Graphene & Solar Technologies Reports $2.64 Million Net Loss for Fiscal Year 2024

Graphene & Solar Technologies Ltd (GSTX) reported a net loss of $2.64 million for the fiscal year ending September 30, 2024, compared to a loss of $1.31 million in the previous year. The company generated no revenue during both fiscal periods, leading to a total operating expense of $2.56 million, which increased significantly from $1.27 million in 2023. The rise in operating expenses is attributed primarily to higher costs associated with professional services, including market development and legal fees.

In terms of financial position, GSTX's total assets increased to $306,713 as of September 30, 2024, up from $18,130 a year earlier. This growth is largely due to the acquisition of Ausquartz Group Holdings, which contributed significantly to the company's asset base. The company also reported a reduction in total liabilities from $4.99 million in 2023 to $3.14 million in 2024, primarily due to the sale of its subsidiary, US Thin-Film Corporation. The working capital deficit improved to $3.01 million from $4.98 million, reflecting a strategic effort to streamline operations and reduce debt.

Strategically, GSTX has focused on reshoring solar manufacturing, particularly in the U.S. and Australia, through its newly established subsidiary, The Quartz & Silicon Materials Company Ltd (QSM). This subsidiary aims to produce silicon wafers and solar cells, capitalizing on the growing solar market, which is projected to grow at over 10% annually. The company is also in advanced discussions with major manufacturers to reshore production of silicon ingots and wafers, positioning itself to benefit from government incentives under the Inflation Reduction Act in the U.S. and the "Made in Australia" program.

Operationally, GSTX is in the process of expanding its workforce, with plans to increase its employee count to at least 30 within the next year, contingent on securing additional funding. The company is also exploring various acquisition opportunities in critical resource assets and green technologies. Despite these initiatives, GSTX has acknowledged the challenges of raising sufficient capital to sustain operations, which raises concerns about its ability to continue as a going concern.

Looking ahead, GSTX's management remains optimistic about the potential for future growth, particularly in the solar manufacturing sector. However, they caution that the company's ability to execute its plans is heavily dependent on securing additional financing. The management has indicated that they are actively pursuing funding options, but there are no guarantees regarding the timing or terms of such financing. The company’s future performance will largely hinge on its ability to navigate these financial challenges while capitalizing on emerging market opportunities.