G6 Materials : 2023 Second Quarter Report

G6 MATERIALS CORP.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2022 AND 2021

(Unaudited - Expressed in US Dollars)

Notice of non-review of condensed interim consolidated financial statements

The accompanying condensed interim consolidated financial statements are the responsibility of management and have been approved by the Board of Directors. The Company's independent auditor has not reviewed these condensed interim consolidated financial statements.

The accompanying notes are an integral part of these condensed interim consolidated financial statements

G6 MATERIALS CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT

(Unaudited - Expressed in US Dollars)

		November 31,	May 31,
	Notes	2022	2022
ASSETS		$	$
Current
Cash and cash equivalents		995,637	2,119,429
Amounts receivable	5	49,948	51,672
Inventory	6	783,037	969,993
Prepaid expenses and deposits		93,163	219,128
		1,921,785	3,360,222
Equipment	8	126,772	114,959
Right-of-use asset	7	16,028	112,199
Intangible assets	4	152,722	174,542
		2,217,306	3,761,922
LIABILITIES
Current
Accounts payable and accrued liabilities	9	208,427	148,420
Current portion of lease liability	7	16,472	113,596
		224,899	262,016
SHAREHOLDERS' EQUITY
Share capital	11	16,487,601	16,487,601
Warrants reserve	11	125,605	125,605
Contributed surplus		3,319,123	3,203,059
Accumulated other comprehensive income (loss)		(157,834)	(94,044)
Deficit		(17,782,088)	(16,222,315)
		1,992,407	3,499,906
		2,217,306	3,761,922

Subsequent Event (Note 16)

Approved on behalf of the Board of Directors on January 30, 2023.

"Daniel Stolyarov"	Director	"John Gary Dyal"	Director
Daniel Stolyarov		John Gary Dyal

3

The accompanying notes are an integral part of these condensed interim consolidated financial statements

G6 MATERIALS CORP.

CONDENSED INTERIM ONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED,

(Unaudited - Expressed in US Dollars)

		Three months	Three months	Six months	Six months
		November 30,	November 30, November 30,	November 30,
	Notes	2022	2021	2022	2021
		$	$	$	$
REVENUE		490,527	320,204	848,927	661,338
COST OF GOODS SOLD		(289,056)	(280,821)	(514,526)	(450,473)
		201,471	39,383	334,401	210,865
EXPENSES
Amortization of intangible asset	4	10,910	10,910	21,820	21,820
Amortization of right-of-use asset	7	48,086	22,684	96,171	45,368
Depreciation of equipment	8	8,006	2,470	16,188	6,325
Foreign exchange loss		124	194	171	3,067
Lease interest	7	490	3,006	1,707	6,335
Marketing and investor relations		112,159	86,283	179,771	140,567
Office and administrative		301,450	57,750	380,436	148,549
Professional fees	9	224,164	242,250	319,137	597,722
Regulatory fees		34,383	13,548	34,842	39,950
Research and development		53,646	54,635	140,203	133,109
Salaries and benefits	9	260,469	151,778	582,329	239,281
Share-based compensation	11	56,816	-	116,064	-
Travel expenses		2,654	4,140	5,335	10,231
		(1,113,357)	(649,648)	(1,894,174)	(1,392,324)
OTHER ITEM
License and option fees	11	-	-	-	-
		-	-	-	-
NET LOSS BEFORE INCOME TAXES		(911,886)	(610,265)	(1,559,773)	(1,181,459)
OTHER COMPREHENSIVE INCOME
(LOSS)
Items that may be reclassified subsequently to
income:
Foreign currency translation income (loss)		(24,694)	(40,039)	(63,790)	(215,873)
COMPREHENSIVE LOSS		(936,580)	(650,304)	(1,623,563)	(1,397,332)
(LOSS) PER SHARE - BASIC AND
DILUTED		$ (0.01)	$ (0.01)	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING		163,679,193	128,351,697	163,679,193	128,351,697

4

The accompanying notes are an integral part of these condensed interim consolidated financial statements

G6 MATERIALS CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED,

(Unaudited - Expressed in US Dollars)

		November 30,	November 30,
	Notes	2022	2021
		$	$
OPERATING ACTIVITIES
Net loss for the period		(1,559,773)	(1,181,459)
Non-cash items:
Lease interest	7	1,707	6,335
Amortization of intangible asset	4	21,820	21,820
Amortization of right-of-use asset	7	96,171	45,368
Depreciation of equipment	8	16,188	6,325
Share-based compensation	11	116,064	-
Foreign exchange loss		171	3,067
		(1,307,652)	(1,098,544)
Changes in non-cash working capital items:
Amounts receivable		1,724	(90)
Inventory		186,956	100,677
Prepaid expenses and deposits		125,965	(322,273)
Accounts payable and accrued liabilities		60,007	(7,419)
		(933,000)	(1,327,649)
INVESTING ACTIVITIES
Purchase of equipment	8	(28,000)	(14,450)
		(28,000)	(14,450)
FINANCING ACTIVITIES
Proceeds from issuance of common shares (net)		-	(26,647)
Payments on lease	7	(98,831)	(49,493)
		(98,831)	(75,686)
Change in cash and cash equivalents		(1,059,831)	(1,417,785)
Effect of exchange rate changes on cash		(63,961)	(218,939)
Cash and cash equivalents, beginning		2,119,429	4,878,904
Cash and cash equivalents, ending		995,637	3,242,180

5

The accompanying notes are an integral part of these condensed interim consolidated financial statements