G6 Materials CEO Discusses Its Proprietary Graphene-Based Air Filtration and Purification System

G6 Materials CEO Discusses Its Proprietary Graphene-Based Air Filtration and Purification System

NEWS
December 9, 2020
TSX-V: GGG, OTCQB: GPHBF

eResearch | G6 Materials Corp (TSXV:GGG; OTCQB:GPHBF)

A New York-based company that develops and sells graphene-based products and solutions including air filtration and purification systems, 3D printing materials, conductive epoxies, fine chemicals, high-performance composites, and Research & Development (“R&D”) materials. The Company sells its products to numerous customers including several Fortune 500 companies, Stanford University and NASA, and generates additional revenue through the monetization of its proprietary Intellectual property (“IP”).

Due to growing demand stemming from the global COVID-19 pandemic, G6 recently focused on the development and commercialization of its proprietary graphene-based air filtration and purification system, which is expected to come to market in 2021.

G6 recently achieved its strongest quarter to date, reporting revenue of $1.2 million during its fiscal Q1/2021, ending August 31, a 497% increase from the same period of the prior year, with a positive net income of $0.1 million compared to a loss of US$0.2 in the same period of the prior year.
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FIGURE 1: Positive Quarterly Revenue Growth and First Profitable Quarter



Daniel Stolyarov, President & CEO of G6 spoke with eResearch to discuss what’s been driving the Company’s recent success, and its plans to achieve additional growth in 2021.

eR: You recently reported your most successful quarter to date. What’s on the horizon for the Company in the near term?

Daniel Stolyarov: Previously we specialized in the development of advanced graphene-based materials however, we have shifted our primary strategic focus to serving the air filtration and purification market with new products to meet growing demand, as a result of the global coronavirus pandemic, among other factors.

Over the next year, G6 is planning to drive revenues through the large-scale manufacturing of its proprietary graphene-based air filtration devices.
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FIGURE 2: Proprietary Graphene-based Air Filtration & Purification System, Available in 2021



eR: What role does graphene have in your latest air filtration products or other products that are in development?

Daniel Stolyarov: In general, graphene has extraordinary antiviral and antibacterial properties. This year, the Company’s R&D team developed a graphene-based technology to create a proprietary enhanced air filtration system. Subsequently, a provisional patent application was filed to protect the IP rights for this technology. In short, the application captures the idea that the proteins that make up an active virus site chemically react to graphene oxide, which essentially inactivates the virus and renders it harmless.
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FIGURE 3: G6 Leverages Graphene Properties to Create Innovative Products and Solutions



eR: How does the Company generate revenue?

Daniel Stolyarov: Our current revenue streams are generated through the sale of our existing products through e-commerce websites such as Amazon (NASDAQ: AMZN) and our own online store, as well as from the monetization of a growing IP portfolio.

In our most recent fiscal quarter (FQ1/2021), we reported record revenues of $1.2 million, while gross profit significantly improved to $0.4 million, a 481% increase over the same period of the prior year. This improvement was primarily driven by strong customer demand for our air purification products, as well as the receipt of a one-time payment stemming from a license and option agreement relating to our IP.

eR: What kind of margins exist with this business model?

Daniel Stolyarov: Gross margin for fiscal Q1 was 36%, similar to the 37% gross margin reported in the same period of the prior year.

eR: Do you have any plans in place that could increase your margins moving forward?

Daniel Stolyarov: G6 is planning to manufacture its enhanced air filtration system’s hardware in Asia to reduce production costs, while its graphene-based components will be chemically processed at its facility in New York, both to ensure product quality and consistency as well as to maintain the security of our IP. G6 has completed the short-listing of several partners who are most capable of carrying out the manufacturing of the hardware and filter media, and will keep shareholders updated throughout the process of bringing our enhanced air filtration system to market.

eR: You’ve had 3 patents granted recently and more that have been filed or are provisional. Can you tell me more about these patents, and how you expect this will benefit your operations moving forward?

Daniel Stolyarov: As one of G6’s core competencies, conducting R&D and the resulting expansion of our IP portfolio is a key part of our strategy. Monetizing G6’s IP portfolio through research projects, licenses, option agreements, and/or other methods is an important way to occasionally supplement our income statement and cash flows over time. Therefore, we expect to continue filing patent applications as innovative applications of graphene and other advanced materials are developed by the Company.

eR: With the recent announcements regarding the development of several COVID-19 vaccines, how do you think that might affect the demand for your air purification products and your expectations for revenue growth into the future?

Daniel Stolyarov: Aside from the fact that any vaccine will take some time to distribute around the world, it seems that the global COVID-19 pandemic in 2020 has permanently elevated the importance of indoor air quality and the general cleanliness of indoor surfaces in the collective social consciousness. Therefore, we expect that the demand for our graphene-based air purification products and systems to remain strong at least for the medium term.

eR: Does the Company have any additional capital requirements in order to execute on its goals?

Daniel Stolyarov: We recently reported a net income of $125,554 in our FQ1/2021 financial results. Therefore, the Company currently generates a sufficient amount of cash flow from operations to sustain the business and we are not currently involved in a capital raise at the time of this interview. However, we may elect to raise some additional capital if management and the board deem that to be the optimal path to accelerating value creation by and for the company.

eR: What upcoming catalysts can investors expect to see over the next 6-12 months?

Daniel Stolyarov: Given that G6’s recent catalysts have yet to be appreciated by the broader market, we would encourage readers to review our recently published financial results for both FQ4/2020 and FQ1/2021, available on our website at http://www.g6-materials.com. These two quarterly reports demonstrate a significant improvement in our business. We will continue to keep shareholders informed on the progress toward the commercialization of our new air filtration products.

Notes: All numbers in USD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article.

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About G6 Materials Corp.

G6 Materials Corp. is a technology company and world-leader in creating value through the development of 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 Printing

3D printable filaments can be purchased at www.blackmagic3D.com

Conductive Epoxies

Adhesive materials distributed under the G6-EpoxyTM trade name and can be purchased at www.g6-epoxy.com

Fine Chemicals

ChemApproach is a worldwide supplier of a wide variety of unique chemical building blocks, which can be found at http://www.chemapproach.com

R&D Materials

Graphene Laboratories Inc. currently offers over 100 graphene and related products available at Graphene-Supermarket.com

Forward-Looking Information

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.

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