News Releases

Cymat Reports Q3 Results for Fiscal 2022

Mississauga, Ontario

April 24, 2022 – Mississauga, Ontario – Cymat Technologies Ltd. (TSXV: CYM) (the “Company” or “Cymat”) is pleased to report its results of operations for the third quarter ended January 31, 2022.

Revenue for the third quarter of fiscal 2022 was $468,000 representing a decrease of $658,000, or 58%, compared to revenue from the third quarter of the preceding year of $1,126,000. The Covid-19 pandemic continues to create short-term delays in the timing of architectural deliveries. Alusion™ panels ordered for a Lithuanian science museum façade with a commercial value of $500,000 had not yet reached their final destination due to such delays and, accordingly, were still included in inventory at quarter end. Additionally, a $600,000 Alusion™ order for  the facade of a conventrion centre in Washington State that was originally expected for the third quarter, will now be shipping in the final fiscal quarter. Despite the potential for continued near-term timing extensions, the pipeline of major Alusion™ projects remains robust.

The primary focus of business development efforts continues be the promotion of SmartMetal™’s efficacy in vehicle light-weighting and energy absorption solutions for the automotive sector. Newly developed automotive connections, such as the recently announced collaboration with the Automotive Parts Manufactuing Association (“APMA”), are being leveraged to extend Cymat’s reach deeper into the automotive industry. Production line upgrades are on-going, enhancing Cymat’s ability to demonstrate its high volume manufacturing readiness to automotive OEMs and Tier 1 suppliers.

In the second quarter quarter, Cymat experienced operational difficulties with one of its primary melting furnaces. Repair efforts were hampered by supply chain interruptions and scarcity of skilled technicians. Since then, casting operations have returned to full capacity. However, management is mindful of the potential for further impediments to the timely delivery of essential raw materials and critical manufacturing components. Management is employing enhanced inventory and supply chain management strategies to mitigate potential risks, including holding higher levels of inventory for raw materials and key production consumables. Cymat has also initiated a development program for alternative configurations and formulations pertaining to certain essential consumable production components

Expenses for the nine months ended January 31, 2022 include the recording of $1.7 Million in non-cash expenses – the most prominent being stock option related expenses in the amount of $1.5 Million. The expansion of Cymat’s executive and sales team led to a period-over-period increase in expenses for salaries, recruiting fees, consulting and advisory fees of $676,000. Also, Cymat no longer qualifies for the Canada Emergency Wage Subsidy (“CEWS”) which reduced reported expenses in the comparative nine-month period that ended January 31, 2021 by $232,000.

Key financial data for the three and nine months ended January 31, 2022 and January 31, 2021 include the following (All items in $ 000’s, except net loss per share):

Michael Liik, CEO of Cymat commented, “While we were disappointed by the effects of pandemic-related shipping delays on our revenue for the quarter, our Alusion order book remains strong for Q4 and into the next fiscal year.” Mr Liik further added “We are particularly encouraged by recent advancements in our SmartMetal business development initiatives as they relate to automotive and military verticals.”

About Cymat:

Cymat Technologies Ltd. is an innovative materials technology company employing a proprietary process to manufacture our unique Stabilized Aluminum Foam (“SAF”). Cymat SAF is an advanced lightweight recyclable material with a wide array of features including customizable density and dimensions, energy absorption and thermal and acoustic insulation. Cymat is focused on producing SAF for architecture, blast mitigation, automotive, transportation and industrial markets. Cymat’s architectural brand, Alusion™, has become an accepted choice for superior and unique cladding and façade alternatives for the building industry. The Alusion™ brand is recognized globally, having completed projects on almost every continent.

Cymat’s SmartMetal™ division has developed proven products for energy absorption applications including blast mitigation for the military sector and impact reduction for the nuclear energy sector. Cymat is working with numerous manufacturers and solution providers around the world for the integration of SmartMetal™ into kinetic energy management systems. Cymat is based in Mississauga, just outside Toronto, where it operates a 2.400 sq. metre plant. For further information on Cymat, please visit our Web site www.cymat.com.

For further information: please contact:

Investors and Media:

Michael Liik, CEO
Cymat Technologies Ltd
416-704-6217
liik@cymat.com

Investor Cubed Inc.:
Neil Simon, CEO
647-258-3310
nsimon@investor3.ca