Ivanhoe Electric Inc. 10-Q

Item 1. Financial Statements. IVANHOE ELECTRIC INC. Condensed Interim Consolidated Balance Sheets (Unaudited) (Expressed in thousands of U.S. dollars) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 98,163 $ 40,971 Restricted cash 2,433 4,338 Accounts and other receivables 11,373 21,569 Prepaid expenses and deposits 2,286 2,408 114,255 69,286 Non-current assets: Investments subject to significant influence 59,205 64,887 Other investments 1,847 1,745 Exploration properties 225,876 225,876 Property, plant and equipment 10,920 9,667 Other non-current assets 2,285 3,471 Total assets $ 414,388 $ 374,932 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities $ 10,773 $ 11,121 Note payable, current 13,169 12,409 Deferred exploration liability 2,204 4,101 Due to related party 10,238 5,001 Lease liabilities, current 797 784 37,181 33,416 Non-current liabilities: Note payable 24,163 24,163 Convertible debt 31,602 30,942 Deferred income taxes 4,258 4,049 Lease liabilities, net of current portion 1,455 1,561 Other non-current liabilities 383 370 Total liabilities 99,042 94,501 Commitments and contingencies (Note 16) Equity: Common stock, par value $ 0.0001 ; 700,000,000 shares authorized; 132.6 million shares issued and outstanding as of March 31, 2025 (December 31, 2024 - 700,000,000 authorized; 120.6 million issued and outstanding) 13 12 Additional paid-in capital 870,864 802,032 Accumulated deficit ( 560,642 ) ( 530,127 ) Accumulated other comprehensive income ( 3,264 ) ( 3,276 ) Equity attributable to common stockholders 306,971 268,641 Non-controlling interests 8,375 11,790 Total equity 315,346 280,431 Total liabilities and equity $ 414,388 $ 374,932 3 Table of Contents IVANHOE ELECTRIC INC. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited) (Expressed in thousands of U.S. dollars, except for share and per share amounts) Three Months Ended March 31, 2025 2024 Revenue $ 735 $ 360 Cost of sales ( 293 ) ( 100 ) Gross profit 442 260 Operating expenses: Exploration expenses 15,785 43,643 General and administrative expenses 11,586 12,601 Research and development expenses 52 810 Selling and marketing expenses 23 87 Loss from operations 27,004 56,881 Other expenses (income): Interest expense (income), net 1,530 ( 35 ) Foreign exchange loss (gain) 12 ( 5 ) Share of loss of equity method investees 4,989 3,012 Other expense, net 606 268 Loss before income taxes 34,141 60,121 Income tax recovery — ( 26 ) Net loss 34,141 60,095 Less loss attributable to non-controlling interests ( 3,626 ) ( 4,584 ) Net loss attributable to common stockholders or parent 30,515 55,511 Net loss 34,141 60,095 Other comprehensive (income) loss, net of tax: Foreign currency translation adjustments ( 12 ) 392 Other comprehensive (income) loss ( 12 ) 392 Comprehensive loss $ 34,129 $ 60,487 Comprehensive loss attributable to: Common stockholders or parent 30,503 55,761 Non-controlling interests 3,626 4,726 $ 34,129 $ 60,487 Net loss per share attributable to common stockholders Basic and diluted $ 0.24 $ 0.46 Weighted-average common shares outstanding Basic and diluted 126,664,363 120,246,430 4 Table of Contents IVANHOE ELECTRIC INC. Condensed Interim Consolidated Statements of Changes in Equity (Unaudited) (Expressed in thousands of U.S. dollars, except share amounts) Three months ended March 31, 2025 and 2024 Additional paid-in capital Accumulated deficit Accumulated other comprehensive income (loss) Non-controlling interests Total Common Stock Shares Amount Balance at January 1, 2024 120,025,264 $ 12 $ 777,816 $ ( 401,504 ) $ ( 2,073 ) $ 2,030 $ 376,281 Net loss — — — ( 55,511 ) — ( 4,584 ) ( 60,095 ) Other comprehensive loss — — — — ( 250 ) ( 142 ) ( 392 ) Issuance of common stock; Kaizen arrangement 116,413 — 952 — — — 952 Issuance of common stock; earn-in payment 12,765 — 95 — — — 95 Settlement of restricted share units 150,000 — — — — — — Settlement of deferred share units 1,972 — — — — — — Share-based compensation — — 3,315 — — 30 3,345 Non-controlling interests investment in subsidiary — — 9,372 — — 20,628 30,000 Other changes in non-controlling interests — — ( 726 ) — — 272 ( 454 ) Balance at March 31, 2024 120,306,414 $ 12 $ 790,824 $ ( 457,015 ) $ ( 2,323 ) $ 18,234 $ 349,732 Balance at January 1, 2025 120,612,112 $ 12 $ 802,032 $ ( 530,127 ) $ ( 3,276 ) $ 11,790 $ 280,431 Net loss — — — ( 30,515 ) — ( 3,626 ) ( 34,141 ) Other comprehensive income — — — — 12 — 12 Issuance of common stock; public offering, net of issuance costs 11,794,872 1 53,380 — — — 53,381 Issuance of warrants, public offering — — 12,470 — — — 12,470 Settlement of restricted share units 150,000 — — — — — — Stock options exercised 33,334 — 83 — — — 83 Share-based compensation — — 2,934 — — 39 2,973 Other changes in non-controlling interests — — ( 35 ) — — 172 137 Balance at March 31, 2025 132,590,318 $ 13 $ 870,864 $ ( 560,642 ) $ ( 3,264 ) $ 8,375 $ 315,346 5 Table of Contents IVANHOE ELECTRIC INC. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (Expressed in thousands of U.S. dollars) Three months ended March 31, 2025 and 2024 2025 2024 Operating activities Net loss $ ( 34,141 ) $ ( 60,095 ) Adjustments to reconcile net loss to cash provided by (used in) operating activities: Depreciation and amortization 622 622 Share-based compensation 2,973 3,345 Non-cash exploration and research and development expense — 491 Unrealized foreign exchange gain 22 ( 3 ) Interest expense 1,657 1,816 Share of loss of equity method investees 4,989 3,012 Other 587 621 Changes in other operating assets and liabilities: Trade accounts receivable 10,196 ( 896 ) Inventory — ( 309 ) Operating lease liabilities ( 194 ) ( 350 ) Accounts payable and accrued liabilities ( 998 ) 1,435 Deferred exploration liability ( 1,897 ) — Other operating assets and liabilities 409 352 Net cash used in operating activities ( 15,775 ) ( 49,959 ) Investing activities Purchase of mineral interests — ( 300 ) Purchase of property, plant and equipment and intangible assets ( 2 ) ( 672 ) Purchase of investments subject to significant influence — ( 722 ) Cash acquired on acquisition of subsidiary — 227 Net cash used in investing activities ( 2 ) ( 1,467 ) Financing activities Net proceeds from public offering 65,590 — Proceeds from related party loan 5,000 — Non-controlling interests investment in subsidiary 142 26,000 Proceeds from exercise of stock options 83 — Net cash provided by financing activities 70,815 26,000 Effect of foreign exchange rate changes on cash and cash equivalents 249 ( 256 ) Increase (decrease) in cash and cash equivalents and restricted cash 55,287 ( 25,682 ) Cash, cash equivalents and restricted cash, beginning of the period 45,309 205,043 Cash, cash equivalents and restricted cash, end of the period 100,596 179,361 Restricted cash, end of the period 2,433 — Cash and cash equivalents, end of the period $ 98,163 $ 179,361 Supplemental disclosure of non-cash investing and financing activities Issuance of common stock $ — $ 1,047 Non-controlling interests investment in subsidiary $ — $ 4,000 Settlement of related party loan $ — $ ( 4,000 ) 6 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) 1. Background and basis of preparation: Ivanhoe Electric Inc. (“Ivanhoe Electric” or “the Company”) is a United States company that combines advanced mineral exploration technologies with electric metals exploration projects predominantly located in the United States. The Company’s mineral exploration efforts focus on copper as well as other metals including nickel, vanadium, cobalt, platinum group elements, gold and silver. The Company’s portfolio of electric metals exploration projects include the Santa Cruz Project in Arizona, as well as other exploration projects in the United States. In addition to mineral projects in the United States, the Company also holds direct and indirect ownership interests, and in some cases controlling financial interests, in other non-U.S. mineral projects, and in proprietary mineral exploration and minerals-based technologies. The Company holds a 50 % interest in a joint venture with Saudi Arabian Mining Company Ma’aden (“Ma’aden”) to explore prospective land in Saudi Arabia. The Company conducts the following business activities through certain subsidiaries: • VRB Energy Inc. (“VRB”) develops, manufactures and installs vanadium flow batteries for grid-scale energy storage primarily in the United States. Ivanhoe Electric had an ownership interest in VRB of 90.0 % as at March 31, 2025 (December 31, 2024 — 90.0 %). VRB also holds a 49 % interest in VRB Energy System (Beijing) Co., Ltd. (“VRB China”) which operates in the same industry in China. • Computational Geosciences Inc. (“CGI”), provides data analytics, geophysical modeling, software licensing and artificial intelligence services for the mineral, oil & gas and water exploration industries. Ivanhoe Electric had an ownership interest in CGI of 94.3 % as at March 31, 2025 (December 31, 2024 — 94.3 %). • Cordoba Minerals Corp. (“Cordoba”) holds the San Matias copper-gold-silver project in northern Colombia. Ivanhoe Electric had an ownership interest in Cordoba of 62.3 % as at March 31, 2025 (December 31, 2024 — 62.5 %). The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States. Therefore, this information should be read in conjunction with the Company's consolidated financial statements and notes contained on its Form 10-K for the year ended December 31, 2024. The information furnished herein reflects all normal recurring entries, that are in the opinion of management, necessary for a fair statement of the results for the interim periods reported. Operating results for the three month period ended March 31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The condensed interim consolidated financial statements have been prepared on a going concern basis, which presumes the realization of assets and satisfaction of liabilities in the normal course of business. References to “$” refer to United States dollars and “Cdn$” to Canadian dollars. 2. Significant accounting policies: The Company discloses in its consolidated financial statements for the year ended December 31, 2024, those accounting policies that it considers significant in determining its results of operations and financial position. There have been no material changes to, or in the application of, the accounting policies previously identified and described in the Company’s consolidated financial statements for the year ended December 31, 2024. Income taxes: In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update was issued to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted ASU 2023-09 on January 1, 2025 and will be required to disclose specific categories in the rate reconciliation if quantitative thresholds are met. The amount of income taxes paid, if any, will be required to be disaggregated by federal, state and foreign taxes. 7 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) Recent accounting pronouncements not yet adopted: In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update was issued to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The Company is required to adopt ASU 2024-03 on January 1, 2027 and is currently evaluating the expected impact on the consolidated financial statements. 3. Use of estimates: The preparation of consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, the related disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2024. 4. Cash and cash equivalents: Of the total cash and cash equivalents at March 31, 2025 and December 31, 2024, $ 19.3 million and $ 11.2 million, respectively, was not available for the general corporate purposes of the Company as it was held by non-wholly-owned subsidiaries. 5. Accounts receivable: March 31, 2025 December 31, 2024 Trade accounts receivable $ 111 $ 762 Other receivables (Note a) 11,262 20,807 $ 11,373 $ 21,569 (a) As at December 31, 2024, VRB was owed $ 20.0 million from its sale of 51 % of the shares in VRB China to China Energy Storage Industry Co., Ltd. (“Red Sun”). The amount is payable in two tranches. On October 28, 2024, $ 10.0 million was deposited to an account in China jointly controlled by Red Sun and VRB. Following receipt of several regulatory approvals required to transfer the funds outside of China, on February 11, 2025, VRB received the first tranche payment with the balance being due in June 2025. 6. Investments subject to significant influence: The Company’s principal investments subject to significant influence are its investment in Ma'aden Ivanhoe Electric Exploration and Development Limited Company ("Ma'aden Joint Venture") and VRB China. Others include its investments in Sama Resources Inc. (“Sama”). 8 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) Equity Method Carried at fair value Ma'aden Joint Venture VRB China Other Sama Total Balance at December 31, 2024 20,389 40,600 769 3,129 64,887 Change in fair value — — — ( 693 ) ( 693 ) Share of loss ( 3,664 ) ( 1,325 ) — — ( 4,989 ) Balance at March 31, 2025 $ 16,725 $ 39,275 $ 769 $ 2,436 $ 59,205 7. Exploration properties: Santa Cruz Tintic San Matias Other Total Balance at December 31, 2024 $ 176,792 $ 30,703 $ 15,315 $ 3,066 $ 225,876 Balance at March 31, 2025 $ 176,792 $ 30,703 $ 15,315 $ 3,066 $ 225,876 8. Note payable: Note payable Balance at December 31, 2024 $ 36,572 Interest expense 760 Balance at March 31, 2025 $ 37,332 Current portion 13,169 Non-current portion 24,163 Balance at March 31, 2025 $ 37,332 In May 2023, the Company issued a secured promissory note in the amount of $ 82.6 million as part of a land acquisition at its Santa Cruz project. The promissory note includes an annual interest rate of prime plus 1 % and is to be paid in installments, as follows: • $ 34.3 million, plus accrued interest, paid in November 2023; • four equal principal payments of $ 12.1 million on the first, second, third and fourth anniversaries of the November 2023 payment, plus applicable accrued interest. A payment of $ 12.1 million plus accrued interest was paid in November 2024. 9 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) 9. Convertible debt: VRB Convertible Bond Balance at December 31, 2024 $ 30,942 Interest expense 660 Balance at March 31, 2025 $ 31,602 On July 8, 2021, VRB issued a convertible bond for gross proceeds of $ 24.0 million. The bond has a five-year term and interest accrues at a rate of 8 % per annum. Prior to the maturity date of July 8, 2026, the convertible bond is automatically converted into equity of VRB upon an equity financing or sale event, at a price per share equal to the lower of: • the transaction price of the equity financing or sale event; and • the valuation cap price of $ 158.0 million divided by the total shares outstanding at the time of the event. If no equity financing or sale event occurs, VRB must repay the outstanding principal and interest on maturity. The Company has accounted for the convertible bond, including its embedded features, as a debt instrument accounted at amortized cost, as it was determined the embedded features are not required to be bifurcated. 10. Equity: (a) Common stock transactions: On February 14, 2025, Ivanhoe Electric completed a public offering where it issued 11,794,872 units (the “Units”) at a price of $ 5.85 per Unit for gross proceeds of $ 69.0 million. Each Unit consists of (i) one share of Ivanhoe Electric’s common stock and (ii) one accompanying warrant (the "Warrants"). Each whole Warrant is exercisable to purchase one share of Ivanhoe Electric’s common stock at a price of $ 7.00 per share, exercisable until February 17, 2026. Directly attributable issuance costs of $ 3.1 million incurred in conjunction with the public offering were recorded as a reduction in paid in capital. (b) Stock-based compensation: Stock-based payment compensation was allocated to operations as follows: Three Months Ended March 31, 2025 2024 General and administrative expenses $ 2,560 $ 2,690 Exploration expenses 413 655 $ 2,973 $ 3,345 (i) Stock-settled restricted stock units ("RSU’s"): On March 6, 2025, the Company granted 776,557 stock settled RSU's to certain officers and employees of the Company. The RSU’s vest in three equal tranches beginning one year from the grant date. The fair value of the stock-settled RSU’s is amortized over the vesting period. The total grant date fair value of these RSU's was $ 4.5 million based on a grant date share price of $ 5.84 per share. (ii) Performance share units ("PSU's"): 10 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) On March 6, 2025, the Company granted PSU's to certain officers and employees of the Company. The PSU's vest on December 31, 2027, with the number of units to vest determined by Ivanhoe Electric’s share price performance against constituents from a Base Metals Index. The number of units to vest ranges between zero times to two times the target number of PSU's. The total target number of PSU's is 714,822 , which is one times the target. The grant date fair value of these PSU's was $ 5.1 million. Monte Carlo valuation methodology was used to determine the fair value of the PSU's, which required the input of the following assumptions. Grant date: March 6, 2025 Expected volatility 63.4 % Expected life of PSU's (in years) 2.8 USA risk-free interest rate 4.0 % Canada risk-free interest rate 2.6 % Expected dividend rate 0 % Weighted average grant-date fair value (per unit) $ 7.07 Expected volatility is based on the historical volatility of the Company's share price over a term commensurate with the remaining life of the PSU's. The USA risk-free interest rate was based on the yield observed on the US Dollar treasury curve as at the grant date, while the Canadian risk-free rate was based on the yield observed on the Canadian dollar government bond curve as at the grant date. 11. Revenue: The Company recognized revenue from the following sources: Three months ended March 31: Revenue type 2025 2024 Data processing services $ 735 $ 360 Total $ 735 $ 360 12. Exploration expense: Three months ended March 31: Project 2025 2024 Santa Cruz, USA $ 6,504 $ 27,837 San Matias, Colombia (Cordoba) 3,336 3,518 Hog Heaven, USA 873 3,307 Tintic, USA 712 3,520 Project generation and other 4,360 5,461 Total $ 15,785 $ 43,643 11 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) 13. Related party transactions: Related parties include entities with common direct or indirect shareholders and/or directors. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. The following table summarizes transactions between the Company and significant related parties. Balance outstanding as at Transactions for the three months ended March 31, March 31, 2025 December 31, 2024 2025 2024 Total Expenses Global Mining (Note a) 530 643 771 1,363 Ivanhoe Capital Aviation (Note b) — 83 250 250 I-Pulse (Note c) 1,835 — 617 396 JCHX Mining Management Co., Ltd (Note e) 1,500 1,500 — — Total 3,865 2,226 1,638 2,009 Revenue and accounts receivable Ma'aden Joint Venture (Note d) 200 300 600 300 Advances Global Mining (Note a) 545 831 — — Ma'aden Joint Venture (Note d) 418 176 — — Deposit I-Pulse (Note c) 1,701 2,593 — — Loan JCHX Mining Management Co., Ltd (Note e) 10,238 5,001 — — Transactions for the three months ended March 31, 2025 2024 Expense classification Exploration expenses 906 419 General and administrative expenses 732 1,307 Research and development expenses — 283 1,638 2,009 (a) Global Mining Management Corp. (“Global Mining”) is a private company based in Vancouver, Canada, that provides administration, accounting, and other office services to the Company on a cost-recovery basis. The Company held 7.1 % of Global Mining’s outstanding common shares at March 31, 2025 (December 31, 2024 — 7.1 %). (b) Ivanhoe Capital Aviation (“ICA”) is an entity beneficially owned by the Company’s Executive Chairman. ICA provides use of its aircraft to the Company. (c) I-Pulse is a shareholder of the Company. On October 24, 2022, the Company entered into an agreement with I-Pulse, to purchase six Typhoon™ transmitters to be delivered in stages over approximately three years . The total purchase price for the six Typhoon™ transmitters is $ 12.4 million, which includes research and development costs of $ 2.8 million. The agreement also includes annual maintenance costs of $ 1.7 million. In October 2022, the Company made deposit payments totaling $ 7.1 million, representing 50 % of each 12 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) component of the agreement. The remaining payments will be made as each Typhoon™ transmitter system is delivered. As at March 31, 2025, the Company has received four of the Typhoon™ transmitters that are deliverable under the agreement. (d) The Company's majority owned subsidiary, CGI, provides geophysical data processing services to the Ma'aden joint venture and recognized revenue totaling $ 0.6 million. At March 31, 2025 the Ma’aden Joint Venture owes the Company $ 0.4 million for costs that the Company incurred on behalf of the Ma’aden Joint Venture related to exploration work in Saudi Arabia. (e) JCHX Mining Management Co., Ltd (“JCHX") held 19.7 % of Cordoba’s issued and outstanding common stock as at March 31, 2025 (December 31, 2024 - 19.7 %). In December 2024, Cordoba obtained a $ 10.0 million bridge loan from JCHX, of which $ 5.0 million was received in December 2024 and $ 5.0 million in January 2025. The loan bears simple interest at 10 % per annum for the first six months of the agreement, and 12 % per annum thereafter. The loan is payable on the maturity date, which is the earlier of 36 months after the date of the loan agreements or the date the third installment of $ 20.0 million becomes payable by JCHX under the strategic arrangement with Cordoba. 14. Fair value measurement: The following table provides the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the combined balance sheets: March 31, 2025 December 31, 2024 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets: Investments subject to significant influence 2,436 — — 3,129 — — Other investments 1,094 753 — 995 750 — Total financial assets $ 3,530 $ 753 $ — $ 4,124 $ 750 $ — Financial liabilities: Total financial liabilities $ — $ — $ — $ — $ — $ — There were no movements in level three instruments for the three months ended March 31, 2025. 15. Segment reporting: The Company’s President & Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) of the Company. The CODM evaluates how the Company allocates resources, assesses performance and makes strategic and operational decisions. Based upon such evaluation, the Company has determined that it has four reportable segments. The Company’s reportable segments are the Santa Cruz Project, critical metals, data processing and energy storage. The Santa Cruz Project and critical metals segments are focused on mineral project exploration and development with a focus on identifying and developing mineral projects, and ultimately mines, associated with the metals necessary for electrification. The Santa Cruz project is at a more advanced stage relative to most of the Company’s other mineral exploration projects and its discrete financial information and operating results are regularly reviewed by the CODM in order to make decisions about resource allocation and assess performance. The data processing segment provides data analytics, geophysical modeling and artificial intelligence services for the mineral, oil & gas and water exploration industries. The energy storage segment develops, manufactures and installs vanadium flow batteries for grid-scale energy storage. 13 Table of Contents IVANHOE ELECTRIC INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited - Tabular amounts expressed in thousands of U.S. dollars, unless otherwise indicated) Segment information for the periods presented is as follows: As at and for the three months ended March 31, 2025 Santa Cruz Project Critical Metals Data Processing Energy Storage Total Revenue $ — $ — $ 735 $ — $ 735 Intersegment revenues — — 10 — 10 Loss (income) from operations 6,500 19,575 ( 217 ) 1,146 27,004 Segment assets 178,478 176,618 2,012 57,280 414,388 As at and for the three months ended March 31, 2024 Santa Cruz Project Critical Metals Data Processing Energy Storage Total Revenue $ — $ — $ 360 $ — $ 360 Intersegment revenues — — 119 — 119 Loss (income) from operations 27,882 27,183 ( 57 ) 1,873 56,881 Segment assets 172,376 270,355 4,941 13,484 461,156 16. Commitments and contingencies: In October 2022, the Company entered into a contractual arrangement to purchase six Typhoon™ transmitters from I-Pulse (Note 13). In the ordinary course of business, the Company may be involved in various legal proceedings and subject to claims that arise. Although the results of litigation and claims are inherently unpredictable and uncertain, the Company is not currently a party to any legal proceedings the outcome of which, if determined adversely to it, are believed to, either individually or taken together, have a material adverse effect on the Company’s business, financial condition or results of operations. 14