Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES FY2023 RESULTS

California Nanotechnologies Corp. had record revenues of $1,381,934 (U.S.) for the fiscal year ending Feb. 28, 2023. This represents an increase of 28 per cent from the previous fiscal year. Net income for the fiscal year was $79,764 (U.S.) compared with $200,600 (U.S.) in the same period last year, while EBITDA (earnings before interest, taxes, depreciation and amortization) was $337,912 (U.S.) compared with $404,911 (U.S.) for the same period last year. The decrease in net income and EBITDA is primarily explained by one-time COVID-19 benefits valued at $145,000 (U.S.) received in FY 2022. Despite starting key growth investments in the second half of FY 2023 to support future revenues, which has resulted in a higher cost structure, EBITDA margin continued to be strong at 24 per cent. The financial statements are available on SEDAR and on the company's website.

"FY 2023 not only built upon the success of FY 2022, during which we achieved profitability for the first time in the company's history, but also witnessed further revenue growth and a substantial reduction in our debt," stated chief executive officer Eric Eyerman. "Throughout the fiscal year, we remained dedicated to sustaining profitability while actively pursuing strategic investments to drive our long-term expansion."

The increase in revenue for FY 2023 was mainly attributed to the continuation and signing of new research and development programs for California Nanotechnologies' two core manufacturing service offerings in spark plasma sintering (SPS) and cryomilling. While FY 2022 saw good revenue growth with a concentration from a thermoelectrics customer, FY 2023 experienced more diversified revenue across several customers, including Ambri, a start-up battery technology company. Additionally, during the year, the company signed SPS equipment sales contracts worth approximately $430,000 (U.S.) with three U.S. universities, marking an evolution in California Nanotechnologies' business model to assist R&D customers with in-housing its core technologies. The first of these three units was shipped in Q1 2024, with the remaining units expected to be delivered later in FY 2024.

California Nanotechnologies believes that there will be increasing demand for its manufacturing services in the coming years as customers continue to recognize the benefits of its technologies at a commercial scale. As a result, the company is preparing for this opportunity by expanding contract scopes, hiring key personnel and carefully planning out equipment purchases. Subsequent to FY 2023, California Nanotechnologies acquired a used cryomilling machine that became available at a very attractive price, which will allow the company to triple its existing capacity. California Nanotechnologies is evaluating the best location for installing the new cryomill and is also exploring options to expand its spark plasma sintering capacity.

Furthermore, the company made payments of $245,000 (U.S.) toward its bank debt and borrowings from Omni-Lite Industries Canada Inc., demonstrating a commitment to reducing its overall debt. At the start of the fiscal year, the company had a total debt of $1,575,257 (U.S.), which was successfully reduced to $1,330,156 (U.S.). California Nanotechnologies believes that managing appropriate debt levels is in the best interests of shareholders.

About California Nanotechnologies Corp.

California Nanotechnologies envisions a world in which its advanced technologies are used to help make the most innovative products on this planet and beyond. The company is trusted by global leaders to help push the boundaries of applied material science by utilizing its unique technical expertise and vision. Headquartered in Los Angeles, Calif., California Nanotechnologies hosts a complement of advanced processing and testing capabilities for materials research and production needs. Customers range from Fortune 500 companies to start-ups with programs spanning aerospace, renewable energy, defence and semiconductors.

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