G6 Materials Reports 2021 Annual Financial Results
Revenue Grew by 110% for Year Ended May 31, 2021
Ronkonkoma, New York, USA – TheNewswire – September 29, 2021 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
a technology company creating value through the development of innovative graphene-based solutions, is pleased to announce that it has filed its audited financial results for the fiscal year ending May 31, 2021, 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 period ended May 31, 2021 reached $1,939,663, a 110% increase from the $922,614 reported for the same period of the prior year, which was primarily due to the continuing strong demand for the Company’s offering of air purification products and graphene-related consulting services provided to third-party clients with a higher margin.
- Gross profit for the year ended May 31, 2021 was $517,393, a 156% increase from the $202,245 reported for the same period of the prior year, due to the aforementioned reasons listed above.
- Total expenses for the year ended May 31, 2021 were $1,950,509, as compared to $1,240,593 for the same period of the prior year, primarily due to an increase in professional fees, marketing and investor relations and research and development expenses, as well as the $268,579 of share-based compensation.
- Comprehensive loss for the year ended May 31, 2021 decreased by 6% to $938,601, as compared to a comprehensive loss of $1,002,112 reported for the same period of the prior year, which was primarily due to increases in the sales of intellectual property consulting services, air purification products and hygiene products, which was partially offset by increases in professional fees and office and administration expenses.
- Total assets for the year ended May 31, 2021 increased by 407% to $5,912,649 from $1,165,686 for the same period of the prior year.
“Our financial results for the 2021 fiscal year feature significant highlights that include G6’s strong growth in revenue, gross profit and total assets. I am proud of our team’s accomplishments and thank them for their hard work to achieve these results. G6 is well financed to pursue its goals in the 2022 fiscal year and I look forward to executing on our near-term target milestones,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “The acquisition of GX Technologies and the $5.4 million of equity capital that the transaction helped attract to the Company are also important events to highlight as part of our 2021 fiscal year,” added Mr. Stolyarov.
Summary of Key Financial Measures (all amounts expressed in US dollars unless otherwise noted)
Subsequent Highlighted Events (all amounts expressed in US dollars unless otherwise noted)
- Closing of GX Technologies Acquisition: On August 4, 2021, the Company executed a definitive purchase agreement (the “Agreement”) to formalize and close the previously announced acquisition (the “Transaction”) of all membership interests of GX Technologies, LLC (“GX Technologies”). Pursuant to the terms of the Agreement, the Company paid for the membership interests of GX Technologies by issuing 25,000,000 common shares (the “Consideration Shares”) of G6 at a deemed price of C$0.20 per common share of the Company on August 23, 2021.
- Air Purifier Test Results: 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 (the “Lab Test”) 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. Two different pathogens were randomly chosen to be tested under each experiment, which were the E. coli bacteria and the Phi-X174 bacteriophage. The duration of the Lab Test was set to two hours.
Subsequent to its successful 2021 fiscal year, the Company is focused on achieving its carefully selected group of near-term target milestones. They include the commencement of the pilot-scale reactor for graphene oxide production; the achievement of ISO certification of its New York facility; the expansion of the team in the sales, business development and research and development departments; entering into contracts for conductive epoxies; the launch of G6’s proprietary air purification devices; and the continuation of work with the US Army Corps of Engineers. The success of the 2022 fiscal year is expected to be measured by G6’s board of directors and executive management team based on the achievement of these goals.
About G6 Materials Corp.
G6 Materials Corp. is a technology company creating value through the development of innovative graphene-based solutions. 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. is developing other innovative products including graphene-enhanced air purifiers and it plans to enter the global filtration market once all testing is complete and applicable government approvals are received.
G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprised of 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:
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 information about the acquisition of GX Technologies; the use of proceeds of the Offering; the potential for the Company’s long-term growth; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Risk factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the acquisition of GX Technologies may not completed on the terms currently anticipated, or at all; the combined company may not expand is pilot facility to produce graphene oxide in Long Island, New York on the terms currently anticipated, or at all; the combined company may not achieve its key milestones and value drivers in the time estimated, or at all; 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; the company may fail to obtain appropriate government approvals or accreditation related to the business’ operations and technological processes; the results of the tests being performed by an independent laboratory may be unsatisfactory and prevent the company from receiving government approvals and accreditations; 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; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. shareholders.
In connection with the forward-looking information contained in this news release, the Company has made assumptions about the ability to complete the acquisition of GX Technologies, including obtaining TSXV final acceptance; the benefits to completing the acquisition of GX Technologies; and there will be no regulation or law that will prevent the combined company from operating its business. The Company has also assumed that no significant events occur outside of the G6 and GX’s normal course of business.
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.