ZEFI Zefiro Methane Corp

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 year ended June 30, 2024 (“FYE 2024”). For the FYE 2024, the Company generated record consolidated revenues of $32.8 million USD.

For the quarter ended June 30, 2024, the Company generated record consolidated revenues of $9.4 million USD, an approximate 10% increase from the quarter ending March 31, 2024. The increase in revenue resulted in a record gross profit of $2.9 million USD (approximate 31% gross profit margin). ZEFI generated adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) of $222,453 USD.

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

Zefiro Founder and Chief Executive Officer Talal Debs PhD commented, “Zefiro’s growth vector is expanding rapidly, and we have come a long way in the last year. Our corporate milestones, combined with our financial success, tell a story of momentum that is positioning the Company as a market leader driven by innovation, foresight, and impact. Our growing team brings the highest level of expertise to detecting and mitigating the large and often dangerous legacy problem of toxic methane emissions.”

In July 2024, Zefiro announced the appointment of Mohit Gupta as Chief Financial Officer. With over thirty years of experience in banking and energy trading, Gupta was one of the key founding members of J.P. Morgan’s Energy Trading business. He said, “Through Zefiro’s new partnerships and acquisitions, the Company now employs the most sophisticated capabilities in the industry and there is tremendous demand for it. Our forward momentum is accelerating swiftly on all fronts – acquisitions, client pipeline, talent acquisition – and we are having meaningful dialogues on global expansion. As an originator and distributor of quality carbon credits, we are positioned to capitalize on the growing need for offsets.”

Zefiro’s business strategy updates include:

1)   Originating and distributing quality carbon offsets from reducing methane emissions

Zefiro announced the presale of a portion of its carbon offset portfolio to EDF Trading, a leading player in the international wholesale energy market and part of EDF Group, a global leader in low-carbon energies. Zefiro has expanded its efforts to seal potentially hazardous oil and gas wells and these credits, verified by certified third-party auditors, will be generated from this initiative.

The Company is also actively exploring commercialization opportunities to address the needs of corporate players who have committed to a carbon-neutral footprint by utilizing high-quality offsets such as those originated by Zefiro.

2)   Expansion into new U.S. geographies

Zefiro expanded its oil and gas well-plugging operations into Oklahoma, which is expected to result in key growth within numerous markets critical to the environmental services industry, including Louisiana and other southern states, and the expansion of the Company’s portfolio of high-quality carbon offset products. ZEFI also continues to aggressively build out its business in Appalachia.

3)   Participation in the allocation of infrastructure funds from federal and state governments to plug orphan wells

Zefiro successfully completed Pennsylvania’s first-ever Infrastructure Investment and Jobs Act (“Bipartisan Infrastructure Law”)-funded oil well remediation project. The federal legislation allocated $4.7 billion USD to help address the nationwide proliferation of abandoned oil and gas wells, including granting over $300 million USD to the Commonwealth of Pennsylvania alone.

4)   Continuous evaluation of new products, offerings, and partnerships

ZEFI announced numerous commercial transactions to bolster the Company’s environmental services capabilities. This series of strategic transactions began with the acquisition of Appalachian Well Surveys, Inc. (“AWS”), a Cambridge, Ohio-based wireline company that has provided Zefiro the resources needed to expand their operational capacity within key markets and become the energy sector’s first comprehensive “end-of-life” provider for entities seeking to meet their well-retirement targets. ZEFI subsequently announced that the Company had purchased a minority ownership stake in Winterhawk Well Abandonment Ltd. (“Winterhawk”), a manufacturer of specialized downhole tools and technologies designed to expand casing in oil and gas wells. Specifically, Zefiro subsidiary Plants & Goodwin, Inc. (“P&G”) and Winterhawk entered into an exclusive patent license agreement for Winterhawk’s U.S. patents and the ability to sublicense Winterhawk Products to other entities operating in the United States.

In addition to these strategic investments in the Company’s well remediation services division, Zefiro also took steps to advance ZEFI’s accessibility throughout the global carbon offset marketplace. Specifically, Zefiro announced a strategic partnership with Fiùtur, a multi-party technology platform that provides digital measurement, verification, and Data Governance Framework services to environmental remediation companies. The agreement is aimed at expanding access to Zefiro products throughout the offering’s entire “lifecycle,” and stipulates that Zefiro will begin deploying its comprehensive methane leak abatement services through Fiùtur’s digital trust and verification platform during Q4 of 2024 and participate in Fiùtur’s Series A fundraising campaign.

5)   Global expansion and development of a pipeline of opportunities

Zefiro is pursuing global initiatives to market its carbon credit portfolio to multinational corporations and global market participants, including through high-quality carbon offset exchanges.

Notable Highlights:

• The Company generated record consolidated revenues and Adjusted EBITDA for the year ended June 30, 2024.
• On April 23, 2024, the Company launched its Initial Public Offering on the Cboe Canada Inc. stock exchange. Zefiro shares also began trading on the Frankfurt Stock Exchange (“FSE”) under the symbol “Y6B” on May 2, 2024.
• On July 19, 2024, the Company announced that its common shares were listed in the U.S. on the OTCQB – “The Venture Market” – under the symbol “ZEFIF”.

Zefiro Founder and CEO Talal Debs (Left) is pictured with Zefiro CFO Mohit Gupta (Right) in a video recently posted to the Company’s YouTube channel. The video can be viewed by clicking here.

Readers using news aggregation services may be unable to view the media above. Please access SEDAR+ or the Investors section of the Company’s website for a version of this press release containing all published media.

Second Quarter 2024 Financial Highlights (in USD):

For the three months ended			June 30, 2024	March 31, 2024
Revenue			$9,385,282	$8,539,165
Gross profit			$2,937,349	$2,657,229
Total operating expenses			($4,331,734)	($3,448,913)
Net loss and comprehensive loss for the period			($2,890,536)	($885,370)
Basic and diluted loss per share for the period			($0.04)	($0.01)
Weighted average shares outstanding			65,306,863	63,826,973
Net loss for the period			($2,916,263)	($949,890)
Add:
Amortization			1,061,866	900,516
Interest expense			391,539	396,413
Interest Income			(4,176)	-
Share-based compensation			142,405	7,682
Gain on debt modification			30,559	(73,737)
Settlement of convertible promissory note receivable			87,500	-
Loss on sale of equipment			(38,706)	54,884
Change in fair value of investments			-	7,444
Income tax recovery			566,638	(116,198)
Listing Fees			415,379	-
Foreign exchange gain (loss)			37,995	-
One-time transaction expenses			729,789	280,187
Adjustment for non-controlling interest			(281,509)	(198,423)
Adjusted EBITDA1			$222,453	$308,877
As at	June 30, 2024			March 31, 2024
Cash	$981,746			$372,564
Current assets	$10,223,370			$8,469,797
Total assets	$28,971,195			$27,223,514
Total liabilities	$20,288,328			$18,258,775
Total equity	$8,682,867			$8,964,739

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.

On behalf of the Board of Directors of the Company,

ZEFIRO METHANE CORP.

“Talal Debs”

Talal Debs, Founder & CEO

_________________________

1 See Non-IFRS Financial Measures

For further information, please contact:

Zefiro Investor Relations1 (800) 274-ZEFI (274-9334)investor@zefiromethane.com

For media inquiries, please contact:

Rich Myers – Profile Advisors (New York)media@zefiromethane.com+1 (347) 774-1125

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “seeks”, “believes”, “plans”, “expects”, “intends”, “estimates”, “anticipates” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the Company’s intention to reduce emissions from end-of-life oil and gas wells and eliminate methane gas; the Company’s partnerships with industry operators, state agencies, and federal governments; the Company’s expectations for continued increases in revenues and EBITDA growth as a result of these partnerships; the Company’s intentions to build out its presence in the United States; the anticipated federal funding for orphaned well site plugging, remediation and restoring activities; the Company’s expectations to become a growing environmental services company; the Company’s ability to provide institutional and retail investors alike with the opportunity to join the Active Sustainability movement; the Company’s ability to generate long-term economic, environmental, and social returns; and other statements regarding the Company’s business and the industry In which the Company operates. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: (i) adverse general market and economic conditions; (ii) changes to and price and volume volatility in the carbon market; (iii) changes to the regulatory landscape and global policies applicable to the Company's business; (iv) failure to obtain all necessary regulatory approvals; and (v) other risk factors set forth in the Company’s Prospectus dated April 8, 2024 under the heading “Risk Factors”. The Company operates in a rapidly evolving environment where technologies are in the early stage of adoption. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to, the assumption that general business and economic conditions will not change in a materially adverse manner. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-IFRS Financial Measures

Zefiro has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including: (a) Adjusted EBITDA. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.

(a)   Adjusted EBITDA

Adjusted EBITDA is a non-IFRS measure which excludes from net income (loss): amortization, interest expense, share-based compensation, gains or losses on debt modification, gains or losses on sale of equipment, changes in fair value of investments held, income tax expense or recovery, non-recurring expenses related to the Company’s IPO transaction, and net income (loss) attributable to the Company’s non-controlling interest in its subsidiaries. Management uses Adjusted EBITDA to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company presents Adjusted EBITDA as it believes that certain investors use this information to evaluate the Company’s performance in relation to its peers who present on a similar basis (though Adjusted EBITDA does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers). However, Adjusted EBITDA does not represent and should not be considered an alternative to net income (loss) or cash flow provided by operating activities as determined under IFRS.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/485c53ef-3b95-4565-98f6-cd7d04b3a44c