Mr. Eric Eyerman reports

CALIFORNIA NANOTECHNOLOGIES ANNOUNCES Q3 2026 RESULTS

California Nanotechnologies Corp. had revenues of $392,481 (U.S.) for the quarter ended Nov. 30, 2025. This represents a decrease of 78 per cent compared with the prior year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $747,021 (U.S.) for the fiscal quarter ended Nov. 30, 2025, compared with positive adjusted EBITDA of $826,454 (U.S.) in the prior year.

Net loss for the fiscal quarter was $1,094,650 (U.S.), compared with net income of $113,140 (U.S.) in the prior fiscal year. The net loss was mainly attributed to manufacturing services revenue being pushed to the subsequent quarter and absence of orders from the company's green steel client. Consequently, gross margin was impacted by the reduced revenues over the company's fixed manufacturing cost base.

Diluted loss per share for the fiscal quarter was four cents, compared with diluted earnings per share of nil for the same period last year. The financial statements are available on SEDAR+ and on the company's website.

"This quarter, we saw lower revenues than expected due to customer delays as we execute our growth strategy to secure larger commercial contracts," said chief executive officer Eric Eyerman. "We expect the subsequent quarter (Q4 FY 2026) to show significantly higher revenues and, more importantly, provide us with added visibility on commercial manufacturing contracts in calendar year 2026. For example, our U.S. military brakes customer recently received necessary government funding approvals, and we are making important progress in the fast-growing nuclear energy industry."

The decrease in revenues for Q3 FY 2026 was primarily driven by manufacturing service revenues being pushed to the subsequent quarter, and the complete reduction in revenues from the company's green steel customer and equipment deliveries. Revenues from both the green steel customer and equipment deliveries were nil in Q3 FY 2026 and $1,228,060 (U.S.), or 68 per cent of revenues in Q3 FY 2025. Revenues are expected to exceed $800,000 (U.S.) in Q4 FY 2026 as the company executes on the delayed Q3 revenues and other customer programs.

California Nanotechnologies continues to be focused on building a diversified client base through a combination of R&D (research and development) and commercial production revenues. The company aims to achieve this by becoming a trusted domestic supplier for high-value, consumable parts requiring its advanced materials technologies and expertise.

In the fiscal quarter, California Nanotechnologies signed a letter of intent to provide commercial spark plasma sintering (SPS) production services for high-performance military brake discs. The customer's funding was recently approved under the Department of Defense Appropriations Act, and the company expects to receive an initial $1-million (U.S.) purchase order this calendar year.

Also in the quarter, California Nanotechnologies announced its first purchase order for nuclear control rods from a leading, U.S.-based small modular nuclear reactor (SMR) developer. The company believes the nuclear SMR and fusion industries are key growth areas because of increasing energy demand and the need for a domestic supply chain to serve potential commercial reactor deployments. California Nanotechnologies is in discussions with other nuclear companies to provide similar control rods and radiation shielding.

Lastly, the company strengthened its position in the U.S. SPS market by deepening its relationship with Germany-based Dr. Fritsch. While equipment sales are not a focus, they allow California Nanotechnologies to be involved across the supply chain while generating potential R&D manufacturing and aftermarket parts and service revenues.

California Nanotechnologies believes it is well positioned to potentially recover from the green steel customer revenue decline, reduce customer concentration and build a more resilient revenue base. With no interest-bearing debt (except for lease liabilities) and over $2-million (U.S.) in equipment to support manufacturing scale-up, the company has the assets and personnel to support its targeted growth initiatives.

About California Nanotechnologies Corp.

At California Nanotechnologies, the company envisions a world in which its advanced technologies are used to help make the most innovative products on this planet and beyond. With California Nanotechnologies' unique expertise in processing metallurgic powders into parts, global leaders trust the company to help push the boundaries of applied material science. Headquartered in Greater Los Angeles, Calif., California Nanotechnologies hosts advanced processing and testing machinery and capabilities across two manufacturing facilities for materials research and production needs. California Nanotechnologies' customers range from Fortune 500 companies to start-ups with programs spanning aerospace, renewable energy, defence and semiconductors.

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