UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
_________________
CURRENT REPORT
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On May 11, 2022, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Exhibit 99.1 Press release dated May 11, 2022
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NANOPHASE TECHNOLOGIES CORPORATION | ||
Date: May 11, 2022 | By: | /s/ Jess Jankowski |
Jess Jankowski | ||
Chief Executive Officer | ||
EXHIBIT 99.1
Nanophase Reports Record Revenue for First Quarter as it Sets Stage for Strong Year
— Delivered a record $8.2 million in Q1 revenue
— In Beauty Science markets, Solésence revenue is up 29% YOY while Active Pharmaceutical Ingredients (API) sales are up 70%
— Added key team members to support growth
ROMEOVILLE, Ill., May 11, 2022 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB: NANX), a leader in minerals-based and scientifically-driven health care solutions across beauty and life science categories — with innovations that protect skin from environmental aggressors and aid in medical diagnostics — today announced record financial results for the first quarter ended March 31, 2022.
“We are pleased to report a record $8.2 million in revenue as we start the year off with a profitable quarter, approximately $3 million billed in April, and $24 million in open orders that will carry over in 2022,” said Jess Jankowski, Chief Executive Officer. “Our demand remains strong, with our results limited primarily due to production constraints and, in particular, staffing challenges. To address this, we have been in the process of expanding our staffing and infrastructure to allow us to increase our throughput.”
Jankowski continued: “We’re in a sweet spot within what our markets want and are making internal investments to expand and accelerate our growth. We’ve augmented our sales operations group to be able to handle the increasing numbers of products and customers that our growth has created, and we’ve strategically expanded across other key areas as we continue to add new customers to our portfolio.”
Kevin Cureton, Chief Operating Officer, commented: “After a challenging finish to 2021, I am particularly proud of our team — including all of our new team members — as we regained traction to launch over a dozen new products in the quarter. While supply chain challenges — particularly related to specialty ingredients and packaging — have made us scramble to meet the demand, our organization’s flexibility and versatility showed up when it really counted to get these products on the shelves of leading retailers like Sephora, Ulta, Credo, Walmart and Target.”
“The momentum of our finish in Q1 has gotten us off to a fast start in Q2. We expect to continue to show rapid top line growth commensurate with the growth rate we have seen over the past two years,” Cureton continued. “More than a half dozen of the Q1 launches are getting great publicity and are up for various awards. As in the past, this type of notoriety helps drive consumer awareness, acceptance and, ultimately, purchase — which then leads to greater reorders for our Company. It is also an affirmation of our unique ability to deliver best-in-class products, in terms of both enhancing skin health and creating aesthetically beautiful products that consumers want to use again and again. We’re excited to discuss more on our market penetration and growth and the operational improvements under way during the upcoming conference call.”
Operational Highlights
New Business Expansion
Team Expansion
Production Milestone: Record Monthly Revenue
First Quarter Financial Highlights
“We expect that our growth during the remainder of the year will exceed our Q1 performance in terms of revenue, volume, and profitability,” continued Jankowski. “Our expectations are high for the rest of 2022, with plans to exceed $40 million in 2022 revenue, with upside dependent on the timing and success of our planned operational improvements. Kevin and I are looking forward to sharing more in our call tomorrow, and as our strategy drives further growth throughout 2022.”
Conference Call
Nanophase will host its First Quarter conference call on Thursday, May 12, at 10:00 a.m. CDT, 11:00 a.m. EDT to discuss its financial results and provide a business and financial update.
Live audio webcast/conference call:
Webcast: https://edge.media-server.com/mmc/p/5so3sk4b
U.S. Dial-In Number: 877-312-8776
International Dial-In Number: 408-774-4007
The conference ID is 1360727.
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.
FINANCIAL RESULTS AND NON-GAAP INFORMATION
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 (“GAAP”) 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 GAAP.
About Nanophase Technologies
Nanophase Technologies Corporation (NANX), www.nanophase.com, is a leading innovator in minerals-based and scientifically driven health care solutions across beauty and life science categories, as well as other legacy advanced materials applications. Leveraging a platform of integrated, patented, and proprietary technologies, the Company creates products with unique performance, enhancing consumers' health and well-being. We deliver commercial quantity and quality engineered materials both as ingredients and as part of fully formulated products in a variety of formats.
About Solésence Beauty Science
Solésence, LLC, www.solesence.com, a wholly owned subsidiary of Nanophase Technologies, is changing the face of skin health with patented, mineral-based technology that is embraced by leading performance-driven and clean beauty brands alike. Our patented products for brands transform the way mineral actives look, feel and function — enabling textures never-before-seen in the mineral space and inclusivity never-before-seen in the sun care space. Solésence’s innovative formulations offer best-in-class UV protection, unparalleled free radical prevention to protect against pollution, and enhanced antioxidant performance.
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 engineered materials, ingredients, and fully formulated products; 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 31, 2022. 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 | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited Consolidated Condensed) | |||||||||
(in thousands except share and per share data) | |||||||||
March 31, | December 31, | ||||||||
2022 | 2021 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash | $ | 897 | $ | 657 | |||||
Trade accounts receivable, less allowance for doubtful accounts of $80 | |||||||||
for March 31, 2022 and $60 for December 31, 2021 | 5,274 | 3,937 | |||||||
Inventories, net | 8,559 | 6,095 | |||||||
Prepaid expenses and other current assets | 1,005 | 910 | |||||||
Total current assets | 15,735 | 11,599 | |||||||
Equipment and leasehold improvements, net | 4,997 | 4,712 | |||||||
Operating leases, right of use | 11,718 | 12,075 | |||||||
Other assets, net | 7 | 8 | |||||||
Total assets | $ | 32,457 | $ | 28,394 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Line of credit, related party | 3,709 | 1,351 | |||||||
Current portion of finance lease obligations | 70 | 105 | |||||||
Current portion of operating lease obligations | 890 | 589 | |||||||
Accounts payable | 4,953 | 3,566 | |||||||
Current portion of deferred revenue | 848 | 783 | |||||||
Accrued expenses | 961 | 946 | |||||||
Total current liabilities | 11,431 | 7,340 | |||||||
Long-term portion of finance lease obligations | 4 | 6 | |||||||
Long-term portion of operating lease obligations | 11,389 | 11,700 | |||||||
Long-term debt, related party | 1,000 | 1,000 | |||||||
Long-term portion of deferred revenue | 661 | 661 | |||||||
Asset retirement obligations | 224 | 222 | |||||||
Total long-term liabilities | 13,278 | 13,589 | |||||||
Contingent liabilities | |||||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value, 24,088 shares authorized and | |||||||||
no shares issued and outstanding | - | - | |||||||
Common stock, $.01 par value, 60,000,000 shares authorized; | |||||||||
49,026,741 and 48,893,573 shares issued and outstanding on March 31, 2022 | |||||||||
and December 31, 2021, respectively | 490 | 489 | |||||||
Additional paid-in capital | 104,643 | 104,423 | |||||||
Accumulated deficit | (97,385 | ) | (97,447 | ) | |||||
Total stockholders' equity | 7,748 | 7,465 | |||||||
Total liabilities and shareholders' equity | $ | 32,457 | $ | 28,394 | |||||
NANOPHASE TECHNOLOGIES CORPORATION | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited Consolidated Condensed) | ||||||||||||
(in thousands except share and per share data) | ||||||||||||
Three months ended | ||||||||||||
March 31, | ||||||||||||
2022 | 2021 | |||||||||||
Revenue: | ||||||||||||
Product revenue | $ | 8,046 | $ | 7,050 | ||||||||
Other revenue | 110 | 22 | ||||||||||
Total revenue | 8,156 | 7,072 | ||||||||||
Cost of revenue | 5,988 | 5,042 | ||||||||||
Gross profit | 2,168 | 2,030 | ||||||||||
Operating expense: | ||||||||||||
Research and development expense | 666 | 499 | ||||||||||
Selling, general and administrative expense | 1,397 | 1,034 | ||||||||||
Income from operations | 105 | 497 | ||||||||||
Interest expense | 43 | 139 | ||||||||||
Other income, net | - | (952 | ) | |||||||||
Income before provision for income taxes | 62 | 1,310 | ||||||||||
Provision for income taxes | - | - | ||||||||||
Net income | $ | 62 | $ | 1,310 | ||||||||
Net income per share-basic | $ | - | $ | 0.03 | ||||||||
Weighted average number of basic shares outstanding | 48,984,312 | 38,221,292 | ||||||||||
Net income per share-diluted | $ | - | $ | 0.03 | ||||||||
Weighted average number of diluted shares outstanding | 51,064,312 | 39,811,292 | ||||||||||
NANOPHASE TECHNOLOGIES CORPORATION | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE | ||||||||||||
(Unaudited Consolidated Condensed) | ||||||||||||
(in thousands except share and per share data) | ||||||||||||
March 31, | ||||||||||||
2022 | 2021 | |||||||||||
Revenue: | ||||||||||||
Product revenue, net | $ | 8,046 | $ | 7,050 | ||||||||
Other revenue | 110 | 22 | ||||||||||
Total revenue | 8,156 | 7,072 | ||||||||||
Operating expense: | ||||||||||||
Cost of revenue detail: | ||||||||||||
Depreciation | 119 | 86 | ||||||||||
Non-Cash equity compensation | 25 | 5 | ||||||||||
Other costs of revenue | 5,844 | 4,951 | ||||||||||
Cost of revenue | 5,988 | 5,042 | ||||||||||
Gross profit | 2,168 | 2,030 | ||||||||||
Research and development expense detail: | ||||||||||||
Depreciation | 9 | 9 | ||||||||||
Non-Cash equity compensation | 41 | 13 | ||||||||||
Other research and development expense | 616 | 477 | ||||||||||
Research and development expense | 666 | 499 | ||||||||||
Selling, general and administrative expense detail: | ||||||||||||
Depreciation and amortization | 7 | 6 | ||||||||||
Non-Cash equity compensation | 81 | 24 | ||||||||||
Other selling, general and administrative expense | 1,309 | 1,004 | ||||||||||
Selling, general and administrative expense | 1,397 | 1,034 | ||||||||||
Income from operations | 105 | 497 | ||||||||||
Interest expense | 43 | 139 | ||||||||||
Other income, net | - | (952 | ) | |||||||||
Income before provision for income taxes | 62 | 1,310 | ||||||||||
Provision for income taxes | - | - | ||||||||||
Net income | $ | 62 | $ | 1,310 | ||||||||
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures): | ||||||||||||
Addback Interest, net | 43 | 139 | ||||||||||
Addback Depreciation/Amortization | 135 | 101 | ||||||||||
Addback Non-Cash Equity Compensation | 147 | 42 | ||||||||||
Addback Other Income, net | - | (952 | ) | |||||||||
Addback Provision for Income Taxes | - | - | ||||||||||
Adjusted EBITDA | $ | 387 | $ | 640 | ||||||||
COMPANY CONTACT
Investor Relations
630-771-6736
Cover |
May 11, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | May 11, 2022 |
Entity File Number | 000-22333 |
Entity Registrant Name | NANOPHASE TECHNOLOGIES CORPORATION |
Entity Central Index Key | 0000883107 |
Entity Tax Identification Number | 36-3687863 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 1319 Marquette Drive |
Entity Address, City or Town | Romeoville |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60446 |
City Area Code | 630 |
Local Phone Number | 771-6708 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
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