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Nanophase Reports Fourth Quarter and Year End 2015 Financial Results

ROMEOVILLE, Ill., Feb. 24, 2016 (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, 2015.

Nanophase CEO and President Jess Jankowski commented, “Our increase in revenue all dropped to the bottom line, which indicates that we continue to create efficiencies. We bounced back from a tough first half to show positive cash generation during the second half of 2015. We expect to be even stronger in 2016.”

Fourth Quarter 2015 Financial Highlights

  • Revenue for the fourth quarter was $2.3 million, vs. the $1.8 million reported during the fourth quarter of 2014.
  • The net loss for the quarter was $0.3 million, or a loss of $0.01 per share, compared to a net loss of $0.9 million, or $0.03 per share, for the comparable 2014 quarter.
  • The Company finished the quarter with approximately $1.3 million in cash and cash equivalents; the Company has no debt. The Company enhanced its cash position on February 10, 2016, by selling 2.6 million shares of unregistered common stock to its largest investor at $0.38 per share, for $988,000 in proceeds.


Fiscal Year 2015 Financial Highlights

  • Revenue for fiscal year 2015 was $10.3 million, vs. $9.9 million in fiscal year 2014.
  • The net loss for the year ended December 31, 2015 was $1.2 million, or a loss of $0.04 per share, compared to a net loss of $1.7 million, or $0.06 per share, for the comparable 2014 period.


Jankowski continued, “Throughout 2015 we discussed looking at potentially raising a small amount of money, but doing so prudently depending on the opportunity and cost. We found such an opportunity during February 2016, raising equity capital for the first time since 2012. Our business has seen plenty of misses to go along with our wins, but overall our focused approach is driving significant operational and product development improvements. We expect to see 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 2015 Conference Call
The Nanophase conference call, to be hosted by Jess Jankowski, the Company’s President & CEO, is scheduled for February 25, 2016, 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 50070834. 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 25th 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: its ability to become profitable despite the losses it has incurred since incorporation; dependence on its principal customers and the terms of the supply agreement with BASF which could trigger a requirement to transfer technology and/or sell equipment to that customer; the potential inability to obtain working capital when needed on acceptable terms or at all; the ability to obtain materials at costs that can be passed through to customers, including Rare Earth elements, specifically cerium oxide; 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 or other legal proceedings 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 for its securities; and other factors described in the Company’s Form 10-K filed March 27, 2015. 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
December 31,
2015 December 31,
ASSETS(Unaudited) 2014
Current assets:
Cash and cash equivalents$ 1,275,402 $ 1,861,524
Trade accounts receivable, less allowance for doubtful accounts
of $6,000 on December 31, 2015 and December 31, 2014 506,549 387,760
Other receivable 43 65
Inventories, net 661,593 950,106
Prepaid expenses and other current assets 247,726 367,860
Total current assets 2,691,313 3,567,315
Equipment and leasehold improvements, net 1,860,579 2,137,549
Other assets, net 22,381 24,864
$ 4,574,273 $ 5,729,728
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations$ 94,406 $ 69,733
Accounts payable 507,643 492,718
Accrued expenses 276,287 412,824
Total current liabilities 878,336 975,275
Long-term portion of capital lease obligations 143,560 120,787
Long-term deferred rent 518,747 621,475
Asset retirement obligation 172,238 166,099
Total long-term liabilities 834,545 908,361
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; 28,585,496 -
and 28,516,163 shares issued and outstanding on December 31, 2015 and
December 31, 2014, respectively 285,855 285,162
Additional paid-in capital 96,172,795 95,965,739
Accumulated deficit (93,597,258) (92,404,809)
Total stockholders' equity 2,861,392 3,846,092
$ 4,574,273 $ 5,729,728






NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Years ended
December 31, December 31,
2015 2014 2015 2014
Revenue:
Product revenue, net $ 2,271,979 $ 1,809,271 $ 10,271,919 $ 9,879,743
Other revenue 7,780 10,389 41,270 56,079
Net revenue 2,279,759 1,819,660 10,313,189 9,935,822
Operating expense:
Cost of revenue 1,606,702 1,523,771 7,199,594 7,104,572
Gross profit 673,057 295,889 3,113,595 2,831,250
Research and development expense 303,193 348,261 1,272,621 1,337,719
Selling, general and administrative expense 703,585 824,283 3,019,424 3,215,616
Loss from operations (333,721) (876,655) (1,178,450) (1,722,085)
Interest income - - - 810
Interest expense (4,625) (1,191) (13,999) (5,537)
Other, net - - - -
Loss before provision for income taxes (338,346) (877,846) (1,192,449) (1,726,812)
Provision for income taxes - - - -
Net loss $ (338,346) $ (877,846) $ (1,192,449) $ (1,726,812)
Net loss per share- basic and diluted $ (0.01) $ (0.03) $ (0.04) $ (0.06)
Weighted average number of basic and diluted
common shares outstanding 28,585,496 28,484,511 28,574,902 28,482,256






NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE
(Unaudited)
Three months ended Years ended
December 31, December 31,
2015 2014 2015 2014
Revenue:
Product revenue, net $ 2,271,979 $ 1,809,271 $ 10,271,919 $ 9,879,743
Other revenue 7,780 10,389 41,270 56,079
Net revenue 2,279,759 1,819,660 10,313,189 9,935,822
Operating expense:
Cost of revenue detail:
Depreciation 147,685 147,695 581,382 597,916
Non-Cash equity compensation 5,105 4,981 22,369 24,383
Other costs of revenue 1,453,912 1,371,095 6,595,843 6,482,273
Cost of revenue 1,606,702 1,523,771 7,199,594 7,104,572
Gross profit 673,057 295,889 3,113,595 2,831,250
Research and development expense detail:
Depreciation 27,475 29,838 113,043 105,920
Non-Cash equity compensation 8,279 9,795 34,380 52,307
Other research and development expense 267,439 308,628 1,125,198 1,179,492
Research and development expense 303,193 348,261 1,272,621 1,337,719
Selling, general and administrative expense detail:
Depreciation and amortization 10,090 10,090 40,449 39,343
Non-Cash equity compensation 27,902 23,392 123,828 110,643
Other selling, general and administrative expense 665,593 790,801 2,855,147 3,065,630
Selling, general and administrative expense 703,585 824,283 3,019,424 3,215,616
Loss from operations (333,721) (876,655) (1,178,450) (1,722,085)
Interest income - - - 810
Interest expense (4,625) (1,191) (13,999) (5,537)
Other, net - - - -
Loss before provision for income taxes (338,346) (877,846) (1,192,449) (1,726,812)
Provision for income taxes - - - -
Net loss $ (338,346) $ (877,846) $ (1,192,449) $ (1,726,812)
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):
Addback Interest, net 4,625 1,191 13,999 4,727
Addback Depreciation/Amortization 185,250 187,623 734,874 743,179
Addback Non-Cash Equity Compensation 41,286 38,168 180,577 187,333
Adjusted EBITDA $ (107,185) $ (650,864) $ (262,999) $ (791,573)



COMPANY CONTACT Nancy Baldwin Investor Relation 630-771-6708

Source:Nanophase Technologies Corporation