Zefiro Methane Corp. Announces Quarterly Earnings with Revenue of USD $6.9 Million

FORT LAUDERDALE, Fla., May 14, 2025 (GLOBE NEWSWIRE) -- ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (Frankfurt: Y6B) (OTCQB US: ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal quarter that ended March 31, 2025 ("fiscal quarter 3").

Zefiro also today announced that it has received a Notice of Failure to Pay in connection with a $2 million promissory note ("Note"), created in conjunction with the May 12, 2023, acquisition of Plants and Goodwin, "P&G".

Zefiro is evaluating all available legal and strategic options in consultation with its legal advisors, including evaluating all documents associated with the Note. Zefiro intends to pursue all appropriate options to protect its interests and the interests of its stakeholders. The notice is subject to customary cure periods; thus at this time it does not constitute an Event of Default and thus places no restrictions on Zefiro's financial flexibility.

For fiscal quarter 3:

   -- Zefiro generated revenue of $6.9 million USD. While this figure can be 
      largely attributed to the widescale economic and federal policy 
      volatility that caused slowdowns across multiple sectors for companies of 
      all sizes, Zefiro's April and May-to-date commercial operations, 
      including expanding its project portfolio in Ohio and Pennsylvania and 
      looming entries into Texas, Oklahoma and Louisiana, indicates a more 
      settled and active marketplace for the remainder of 2025. 
 
   -- The Company yielded a gross profit of $1.0 million USD in fiscal quarter 
      3, which represents a 73.7% increase from the fiscal quarter that ended 
      on December 31, 2024. 
 
   -- Revenue for the first three quarters of fiscal year 2025 increased 
      approximately 5% to $24.4 million USD as compared to $23.4 million USD 
      for the comparable 2024 period, exhibiting continued growth in core 
      operations. 

Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.

Zefiro's business strategy updates include:

1) Expanding its operational footprint in regions of the U.S. that contain high numbers of orphaned and abandoned oil and gas wells

Zefiro has continued to increase the number of ongoing and completed projects in numerous key marketplaces, including the Company's efforts to maximize its position in Ohio and Pennsylvania. Specifically, Zefiro subsidiary Plants & Goodwin ("P&G) began work this past quarter on a number of new oil and gas well remediation projects for the Ohio Department of Natural Resources ("ODNR"), a public agency that has access to approximately $78 million in funding to plug the over 36,000 known wells that the agency notes are located throughout the state. At current rates, this pool of resources should ensure well remediation project flow in the state for at least the next four years.

In addition to Zefiro's work on active ODNR projects, the Company also recently announced that the agency will allow Zefiro's team of environmental remediation experts to review a collection of over 1,000 oil and gas wells across the state to determine how many qualify for the Company's recently announced "Loyal to the Land" initiative. Specifically, landowners with qualifying, unplugged oil and gas wells, which are proven threats to both resident safety and real estate values, on their properties will be able to contact Zefiro to determine if the Company can help remediate their sites at no-cost.

Zefiro also announced this past March that P&G successfully completed a package of Pennsylvania Department of Environmental Protection-funded projects. This tranche of projects included one initiative that required Zefiro's environmental remediation specialists to clean-up a site that was rendering a source of drinking water in Clarion County, PA unusable. Furthermore, Zefiro and Pompano Resource Transformation ("Pompano"), an Oklahoma-based hydrocarbons production company, this week agreed to a long-term contractual relationship in which Zefiro will provide Pompano well retirement services. Specifically, the transaction is designed to accelerate well-plugging activities and reduce long-term environmental liabilities on Pompano's oil fields located across the southwestern United States, including in Texas and Oklahoma.

These developments helped solidify Zefiro's capacity to operate in six states, up from four one year ago, and represents the Company's ambitions to expand and fortify operations across the southcentral U.S., including Texas, Louisiana, and Oklahoma, by the end of 2025.

2) Certifying high-quality carbon offsets to prepare product deliveries to customers

Throughout fiscal quarter 3, Zefiro has made major strides toward delivering the Company's inaugural tranche of high-quality carbon credits to customers throughout the international marketplace, including Mercuria Energy America, LLC and EDF Trading. The demand for these offset products continues to rise as Fortune 1000 companies, energy conglomerates, and technology firms seek to reduce their carbon footprint while investing in operations that require elevated levels of energy production, including data center and various artificial intelligence initiatives. Zefiro's work to gain all necessary certifications from the ACRcarbon ("ACR") registry has ensured that the Company will begin delivering these products to existing customers in the coming weeks and be best positioned to meet this historic market demand in the years ahead.

As part of this registration process, Zefiro this past March announced that it had engaged TÜV SÜD America ("TÜV SÜD"), a technical inspection association that tests, inspects, and determines certifications of technical systems and facilities, as a third-party validation and verification body ("VVB") for the Company's projects listed on the ACR. This agreement follows Zefiro's inaugural project listing on the ACR registry, which served as an important step toward monetizing carbon offsets originated by the Company through its portfolio of environmental remediation projects in the United States.

3) Implementation of innovative technologies to drive commercial expansion and efficiency

To accelerate various commercial initiatives, Zefiro's senior leadership team completed a series of transactions and agreements to deploy revolutionary technologies throughout the Company's operational structure. Specifically, Zefiro worked with industry partners to introduce artificial intelligence-enabled data analytics throughout the Company's operations that are estimated to improve Zefiro's batch efficiency gain, a measurement of the monetary resources allocated per ton of methane gas captured, by approximately 50 percent. Additionally, Zefiro announced the launch of the Zefiro Lifecycle Solution, a data capture and workflow management platform built to help bolster the Company's ability to identify and monitor projects. Furthermore, X Machina Sustainable Technologies ("XMST"), a major sponsor entity of the Company, filed a provisional patent central to forming an industry-leading data portal of orphaned oil and gas wells across North America. This will provide Zefiro's team of well remediation specialists access to a geographical interface that incorporates the automated methane detection figures, including proprietary field quantification data, needed to train an AI model capable of identifying leaking orphaned oil and gas wells at no cost to the Company.

Third Fiscal Quarter Financial Highlights (in USD):

 
                                            March 31,     March 31, 
For the three months ended                   2025          2024 
------------------------------------------  ------------  -------------- 
Revenue                                       $6,947,691    $8,539,165 
Gross profit                                  $1,011,445    $2,652,422 
Total operating expenses                    ($4,377,816)  ($3,444,106) 
Net loss and comprehensive loss for the 
 period                                     ($3,488,208)    ($885,370) 
Basic and diluted loss per share for the 
 period                                          ($0.05)       ($0.01) 
                                              73,924,956    63,826,973 
Weighted average shares outstanding 
Net loss for the period                     ($3,462,056)    ($949,890) 
Add: 
   Amortization                                  944,898       900,516 
   Share-based compensation                      501,629         7,682 
   Maintenance Capex                            (33,569)     (346,201) 
Adjusted Net Income(1)                       (2,049,098)     (387,893) 
 
                                               March 31,        June 30, 
As at                                               2025            2024 
------------------------------------------  ------------  -------------- 
Cash                                            $245,334      $981,746 
Current assets                                $4,587,528   $10,223,370 
Total assets                                 $22,109,207   $28,971,195 
Total liabilities                            $19,640,074   $20,288,328 
Total equity                                  $2,469,133    $8,682,867 
 

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.

(MORE TO FOLLOW) Dow Jones Newswires

May 14, 2025 10:42 ET (14:42 GMT)