Nanalysis Scientific Corp. Reports First Quarter 2021 Financial Results
CALGARY, AB, May 20, 2021 /CNW/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), released today its first quarter 2021 results.
Three months ended March 31, 2021 |
|||
($000's) |
2021 |
2020 |
Change |
Revenue |
3,277 |
1,523 |
1,754 |
Cost of products sold |
1,155 |
541 |
614 |
Gross profit |
2,122 |
982 |
1,140 |
Expenses |
|||
Sales and marketing |
1,039 |
681 |
358 |
General and adminstration |
700 |
765 |
(65) |
Research and development |
116 |
- |
116 |
Earnings (loss) before other items |
267 |
(464) |
731 |
Other items (1) |
734 |
539 |
(113) |
Deferred tax recovery |
- |
(93) |
(558) |
Net loss |
(467) |
(910) |
1,402 |
Other comprehensive income (loss) |
49 |
(25) |
74 |
Total comprehensive loss |
(418) |
(935) |
517 |
(1) other items includes business acquisition transaction costs, stock-based compensation, depreciation and amortization expense, finance expense (income), foreign exchange loss, and RS2D earn-out |
OVERALL PERFORMANCE
For the three months ended March 31, 2021, the Company reported consolidated revenue of $3,277K, an increase of $1,754K or 115% from the comparative period in 2020. The increase in revenue is due to the completion of ongoing RS2D contract milestones and shipments of Nanalysis' new flagship 100 MHz spectrometer. During the quarter Nanalysis recognized revenue related to six 100MHz units. The gradual ramp up of manufacturing limited production quantities in the first quarter, leaving Nanalysis with 22 100MHz orders in the growing order backlog.
As of March 31, 2021 the Company has $3,924K of unearned revenue (December 31, 2021 $2,868K), of which $1,144K relates to prepayments for the 100MHz. The increase was due to customer deposits on pre-orders for RS2D products, partially offset by shipments of the 100MHz against prepaid orders.
Gross profit for the three months ended March 31, 2021 was $2,122K (a margin of 65%) compared to gross profit of $982K (a margin of 64%) for Q1 2020.
The Company recorded earnings before other items of $267K, as compared to a loss before other items of $464K in Q1 2020. The Company's comprehensive loss for the three months ended was $418K (March 31, 2020 - $935K), an improvement of $517K or 55% from the comparative period in 2020. The improvement is attributed to a significant increase in revenue, and increased finance income that has been partially offset by increased depreciation and amortization, increased stock-based compensation expense, increased research and development expenses, and RS2D earn-out payment.
FINANCIAL POSITION
At March 31, 2021, the Company had $4,662K of working capital (December 31, 2020 - $3,049K), including $4,660K in cash (December 31, 2020 - $3,158K). The Company has an undrawn line of credit of $2,000K from its commercial bank and $167K of available borrowing on the Western Economic Diversification Canada interest free loan.
OUTLOOK
Sean Krakiwksy, CEO of the Company states "I am pleased to report solid first quarter 2021 financial results despite the negative impacts the global pandemic has had on our operations. Our efforts in 2020 are starting to manifest themselves in our results. The initial shipments of our 100MHz product, ongoing demand for our 60MHz, and continued interest in the RS2D product lines have contributed to our strong quarter. Manufacturing processes continue to be streamlined and standardized. This will increase the number of 100MHz units that were able to ship going forward, and we expect to reduce the order fulfillment lag time and clear our current order backlog."
The Company has completed the first quarter with an increase of $1.5 million to working capital, a strong sales pipeline and continued demand for the new 100MHz product. The Company has successfully adapted to pandemic operations and believes that the eventual lifting of covid restrictions will only further boost growth. The Company is well-positioned to execute current initiatives and continues to drive new expansion opportunities. As always, we will do so while striving to deliver value to our shareholders.
About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)
Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', Over-the-Counter (OTC) in the United States under the ticker symbol 'NSCIF', and on the Frankfurt Exchange (FRA) under the symbol '1N1'.
Nanalysis is an international business focused on capitalizing its proprietary technologies in nuclear magnetic resonance (NMR) that go into NMR spectrometers and magnetic resonance imaging (MRI). Nanalysis operates out of two subsidiaries, Nanalysis Corp. and RS2D S.A.S. (RS2D).
Nanalysis Corp. is an industry leader in developing and manufacturing compact NMR spectrometers for laboratory and industrial markets. Its cutting edge 60 and 100 MHz spectrometers require no liquid helium or other cryogens. Its spectrometers are used by chemical professionals spanning industries, including, but not limited to, oil and gas, chemical mining, pharmaceutical, and biotechnology.
Through its European subsidiary RS2D, the Company's electronic boards and software are used in MRI equipment and are being incorporated into next-gen MRI systems as well as miniaturized MRI devices.
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Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nanalysis Scientific Corp.
Matt Sellers, Investor Relations, Nanalysis Scientific Corp., T +1.587.436.1291, E [email protected]
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