OSTROM CLIMATE REPORTS FISCAL Q2 2026 FINANCIAL STATEMENTS

OSTROM CLIMATE REPORTS FISCAL Q2 2026 FINANCIAL STATEMENTS

VANCOUVER, BC, Aug. 28, 2026 /CNW/ -- Ostrom Climate Solutions Inc. ("Ostrom" or the "Company") (TSXV: COO) (Frankfurt: 9EAA), a leading provider of carbon project development, net-zero climate solutions, and carbon credit marketing and trading, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter Financial Highlights:

• Q2 2026 revenue totaled $550,084, compared with $860,202 in Q2 2025. Revenue from the Company's Verified Emission Reduction (VER) trading business is inherently seasonal, with sales typically weighted toward the second half of the year ahead of the November 30 British Columbia Output-Based Pricing System (BC OBPS) compliance deadline; the quarter also reflected the concentration of high-margin deferred-revenue recognition in the first quarter of 2026 and the continued wind-down of legacy consulting mandates. On a year-to-date basis, revenue increased 54% to $2,293,826, from $1,494,166 in the first half of 2025.
• Gross profit for the quarter was $207,035, compared with $277,407 in Q2 2025, with gross margin improving to 38% from 32% on a higher margin realized on VER sales. For the six months, gross profit was $1,705,286 (H1 2025 - $598,102) at a 74% margin (H1 2025 - 40%), reflecting the high-margin recognition of deferred revenue through opportunistically timed, low-cost VER purchases and retirements in the first quarter.
• The Company reported a net loss of $578,918 for the quarter, a 15% improvement from the net loss of $683,108 in Q2 2025, as lower operating expenses more than offset the seasonally lower trading revenue. Adjusted net loss was $414,155, compared with $375,849 in Q2 2025, excluding share-based compensation, milestone-based consulting fees intended for share settlement and Smart-Rice Project R&D expenses. On a year-to-date basis, the Company returned to profitability with net income of $114,278, compared with a net loss of $1,399,465 in the first half of 2025.
• Operating expenses declined to $736,267 from $909,794 in Q2 2025, a reduction of $173,527, reflecting continued cost discipline, lower share-based payments, lower selling, general and administrative costs and reduced research and development spend as the Smart-Rice Project advanced toward verification. For the six months, operating expenses declined 20% to $1,497,284, from $1,869,268 in the first half of 2025.

Selected Financial Highlights

(Unaudited; expressed in Canadian dollars)

Operational and Strategic Developments:

• The Company continued to advance its flagship UPRIIS rice methane reduction project in the Philippines (the "Smart-Rice Project"), which progressed from field implementation toward verification during the period and is being positioned to deliver high-quality VERs for compliance markets such as CORSIA and Japan's Joint Compliance Market.
• The Company continued to advance its strategic pivot away from legacy consulting mandates toward the ownership and development of high-integrity, compliance-aligned carbon projects.
• Ostrom continued to pursue compliance-market opportunities, including BC OBPS eligible credits, while acknowledging the expected seasonality of VER trading revenue around the November 30 compliance deadline.
• The Company continued to advance its three core business lines: Carbon Project Development, Carbon Intelligence Services, and Net Zero Solutions.

• The Company repaid all remaining outstanding promissory notes and settled approximately $1.35 million of deferred revenue through VER retirements during the first half, while continuing to restructure its offsets and consulting business to align its cost base with forecasted billings and project milestones, and to focus on further debt reduction, disciplined working-capital management, balance-sheet improvement, and strategic financing and partnership opportunities.

Management Commentary:

"Our second-quarter results reflect the natural seasonality of our VER trading business, where sales are typically weighted toward the second half of the year ahead of the November 30 BC OBPS compliance deadline," said Navdeep Dhaliwal, Chairman and Chief Executive Officer of Ostrom. "Even so, we improved gross margin to 38%, reduced operating expenses by nearly 20% year over year, and narrowed our net loss for the quarter, all while continuing to invest in our owned project development pipeline."

"These results build on a strong first quarter that returned Ostrom to profitability on a year-to-date basis, with net income of $0.1 million compared with a net loss of $1.4 million a year ago. We remain focused on advancing our flagship Smart-Rice Project toward verification, positioning for compliance-market demand in the second half of the year, and maintaining the cost and working-capital discipline that has strengthened our financial position."

Liquidity and Outlook

The Company ended the second quarter with cash of $409,991, compared with $1,718,815 at December 31, 2025, primarily reflecting the settlement of approximately $1.35 million of deferred revenue through VER retirements and the repayment of all outstanding promissory notes during the first half. Current liabilities declined to $3,531,282 from $4,813,601 at December 31, 2025, and deferred revenue declined to $1,156,004 from $2,503,837 as revenue was recognized during the period.

Ostrom continues to manage liquidity through disciplined working-capital management, cost alignment, and the pursuit of equity financing and strategic partnership opportunities. The Company remains focused on trading opportunities in compliance markets, particularly ahead of the November 30 BC OBPS compliance deadline, while continuing to advance owned and partnered carbon project development opportunities intended to generate recurring, high-quality carbon credit supply over time.

About Ostrom Climate Solutions Inc.

Ostrom is one of North America's leading providers of carbon project development and management services, climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based out of British Columbia, Canada, the Ostrom team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with Indigenous stakeholders and has extensive on-ground experience in emerging markets.

Ostrom is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EAA).

Please visit us at www.ostromclimate.com.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.

Cautionary Statement Regarding Forward Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements." Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

SOURCE Ostrom Climate Solutions Inc.