G6 Materials Reports Financial Results for the First Fiscal Quarter of 2024

a high-tech company with expertise in advanced materials and developing innovative composites for a wide range of industrial uses, announces that it has filed its unaudited financial results for the first quarter of the fiscal year ending August 31, 2023, the highlights of which are included in this news release. The full set of Condensed Interim Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting G6’s website at www.g6-materials.com or its profile page on SEDAR at www.sedar.com.

Financial Highlights (all amounts expressed in US dollars unless otherwise noted)

• Revenue for the three-month period ended August 31, 2023 was $320,907, a decrease from the $358,400 reported for the same period last year, due to a change in product sales mix.
• Gross profit for the three-month period ended August 31, 2023 was $87,560 or 27% of revenue, a decrease from the $132,930 or 37% of revenue reported for the same three-month period last year, due to the aforementioned change in product sales mix as a result of seasonal variations.
• Total expenses for the three-month period ended August 31, 2023 was $514,506, an improvement from the $780,817 reported for the same three-month period last year, primarily due to a decrease in general and administrative expenses and research and development costs.
• Net loss for the three-month period ended August 31, 2023 was $426,946, an improvement as compared to the net loss of $647,887 reported for the same three-month period last year, primarily due to a decrease in operating expenses, particularly general and administrative expenses, marketing as well as research and development costs.
• Total assets for the period ended August 31, 2023 were $1,129,035, from $1,441,003 reported for the annual period ended May 31, 2023.

Management Commentary

“The first three months of the Company’s 2024 fiscal year saw it make significant gains in its overall level of cash-based expenses, while revenue generally held steady over the same period. Gross profit margin also improved significantly over the last quarter, which helped lower our net loss,” said Kevin Cornish, President, Interim CEO & CFO of G6 Materials Corp.

“As recently announced, G6 is going through a period of change but we are grateful to remain a debt-free company with recurring revenues from diverse group of loyal customers, valuable intellectual property in the form of seven granted patents, and a simple capital structure. I would like to thank our employees, board of directors, shareholders, consultants, advisors and other stakeholders for their support during this time,” added Mr. Cornish.

Summary of Key Financial Measures (all amounts expressed in US dollars unless otherwise noted)

The following table contains summary financial information taken from the Company’s quarterly financial reports covering the last five reporting quarters. The information set forth should be read in conjunction with the Company’s audited annual financial statements, prepared in accordance with International Financial Reporting Standards and the related notes thereon.