NanoXplore Reports Results for its Q3-2025
All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights Q3-2025
Overview
Pedro Azevedo, Chief Financial Officer, stated: 'Despite slower sales than anticipated in Q3, I'm pleased with the improvements in our adjusted EBITDA and in the underlying business development. We've been working closely with new customers on graphene powder sales and expect commercialization very soon. In addition, startup of new programs that were delayed by our customers will soon start production as well as new awards at our new Statesville, North Carolina facility. While Q4 activity remains low for our biggest customers, we see stronger activity in the beginning of the new fiscal year.'
Soroush Nazarpour, President & Chief Executive Officer, stated: 'Our third quarter results demonstrate our ability to adapt to a rapidly evolving macroeconomic environment. While sales volumes were lower than anticipated, we are actively working on improving our operational efficiency. We remain focused on creating long-term value for all stakeholders and are encouraged by the progress made with our partners in two key growth areas for our graphene products: oil and gas drilling fluids, and insulation foam. These segments represent significant growth drivers for NanoXplore. Our U.S. expansion is progressing well and is especially timely given the changing tariff landscape. Overall, I'm pleased with our performance this quarter, particularly given the ongoing economic uncertainty.'
* Non-IFRS Measures
The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include 'Adjusted EBITDA' and 'Adjusted gross margin'.
The following tables provide a reconciliation of IFRS 'Loss' to Non-IFRS 'Adjusted EBITDA' and of IFRS 'Gross margin' to Non-IFRS 'Adjusted Gross margin' for the three-month periods ended March 31, 2025 and 2024.
IFRS 'Loss' to Non-IFRS 'Adjusted EBITDA'
(1) Non-operational items consist of professional fees mainly due to debt renegotiation and to prospectuses related fees.
IFRS 'Gross margin' to Non-IFRS 'Adjusted Gross margin'
Reporting Segments results
NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery Cells and Materials.
A. Results of operations variance analysis - Three-month periods
Revenues
All revenues are coming from the Advanced Materials, Plastics and Composite Products segment, except for $525,567 of other revenues [Q3-2024 – $1,585] from the Battery Cells and Materials segment.
Revenues from customers decreased from $33,617,106 in Q3-2024 to $29,239,999 in Q3-2025. This decrease is mainly due to lower tooling revenues and lower volume offset by a positive FX impact.
Other income increased from $250,641 in Q3-2024 to $1,206,166 in Q3-2025. The variation is due to grants and refundable tax credits received for Research & Development ('R&D') programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA increased from $1,259,990 in Q3-2024 to $1,318,149 in Q3-2025. The variation is explained as follows:
2) From Battery Cells and Materials
The adjusted EBITDA improved from a loss of $688,022 in Q3-2024 to an adjusted EBITDA of $102,406 in Q3-2025. The variation is explained by an increase of Other income of $523,982 and a decrease in Operational expenses of $249,680
B. Results of operations variance analysis – nine-month periods
Revenues
All revenues are coming from the Advanced Materials, Plastics and Composite products segment, except for $566,908 of other income [YTD 2024 – $27,743] from the Battery Cells and Materials segment.
Revenues from customers increased from $90,883,248 in the last year period to $95,204,015 in the current period. This increase is mainly due to a higher tooling revenues and a positive FX impact.
Other income increased from $983,554 in the last year period to $2,028,450 in the current period. The variation is due to grants received for R&D programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA increased from $1,846,644 in the last year period to $4,150,179 in the current period. The variation is explained as follows:
2) From Battery Cells and Materials
The adjusted EBITDA loss improved from a loss of $1,815,814 in the last year period to a loss of $503,275 in the current period. The variation is explained by an increase of Other income of $539,165 and a decrease in Operational expenses of $756,908.
C. Other
Additional information about the Corporation, including the Corporation's Management Discussion and Analysis for the three-month and nine-month periods ended March 31, 2025 and 2024 ('MD&A') and the Corporation's consolidated financial statements for the three-month and nine-month periods ended March 31, 2025 and 2024 (the 'financial statements') can be found at
www.nanoxplore.ca
.
Webcast
NanoXplore will hold a webcast tomorrow, May 14, 2025, at 10:00 am EST to review its three-month and nine-month periods ended March 31, 2025. Soroush Nazarpour, CEO and President of NanoXplore, and Pedro Azevedo, Chief Financial Officer, will host the event. To access the webcast please click on the link
https://edge.media-server.com/mmc/p/ngnxomuc
or you can access through our website in the Investors section under Events and Presentations. A replay of this event can be accessed via the above link or on our website.
About NanoXplore
NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon-graphene-enhanced Li-ion battery manufacturer for the Electric Vehicle and grid storage markets. NanoXplore is headquartered in Montreal, Quebec with manufacturing facilities in Canada, the United States and Europe.
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (together, 'forward-looking statements') within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as 'anticipate', 'believe', 'continue', 'could', 'estimate', 'foresee', 'grow', 'expect', 'plan', 'intend', 'forecast', 'future', 'guidance', 'may', 'predict', 'project', 'should', 'strategy', 'target', 'will' or similar expressions suggesting future outcomes.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in NanoXplore's most recent annual management discussion and analysis filed on SEDAR+ at
www.sedarplus.ca,
which may cause NanoXplore's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy. Any forward-looking information is made as of the date hereof and, except as required by law, NanoXplore does not undertake any obligation to update or revise any forward–looking statement as a result of new information, subsequent events or otherwise.
Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.
No securities regulatory authority has either approved or disapproved the contents of this press release.
For further information, please contact:
Pierre Yves Terrisse
Vice-President Corporate Development
py.terrisse@nanoxplore.ca
Tel: 1 438 476-1965
(1) Adjusted gross margin is a non-IFRS measure and a reconciliation can be found in the 'Overall Results' section.
(2) Adjusted EBITDA is a non-IFRS measure and a reconciliation can be found in the 'Overall Results' section.
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The increase in research and development expenses was primarily due to increased spending on the clinical development of QTORIN™ rapamycin for the treatment of microcystic LMs and cutaneous VMs, including conducting the Phase 3 SELVA and Phase 2 TOIVA trials, which were initiated in 2H 2024. General and administrative expenses were $4.1 million for the three months ended June 30, 2025, as compared to $1.5 million for the three months ended June 30, 2024. The increase in general and administrative expenses was primarily driven by increased employee compensation expense due to headcount additions, as well as increases in expenses related to operating as a publicly-traded company. Net loss attributable to common stockholders was $9.5 million, or $0.86 per basic and diluted share, for the three months ended June 30, 2025, as compared to net loss attributable to common stockholders of $4.4 million, or $2.47 per basic and diluted share, for the three months ended June 30, 2024. Shares outstanding were 13,735,390 as of August 8, 2025, including 11,059,665 shares of common stock and 2,675,725 common share equivalents assuming conversion of outstanding preferred shares and prefunded warrants. Conference Call Details Palvella will host a conference call and live audiovisual webcast to discuss the Company's second quarter 2025 financial results and provide a corporate update at 8:30 a.m. ET today. To access the live webcast of the call with slides, please click here or visit the 'Events & Presentations' section of Palvella's website. To access the call by phone, please use this registration link, and you will be provided with dial in details. A replay of the webcast will be available approximately 2 hours after the conclusion of the call and archived for 90 days under the 'Events & Presentations' section of the Company's website at About Palvella Therapeutics Founded and led by rare disease drug development veterans, Palvella Therapeutics, Inc. (Nasdaq: PVLA) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies to treat patients suffering from serious, rare genetic skin diseases for which there are no FDA-approved therapies. Palvella is developing a broad pipeline of product candidates based on its patented QTORIN™ platform, with an initial focus on serious, rare genetic skin diseases, many of which are lifelong in nature. Palvella's lead product candidate, QTORIN™ 3.9% rapamycin anhydrous gel (QTORIN™ rapamycin), is currently being evaluated in the Phase 3 SELVA clinical trial in microcystic lymphatic malformations and the Phase 2 TOIVA clinical trial in cutaneous venous malformations. For more information, please visit or follow Palvella on LinkedIn or X (formerly known as Twitter). QTORIN™ rapamycin is for investigational use only and has not been approved or cleared by the FDA or by any other regulatory agency for any indication. Forward-Looking Statements This press release contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended (Securities Act)). These statements may discuss goals, intentions, and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of Palvella, as well as assumptions made by, and information currently available to, the management of Palvella. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as 'may,' 'will,' 'should,' 'would,' 'expect,' 'anticipate,' 'plan,' 'likely,' 'believe,' 'estimate,' 'project,' 'intend,' and other similar expressions or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Statements that are not historical facts are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the expected timing of the presentation of data from ongoing clinical trials, Palvella's clinical development plans and related anticipated development milestones, Palvella's cash and financial resources and expected cash runway, and the potential of, and expectations regarding, Palvella's programs, including QTORIN™ rapamycin, and its research-stage opportunities and any additional indications or platform candidates, including its expected therapeutic potential and market opportunity. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the ability to raise additional capital to finance operations; the ability to advance product candidates through preclinical and clinical development; the ability to obtain regulatory approval for, and ultimately commercialize, Palvella's product candidates, including QTORIN™ rapamycin; the outcome of early clinical trials for Palvella's product candidates, including the ability of those trials to satisfy relevant governmental or regulatory requirements; the fact that data and results from clinical studies may not necessarily be indicative of future results; Palvella's limited experience in designing clinical trials and lack of experience in conducting clinical trials; the ability to identify and pivot to other programs, product candidates, or indications that may be more profitable or successful than Palvella's current product candidates; the substantial competition Palvella faces in discovering, developing, or commercializing products; the negative impacts of global events on operations, including ongoing and planned clinical trials and ongoing and planned preclinical studies; the ability to attract, hire, and retain skilled executive officers and employees; the ability of Palvella to protect its intellectual property and proprietary technologies; reliance on third parties, contract manufacturers, and contract research organizations; and the risks and uncertainties described in the filings made by Palvella with the Securities and Exchange Commission (SEC), including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the SEC and available at The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties that Palvella may face. Except as required by applicable law, Palvella does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. This press release contains hyperlinks to information that is not deemed to be incorporated by reference into this press release. Contact Information Investors Wesley H. Kaupinen Founder and CEO, Palvella Therapeutics Media Marcy Nanus Managing Partner, Trilon Advisors LLC mnanus@ PALVELLA THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Operating expenses: Research and development $ 5,118 $ 1,442 $ 9,192 $ 2,426 General and administrative 4,132 1,466 7,929 2,241 Total operating expenses 9,250 2,908 17,121 4,667 Loss from operations (9,250 ) (2,908 ) (17,121 ) (4,667 ) Total other income (expense), net (221 ) (1,264 ) (535 ) (2,041 ) Net loss $ (9,471 ) $ (4,172 ) $ (17,656 ) $ (6,708 ) Less: Cumulative Series D preferreddividends — (194 ) — (388 ) Net loss attributable to commonstockholders $ (9,471 ) $ (4,366 ) $ (17,656 ) $ (7,096 ) Net loss per share — basic and diluted $ (0.86 ) $ (2.47 ) $ (1.60 ) $ (4.01 ) Weighted-average number of commonshares used in computing net loss per share— basic and diluted 11,052,741 1,770,167 11,033,327 1,770,167 PALVELLA THERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) June 30,2025 December 31,2024 Assets Cash and cash equivalents $ 70,433 $ 83,602 Other current assets 3,314 4,632 Total current assets 73,747 88,234 Total assets $ 73,747 $ 88,234 Liabilities and Stockholders' Equity Current liabilities $ 9,616 $ 12,038 Non-current liabilities 16,351 13,589 Total liabilities 25,967 25,627 Total stockholders' equity 47,780 62,607 Total liabilities and stockholders' equity $ 73,747 $ 88,234 Sign in to access your portfolio
