GGG:CC - G6 Materials Reports Financial Results for the First Fiscal Quarter of 2023
(TheNewswire)
Ronkonkoma, New York, USA -TheNewswire – October 31, 2022 - G6 Materials Corp. (“G6” or the“Company”) (TSXV:GGG ) ( OTC:GPHBF), ahigh-tech company with expertise in advanced materials and developinginnovative composites for a wide range of industrial uses, announces that it has filed its unaudited financialresults for the first quarter of the fiscal year ending August 31,2022, the highlights of which are included in this news release. Thefull set of Condensed Interim Consolidated Financial Statements andManagement Discussion and Analysis can be viewed by visiting G6’swebsite at www.g6-materials.com or its profile page on SEDAR at www.sedar.com .
Financial Highlights (all amounts expressed in US dollars unless otherwisenoted)
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Revenue for the three-month period ended August 31,2022 was $358,400, which was almost equal to the $358,540 reported forthe previous three-month period.
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Gross profit for the three-month period ended August31, 2022 was $132,930, a decrease from the $183,796 reported for theprevious three-month period, due to a change in product sales mixrelated to seasonal variations.
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Total expenses for the three-month period ended August 31, 2022 was $780,817, from the $539,593 reported for the same period ofthe previous three-month period, due to an increase in general andadministrative expenses related to an increase in spending onmarketing associated with the launch of the Company’sBreathe product line and also due to therestructuring of agreements with the US Army Corps of Engineering.
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Net loss for the three-month period ended August 31,2022 improved to $647,887, as compared to a net loss of $3,132,553reported for the previous three-month period, which was due to the$2,776,756 write-down of the value of the Company’s investment in GXTechnologies per IFRS rules.
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Total assets for the three-month period ended August31, 2022 were $3,122,687, from $3,761,922 reported for the annualperiod ended May 31, 2022.
Management Commentary
“The first quarter of the 2023 fiscal year was asteady one for the Company from a revenue perspective, while capitalcontinued to be allocated to support the recent launch of ourBreathe + products into the marketplace. We also continue to optimizebusiness processes to improve margins and better serve ourdistributors as demand for our air purifiers continues to grow,”said Daniel Stolyarov, President & Co-CEO of G6 Materials Corp.“We expect to advance a number of key initiatives in the nearfuture, in our core area of developing graphene-based solutions aswell as in new research areas,” added Mr. Stolyarov.
Summary of Key Financial Measures (all amounts expressed in US dollars unlessotherwise noted)
The following table contains summary financialinformation taken from the Company’s quarterly financial reportscovering the last five reporting quarters. The information set forthshould be read in conjunction with the audited annual financialstatements, prepared in accordance with International FinancialReporting Standards and the related notes thereon.
| Quarter ended Aug 31, 2022 $ |
| Quarter ended May 31, 2022 $ |
| Quarter ended Feb 28, 2022 $ |
| Quarter ended Nov 30, 2021 $ |
| Quarter ended Aug 31, 2021 $ |
| Revenue |
| 358,400 |
| 358,540 |
| 337,921 |
| 320,204 |
| 341,134 |
| Cost of goods sold |
| (225,470) |
| (174,744) |
| (130,012) |
| (280,821) |
| (169,652) |
| Gross profit |
| 132,930 |
| 183,796 |
| 207,909 |
| 39,383 |
| 171,482 |
| Operating expenses |
| (780,817) |
| (539,593) |
| (630,009) |
| (649,648) |
| (742,676) |
| Other income/ (expenses) |
| - |
| - |
| - |
| - |
| - |
| Net income (loss) |
| (647,887) |
| (3,132,553) |
| (422,100) |
| (610,265) |
| (571,194) |
| Comprehensive income (loss) |
| (626,983) |
| (3,137,058) |
| (404,142) |
| (650,304) |
| (747,028) |
| Net income (loss) per share (basic and diluted) |
| (0.005) |
| ($0.024) |
| ($0.001) |
| ($0.001) |
| ($0.002) |
| Total assets |
| 3,122,687 |
| 3,761,922 |
| 6,916,831 |
| 7,215,304 |
| 8,034,770 |
| Shareholders’ equity |
| 2,872,171 |
| 3,499,906 |
| 6,457,311 |
| 6,861,453 |
| 7,538,004 |
MCTO Lifted
The Company announces that it has fulfilled itsobligations and satisfied the necessary filing requirements related toits annual financial statements and accompanying management’sdiscussion and analysis for the financial year ended May 31, 2021.Therefore, the Management Cease Trade Order granted on September 29,2022 under National Policy 12-203 – Management Cease Trade Ordershas been lifted.
Engagement of IR ServiceProvider
The Company has recently entered into an agreement withCalgary-based Meadowbank Strategic Partners Inc. (" Meadowbank " orthe “ Consultancy ”) to provide investor relations, capital markets andcorporate development advisory services. The agreement between theCompany and the Consultancy is for a minimum cash fee of CA$7,800 permonth plus GST. The term of the agreement is in perpetuity but issubject to a 60-day written notice period for termination.
Neither Meadowbank, nor any of its directors andofficers currently own any securities of the Company or any right toacquire securities of the Company. Meadowbank has not been granted aninterest in or an option to acquire any securities of the Company, andthe fees payable to the Consultancy will be paid from the Company’sworking capital on hand. Meadowbank is an arm’s length party to theCompany. The contract is subject to any necessary approval by the TSXVenture Exchange.
About G6 Materials Corp.
G6 Materials Corp. is a high-tech company withexpertise in advanced materials that creates value developinginnovative composites for a wide range of industrial uses. GrapheneLaboratories Inc., a wholly owned subsidiary of G6, sells a range ofgraphene-based products and other materials, including but not limitedto conductive epoxies, high-performance composites, and R&Dmaterials, with numerous customers from among the Fortune 500 list ofcompanies, as well as NASA and leading universities. GrapheneLaboratories Inc. has entered the global air filtration market withBreathe + , a line of medical-grade HEPA air filtration productsenhanced with advanced performance graphene material.
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 equippedwith advanced analytical and material processing equipment.
The Company’s e-commerce websites are listedbelow:
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Breathe : Medical-grade HEPA airfiltration enhanced with advanced performance graphene material, formore information, visit www.breatheplus.tech
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Conductive Epoxies: Adhesive materials distributedunder the G6-Epoxy TM trade name and can be purchasedat www.g6-epoxy.com
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D Materials: Graphene Laboratories Inc. currentlyoffers over 100 graphene and related products available at www.graphene-supermarket.com
Forward-Looking Information
This news release contains forward-looking statementswithin the meaning of the applicable securities legislation that isbased on expectations, estimates and projections as at the date ofthis news release. By their nature, forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause actual results, performance or achievements, or other futureevents, to be materially different from any future results,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, potentialcommercialization and patent pending thereof); information about thepotential for the Company’s long-term growth; the business goals andobjectives of the Company, and other forward-looking informationconcerning the intentions, plans and future actions of the parties tothe transactions 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; the Companypatent pending (US20210346831A1) may not be granted; the Company maynot achieve anticipated commercial gains or profitability from thesale of Breathe + Pro AdvancedAntimicrobial Graphene Air Filtration System as currently anticipated,or at all; risks associated with adoption by industries ofgraphene-based products health and environmental factors affectingadoption of these technologies; the company may fail to obtainappropriate government approvals or accreditation related to thebusiness’ operations and technological processes; the marketconditions and demand for its product as well as the market prices ofsuch products being developed by the company may change over time;reliance on key personnel; the potential for conflicts of interestamong certain officers, directors or promoters with certain otherprojects; competition; dilution; and the volatility of our commonshare price and volume.
The Company undertakes no obligation to revise orupdate any forward-looking information other than as required by law.
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.
Commercial Inquiries
Daniel Stolyarov, President & Co-CEO
Telephone: (631) 405-5113
Email: info@g6-materials.com
Investor Inquiries
Nick Kuzyk, Investor Relations
Telephone: 1-(866)-324-4244
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 .
SOURCE: G6 Materials Corp.
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