The following is a summary of the NanoXplore Inc. (NNXPF) Q4 2024 Earnings Call Transcript:

Financial Performance:

• NanoXplore reported Q4 revenue of $38.1 million, a 14% increase year-over-year, driven by higher product sales volumes and progress revenue recognition on new tooling.

• Record gross margin reached 23.6%, up 270 basis points year-over-year, due to improved productivity and manufacturing efficiencies.

• Adjusted EBITDA for the quarter was $2.6 million, with Advanced Materials segment reporting $3.3 million and Battery Cell segment a loss of $820,000.

Business Progress:

• Expansion of graphene-enhanced SMC capacity is ongoing.

• The company has booked several contracts supporting investments in the United States and expects to complete a new facility construction near Montreal soon.

• CapEx spending is anticipated between $3 million to $5 million over the next three quarters to support U.S. expansion plans.

Opportunities:

• High demand in graphene-enhanced composite products, with almost fully utilized current capacity, is driving investments in new equipment.

• Development of CSPG (coated spherical purified graphite) and partnerships supporting CSPG plant demonstrate growth potential, especially with alignment to IRA compliance by 2026.

Risks:

• VoltaXplore project postponed due to unfavorable environment in the EV battery market, but costs are mitigated by focusing on silicon graphene applications supported by government grants.

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