Company Highlights - Base Carbon Inc. reported total assets of $111.8 million as of September 30, 2025, a slight decrease from $112.1 million on December 31, 2024 [3] - Total liabilities decreased to $8.9 million from $9.1 million, while total shareholders' equity remained relatively stable at $102.9 million compared to $103.0 million [3] - The company holds $8.0 million in cash and cash equivalents and has a carbon credit inventory valued at $23.1 million [3] Rwanda Cookstoves Project - An unrealized gain of approximately $11.8 million was recognized during Q3 2025, attributed to an increase in expected carbon credits and higher anticipated pricing [4] - The project has transitioned to Verra's VM0050 methodology, enhancing its eligibility for compliance markets like CORSIA [5][7] - The company expects to hold around 1.1 million VM0050 carbon credits in inventory post-quarter [5] Vietnam Household Devices Project - The project has entered Phase 2, allowing the company to purchase future carbon credits at $5 each, with total cash proceeds from sales reaching approximately $36.3 million [9] - The project has successfully returned 100% of its capital investment, generating a cash gain of about $15.5 million [9] India Afforestation, Reforestation, and Revegetation (ARR) Project - The company has expanded its contractual options to plant an additional 20 million trees, with the initial phase of 6.5 million trees already planted [10] - The project received comments from Verra regarding its validation submission, aligning with the company's expected timelines [11] Auditor Appointment - BDO Canada LLP has been appointed as the new auditor for the 2025 fiscal year, reflecting the company's commitment to high corporate governance standards [12]

Core Insights - Zefiro Methane has successfully originated carbon credits based on confirmed emissions reductions of 92,956 metric tonnes of CO2 equivalent from a remediation project in Custer County, Oklahoma, marking a significant milestone in the voluntary carbon market [2][4][10] - The company has delivered its first tranche of carbon credits to Mercuria Energy America, LLC, fulfilling a pre-sale agreement and establishing a new revenue stream [5][16] - Zefiro's operations have generated USD $24.4 million in revenue for the first three fiscal quarters of 2025, indicating strong financial performance [5] Carbon Credit Issuance - The carbon credits were issued under the American Carbon Registry's (ACR) new methodology for quantifying emissions reductions from plugging orphaned oil and gas wells [8][9] - The ACR959 project involved a well located on privately owned land in Custer County, Oklahoma, with post-plugging monitoring confirming compliance with ACR methodology [10] Revenue Streams and Contracts - The successful issuance of carbon credits represents a new revenue stream for Zefiro, supplementing its existing earnings from core operations [5] - Zefiro has also secured its first revenue from methane monitoring, with an USD $800,000 contract with the West Virginia Department of Environmental Protection [6] Market Position and Future Outlook - Zefiro aims to leverage the voluntary carbon markets as a funding source for the remediation of orphaned wells, reducing reliance on taxpayer resources [17] - The company is positioned to rapidly generate more carbon credits from current and future environmental remediation projects, addressing the supply deficit in American-originated carbon offsets [18] - Zefiro's management emphasizes the importance of transparent and verifiable emissions reductions to meet the demands of institutional end-users in the carbon markets [18]