CHAR Technologies (YES) Status update summary

Strategic and operational highlights

• First facility, Thorold, has entered commissioning, marking a major operational milestone and beginning revenue generation.

• Four near-term projects are expected to generate CAD 130 million in project-level revenue and CAD 42 million in free cash flow.

• Strategic partnerships provide validation, capital, and feedstock, including CAD 18 million in project commitments and access to significant biomass resources.

• Technology is validated with long-term contracted revenue, including 20-year offtake agreements for renewable natural gas.

• Multiple growth vectors include core facilities, European licensing, and PFAS destruction, supporting a strong margin profile.

Financial and structural updates

• Transitioned to a project-focused model, moving assets and liabilities to project entities, resulting in a leaner corporate structure and increased shareholders' equity.

• Realized a one-time gain of CAD 4.1 million from the Thorold joint venture, reflecting the value of pre-development work.

• Exited the consulting business to focus on core technology, leading to higher gross profit despite lower revenue.

• Year-over-year improvements in operations and balance sheet position the company for future growth.

Technology and market validation

• Completed the world’s first commercial deployment of high-temperature pyrolysis for permanent PFAS destruction in Baltimore, with third-party validation underway.

• Licensing agreement with GazoTech in France demonstrates international demand and scalability of the technology.

• PFAS destruction technology is positioned for global deployment, with significant market opportunity as regulations tighten.