CLEVELAND, OHIO – (April 5, 2023) – MALACHITE INNOVATIONS, INC. (OTC Mkts: MLCT)  (“Malachite”), a public company focused on improving the health and wellness of people and the planet, is  providing highlights from its 2022 Annual Report filed with the Securities and Exchange Commission on  March 31, 2023 for the 12-month period ending on December 31, 2022. 

Financial Highlights 

For the calendar year 2022, Malachite reported revenue of $4,832,278 compared to $0 of revenue reported for the four calendar years 2018 to 2021. From its inception in 2011 through the end of 2021, Malachite  reported total revenue of $759,810. As a result, Malachite’s calendar year 2022 revenues were $4,072,468  more than its total revenues over its previous 10 years of operations. 

Net loss for the calendar year 2022 was $1,072,176 compared to a net loss of $2,073,600 for the calendar  year 2021 (an improvement of $1,001,424). Net cash used in operating activities for the calendar year 2022  was $603,778 compared to net cash used in operating activities of $1,923,078 for the calendar year 2021 (an improvement of $1,319,300). As a result, Malachite reduced its net loss by $1,001,424 and used  $1,319,300 less cash in its operating activities in calendar year 2022 compared to calendar year 2021. 

Malachite’s current assets grew from $42,227 on December 31, 2021 to $1,424,638 on December 31, 2022 (an increase of $1,382,411) while its current liabilities grew from $432,560 to $1,553,009 over the same  period (an increase of $1,120,449). As a result, Malachite’s net working capital improved by $261,962  from December 31, 2021 to December 31, 2022. 

Finally, Malachite’s total assets grew from $50,919 on December 31, 2021 to $8,230,465 on December 31,  2022 (an increase of $8,179,546) while its total liabilities grew from $432,560 to $5,291,022 over the same  period (an increase of $4,858,462). As a result, Malachite’s stockholders’ equity increased by $3,321,084  from December 31, 2021 to December 31, 2022. 

Capital Raises 

During the calendar year 2022, Malachite raised $3,250,000 through the issuance of common stock and  warrants to two high net worth investors and one institutional investor. Malachite also secured a $1,000,000  revolving line of credit from a Cleveland-based commercial bank to provide additional liquidity to support  its ongoing working capital needs and growth of its subsidiaries. 

New Impact Investing Strategy 

In 2022, Malachite expanded its corporate strategy to pursue impact investments that address pressing  environmental, social and economic challenges, such as climate change, air and water pollution, educational  inequality and economic disparity. By actively directing investment capital toward businesses that are  working to create positive environmental, social and economic outcomes, our impact investing strategy can  meaningfully contribute to an improved people-planet ecosystem and a healthier and happier way of life.  We have a particular interest in providing environmental and social solutions in economically-disadvantaged regions of the United States, with an initial focus on the Appalachian region, which is home  to communities with some of the most disadvantaged income, education and employment demographics. 

New Operating Businesses 

Environmental Services 

In May 2022, Malachite acquired Range Environmental Resources, Inc. and Range Natural Resources, Inc.  (collectively, the “Range Reclamation Entities”) for cash consideration and Malachite common stock. The  Range Reclamation Entities provide land reclamation, water restoration and environmental consulting  services to mining and non-mining customers throughout the Appalachian region with the goal of returning  land to pre-mining conditions or repurposing the land for natural, commercial, agricultural or recreational  use. At the time of acquisition in May 2022, the Range Reclamation Entities had one reclamation customer,  15 pieces of owned and financed equipment, eight pieces of rented equipment, and 12 employees in West  Virginia. Today, less than one year later, the Range Reclamation Entities have three reclamation customers,  more than 40 pieces of owned and financed equipment, and 27 employees. For the calendar year 2021, the  Range Reclamation Entities generated revenues of approximately $2.5 million. For the period beginning  on May 11, 2022 and ending on December 31, 2022, the Range Reclamation Entities generated revenues  of approximately $4.8 million representing pro forma annualized revenues of over $6.0 million. The Range  Reclamation Entities are planning for continued growth in their land reclamation, water restoration and  environmental consulting businesses by expanding their market share with new and existing customers. 

Biochar Products and Solutions 

Terra Preta, Inc. (“Terra Preta”) is a biochar product development and environmental solutions business  started by Malachite in December 2022. Terra Preta is developing a novel and innovative combination of  biochar, proprietary materials and structural designs intended to create several first-of-its-kind agricultural  and water filtration products and solutions. Biochar is a solid, lightweight carbon-rich material produced  by the thermal decomposition of organic material (such as cellulosic feedstock, including wood and plants)  using a chemical-conversion process known as pyrolysis. In December 2022, Terra Preta filed trademarks  for biochar goods and services related to agricultural and water treatment applications. In March 2023,  Terra Preta filed provisional patents related to novel and innovative agricultural and water treatment  solutions and designs. We anticipate that several biochar-based water filtration and soil amendment  products will be available for production and sale by the end of 2023. 

Stream Mitigation Banking 

In December 2022, Malachite formed Pristine Stream Ventures, Inc. (“Pristine Stream”) to engage in the  business of establishing mitigation banks throughout the Appalachian region in order to restore and preserve  environmentally degraded streams and waterways and support new economic development, with a  particular focus on coal mine sites in economically disadvantaged areas that are being repositioned for next  generation industries and job creation. Pristine Stream is planning to establish mitigation banks throughout  the Appalachian region to earn mitigation credits which Pristine Stream would later sell to developers to  allow them to offset the impact of development activities in similar geographical areas.  

Environmental Security Services 

Range Security Resources, Inc. (“Range Security”) is an environmental security services business started  by Malachite in November 2022. Range Security is focused on providing eco-friendly, technology-driven  security services to active and former mine sites, with a particular focus on locations transitioning from  coal mining to next generation industries. Range Security is intended to serve as a complementary business  to the Range Reclamation Entities. In March 2023, Range Security was engaged by its first customer for environmental security services covering a 13,000-acre coal mine site in West Virginia. Range Security  plans to expand its security service business onto several additional mine sites prior to the end of 2023, with  a particular focus on locations with valuable infrastructure being repurposed into non-coal multi-use  complexes with attractive job growth prospects and next generation industry opportunities. 

Cannabinoid Drug Development 

Graphium Biosciences, Inc. (“Graphium”) is a cannabinoid-based drug development company tracing its  history of technological innovation and drug advancement back to October 2011 through two predecessor  entities, Stevia First Corp. and Vitality Biopharma, Inc. In October 2021, Malachite formed Graphium as a  wholly-owned subsidiary and transferred all of its drug development assets to this newly-formed entity.  Graphium is advancing a broad portfolio of glycosylated cannabinoid prodrugs that have been developed  to unlock the rebalancing effects of the endocannabinoid system to address numerous chronic conditions  with inadequate pharmaceutical options. Graphium’s leading drug candidate, VBX-100, is a glycosylated  tetrahydrocannabinol cannabinoid that targets inflammatory conditions of the gastrointestinal tract but  without unwanted psychoactive or intoxicating side effects. We are working closely with a third-party  contract research organization to develop a detailed drug development plan to advance VBX-100 through  Phase II clinical trials by the end of 2025, subject to receipt of sufficient funding, which is currently  estimated to be approximately $10.5 million. If we are successful in advancing VBX-100 through Phase II  clinical trials, then we would seek to maximize shareholder value by either selling our drug development  assets to a strategic purchaser or raising additional capital to advance VBX-100 through Phase III clinical  trials and then evaluate a sale. 


Expansion of Team 
On December 31, 2021, Malachite employed three senior executives to manage and operate its business.  A year later, on December 31, 2022, Malachite had seven senior executives and managers, three strategic  advisors, and over 30 employees for a total of over 40 professionals managing and operating Malachite and  its subsidiaries. Malachite expects to continue to grow its board of directors, team of strategic advisors,  executive management team and employee base to support the anticipated high-level of growth of  Malachite and its subsidiaries. 


About Malachite Innovations, Inc. 
Headquartered in Cleveland, Ohio, Malachite Innovations, Inc. is a public holding company dedicated to  improving the health and wellness of people and the planet through a novel and innovative approach to  impact investing. Malachite owns and operates a balanced portfolio of operating businesses focused on developing long-term solutions to environmental, social and health challenges, with a particular focus on  economically disadvantaged communities. Malachite takes an opportunistic approach to impact investing  by leveraging its competitive advantages and looking at solving old problems in new ways. Malachite  seeks to thoughtfully allocate its capital into ventures that are expected to make a positive impact on the  people-planet ecosystem and generate strong investment returns for our shareholders. 


Notice Regarding Forward-Looking Statements 
This press release contains “forward-looking statements” as that term is defined in Section 27(a) of the  Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended.  Statements in this press release which are not purely historical are forward-looking statements and include  any statements regarding beliefs, plans, expectations or intentions regarding the future. Although we believe  that these statements are based on reasonable assumptions, they are subject to numerous factors that could  cause actual outcomes and results to be materially different from those indicated in such statements. Such  factors include, among others, the inherent uncertainties associated with new projects and development stage companies, timing of clinical trials and product development, business strategy and new lines of  business. These forward-looking statements are made as of the date of this press release, and we assume no  obligation to update the forward-looking statements, or to update the reasons why actual results could differ  from those projected in the forward-looking statements. Although we believe that any beliefs, plans,  expectations and intentions contained in this press release are reasonable, there can be no assurance that  any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of  the information set forth herein and should also refer to the risk factors disclosure outlined in our annual  report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic  reports filed from time-to-time with the Securities and Exchange Commission. 


Malachite Innovations, Inc. 
Investor Relations 
P: +1 (216) 304-6556 
E: ir@[64:ff9b::a763:e8d1] 
W: www.malachiteinnovations.com

News and Events

Range Impact Reports 4Q 2023 and Full Year 2023 Financial Results

CLEVELAND, OHIO – (March 29, 2024) – Range Impact, Inc. (OTC: RNGE)...

read more
Range Impact Announces Former Ohio Congressman Zack Space and Former Ohio Senator Jay Hottinger Have Joined the Company as Strategic Advisors

CLEVELAND, OHIO – (January 29, 2024) – Range Impact, Inc. (OTC: RNGE)...

read more
Range Impact Announces $1.7 Million Capital Raise Led by Strategic Investors

CLEVELAND, OHIO – (December 21, 2023) – Range Impact, Inc. (OTC: RNGE)...

read more