Nanalysis Reports Second Quarter 2022 Results

Nanalysis Scientific Corp. ("the Company", TSXV: NSCI OTCQX: NSCIF FRA: 1N1 ), a leader in portable NMR machines and MRI technology for healthcare and industrial applications, releases its second quarter results ending June 30, 2022. Chief Executive Officer, Sean Krakiwsky and Interim Chief Financial Officer, Randall McRae will host a conference call at 5 P.M. Eastern Time today to discuss the results. A second call will be held for European investors at 8:30am ET on Friday August 26 th . All interested parties are invited to join these calls.

"We continue to record substantial year over year revenue growth," said Sean Krakiwsky, Founder and CEO of Nanalysis. "With that being said, we are not satisfied with our Q2 revenue results, and a lot of focus is being given to regain our previous trajectory. In the second quarter a lot of time, focus, and resources were given to closing the $160 million CATSA contract, which we did on May 25 ^th . Additionally, we underestimated certain operational challenges associated with scaling our benchtop NMR sales organization which impacted our Q2 revenue. We have redoubled our efforts in this area, which is going well, as are other important areas of our business, and are seeing improvments in the current quarter."

Financial highlights for the three months ended June 30, 2022:

For the three months ended June 30, 2022 , the Company reported consolidated revenue of $5,187K , an increase of $844K or 19% from the comparative period in 2021.
Gross margin was 62% for the three months ended June 30, 2022 compared to 67% for the three months ended June 30, 2021 .
(Loss) Income before other items for the three months ended June 30, 2022 was $(947K) versus $1,234K compared to the same period last year.
Net loss for the three months ended was $(2,532K), as compared to the three month net income for June 30, 2021 of $222K.
The Company had cash on hand of $12,278K, an undrawn credit facility of $6,465K, working capital of $13,476K and an undrawn government contribution funding of $4,985K as of June 30, 2022.

Recent strategic and operational highlights during and subsequent to the second quarter of 2022 include:

Awarded $160 Million Multi Year Service and Maintenance Contract: The Company's wholly owned subsidiary K'(Prime) Technologies (KPrime) has won a six year $160 million service and maintenance contract with Canadian Air Transportation Security Authority ("CATSA"), which includes a gradual phase in period of approximately one year. Furthermore, it is common for these types of contracts to be renewed for an additional five years, making it a potential 11 year recuring revenue opportunity, with inflation-adjusted contractual price increases. The effective date of the executed contract is May 25, 2022 and it expires on May 31, 2028. Nanalysis expects to begin billing the customer in Q4 of 2022, and ramping up billing amounts in expectation of completion of the phase-in period in mid-2023.
Integrated K'Prime into Nanalysis and restructured sales model: The Company has restructured their internal sales force with a focus on higher quotas and smaller, more targeted territories combined internal technical support that used to be a cost center and are now being mobilized to revenue generating activities. Additionally, the Company will also be leveraging external manufacture representatives. All in all, the changes we have made will result in roughly 25 people on the ground in the United States to scale up benchtop NMR revenue.
Manufacturing : Nanalysis continues to invest in incrementally increasing production capabilities for all our product lines, in anticipation of strong demand going forward. Recently, the company purchased a state of the art five axis machining center and a wire electrical discharge machine, both from Makino, a global leader in CNC machining center design and digital innovation. These machines will contribute to Nanalysis' continued innovation as well as cost reduction initiatives.
Quad Systems : The company continues to move towards full high-field NMR product launch with Quad System. There have been delays in the completion of the complete suite of modules, but revenue generation has begun. The company is expecting that material revenue from this acquisition will start in 2023.
MRI / Medical Imaging : Nanalysis continues to be active in medical imaging which is consistent with its publicly disclosed strategy. In Q2 the Company won a C$1 million purchase order (P.O.) to deliver a full pre-clinical medical imaging system to a customer in France and was recently notified of an additional contract win of C$1.1 million for a custom MRI system from another France based customer (pending P.O.). Additionally, the previously announced European Union gamma MRI project is proceeding well.

Operating Results

For the six months ended June 30, 2022 , the Company reported consolidated revenue of $10,741K , an increase of $3,129K or 41% from the comparative period in 2021. The increase from Q2 prior year can be attributed to the shipment of more units of the 100MHz, coupled with revenue from the recent acquisition, K'Prime.

Gross profit for the six months ended June 30, 2022 , was $6,577K (a margin of 61%) compared to gross profit of $5,037K (a margin of 66%) for the six months ended June 30, 2021 .

The Company's net loss for the six months ended was $(4,024K) , as compared to the six-month loss June 30, 2021 , of $(253K) . The increased loss was due to higher costs, specifically sales and marketing expenses, increased general and administration expenses and increased research and development expenses, both in the Nanalysis segment and from the new acquisitions. In addition, there were business acquisition costs from the two transactions completed, increased depreciation and amortization expense, increased finance expense partially offset by no RS2D earnout in the quarter and increased revenues.

Outlook

"Our main objective through next year is to capitalize on our recent acquisitions and CATSA service contract. This means we are restructuring and refocusing our benchtop NMR salesforce; we expect to launch the full multi-module high-field NMR product at Quad Systems, and are successfully executing on a methodical rollout of coverage across Canada's airports for the CATSA project," said Sean Krakiwsky .

"We do believe that by the end of 2022, it will become clear that Nanalysis is well positioned for solid growth for years to come, with a strong economic moat, and a motivated team energized for the future. Operational excellence still remains our most important mantra, as we will continue to leverage existing customer relationships, along with our technologies, to fuel growth. So, the rest of 2022 is about consolidation, execution and capitalizing on synergies. We are confident that we will deliver the value we've created by our recent acquisitions to our shareholders," concluded Mr. Krakiwsky.

Conference Call

Investors interested in participating on the live call can dial 1-888-664-6392 or 416-764-8659 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/32l7RdQB0Zw , or on the investor relations section of the Company's website HERE . The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-390-0541 or 416-764-8677, conference ID # 484317.

Additionally, the Company will be hosting a Q&A session for it's European investors tomorrow, Friday, August 26 ^th at 8:30am ET which can be accessed by the following link: Click here to join the meeting ,or call in (audio only) +1 437-703-4522, Phone Conference ID: 636 080 139#.

About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA:1N1)

Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', OTC and the Frankfurt exchange under the ticker symbol '1N1'. The company's business is what we term "MRI and NMR for industry". The company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis recently announced that it has begun selling a 100MHz device in 2020. The Company's new device will be the most powerful and most advanced compact NMR device ever brought to market.

Nanalysis devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.

With the recent acquisition of K'Prime, the company maintains a North American sales and service company of over 40 individuals who cover scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications.

Additionally, the Company has a 43% ownership in Quad Systems AG ("Quad Systems"), with an option to purchase the remaining shares. Quad Systems is a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.

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.

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Nanalysis Scientific TSXV:NSCI Emerging Tech Investing

NSCI:CA

Nanalysis Reports Third Quarter 2023 Results

Nanalysis Scientific Corp. ("the Company") (TSXV: NSCI) (OTCQX: NSCIF) (FRA: 1N1), a leader in portable NMR machines and MRI technology for industrial and research applications, releases its third quarter results ending September 30, 2023. Chief Executive Officer, Sean Krakiwsky, and Chief Financial Officer, Randall McRae, will host a conference call at 5 P.M. Eastern Time today to discuss the results.

"We had a good third quarter with continued strength in Security Services and we are encouraged by the results we are seeing in Benchtop Sales NMR with a 61% improvement sequentially over Q2, 2023," said Sean Krakiwsky Founder and CEO of Nanalysis.

"Security Services, mainly led by the CATSA project, showed significant improvement in margins during the quarter and I expect the project to start generating positive EBITDA ¹ in Q4 as the roll-out continues successfully. We still have some more work to do with Benchtop NMR sales, but we like the current trajectory, and we are seeing see that momentum carrying into the current quarter as we pursue our stated objective of generating positive EBITDA from the business," stated Mr. Krakiwsky.

Financial and Operational Highlights ²

Financial highlights for the three months ended September 30, 2023 :

For the three months ended September 30, 2023, the Company reported consolidated revenue of $7,036K, an increase of $158K from the comparative period in 2022. This includes $3,941K in product sales and $3,095K of service revenue, predominantly related to security equipment services.
Gross profit margins on product sales were 43% for the three months ended September 30 , 2023. Benchtop NMR margins continue to be compressed in the quarter due to downward pressure on selling prices as a result of a slow scientific instrumentation market and higher costs related to post-COVID supply chain issues as well as ongoing inflation. Starting in the second, and into the third quarter, the Company began cost-cutting measures including the reduction of its manufacturing labour force to better align with its current manufacturing requirements. This is expected to have a positive effect on margins going forward. Additionally, the Company continues to analyze its supply chain to manage its material costs.
Service gross profit margins were (2.6%) in Q3 as the successful rollout of the project continued. Revenue is expected to continue to grow as the project ramps to full capacity. As at the release date, the Company has completed approximately 76% of its rollout of the project. With this increased roll out in Q4 2024, it is expected the project will begin generating positive EBITDA.
There was continued training for the CATSA project that began in the first quarter of 2023, resulting in net training expenses of $689K for the three months ending September 30, 2023 , and $2,580K for the nine months ending September 30, 2023 . As stated previously, while training will be an ongoing part of the Company's security service group, expected training costs are coming down, and are not expected to continue at this pace once the CATSA project ramp-up is complete. The Company now has a presence in all airports, however, wages related to airports not yet being fully serviced by the Company continued to be deferred as prepaid expenses, with the Company capitalizing $912K of wages during the quarter.
Loss before other items for the three months ended September 30, 2023, was ( $1,354K ) versus ( $618K ) compared to the same period last year.
Net loss for the three-month period ended September 30, 2023 , was ( $6,287K ) as compared to the three-month loss for September 30, 2022, of ( $2,599K ). Included in this net loss is a $2 .8MM loss related to the deconsolidation of QUAD and associated revaluation of the Company's investment, and as well as an additional $256K loss from associate in Q3 2023.
During the quarter, the Company continued its cost reduction plan, including layoffs, in some of its segments to better align its resources and reduce its fixed costs. To date, the cost savings program will generate annualized fixed cost savings in excess of $2.5 million . The Company continues to explore other fixed cost reductions, not related to labour reductions, to further increase annualized cost savings. In conjunction with this initiative, the Company recognized total restructuring expenses of $437K in Q2 and Q3 2023.
The Company had cash on hand of $1.3 million , an undrawn available credit facility of up to $5 million , working capital of $5.6 million , and undrawn government contribution funding of $1.1 million as of September 30, 2023 .

Recent strategic and operational highlights during and after the third quarter of 2023 include:

Benchtop NMR : The Company has promoted Nick MacKenzie to VP Sales to lead the sales teams for the Benchtop NMR, High Field, MRI, and the 3 ^rd Party Equipment service lines. The previously implemented restructuring changes are starting to deliver an improved sales pipeline, which we expect to yield sales growth going forward.
Security Service : Sime Buric , former VP Sales, is being made an officer of the public company with the title Executive Vice President – Services and will head up our Services business unit. As part of this transition, effective January 1, 2014 , Sime will also become President of the K'Prime subsidiary. The CATSA Project made significant progress in Q3 and is expected to generate positive gross profit in the fourth quarter. As of today, the Company has completed approximately 76% of its roll-out of the project.
MRI : The Company continues to make progress on its large pre-clinical MRI project and expects to recognize significant revenue related to the project in the fourth quarter. We continue to incubate the medium-term opportunity with niche product sales and services.
High Field NMR: The Company sold two of its proprietary High Field NMR consoles to its associate, Quad Systems, during the quarter, and has had other recent successful customer installations of consoles in Europe .
3 ^rd Party Equipment: Slower sales in the scientific equipment market continue to hamper 3 ^rd Party Equipment and results in Q3 were not as strong as those in Q2, however they remain above Q1 2023.

Financial highlights for the nine months ended September 30, 2023 :

For the nine months ended September 30, 2023 , the Company reported consolidated revenues of $18,666K , an increase of $1,048K from the comparative period in 2022. The primary driver of growth was continued growth in the Security Services business led by the CATSA Project which was not yet generating revenue by Q3 2022. Offsetting that was K'Prime 3 ^rd party product sales which were down $987K year over year as a result of softness in the scientific equipment market, particularly in its US regions. The Nanalysis segment was down year over year by $3,883K because of downward market pressure, continuing effects from the significant turnover in its Benchtop NMR sales organization, and the fact that Quad revenue is no longer consolidated effective July 1 , 2023. The Company believes that the effects of the sales organization turnover were felt most prominently during Q1 and Q2 of 2023, and in the third quarter has begun to overcome those challenges.

Gross profit for the nine months ended September 30, 2023, was $2,252K (a margin of 12%) compared to gross profit of $9,258K (a margin of 53%) for the nine months ended September 30, 2022, driven mostly by the fact that the CATSA Project has been ramping up through 2023, bringing down average margins.

The Company's net loss for the nine months ended was $(14,661K), as compared to the nine-month loss for September 30, 2022 , of $(6,623K). Lower product sales and lower margins on those products, combined with costs associated with the ramp-up of the CATSA project, resulted in an increased net loss for this period. This includes one-time up-front training costs related to the CATSA Project, and other non-deferrable project-related costs. Partially offsetting decreased gross profits were savings realized in sales and marketing expense, general and administration expenses, and lower research and development expenses. Furthermore, this net loss includes the loss on associate from QUAD as well as the $2 .8MM loss on deconsolidation referenced above.

Comments and Outlook

"We are encouraged by sequential growth of our benchtop sales from Q2 to Q3, and we are seeing that continue into Q4," said Sean Krakiwsky, Founder and CEO of Nanalysis. "On an operational level we feel we are better aligned with our recent leadership changes Security Services and our sales organization. Sime Buric was instrumental in landing the CATSA Project and continues to show leadership and expertise in this space. He has tremendous customer relationships and has established excellent partnerships that will drive growth of this business unit in Canada and the United States in 2024. In 2023, Sime's CATSA team has hit their targets as we transition to profitability and are now poised for impressive growth. Promoting Nick MacKenzie to VP of Sales lets Sime focus on growing the Security Services business, while it allows Nick to step up and leverage the changes we have made earlier this year to continue to grow all product sales. Nick is an accomplished sales professional in the analytical instrumentation industry with over 15 years' experience with mass spectrometers, chromatography machines, and other established products. He is now excited about growing the market for Benchtop NMR and leading the management of our High Field NMR sales initiative.

"Regarding our High Field NMR partnership with Quad Systems AG of Switzerland , we are pleased with their technical accomplishment of developing a full system that they are demonstrating to customers. Although Quad has not yet shipped a full system to a customer, Nanalysis and Quad have made several console and probe shipments, respectively, to customers, from which feedback has been positive. We have attended several exhibitions in 2023 and will continue to grow this initiative with our partner in 2024. With Benchtop NMR, we are a leader in a nascent market and driving new applications, while in High Field NMR with our console product and our strategic investment in Quad, we are focused on taking market share away in an already established large market with only two competitors. Our High Field and Benchtop initiatives are synergistic in terms of both technology as well as cross selling," continued Mr. Krakiwsky.

"With the changes implemented right-sizing our R&D and manufacturing capacity, particularly as it relates to Benchtop NMR, we believe we are poised to return to growth in 2024, and to begin our era of profitability. We continue to hold our place as a leader in Benchtop NMR and plan to retain that position through continued innovation and cross pollination of technologies used in our product lines," continued Mr. Krakiwsky.

"Finally, I would like to make a very important announcement, regarding the current President of K'Prime, Mr. Kham Lin : After a 30-year prolifically successful career in analytical instrumentation and security services, Mr. Lin will be retiring from his full-time role, effective December 31, 2023 . Among Mr. Lin's many professional accomplishments are building a prosperous company in K'Prime Technologies, which culminated in the winning of the $160 million CATSA contract and successful ramp up of that project. We all wish Mr. Lin a fruitful retirement, where he will focus on spending more time with family and generously donating his time, resources, and expertise to his various philanthropic activities, especially the Alberta Cancer Foundation and the Lin Family Foundation. I know that Mr. Lin has full confidence in the team that he has built, including Sime Buric who will succeed him as President of K'Prime and Executive Vice President - Services, heading up the CATSA Project and other services contracts," concluded Mr. Krakiwsky.

Conference Call

Investors interested in participating in the live full year call can dial 1-888-664-6392 or 416-764-8659 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/r3VaMyOQbg1 or on the investor relations section of the Company's website HERE .

The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-390-0541 or 416-764-8677, conference ID # 964847.

Additionally, the Company will be hosting a Q&A session for its European investors that is at 8:30am ET tomorrow, Thursday , November 30, which can be accessed by the following link: Click here to join the meeting

About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)

Nanalysis' business is what we term "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020 Nanalysis announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.

Nanalysis' devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.

In 2022 the Company acquired K'(Prime) Technologies Inc. (K'Prime), a North American sales and service company which provides sales services for scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications. K'Prime's service organization provides airport and commercial security installation and maintenance solutions across North America .

Additionally in 2022, the Company acquired a 43% ownership in Quad Systems AG ("Quad Systems"), a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.

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.

_______________________

¹ Please refer to the Company's Q2 2023 Management Discussion and Analysis for a discussion of non-IFRS measures.

² Financial Highlights should be read in conjunction with the Company's Q3 2023 Management Discussion and Analysis as well as the Q3 2023 Interim Condensed Consolidated Financial Statements.

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	30-Sep-23			31-Dec-22
ASSETS
Current
Cash & cash equivalents		2,988,700			3,777,117
Receivables		102,749			744,331
Deferred asset		91,168			256,818
Contract asset		218,100			332,197
Prepaid expenses		407,591			310,906
Inventory		-			45,289
Non current assets held for sale		-			501,188
Total current assets		3,808,308			5,967,846

Equipment		291,637			278,463
Deferred consideration		206,850			-
Right of use asset		-			829,278
Finance lease receivable on sublease		898,578			-
Intangible assets		1,688,111			3,313,741
Goodwill		6,560,040			6,746,378
Total assets		13,453,524			17,135,706

LIABILITIES
Current
Accounts payable and accrued liabilities		3,484,625			2,641,918
Factoring liability		505,847			-
Deferred revenue		299,222			437,746
Lease liability		148,037			222,250
Liabilities associated with assets held for sale		-			92,532
Total current liabilities		4,437,731			3,394,446

Lease liability - non current		516,511			582,586
Deferred tax liabilities		12,000			29,974
Total liabilities		4,966,242			4,007,006

Shareholders' Equity
Share capital		90,530,169			83,271,707
Reserves		16,234,630			12,754,706
Accumulated Other Comprehensive Income		883,405			827,101
Shareholder's equity attributable to Nextech shareholders		(102,334,982	)		(85,898,862	)
Total common shareholders' equity		5,313,222			10,954,652
Non controlling interest		3,174,060			2,174,048
Total equity		8,487,282			13,128,700
Total liabilities and shareholders' equity		13,453,524			17,135,706

				QTD						YTD
	30-Sep-23			30-Sep-22			30-Sep-23			30-Sep-22
	$			$			$			$
Revenue		1,178,377			908,227			3,882,804			1,970,383
Cost of sales		(1,035,692	)		(348,447	)		(2,678,033	)		(950,233	)
Gross profit		142,685			559,780			1,204,771			1,020,150

Operating expenses:
Sales and marketing		867,586			1,177,539			3,876,879			4,079,251
General and administrative		1,992,096			2,112,681			7,376,579			9,075,983
Research and development		1,063,667			1,157,408			2,820,833			3,064,874
Stock based compensation		1,305,299			311,301			3,560,441			1,768,392
Amortization		565,064			597,354			1,595,817			2,076,161
Right of use amortization		-			166,023			55,728			204,476
Depreciation		19,580			47,943			64,457			111,182
Operating profit (loss)		(5,670,607	)		(5,010,469	)		(18,145,963	)		(19,360,169	)

Other income (expense):
Gain on sublease recognition		-			-			120,626			-
Loss on asset disposal		-			-			(85,679	)		-
Loss (gain) on short-term investments		-			90,744			-			90,744
Foreign exchange gain (loss)		519,944			529,564			(43,542	)		931,587
Profit (Loss) before income taxes		(5,150,663	)		(4,390,161	)		(18,154,558	)		(18,337,838	)

Current income tax expense		-			(7,128	)		(18,039	)		(21,384	)
Deferred income tax recovery		(203,306	)		126,777			-			387,562
Net income (loss) from continuing operations		(5,353,969	)		(4,270,512	)		(18,172,597	)		(17,971,660	)

Income (loss) from discontinued operations		(108,451	)		(133,252	)		(452,697	)		(3,129,201	)
Net loss		(5,462,420	)		(4,403,764	)		(18,625,294	)		(21,100,861	)

Other comprehensive income (loss)
Exchange differences on translating foreign operations, continuing operations		(301,569	)		(173,184	)		56,304			(188,316	)
Comprehensive income (loss)		(5,763,989	)		(4,576,948	)		(18,568,990	)		(21,289,177	)

Net loss from C/O attributed to:
Parent		(3,609,011	)		(4,270,512	)		(15,233,423	)		(17,971,660	)
Non controlling interest - PL		(1,744,958	)		-			(2,939,174	)		-

Net loss from D/O attributed to:
Parent		(108,451	)		(133,252	)		(452,697	)		(3,129,201	)
Non controlling interest - PL		-			-			-			-

Comprehensive loss attributed to:
Parent		(4,019,031	)		(4,576,948	)		(15,629,816	)		(21,289,177	)
Non controlling interest		(1,744,958	)		-			(2,939,174	)		-

Loss per share from C/O - basic and diluted		(0.03	)		(0.04	)		(0.14	)		(0.18	)


Loss per share from D/O - basic and diluted		(0.00	)		(0.00	)		(0.00	)		(0.03	)

Weighted average number of common shares outstanding
Basic and diluted		116,483,966			98,641,286			111,118,475			99,201,669

				YTD
	30-Sep-23			30-Sep-22
Operating activities:
Net loss		(18,625,294	)		(21,100,861	)
Items not affecting cash
Amortization of intangible assets		1,595,817			2,076,161
Amortization of ROU		55,728			204,476
Depreciation of property and equipment		64,457			111,182
Expenses paid by shares		474,250			1,446,852
Interest expense from lease		21,623			22,043
Interest income from sublease		(26,774	)		-
Impairment of intangible assets & goodwill		184,097			2,702,313
Income tax expense (recovery)		18,039			-
Deferred tax expense (recovery)		-			(387,562	)
Gain on short-term investment		-			(90,744	)
Gain on sublease recognition		(120,626	)		-
Loss on asset disposal		85,679			-
Loss on PET disposal		173,534			-
Stock based compensation		3,560,441			1,768,392
Changes in non-cash working capital balances
Receivables		641,582			438,862
Deferred asset		165,650			(260,639	)
Contract asset		114,097			124,510
Prepaid expenses		(96,685	)		277,032
Inventory		45,289			2,251,124
Accounts payable and accrued liabilities		914,842			(451,613	)
Factor liability		505,847			-
Deferred revenue		(138,524	)		(137,166	)
Total operating cash flow		(10,386,931	)		(11,005,638	)

Cashflows from investing activities
Purchase of equipment		(162,813	)		(83,606	)
Payments received from sublease		16,577			-
Net cash provided by (used in) investing activities, continuing operations		(146,236	)		(83,606	)

Cashflows from financing activities
NTAR - Net proceeds from private placements		4,778,060			8,938,406
NTAR - Proceeds from Employee Pay Program		2,388,698			1,488,526
Proceeds from securities issuances to NCI		2,682,260			-
Repayment of loan		-			(90,896	)
Payments of lease liability		(157,224	)		(282,787	)
Net cash provided by (used in) financing activities, continuing operations		9,691,794			10,053,249

Effects of foreign exchange on cash		52,956			(910,835	)
Change in cash during the period		(841,373	)		(1,035,995	)
Cash, beginning of period		3,777,117			7,237,296
Cash, end of period		2,988,700			5,290,466

Taxes paid		-			21,790
Interest paid		21,623			23,457
Interest received from sublease		4,510			-
Interest received from GIC		78,246			73,721

Nanalysis Reports Second Quarter 2022 Results

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