Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) has provided a business update detailing its strengthened working capital and significant cost reductions.
The company received A$2.85 million under Australia’s R&D Tax Incentive program, raising its cash balance to A$5.56 million as of November 1, with no outstanding debt or loan facilities.
Australia’s R&D Tax Incentive continues to be a major support mechanism for GMG, covering 43.5% of eligible R&D expenses each year.
This funding has proven vital in advancing GMG's research and development, particularly for projects in energy savings and energy storage.
GMG has also implemented a strategic organizational restructuring, merging its Projects and Operations teams and optimizing its Graphene Manufacturing and Thermal XR Blending Plants.
This restructuring, along with active cost management, has reduced the company’s monthly operating cost base by nearly 45% since September 2023.
The new model focuses on partnering with trusted third-party providers with proven delivery capabilities, which GMG expects will support scalable project execution.
GMG’s chief executive Craig Nicol stated: “The timely receipt of the Research and Development rebate from the Australian Federal Government continues to provide significant working capital support while the company has continued to focus on improving its cost base through streamlining of Operations and Projects teams while maintaining focus and pace on delivering its four critical business objectives.”
GMG’s chairman Jack Perkowski added: “The implementation of targeted cost savings together with the Research & Development rebate, allows the company to remain focused on growing the sales of its Energy Savings products.”