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Nanophase Reports Fourth Quarter and Year End 2014 Financial Results

ROMEOVILLE, Ill., Feb. 18, 2015 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB:NANX), a technology leader in nanomaterials and advanced nanoengineered products, today reported financial results for the fourth quarter and fiscal year ended December 31, 2014.

Nanophase CEO and President Jess Jankowski commented, "Our bottom line improved by twice the increase in revenue, which indicates that we are building efficiencies. This improvement is before we realize expected revenues from our developing business areas. We have been working through more customer trials in Surface Finishing Technologies (Polishing) than ever before, in large part thanks to our new polishing lab. We expect commercial results to begin in both energy areas this year. I have never seen the Company in a stronger position entering a new year."

Fourth Quarter 2014 Financial Highlights

  • Revenue for the fourth quarter was $1.8 million, vs. the $1.8 million reported during the fourth quarter of 2013.
  • The net loss for the quarter was $0.9 million, or a loss of $0.03 per share, compared to a net loss of $0.9 million, or $0.03 per share, for the comparable 2013 quarter.
  • The Company finished the quarter with approximately $1.9 million in cash and cash equivalents; the Company has no debt.

Fiscal Year 2014 Financial Highlights

  • Revenue for fiscal year 2014 was $9.9 million, vs. $9.6 million in fiscal year 2013.
  • The net loss for the year ended December 31, 2014 was $1.7 million, or a loss of $0.06 per share, compared to a net loss of $2.5 million, or $0.09 per share, for the comparable 2013 period.

Jankowski continued, "Our focused approach has already yielded significant operational improvements. Now we expect to see a real top line growth as our new products hit the market."

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.

In addition to tomorrow's call, Nanophase has also added an investor news summary to its website to highlight some of its current marketing activities that may be of interest (www.nanophase.com, under Investor Relations >> Investor News >> Q4 Investor Recap).

Fourth Quarter 2014 Conference Call

The Nanophase conference call, to be hosted by Jess Jankowski, the Company's President & CEO, is scheduled for February 19, 2015, at 10:00 a.m. CST, 11:00 a.m. EST. 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 71376624. Please dial in to the conference at least five minutes before the call is scheduled to begin.

A webcast of the event may be accessed through the company's website, at www.nanophase.com, by clicking on Investor Relations, Investor News and the link in the February 11th 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 nanomaterials technologies and provides nanoengineered solutions for multiple industrial product applications. Using a platform of patented and proprietary integrated nanomaterial technologies, the Company creates products with unique performance attributes from two ISO 9001:2008 and ISO 14001 facilities. Nanophase delivers commercial quantity and quality nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety of media.

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 28, 2014. 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 contingencies.

NANOPHASE TECHNOLOGIES CORPORATION
BALANCE SHEETS
ASSETS December 31, 2014 December 31, 2013
Current assets:
Cash and cash equivalents $ 1,861,524 $ 3,276,132
Investments -- 30,000
Trade accounts receivable, less allowance for doubtful accounts of $6,000 on December 31, 2014 and December 31, 2013 387,760 52,173
Other receivable 65 644
Inventories, net 950,106 976,110
Prepaid expenses and other current assets 367,860 201,622
Total current assets 3,567,315 4,536,681
Equipment and leasehold improvements, net 2,137,549 2,464,089
Other assets, net 24,864 27,346
$ 5,729,728 $ 7,028,116
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations 69,733 30,514
Accounts payable 492,718 502,935
Accrued expenses 412,824 323,214
Total current liabilities 975,275 856,663
Long-term portion of capital lease obligations 120,787 10,593
Long-term deferred rent 621,475 632,652
Asset retirement obligation 166,099 159,959
Total long-term liabilities 908,361 803,204
Stockholders' equity:
Preferred stock, $.01 par value, 24,088 shares authorized and no shares issued and outstanding -- --
Common stock, $.01 par value, 35,000,000 shares authorized; 28,516,163 and 28,481,496 shares issued and outstanding on December 31, 2014 and December 31, 2013, respectively 285,162 284,815
Additional paid-in capital 95,965,739 95,761,431
Accumulated deficit (92,404,809) (90,677,997)
Total stockholders' equity 3,846,092 5,368,249
$ 5,729,728 $ 7,028,116
NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS
Three months ended
December 31,
Twelve months ended
December 31,
2014 2013 2014 2013
Revenue:
Product revenue, net $ 1,809,271 $ 1,755,398 $ 9,879,743 $ 9,565,456
Other revenue 10,389 7,881 56,079 24,237
Net revenue 1,819,660 1,763,279 9,935,822 9,589,693
Operating expense:
Cost of revenue 1,523,771 1,474,050 7,104,572 7,029,651
Gross profit 295,889 289,229 2,831,250 2,560,042
Research and development expense 348,261 421,390 1,337,719 1,678,653
Selling, general and administrative expense 824,283 781,530 3,215,616 3,372,126
Loss from operations (876,655) (913,691) (1,722,085) (2,490,737)
Interest income -- 378 810 1,501
Interest expense (1,191) (1,028) (5,537) (11,776)
Other, net -- 4,791 -- 22,792
Loss before provision for income taxes (877,846) (909,550) (1,726,812) (2,478,220)
Provision for income taxes -- -- -- --
Net loss $ (877,846) $ (909,550) $ (1,726,812) $ (2,478,220)
Net loss per share- basic and diluted $ (0.03) $ (0.03) $ (0.06) $ (0.09)
Weighted average number of basic and diluted common shares outstanding 28,484,511 28,474,568 28,482,256 28,469,393
NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE
(Unaudited)
Three months ended
December 31,
Twelve months ended
December 31,
2014 2013 2014 2013
Revenue:
Product revenue, net $ 1,809,271 $ 1,755,398 $ 9,879,743 $ 9,565,456
Other revenue 10,389 7,881 56,079 24,237
Net revenue 1,819,660 1,763,279 9,935,822 9,589,693
Operating expense:
Cost of revenue detail:
Depreciation 147,695 160,288 597,916 700,585
Non-Cash equity compensation 4,981 5,743 24,383 26,591
Other costs of revenue 1,371,095 1,308,019 6,482,273 6,302,475
Cost of revenue 1,523,771 1,474,050 7,104,572 7,029,651
Gross profit 295,889 289,229 2,831,250 2,560,042
Research and development expense detail:
Depreciation 29,838 27,739 105,920 120,922
Non-Cash equity compensation 9,795 13,203 52,307 71,113
Other research and development expense 308,628 380,448 1,179,492 1,486,618
Research and development expense 348,261 421,390 1,337,719 1,678,653
Selling, general and administrative expense detail:
Depreciation and amortization 10,090 12,177 39,343 52,778
Non-Cash equity compensation 23,392 31,287 110,643 144,401
Other selling, general and administrative expense 790,801 738,066 3,065,630 3,174,947
Selling, general and administrative expense 824,283 781,530 3,215,616 3,372,126
Loss from operations (876,655) (913,691) (1,722,085) (2,490,737)
Interest income -- 378 810 1,501
Interest expense (1,191) (1,028) (5,537) (11,776)
Other, net -- 4,791 -- 22,792
Loss before provision for income taxes (877,846) (909,550) (1,726,812) (2,478,220)
Provision for income taxes -- -- -- --
Net loss $ (877,846) $ (909,550) $ (1,726,812) $ (2,478,220)
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):
Addback Interest, net 1,191 650 4,727 10,275
Addback Depreciation/Amortization 187,623 200,204 743,179 874,285
Addback Non-Cash Equity Compensation 38,168 50,233 187,333 242,105
Adjusted EBITDA $ (650,864) $ (658,463) $ (791,573) $ (1,351,555)

CONTACT: Nancy Baldwin Investor Relations 630-771-6708Source:Nanophase Technologies Corporation