G6 Materials Reports Financial Results for the First Fiscal Quarter of 2023
Ronkonkoma, New York, USA – TheNewswire – October 31, 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, announces that it has filed its unaudited financial results for the first quarter of the fiscal year ending August 31, 2022, 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, 2022 was $358,400, which was almost equal to the $358,540 reported for the previous three-month period.
- Gross profit for the three-month period ended August 31, 2022 was $132,930, a decrease from the $183,796 reported for the previous three-month period, due to a change in product sales mix related to seasonal variations.
- Total expenses for the three-month period ended August 31, 2022 was $780,817, from the $539,593 reported for the same period of the previous three-month period, due to an increase in general and administrative expenses related to an increase in spending on marketing associated with the launch of the Company’s Breathe+ product line and also due to the restructuring of agreements with the US Army Corps of Engineering.
- Net loss for the three-month period ended August 31, 2022 improved to $647,887, as compared to a net loss of $3,132,553 reported for the previous three-month period, which was due to the $2,776,756 write-down of the value of the Company’s investment in GX Technologies per IFRS rules.
- Total assets for the three-month period ended August 31, 2022 were $3,122,687, from $3,761,922 reported for the annual period ended May 31, 2022.
“The first quarter of the 2023 fiscal year was a steady one for the Company from a revenue perspective, while capital continued to be allocated to support the recent launch of our Breathe+ products into the marketplace. We also continue to optimize business processes to improve margins and better serve our distributors as demand for our air purifiers continues to grow,” said Daniel Stolyarov, President & Co-CEO of G6 Materials Corp. “We expect to advance a number of key initiatives in the near future, in our core area of developing graphene-based solutions as well as in new research areas,” added Mr. Stolyarov.
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 audited annual financial statements, prepared in accordance with International Financial Reporting Standards and the related notes thereon.
The Company announces that it has fulfilled its obligations and satisfied the necessary filing requirements related to its annual financial statements and accompanying management’s discussion and analysis for the financial year ended May 31, 2021. Therefore, the Management Cease Trade Order granted on September 29, 2022 under National Policy 12-203 – Management Cease Trade Orders has been lifted.
Engagement of IR Service Provider
The Company has recently entered into an agreement with Calgary-based Meadowbank Strategic Partners Inc. ("Meadowbank" or the “Consultancy”) to provide investor relations, capital markets and corporate development advisory services. The agreement between the Company and the Consultancy is for a minimum cash fee of CA$7,800 per month plus GST. The term of the agreement is in perpetuity but is subject to a 60-day written notice period for termination.
Neither Meadowbank, nor any of its directors and officers currently own any securities of the Company or any right to acquire securities of the Company. Meadowbank has not been granted an interest in or an option to acquire any securities of the Company, and the fees payable to the Consultancy will be paid from the Company’s working capital on hand. Meadowbank is an arm’s length party to the Company. The contract is subject to any necessary approval by the TSX Venture Exchange.
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 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
Email: [email protected]
Nick Kuzyk, Investor Relations
Email: [email protected]
ON BEHALF OF THE BOARD: Daniel Stolyarov, President & Co-CEO
SOURCE: G6 Materials Corp.