CDTi Advanced Materials, Inc. (OTC: CDTI) (“CDTi” or “the Company”), a leader in advanced catalyst technology, reported its consolidated financial statements for the year ended December 31, 2021.

CDTi ADVANCED MATERIALS, INC.

(Exact name of registrant as specified in its charter)

Delaware	06-1393453
State or other jurisdiction of	(I.R.S. Employer
incorporation or organization	Identification No.)

1641 Fiske Place

Oxnard, CA 93033

(Address of principal executive offices) (Zip Code)

CDTi ADVANCED MATERIALS, INC.

Index to Financial Statements

Audited Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm2

Consolidated Balance Sheets as of December 31, 2021 and 2020 3

Consolidated Statements of Comprehensive Loss for the years ended December 31, 2021 and 2020 4

Consolidated Statements of Stockholders' Equity for the years ended December 31, 2021 and 2020 5

Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020 6

Notes to Consolidated Financial Statements 7

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

CDTi Advanced Materials, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of CDTi Advanced Materials, Inc. (the Company) as of December 31, 2021 ad 2020, and the related consolidated statements of comprehensive loss, stockholders' equity, and cash flows for the years ended December 31, 2021 and 2020, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years ended December 31, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) "PCAOB" and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted un the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

Rose, Snyder & Jacobs LLP

Encino, California

We have served as the Company's auditor since 2017

March 31, 2022

CDTi ADVANCED MATERIALS, INC.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

December 31, 2021

2020

ASSETS

Current assets:

Cash $ 1,460 $

1,823

746

Accounts receivable, net of allowance for doubtful accounts of $70 Inventories

Prepaid expenses and other current assets

1,221 909346

86

Total current assets 3,936

3,502

Property and equipment, net

Intangible assets, net

3,502

Other assets

206 404120

140

112

Total assets $

4,666

$

4,320

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:

Accounts payable

Accrued expenses and other current liabilities Liability for income taxes

$

682 $ 1,085861

341

818

Total current liabilities 2,628

2,091

2,091

Total liabilities

Commitments and contingencies (Note 12) Stockholders' equity:

Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and outstanding

2,628

2,091

Accumulated deficit (233,762)

(233,373)

41 241,578 (6,017) (233,373)

Common stock, par value $0.01 per share: 50,000,000 shares authorized, 4,501,301 and 4,101,301 issued and outstanding at December 31, 2021 and 2020, respectively

Additional paid-in capital

Accumulated other comprehensive loss

45 241,834(6,077)

Total stockholders' equity

2,040 2,229

Total liabilities and stockholders' equity

$

See accompanying notes to the consolidated financial statements.

4,666$ 4,320

CDTi ADVANCED MATERIALS, INC.

Consolidated Statements of Comprehensive Loss

(in thousands, except per share amounts)

Years Ended December 31,2021

2020

Gross profit 1,977

1,709

4,993 3,284 1,709

Revenues

Cost of revenues

$

6,371$ 4,394

Operating expenses:

Research and development Selling, general and administrative

7912,264

851

2,359

Total operating expenses 3,055

3,210

Operating loss

3,210

(1,078)

(1,501)

Other income, net 771

519

Loss before income tax

519

(307)

(982)

Benefit/(Provision) for income taxes (82)

(48)

Net loss

(48)

(389)

(1,030)

Foreign currency translation adjustments (60)

69

(961)

Comprehensive loss

$

See accompanying notes to the consolidated financial statements.

(449) $

69