• In April, the Company announced the positive results of laboratory tests for its green cement project with client Progressive Planet, whereby the cement additive product known as PozPyro achieved compressive strength tests at the 7-day mark that were 45% above the target for green cement additive products. The goal of the project is to create a replacement for fly ash, used in cement as an additive, but which is in diminishing supply due to the ongoing reduction in coal-fired power plants that create fly ash. PozPyro is made using quartz silica, an abundant material.
  
• In April, the Company announced a contract to supply a Spanish aerospace entity with titanium metal powder produced by the Company’s NexGen™ plasma atomization system. The client is engaged in the development of advanced aeronautics technologies for the European aerospace industry, and will use the titanium powder for additive manufacturing purposes. This contract represents the first contract under the Company’s new European distribution strategy that supplies the Company’s powder direct to customers rather than via third party distributors.
  
• In May, the Company announced additional positive results of laboratory tests for its green cement project with client Progressive Planet, whereby the cement additive product known as PozPyro achieved compressive strength tests at the 28-day mark that were up to 99.56% above the target for green cement additive products.
  
• In June, the Company announced that it had cleared the final requirement to becoming an approved supplier of its titanium metal powder to a global aerospace original equipment manufacturer. The Company’s “course” cut Ti64 metal powder had met all of the necessary requirements to be added to the client’s approved supplier list, and the formal process for adding the Company to the approved supplier list has begun. The Company has been engaged in an extensive qualification process with the client lasting several years leading to this announcement.
  
• In June, the company announced that it had received a second signed contract with a Spanish aerospace entity for titanium metal powder produced by the Company’s NexGen™ plasma atomization system. The client is engaged in the development of advanced aeronautics technologies for the European aerospace industry, and has indicated that the Company may qualify for a long-term contract following the successful completion of this contract.
  

Q2 2024 FINANCIAL HIGHLIGHTS

• In April, the company announced a block sale of HPQ Silicon Inc. shares to the Company’s President and CEO, Photis Peter Pascali, for an aggregate purchase price of $661,447.50, representing a per share price of $0.175. As noted in the news release by the Company’s CFO, Andre Mainella: “This sale will bring PyroGenesis an influx of cash on favourable terms.”
  
• In April, the Company announced receipt of two separate milestone payments totaling $970,000 for the sale of a plasma torch system to a U.S. corporation developing a system geared to destroy perfluoroalkyl and polyfluoroalkyl substances (“PFAS”).
  
• In May, the Company announced receipt of $1.5 million as settlement in legal proceedings between the Company’s wholly-owned subsidiary Pyro Green-Gas and certain related persons and Gas RNG Systems Inc. and certain persons. The settlement was concluded on a no-fault basis, with all parties to the proceedings providing full and final releases.
  
• In June, the Company announced receipt of $4.1 million under the Drosrite™ contract with Drosrite International and its client Radian Oil and Gas, as part of an outstanding receivable under the Company’s existing $25 million Drosrite™ contract.
  

Q2 2024 OPERATIONAL HIGHLIGHTS

• In April, the Company announced the appointment of Mr. Paul Rajchgod to the Board of Directors as an independent member of the board.
  
• In May, the Company announced that it notified HPQ Silicon Inc. of its intent to exercise its option to convert its annual royalty rights into a 50% ownership of HPQ Silica Polvere Inc, a wholly owned subsidiary of HPQ Silicon Inc. HPQ Polvere’s primary initiative is the Fumed Silica Reactor (FSR) project, for which the Company has been designing, engineering, and constructing a proprietary technology to convert quartz (SiO₂) into fumed silica (also known as pyrogenic silica) in a single and eco-friendly step while eliminating the use of harmful chemicals generated by conventional methods. The FSR, if successful, could provide a groundbreaking contribution to the repatriation of silica production to North America. Fumed silica is a moisture-absorbing white microstructure powder with high surface area and low bulk density. Used most often as a thickening agent, anti-caking agent, and stabilizer to improve the texture and consistency of products, the commercial applications of fumed silica can be found in many industries across thousands of product lines, including – but not limited to – personal care, powdered food, pharmaceuticals, agriculture (food & feed), adhesives, paints, sealants, construction, batteries and automotive.
  

FINANCIAL SUMMARY

1. Revenues

PyroGenesis recorded revenue of $3.9 million in the second quarter of 2024 (“Q2, 2024”), representing an increase of $0.9 million compared with $3.0 million recorded in the second quarter of 2023 (“Q2, 2023”). Revenue for the six-month period ended June 30, 2024, was $7.4 million, an increase of $1.8 million over revenue of $5.6 million in the same period of 2023.

Revenues recorded in the three and six-months ended June 30, 2024, were generated primarily from: