Dotz Nano Narrows Loss to US$2.23M, Advances DAC Pilot and Partnerships

Financial Performance and Going Concern

Dotz Nano Limited, a nanotechnology company focused on sustainable industrial solutions, reported a half-year loss of US$2.23 million for the period ended 30 June 2025, improving from a US$2.77 million loss in the prior year. Despite the narrowing loss, the Group remains in a net liability position of US$388,286 and faces a working capital deficiency exceeding US$4.6 million. Cash reserves declined to US$365,354 from nearly US$800,000 at the end of 2024.

The directors acknowledge these financial pressures but maintain confidence in the Group's ability to continue as a going concern. This optimism is based on anticipated funding from convertible note conversions, bridging loans, and the commercialisation prospects of their nanomaterial technologies. However, the company highlights a material uncertainty regarding its financial sustainability without additional capital.

Technological Progress in Carbon Capture

Dotz Nano achieved a key milestone with the successful completion of a lab-scale pilot demonstration of its DotzEarth Direct Air Capture (DAC) sorbent technology. This proprietary polymer-based material demonstrated superior CO₂ adsorption capacity, lower regeneration temperatures, and enhanced energy efficiency compared to existing commercial sorbents. The pilot also confirmed the sorbent's thermal and oxidative stability over continuous cycles, underscoring its potential for long-term industrial application.

Building on this success, Dotz signed a Memorandum of Understanding with CarbonCapture Inc. to advance evaluation of the DAC sorbent at kilogram scale. This partnership aims to accelerate proof-of-concept testing and commercial readiness, positioning Dotz to tap into the rapidly growing solid sorbent DAC market, projected to exceed US$1.5 billion by 2027.

Funding Developments and Challenges

On the funding front, Dotz secured a standby subscription agreement with TRITON FUNDS for up to A$4 million. However, the company has yet to receive funds under this agreement due to unresolved timing issues raised by TRITON. Dotz is actively engaging with TRITON to resolve these matters but has not received a response, prompting consideration of legal options.

To bridge this gap, Dotz successfully raised approximately US$0.7 million (A$1.2 million) through a private placement of new shares and attaching options to qualified investors. This capital injection provides short-term operational runway while the company seeks to finalise the TRITON funding.

Convertible Notes and Equity Movements

Dotz continues to manage its convertible note facility with Mercer Street Global Opportunity Fund, LLC, which remains a significant financial liability on the balance sheet. The maturity date of these notes has been extended by six months, and the company has converted portions of the notes into ordinary shares during the period, easing cash repayment pressures.

Additionally, Dotz issued shares and options to H2B under an amended Asset Purchase Agreement, completing all obligations under that contract. Share-based payments increased during the period, reflecting ongoing equity incentives for management and advisors.

Outlook and Strategic Positioning

Dotz Nano is positioning itself at the forefront of nanomaterial-enabled environmental technologies, with a dual focus on in-product tagging for industrial monitoring and next-generation carbon capture materials. The recent pilot success and strategic partnership with CarbonCapture Inc. signal promising commercial potential in the expanding carbon capture market.

Nevertheless, the company’s financial position remains fragile, with funding uncertainties and a net liability status underscoring the need for continued capital raises and operational discipline. The directors’ confidence in securing additional funds and advancing commercial milestones will be critical to sustaining momentum.