Northstar Clean Technologies (ROOF) Q2 2024 earnings summary

Executive summary

• Focused on sustainable recovery and reprocessing of asphalt shingles, Northstar is developing its first commercial-scale facility in Calgary, Alberta, with ongoing R&D at a pilot facility in Delta, BC.

• The company reported a net loss of $2.96 million for the six months ended June 30, 2024, an improvement from a $3.38 million loss in the same period last year.

• Working capital decreased to $3.45 million as of June 30, 2024, from $5.17 million at year-end 2023.

• Material uncertainty exists regarding the company's ability to continue as a going concern due to ongoing losses and reliance on external financing.

Financial highlights

• Tipping fee revenue increased to $310,714 for the six months ended June 30, 2024, up from $78,206 year-over-year.

• Operating loss for the six months was $3.78 million, compared to $2.97 million in the prior year.

• Cash balance at June 30, 2024, was $5.62 million, down from $7.65 million at December 31, 2023.

• Net cash used in operating activities was $1.81 million for the six months, with $5.57 million used in investing activities, mainly for facility construction.

• Convertible debentures outstanding totaled $10.41 million as of June 30, 2024.

Outlook and guidance

• The company is advancing construction of the Empower Calgary Facility, supported by government grants and new financing.

• A new $14 million funding agreement with CVW CleanTech was signed in August 2024, convertible into revenue royalties on future facilities.

• Management continues to seek additional funding and strategic partnerships to support growth and facility expansion.