G6 Materials : Quarterly Report

G6 MATERIALS CORP.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 AND 2020

(Unaudited - Expressed in US Dollars)

Notice of non-review of condensed interim consolidated financial statements

The accompanying condensed interim consolidated financial statements for the six month period ended November 30, 2021 and 2020 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 NOVEMBER 30, 2021 AND MAY 31, 2021

(Unaudited - Expressed in US Dollars)

		November 30,	May 31,
	Notes	2021	2021
ASSETS		$	$
Current
Cash and cash equivalents		3,242,180	4,878,904
Amounts receivable	5	24,980	24,890
Inventory	6	286,198	386,875
Prepaid expenses and deposits		463,990	141,717
		4,017,348	5,432,386
Equipment	8	35,802	27,677
Right-of-use asset	7	189,036	234,404
Intangible assets	4	2,973,118	218,182
		7,215,304	5,912,649
LIABILITIES
Current
Accounts payable and accrued liabilities	9	159,693	150,173
Current portion of lease liability	7	44,414	87,529
		204,107	237,702
Long-term portion of lease liability	7	149,744	149,733
		353,851	387,435
SHAREHOLDERS' EQUITY
Share capital	12	16,487,601	13,754,030
Warrants reserve	12	125,605	125,605
Contributed surplus		3,023,406	3,023,406
Accumulated other comprehensive income (loss)		(107,497)	108,376
Deficit		(12,667,662)	(11,486,203)
		6,861,453	5,525,214
		7,215,304	5,912,649

Approved on behalf of the Board of Directors on January 28, 2022:

"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 CONSOLIDATED 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	2021	2020	2021	2020
		$	$	$	$
REVENUE		320,204	506,140	661,338	1,675,566
COST OF GOODS SOLD		(280,821)	(297,236)	(450,473)	(1,040,054)
		39,383	208,904	210,865	635,512
EXPENSES
Amortization of intangible asset	4	10,910	10,910	21,820	21,820
Amortization of right-of-use asset	7	22,684	22,955	45,368	45,910
Depreciation of equipment	8	2,470	16,847	6,325	33,709
Foreign exchange loss		194	591	3,067	2,315
Lease interest	7	3,006	238	6,335	829
Marketing and investor relations		86,283	38,962	140,567	66,923
Office and administrative		57,750	48,739	148,549	110,097
Professional fees	9	242,250	34,734	597,722	141,392
Regulatory fees		13,548	7,180	39,950	11,197
Research and development		54,635	30,389	133,109	51,620
Salaries and benefits	9	151,778	49,061	239,281	77,323
Share-based compensation	11	-	268,579	-	268,579
Travel expenses		4,140	1,340	10,231	365
		(649,648)	(530,525)	(1,392,324)	(832,079)
NET LOSS BEFORE INCOME TAXES		(610,265)	(321,621)	(1,181,459)	(196,567)
OTHER COMPREHENSIVE INCOME (LOSS)
Items that may be reclassified subsequently to income:
Foreign currency translation income (loss)		(40,039)	862	(215,873)	(13,427)
COMPREHENSIVE LOSS		(650,304)	(320,759)	(1,397,332)	(209,994)
INCOME (LOSS) PER SHARE - BASIC AND
DILUTED		$ (0.00)	$ 0.00	$ (0.01)	$ (0.00)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING		128,351,697	82,037,317	128,351,697	82,037,317

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	2021	2020
		$	$
OPERATING ACTIVITIES
Net loss for the period		(1,181,459)	(196,567)
Non-cash items:
Lease interest	7	6,335	829
Amortization of intangible asset	4	21,820	21,820
Amortization of right-of-use asset	7	45,368	45,910
Depreciation of equipment	8	6,325	33,709
Share-based compensation	11	-	268,579
Foreign exchange loss		3,067	2,315
		(1,098,544)	176,595
Changes in non-cash working capital items:
Amounts receivable		(90)	(7,012)
Inventory		100,677	(497,488)
Prepaid expenses and deposits		(322,273)	(12,585)
Accounts payable and accrued liabilities		(7,419)	138,607
		(1,327,649)	(201,883)
INVESTING ACTIVITIES
Purchase of equipment	8	(14,450)	-
		(14,450)	-
FINANCING ACTIVITIES
Proceeds from issuance of common shares (net)	12	(26,247)	-
Principal payments on lease	7	(49,439)	(48,000)
		(75,686)	(48,000)
Change in cash and cash equivalents		(1,417,785)	(249,883)
Effect of exchange rate changes on cash		(218,939)	11,112
Cash and cash equivalents, beginning		4,878,904	561,711
Cash and cash equivalents, ending		3,242,180	322,940

5

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