GSTX · Graphene & Solar Technologies Limited

Results of Operations

For the fiscal quarter ended December 31, 2025, Graphene & Solar Technologies Limited generated no revenue — a condition unchanged from the same period in FY2025. As stated in Item 2 of the Management Discussion, 'we generated no revenues, and thus no cost of sales or gross profits.' This pre-revenue status defines the company’s operational reality: all expenses reflect development-stage investment, not commercial activity. Operating income improved to -$759.9K from -$965.8K year-over-year, a 21.3% reduction in loss magnitude. This improvement stems from lower professional fees incurred during facility planning, not from revenue generation or margin expansion. Similarly, net income improved to -$858.9K from -$1.0M, with diluted EPS remaining flat at $0.00 — underscoring that earnings per share remain uninformative in the absence of profitability or meaningful share count changes.

Liquidity and Capital Resources

Current Business and Operation

The company’s strategy centers on supplying silicon wafers for the photovoltaic manufacturing sector. Its near-term milestone is initial sample production — explicitly described as pending completion of financing and facility construction phases. Critically, management states these wafers 'are not subject to additional R&D prior to production,' indicating technical readiness is decoupled from capital execution. The company is engaged in advanced discussions with large incumbent manufacturers regarding joint ventures and offtake agreements for silicon ingot, wafer, and cell manufacturing — but these remain early-stage planning and permitting activities, with no executed agreements disclosed.

Funding and Business Outlook

No revenue catalyst exists in the near term. All progress is contingent on external financing and physical infrastructure readiness. The working capital deficit and persistent operating cash outflows confirm that operations remain fully dependent on financing inflows. Until sample production commences — which requires both capital deployment and facility completion — financial performance will continue to reflect development-stage costs, not commercial traction.