ADURO CLEAN TECHNOLOGIES INC.

Aduro’s key risk is financing and valuation fragility: it generated only C$167k of revenue while posting a C$12.8m net loss in the six months ended November 30, 2025 and funding operations primarily through repeated equity raises, which implies ongoing dilution risk if commercialization timing slips. The C$4.0m derivative financial liability tied to USD-denominated warrants adds meaningful non-cash earnings volatility and can mechanically deepen losses when the share price or volatility rises, obscuring underlying cash burn and complicating investor messaging. Even with C$13.0m cash and positive working capital at November 30, 2025, operating cash burn of roughly C$4.9m over six months suggests limited runway without continued capital markets access, and the subsequent December 22, 2025 US$20m offering underscores that dependence on external funding remains central to the plan. This matters because any tightening in risk appetite or a decline in the share price can simultaneously raise the cost of capital, accelerate dilution, and amplify reported losses via the derivative mark-to-market, increasing the probability of a down-round or program delays.