First Graphene Limited's first half-year financial report highlights

First Graphene Limited (ASX: $FGR) experienced a 10% increase in revenue during the first half of the period ending 31 December 2023, marking another record first half sales performance for the Company. The growth in sales is attributed to the company's application development work in energy generation, cement, and the concrete segment. The net loss for the half was AUD 3.7m, which includes non-cash expenses for share issuance costs for the prior capital raise in 2021 (AUD 0.9m) and share-based payments (AUD 0.3m). Excluding these non-cash accounting expenses, the Company's operating loss is AUD 2.5m, broadly in-line with last year. Key items the company expects to realize in the second half of FY 2024 are the R&D tax credits for approximately AUD 0.8m, of which AUD 0.6m has already been received in January 2024.

Executive commentary on First Graphene's performance and outlook

The first half of FY2024 saw a significant expansion in global use of First Graphene's leading PureGRAPH® product, with multiple agreements secured with leading partners and agencies around the world. Financially, the Company started strong in FY2024 with a bolstered order pipeline, receival of research funding from the Cooperative Research Centres Project (CRC-P), and a successful Share Purchase Plan which raised more than AUD$2.9 million. This funding will be used to accelerate First Graphene's ongoing commercial work in the cement and concrete segment. Extensive research and development (R&D) activities continued as various industries look for graphene-enhanced alternatives to increase material performance. Results from this research provided further confidence in the wide range of potential opportunities for the Company's product, beyond the four primary segments. International demand for alternative, 'green' technologies continues to rise, reinforcing First Graphene's strong position as a leader in the development and delivery of graphene-enhanced materials.

Summary of First Graphene's interim financial report and outlook

First Graphene Limited's interim financial report for the half-year ended 31 December 2023 reflects a 10% increase in revenue, driven by application development work in energy generation, cement, and the concrete segment. The company recorded a net loss of AUD 3.7m for the half, which includes non-cash expenses for share issuance costs and share-based payments. However, the company expects to realize R&D tax credits for approximately AUD 0.8m in the second half of FY 2024. The report also highlights the Company's significant expansion in global use of PureGRAPH®, successful fundraising, and ongoing R&D activities. With ongoing support from industry, global universities, and customers across a variety of industries, First Graphene's products are expected to continue evolving into high-performing, market-ready solutions. The Company's outlook remains positive as it continues to focus on commercial work in the cement and concrete segment, expand its research and development activities, and capitalize on the rising international demand for 'green' technologies.