GPHBF - G6 Materials Reports 2020 Annual Financial Results

(TheNewswire)

Results feature record quarterlyrevenues in 4Q20, which increased by 2.4x over 3Q20

Ronkonkoma, New York, USA - TheNewswire - October 1, 2020 - G6Materials Corp. ("G6" or the "Company") (TSXV:GGG )( OTC:GPHBF) , a technologycompany and world-leader in creating value through innovativegraphene-based solutions , is pleasedto announce that it has filed its audited financial results for thefiscal year ending May 31, 2020, the highlights of which are includedin this news release. The full set of Consolidated FinancialStatements and Management Discussion and Analysis can be viewed byvisiting G6's website at www.g6-materials.com or its profilepage on SEDAR at www.sedar.com .

Financial Highlights

• - Revenue for the fourth quarter ended May 31, 2020reached a record level of $406,684, which is a 2.4x increase from the$169,237 reported for the third quarter of 2020 and a 2.0x increasefrom the $206,609 reported for the same period of the prioryear

  - Revenue for the year ended May 31, 2020 was $922,614,which is similar to the $946,834 reported in the previous fiscalyear

  - Comprehensive loss for the fourth quarter ended May31, 2020 was $251,168, a 11% increase from the $226,213 reported forthe third quarter of 2020 and a 248% increase from the $72,212reported for the same period of 2019

  - Comprehensive loss for the year ended May 31, 2020was $1,002,112, a 69% increase from the $601,565 reported for the sameperiod of 2019

  - Total assets for the year ended May 31, 2020increased by 9% to $1,165,686 from $1,066,851 for the same period oflast year

Management Commentary

The Company's fiscal year was especially challengingdue to the COVID-19 outbreak. "We started to experience thepandemic's negative impacts in the third fiscal quarter, initially dueto a decline in demand for research products because the universitiesand research laboratories in Asia were closed due to people being inquarantine," said Daniel Stolyarov, President & CEO of G6Materials Corp. "The pandemic reached our place of business inthe fourth quarter and, by the various orders of the Government ofthe State of New York, our operations were ultimately forced to slowdown due to some personnel working remotely. However, despite thesechallenges management found exciting new business opportunitiesrelated to the sale of disinfection and purification products,"added Mr. Stolyarov. Based on the Company's success in selling airfiltration products, G6 has continued to pursue this marketopportunity.

Summary of Key Quarterly FinancialMeasures for the 2020 Fiscal Year

(with 4Q19 shown for year-over-yearcomparison purposes)

---------------------------------------------------------------------- |  |Quarter |Quarter |Quarter |Quarter |Quarter | | |ended |ended |ended |ended |ended | | |May 31, |Feb.29, |Nov.30, |Aug 31, |May 31, | | |2020 |2020 |2019 |2019 |2019 | | |$ |$ |$ |$ |$ | |--------------------------------------------------------------------| |Revenue |406,684 |169,237 |150,765 |195,928 |206,609 | |--------------------------------------------------------------------| |Cost of goods sold |-365,059 |-104,636|-128,215|-122,459 |-13,851 | |--------------------------------------------------------------------| |Gross profit (loss) |41,625 |64,601 |22,550 |73,469 |192,758 | |--------------------------------------------------------------------| |Operating expenses |-327,385 |-292,789|-366,501|-253,918 |-337,404| |--------------------------------------------------------------------| |Net loss |-261,760 |-228,188|-343,951|-180,449 |-171,319| |--------------------------------------------------------------------| |Comprehensive loss |-251,168 |-226,213|-343,996|-180,735 |-72,212 | |--------------------------------------------------------------------| |Net loss per share | -$0.002 |-$0.003 |-$0.005 |-$0.002 |-$0.001 | |(basic and diluted) | | | | | | |--------------------------------------------------------------------| |Total assets |1,165,686|740,029 |896,299|1,057,297|1,066,851| |--------------------------------------------------------------------| |Shareholders’ equity|716,600 |254,399 |480,612 |664,136 |844,871 | ----------------------------------------------------------------------

Corporate Highlights

• - Marine CompositeProject: As previously announced, the Companyentered into a research agreement with a Singapore-based firm todevelop a graphene composite for marine vessels. This project wasmostly completed in the fiscal year of 2020, which the Companyreported as complete in August of 2020. While working on this project,the Company developed two composite formulations using grapheneadditives with carbon fiber and fiberglass that provide a 14-foldimprovement of fracture toughness and a 3-fold improvement of fatigueresistance. These results were reported in an event at Capitol Hill(Washington DC, USA) and at the TechConnect World Innovation Expo.Detailed technical specifications can be found at the Company's website.

• - Pharma Project: In October of 2019, the Company was granted a patent from USPatent Office for its proprietary technology involving the synthesisof trifluoroketones, which serves as a key intermediate step in thesynthesis of a drug under development by the Company's pharmaceuticalindustry partner. This drug is being tested for the treatment ofcertain lung conditions and, in June of 2020, the Company signed alicensing agreement with its partner. According to the terms of thisagreement, in exchange for a US$220,000 payment the Company isproviding a 2-year exclusive license and an option to purchase the IPrights for a fixed price of US$1,000,000.

• - Air PurificationProject: In the last quarter of the fiscal year,to address the demand for air purification products as a result of theglobal coronavirus pandemic the Company added a line of existing airpurification products to its portfolio. Further, the Company'sresearch and development team developed a graphene-based technology tocreate an enhanced air filtration system. Subsequently, a provisionalpatent application was filed to protect the IP rights for thistechnology.

Outlook

Despite the global COVID-19 pandemic presenting societywith numerous challenges in 2020, it has also created opportunities toidentify areas for improvement, apply new technologies and makepermanent advancements for the future. Based on G6's recent success inselling air filtration and purification products to meet a surge indemand, the Company has continued to allocate resources in pursuit ofthis market opportunity. Management expects this positive trend tocontinue into the 2021 fiscal year and is working to develop a newline of proprietary, graphene-based, air filtration products to launchinto the market. In parallel, G6 will continue to sell its legacyproduct lines and strengthen its portfolio of intellectual propertythrough further research and development.

About G6 MaterialsCorp.

G6 Materials Corp. is a technology company andworld-leader in creating value through innovative graphene-basedsolutions. The Company is strategically focused on serving the globalair filtration and purification market with new products to meetgrowing demand. G6 also sells a range of graphene-based products andother materials, including but not limited to 3D printing materials,conductive epoxies, fine chemicals, high performance composites andR&D materials, with numerous customers from among the Fortune 500list of companies, as well as NASA and leading universities.

G6 has identified new graphene-based applications toaccelerate growth into the future. Accordingly, the Company has avaluable IP portfolio currently comprised of three granted patents,three provisional patents and five patent applications filed. TheCompany's management team and employees have a deep understanding ofgraphene technology based on decades of aggregate academic andcommercial experience. Located in Ronkonkoma, New York, its premiumresearch laboratory and scalable production facility is equipped withadvanced analytical and material processing equipment.

The Company's e-commerce websites are listedbelow:

• - 3D Printing: 3D printable filaments can be purchased at BlackMagic3D.com

  - Conductive Epoxies: Adhesive materials distributed under theG6-Epoxy TM trade name and can be purchased at g6-epoxy.com

  - Fine Chemicals: ChemApproach is a worldwide supplier of a wide variety ofunique chemical building blocks, which can be found at chemapproach.com

  - R&D Materials: Graphene Laboratories Inc. currently offers over 100graphene and related products available at Graphene-Supermarket.com

Forward-Looking Information

This news release may contain forward-lookingstatements. Forward-looking statements are statements that relate tofuture, not past, events. In this context, forward-looking statementsoften address a company's expected future business and financialperformance, and often contain words such as "anticipate,""believe," "plan", "estimate","expect", and "intend", statements that an actionor event "may", "might", "could","should", or "will" be taken or occur, or othersimilar expressions. By their nature, forward-looking statementsinvolve known and unknown risks, uncertainties and other factors whichmay cause our actual results, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking statements. Such factors include, among others, thefollowing risks: the risks associated with outstanding litigation, ifany; risks associated with adoption by industries of graphene-basedproducts health and environmental factors affecting adoption of thesetechnologies; reliance on key personnel; the potential for conflictsof interest among certain officers, directors or promoters withcertain other projects; the absence of dividends; competition;dilution; the volatility of our common share price and volume; and taxconsequences to U.S. Shareholders. Forward-looking statements are madebased on management's beliefs, estimates and opinions on the date thatstatements are made, and the Company undertakes no obligation toupdate forward-looking statements if these beliefs, estimates, andopinions or other circumstances should change. Investors are cautionedagainst attributing undue certainty to forward-looking statements.Albeit the operation of newly suggested productsare based on strong scientific evidence, the Company cannot guaranteethe performance parameters of the new products and their efficiencyagainst the specific microbes including all types of viruses andbacteria until testing is completed. Further, the Company can notguarantee any outcomes of such testing.

Neither the TSX Venture Exchange nor its regulationservices provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this news release.

Commercial Inquiries

Daniel Stolyarov, President & CEO

Telephone: (631) 405-5113

Email: daniel.stolyarov@graphene3Dlab.com

Investor Inquiries

G6 Investor Relations

Telephone: (631) 405-5114

Email: investors@graphene3Dlab.com

ON BEHALF OF THE BOARD: Daniel Stolyarov, President& CEO

SOURCE: G6 Materials Corp.

For more information on G6 Materials Corp., pleasevisit www.G6-Materials.com or its profile page on SEDAR at www.sedar.com.

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