GGG:CC - G6 Materials Reports 30% Increase in Revenue 199% Increase in Gross Profit for the Third Fiscal Quarter of 2022

(TheNewswire)

Ronkonkoma, New York, USA - TheNewswire - May 2, 2022 - G6 MaterialsCorp. (“G6” or the “Company”) (TSXV:GGG ) ( OTC:GPHBF), a high-tech company with expertisein advanced materials and developing innovative composites for a widerange of industrial uses, is pleased to announce that it has filed itsunaudited financial results for the third quarter of the fiscal yearending February 28, 2022, the highlights of which are included in thisnews release. The full set of Condensed Interim 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 (all amountsexpressed in US dollars unless otherwise noted)

Third Quarter 2022 FinancialResults

• Revenues were $337,921, an increase of 28% from the$263,425 reported for the third quarter of 2021.

• Gross profit was $207,909, a 199% increase from the$69,432 reported for the previous three-month period, due to increasedsales and improved management  and cost allocation of inventory,partially offset by the increase in the shipping costs as a result ofthe pandemic effect.

• Total expenses were $630,009, as compared to $476,373for the third quarter of 2021, due to an increase in research anddevelopment expenses.

• Comprehensive loss for the three-month period endedFebruary 28, 2022 increased by 26% to $404,152, as compared to acomprehensive loss of $321,152 for the third quarter of 2021.

Nine Months Ended February 28, 2022Financial Results:

• Revenue for the nine-month period ended February 28,2022 was $999,259, a 48% decrease from the $1,938,991 reported for thesame period of 2021, which was primarily due to consulting servicesprovided to third-party clients, the ongoing sale of the Company’sair purification products and the receipt of a one-time payment as perthe terms of a license and option agreement, all occurring in fiscalyear 2021.

• Gross profit for the nine-month period ended February28, 2022 was $418,774, a 41% decrease from the $704,944 reported forthe same period of the prior year, due to the same aforementionedreasons in 2021.

• Total expenses for the nine-month period ended February28, 2022 were $2,022,333, as compared to $1,308,452 for the sameperiod of the prior year, primarily due to an increase in research anddevelopment expenses, office and administrative expenses, andprofessional fees.

• Comprehensive loss for the nine-month period endedFebruary 28, 2022 was $1,801,474, an increase of 239% as compared to acomprehensive loss of $531,146 reported for the same period of theprior year, which was primarily due to a combination of the reasonsprovided above.

• As of February 28, 2022, total assets were $6,916,831,compared with $5,912,649 on May 31, 2021.

Summary of Key Quarterly FinancialMeasures

(all amounts expressed in US dollars unless otherwisenoted)

Management Commentary

Daniel Stolyarov, President & Co-CEO of G6Materials Corp. commented, “We are pleased to report successfulthird quarter earnings, where we saw continued strong demand for ourinnovative formulations, along with impressive customer response tothe relaunch of Graphene Supermarket. Together with the impendinglaunch of our Breathe+ Pro medical grade air purifier product in thecoming weeks, along with several major customer deals in the pipeline,we anticipate a very strong close to our fiscal year. Looking ahead, Iam excited about the progress we are making in streamlining ouroperations, to scale up our manufacturing capacity to meet the growingdemand for our products.”

Business Highlights for the ThreeMonths Ended February 28, 2022 and Subsequent Events:

• New Base of Operations inCalifornia : On December 1, 2021, the Companyannounced that its wholly owned subsidiary, Graphene Laboratories,Inc., opened a new location in Cerritos, California, that is used as adistribution center for the Company’s products. In addition, theCompany has also engaged the services of a California-basedthird-party logistics company to increase its distribution capacity.

• ISO 9001 Certification : On December 14, 2021, the Company announced that its whollyowned subsidiary, Graphene Laboratories, Inc., received ISO 9001certification (“ISO 9001”) for its manufacturing facility inRonkonkoma, New York.

• Exclusive 5-Year Supply Agreementwith Global Microconnector Company: On December14, 2021, upon ISO 9001 Certification, G6 entered into a long-termsupply contract with an established client in the design, manufactureand sale of flexible printed circuits. Pursuant to the terms andconditions of the agreement, G6 shall supply its products for avariety of smartcard applications.

• Testing Services Agreement with theU.S. Army Engineer Research Development Center :On January 17, 2022, the Company announced that its wholly ownedsubsidiary, Graphene Laboratories, Inc., had entered into a TestingServices Agreement with the U.S. Army Engineer Research DevelopmentCenter in Vicksburg, Mississippi. The Company will assess the abilityof graphene oxide materials to solve environmental challenges throughthe adsorptive removal of contaminants.

• Launch of Redesigned Website forGraphene Supermarket (GSM) : On March 1, 2022,the Company announced the launch of its redesigned website forGraphene Supermarket (GSM) at www.graphene-supermarket.com . Theredesigned website features an updated visual identity, along with animproved user interface and more streamlined and accessible websitedesign experience for customers.

• Expanded its Executive Leadership andOperations Team to Support the Company in its Next Phase ofGrowth : On March 21, 2022, the Company announcedthe expansion of its executive leadership and operations team tosupport the Company in its next phase of growth. Elena Polyakova hadrejoined G6 as Co-Chief Executive Officer and Director, while RomanRabinovich stepped down as a member of the Board of Directors. TheCompany also hired Scott Pelt as Financial Controller and MatthewAbenante, IRC as Head of Investor Relations.

About G6 Materials Corp.

G6 Materials Corp. is a high-techcompany with expertise in advanced materials and developing innovativecomposites for a wide range of industrial uses .Graphene Laboratories Inc., a wholly owned subsidiary of G6, sells arange of graphene-based products and other materials, including butnot limited to conductive epoxies, high-performance composites, andR&D materials, with numerous customers from among the Fortune 500list of companies, as well as NASA and leading universities. GrapheneLaboratories Inc. is developing other innovative products includinggraphene-enhanced air purifiers and it plans to enter the globalfiltration market once all testing is complete and applicablegovernment approvals are received.

G6 has identified new graphene-based applications toaccelerate growth into the future. Accordingly, the Company has avaluable IP portfolio currently comprising five granted patents. TheCompany’s management team and employees have a deep understanding ofgraphene technology based on decades of aggregate academic andcommercial experience. Graphene Laboratories Inc., a wholly ownedsubsidiary of G6 located in Ronkonkoma, New York, has established itspremium research laboratory and scalable production facility isequipped with advanced analytical and material processingequipment.

The Company’s e-commerce websites are listedbelow:

• Conductive Epoxies: Adhesive materials distributedunder the G6-Epoxy TM trade name and can be purchased at www.g6-epoxy.com

• D Materials: Graphene Laboratories Inc. currentlyoffers over 100 graphene and related products available at www.graphene-supermarket.com

Contact Details:

Commercial Inquiries:

Telephone: (631) 405-5113

Email: info@g6-materials.com

Investor Inquiries:

Matthew Abenante, IRC

Head of Investor Relations

Telephone: (631) 405-5114

Email: investors@g6-materials.com

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

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

Forward-Looking Information

This news release contains forward-looking statements within the meaning of the applicable securitieslegislation that is based on expectations, estimates and projectionsas at the date of this news release. By their nature, forward-lookingstatements involve known and unknown risks, uncertainties and otherfactors which may cause actual results, performance or achievements,or other future events, to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking statements. “Forward-looking information” in thisnews release includes but is not limited to information about thegraphene-enhanced air purifier (including efficacy and potentialcommercialization thereof); information about the potential for theCompany’s long-term growth; the business goals and objectives of theCompany, and other forward-looking information concerning theintentions, plans and future actions of the parties to thetransactions described herein and the terms thereon.

The forward-looking information in this news releasereflects the current expectations, assumptions and/or beliefs of theCompany based on information currently available to the Company.Although the Company believes that the assumptions inherent in theforward-looking information are reasonable, forward-lookinginformation is not a guarantee of future performance and accordinglyundue reliance should not be put on such information due to theinherent uncertainty therein.

Risk factors that could cause actual results to differmaterially include, but are not limited to, the risk that actualresults in commercial applications of the graphene-enhanced airpurifier may differ significantly from the Test Results; the TestResults may not be accepted by applicable regulatory agencies requiredto approve commercialization of the graphene-enhanced air purifier;the Company may not receive required approvals from regulatoryagencies to commercialize the graphene-enhanced air purifier; theCompany may not achieve further stages of commercialization of thegraphene-enhanced air purifier as anticipated, or at all; risksassociated with adoption by industries of graphene-based productshealth and environmental factors affecting adoption of thesetechnologies; the company may fail to obtain appropriate governmentapprovals or accreditation related to the business’ operations andtechnological processes; the results of the tests being performed byan independent laboratory may be unsatisfactory and prevent thecompany from receiving government approvals and accreditations; themarket conditions and demand for its product as well as the marketprices of such products being developed by the company may change overtime; reliance on key personnel; the potential for conflicts ofinterest among certain officers, directors or promoters with certainother projects; competition; dilution; and the volatility of ourcommon share price and volume.

The Company undertakes no obligation to revise orupdate any forward-looking information other than as required bylaw.

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.

SOURCE: G6 Materials Corp.

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