MISSISSAUGA, ON, Oct. 4, 2022
/CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF)
(the "Company" or "Cymat") is pleased to
announce its results for the first quarter of the fiscal 2023 year
– the three months ended July 31,
2022.
Sales for the quarter were approximately $1.1M in comparison to $0.9M for the comparable quarter of the last
fiscal year. Larger AlusionTM sales in the quarter
included the final shipment of panels for installation in a
Lithuanian science museum, panels for a convention centre in
Washington State and a significant
stocking order made by our distributor in China. AlusionTM is expected to
continue as the primary source of revenue for the near future with
significant orders expected for buildings in New York City, Spokane Washington, and South Korea.
The loss from operations of $1.7
(2021 – loss of $1M) included
non-cash charges of $0.8M (2021 -
$0.9M) pertaining to the valuation of
employee/consultant stock options. Additionally, operating expenses
for the current period were increased as a result of the addition
of a second production shift and increases in wages to address the
tight labour market, increased raw material costs resulting from
higher commodity prices and amplified by the strengthening US
dollar and increased production line maintenance costs.
SmartMetalTM sales were minimal for the current
quarter. However, as recently announced, Cymat has received a
long-anticipated order for vehicle blast mitigation kits from an
Asian military vehicle OEM. This initial low-rate production order
is anticipated to eventually extend to SmartMetalTM
underbelly protection systems for up to 700 vehicles for this Asian
military force. The OEM is expected to use this lead order to
market this vehicle to other military forces currently utilized
previous generations of this transport vehicle.
The primary focus of Cymat's business development efforts
continues to be the automotive industry. Under its development
agreement with a global automotive OEM, Cymat continues to advance
its battery box application of SmartMetalTM for an
existing EV. Cymat is also actively discussing the potential of
SmartMetalTM for use in planned future EV models with
this OEM. Conversations with other automotive OEMs and
tier-one manufacturers regarding the ability of
SmartMetalTM to reduce vehicle weight and part
complexity while enhancing crash protection are ongoing.
Key financial data for the three months ended July 31, 2022 and July 31,
2021 include the following (All items in $ 000's, except net
loss per share):
|
Three Months
Ended
|
|
|
|
July 31,
2022
|
July 31,
2021
|
|
|
|
Revenue
|
1,103
|
946
|
Plant operating
expenses
|
1,112
|
556
|
Research and material
testing expenses
|
77
|
31
|
Selling, general and
administrative expenses
|
1,600
|
1,409
|
Loss from
operations
|
(1,686)
|
(1,049)
|
Net loss
|
(1,781)
|
(1,134)
|
Net loss per
share
|
(0.03)
|
(0.02)
|
Operating cash
flow
|
(859)
|
(1,308)
|
Michael Liik, CEO and Chairman
stated that "We are encouraged by the sales growth trajectory in
both our architectural and military verticals for the balance of
the year." He went on to say that "We also expect that our
concerted efforts in the automotive space will generate further
component development programs with both our existing automotive
OEM customer as well as other automotive parts suppliers."
About Cymat Technologies Ltd.
Cymat Technologies Ltd. has the global rights, through patents
and established know-how, to manufacture and sell Stabilized
Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic
material. The proprietary production process entails the injection
of gases through a molten bath of alloyed aluminum infused with
ceramic particles. The result is an advanced, lightweight,
recyclable material that exhibits unique characteristics including:
customizable density and dimensions; mechanical energy absorption;
thermal and acoustic insulation; and time, temperature and
strain-rate insensitivity. A key benefit of this continuous foam
production process is its scalability and resultant low cost of
production. SAF is used in such industries as architectural design,
military and automotive. Cymat markets its architectural SAF under
the AlusionTM brand and its automotive and military SAF
under the SmartMetalTM brand. For further information ,
please visit our website at www.cymat.com.
Certain information set forth in this news release may
contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. All statements other than
statements of historical fact are forward-looking statements,
including, without limitation, statements regarding future
financial position, business strategy, use of proceeds, corporate
vision, proposed acquisitions, partnerships, joint-ventures and
strategic alliances and co-operations, budgets, cost and plans and
objectives of or involving the Company. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
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(including negative variations) of such words and phrases or may be
identified by statements to the effect that certain actions "may",
"could", "should", "would", "might" or "will" be taken, occur or be
achieved. A number of known and unknown risks, uncertainties and
other factors may cause the actual results or performance to
materially differ from any future results or performance expressed
or implied by the forward-looking information. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company including, but not limited to, the impact of general
economic conditions, industry conditions and dependence upon
regulatory approvals. Certain material assumptions regarding such
forward-looking statements may be discussed in this news release
and the Company's annual and quarterly management's discussion and
analysis filed at www.sedar.com. Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The Company does not assume any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required by securities laws.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The Shares have
not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the
United States, or to or for the account or benefit of any
person in the United States,
absent registration or an applicable exemption from the
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an offer to sell or the solicitation of an offer to buy any common
shares in the United States, or in
any other jurisdiction in which such offer, solicitation or sale
would be unlawful. We seek safe harbour.
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Regulator (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release.
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SOURCE Cymat Technologies Ltd.