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
Plant operating expenses
Research and material testing expenses
Selling, general and administrative expenses
Loss from operations
Net loss per share
Operating cash flow
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", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (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 registration requirements. This press release shall not constitute 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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SOURCE Cymat Technologies Ltd.
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