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CST: 18/08/2019 04:16:25   

Nanophase Reports Record 2018 Revenue; Outlook for Solésence and Mineral UV Absorbers Strong

143 Days ago

The Company’s financial conference call is scheduled for March 28th at 11am EDT

ROMEOVILLE, Ill., March 27, 2019 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB: NANX), a leader in minerals-based personal care ingredients and formulated products for protecting skin from environmental aggressors, such as UV light and pollution, today reported financial results for the fourth quarter and fiscal year ended December 31, 2018. 

“We are in the right markets at the right time,” commented Nanophase CEO and President Jess Jankowski. "The markets for our minerals-based personal care ingredients and Solésence products continue to improve, with consumers and regulators recognizing the health and environmental advantages of our technologies.”

“Our Solésence business just enjoyed another product launch through a leading natural skin and body care products company, resulting in low six-figure revenue for the first quarter of 2019.  This product has already received recognition as being one of the best in its class.  We are expecting a number of additional brands to launch products through Solésence in the second quarter.”

“We achieved record revenue in 2018, representing growth of 14% year-over-year, driven by a temporary increase in personal care ingredients sales, and $1.3M in revenue from 2018 Solésence product launches.  In 2019, through new launches and re-orders, we expect Solésence volume to be a multiple of 2018’s.”

Twelve Months Ended December 31, 2018 Financial Highlights

  • Revenue for fiscal year 2018 was $14.2 million, vs. $12.5 million reported during the same period of 2017. 
  • The net loss for fiscal year 2018 was $2.1 million, or a loss of $0.06 per share, compared to a net loss of $0.8 million, or $0.03 per share, for the comparable period of 2017. 
  • The Company finished the year with approximately $1.3 million in cash and cash equivalents; which included $0.8M from a short-term line of credit. 

Fourth Quarter 2018 Financial Highlights

  • Revenue for the fourth quarter was $3.2 million in 2018, vs. $2.6 million in 2017. 
  • The net loss for the quarter was $1.1 million in 2018, or $0.03 per share, compared to a net loss of $0.2 million, or $0.01 per share, for 2017. 

Shareholders and members of the financial community are encouraged to participate in the upcoming conference call, where Mr. Jankowski will discuss the company’s current and long-term prospects.

Jankowski continued, “Clearly, the financial results in 2018 were not indicative of the progress we’ve made in our Solésence-driven growth strategy.  A series of costs related to our first consumer-ready product launches, as well as other variables, resulted in a poor bottom line.  We don’t expect these results to reflect future performance.  We are making exciting and life-enhancing products that the markets desire, and we expect 2019 to reflect that with the continued growth of Solésence.”

Fourth Quarter and 2018 Fiscal Year Conference Call 

The Nanophase conference call, to be hosted by Jess Jankowski, the Company’s President & CEO, is scheduled for March 28, 2019, at 10:00 a.m. CDT, 11:00 a.m. EDT. The conference call dial-in number for U.S. callers is 877-312-8776 and for international callers is 408-774-4007.  The conference ID is 5399757.  Please dial in to the conference at least five minutes before the call is scheduled to begin.

The call may also be accessed through the company’s website, at www.nanophase.com, by clicking on Investor Relations, Investor News and the link in the conference call announcement release.

Use of Non-GAAP Financial Information

Nanophase believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles.

About Nanophase Technologies
Nanophase Technologies Corporation (NANX), www.nanophase.com, is a leader in minerals-based personal care ingredients and formulated products for protecting skin from environmental aggressors, such as UV light and pollution, as well as providing solutions for industrial product applications. Using a platform of patented and proprietary integrated technologies, the Company creates products with unique performance attributes from two ISO 9001 and ISO 14001 registered facilities. Nanophase delivers commercial quantity and quality engineered materials both as ingredients, and as part of fully formulated products, in a variety of formats. 

Forward-Looking Statements
This press release contains words such as “expects,”” shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s nanocrystalline materials; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 29, 2017. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingen cies.

NANOPHASE TECHNOLOGIES CORPORATION
           
BALANCE SHEETS
           
           
        December 31,      
        2018       December 31,  
ASSETS (Unaudited)     2017  
           
Current assets:      
  Cash and cash equivalents $   1,345,492     $   1,955,073  
  Trade accounts receivable, less allowance for doubtful accounts of $9,000      
    and $5,000 on December 31, 2018 and December 31, 2017 respectively     828,417         1,114,702  
  Inventories, net     2,242,228         1,138,870  
  Prepaid expenses and other current assets     273,235         415,192  
    Total current assets     4,689,372         4,623,837  
           
  Equipment and leasehold improvements, net     1,864,881         1,624,359  
  Other assets, net     14,928         17,410  
      $   6,569,181     $   6,265,606  
           
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
  Line of credit, related party     832,272         -   
  Line of credit, bank     -          300,000  
  Current portion of capital lease obligations     218,203         142,912  
  Accounts payable     1,607,406         1,037,784  
  Accrued expenses     979,243         542,810  
    Total current liabilities     3,637,124         2,023,506  
           
  Long-term portion of capital lease obligations     506,006         415,887  
  Long-term loan, related party     500,000         -   
  Long-term deferred rent     343,867         409,790  
  Asset retirement obligation     198,184         184,518  
    Total long-term liabilities     1,548,057         1,010,195  
           
           
Stockholders' equity:      
  Preferred stock, $.01 par value, 24,088 shares authorized and       
    no shares issued and outstanding     -          -   
  Common stock, $.01 par value, 42,000,000 shares authorized;       
    33,847,793 and 31,229,996  shares issued and outstanding on December 31, 2018    
    and December 31, 2017, respectively     339,117         338,478  
  Additional paid-in capital     98,795,105         98,562,750  
  Accumulated deficit     (97,750,222 )       (95,669,323 )
    Total stockholders' equity     1,384,000         3,231,905  
      $   6,569,181     $   6,265,606  
           

 

NANOPHASE TECHNOLOGIES CORPORATION  
                           
STATEMENTS OF OPERATIONS  
                           
(Unaudited)  
                           
            Three months ended   Twelve months ended  
            December 31,   December 31,  
              2018       2017       2018       2017    
Revenue:                      
  Product revenue, net     $   3,138,245     $   2,604,088     $   14,039,681     $   12,128,936    
  Other revenue         18,407         14,715         152,850         342,019    
    Net revenue         3,156,652         2,618,803         14,192,531         12,470,955    
                           
Operating expense:                    
  Cost of revenue         2,738,511         1,757,983         10,902,561         8,620,453    
    Gross profit         418,141         860,820         3,289,970         3,850,502    
                           
  Research and development expense         545,014         381,856         2,057,466         1,735,687    
  Selling, general and administrative expense       956,573         683,256         3,255,913         2,886,282    
Income/(Loss) from operations          (1,083,446 )       (204,292 )       (2,023,409 )       (771,467 )  
Interest income         -          -          -          -     
Interest expense         (25,851 )       (9,444 )       (57,492 )       (34,355 )  
Other, net           -          (1,021 )       -          16,855    
Income/(Loss) before provision for income taxes       (1,109,297 )       (214,757 )       (2,080,901 )       (788,967 )  
Provision for income taxes         -          -          -          -     
Net income/(loss)     $   (1,109,297 )   $   (214,757 )   $   (2,080,901 )   $   (788,967 )  
                           
                           
Net income/(loss) per share- basic and diluted     $   (0.03 )   $   (0.01 )   $   (0.06 )   $   (0.03 )  
                           
Weighted average number of basic and diluted                   
  common shares outstanding         33,911,792         33,515,211         33,871,815         31,335,956    
                           
                           
                           
                           
NANOPHASE TECHNOLOGIES CORPORATION  
                           
STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE  
                           
(Unaudited)  
                           
            Three months ended   Twelve months ended  
            December 31,   December 31,  
              2018       2017       2018       2017    
Revenue:                      
  Product revenue, net     $   3,138,245     $   2,604,088     $   14,039,681     $   12,128,936    
  Other revenue         18,407         14,715         152,850         342,019    
    Net revenue         3,156,652         2,618,803         14,192,531         12,470,955    
                           
Operating expense:                    
  Cost of revenue detail:                    
  Depreciation         58,552         67,881         253,475         279,286    
  Non-Cash equity compensation         8,886         6,194         30,653         24,279    
  Other costs of revenue         2,671,073         1,683,908         10,618,433         8,316,888    
    Cost of revenue         2,738,511         1,757,983         10,902,561         8,620,453    
      Gross profit         418,141         860,820         3,289,970         3,850,502    
                           
  Research and development expense detail:                  
  Depreciation         11,139         8,767         40,318         46,748    
  Non-Cash equity compensation         14,453         11,077         53,216         47,343    
  Other research and development expense         519,422         362,012         1,963,932         1,641,596    
    Research and development expense         545,014         381,856         2,057,466         1,735,687    
                           
  Selling, general and administrative expense detail:              
  Depreciation and amortization         12,479         5,126         27,786         18,114    
  Non-Cash equity compensation         34,750         25,842         120,492         111,041    
  Other selling, general and administrative expense     909,344         652,288         3,107,635         2,757,127    
    Selling, general and administrative expense     956,573         683,256         3,255,913         2,886,282    
Income/(Loss) from operations          (1,083,446 )       (204,292 )       (2,023,409 )       (771,467 )  
Interest income         -          -          -          -     
Interest expense         (25,851 )       (9,444 )       (57,492 )       (34,355 )  
Other, net           -          (1,021 )       -          16,855    
Income/(Loss) before provision for income taxes       (1,109,297 )       (214,757 )       (2,080,901 )       (788,967 )  
Provision for income taxes         -          -          -          -     
Net income/(loss)     $   (1,109,297 )   $   (214,757 )   $   (2,080,901 )   $   (788,967 )  
                           
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):              
  Addback Interest, net         25,851         9,444         57,492         34,355    
  Addback Depreciation/Amortization         82,170         81,774         321,579         344,148    
  Addback Non-Cash Equity Compensation         58,089         43,113         204,361         182,663    
  Addback Other, net         -          1,021         -          (16,855 )  
                           
  Adjusted EBITDA     $   (943,187 )   $   (79,405 )   $   (1,497,469 )   $   (244,656 )  
                           

 

COMPANY CONTACT
Investor Relations
630-771-6705

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