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Revenue grew by 383% for the six-month period ending November 30, 2020
G6 Materials Corp. ("G6" or the "Company") (TSXV:GGG ) ( OTC: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.
Management Commentary
"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)
Quarter ended Nov 30, 2020 $ | Quarter ended Aug 31, 2020 $ | Quarter ended May 31, 2020 $ | Quarter ended Feb.29, 2020 $ | Quarter ended Nov.30, 2019 $ | |
Revenue | 506,140 | 1,169,426 | 406,684 | 169,237 | 150,765 |
Cost of goods sold | (297,236) | (742,818) | (365,059) | (104,636) | (128,215) |
Gross profit | 208,904 | 426,608 | 41,625 | 64,601 | (5) 22,550 |
Operating expenses | (530,525) | (301,554) | (327,385) | (292,789) | (366,501) |
Net income (loss) | (321,621) | 125,554 | (261,760) | (228,188) | (343,951) |
Comprehensive income (loss) | (320,759) | 110,765 | (251,168) | (226,213) | (343,996) |
Net income (loss) per share (basic and diluted) | ($0.002) | $0.002 | ($0.002) | ($0.003) | ($0.005) |
Total assets | 1,342,561 | 1,472,872 | 1,165,686 | 740,029 | 896,299 |
Shareholders' equity | 802,039 | 855,943 | 716,600 | 254,399 | 480,612 |
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.
About G6 Materials Corp.
G6 Materials Corp. is a technology company and world-leader in creating value through the development of innovative graphene-based solutions. The Company is strategically focused on serving the global air filtration and purification market with new products to meet growing demand. G6 also sells a range of graphene-based products and other materials, including but not limited to 3D printing materials, conductive epoxies, fine chemicals, high performance composites and R&D materials, with numerous customers from among the Fortune 500 list of companies, as well as NASA and leading universities.
G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprised of three granted patents, three provisional patents and five patent applications filed. The Company's management team and employees have a deep understanding of graphene technology based on decades of aggregate academic and commercial experience. Located in Ronkonkoma, New York, its premium research laboratory and scalable production facility is equipped with advanced analytical and material processing equipment.
The Company's e-commerce websites are listed below:
- Conductive Epoxies: Adhesive materials distributed under the G6-Epoxy TM trade name and can be purchased at g6-epoxy.com
- Fine Chemicals: ChemApproach is a worldwide supplier of a wide variety of unique chemical building blocks, which can be found at chemapproach.com
- R&D Materials: Graphene Laboratories Inc. currently offers over 100 graphene and related products available at Graphene-Supermarket.com
Forward-Looking Information
This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. F orward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate," "believe," "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with adoption by industries of graphene-based products health and environmental factors affecting adoption of these technologies; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. Albeit the operation of newly suggested products are based on strong scientific evidence, the Company cannot guarantee the performance parameters of the new products and their efficiency against the specific microbes including all types of viruses and bacteria until testing is completed. Further, the Company can not guarantee any outcomes of such testing.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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., please visit www.G6-Materials.com or its profile page on SEDAR at www.sedar.com.
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