Core Insights - California Nanotechnologies Corp. reported revenues of US$716,553 for the quarter ended May 31, 2025, a decrease of 59% compared to the prior year [1][8] - The company experienced a net loss of US$447,887, contrasting with a net income of US$696,042 in the same quarter last year [2][3] - Adjusted EBITDA for the quarter was a loss of US$152,707, down from a positive Adjusted EBITDA of US$754,467 in the previous year [1][10] Financial Performance - Revenues decreased from US$1,748,826 in the same quarter last year to US$716,553, marking a 59% decline [8] - Cost of Goods Sold also decreased by 49% to US$308,492, resulting in a gross profit of US$408,061, down 64% from US$1,149,673 [8] - Gross margin fell from 65% to 57%, a decline of 800 basis points [8] Customer and Revenue Dynamics - The decrease in revenues was primarily attributed to a reduction in business from a green steel customer, which accounted for only 20% of revenues this quarter compared to 87% in the same quarter last year [4][5] - Manufacturing revenues from other customers increased by 156% year-over-year to US$572,355, indicating successful diversification efforts [5][9] - The company is focusing on improving customer concentration and expects revenue growth as it ramps up business with existing customers and engages new ones [4][6] Future Outlook - The company is optimistic about future growth, supported by over US$2 million in recent equipment purchases and investments in personnel and capabilities [7] - Expectations for Q2/FY2026 include improved revenue and adjusted EBITDA as the company continues to diversify its customer base [7]