G6 Materials Reports Record 1Q21 Financial Results
Highest Quarterly Revenues Since Inception plus Positive Comprehensive Income
Ronkonkoma, New York, USA – The Newswire – November 2, 2020 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
a technology company and world-leader in 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, 2020, 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 first quarter ended August 31, 2020 reached a record level of $1,169,426, which is a 188% increase from the $406,684 reported for the fourth quarter of 2020 and a 497% increase from the $195,928 reported for the same period of the prior year, which was primarily due to strong customer demand for the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement
- Gross profit for the first quarter ended August 31, 2020 was $426,608, a 925% increase from the $41,625 reported for the fourth quarter of 2020 and a 481% increase from the $73,469 reported for the same period of the prior year, which was also primarily due to strong customer demand for the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement
- Comprehensive income for the first quarter ended August 31, 2020 was $110,765, as compared to the $251,168 comprehensive loss reported for the fourth quarter of 2020 and the $180,735 comprehensive loss reported for the same period of 2019, which was primarily due to reduced expenses in the areas of research and development as well as lower general and administration expenses from cost-saving initiatives
- Total assets for the first quarter ended August 31, 2020 increased by 26% to $1,472,872 from $1,165,686 for the fourth quarter of 2020 and a 39% increase from $1,057,297 for the same period of last year
Management Commentary “The first fiscal quarter of 2021 was a significant milestone for G6 as we generated our best financial results in the history of the Company. Overcoming the challenges of early 2020, strategically pivoting the business and successfully capitalizing on a new market opportunity are all key accomplishments as G6 continues to evolve and grow,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “I would like to express my appreciation for the great efforts of our team to achieve these record quarterly results, as well as my gratitude to all customers who purchased our air purification products. We are excited to bring graphene-enhanced air filtration products to market and further commercialize G6’s intellectual property in this area,” added Mr. Stolyarov. Summary of Key Quarterly Financial Measures (with 1Q20 shown for year-over-year comparison purposes)
Corporate Highlights (all amounts expressed in US Dollars unless otherwise noted)
- Air Purification Products: In the second half of the 2020 fiscal year, the Company added a line of existing air purification products to its portfolio to address the step-change in demand for air purification products primarily as the result of the global coronavirus pandemic. The sale of these products accelerated significantly during the first quarter of the 2021 fiscal year, which is evident in the Company’s financial results. Further, the Company’s research and development team developed a graphene-based technology for an enhanced air filtration system for which a provisional patent application was filed to protect the intellectual property rights.
- License and Option Agreement: On June 23, 2020, the Company entered into a License and Option Agreement with a US-based clinical-stage biopharmaceutical company. As per the agreement, the Company received a one-time cash payment of $220,000 by granting the partner an exclusive license to use the intellectual property for a period of two years. Further, the partner will also have an option to purchase the Company’s intellectual property rights for an incremental $1,000,000 during the license period.
- Debt Facility: The Company has entered into a loan agreement with an arm’s length third-party company, pursuant to which G6 can now draw up to an aggregate principal amount of $1,000,000 on an unsecured basis for a one-year term. Any principal amounts drawn under the facility will accrue interest at a rate of 5.0% per year. The loan can be used for general working capital purposes.