Symbols: TSXV: CYM
OTCQB: CYMHF
MISSISSAUGA, ON,
Jan. 3,
2023 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM)
(OTCQB: CYMHF) (the "Company" or "Cymat") is pleased
to announce its results for the second quarter of the fiscal 2023
year – the three months ended October 31,
2022.
Sales for the quarter were approximately $1.0M in comparison to $0.4M for the comparable quarter of the last
fiscal year. AlusionTM sales included significant orders
shipped to Eastern Asia and an
order for a large American-based internet search engine company.
Current quarter sales also included sales of
SmartMetalTM to an Asian Original Equipment Manufacturer
("OEM") for under-belly blast protection on military personnel
carriers as well as an order for protective material used in the
French nuclear energy industry. Revenue in the comparative
quarter were impacted by maintenance down-time on the casting line,
with supply chain interruptions that extended the repair time
beyond the typical timeframe.
The loss from operations of $1.3
(2021 – loss of $1.0M) included
non-cash charges of $0.4M (2021 -
$0.2M) 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, increases in
wages to address the tight labour market, increased depreciation
and maintenance expenses resulting from production line upgrades
and increased business development expenditures.
Prior to the end of December 2022,
Cymat shipped two more SmartMetalTM blast mitigation
kits to the Asian military vehicle OEM, with a further three kits
expected to ship early in this new calendar year. These kits are
part of a low-rate initial production order for an Asian military
force anticipated to eventually deploy up to 700 vehicles equipped
with SmartMetalTM blast protection.
Cymat continues to emphasize the automotive industry in business
development efforts. As announced in December, Cymat commenced a
second component development agreement with a global automotive
OEM. This component will employ SmartMetalTM in a system
to provide battery side impact protection for a new mid-sized EV
platform. Initial annual vehicle volumes are forecast to be in the
50,000-vehicle range, expanding to several hundred thousand
vehicles per year as more models are introduced on the platform.
With the assistance of our design partner, Tesseract, Cymat expects
to complete the design phase for this component by the end of the
first calendar quarter of 2023.
Key financial data for the three and six months ended
October 31, 2022 and October 31, 2021 include the following (All items
in $ 000's, except net loss per share):
|
Three Months
Ended
October
31
|
Six Months
Ended
October
31
|
|
|
|
|
|
|
2022
|
2021
|
2022
|
2021
|
|
($)
|
($)
|
($)
|
($)
|
|
|
|
|
|
Revenue
|
1,049
|
386
|
2,153
|
1,332
|
|
|
|
|
|
Plant operating
expenses
|
1,035
|
426
|
2,147
|
982
|
Research and material
testing expense
|
39
|
85
|
116
|
116
|
Selling, general and
administrative expenses
|
1,276
|
837
|
2,876
|
2,245
|
Loss from
operations
|
(1,301)
|
(962)
|
(2,986)
|
(2,011)
|
Net loss
|
(1,461)
|
(1,042)
|
(3,242)
|
(2,176)
|
Net loss per
share
|
(0.02)
|
(0.02)
|
(0.06)
|
(0.02)
|
|
|
|
|
|
Operating cash
flow
|
(910)
|
(1,096)
|
(1,769)
|
(2,405)
|
Michael Liik, CEO and Chairman
stated that "We are anticipating increased sales activity in both
our architectural and military product lines in the two remaining
quarters of our fiscal year." He further added "As well, by
March 2023, we expect a final
decision from our automotive OEM customer on whether it will
incorporate our SmartMetal components on two of the car
manufacturer's EV platforms."
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)
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SOURCE Cymat Technologies Ltd.