Nano One Reports Q1 2025 Results, Summarizes Activities and Reminds Shareholders of Upcoming AGM

Q1 2025 Results and Subsequent Events

• Total net assets of $25.5 million as at Q1 2025, including $26.5 million in non-dilutive funding received in Q1 2025 between sale and leaseback and government programs.

• Sale and leaseback transaction closes and generates net proceeds of $13.7 million, plus a $2.0 million deferred payment via vendor loan receivable.

• $0.3 million received subsequent to Q1 2025 from NGen.

• AGM on May 23, 2025 followed by corporate presentation and Q&A. Reminder to vote by May 21, 2025.

VANCOUVER, BC / ACCESS Newswire / May 14, 2025 / Nano One Materials Corp. ("Nano One" or the "Company"), a process technology company specializing in lithium-ion battery cathode active materials has filed its condensed interim consolidated financial statements (the "financial statements"), and management's discussion & analysis ("MD&A") as at and for the three months ended March 31, 2025 ("Q1 2025") and is pleased to provide a summary and an update on subsequent events.

Q1 2025 - Financial Position and Subsequent Funding

As at March 31, 2025, the Company's total net assets and working capital were $25.5 million and $24.8 million, respectively. Cash and cash equivalents were $27.8 million.

In Q1 2025, total proceeds of $26.5 million were received between the sale and leaseback transaction (net proceeds of $13.7 million), and drawdowns on government programs of $12.8 million. Approximately $29.0 million remains in reimbursements to claim over the coming two years from contracted government programs.

The Company reported net income of $2.7 million for Q1 2025 which was driven by the recognition of certain government grants within other income as well as the gain recognized on the sale and leaseback transaction.

Total assets includes the initial recognition of a $2.0 million loan receivable during Q1 2025 relating to the sale and leaseback transaction. The loan receivable is repayable in two installments to the Company in three and six years from the date of issuance.

Total liabilities includes the initial recognition of a $13.8 million lease liability during Q1 2025 associated with the sale and leaseback of the Candiac Facility. Additionally, a Government loan was initially recognized amounting to $2.8 million which represents a portion of the $7.5 million in funding received from the Government of Québec through its mandated organisation Investissement Québec (IQ), with the remainder being recognized in other income as a government grant representing the below-market rate interest benefit associated with the loan. The loan is repayable by Nano, less any portion forgiven by IQ, after an initial five year moratorium and subsequently in monthly installments over the course of the next five years.