
* Non-IFRS Measures
The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA” and "Adjusted gross margin”.
The following tables provide a reconciliation of IFRS "Loss” to Non-IFRS "Adjusted EBITDA” and of IFRS "Gross margin” to Non-IFRS "Adjusted Gross margin” for the three-month periods ended December 31, 2024 and 2023.
IFRS "Loss” to Non-IFRS "Adjusted EBITDA”
| Q2-2025 | Q2-2024 | YTD 2025 | YTD 2024 | |||||
| $ | $ | $ | $ | |||||
| Loss | (2,894,922) | (2,428,388) | (5,613,934) | (6,154,466) | ||||
| Current and deferred income tax expenses (recovery) | 400,155 | (116,870) | 874,769 | (343,299) | ||||
| Net interest expenses (revenues) | 118,181 | (18,032) | 157,023 | (47,945) | ||||
| Gain on disposal of property, plant and equipment | - | - | - | (18,260) | ||||
| Foreign exchange | 201,920
| (518,778) | 232,002
| 53,818 | ||||
| Share-based compensation expenses | 366,182 | 225,416 | 883,718 | 527,478 | ||||
| Non-operational items (1) | 115,000 | 40,000 | 155,000 | 80,000 | ||||
| Depreciation and amortization | 2,795,534 | 2,723,846 | 5,537,771 | 5,361,536 | ||||
| Adjusted EBITDA | 1,102,050 | (92,806) | 2,226,349 | (541,138) | ||||
| - From Advanced Materials, Plastics and Composite Products | 1,319,926 | 416,000 | 2,832,030 | 586,654 | ||||
| - From Battery Cells and Materials | (217,876) | (508,806) | (605,681) | (1,127,792) |
| (1) | Non-operational items consist of professional fees mainly due to debt renegotiation and to prospectuses related fees. |
| Q2-2025 | Q2-2024 | YTD 2025 | YTD 2024 | |||||
| $ | $ | $ | $ | |||||
| Revenues from customers | 32,636,947 | 28,559,390 | 65,964,016 | 57,266,142 | ||||
| Cost of sales | 25,685,206 | 23,031,357 | 52,055,110 | 46,078,811 | ||||
| Adjusted gross margin | 6,951,741 | 5,528,033 | 13,908,906 | 11,187,331 | ||||
| Depreciation (production) | 1,645,083 | 1,563,699 | 3,265,264 | 3,080,846 | ||||
| Gross margin | 5,306,658 | 3,964,334 | 10,643,642 | 8,106,485 | ||||
NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery Cells.
| Q2-2025 | Q2-2024 | Variation | YTD 2025 | YTD 2024 | Variation | |||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||
| From Advanced Materials, Plastics and Composite Products | ||||||||||||||||
| Revenues | 33,109,366 | 29,058,796 | 4,050,570 | 14% | 66,744,959 | 57,972,897 | 8,772,062 | 15% | ||||||||
| Non-IFRS Measure * | ||||||||||||||||
| Adjusted EBITDA | 1,319,926 | 416,000 | 903,926 | 217% | 2,832,030 | 586,654 | 2,245,376 | 383% | ||||||||
| From Battery Cells and Materials | ||||||||||||||||
| Revenues | 11,520 | 4,228 | 7,292 | 172% | 41,341 | 26,158 | 15,183 | 58% | ||||||||
| Non-IFRS Measure* | ||||||||||||||||
| Adjusted EBITDA | (217,876) | (508,806) | 290,930 | 57% | (605,681) | (1,127,792) | 522,111 | 46% | ||||||||
Revenues
| Q2-2025 | Q2-2024 | Variation | Q1-2025 | Variation | ||||||||||
| $ | $ | $ | % | $ | $ | % | ||||||||
| Revenues from customers | 32,636,947 | 28,559,390 | 4,077,557 | 14% | 33,327,069 | (690,122) | (2%) | |||||||
| Other income | 483,939 | 503,634 | (19,695) | (4%) | 338,345 | 145,594 | 43% | |||||||
| Total revenues | 33,120,886 | 29,063,024 | 4,057,862 | 14% | 33,665,414 | (544,528) | (2%) | |||||||
Revenues from customers increased from $28,559,390 in Q2-2024 to $32,636,947 in Q2-2025. This increase is mainly due to higher tooling revenues and positive FX impact.
Other income decreased from $503,634 in Q2-2024 to $483,939 in Q2-2025. The variation is due to grants received for R&D programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA increased from $416,000 in Q2-2024 to $1,319,926 in Q2-2025. The variation is explained as follows:
- Adjusted Gross margin on revenues from customers increased by $1,423,708 compared to Q2-2024 due to higher sales as described above, favourable product mix, improved productivity and cost control;
- Partially offset by higher Selling, General & Administration and Research & Development expenses of $567,795 mainly due to timing of professional fees.
The adjusted EBITDA loss improved from a loss of $508,806 in Q2-2024 to a loss of $217,816 in Q2-2025. The variation is explained by the operational expenses decrease (Selling, General & Administration and Research & Development) of $283,638.
B. Results of operations variance analysis - six-month periods
Revenues
| YTD 2025 | YTD 2024 | Variation | ||||||
| $ | $ | $ | % | |||||
| Revenues from customers | 65,964,016 | 57,266,142 | 8,697,874 | 15% | ||||
| Other income | 822,284 | 732,913 | 89,371 | 12% | ||||
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