×

Nanophase Reports Fourth Quarter and Fiscal Year 2016 Financial Results

ROMEOVILLE, Ill., Feb. 15, 2017 (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, 2016.

“2016 demonstrated continued financial growth on the top line and bottom line (from the base business, prior to launch costs for our new fully formulated personal care solutions), and featured our first outright quarterly profit during the second quarter,” commented Nanophase CEO and President Jess Jankowski. “And with revenue starting to come in from these new products, we expect continued improvement heading into 2017.”

Twelve Months Ended December 31, 2016 Financial Highlights

  • Revenue for fiscal year 2016 was $10.8 million, vs. the $10.3 million reported during the same period of 2015.

  • The net loss for fiscal year 2016 was $1.3 million, or a loss of $0.04 per share, compared to a net loss of $1.2 million, or $0.04 per share, for the comparable period of 2015.

  • The Company finished the quarter with approximately $1.8 million in cash and cash equivalents; the Company had no debt.

Fourth Quarter 2016 Financial Highlights

  • Revenue for the fourth quarter was $2.4 million in 2016 and $2.3 million in 2015.

  • The net loss for the quarter was $0.7 million in 2016, or $0.02 per share, compared to a net loss of $0.3 million, or $0.01 per share, for 2015.

Jankowski continued, “We could have simply posted a slightly better result than the prior year, but our plan is to grow the top line significantly more in 2017 than we did during 2016, and we are investing in making that happen. That most of our investment was covered by the business indicates we are moving in the right direction. I believe we have the strategy, the solutions and the positioning to get this done.”

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.

Fourth Quarter and Fiscal Year 2016 Conference Call
The Nanophase conference call, to be hosted by Jess Jankowski, the Company’s President & CEO, is scheduled for February 16, 2017, 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 5824085. 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 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 29, 2016. 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,
2016 December 31,
ASSETS(Unaudited) 2015
Current assets:
Cash and cash equivalents$1,779,027 $1,275,402
Trade accounts receivable, less allowance for doubtful accounts
of $5,000 on December 31, 2016 and $6,000 on December 31, 2015 434,226 506,549
Other receivable 96 43
Inventories, net 771,975 661,593
Prepaid expenses and other current assets 441,634 247,726
Total current assets 3,426,958 2,691,313
Equipment and leasehold improvements, net 1,395,441 1,860,579
Other assets, net 19,893 22,381
$4,842,292 $4,574,273
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations 107,021 94,406
Accounts payable 669,025 507,643
Accrued expenses 521,302 276,287
Total current liabilities 1,297,348 878,336
Long-term portion of capital lease obligations 109,448 143,560
Long-term deferred rent 465,850 518,747
Asset retirement obligation 178,378 172,238
Total long-term liabilities 753,676 834,545
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 and 35,000,000 shares authorized; -
31,229,996 and 28,585,496 shares issued and outstanding on December 31, 2016
and December 31, 2015, respectively 312,300 285,855
Additional paid-in capital 97,359,324 96,172,795
Accumulated deficit (94,880,356) (93,597,258)
Total stockholders' equity 2,791,268 2,861,392
$4,842,292 $4,574,273

NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2016 2015 2016 2015
Revenue:
Product revenue, net $2,343,061 $2,271,979 $10,719,808 $10,271,919
Other revenue 24,283 7,780 62,739 41,270
Net revenue 2,367,344 2,279,759 10,782,547 10,313,189
Operating expense:
Cost of revenue 1,776,592 1,606,702 7,542,876 7,199,594
Gross profit 590,752 673,057 3,239,671 3,113,595
Research and development expense 494,181 303,193 1,553,688 1,272,621
Selling, general and administrative expense 803,057 703,585 2,954,232 3,019,424
Income/(Loss) from operations (706,486) (333,721) (1,268,249) (1,178,450)
Interest income - - - -
Interest expense (3,540) (4,625) (14,849) (13,999)
Other, net - - - -
Income/(Loss) before provision for income taxes (710,026) (338,346) (1,283,098) (1,192,449)
Provision for income taxes - - - -
Net income/(loss) $(710,026) $(338,346) $(1,283,098) $(1,192,449)
Net income/(loss) per share- basic and diluted $(0.02) $(0.01) $(0.04) $(0.04)
Weighted average number of basic and diluted
common shares outstanding 31,229,996 28,585,496 30,911,869 28,574,902
NANOPHASE TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2016 2015 2016 2015
Revenue:
Product revenue, net $2,343,061 $2,271,979 $10,719,808 $10,271,919
Other revenue 24,283 7,780 62,739 41,270
Net revenue 2,367,344 2,279,759 10,782,547 10,313,189
Operating expense:
Cost of revenue detail:
Depreciation 80,503 147,685 471,660 581,382
Non-Cash equity compensation 5,298 5,105 22,398 22,369
Other costs of revenue 1,690,791 1,453,912 7,048,818 6,595,843
Cost of revenue 1,776,592 1,606,702 7,542,876 7,199,594
Gross profit 590,752 673,057 3,239,671 3,113,595
Research and development expense detail:
Depreciation 22,018 27,475 104,852 113,043
Non-Cash equity compensation 9,090 8,279 36,354 34,380
Other research and development expense 463,073 267,439 1,412,482 1,125,198
Research and development expense 494,181 303,193 1,553,688 1,272,621
Selling, general and administrative expense detail:
Depreciation and amortization/impairment 60,121 10,090 88,532 40,449
Non-Cash equity compensation 64,141 27,902 148,317 123,828
Other selling, general and administrative expense 678,795 665,593 2,717,383 2,855,147
Selling, general and administrative expense 803,057 703,585 2,954,232 3,019,424
Income/(Loss) from operations (706,486) (333,721) (1,268,249) (1,178,450)
Interest income - - - -
Interest expense (3,540) (4,625) (14,849) (13,999)
Other, net - - - -
Income/(Loss) before provision for income taxes (710,026) (338,346) (1,283,098) (1,192,449)
Provision for income taxes - - - -
Net income/(loss) $(710,026) $(338,346) $(1,283,098) $(1,192,449)
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):
Addback Interest, net 3,540 4,625 14,849 13,999
Addback Depreciation/Amortization/Impairment 162,642 185,250 665,044 734,874
Addback Non-Cash Equity Compensation 78,529 41,286 207,069 180,577
Adjusted EBITDA $(465,315) $(107,185) $(396,136) $(262,999)

COMPANY CONTACT Nancy Baldwin Investor Relations 630-771-6708

Source:Nanophase Technologies Corporation