GPHBF - G6 Materials Reports Financial Results for the Second Fiscal Quarter of 2022
(TheNewswire)
Total Assets for the Period EndedNovember 30, 2021 Grew by 22% Compared to the Period Ended May 31,2021
Ronkonkoma, New York, USA -TheNewswire - January 31, 2022 - G6 Materials Corp. (“G6” or the“Company”) (TSXV:GGG )( OTC:GPHBF), a technology company creating value by developing innovativegraphene-based solutions, is pleased to announce that it has filed itsunaudited financial results for the second quarter of the fiscal yearending November 30, 2021, 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)
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Revenue for the three-month period ended November 30,2021 reached $320,204, a slight 6% decrease from the $341,134 reportedfor the previous three-month period, which was primarily due to thedelayed delivery of finished goods due to supply chaindisruptions.
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Gross profit for the three-month period ended November30, 2021 was $39,383, a 77% decrease from the $171,482 reported forthe previous three-month period, due to a significant increase in theshipping costs of direct materials and customer shipments mainly fromthe import of air purification materials and wellness products thatresulted in increased costs of goods sold.
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Net loss for the three-month period ended November 30,2021 decreased by 7% to $610,265, as compared to a net loss of$571,194 reported for the previous three-month period, primarily asthe result of increases in the cost of goods sold, professional fees,marketing and investor relations expenses and office andadministration expenses, which was partially offset by the sale ofintellectual property, consulting services, air purification productsand hygiene products.
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Total assets for the period ended November 30, 2021increased by 22% to $7,215,304 from $5,912,649 for the period endedMay 31, 2021.
Management Commentary
“Despite the supply chain challenges that affectedour second quarter financial results, we have pivoted the Company tobetter deal with the situation by opening a new base of operations inCalifornia, closer to the largest container import terminals on thewest coast and near to our major distributors,” said DanielStolyarov, President & CEO of G6 Materials Corp. “Our team isexcited to have received ISO-9001 Certification for our New Yorkfacility late in 2021, which was required in order to secure anexclusive five-year supply agreement. This advancement, along with anexciting research project with the US Army Corps of Engineers, is agreat way to begin 2022 and continue the evolution of G6 Materials forthe benefit of our shareholders and stakeholders,” added Mr.Stolyarov.
Summary of Key Quarterly FinancialMeasures
(all amounts expressed in US dollars unless otherwisenoted, with 2Q21 shown for year-over-year comparison purposes)
| Quarter ended Nov 30, 2021 $ |
| Quarter ended Aug 31, 2021 $ |
| Quarter ended May 31, 202 $ |
| Quarter ended Feb 28, 2021 $ |
| Quarter ended Nov 30, 2020 $ |
| Revenue |
| 320,204 |
| 341,134 |
| 220,672 |
| 263,425 |
| 506,140 |
| Cost of goods sold |
| (280,821) |
| (169,652) |
| (478,223) |
| (193,993) |
| (237,236) |
| Gross profit |
| 39,383 |
| 171,482 |
| (257,551) |
| 69,432 |
| 268,904 |
| Operating expenses |
| (649,648) |
| (742,676) |
| (642,057) |
| (476,373) |
| (530,525) |
| Other income/ (expenses) |
| - |
| - |
| - |
| 83,300 |
| - |
| Net income (loss) |
| (610,265) |
| (571,194) |
| (899,609) |
| (323,641) |
| (261,621) |
| Comprehensive income (loss) |
| (650,304) |
| (747,028) |
| (407,455) |
| (321,152) |
| (320,759) |
| Net income (loss) per share (basic and diluted) |
| ($0.001) |
| ($0.002) |
| ($0.008) |
| ($0.002) |
| ($0.002) |
| Total assets |
| 7,215,304 |
| 8,034,770 |
| 5,912,649 |
| 1,617,187 |
| 1,342,561 |
| Shareholders’ equity |
| 6,861,453 |
| 7,538,004 |
| 5,525,214 |
| 836,567 |
| 802,039 |
Subsequent Highlighted Events (all amounts expressed in US dollars unlessotherwise noted)
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New Base of Operations inCalifornia : On December 1, 2021, the Companyannounced that its wholly owned subsidiary, Graphene Laboratories,Inc., is opening new location in Cerritos, California. The newlocation is a 3,895 square foot office and warehouse facility locatedat 16220 Manning Way in Cerritos, California, and will be mainly usedas a distribution center for the Company’s products. In addition,the Company has also engaged the services of a California-basedthird-party logistics company to increase its distribution capacity.
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ISO 9001 Certification and Exclusive5-Year Supply Agreement with Global Microconnector Company : On December 14, 2021, the Company announced that its whollyowned subsidiary, Graphene Laboratories, Inc., recently received ISO9001 certification (“ISO 9001”) for its manufacturing facility inRonkonkoma, New York. Obtaining ISO 9001 was a prerequisite for G6 toenter into an exclusive five-year supply agreement with a globalmicroconnector company headquartered in Europe. Although the terms ofthe agreement are confidential, the Company’s client is well knownin the design, manufacture and sale of flexible printed circuits.Pursuant to the terms and conditions of the agreement, G6 shall supplyits products for a variety of smartcard applications.
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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.
About G6 Materials Corp.
G6 Materials Corp. is a technology company creatingvalue through the development of innovative graphene-based solutions.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 comprised of 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. , with its ISO 9001-certified facility located inRonkonkoma, New York, has established its premium research laboratoryand scalable production facility and is equipped with apilot-scale graphene oxide reactor as well as advanced analytical and material processing equipment.
The Company’s e-commerce websites are listedbelow:
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Conductive Epoxies: Adhesive materials distributedunder the G6-Epoxy TM trade name and can be purchased at 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
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:
Telephone: (631) 405-5113
Email: info@g6-materials.com
Investor Inquiries:
Telephone: (631) 405-5114
Email: investors@g6-materials.com
ON BEHALF OF THE BOARD: Daniel Stolyarov, President& 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 theirnature, forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause actual results,performance or achievements, or other future events, to be materiallydifferent from any future results, performance or achievementsexpressed or implied by such forward-looking statements.“Forward-looking information” in this news release includes but isnot limited to information about the graphene-enhanced air purifier(including efficacy and potential commercialization thereof);information about the potential for the Company’s long-term growth;the business goals and objectives of the Company, and otherforward-looking information concerning the intentions, plans andfuture actions of the parties to the transactions described herein andthe 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 thegraphene-enhanced air purifier; the Company may not receive requiredapprovals from regulatory agencies to commercialize thegraphene-enhanced air purifier; the Company may not achieve furtherstages of commercialization of the graphene-enhanced air purifier asanticipated, or at all; risks associated withadoption by industries of graphene-based products health andenvironmental factors affecting adoption of these technologies; thecompany may fail to obtain appropriate government approvals oraccreditation related to the business’ operations and technologicalprocesses; the results of the tests being performed by an independentlaboratory may be unsatisfactory and prevent the company fromreceiving government approvals and accreditations; 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 bylaw.
SOURCE: G6 Materials Corp.
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