G6 Materials Reports 1Q22 Financial Results

a technology company creating value through the development of innovative graphene-based solutions, is pleased to announce that it has filed its unaudited financial results for the first quarter of the fiscal year ending August 31, 2021, 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, 2021 reached $341,134, a 55% increase from the $220,672 reported for the previous three-month period, which was primarily due to a stable increase in sales.
• Gross profit for the three-month period ended August 31, 2021 was $171,482, an 167% increase from the negative amount of $257,551 reported for the previous three-month period, due to the aforementioned reason partially offset by the increase in the shipping costs of direct materials and customer shipments mainly from the imports of air purification materials.
• Total expenses for the three-month period ended August 31, 2021 were $742,676, a 16% increase from the $642,057 reported for the previous three-month period, primarily due to an increase in professional fees and marketing and investor relations.
• Net loss for the three-month period ended August 31, 2021 improved by 37% to $571,194, as compared to a net loss of $899,609 reported for the previous three-month period, due to increases in the cost of goods sold, professional fees and office and administration expenses partially offset by the sales of intellectual property, consulting services, air purification products and hygiene products.
• Total assets for the period ended August 31, 2021 increased by 36% to $8,034,770 from $5,912,649 for the period ended May 31, 2021.

Management Commentary

“I am pleased with G6’s increase in revenue over the last quarter and significant improvement in the Company’s gross profit and net loss position relative to the last three-month period. Also, G6’s cash balance and level of total assets is the strongest that it’s been in a very long time,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “Barring any unforeseen supply chain interruptions, I am looking forward to the Company maintaining its positive current momentum further into the 2022 fiscal year, as we have a number of exciting research projects, business development opportunities and other initiatives under way,” added Mr. Stolyarov.

Summary of Key Quarterly Financial Measures

(all amounts expressed in US dollars unless otherwise noted, with 1Q21 shown for year-over-year comparison purposes)

Subsequent Highlighted Events (all amounts expressed in US dollars unless otherwise noted)

• Air Purifier Prototype Reduced Pathogenic Microorganisms by 99.9% in Antimicrobial Efficacy Test: On September 7, 2021, the Company announced the results of the antimicrobial efficacy test on a prototype of G6’s proprietary graphene-based air purifier conducted by a US-based microbiological laboratory of The Intertek Group plc. The test showed that the concentration of pathogenic microorganisms present in the testing chamber was reduced by 99.9% over the duration of the experiment.

• CEO Letter to Shareholders: On September 9, 2021, the Company announced the issuance of an update letter from G6’s President and Chief Executive Officer, Daniel Stolyarov, to the Company’s shareholders.

• Updated Corporate Website and Investor Presentation: On September 27, 2021, the Company announced that it had significantly updated its investor presentation and made it available for download on its corporate website at http://g6-materials.com/investors/. The updated presentation contains recent highlights, including closing of the equity financing, the GX Technologies acquisition, G6’s air purification products, the scaling-up of graphene production, conductive epoxy applications, near-term target milestones, and G6’s relative valuation to its peer group. The Company also announced that it had added new pages and updated the content on existing pages of its corporate website at http://g6-materials.com/. The updated website offers current content and downloadable materials pertaining to G6’s technology, product offerings, intellectual property portfolio, the GX Technologies acquisition, investor information, news releases and media articles, job postings and other information. Visitors can also join G6’s email distribution list in order to receive updates directly from G6 in a timely manner.