G6 Materials Reports 2022 Annual Financial Results
Gross Profit Increased by 16% for the Year Ended May 31, 2022, Which Offset a Decrease in Revenue for the Same Period
Ronkonkoma, New York, USA – TheNewswire – October 26, 2022 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
a high-tech company with expertise in advanced materials and developing innovative composites for a wide range of industrial uses, is pleased to announce that it has filed its audited financial results for the fiscal year ending May 31, 2022, the highlights of which are included in this news release. The full set of 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 year ended May 31, 2022 was $1,357,799, from the $1,939,663 reported for the same period of the prior year, which was primarily due to restructuring a change in sales mix by shifting the Company’s focus to the launch of its own brand of air purifiers.
- Gross profit for the year ended May 31, 2022 was $602,570, an improvement from the $517,393 reported for the same period of the prior year, due to improved management on the inventory and cost allocation, yet partial offset by the increase in the shipping costs as a result of the pandemic effect.
- Total expenses for the year ended May 31, 2022 was $2,561,926, from the $1,950,509 reported for the same period of the prior year, due to an increases in general and administrative expenses related to establishing a reinforced accounting department to facilitate the business’ expansion as well as additional marketing expenses associated with the launch of the Company’s proprietary line of Breathe+ products.
- Comprehensive loss for the year ended May 31, 2022 was $4,938,532, as compared to a comprehensive loss of $938,601 reported for the same period of the prior year, which was primarily due to the $2,776,756 write-down of the value of its investment in GX Technologies due to the asset being deemed to be not ready for use based on accounting principles, lower sales of air purification products, as well as the increase in general and administrative expenses, marketing and investor relations expenses.
- Total assets for the year ended May 31, 2022 was $3,761,922, from the $5,912,649 reported for the same period of the prior year.
“The Company’s improvement in gross profit from the 2021 to the 2022 fiscal year was a notable highlight, despite the decrease in revenue from the previous fiscal year. We expect revenues to increase in the near future as more of our air purification units became available for purchase by consumers through third-party websites and they have begun selling at a faster pace,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “G6 continues to operate without any non-current financial liabilities, which is a trend that we are proud to continue based on our conservative deployment of capital,” added Mr. Stolyarov.
Summary of Key Financial Measures
(all amounts expressed in US dollars unless otherwise noted)
Commercial Highlights Subsequent to the 2022 Fiscal Year
- Launch of Breathe+ Pro Advanced Antimicrobial Graphene Air Filtration System: On July 12, 2022, the Company announced the launch and immediate availability of the Breathe+ Pro Advanced Antimicrobial Graphene Air Filtration System at breatheplus.tech and on Amazon (NASDAQ: AMZN). The Breathe+ Pro Air Purifier utilizes innovative air filters that contain activated carbon with graphene oxide coating developed by G6’s research team.
Subsequent to the 2022 fiscal year, the Company is focused on increasing its sales of air purification products with the goal of achieving improved financial results in the 2023 fiscal year and continuing the early trend of positive customer reviews of its products. Advancing other strategic initiatives and assessing their results, including but not limited to battery-related research, is also a key goal for the next fiscal year. Additionally, the Company is focused on evolving certain commercial relationships and research-based partnerships in its effort to expand its network as a pioneer in developing graphene-enhanced solutions.
About G6 Materials Corp.
G6 Materials Corp. is a high-tech company with expertise in advanced materials that creates value developing innovative composites for a wide range of industrial uses. Graphene Laboratories Inc., a wholly owned subsidiary of G6, sells a range of graphene-based products and other materials, including but not limited to conductive epoxies, high-performance composites, and R&D materials, with numerous customers from among the Fortune 500 list of companies, as well as NASA and leading universities. Graphene Laboratories Inc. has entered the global air filtration market with Breathe+, a line of medical grade HEPA air filtration products enhanced with advanced performance graphene material.
G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprising five granted patents. The Company’s management team and employees have a deep understanding of graphene technology based on decades of aggregate academic and commercial experience. Graphene Laboratories Inc., a wholly owned subsidiary of G6 located in Ronkonkoma, New York, has established its premium research laboratory and scalable production facility is equipped with advanced analytical and material processing equipment.
The Company’s e-commerce websites are listed below:
- Breathe+: Medical grade HEPA air filtration enhanced with advanced performance graphene material, for more information, visit breatheplus.tech
- Conductive Epoxies: Adhesive materials distributed under the G6-EpoxyTMtrade name and can be purchased at g6-epoxy.com
- R&D Materials: Graphene Laboratories Inc. currently offers over 100 graphene and related products available at graphene-supermarket.com
This news release contains forward-looking statements within the meaning of the applicable securities legislation that is based on expectations, estimates and projections as at the date of this news release. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. “Forward-looking information” in this news release includes but is not limited to information about the graphene-enhanced air purifier (including efficacy, potential commercialization and patent pending thereof); information about the potential for the Company’s long-term growth; the business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Risk factors that could cause actual results to differ materially include, but are not limited to, the risk that actual results in commercial applications of the graphene-enhanced air purifier may differ significantly from the Test Results; the Test Results may not be accepted by applicable regulatory agencies required to approve commercialization of the graphene-enhanced air purifier; the Company may not receive required approvals from regulatory agencies to commercialize the graphene-enhanced air purifier; the Company may not achieve further stages of commercialization of the graphene-enhanced air purifier as anticipated, or at all; the Company patent pending (US20210346831A1) may not be granted; the Company may not achieve anticipated commercial gains or profitability from the sale of Breathe+ Pro Advanced Antimicrobial Graphene Air Filtration System as currently anticipated, or at all; risks associated with adoption by industries of graphene-based products health and environmental factors affecting adoption of these technologies; the company may fail to obtain appropriate government approvals or accreditation related to the business’ operations and technological processes; the market conditions and demand for its product as well as the market prices of such products being developed by the company may change over time; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; competition; dilution; and the volatility of our common share price and volume.
The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Daniel Stolyarov, President & Co-CEO
Telephone: (631) 405-5113
Nick Kuzyk, Investor Relations
ON BEHALF OF THE BOARD: Daniel Stolyarov, President & CEO
SOURCE: G6 Materials Corp.