Zentek Ltd. (formerly ZEN Graphene Solutions Ltd.)

Climate Impact & Sustainability Data (2022)

Negative operating cash flow
Uncertainties relating to the Company’s business plans
Economic and political conditions
Revenue from graphene-related product sales; long and complex sales cycle
Intellectual property
Product development and technological change
Market development and growth
Unpredictable sales cycles
Government regulation and import/export controls
Industry competition
Lack of trading market for graphene
Shortages
Liquidity concerns and future financing
Reliance on key personnel
Qualified employees
Cybersecurity threats
Share price fluctuations
Cost absorption and purchase orders
Acquisitions
Launch and operational costs
Material and commodity prices
Uninsured risks
Litigation
Credit risk
Interest rate risk
Price risk
Financial capability and additional financing
Permits and government regulation
Fluctuating prices
Environmental regulation
Economic dependence on supply agreements
Material weaknesses in internal control (absence of effective activity-level controls over inventory and lack of controls over accurate revenue recording)

Careful management and planning of operations and hiring qualified personnel
Securing GO supply to meet anticipated demand
Construction of ZenGUARD™ industrial scale production and coating facility
Proposed construction of Graphene Oxide production facility
Continued research and development
Seeking government support for testing
Engaging strategic financial advisor for Albany Graphite Project
Implementation of controls over inventory movement and acquisition of inventory software
Strengthening revenue recognition and financial reporting controls, hiring a new CFO