G6 Materials Reports Strong 2Q21 Financial Results
Revenue grew by 383% for the six-month period ending November 30, 2020
Ronkonkoma, New York, USA – The Newswire – February 1, 2021 – 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 second quarter of the fiscal year ending November 30, 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 six-month period ended November 30, 2020 reached $1,675,566, a 383% increase from the $346,693 reported for the same period of the prior year, which was primarily due to strong customer demand for the Company’s air purification products, consulting services provided to third-party clients and the receipt of a one-time payment as per the terms of a license and option agreement.
- Gross profit for the six-month period ended November 30, 2020 was $635,512, a 562% increase from the $96,019 reported for the same period of the prior year, due to the same aforementioned reasons.
- Total expenses for the six-month period ended November 30, 2020 were $832,079, as compared to $620,419 for the same period of the prior year, primarily due to $268,579 of share-based compensation related to the issuance of the options on October 14, 2020.
- Comprehensive loss for the six-month period ended November 30, 2020 was $209,994, as compared to a comprehensive loss of $524,731 reported for the same period of 2019, which was primarily due to reduced expenses in the areas of salaries and benefits as well as research and development.
- Total assets for the period ended November 30, 2020 increased by 15% to $1,342,561 from $1,165,686 for the year ended May 31, 2020 and a 50% increase from $896,299 reported for the same period of last year.
“The first half of the 2021 fiscal year is progressing well as we continue to sell products to meet a steady source of demand. The Company is much better positioned at this time, when compared to the same period last year, and our goal is to sustain the Company’s performance at this level or higher for the rest of this year,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “Our new graphene-enhanced indoor air purification system has been designed and is now being tested. We expect to provide more updates to our customers, shareholders and stakeholders as the launch date for our exciting new product approaches,” added Mr. Stolyarov.
Summary of Key Quarterly Financial Measures (with 2Q20 shown for year-over-year comparison purposes)
Corporate Highlights (all amounts expressed in US dollars unless otherwise noted)
- Debt Facility: During the quarter, the Company entered into a loan agreement with an arm’s length third-party company, pursuant to which G6 can 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.
- New Website: On November 10, 2020, the Company announced that it had unveiled a new corporate website at www.G6-Materials.com. The new website is much faster to load on both desktop and mobile devices, features a responsive design optimized for various display sizes and includes extra content such as stock information, media articles and enhanced contact forms for investors and other stakeholders.
- Air Purification Products: The Company’s research and development team continues to develop a graphene-based technology for an enhanced air filtration system, for which a provisional patent application was filed to protect the intellectual property rights. The new air purification products have passed through the design stage and are currently undergoing testing, with the manufacturing contract also having been recently awarded to an offshore service provider.