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Highlights

  • Q1 2025 revenue dropped to $5,067, a 94% decrease year-over-year.
  • Operating cash outflows reduced 7% to $620,097 compared to Q1 2024.
  • $50 million construction capital term sheet signed to support project development.

Charbone Hydrogen Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) released its financial and operational results for the first quarter ended March 31, 2025, reflecting ongoing project development and cost control efforts amid a decline in revenue.

Revenue for the quarter fell sharply to $5,067, down from $81,637 in Q1 2024. The decrease stems from an equipment failure at the Wolf River hydroelectric facility, acquired in late 2022. The company has indicated the failure is temporary, with repairs expected to enhance capacity.

Operating cash outflows improved modestly, with negative cash flows from operating activities declining 7% year-over-year to $620,097, reflecting ongoing efforts to control general and administrative expenses.

Charbone finalized a $310,000 share issuance for management debt settlement and recorded $293,270 from warrant exercises, a significant increase from $10,000 in the prior-year quarter.

Notably, the company announced a signed term sheet for a construction capital facility of up to US $50 million, aimed at supporting the buildout of its Sorel-Tracy facility. All permits for the site have been secured, and interconnection work with Hydro-Québec is progressing to maintain the 2025 production target.

In addition, Charbone executed an offtake agreement with a U.S.-based Tier One industrial gas producer. The agreement is intended to generate near-term revenue by diversifying the company’s customer base.

The company says it continues to operate with a lean administrative structure while advancing its green hydrogen production and distribution initiatives. Further details on project execution and timelines are expected as development activities progress throughout 2025.