Nanotech Security Reports 131 Percent Increase in Revenues Over 2014

Nanotech Security (TSXV:NTS) reported its financial results for the fourth quarter and year ended September 30 2015. The company reported a 131 percent increase in revenues relative to 2015, rising to $5.2 million. Specifically, security features contributed revenues of $3.1 million.
As quoted in the press release, additional highlights included:

• Gross margin improved to 43% up from 34% in the same period last year. The improvement reflects the increased mix of higher margin Security Features revenue.
• Signed two banknote security feature development contracts. The contracts are with top ten issuing authorities to develop unique optically-variable security features for incorporation into future banknotes.
• Strategic meetings with large international banknote issuing authority. The Company has been approached by a large international banknote issuing authority to deliver a large volume of Optical Thin Film (“OTF”), and partner with our KolourOptik™ technology. Management continues to devote a significant amount of time and resources in advancing these opportunities.
• Private Placement. The Company completed a non-brokered private placement financing of $2.6 million in equity units at $1.00 each.
• Signed an amending agreement related to the 2014 Fortress Optical purchase agreement. The amendment provides that 1.5 million of the 3.0 million shares held in escrow, pending certain sales milestones were released from escrow and the remaining 1.5 million shares were returned to the treasury. The overall effect of the amendment resulted in a gain of $1.5 million and cancellation of 1.5 million shares.
• Demonstrated KolourOptik™ security feature on metal coins. The Company successfully applied nanotechnology images to metal coins in a production environment at an issuing mint.
• Granted five new patents expanding the growing IP portfolio. Three patents relate to the Company’s next generation nanotechnology authentication features, and two provide increased protection for OTF.

Nanotech CEO and Chairman, Doug Blakeway, said:

In terms of revenue and interest in our products, 2015 was a record year for the Company. Issuing authorities and some consumer goods companies are approaching us with increased interest and positive feedback about our security features. This and our recent MOU with Hueck Folien positions us extremely well for 2016.

Click here for the full press release.