G6 Materials Reports Financial Results for the Second Fiscal Quarter of 2022
Total Assets for the Period Ended November 30, 2021 Grew by 22% Compared to the Period Ended May 31, 2021
Ronkonkoma, New York, USA – TheNewswire – January 31, 2022 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
a technology company creating value by developing innovative graphene-based solutions, is pleased to announce that it has filed its unaudited financial results for the second quarter of the fiscal year ending November 30, 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 November 30, 2021 reached $320,204, a slight 6% decrease from the $341,134 reported for the previous three-month period, which was primarily due to the delayed delivery of finished goods due to supply chain disruptions.
- Gross profit for the three-month period ended November 30, 2021 was $39,383, a 77% decrease from the $171,482 reported for the previous three-month period, due to a significant increase in the shipping costs of direct materials and customer shipments mainly from the import of air purification materials and wellness products that resulted in increased costs of goods sold.
- Net loss for the three-month period ended November 30, 2021 decreased by 7% to $610,265, as compared to a net loss of $571,194 reported for the previous three-month period, primarily as the result of increases in the cost of goods sold, professional fees, marketing and investor relations expenses and office and administration expenses, which was partially offset by the sale of intellectual property, consulting services, air purification products and hygiene products.
- Total assets for the period ended November 30, 2021 increased by 22% to $7,215,304 from $5,912,649 for the period ended May 31, 2021.
“Despite the supply chain challenges that affected our second quarter financial results, we have pivoted the Company to better deal with the situation by opening a new base of operations in California, closer to the largest container import terminals on the west coast and near to our major distributors,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “Our team is excited to have received ISO-9001 Certification for our New York facility late in 2021, which was required in order to secure an exclusive five-year supply agreement. This advancement, along with an exciting research project with the US Army Corps of Engineers, is a great way to begin 2022 and continue the evolution of G6 Materials for the benefit of our shareholders and stakeholders,” added Mr. Stolyarov.
Summary of Key Quarterly Financial Measures
(all amounts expressed in US dollars unless otherwise noted, with 2Q21 shown for year-over-year comparison purposes)
Subsequent Highlighted Events (all amounts expressed in US dollars unless otherwise noted)
- New Base of Operations in California: On December 1, 2021, the Company announced that its wholly owned subsidiary, Graphene Laboratories, Inc., is opening new location in Cerritos, California. The new location is a 3,895 square foot office and warehouse facility located at 16220 Manning Way in Cerritos, California, and will be mainly used as a distribution center for the Company’s products. In addition, the Company has also engaged the services of a California-based third-party logistics company to increase its distribution capacity.
- ISO 9001 Certification and Exclusive 5-Year Supply Agreement with Global Microconnector Company: On December 14, 2021, the Company announced that its wholly owned subsidiary, Graphene Laboratories, Inc., recently received ISO 9001 certification (“ISO 9001”) for its manufacturing facility in Ronkonkoma, New York. Obtaining ISO 9001 was a prerequisite for G6 to enter into an exclusive five-year supply agreement with a global microconnector company headquartered in Europe. Although the terms of the agreement are confidential, the Company’s client is well known in the design, manufacture and sale of flexible printed circuits. Pursuant to the terms and conditions of the agreement, G6 shall supply its products for a variety of smartcard applications.
- Testing Services Agreement with the U.S. Army Engineer Research & Development Center: On January 17, 2022, the Company announced that its wholly owned subsidiary, Graphene Laboratories, Inc., had entered into a Testing Services Agreement with the U.S. Army Engineer Research & Development Center in Vicksburg, Mississippi. The Company will assess the ability of graphene oxide materials to solve environmental challenges through the adsorptive removal of contaminants.
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., with its ISO 9001-certified facility located in Ronkonkoma, New York, has established its premium research laboratory and scalable production facility and is equipped with a pilot-scale graphene oxide reactor as well as advanced analytical and material processing equipment.
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 and potential commercialization 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; 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; 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.