California Nanotechnologies Announces Q2 2026 Results

Core Insights - California Nanotechnologies Corp. reported revenues of US$779,916 for the quarter ended August 31, 2025, a decrease of 49% compared to the prior year [1] - The company experienced a net loss of US$292,423, an improvement from a net loss of US$655,031 in the previous fiscal year [2] - Adjusted EBITDA for the quarter was a loss of US$80,909, compared to a positive Adjusted EBITDA of US$808,970 in the prior year [1][2] Financial Performance - Revenues for the quarter were US$779,916, down from US$1,522,185 in the same quarter last year, marking a 49% decline [1] - Gross profit decreased to US$482,720 from US$1,254,069, resulting in a gross margin of 62%, down from 82% [1][18] - The cost of goods sold increased by 11% to US$297,196 compared to US$268,116 in the prior year [18] Operational Highlights - The decline in revenues was primarily due to the complete cessation of activity from the green steel customer, which previously contributed US$1,122,350 or 74% of revenues [6] - Manufacturing revenues excluding the green steel customer increased by 100% year-over-year, showcasing the company's efforts to diversify its client base [7][8] - The company announced a non-binding Letter of Intent for approximately US$1.0 million worth of Spark Plasma Sintering commercial production services for military brakes, expected to start in 2026 [9] Strategic Initiatives - The CEO highlighted efforts to transition towards longer-term, recurring commercial contracts, with ongoing discussions with clients to build a more sustainable business model [4] - The company is focused on enhancing its R&D and commercial production revenues to improve equipment utilization and contribution margin [8] - A provisional patent application was submitted for advanced armor applications leveraging SPS technologies, indicating ongoing innovation efforts [10] Future Outlook - The company believes it is well-positioned for potential growth with key investments in personnel, capabilities, and over US$2 million in recent equipment purchases [11]