{"success":true,"data":{"pressRelease":{"id":"75925","rtpr_id":"nNFC5MGPD3","ticker":"CNO","exchange":"","all_tickers":["CNO"],"title":"California Nanotechnologies Announces FY2026 Results","author":"Newsfile Corp","published_at":"2026-06-29T21:00:18.063Z","article_body":"* Annual revenue of US$2,789K and a return to positive Adjusted EBITDA\n* Manufacturing revenues, excluding green steel client, increased 85%\nyear-over-year\n* Well positioned to capitalize on high-growth Small Modular Reactor (SMR)\nnuclear energy industry \nLos Angeles, California--(Newsfile Corp. - June 29, 2026) - California\nNanotechnologies Corp. (TSXV: CNO) (OTCID: CANOF) (\"Cal Nano\" or the\n\"Company\") is pleased to announce revenues of US$2,788,642 for the fiscal year\nending February 28, 2026. While this represents a decrease of 55% compared to\nthe prior year, the Company has significantly reduced its overall customer\nconcentration.\n\nManufacturing service revenues, excluding the green steel client, increased\n85% and showcased the Company's broadening and increasing customer base now\nspanning several industries. Adjusted EBITDA(1) decreased to negative\nUS$651,614 for the fiscal year ending February 28, 2026, compared to positive\nUS$2,389,890 in the prior year. Adjusted EBITDA in Q4/FY2026 was US$50,329,\nreflecting the first positive EBITDA quarter of the 2026 fiscal year and a\nreturn to higher revenue levels.\n\nNet loss for the fiscal year was US$1,857,327, compared to net income of\nUS$158,333 in the prior fiscal year. The lower net income was mainly due to\nlower revenue generation and consequently lower gross profit, offset in part\nby unrealized warrant losses(2) in the prior fiscal year.\n\nDiluted loss per share for the fiscal year was ($0.04) compared to diluted\nearnings per share of $0.00 for the same period last year. The financial\nstatements are available on SEDAR+ at www.sedarplus.ca and on the Company's\nwebsite (https://api.newsfilecorp.com/redirect/WA5yEhnWNb).\n\n\"In FY2026 we addressed our customer concentration and positioned ourselves\nfavorably for the high-growth nuclear energy industry,\" stated CEO Eric\nEyerman. \"We made significant progress as no one customer represented more\nthan 10% of our revenues and our manufacturing service revenues, excluding our\ngreen steel client, nearly doubled. This puts us on a solid foundation for\ngrowth in fiscal 2027 as we scale up our manufacturing activity for next\ngeneration, consumable parts used in small modular reactors (SMRs).\"\n\nFinancial Highlights\n\n   Amounts in USD                     Three months  ended  February 28, 2026     Three months ended February 28, 2025     Period-over-period change    Twelve months  ended  February 28, 2026     Twelve months ended February 28, 2025     Period-over-period change    \n   Revenues                           899,692                                    1,146,522                                (22%)                        2,788,642                                   6,224,738                                 (55%)                        \n   Cost of Goods Sold                 352,559                                    351,602                                  0%                           1,287,343                                   1,632,854                                 (22%)                        \n   Gross Profit                       547,133                                    795,920                                  (31%)                        1,501,299                                   4,591,884                                 (67%)                        \n   Gross Margin (1)                   61%                                        69%                                      (800bps)                     54%                                         74%                                       (2000bps)                    \n   Net Income/(Loss)                  (22,367                                 )  (312,484                              )  93%                          (1,857,327                               )  (158,333                               )  (1,073%)                     \n   Income/(loss) Per Share - Diluted  ($0.00                                  )  $0.00                                    -                            ($0.04                                   )  ($0.00                                 )  -                            \n   EBITDA (1)                         186,158                                    50,309                                   270%                         (1,029,013                               )  780,967                                   (232%)                       \n   Adjusted EBITDA (1)                50,329                                     168,626                                  (70%)                        (651,614                                 )  2,558,516                                 (125%)                       \n\n \n\nThe decrease in revenue for the fiscal year of $3,436,096 was due to a\nUS$2,546,474 reduction in manufacturing services relating to the green steel\nclient, and a decrease in equipment deliveries of Spark Plasma Sintering (SPS)\nsystems of US$889,622. Excluding the green steel customer, manufacturing\nrevenues were US$2,626,894, an increase of 85% over the prior year.\n\nGross margin decreased year-over-year to 54% mainly due to lower revenue\ngeneration over its fixed cost base. The Company anticipates, that if revenues\nincrease, gross margin should improve because its fixed costs and overhead\nwould be spread over a larger revenue base. There will be fluctuations in\ngross margin depending on the manufacturing service mix between R&D and\ncommercial customers, utilization, and volume of equipment deliveries.\n\nAdjusted EBITDA for the fiscal year decreased due to the beforementioned lower\nrevenue and gross profit. Importantly, Q4/FY2026 saw a return to positive\nadjusted EBITDA after recording negative Adjusted EBITDA in the first three\nquarters of the 2026 fiscal year. This was reflective of a return to higher\nrevenue levels along with certain cost reductions such as the consolidation of\nits Cerritos facility into Santa Ana, which will save approximately US$120,000\na year.\n\nManagement Commentary & Outlook\nFY2026 was a transitional year that required the Company to display resiliency\nand rebuild its revenue base after seeing the complete elimination of activity\nfrom its green steel client, who accounted for 63% of revenues in FY2025.\nFY2027 is expected to build on these efforts with an emphasis on securing\nlarger-scale contracts, non-dilutive funding, and long-term partnerships to\nscale-up the Company's operations.\n\nOver the last twelve months, Cal Nano has positioned itself as a premier and\ndomestic manufacturer of critical reactor components such as control rods and\nheat shielding. On November 5, 2025, the Company received its first purchase\norders for reactor components and has since received follow-on orders from the\nsame customer. This customer represents one of many dedicated to building\nnext-generation small modular reactors that are designed for utility,\ndatacenter, and military applications.\n\nCal Nano believes that it is well positioned to fill the void that exists in a\nU.S.-based manufacturing of these critical components with its flagship Santa\nAna facility and portfolio of specialized equipment. The Company has invested\nin its market presence through continued conference attendance, hosting the\ncountry's first SPS workshop, and joining specialty industry organizations\nlike the United States Advanced Ceramics Association (USACA). In addition,\nthere are a number of government initiatives being undertaken by the current\nU.S. administration to expand domestic nuclear supply chains. Cal Nano aims to\nsolidify itself as a key component supplier in this evolving market.\n\nSubsequent to the year end, Cal Nano closed a non-brokered private placement\nraising gross proceeds of CA$935,900. The additional capital strengthens the\nCompany's balance sheet and provides working capital to execute on growth\nopportunities in the fiscal year ahead.\n\nLastly, Mr. Christopher Melnyk has been promoted to Chief Technology Officer,\nfollowing their tenure as Director of Business Development, where they played\na key role in driving strategic growth and expanding the company's market\npresence. Mr. Melnyk continues to serve on Cal Nano's Board of Directors.\n\nAbout California Nanotechnologies Corp.\nAt Cal Nano, we envision a world in which our advanced technologies are used\nto help make the most innovative products on this planet and beyond. With our\nunique expertise in processing metallurgic powders into parts, global leaders\ntrust us to help push the boundaries of applied material science.\nHeadquartered in Greater Los Angeles, California, Cal Nano hosts advanced\nprocessing and testing machinery and capabilities across two manufacturing\nfacilities for materials research and production needs. Our customers range\nfrom Fortune 500 companies to startups with programs spanning aerospace,\nrenewable energy, defense, and semiconductors.\n\nFor further information, please contact:\n\nCalifornia Nanotechnologies Corp.\nEric Eyerman, CEO\nT: +1 (562) 991-5211\ninfo@calnanocorp.com\n\nPanolia Investor Relations Inc.\nBrandon Chow, Principal & Founder\nT: +1 (647) 598-8815\nbrandon@panoliair.com\n\nNon-IFRS Measures and Reconciliation of Non-IFRS Measures\n\nThis press release makes reference to certain non-IFRS measures. These\nnon-IFRS measures are not recognized measures under IFRS, do not have a\nstandardized meaning prescribed by IFRS and are therefore unlikely to be\ncomparable to similar measures presented by other companies. Rather, these\nmeasures are provided as additional information to complement those IFRS\nmeasures by providing a further understanding of results of operations of Cal\nNano from management's perspective. Accordingly, they should not be considered\nin isolation nor as a substitute for analysis of the financial information of\nCal Nano reported under IFRS. The Company uses non-IFRS measures such as\nEBITDA to provide investors with a supplemental measure of operating\nperformance and thus highlight trends in its core business that may not\notherwise be apparent when relying solely on IFRS financial measures.\nManagement also believes that securities analysts, investors and other\ninterested parties frequently use non-IFRS measures in the evaluation of\nissuers. Management also uses non-IFRS measures in order to facilitate\noperating performance comparisons from period to period, prepare annual\noperating budgets and assess the Company's ability to meet its capital\nexpenditure and working capital requirements.\n\n\"EBITDA\" means the earnings before interest, income taxes, depreciation, and\namortization, where interest is defined as net finance costs as per the\nconsolidated statement of comprehensive income.\n\n\"EBITDA margin\" means the earnings before interest, income taxes,\ndepreciation, and amortization, where interest is defined as net finance costs\nas per the consolidated statement of comprehensive income as a percentage of\ntotal revenues.\n\n\"Adjusted EBITDA\" refers to earnings before interest, income taxes,\ndepreciation, amortization, share-based compensation, and the unrealized gain\non share purchase warrants, with interest defined as net finance costs as per\nthe consolidated statement of comprehensive income.\n\n\"Adjusted EBITDA margin\" refers to earnings before interest, income taxes,\ndepreciation, amortization, share-based compensation, and the unrealized gain\nor loss on share purchase warrants, with interest defined as net finance costs\nas per the consolidated statement of comprehensive income as a percentage of\ntotal revenues.\n\nReconciliations and Calculations\n\nThe tables set forth below provides a quantitative reconciliation of Gross\nMargin and EBITDA, which are Non-IFRS financial measures, to the most\ncomparable IFRS measure disclosed in the Company's financial statements. The\nreconciliation of Non-IFRS measures to the most directly comparable measure\ncalculated in accordance with IFRS is provided below where appropriate.\n\nGross Margin Reconciliation\n\n   Amounts in USD        Three months  ended  February 28, 2026      Three months  ended  February 29, 2025      Twelve months  ended  February 28, 2026      Twelve months  ended  February 28, 2025    \n   Revenues              899,692                                     1,146,522                                   2,788,642                                    6,224,738                                  \n   Cost of Goods Sold    352,559                                     351,602                                     1,287,343                                    1,632,854                                  \n   Gross Profit          547,133                                     795,920                                     1,501,299                                    4,591,884                                  \n   Gross Margin          61%                                         69%                                         54%                                          74%                                        \n\n \n\nEBITDA and Adjusted EBITDA Reconciliation\n\n   Amounts in USD                            Three months  ended  February 28, 2026       Three months  ended  February 29, 2025       Twelve months  ended  February 28, 2026       Twelve months  ended  February 28, 2025     \n   Net Income/(Loss)                         (23,367                                 )    (312,484                                )    (1,857,327                               )    (158,333                                 )  \n   Depreciation & Amortization               175,255                                      190,409                                      699,331                                       578,806                                     \n   Interest Expense                          33,270                                       4,292                                        124,895                                       191,597                                     \n   Income Tax Expense                        -                                            168,091                                      4,088                                         168,896                                     \n   EBITDA                                    186,158                                      50,308                                       (1,029,013                               )    780,966                                     \n   EBITDA Margin                             21%                                          4%                                           (37%                                     )    13%                                         \n   Share-based Compensation                  266,141                                      368,053                                      640,022                                       524,627                                     \n   Loss/(Gain) on Share Purchase Warrants    (401,970                                )    (249,736                                )    (262,623                                 )    1,252,922                                   \n   Adjusted EBITDA                           50,329                                       168,625                                      (651,614                                 )    2,558,515                                   \n   Adjusted EBITDA Margin                    6%                                           15%                                          (23%                                     )    41%                                         \n\n \n\nDerivative Liability Recognition for Warrant Issuance under IFRS\n\nOn October 30, 2023, the Company successfully closed an issuance of units\ncomprising common shares and warrants, encompassing an aggregate of 5,000,000\nwarrants, each with an exercise price of CA$0.25. As a result of the Company\nreporting its financial results denominated in US dollars, and in adherence to\nthe International Financial Reporting Standards (IFRS), the Company is\nrequired to report a derivative liability attributable to the aforementioned\nwarrants. Consequently, the Company will recognize a non-cash charge or income\ninclusion on a quarterly basis, predicated upon the fluctuation in the market\nprice of the Company's shares, until such time as the warrants either are\nexercised or expire.\n\nReader Advisory\n\nExcept for statements of historical fact, this news release contains certain\n\"forward-looking information\" within the meaning of applicable securities law.\nForward-looking information is frequently characterized by words such as\n\"plan\", \"expect\", \"project\", \"intend\", \"believe\", \"anticipate\", \"estimate\" and\nother similar words, or statements that certain events or conditions \"may\" or\n\"will\" occur. In particular, forward-looking information in this press release\nincludes, but is not limited to: future financial results, including\nanticipated profitability and/or lack thereof; statements about future plans,\nincluding statements about the planned expansion of the Company's\nmanufacturing capacity, and new sites for the Company's production and\nheadquarters; demand for the Company's services by current and future\ncustomers, including existing and future orders for the Company's SPS\nequipment and the anticipated revenue therefrom; and the expected future\nperformance of the Company. Although we believe that the expectations\nreflected in the forward-looking information are reasonable, there can be no\nassurance that such expectations will prove to be correct. We cannot guarantee\nfuture results, performance or achievements. Consequently, there is no\nrepresentation that the actual results achieved will be the same, in whole or\nin part, as those set out in the forward-looking information. Forward-looking\ninformation is based on the opinions and estimates of management at the date\nthe statements are made, and are subject to a variety of risks and\nuncertainties and other factors that could cause actual events or results to\ndiffer materially from those anticipated in the forward-looking information.\nSome of the risks and other factors that could cause the results to differ\nmaterially from those expressed in the forward-looking information include,\nbut are not limited to: general economic conditions in Canada, the United\nStates and globally; a significant change in demand for the Company's services\nand products; industry conditions, governmental regulation, including\nenvironmental regulation; the effects of product development and need for\ncontinued technological change; the effect of government regulation and\ncompliance on the Corporation and the industry; research and development\nrisks; reliance on key personnel; operations in foreign jurisdictions;\nprotection of intellectual property rights; contractual risk; third-party\nrisk, risk of technological or scientific obsolescence; dependence of\ntechnical infrastructure; unanticipated operating events or performance;\nfailure to obtain industry partner and other third party consents and\napprovals, if and when required; the availability of capital on acceptable\nterms; the need to obtain required approvals from regulatory authorities;\nstock market volatility; competition for, among other things, capital, skilled\npersonnel and supplies; changes in tax laws; and the other risk factors\ndisclosed under our profile on SEDAR+ at www.sedarplus.ca. Readers are\ncautioned that this list of risk factors should not be construed as\nexhaustive.\n\nThe forward-looking information contained in this news release is expressly\nqualified by this cautionary statement. We undertake no duty to update any of\nthe forward-looking information to conform such information to actual results\nor to changes in our expectations except as otherwise required by applicable\nsecurities legislation. Readers are cautioned not to place undue reliance on\nforward-looking information.\n\nNeither TSX Venture Exchange nor its Regulation Services Provider (as that\nterm is defined in policies of the TSX Venture Exchange) accepts\nresponsibility for the adequacy or accuracy of this release.\n\n(1) Non-IFRS Measure\n(2) See disclosure under \"Derivative Liability Recognition for Warrant\nIssuance under IFRS\"\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/303311","article_body_html":"","raw_payload":{"data":{"id":"nNFC5MGPD3","title":"California Nanotechnologies Announces FY2026 Results","author":"Newsfile Corp","ticker":"CNO","created":"2026-06-29T21:00:18.063Z","tickers":["CNO"],"exchange":"","article_body":"* Annual revenue of US$2,789K and a return to positive Adjusted EBITDA\n* Manufacturing revenues, excluding green steel client, increased 85%\nyear-over-year\n* Well positioned to capitalize on high-growth Small Modular Reactor (SMR)\nnuclear energy industry \nLos Angeles, California--(Newsfile Corp. - June 29, 2026) - California\nNanotechnologies Corp. (TSXV: CNO) (OTCID: CANOF) (\"Cal Nano\" or the\n\"Company\") is pleased to announce revenues of US$2,788,642 for the fiscal year\nending February 28, 2026. While this represents a decrease of 55% compared to\nthe prior year, the Company has significantly reduced its overall customer\nconcentration.\n\nManufacturing service revenues, excluding the green steel client, increased\n85% and showcased the Company's broadening and increasing customer base now\nspanning several industries. Adjusted EBITDA(1) decreased to negative\nUS$651,614 for the fiscal year ending February 28, 2026, compared to positive\nUS$2,389,890 in the prior year. Adjusted EBITDA in Q4/FY2026 was US$50,329,\nreflecting the first positive EBITDA quarter of the 2026 fiscal year and a\nreturn to higher revenue levels.\n\nNet loss for the fiscal year was US$1,857,327, compared to net income of\nUS$158,333 in the prior fiscal year. The lower net income was mainly due to\nlower revenue generation and consequently lower gross profit, offset in part\nby unrealized warrant losses(2) in the prior fiscal year.\n\nDiluted loss per share for the fiscal year was ($0.04) compared to diluted\nearnings per share of $0.00 for the same period last year. The financial\nstatements are available on SEDAR+ at www.sedarplus.ca and on the Company's\nwebsite (https://api.newsfilecorp.com/redirect/WA5yEhnWNb).\n\n\"In FY2026 we addressed our customer concentration and positioned ourselves\nfavorably for the high-growth nuclear energy industry,\" stated CEO Eric\nEyerman. \"We made significant progress as no one customer represented more\nthan 10% of our revenues and our manufacturing service revenues, excluding our\ngreen steel client, nearly doubled. This puts us on a solid foundation for\ngrowth in fiscal 2027 as we scale up our manufacturing activity for next\ngeneration, consumable parts used in small modular reactors (SMRs).\"\n\nFinancial Highlights\n\n   Amounts in USD                     Three months  ended  February 28, 2026     Three months ended February 28, 2025     Period-over-period change    Twelve months  ended  February 28, 2026     Twelve months ended February 28, 2025     Period-over-period change    \n   Revenues                           899,692                                    1,146,522                                (22%)                        2,788,642                                   6,224,738                                 (55%)                        \n   Cost of Goods Sold                 352,559                                    351,602                                  0%                           1,287,343                                   1,632,854                                 (22%)                        \n   Gross Profit                       547,133                                    795,920                                  (31%)                        1,501,299                                   4,591,884                                 (67%)                        \n   Gross Margin (1)                   61%                                        69%                                      (800bps)                     54%                                         74%                                       (2000bps)                    \n   Net Income/(Loss)                  (22,367                                 )  (312,484                              )  93%                          (1,857,327                               )  (158,333                               )  (1,073%)                     \n   Income/(loss) Per Share - Diluted  ($0.00                                  )  $0.00                                    -                            ($0.04                                   )  ($0.00                                 )  -                            \n   EBITDA (1)                         186,158                                    50,309                                   270%                         (1,029,013                               )  780,967                                   (232%)                       \n   Adjusted EBITDA (1)                50,329                                     168,626                                  (70%)                        (651,614                                 )  2,558,516                                 (125%)                       \n\n \n\nThe decrease in revenue for the fiscal year of $3,436,096 was due to a\nUS$2,546,474 reduction in manufacturing services relating to the green steel\nclient, and a decrease in equipment deliveries of Spark Plasma Sintering (SPS)\nsystems of US$889,622. Excluding the green steel customer, manufacturing\nrevenues were US$2,626,894, an increase of 85% over the prior year.\n\nGross margin decreased year-over-year to 54% mainly due to lower revenue\ngeneration over its fixed cost base. The Company anticipates, that if revenues\nincrease, gross margin should improve because its fixed costs and overhead\nwould be spread over a larger revenue base. There will be fluctuations in\ngross margin depending on the manufacturing service mix between R&D and\ncommercial customers, utilization, and volume of equipment deliveries.\n\nAdjusted EBITDA for the fiscal year decreased due to the beforementioned lower\nrevenue and gross profit. Importantly, Q4/FY2026 saw a return to positive\nadjusted EBITDA after recording negative Adjusted EBITDA in the first three\nquarters of the 2026 fiscal year. This was reflective of a return to higher\nrevenue levels along with certain cost reductions such as the consolidation of\nits Cerritos facility into Santa Ana, which will save approximately US$120,000\na year.\n\nManagement Commentary & Outlook\nFY2026 was a transitional year that required the Company to display resiliency\nand rebuild its revenue base after seeing the complete elimination of activity\nfrom its green steel client, who accounted for 63% of revenues in FY2025.\nFY2027 is expected to build on these efforts with an emphasis on securing\nlarger-scale contracts, non-dilutive funding, and long-term partnerships to\nscale-up the Company's operations.\n\nOver the last twelve months, Cal Nano has positioned itself as a premier and\ndomestic manufacturer of critical reactor components such as control rods and\nheat shielding. On November 5, 2025, the Company received its first purchase\norders for reactor components and has since received follow-on orders from the\nsame customer. This customer represents one of many dedicated to building\nnext-generation small modular reactors that are designed for utility,\ndatacenter, and military applications.\n\nCal Nano believes that it is well positioned to fill the void that exists in a\nU.S.-based manufacturing of these critical components with its flagship Santa\nAna facility and portfolio of specialized equipment. The Company has invested\nin its market presence through continued conference attendance, hosting the\ncountry's first SPS workshop, and joining specialty industry organizations\nlike the United States Advanced Ceramics Association (USACA). In addition,\nthere are a number of government initiatives being undertaken by the current\nU.S. administration to expand domestic nuclear supply chains. Cal Nano aims to\nsolidify itself as a key component supplier in this evolving market.\n\nSubsequent to the year end, Cal Nano closed a non-brokered private placement\nraising gross proceeds of CA$935,900. The additional capital strengthens the\nCompany's balance sheet and provides working capital to execute on growth\nopportunities in the fiscal year ahead.\n\nLastly, Mr. Christopher Melnyk has been promoted to Chief Technology Officer,\nfollowing their tenure as Director of Business Development, where they played\na key role in driving strategic growth and expanding the company's market\npresence. Mr. Melnyk continues to serve on Cal Nano's Board of Directors.\n\nAbout California Nanotechnologies Corp.\nAt Cal Nano, we envision a world in which our advanced technologies are used\nto help make the most innovative products on this planet and beyond. With our\nunique expertise in processing metallurgic powders into parts, global leaders\ntrust us to help push the boundaries of applied material science.\nHeadquartered in Greater Los Angeles, California, Cal Nano hosts advanced\nprocessing and testing machinery and capabilities across two manufacturing\nfacilities for materials research and production needs. Our customers range\nfrom Fortune 500 companies to startups with programs spanning aerospace,\nrenewable energy, defense, and semiconductors.\n\nFor further information, please contact:\n\nCalifornia Nanotechnologies Corp.\nEric Eyerman, CEO\nT: +1 (562) 991-5211\ninfo@calnanocorp.com\n\nPanolia Investor Relations Inc.\nBrandon Chow, Principal & Founder\nT: +1 (647) 598-8815\nbrandon@panoliair.com\n\nNon-IFRS Measures and Reconciliation of Non-IFRS Measures\n\nThis press release makes reference to certain non-IFRS measures. These\nnon-IFRS measures are not recognized measures under IFRS, do not have a\nstandardized meaning prescribed by IFRS and are therefore unlikely to be\ncomparable to similar measures presented by other companies. Rather, these\nmeasures are provided as additional information to complement those IFRS\nmeasures by providing a further understanding of results of operations of Cal\nNano from management's perspective. Accordingly, they should not be considered\nin isolation nor as a substitute for analysis of the financial information of\nCal Nano reported under IFRS. The Company uses non-IFRS measures such as\nEBITDA to provide investors with a supplemental measure of operating\nperformance and thus highlight trends in its core business that may not\notherwise be apparent when relying solely on IFRS financial measures.\nManagement also believes that securities analysts, investors and other\ninterested parties frequently use non-IFRS measures in the evaluation of\nissuers. Management also uses non-IFRS measures in order to facilitate\noperating performance comparisons from period to period, prepare annual\noperating budgets and assess the Company's ability to meet its capital\nexpenditure and working capital requirements.\n\n\"EBITDA\" means the earnings before interest, income taxes, depreciation, and\namortization, where interest is defined as net finance costs as per the\nconsolidated statement of comprehensive income.\n\n\"EBITDA margin\" means the earnings before interest, income taxes,\ndepreciation, and amortization, where interest is defined as net finance costs\nas per the consolidated statement of comprehensive income as a percentage of\ntotal revenues.\n\n\"Adjusted EBITDA\" refers to earnings before interest, income taxes,\ndepreciation, amortization, share-based compensation, and the unrealized gain\non share purchase warrants, with interest defined as net finance costs as per\nthe consolidated statement of comprehensive income.\n\n\"Adjusted EBITDA margin\" refers to earnings before interest, income taxes,\ndepreciation, amortization, share-based compensation, and the unrealized gain\nor loss on share purchase warrants, with interest defined as net finance costs\nas per the consolidated statement of comprehensive income as a percentage of\ntotal revenues.\n\nReconciliations and Calculations\n\nThe tables set forth below provides a quantitative reconciliation of Gross\nMargin and EBITDA, which are Non-IFRS financial measures, to the most\ncomparable IFRS measure disclosed in the Company's financial statements. The\nreconciliation of Non-IFRS measures to the most directly comparable measure\ncalculated in accordance with IFRS is provided below where appropriate.\n\nGross Margin Reconciliation\n\n   Amounts in USD        Three months  ended  February 28, 2026      Three months  ended  February 29, 2025      Twelve months  ended  February 28, 2026      Twelve months  ended  February 28, 2025    \n   Revenues              899,692                                     1,146,522                                   2,788,642                                    6,224,738                                  \n   Cost of Goods Sold    352,559                                     351,602                                     1,287,343                                    1,632,854                                  \n   Gross Profit          547,133                                     795,920                                     1,501,299                                    4,591,884                                  \n   Gross Margin          61%                                         69%                                         54%                                          74%                                        \n\n \n\nEBITDA and Adjusted EBITDA Reconciliation\n\n   Amounts in USD                            Three months  ended  February 28, 2026       Three months  ended  February 29, 2025       Twelve months  ended  February 28, 2026       Twelve months  ended  February 28, 2025     \n   Net Income/(Loss)                         (23,367                                 )    (312,484                                )    (1,857,327                               )    (158,333                                 )  \n   Depreciation & Amortization               175,255                                      190,409                                      699,331                                       578,806                                     \n   Interest Expense                          33,270                                       4,292                                        124,895                                       191,597                                     \n   Income Tax Expense                        -                                            168,091                                      4,088                                         168,896                                     \n   EBITDA                                    186,158                                      50,308                                       (1,029,013                               )    780,966                                     \n   EBITDA Margin                             21%                                          4%                                           (37%                                     )    13%                                         \n   Share-based Compensation                  266,141                                      368,053                                      640,022                                       524,627                                     \n   Loss/(Gain) on Share Purchase Warrants    (401,970                                )    (249,736                                )    (262,623                                 )    1,252,922                                   \n   Adjusted EBITDA                           50,329                                       168,625                                      (651,614                                 )    2,558,515                                   \n   Adjusted EBITDA Margin                    6%                                           15%                                          (23%                                     )    41%                                         \n\n \n\nDerivative Liability Recognition for Warrant Issuance under IFRS\n\nOn October 30, 2023, the Company successfully closed an issuance of units\ncomprising common shares and warrants, encompassing an aggregate of 5,000,000\nwarrants, each with an exercise price of CA$0.25. As a result of the Company\nreporting its financial results denominated in US dollars, and in adherence to\nthe International Financial Reporting Standards (IFRS), the Company is\nrequired to report a derivative liability attributable to the aforementioned\nwarrants. Consequently, the Company will recognize a non-cash charge or income\ninclusion on a quarterly basis, predicated upon the fluctuation in the market\nprice of the Company's shares, until such time as the warrants either are\nexercised or expire.\n\nReader Advisory\n\nExcept for statements of historical fact, this news release contains certain\n\"forward-looking information\" within the meaning of applicable securities law.\nForward-looking information is frequently characterized by words such as\n\"plan\", \"expect\", \"project\", \"intend\", \"believe\", \"anticipate\", \"estimate\" and\nother similar words, or statements that certain events or conditions \"may\" or\n\"will\" occur. In particular, forward-looking information in this press release\nincludes, but is not limited to: future financial results, including\nanticipated profitability and/or lack thereof; statements about future plans,\nincluding statements about the planned expansion of the Company's\nmanufacturing capacity, and new sites for the Company's production and\nheadquarters; demand for the Company's services by current and future\ncustomers, including existing and future orders for the Company's SPS\nequipment and the anticipated revenue therefrom; and the expected future\nperformance of the Company. Although we believe that the expectations\nreflected in the forward-looking information are reasonable, there can be no\nassurance that such expectations will prove to be correct. We cannot guarantee\nfuture results, performance or achievements. Consequently, there is no\nrepresentation that the actual results achieved will be the same, in whole or\nin part, as those set out in the forward-looking information. Forward-looking\ninformation is based on the opinions and estimates of management at the date\nthe statements are made, and are subject to a variety of risks and\nuncertainties and other factors that could cause actual events or results to\ndiffer materially from those anticipated in the forward-looking information.\nSome of the risks and other factors that could cause the results to differ\nmaterially from those expressed in the forward-looking information include,\nbut are not limited to: general economic conditions in Canada, the United\nStates and globally; a significant change in demand for the Company's services\nand products; industry conditions, governmental regulation, including\nenvironmental regulation; the effects of product development and need for\ncontinued technological change; the effect of government regulation and\ncompliance on the Corporation and the industry; research and development\nrisks; reliance on key personnel; operations in foreign jurisdictions;\nprotection of intellectual property rights; contractual risk; third-party\nrisk, risk of technological or scientific obsolescence; dependence of\ntechnical infrastructure; unanticipated operating events or performance;\nfailure to obtain industry partner and other third party consents and\napprovals, if and when required; the availability of capital on acceptable\nterms; the need to obtain required approvals from regulatory authorities;\nstock market volatility; competition for, among other things, capital, skilled\npersonnel and supplies; changes in tax laws; and the other risk factors\ndisclosed under our profile on SEDAR+ at www.sedarplus.ca. Readers are\ncautioned that this list of risk factors should not be construed as\nexhaustive.\n\nThe forward-looking information contained in this news release is expressly\nqualified by this cautionary statement. We undertake no duty to update any of\nthe forward-looking information to conform such information to actual results\nor to changes in our expectations except as otherwise required by applicable\nsecurities legislation. Readers are cautioned not to place undue reliance on\nforward-looking information.\n\nNeither TSX Venture Exchange nor its Regulation Services Provider (as that\nterm is defined in policies of the TSX Venture Exchange) accepts\nresponsibility for the adequacy or accuracy of this release.\n\n(1) Non-IFRS Measure\n(2) See disclosure under \"Derivative Liability Recognition for Warrant\nIssuance under IFRS\"\n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/303311"},"type":"article","timestamp":"2026-06-29T21:00:18.115318249Z","server_sent_at_ms":1782766818115},"received_at":"2026-06-29T21:00:18.265Z","source_url":"https://www.newsfilecorp.com/release/303311"},"analysis":{"id":"65211","press_release_id":"75925","analysis_json":{"industry":{"label":"Machinery","sector":"Industrials"},"redFlags":["Revenue decreased 55% year-over-year","Net loss of US$1.86M compared to net income in prior year","Adjusted EBITDA negative for the full fiscal year","Diluted loss per share of ($0.04)"],"eventType":"earnings","narrative":"California Nanotechnologies reported fiscal 2026 revenue of US$2.79 million, a 55% decrease from the prior year, primarily due to the loss of a major green steel client.\n\nDespite the revenue decline, manufacturing revenues excluding the lost customer increased 85% year-over-year, and Q4 Adjusted EBITDA returned to positive territory at US$50,329.\n\nThe company is pivoting to the nuclear energy market, securing purchase orders for Small Modular Reactor components, and closed a CA$935,900 private placement to fund growth while promoting Christopher Melnyk to CTO.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Mixed earnings show painful customer diversification but successful pivot to nuclear SMR market with Q4 profitability."},"keyFigures":{"revenue":2788642,"revenueYoy":"-55%","customDimensions":{"net_loss":1857327,"gross_margin":"54%","q4_adjusted_ebitda":50329,"manufacturing_rev_growth_ex_green_steel":"85%"}},"quotedText":"In FY2026 we addressed our customer concentration and positioned ourselves favorably for the high-growth nuclear energy industry,\" stated CEO Eric Eyerman.","namedEntities":{"people":[{"name":"Eric Eyerman","role":"CEO"},{"name":"Christopher Melnyk","role":"CTO"},{"name":"Brandon Chow","role":"Principal & Founder, Panolia Investor Relations"}],"products":["Spark Plasma Sintering (SPS) systems","control rods","heat shielding"],"companies":[{"name":"California Nanotechnologies Corp.","ticker":"CNO"},{"name":"Panolia Investor Relations Inc."}],"dollarAmounts":[{"amount":"US$2,789K","context":"Annual revenue"},{"amount":"US$2,788,642","context":"Fiscal year revenue"},{"amount":"US$651,614","context":"Adjusted EBITDA (loss)"},{"amount":"US$50,329","context":"Q4 Adjusted EBITDA"},{"amount":"US$1,857,327","context":"Net loss"},{"amount":"CA$935,900","context":"Private placement gross proceeds"}]},"materialImpact":{"score":2,"reasoning":"Fiscal year revenue dropped 55% due to the loss of a major client, resulting in a net loss. However, the company highlights a successful pivot to the nuclear sector with 85% growth in ex-client manufacturing revenue and a return to positive Adjusted EBITDA in Q4."},"tickerRelevance":{"others":[],"primary":"CNO"},"globalImportance":10,"audienceRelevance":5,"eventTypeSecondary":["executive_change"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"routine_earnings_turnaround_story","sectorWeight":"industrials_niche"}},"event_type":"earnings","event_type_secondary":["executive_change"],"sentiment":"mixed","material_impact_score":2,"narrative":"California Nanotechnologies reported fiscal 2026 revenue of US$2.79 million, a 55% decrease from the prior year, primarily due to the loss of a major green steel client.\n\nDespite the revenue decline, manufacturing revenues excluding the lost customer increased 85% year-over-year, and Q4 Adjusted EBITDA returned to positive territory at US$50,329.\n\nThe company is pivoting to the nuclear energy market, securing purchase orders for Small Modular Reactor components, and closed a CA$935,900 private placement to fund growth while promoting Christopher Melnyk to CTO.","key_figures":{"revenue":2788642,"revenueYoy":"-55%","customDimensions":{"net_loss":1857327,"gross_margin":"54%","q4_adjusted_ebitda":50329,"manufacturing_rev_growth_ex_green_steel":"85%"}},"named_entities":{"people":[{"name":"Eric Eyerman","role":"CEO"},{"name":"Christopher Melnyk","role":"CTO"},{"name":"Brandon Chow","role":"Principal & Founder, Panolia Investor Relations"}],"products":["Spark Plasma Sintering (SPS) systems","control rods","heat shielding"],"companies":[{"name":"California Nanotechnologies Corp.","ticker":"CNO"},{"name":"Panolia Investor Relations Inc."}],"dollarAmounts":[{"amount":"US$2,789K","context":"Annual revenue"},{"amount":"US$2,788,642","context":"Fiscal year revenue"},{"amount":"US$651,614","context":"Adjusted EBITDA (loss)"},{"amount":"US$50,329","context":"Q4 Adjusted EBITDA"},{"amount":"US$1,857,327","context":"Net loss"},{"amount":"CA$935,900","context":"Private placement gross proceeds"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-06-29T21:07:36.602Z","global_importance":10,"audience_relevance":5,"importance_components":{"tickerTier":"micro-cap","eventGravity":"routine_earnings_turnaround_story","sectorWeight":"industrials_niche"}},"durationMs":299404,"modelName":"george-droid-qwen-72b"}}