G6 Materials Reports 2020 Annual Financial Results
October 2, 2020
TSXV: GGG, OTCQB: GPHBF
Ronkonkoma, New York, USA – The Newswire – October 1, 2020 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
A technology company and world-leader in creating value through innovative graphene-based solutions is pleased to announce that it has filed its audited financial results for the fiscal year ending May 31, 2020, 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.
- Revenue for the fourth quarter ended May 31, 2020 reached a record level of $406,684, which is a 2.4x increase from the $169,237 reported for the third quarter of 2020 and a 2.0x increase from the $206,609 reported for the same period of the prior year
- Revenue for the year ended May 31, 2020 was $922,614, which is similar to the $946,834 reported in the previous fiscal year
- Comprehensive loss for the fourth quarter ended May 31, 2020 was $251,168, a 11% increase from the $226,213 reported for the third quarter of 2020 and a 248% increase from the $72,212 reported for the same period of 2019
- Comprehensive loss for the year ended May 31, 2020 was $1,002,112, a 69% increase from the $601,565 reported for the same period of 2019
- Total assets for the year ended May 31, 2020 increased by 9% to $1,165,686 from $1,066,851 for the same period of last year
The Company’s fiscal year was especially challenging due to the COVID-19 outbreak. “We started to experience the pandemic’s negative impacts in the third fiscal quarter, initially due to a decline in demand for research products because the universities and research laboratories in Asia were closed due to people being in quarantine,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “The pandemic reached our place of business in the fourth quarter and, by the various orders of the Government of the State of New York, our operations were ultimately forced to slow down due to some personnel working remotely. However, despite these challenges management found exciting new business opportunities related to the sale of disinfection and purification products,” added Mr. Stolyarov. Based on the Company’s success in selling air filtration products, G6 has continued to pursue this market opportunity.
|Cost of goods sold||-365,059||-104,636||-128,215||-122,459||-13,851|
|Gross profit (loss)||41,625||64,601||22,550||73,469||192,758|
|Net loss per share (basic and diluted)||-0.002||-0.003||-0.005||-0.002||-0.001|
|Summary of Key Quarterly Financial Measures for the 2020 Fiscal Year (with 4Q19 shown for year-over-year comparison purposes|
- Marine Composite Project: As previously announced, the Company entered into a research agreement with a Singapore-based firm to develop a graphene composite for marine vessels. This project was mostly completed in the fiscal year of 2020, which the Company reported as complete in August of 2020. While working on this project, the Company developed two composite formulations using graphene additives with carbon fiber and fiberglass that provide a 14-fold improvement of fracture toughness and a 3-fold improvement of fatigue resistance. These results were reported in an event at Capitol Hill (Washington DC, USA) and at the TechConnect World Innovation Expo. Detailed technical specifications can be found at the Company’s web site.
- Pharma Project: In October of 2019, the Company was granted a patent from US Patent Office for its proprietary technology involving the synthesis of trifluoroketones, which serves as a key intermediate step in the synthesis of a drug under development by the Company’s pharmaceutical industry partner. This drug is being tested for the treatment of certain lung conditions and, in June of 2020, the Company signed a licensing agreement with its partner. According to the terms of this agreement, in exchange for a US$220,000 payment the Company is providing a 2-year exclusive license and an option to purchase the IP rights for a fixed price of US$1,000,000.
- Air Purification Project: In the last quarter of the fiscal year, to address the demand for air purification products as a result of the global coronavirus pandemic the Company added a line of existing air purification products to its portfolio. Further, the Company’s research and development team developed a graphene-based technology to create an enhanced air filtration system. Subsequently, a provisional patent application was filed to protect the IP rights for this technology.
Despite the global COVID-19 pandemic presenting society with numerous challenges in 2020, it has also created opportunities to identify areas for improvement, apply new technologies and make permanent advancements for the future. Based on G6’s recent success in selling air filtration and purification products to meet a surge in demand, the Company has continued to allocate resources in pursuit of this market opportunity. Management expects this positive trend to continue into the 2021 fiscal year and is working to develop a new line of proprietary, graphene-based, air filtration products to launch into the market. In parallel, G6 will continue to sell its legacy product lines and strengthen its portfolio of intellectual property through further research and development.
About G6 Materials Corp.
G6 Materials Corp. is a technology company and world-leader in creating value through innovative graphene-based solutions. The Company is strategically focused on serving the global air filtration and purification market with new products to meet growing demand. G6 also sells a range of graphene-based products and other materials, including but not limited to 3D printing materials, conductive epoxies, fine chemicals, 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. G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprised of three granted patents, three provisional patents and five patent applications filed. The Company’s management team and employees have a deep understanding of graphene technology based on decades of aggregate academic and commercial experience. Located in Ronkonkoma, New York, 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:
3D printable filaments can be purchased at BlackMagic3D.com
Adhesive materials distributed under the G6-EpoxyTM trade name and can be purchased at g6-epoxy.com
ChemApproach is a worldwide supplier of a wide variety of unique chemical building blocks, which can be found at chemapproach.com
Graphene Laboratories Inc. currently offers over 100 graphene and related products available at Graphene-Supermarket.com
This news release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our 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. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with adoption by industries of graphene-based products health and environmental factors affecting adoption of these technologies; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. Albeit the operation of newly suggested products are based on strong scientific evidence, the Company cannot guarantee the performance parameters of the new products and their efficiency against the specific microbes including all types of viruses and bacteria until testing is completed. Further, the Company can not guarantee any outcomes of such testing. Neither the TSX Venture Exchange nor it's regulation services provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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