Next Hydrogen Charts New Course with Major Investment and Nuclear Contract

MISSISSAUGA, Ontario – March 31, 2026 – Next Hydrogen Solutions Inc. is signaling a significant strategic shift from a development-stage enterprise to a commercially focused powerhouse, bolstered by a major capital injection, key leadership changes, and a landmark contract in the high-tech nuclear fusion sector. The company's latest financial results for fiscal 2025 reveal a sharp increase in revenue and a dramatic reduction in losses, painting a picture of a company gaining traction in a complex but opportunity-rich green hydrogen market.

This pivot is underpinned by the new influence of its largest shareholder, Smoothwater Capital Corporation, and a clear mandate to accelerate commercialization and expand into new, demanding applications for its patented electrolyzer technology.

A Financial Turnaround and a New Major Backer

Next Hydrogen reported a strong financial performance for the year ending December 31, 2025, with revenues more than doubling to $3.4 million from $1.4 million in the prior year. This growth, primarily attributed to the completion of a development contract, was coupled with disciplined cost management that slashed the company's net loss by nearly half, down to $7.7 million from $14.6 million in 2024.

Perhaps the most telling figure is the company's cash position, which swelled to $18.5 million from just $3.6 million a year earlier. This financial fortification is the direct result of a $20.7 million non-brokered private placement completed in December 2025. The offering was led by an affiliate of Smoothwater Capital Corporation, a Toronto-based investment firm known for taking active roles in its portfolio companies. The deal made Smoothwater the largest shareholder, with an approximate 48.1% ownership stake.

Following the investment, Smoothwater's CEO, Stephen J. Griggs, joined Next Hydrogen as Executive Chair of the Board. "Smoothwater is pleased to have invested in Next Hydrogen," Griggs stated in the press release. "We started working with the board and management in January to focus the business on delivering for our current customers and potential clients, while carefully adding talent to the team."

The company acknowledges the challenges it faces, including low liquidity for its common shares, which Griggs attributes to the company's current stage. "Corporately, we know that there is a lack of liquidity in our common shares, contributing to our disappointing share price," he said. "As we build revenues, cash flow and a global order book for our leading-edge technology, we expect investor interest in our company to improve."

From Lab to Field: Commercialization Gains Momentum

A critical milestone validating the company's technology is the successful, ongoing operation of its first commercial-scale NH150 electrolyzer module. Since August 2025, the 0.75 MW system has been producing hydrogen at a Toronto-area distribution center for a major Canadian retailer, where it powers a fleet of fuel cell-powered forklifts. This real-world deployment serves as a crucial proof point for the technology's reliability and efficiency outside of a lab environment.

"Our first commercial-scale NH150 0.75 MW electrolyzer module has been successfully operating since August 2025," said Raveel Afzaal, President & CEO of Next Hydrogen. "We are now focused on marketing our electrolyzers in Canada, the United States and around the world."

Next Hydrogen's alkaline electrolyzers, protected by over 40 patents, feature a unique cell design that allows them to operate at high current densities and respond rapidly to fluctuations in power. This makes them particularly well-suited to producing green hydrogen from intermittent renewable energy sources like solar and wind, a key challenge for the growing hydrogen economy. The company is now advancing multi-modular configurations of its proven unit to address larger industrial-scale hydrogen demand.

Beyond Green Fuel: Hydrogen's New Frontiers

While decarbonizing transport and industry remains a core objective, Next Hydrogen is strategically diversifying into highly specialized and demanding sectors. In March 2026, the company announced it had secured two contracts valued at approximately $3.75 million to demonstrate its electrolyzer technology within a nuclear fusion application.

This move into the advanced nuclear space is significant. It requires delivering a customized system that meets the exceptionally stringent performance, reliability, and operating parameters of a nuclear environment. The contract win serves as a powerful validation of the technical differentiation of Next Hydrogen's platform. While hydrogen's role in powering vehicles is well-known, its isotopes are the primary fuel for fusion reactors, and managing these gases within the fusion fuel cycle is a critical engineering challenge. Successfully deploying an electrolyzer in this context provides an invaluable reference for future high-performance applications.

This strategic expansion aligns with a broader vision articulated by Executive Chair Stephen J. Griggs, who sees hydrogen's role extending far beyond environmental goals to address critical issues of energy security. "The war in Iran has made it clear to many countries that energy security is essential and that hydrogen-based alternatives can play an important part in improving it," Griggs commented. "Hydrogen also has a growing use in defence applications such as long-range low heat signature drones and in nuclear applications... The opportunities for hydrogen go far beyond helping to decarbonize our world."

A Strategic Leadership Overhaul

To execute this ambitious commercial strategy, Next Hydrogen has restructured its technology leadership. Effective April 1, 2026, Anson Sinanan will join as Vice-President, Stack Engineering. Sinanan brings over 25 years of deep industry experience, most recently as Director of Electrolyzer Technology at Accelera by Cummins, the successor to the pioneering Canadian firm Hydrogenics. His background is notable not just for engineering design but for a proven track record of bringing electrolyzers to market and overseeing successful customer installations.

"Anson brings years of experience not just in core engineering and design, but in bringing electrolyzers to market and successfully installing them at customer sites," Griggs noted. "We are thrilled to have him join Next Hydrogen as we focus on commercializing our products and generating meaningful revenue."

In a concurrent move, the company's technology founders, Michael Stemp and Jim Hinatsu, will transition from their executive roles to become technology consultants. This allows the company to retain their foundational vision and expertise while integrating new leadership laser-focused on commercial execution and scaling production. Griggs highlighted the continuity, stating, "Anson has worked closely with Mike and Jim in the past and is very familiar with our electrolyzer design and approach. He will hit the ground running and play a meaningful part in our success going forward." This carefully managed transition aims to strengthen the company's technical bench for its next phase of growth, combining pioneering innovation with seasoned commercial discipline.