Latest news with #MarinKatusa
Toronto Star
4 days ago
- Business
- Toronto Star
Carbon Streaming Announces Financial Results for the Three and Six Months Ended June 30, 2025
TORONTO, Aug. 14, 2025 (GLOBE NEWSWIRE) — Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) ('Carbon Streaming' or the 'Company') today reported its financial results for the three and six months ended June 30, 2025. All figures are expressed in United States dollars, unless otherwise indicated. Carbon Streaming Chief Executive Officer Marin Katusa stated: 'In the second quarter of 2025, Carbon Streaming continued to make significant progress in improving financial sustainability, achieving its best quarterly operating cash flow and lowest quarterly operating expenses since the Company began operations, while continuing to evaluate strategic alternatives. Ongoing operating expenses have decreased substantially compared to prior years, and by the second quarter of 2025, the number of individuals at the Company receiving a full-time salary was reduced to three. Our priority in 2025 is to continue maximizing value from our existing portfolio while exploring all strategic options to enhance shareholder value, including acquisitions, divestments, corporate transactions, and strategic partnerships. To that end, in July 2025, we reached settlements related to the Rimba Raya Stream and the Magdalena Bay Blue Carbon Stream, delivering cash proceeds, the cancellation of previously issued shares, and the retention of certain future rights — resolving two significant assets in our portfolio. We also progressed the removal of the U.S. legend from the securities issued in our 2021 financings, opening the door to broader trading access for U.S. investors. Although the voluntary carbon market continues to face challenging conditions, we remain committed to adapting to market realities and identifying the best path forward for our shareholders. In line with this commitment to shareholders, we have recently filed a statement of claim against certain former executives, board members, consultants, and associated entities in order to hold the defendants to account for actions that have caused financial harm to the Company, as outlined in the lawsuit. And with respect to the Sustainable Community Stream and the Amazon Portfolio Royalty, the Company remains focused on protecting our investments and preserving our rights — as we will with all our investments.'
Yahoo
4 days ago
- Business
- Yahoo
Carbon Streaming Announces Financial Results for the Three and Six Months Ended June 30, 2025
TORONTO, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) ('Carbon Streaming' or the 'Company') today reported its financial results for the three and six months ended June 30, 2025. All figures are expressed in United States dollars, unless otherwise indicated. Carbon Streaming Chief Executive Officer Marin Katusa stated: 'In the second quarter of 2025, Carbon Streaming continued to make significant progress in improving financial sustainability, achieving its best quarterly operating cash flow and lowest quarterly operating expenses since the Company began operations, while continuing to evaluate strategic alternatives. Ongoing operating expenses have decreased substantially compared to prior years, and by the second quarter of 2025, the number of individuals at the Company receiving a full-time salary was reduced to three. Our priority in 2025 is to continue maximizing value from our existing portfolio while exploring all strategic options to enhance shareholder value, including acquisitions, divestments, corporate transactions, and strategic partnerships. To that end, in July 2025, we reached settlements related to the Rimba Raya Stream and the Magdalena Bay Blue Carbon Stream, delivering cash proceeds, the cancellation of previously issued shares, and the retention of certain future rights — resolving two significant assets in our portfolio. We also progressed the removal of the U.S. legend from the securities issued in our 2021 financings, opening the door to broader trading access for U.S. investors. Although the voluntary carbon market continues to face challenging conditions, we remain committed to adapting to market realities and identifying the best path forward for our shareholders. In line with this commitment to shareholders, we have recently filed a statement of claim against certain former executives, board members, consultants, and associated entities in order to hold the defendants to account for actions that have caused financial harm to the Company, as outlined in the lawsuit. And with respect to the Sustainable Community Stream and the Amazon Portfolio Royalty, the Company remains focused on protecting our investments and preserving our rights — as we will with all our investments.' Quarterly Highlights Ended the quarter with $37.1 million in cash and no corporate debt. The Company continues to earn interest income on its cash. Reduced the number of individuals receiving full-time salaries at the Company – including employees, consultants, and directors – from 24 at the start of 2024 to three full-time employees by June 2025. The Chief Executive Officer does not collect a salary, the Chief Financial Officer receives a part-time salary, and the Company has eliminated cash-settled director's fees to its board of directors ('Board'). Recognized a net loss on revaluation of carbon credit streaming and royalty agreements of $1.5 million (net loss on revaluation of $0.1 million in Q2 2024). The net loss on revaluation for the current period was primarily related to the decrease in the fair value of the Amazon Portfolio Royalty, along with changes to the risk-adjusted discount rate and accretion due to the passage of time. The Company has significantly reduced ongoing operating expenses and is continuing to review its existing streams and royalties and in the second quarter of 2025, achieved its strongest quarterly net operating cash flow and adjusted net income since the Company began operations. Generated $259 thousand in cash settlements from carbon credit streaming and royalty agreements (settlements of $507 thousand in Q2 2024). Operating loss of $1.8 million (operating loss of $3.0 million in Q2 2024). Recognized net loss of $1.3 million (net loss of $2.8 million in Q2 2024). Adjusted net income of $0.6 million (adjusted net loss of $1.7 million in Q2 2024) (see the 'Non-IFRS Accounting Standards Measures' section of this news release). Paid $nil thousand in upfront deposits for carbon credit streaming and royalty agreements (paid $4.4 million in upfront deposits in Q2 2024). In April 2025, the Company announced that it had filed a lawsuit in the Ontario Superior Court of Justice against several former executives, directors, consultants, and associated entities. Please refer to the Company's news release titled 'Carbon Streaming Announces Filing of Claim Against Former Executives and Consultants' for further information. Financial Highlights Summary Three months endedJune 30, 2025 Three months endedJune 30, 2024 Six months endedJune 30, 2025 Six months endedJune 30, 2024 Carbon credit streaming and royalty agreements Revaluation of carbon credit streaming and royalty agreements $ (1,495) $ (129) $ (1,446) $ (33,265) Settlements from carbon credit streaming and royalty agreements1 259 507 261 913 Other financial highlights Other operating expenses 318 2,918 1,719 6,627 Operating loss (1,794) (3,025) (3,145) (39,781) Net loss (1,282) (2,772) (2,104) (38,543) Loss per share (Basis and Diluted) ($/share) (0.02) (0.06) (0.04) (0.81) Adjusted net income (loss)2 608 (1,650) 100 (3,246) Adjusted net income (loss) per share (Basic and Diluted) ($/share)2 0.01 (0.03) 0.00 (0.07) Statement of financial position Cash3 37,105 43,458 37,105 43,458 Carbon credit streaming and royalty agreements3 7,538 31,371 7,538 31,371 Total assets3 46,110 78,823 46,110 78,823 Non-current liabilities3 33 1,076 33 1,076 Relates to the net cash proceeds generated from the Company's carbon credit streaming and royalty agreements. 'Adjusted net income (loss)', including per share amounts, is a non-IFRS® Accounting Standards (the '') financial performance measure that is used in this news release. This measure does not have any standardized meaning under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. For more information about this measure, why it is used by the Company, and a reconciliation to the most directly comparable measure under the IFRS Accounting Standards, see the 'Non-IFRS Accounting Standards Measures' section of this news release. Cash, carbon credit streaming and royalty agreements, total assets and non-current liabilities are presented as at the relevant tabular reporting date. Portfolio Updates Rimba Raya Stream: In October 2024, the Company initiated arbitration and legal proceedings against InfiniteEARTH Limited, its Indonesian subsidiary PT InfiniteEARTH Nusantara, and certain shareholders and principals of InfiniteEARTH (collectively, 'InfiniteEARTH'), relating to alleged breaches of the Rimba Raya Stream and Strategic Alliance Agreement. These actions included bifurcated arbitration proceedings and a civil claim in the Ontario Superior Court of Justice, following a notice from InfiniteEARTH indicating intent to abandon the Rimba Raya project, which the Company contested. See the sections of the Company's AIF entitled 'Overview of the Company's Carbon Credit Projects' and 'Legal Proceedings and Regulatory Actions' for additional details. On July 24, 2025, the Company announced that it had entered into settlement agreements with InfiniteEARTH to resolve the dispute. The key terms of the settlement agreement include: the Company receiving $0.7 million in cash from InfiniteEARTH; certain principals of InfiniteEARTH surrendering for cancellation, 4,539,180 common shares in the capital of the Company issued in connection with the Strategic Alliance Agreement; all existing contracts and legal relationships between Carbon Streaming and InfiniteEARTH terminate; and dismissal of the arbitration proceedings and the civil claim in the Ontario Superior Court of Justice. Implementation of the terms of the settlement agreement are in progress and are expected to be completed in the third quarter of 2025. For additional details about the proceedings and the settlement, please see the Company's press release titled 'Carbon Streaming Initiates Claims in Connection With the Rimba Raya Project' dated October 17, 2024, and the Company's press release titled 'Carbon Streaming Announces Settlement Agreements Related to Rimba Raya and Marvivo Projects' dated July 24, 2025. Magdalena Bay Blue Carbon Stream: On July 24, 2025, the Company reached a settlement with Fundación MarVivo México, A.C. and MarVivo Corporation (collectively, 'MarVivo') in connection with the Magdalena Bay Blue Carbon Stream. The Company accepted the abandonment of the project by the counterparties, retained certain rights for a seven-year period should the project be reactivated, and all parties agreed to a mutual release. Please refer to the Company's news release titled 'Carbon Streaming Announces Settlement Agreements Related to Rimba Raya and Marvivo Projects' for further information. Amazon Portfolio Royalty: As of June 30, 2025, the counterparties under the Amazon Portfolio Royalty were in arrears on the minimum royalty payments owed. The Company is actively engaged with all counterparties to recover these amounts and, in August 2025, issued a Notice of Dispute, Claim or Controversy to Future Carbon International LLC, the counterparty to a portion of the Amazon Portfolio Royalty. All outstanding amounts accrue interest at 11.8% per annum from the applicable due date. The Company intends to strictly enforce its legal and contractual rights under the Amazon Portfolio Royalty. Sustainable Community Stream: In the second quarter of 2025, the Company initiated arbitration proceedings against Will Solutions Inc. ('Will Solutions') in connection with the termination of the Sustainable Community Stream. The termination, which was exercised by the Company in the third quarter of 2024, followed Will Solutions' failure to meet a key milestone related to the registration of its Ontario project and ongoing non-compliance with the project plan, including delays in development activities and lower-than-expected enrollment. In July 2025, Will Solutions delivered a response and counterclaim. The Company believes the counterclaim is without merit and, based on its assessment of the facts and current legal advice, considers the probability of an economic outflow to be remote. Citadelle: In June 2025, the Company reached a settlement with Citadelle Maple Syrup Producers' Cooperative ('Citadelle') to resolve a lawsuit filed in December 2024 for the return of $0.3 million in upfront funding provided by the Company to Citadelle, plus 12% annualized return, in connection with a planned grouped sugar maple afforestation, reforestation, revegetation and ecosystem restoration project in Quebec, Canada. Under the terms of the settlement, the Company received $0.2 million in cash for full and final resolution of lawsuit. This amount was recognized as a gain from contract settlement for the three and six months ended June 30, 2025 and was collected by the Company from Citadelle in July 2025. Feather River Reforestation Stream: In July 2025, Mast informed the Company that Mast no longer expects to complete the Feather River Reforestation project. The Company has responded to Mast's communication. The Company is continuing to evaluate all legal avenues available under the Feather River Reforestation Stream. As a result, the Company does not anticipate generating cash flow from the Feather River Reforestation Stream and its fair value is $nil as of June 30, 2025. Strategy Carbon Streaming is focused on maximizing value from the existing portfolio while evaluating all strategic options, including acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities or continuing to operate as a public company. The Company's carbon credit streaming agreements retain a portion of the cash flows from carbon credit sales, with stream-specific retention varying. Cash flows are subject to fluctuations based on realized carbon credit prices and agreement terms. Outlook Carbon Streaming continues to reposition itself for success and for maximizing shareholder value amid ongoing challenges, remaining focused on cash flow optimization through the reduction of operating expenses and a reassessment of its existing streams and royalties. In the first half of 2025, the Company has significantly reduced employee headcount and renegotiated and amended vendor agreements to lower costs. As the Company's broader strategy continues to evolve, these steps have resulted in significant reductions to annualized ongoing operating expenses when compared to 2024. While the Company aims to generate cash flow through the sale of carbon credits over the next year, there remains ongoing uncertainty regarding the evolving nature of carbon markets, including potential registry delays, project-specific issues, and methodology-related risks, in addition to impacts the industry may face as a result of general economic, political and regulatory conditions. In 2024, the Company recognized a decrease in the fair values of various assets to $nil as a result of the failure of the respective projects to meet their obligations under the stream agreements and ongoing legal disputes. Subsequent to June 30, 2025, the Company reached settlements related to the Rimba Raya Stream and the Magdalena Bay Blue Carbon Stream, which will result in cash proceeds, the cancellation of previously issued shares of the Company, and the retention of certain future rights, bringing resolution to these two assets. The Company continues to pursue all available legal remedies to protect its investments and enforce its contractual rights. Given the multiple ongoing litigation matters, the outcomes remain uncertain and could materially impact the Company's financial position and strategic direction. Please refer to the 'Legal Proceedings' section of the Company's most recently filed MD&A for further information. For a comprehensive discussion of the risks, assumptions and uncertainties that could impact the Company's strategy and outlook, including without limitation, changes in demand for carbon credits and Indonesian developments described herein, investors are urged to review the section of the Company's most recently filed AIF entitled 'Risk Factors' a copy of which is available on SEDAR+ at About Carbon Streaming Carbon Streaming's focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential. ON BEHALF OF THE COMPANY:Marin Katusa, Chief Executive Officer Tel: 365.607.6095info@ Investor Relationsinvestors@ Mediamedia@ Non-IFRS Accounting Standards Measures Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share The term 'adjusted net income (loss)' in this news release is not a standardized financial measure under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. These non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for measures of performance, cash flows and financial position as prepared in accordance with the IFRS Accounting Standards. Management believes that these non-IFRS Accounting Standards measures, together with performance measures and measures prepared in accordance with the IFRS Accounting Standards, provide useful information to investors and shareholders in assessing the Company's liquidity and overall performance. Adjusted net income (loss) is calculated as net and comprehensive loss and adjusted for the revaluation of carbon credit streaming and royalty agreements, the revaluation of warrant liabilities, the impairment of early deposit interest receivable, the gain on dissolution of associate, the gain on contract settlement, and the litigation and corporate restructuring which the Company views as having a significant non-cash or non-continuing impact on the Company's net and comprehensive loss calculation and per share amounts. Adjusted net income (loss) is used by the Company to monitor its results from operations for the period. The following table reconciles net and comprehensive loss to adjusted net income (loss): Three months endedJune 30, 2025 Three months endedJune 30, 2024 Six months endedJune 30, 2025 Six months endedJune 30, 2024 Net loss and comprehensive loss $ (1,282) $ (2,772) $ (2,104) $ (38,543) Adjustment for non-continuing or non-cash settled items: Revaluation of carbon credit streaming and royalty agreements 1,495 129 1,446 33,265 Revaluation of warrant liabilities 27 267 (87) (67) Impairment of early deposit interest receivable - 307 - 307 Gain on dissolution of associate - (104) - (104) Gain on contract settlement (183) - (183) - Litigation and corporate restructuring 551 523 1,028 1,896 Adjusted net income (loss) 608 (1,650) 100 (3,246) Loss per share (Basic and Diluted) ($/share) (0.02) (0.06) (0.04) (0.81) Adjusted net income (loss) per share (Basic and Diluted) ($/share) 0.01 (0.03) 0.00 (0.07) Cautionary Statement Regarding Forward-Looking Information This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking information') within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking information, including, without limitation, statements regarding the anticipated impact of changes to the Company's Board and management; the impact of the Company's restructuring strategies, including evaluation of strategic alternatives; the ability of the Company to execute on expense reductions and savings from operating cost reduction measures; statements with respect to cash flow optimization and generation; its sales strategy; supporting the Company's carbon streaming and royalty partners; timing and the amount of future carbon credit generation and emission reductions and removals from the Company's existing streaming and royalty agreements; statements with respect to the projects in which the Company has streaming and royalty agreements in place; statements with respect to the Company's growth objectives and potential and its position in the voluntary carbon markets; statements with respect to execution of the Company's portfolio and partnership strategy; statements regarding the Company holding certain former executives, directors, consultants, and associated entities to account; the impact of the Company's restructuring strategies; statements regarding implementing the terms of the settlement agreement and the timing thereof, statements with respect to the merits of the counterclaim from Will Solutions Inc.; and statements regarding the Company's intention to strictly enforce its legal and contractual rights under the Amazon Portfolio Royalty. When used in this news release, words such as 'estimates', 'expects', 'plans', 'anticipates', 'will', 'believes', 'intends' 'should', 'could', 'may' and other similar terminology are intended to identify such forward-looking information. This forward-looking information is based on the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Factors that could cause actual results or events to differ materially from current expectations include, among other things: general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and environmental, social and governance initiatives and subsequent changes in corporate or government policies or regulations and associated changes in demand for carbon credits; the Company's expectations and plans with respect to current litigation, arbitration and regulatory proceedings; limited operating history for the Company's current strategy; concentration risk; inaccurate estimates of project value, which may impact the ability of the Company to execute on its growth and diversification strategy; dependence upon key management; impact of corporate restructurings; the inability of the Company to optimize cash flows or sufficiently reduce operating expenses; reputational risk; risks arising from competition and future acquisition activities failure or timing delays for projects to be registered, validated and ultimately developed and for emission reductions or removals to be verified and carbon credits issued (and other risks associated with carbon credits standards and registries); foreign operations and political risks including actions by governmental authorities, including changes in or to government regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; due diligence risks, including failure of third parties' reviews, reports and projections to be accurate; dependence on project partners, operators and owners, including failure by such counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; failure of projects to generate carbon credits, or natural disasters such as flood or fire which could have a material adverse effect on the ability of any project to generate carbon credits; volatility in the market price of the Company's common shares or warrants; the effect that the issuance of additional securities by the Company could have on the market price of the Company's common shares or warrants; global health crises, such as pandemics and epidemics; and the other risks disclosed under the heading 'Risk Factors' and elsewhere in the Company's Annual Information Form dated as of March 31, 2025 filed on SEDAR+ at Any forward-looking information speaks only as of the date of this news release. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Hamilton Spectator
17-06-2025
- Business
- Hamilton Spectator
Carbon Streaming Announces Corporate Update and Legend Removal Process for All U.S. Investors From the 2021 Financings
TORONTO, June 17, 2025 (GLOBE NEWSWIRE) — Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) ('Carbon Streaming' or the 'Company') today provides a corporate update and announces legend removal process for all U.S. investors from the 2021 Financings (as defined below). Highlights: Restrictive Legend Removal: The Company has finalized the process to offer qualifying U.S. investors who participated in the 2021 Financings (defined below) the opportunity to remove the restrictive legend from their share certificates—or from book-entry shares, as applicable—without the need for the shareholder to pay for a legal opinion, regardless of whether a particular shareholder intends to sell or actually sells the shares into the public market. This service is being provided at no cost to all qualifying investors. This legend on the share certificates renders the securities 'restricted securities' as defined in Rule 144 of the Securities Act of 1933 and restricts these investors from selling stock. The blanket opinion provides that the removal of the restrictive legend is now permissible under Section 4(a)(1) of the Securities Act of 1933. While removing the legend is permissible, it is not required. Shareholders are not required to take any action if they prefer to keep the restrictive legend in place. Marin Katusa, CEO of the Company, stated 'The vast majority of the capital raised for Carbon Streaming came from the financings throughout the 2021 calendar year. Since those financings in 2021, over 700 U.S. residents who invested in those financings have been unable to deposit their shares into a brokerage firm or freely sell those shares because of the restrictive legend that is applied to U.S. investors investing in private placements. The typical process to remove a restrictive legend is done on a one-off basis, meaning each U.S resident must complete the removal of the restrictive legend on their own. This is the first time a publicly listed Canadian company, such that we are aware, has offered the removal of the restrictive legend through a digitalized process applicable to a large group of U.S. investors (over 700 shareholders at the same time) to simplify and expediate the process of removing the restrictive U.S. legend. We approached DealMaker in early 2025 with the concept to digitalize the legend removal process for the U.S. investors. The Company worked with DealMaker on the 2021 Financings where all subscription forms were digitalized and the funding process was completed. I am especially proud of the innovation of this potential solution to U.S. legend removals, as it will ultimately cost less than 5% of the quotes the Company initially received to obtain a global opinion letter for the removal the U.S. restrictive legend through the traditional process. In addition, DealMaker has agreed to not charge for their services.' Eligibility for Blanket Removal Holders of Common Shares are eligible if they are US residents, non affiliates and acquired the Common Shares pursuant to: (collectively, the '2021 Financings') Timing and Process to Participate in Blanket Removal Holders who are eligible will receive an email from DealMaker on or about June 23, 2025 with instructions on how to participate. If you are a U.S. investor and do not want to register your shares into a brokerage account or sell your shares, then no action is required. This service is being offered by the Company to U.S. investors who acquired their shares in the 2021 Financings, are not affiliates and who have the restrictive legend on their share certificates—or book-entry shares, as applicable and wish to deposit them in a brokerage account or sell their shares in the public market. Marin Katusa, CEO, further added: 'DealMaker handled the 2021 Financings for the Company which included the digitalizing subscription forms and managing the subscription wires from the investors in a professional, efficient and low-cost manner. We strongly believe that this innovative solution we have created with DealMaker to remove the U.S. restrictive legends will be equally successful. We are grateful for DealMaker's innovative approach and commitment to excellence, which continues to streamline our investor communications and elevate the overall experience for our shareholders.' Cash Conservation As of June 16, 2025, the Company has US$37.0 million in cash (C$50.3 million), remains debt-free, and has no outstanding legal payables. With cash generated from the sale of carbon credits held by the Company, interest earned on the Company's cash balance, and substantial reductions in operating expenses to date, the Company expects a significant improvement in operating cash flow in 2025 when compared to previous years. The Company currently has three full-time employees and a part-time CFO, with a combined annual base compensation of approximately US$0.5 million, while the CEO and Board of Directors are not collecting any salaries, fees, nor equity-based compensation of any kind. Carbon credits held by the Company as of June 16, 2025 The Company has been in discussions with several different parties regarding the sale of its existing carbon credits. While current market pricing for cookstoves remains weak, the Company continues to advance its marketing efforts. A new initiative by the Company leverages AI-driven analysis of public disclosures to identify active buyers of environmental attributes. This effort is helping the Company more effectively target potential buyers for its current credit inventory, without incurring additional cost. Notice of Arbitration - Will Solutions. On June 16, 2025, the Company delivered a written Notice of Arbitration in Ontario to Will Solutions Inc. and the ADR Chambers. As previously disclosed, in the third quarter of 2024, the Company exercised its contractual rights to terminate the purchase sale agreement dated June 20, 2022 with Will Solutions Inc. (the 'Sustainable Community Stream') as a result of, among other things, the failure of Will Solutions Inc. to meet its milestone related to the registration of its Ontario project and its failure to develop and implement the project in accordance with the project plan (including continued delays in project development activities and lower-than-expected project enrollments). The Company has advanced $4.0 million of the upfront deposit to Will Solutions Inc. under the Sustainable Community Stream. The Company will continue to pursue all of its rights and interests. 2025 Annual General Meeting The Company's AGM will be held on June 18th, 2025, at 9:30 a.m. (Vancouver time), at the offices of Farris LLP, 25th Floor, 700 W Georgia Street, Vancouver, British Columbia, Canada. About Carbon Streaming Carbon Streaming's focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential. ON BEHALF OF THE COMPANY: Marin Katusa, Chief Executive Officer Tel: 365.607.6095 info@ Investor Relations investors@ Media media@ Cautionary Statement Regarding Forward-Looking Information This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking information') within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking information, including, without limitation, the impact of the Company's restructuring strategies, including evaluation of strategic alternatives; the ability of the Company to execute on expense reductions and savings from operating cost reduction measures; statements with respect to cash conservation; its sales strategy; supporting the Company's carbon streaming and royalty partners; statements with respect to the eligibility, timing, process and completion of restrictive legend removal; statements with respect to the expected improvement in operating cash flow in 2025 when compared to previous years; statements with respect to the effectiveness and cost of AI-driven analysis of public disclosures to identify active buyers of environmental attributes; statements regarding the Company's intention to pursue all of its rights and interests under the Sustainable Community Stream; and statements with respect to the timing of the Company's AGM. When used in this news release, words such as 'estimates', 'expects', 'plans', 'anticipates', 'will', 'believes', 'intends' 'should', 'could', 'may' and other similar terminology are intended to identify such forward-looking information. This forward-looking information is based on the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. They should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. Factors that could cause actual results or events to differ materially from current expectations include, among other things: general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and environmental, social and governance initiatives and subsequent changes in corporate or government policies or regulations and associated changes in demand for carbon credits; the Company's expectations and plans with respect to current litigation, arbitration and regulatory proceedings; limited operating history for the Company's current strategy; concentration risk; inaccurate estimates of project value, which may impact the ability of the Company to execute on its growth and diversification strategy; dependence upon key management; impact of corporate restructurings; the inability of the Company to optimize cash flows or sufficiently reduce operating expenses; reputational risk; risks arising from competition and future acquisition activities failure or timing delays for projects to be registered, validated and ultimately developed and for emission reductions or removals to be verified and carbon credits issued (and other risks associated with carbon credits standards and registries); foreign operations and political risks including actions by governmental authorities, including changes in or to government regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; due diligence risks, including failure of third parties' reviews, reports and projections to be accurate; dependence on project partners, operators and owners, including failure by such counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; failure of projects to generate carbon credits, or natural disasters such as flood or fire which could have a material adverse effect on the ability of any project to generate carbon credits; volatility in the market price of the Company's common shares or warrants; the effect that the issuance of additional securities by the Company could have on the market price of the Company's common shares or warrants; global health crises, such as pandemics and epidemics; and the other risks disclosed under the heading 'Risk Factors' and elsewhere in the Company's Annual Information Form dated as of March 31, 2025 filed on SEDAR+ at . Any forward-looking information speaks only as of the date of this news release. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Yahoo
13-05-2025
- Business
- Yahoo
Carbon Streaming Announces Financial Results for the Three Months Ended March 31, 2025
TORONTO, May 13, 2025 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) ('Carbon Streaming' or the 'Company') today reported its financial results for the three months ended March 31, 2025. All figures are expressed in United States dollars, unless otherwise indicated. Carbon Streaming Chief Executive Officer Marin Katusa stated: 'In the first quarter of 2025, Carbon Streaming made significant progress in reducing costs and improving financial sustainability, while continuing to evaluate strategic alternatives. Ongoing operating expenses have decreased substantially compared to prior years, and by May 2025, the number of individuals at the Company receiving a full-time salary was reduced to three. While we continue to pursue cost reductions, our priority in 2025 is to maximize value from our existing portfolio while exploring all strategic options to enhance shareholder value. More specifically, we will evaluate potential acquisitions, divestments, corporate transactions, and strategic partnerships. Although the voluntary carbon market continues to face challenging conditions and broader economic uncertainties persist, we remain committed to adapting to market realities and identifying the best path forward for our shareholders. In line with this commitment to shareholders, we have recently filed a statement of claim against certain former executives, board members, consultants, and associated entities in order to hold the defendants to account for actions that have caused financial harm to the Company, as outlined in the lawsuit. And with respect to the Rimba Raya, Magdalena Bay, and Sustainable Community Streams, the Company remains focused on protecting our investments and preserving our rights — as we will with all our investments.' Quarterly Highlights Ended the year with $36.4 million in cash and no corporate debt. During the quarter, the Company converted $18.0 million in cash from US$ to C$ at an exchange rate of 1.42 C$ for every 1.00 US$. The Company continues to earn interest income on its cash. Reduced the number of individuals receiving full-time salaries at the Company - including employees, consultants, and directors - from 24 at the start of 2024 to 3 full-time employees by May 2025, resulting in significant savings in ongoing operating expenses. The Chief Executive Officer is not collecting a salary, the Chief Financial Officer is receiving a part-time salary, and the Company has eliminated cash-settled director's fees to its board of directors ('Board'). Recognized a net gain on revaluation of carbon credit streaming and royalty agreements of $49 thousand (net loss on revaluation of $33.1 million for Q1 2024). The net gain on revaluation for the current period was primarily related to changes to the risk-adjusted discount rate and accretion due to the passage of time. Building on the success of the previously-announced ongoing corporate restructuring plan, the Company has significantly reduced ongoing operating expenses and is continuing to review its existing streams and royalties. Generated $2 thousand in settlements from carbon credit streaming and royalty agreements (settlements of $406 thousand during Q1 2024). Operating loss of $1.4 million (operating loss of $36.6 million in Q1 2024). Recognized net loss of $0.8 million (net loss of $35.8 million in Q1 2024). Adjusted net loss was $0.5 million (adjusted net loss of $1.6 million in Q1 2024) (see the 'Non-IFRS Accounting Standards Measures' section of this news release). Paid $164 thousand in upfront deposits for carbon credit streaming and royalty agreements (paid $400 thousand in upfront deposits in Q1 2024). In April 2025, the Company announced that it had filed a lawsuit in the Ontario Superior Court of Justice against several former executives, directors, consultants, and associated entities. Please refer to the Company's news release titled 'Carbon Streaming Announces Filing of Claim Against Former Executives and Consultants' for further information. Financial Highlights Summary Three months ended March 31, 2025 Three months ended March 31, 2024 Carbon credit streaming and royalty agreements Revaluation of carbon credit streaming and royalty agreements $ 49 $ (33,136 ) Settlements from carbon credit streaming and royalty agreements1 2 406 Other financial highlights Other operating expenses 1,401 3,709 Operating loss (1,351 ) (36,756 ) Net loss (822 ) (35,771 ) Loss per share (Basis and Diluted) ($/share) (0.02 ) (0.75 ) Adjusted net loss2 (508 ) (1,596 ) Adjusted net loss per share (Basic and Diluted) ($/share)2 (0.01 ) (0.03 ) Statement of financial position Cash3 36,444 49,008 Carbon credit streaming and royalty agreements3 9,292 26,980 Total assets3 47,098 81,596 Non-current liabilities3 47 1,059 Relates to the net cash proceeds generated from the Company's carbon credit streaming and royalty agreements. 'Adjusted net loss', including per share amounts, is a non-IFRS® Accounting Standards (the 'IFRS Accounting Standards') financial performance measure that is used in this news release. This measure does not have any standardized meaning under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. For more information about this measure, why it is used by the Company, and a reconciliation to the most directly comparable measure under the IFRS Accounting Standards, see the 'Non-IFRS Accounting Standards Measures" section of this news release. Cash, carbon credit streaming and royalty agreements, total assets and non-current liabilities are presented as at the relevant tabular reporting date. Portfolio Updates Nalgonda Rice Farming Stream: The project was registered with Verra on February 10, 2025, using the UNFCCC Clean Development Mechanism Methodology Methane emission reduction by adjusted water management practice in rice cultivation in the VCS program (' Registration and first validation of the project was delayed when Verra temporarily inactivated as part of a broader review of validation and verification quality and began developing a revised rice-specific methodology to replace During this review, Verra determined that certain projects identified as having quality issues with validations and/or verifications would remain on hold, but Core CarbonX's projects, including the Nalgonda Rice Farming project, were approved for registration under Verra released the new VCS Methodology VM0051 (Improved Management in Rice Production Systems v1.0) on February 27, 2025, which the project plans to transition to for the second monitoring period. However, the project has already applied the guidelines required under the VCS Methodology VM0051. At this time, it is not known how the transition to the new methodology will impact the project, if at all. Sheep Creek Reforestation Stream: In January 2025, the Company received a Notice of Adverse Impact from Mast Reforestation SPV I, LLC ('Mast') and the parent company of Mast, Droneseed Co. d/b/a Mast Reforestation under the Sheep Creek Reforestation Stream pursuant to which, among other things, Mast advised the Company that the Sheep Creek project has experienced significantly higher than expected mortality rates and that the surviving seedlings had exhibited slower than expected growth rates. As a result, Mast indicated to the Company that it no longer expects to deliver the Company the agreed-upon 286,229 carbon removal credits, referred to as forecast mitigation units ('FMUs') under the Climate Action Reserve's Climate Forward program under the Sheep Creek Reforestation Stream, as Mast no longer considers the existing Sheep Creek project plan and budget to be viable. The Company has formally responded to the Notice of Adverse Impact and requested that Mast respond to the Company's significant concerns regarding, among other things, the timing of the delivery of the Notice of Adverse Impact, and the characterization of the cause of the adverse impact. The Company is continuing to evaluate all legal avenues available under the Sheep Creek Reforestation Stream. As a result, the Company no longer anticipates generating cash flow from the Sheep Creek Reforestation Stream, and its fair value is $nil as of March 31, 2025. Baccala Ranch Reforestation Stream: In March 2025, Mast delivered the Company a notice of termination of the Baccala Ranch Reforestation Stream and the Baccala Ranch project, thereby confirming it will forego any plantings. The Company had not advanced any funds for the Baccala project and the closing of the Baccala Ranch Reforestation Stream remained subject to customary closing conditions. Enfield Biochar Stream: In April 2025, Standard Biocarbon Corporation ('Standard Biocarbon') successfully completed an equity financing resulting in a change of control. In connection with the financing, a new CEO has been appointed to lead Standard Biocarbon through project commissioning. Strategy Carbon Streaming is currently focused on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal. During 2024, the Company underwent changes to the Board and management, including the termination of certain consulting contracts, which reduced ongoing cash expenditure and streamlined decision-making. The Company continues to focus on its previously announced evaluation of strategic alternatives with a focus on maximizing value for all shareholders. These alternatives could include acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities or continuing to operate as a public company. The Company's carbon credit streaming agreements are structured to retain a portion of the cash flows from carbon credit sales, with stream-specific retention varying. Project partners typically receive the balance through ongoing delivery payments under the terms of each agreement. Cash flows are subject to fluctuations based on realized carbon credit prices and agreement terms. As the Company continues to evaluate its strategic direction, it remains focused on optimizing portfolio economics and managing exposure to market volatility. Outlook Carbon Streaming continues to reposition itself for success and for maximizing shareholder value amid ongoing challenges. In May 2024, as part of its ongoing corporate restructuring first initiated in 2023, the Company announced changes to its senior management and Board after constructive discussions with certain shareholders. The Company continues to evaluate strategic alternatives for the business and remains focused on cash flow optimization through the reduction of operating expenses and a reassessment of its existing streams and royalties. Building on the previous measures implemented by the Company to reduce ongoing operating expenses, further steps have been taken in recent months, including significantly reducing employee headcount, renegotiating and amending vendor agreements to lower costs, eliminating cash-settled director's fees to the Board and terminating certain consulting contracts. As the Company's broader strategy continues to evolve, these recent steps are expected to result in significant reductions to annualized ongoing operating expenses when compared to 2024. While the Company aims to increase cash flow generation through the sale of carbon credits from several streaming agreements over the next year, there remains ongoing uncertainty regarding the evolving nature of carbon markets, including potential registry delays, project-specific issues, and methodology-related risks, in addition to impacts the industry may face as a result of general economic, political and regulatory conditions. In 2024, the Company recognized a decrease in the fair values of the Rimba Raya Stream, the Magdalena Bay Blue Carbon Stream, the Sustainable Community Stream, and the Sheep Creek Reforestation Stream to $nil as a result of the failure of the respective projects to meet their obligations under the stream agreements and ongoing legal disputes. The Company is actively pursuing all available legal remedies to protect its investments and enforce its contractual rights. Given the multiple ongoing litigation matters, the outcomes remain uncertain and could materially impact the Company's financial position and strategic direction. Please refer to the 'Legal Proceedings' section of the Company's most recently filed MD&A for further information. Given the evolving nature of carbon markets and ongoing legal considerations, Carbon Streaming is focussed on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal. For a comprehensive discussion of the risks, assumptions and uncertainties that could impact the Company's strategy and outlook, including without limitation, changes in demand for carbon credits and Indonesian developments described herein, investors are urged to review the section of the Company's most recently filed AIF entitled 'Risk Factors' a copy of which is available on SEDAR+ at About Carbon Streaming Carbon Streaming's focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential. ON BEHALF OF THE COMPANY:Marin Katusa, Chief Executive Officer Tel: 365.607.6095info@ Investor Relationsinvestors@ Mediamedia@ Non-IFRS Accounting Standards Measures Adjusted Net Loss and Adjusted Loss Per Share The term 'adjusted net loss' in this news release is not a standardized financial measure under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. These non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for measures of performance, cash flows and financial position as prepared in accordance with the IFRS Accounting Standards. Management believes that these non-IFRS Accounting Standards measures, together with performance measures and measures prepared in accordance with the IFRS Accounting Standards, provide useful information to investors and shareholders in assessing the Company's liquidity and overall performance. Adjusted net loss is calculated as net and comprehensive loss and adjusted for the revaluation of carbon credit streaming and royalty agreements, the revaluation of warrant liabilities, the impairment loss on early deposit interest receivable, the revaluation of derivative liabilities, the revaluation of the convertible note, the impairment loss on investment in associate, the gain on dissolution of associate, and the corporate restructuring which the Company views as having a significant non-cash or non-continuing impact on the Company's net and comprehensive loss calculation and per share amounts. Adjusted net loss is used by the Company to monitor its results from operations for the period. The following table reconciles net and comprehensive loss to adjusted net loss: Three months ended March 31, 2025 Three months ended March 31, 2024 Net loss and comprehensive loss $ (822 ) $ (35,771 ) Adjustment for non-continuing or non-cash settled items: Revaluation of carbon credit streaming and royalty agreements (49 ) 33,136 Revaluation of warrant liabilities (114 ) (334 ) Litigation and corporate restructuring 477 1,373 Adjusted net loss (508 ) (1,596 ) Loss per share (Basic and Diluted) ($/share) (0.02 ) (0.75 ) Adjusted net loss per share (Basic and Diluted) ($/share) (0.01 ) (0.03 ) Cautionary Statement Regarding Forward-Looking Information This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking information') within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking information, including, without limitation, statements regarding the anticipated impact of changes to the Company's Board and management; the impact of the Company's restructuring strategies, including evaluation of strategic alternatives; the ability of the Company to execute on expense reductions and savings from operating cost reduction measures; statements with respect to cash flow optimization and generation; its sales strategy; supporting the Company's carbon streaming and royalty partners; timing and the amount of future carbon credit generation and emission reductions and removals from the Company's existing streaming and royalty agreements; statements with respect to the projects in which the Company has streaming and royalty agreements in place; statements with respect to the Company's growth objectives and potential and its position in the voluntary carbon markets; statements with respect to execution of the Company's portfolio and partnership strategy; statements regarding the Company holding certain former executives, directors, consultants, and associated entities to account. statements with respect to the ongoing legal process to protect the Company's investment in the Rimba Raya project and to enforce its legal and contractual rights; and statements regarding the Company's intention to strictly enforce its legal and contractual rights under the Sustainable Community Stream and the Magdalena Bay Blue Carbon Stream and the Sheep Creek Reforestation Stream. When used in this news release, words such as 'estimates', 'expects', 'plans', 'anticipates', 'will', 'believes', 'intends' 'should', 'could', 'may' and other similar terminology are intended to identify such forward-looking information. This forward-looking information is based on the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Factors that could cause actual results or events to differ materially from current expectations include, among other things: general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and environmental, social and governance initiatives and subsequent changes in corporate or government policies or regulations and associated changes in demand for carbon credits; the Company's expectations and plans with respect to current litigation, arbitration and regulatory proceedings; limited operating history for the Company's current strategy; concentration risk; inaccurate estimates of project value, which may impact the ability of the Company to execute on its growth and diversification strategy; dependence upon key management; impact of corporate restructurings; the inability of the Company to optimize cash flows or sufficiently reduce operating expenses; reputational risk; risks arising from competition and future acquisition activities failure or timing delays for projects to be registered, validated and ultimately developed and for emission reductions or removals to be verified and carbon credits issued (and other risks associated with carbon credits standards and registries); foreign operations and political risks including actions by governmental authorities, including changes in or to government regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; due diligence risks, including failure of third parties' reviews, reports and projections to be accurate; dependence on project partners, operators and owners, including failure by such counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; failure of projects to generate carbon credits, or natural disasters such as flood or fire which could have a material adverse effect on the ability of any project to generate carbon credits; volatility in the market price of the Company's common shares or warrants; the effect that the issuance of additional securities by the Company could have on the market price of the Company's common shares or warrants; global health crises, such as pandemics and epidemics; and the other risks disclosed under the heading 'Risk Factors' and elsewhere in the Company's Annual Information Form dated as of March 31, 2025 filed on SEDAR+ at Any forward-looking information speaks only as of the date of this news release. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Yahoo
13-05-2025
- Business
- Yahoo
Carbon Streaming Announces Financial Results for the Three Months Ended March 31, 2025
TORONTO, May 13, 2025 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) ('Carbon Streaming' or the 'Company') today reported its financial results for the three months ended March 31, 2025. All figures are expressed in United States dollars, unless otherwise indicated. Carbon Streaming Chief Executive Officer Marin Katusa stated: 'In the first quarter of 2025, Carbon Streaming made significant progress in reducing costs and improving financial sustainability, while continuing to evaluate strategic alternatives. Ongoing operating expenses have decreased substantially compared to prior years, and by May 2025, the number of individuals at the Company receiving a full-time salary was reduced to three. While we continue to pursue cost reductions, our priority in 2025 is to maximize value from our existing portfolio while exploring all strategic options to enhance shareholder value. More specifically, we will evaluate potential acquisitions, divestments, corporate transactions, and strategic partnerships. Although the voluntary carbon market continues to face challenging conditions and broader economic uncertainties persist, we remain committed to adapting to market realities and identifying the best path forward for our shareholders. In line with this commitment to shareholders, we have recently filed a statement of claim against certain former executives, board members, consultants, and associated entities in order to hold the defendants to account for actions that have caused financial harm to the Company, as outlined in the lawsuit. And with respect to the Rimba Raya, Magdalena Bay, and Sustainable Community Streams, the Company remains focused on protecting our investments and preserving our rights — as we will with all our investments.' Quarterly Highlights Ended the year with $36.4 million in cash and no corporate debt. During the quarter, the Company converted $18.0 million in cash from US$ to C$ at an exchange rate of 1.42 C$ for every 1.00 US$. The Company continues to earn interest income on its cash. Reduced the number of individuals receiving full-time salaries at the Company - including employees, consultants, and directors - from 24 at the start of 2024 to 3 full-time employees by May 2025, resulting in significant savings in ongoing operating expenses. The Chief Executive Officer is not collecting a salary, the Chief Financial Officer is receiving a part-time salary, and the Company has eliminated cash-settled director's fees to its board of directors ('Board'). Recognized a net gain on revaluation of carbon credit streaming and royalty agreements of $49 thousand (net loss on revaluation of $33.1 million for Q1 2024). The net gain on revaluation for the current period was primarily related to changes to the risk-adjusted discount rate and accretion due to the passage of time. Building on the success of the previously-announced ongoing corporate restructuring plan, the Company has significantly reduced ongoing operating expenses and is continuing to review its existing streams and royalties. Generated $2 thousand in settlements from carbon credit streaming and royalty agreements (settlements of $406 thousand during Q1 2024). Operating loss of $1.4 million (operating loss of $36.6 million in Q1 2024). Recognized net loss of $0.8 million (net loss of $35.8 million in Q1 2024). Adjusted net loss was $0.5 million (adjusted net loss of $1.6 million in Q1 2024) (see the 'Non-IFRS Accounting Standards Measures' section of this news release). Paid $164 thousand in upfront deposits for carbon credit streaming and royalty agreements (paid $400 thousand in upfront deposits in Q1 2024). In April 2025, the Company announced that it had filed a lawsuit in the Ontario Superior Court of Justice against several former executives, directors, consultants, and associated entities. Please refer to the Company's news release titled 'Carbon Streaming Announces Filing of Claim Against Former Executives and Consultants' for further information. Financial Highlights Summary Three months ended March 31, 2025 Three months ended March 31, 2024 Carbon credit streaming and royalty agreements Revaluation of carbon credit streaming and royalty agreements $ 49 $ (33,136 ) Settlements from carbon credit streaming and royalty agreements1 2 406 Other financial highlights Other operating expenses 1,401 3,709 Operating loss (1,351 ) (36,756 ) Net loss (822 ) (35,771 ) Loss per share (Basis and Diluted) ($/share) (0.02 ) (0.75 ) Adjusted net loss2 (508 ) (1,596 ) Adjusted net loss per share (Basic and Diluted) ($/share)2 (0.01 ) (0.03 ) Statement of financial position Cash3 36,444 49,008 Carbon credit streaming and royalty agreements3 9,292 26,980 Total assets3 47,098 81,596 Non-current liabilities3 47 1,059 Relates to the net cash proceeds generated from the Company's carbon credit streaming and royalty agreements. 'Adjusted net loss', including per share amounts, is a non-IFRS® Accounting Standards (the 'IFRS Accounting Standards') financial performance measure that is used in this news release. This measure does not have any standardized meaning under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. For more information about this measure, why it is used by the Company, and a reconciliation to the most directly comparable measure under the IFRS Accounting Standards, see the 'Non-IFRS Accounting Standards Measures" section of this news release. Cash, carbon credit streaming and royalty agreements, total assets and non-current liabilities are presented as at the relevant tabular reporting date. Portfolio Updates Nalgonda Rice Farming Stream: The project was registered with Verra on February 10, 2025, using the UNFCCC Clean Development Mechanism Methodology Methane emission reduction by adjusted water management practice in rice cultivation in the VCS program (' Registration and first validation of the project was delayed when Verra temporarily inactivated as part of a broader review of validation and verification quality and began developing a revised rice-specific methodology to replace During this review, Verra determined that certain projects identified as having quality issues with validations and/or verifications would remain on hold, but Core CarbonX's projects, including the Nalgonda Rice Farming project, were approved for registration under Verra released the new VCS Methodology VM0051 (Improved Management in Rice Production Systems v1.0) on February 27, 2025, which the project plans to transition to for the second monitoring period. However, the project has already applied the guidelines required under the VCS Methodology VM0051. At this time, it is not known how the transition to the new methodology will impact the project, if at all. Sheep Creek Reforestation Stream: In January 2025, the Company received a Notice of Adverse Impact from Mast Reforestation SPV I, LLC ('Mast') and the parent company of Mast, Droneseed Co. d/b/a Mast Reforestation under the Sheep Creek Reforestation Stream pursuant to which, among other things, Mast advised the Company that the Sheep Creek project has experienced significantly higher than expected mortality rates and that the surviving seedlings had exhibited slower than expected growth rates. As a result, Mast indicated to the Company that it no longer expects to deliver the Company the agreed-upon 286,229 carbon removal credits, referred to as forecast mitigation units ('FMUs') under the Climate Action Reserve's Climate Forward program under the Sheep Creek Reforestation Stream, as Mast no longer considers the existing Sheep Creek project plan and budget to be viable. The Company has formally responded to the Notice of Adverse Impact and requested that Mast respond to the Company's significant concerns regarding, among other things, the timing of the delivery of the Notice of Adverse Impact, and the characterization of the cause of the adverse impact. The Company is continuing to evaluate all legal avenues available under the Sheep Creek Reforestation Stream. As a result, the Company no longer anticipates generating cash flow from the Sheep Creek Reforestation Stream, and its fair value is $nil as of March 31, 2025. Baccala Ranch Reforestation Stream: In March 2025, Mast delivered the Company a notice of termination of the Baccala Ranch Reforestation Stream and the Baccala Ranch project, thereby confirming it will forego any plantings. The Company had not advanced any funds for the Baccala project and the closing of the Baccala Ranch Reforestation Stream remained subject to customary closing conditions. Enfield Biochar Stream: In April 2025, Standard Biocarbon Corporation ('Standard Biocarbon') successfully completed an equity financing resulting in a change of control. In connection with the financing, a new CEO has been appointed to lead Standard Biocarbon through project commissioning. Strategy Carbon Streaming is currently focused on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal. During 2024, the Company underwent changes to the Board and management, including the termination of certain consulting contracts, which reduced ongoing cash expenditure and streamlined decision-making. The Company continues to focus on its previously announced evaluation of strategic alternatives with a focus on maximizing value for all shareholders. These alternatives could include acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities or continuing to operate as a public company. The Company's carbon credit streaming agreements are structured to retain a portion of the cash flows from carbon credit sales, with stream-specific retention varying. Project partners typically receive the balance through ongoing delivery payments under the terms of each agreement. Cash flows are subject to fluctuations based on realized carbon credit prices and agreement terms. As the Company continues to evaluate its strategic direction, it remains focused on optimizing portfolio economics and managing exposure to market volatility. Outlook Carbon Streaming continues to reposition itself for success and for maximizing shareholder value amid ongoing challenges. In May 2024, as part of its ongoing corporate restructuring first initiated in 2023, the Company announced changes to its senior management and Board after constructive discussions with certain shareholders. The Company continues to evaluate strategic alternatives for the business and remains focused on cash flow optimization through the reduction of operating expenses and a reassessment of its existing streams and royalties. Building on the previous measures implemented by the Company to reduce ongoing operating expenses, further steps have been taken in recent months, including significantly reducing employee headcount, renegotiating and amending vendor agreements to lower costs, eliminating cash-settled director's fees to the Board and terminating certain consulting contracts. As the Company's broader strategy continues to evolve, these recent steps are expected to result in significant reductions to annualized ongoing operating expenses when compared to 2024. While the Company aims to increase cash flow generation through the sale of carbon credits from several streaming agreements over the next year, there remains ongoing uncertainty regarding the evolving nature of carbon markets, including potential registry delays, project-specific issues, and methodology-related risks, in addition to impacts the industry may face as a result of general economic, political and regulatory conditions. In 2024, the Company recognized a decrease in the fair values of the Rimba Raya Stream, the Magdalena Bay Blue Carbon Stream, the Sustainable Community Stream, and the Sheep Creek Reforestation Stream to $nil as a result of the failure of the respective projects to meet their obligations under the stream agreements and ongoing legal disputes. The Company is actively pursuing all available legal remedies to protect its investments and enforce its contractual rights. Given the multiple ongoing litigation matters, the outcomes remain uncertain and could materially impact the Company's financial position and strategic direction. Please refer to the 'Legal Proceedings' section of the Company's most recently filed MD&A for further information. Given the evolving nature of carbon markets and ongoing legal considerations, Carbon Streaming is focussed on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal. For a comprehensive discussion of the risks, assumptions and uncertainties that could impact the Company's strategy and outlook, including without limitation, changes in demand for carbon credits and Indonesian developments described herein, investors are urged to review the section of the Company's most recently filed AIF entitled 'Risk Factors' a copy of which is available on SEDAR+ at About Carbon Streaming Carbon Streaming's focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential. ON BEHALF OF THE COMPANY:Marin Katusa, Chief Executive Officer Tel: 365.607.6095info@ Investor Relationsinvestors@ Mediamedia@ Non-IFRS Accounting Standards Measures Adjusted Net Loss and Adjusted Loss Per Share The term 'adjusted net loss' in this news release is not a standardized financial measure under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. These non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for measures of performance, cash flows and financial position as prepared in accordance with the IFRS Accounting Standards. Management believes that these non-IFRS Accounting Standards measures, together with performance measures and measures prepared in accordance with the IFRS Accounting Standards, provide useful information to investors and shareholders in assessing the Company's liquidity and overall performance. Adjusted net loss is calculated as net and comprehensive loss and adjusted for the revaluation of carbon credit streaming and royalty agreements, the revaluation of warrant liabilities, the impairment loss on early deposit interest receivable, the revaluation of derivative liabilities, the revaluation of the convertible note, the impairment loss on investment in associate, the gain on dissolution of associate, and the corporate restructuring which the Company views as having a significant non-cash or non-continuing impact on the Company's net and comprehensive loss calculation and per share amounts. Adjusted net loss is used by the Company to monitor its results from operations for the period. The following table reconciles net and comprehensive loss to adjusted net loss: Three months ended March 31, 2025 Three months ended March 31, 2024 Net loss and comprehensive loss $ (822 ) $ (35,771 ) Adjustment for non-continuing or non-cash settled items: Revaluation of carbon credit streaming and royalty agreements (49 ) 33,136 Revaluation of warrant liabilities (114 ) (334 ) Litigation and corporate restructuring 477 1,373 Adjusted net loss (508 ) (1,596 ) Loss per share (Basic and Diluted) ($/share) (0.02 ) (0.75 ) Adjusted net loss per share (Basic and Diluted) ($/share) (0.01 ) (0.03 ) Cautionary Statement Regarding Forward-Looking Information This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking information') within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking information, including, without limitation, statements regarding the anticipated impact of changes to the Company's Board and management; the impact of the Company's restructuring strategies, including evaluation of strategic alternatives; the ability of the Company to execute on expense reductions and savings from operating cost reduction measures; statements with respect to cash flow optimization and generation; its sales strategy; supporting the Company's carbon streaming and royalty partners; timing and the amount of future carbon credit generation and emission reductions and removals from the Company's existing streaming and royalty agreements; statements with respect to the projects in which the Company has streaming and royalty agreements in place; statements with respect to the Company's growth objectives and potential and its position in the voluntary carbon markets; statements with respect to execution of the Company's portfolio and partnership strategy; statements regarding the Company holding certain former executives, directors, consultants, and associated entities to account. statements with respect to the ongoing legal process to protect the Company's investment in the Rimba Raya project and to enforce its legal and contractual rights; and statements regarding the Company's intention to strictly enforce its legal and contractual rights under the Sustainable Community Stream and the Magdalena Bay Blue Carbon Stream and the Sheep Creek Reforestation Stream. When used in this news release, words such as 'estimates', 'expects', 'plans', 'anticipates', 'will', 'believes', 'intends' 'should', 'could', 'may' and other similar terminology are intended to identify such forward-looking information. This forward-looking information is based on the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Factors that could cause actual results or events to differ materially from current expectations include, among other things: general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and environmental, social and governance initiatives and subsequent changes in corporate or government policies or regulations and associated changes in demand for carbon credits; the Company's expectations and plans with respect to current litigation, arbitration and regulatory proceedings; limited operating history for the Company's current strategy; concentration risk; inaccurate estimates of project value, which may impact the ability of the Company to execute on its growth and diversification strategy; dependence upon key management; impact of corporate restructurings; the inability of the Company to optimize cash flows or sufficiently reduce operating expenses; reputational risk; risks arising from competition and future acquisition activities failure or timing delays for projects to be registered, validated and ultimately developed and for emission reductions or removals to be verified and carbon credits issued (and other risks associated with carbon credits standards and registries); foreign operations and political risks including actions by governmental authorities, including changes in or to government regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; due diligence risks, including failure of third parties' reviews, reports and projections to be accurate; dependence on project partners, operators and owners, including failure by such counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; failure of projects to generate carbon credits, or natural disasters such as flood or fire which could have a material adverse effect on the ability of any project to generate carbon credits; volatility in the market price of the Company's common shares or warrants; the effect that the issuance of additional securities by the Company could have on the market price of the Company's common shares or warrants; global health crises, such as pandemics and epidemics; and the other risks disclosed under the heading 'Risk Factors' and elsewhere in the Company's Annual Information Form dated as of March 31, 2025 filed on SEDAR+ at Any forward-looking information speaks only as of the date of this news release. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
