Nanalysis Scientific Corp. Reports First Quarter 2021 Financial Results

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.

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Nanalysis Scientific TSXV:NSCI Emerging Tech Investing

Nanalysis Scientific Corp. Announces Director Resignation

Nanalysis Scientific Corp. (" Nanalysis " or the " Company ", (TSXV: NSCI) (OTCQX: NSCIF) (FRA: 1N1) announces that Kham Lin has resigned as a director of the Company effective April 9, 2024 and the Board of Directors has accepted his resignation. The Company would like to thank Mr. Lin for his contributions throughout his tenure as director of the Company.

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

Nanalysis Scientific Corp. operates two primary businesses: Scientific Equipment and Security Services. Within its Scientific Equipment business is what the Company terms "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, the Company announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.

The Company's 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 its partners, the Company provides scientific equipment sales and maintenance services globally.

In 2022, through its subsidiary KPrime, the Company was awarded a five-year, $160 million contract with the Government of Canada to provide maintenance services for passenger screening equipment in Canadian airports. This has resulted in the expansion of the Company's Security Services business. The Company is providing airport security equipment maintenance services for the Government of Canada in each province and territory of Canada . In addition, the Company provides commercial security equipment installation and maintenance services to a variety of customers in North America.

Notice regarding Forward Looking Statements and Legal Disclaimer

All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of 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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SOURCE Nanalysis Scientific Corp.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/10/c1267.html

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Sona Nanotech Secures Grant Funding to Support Intellectual Property Strategy and Development

Sona Nanotech Inc. (CSE: SONA) (OTCQB: SNANF) (the "Company" or "Sona") announces that it has been approved for funding totaling approximately $40,000 to support the development of its intellectual property portfolio.

The Company is receiving advisory services and up to $24,894 in funding from the National Research Council of Canada Industrial Research Assistance Program ("NRC IRAP") IP Assist program to support the development of an intellectual property strategy for Sona's proprietary gold nanorods for novel targeted drug delivery concepts with a view to securing new patents.

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Nanalysis Corp. Receives Funding Supporting AI Software Development for Detection of Illicit Substances

Nanalysis Scientific Corp. ("the Company" or "Nanalysis", TSXV: NSCI OTCQX: NSCIF FRA: 1N1 ), a leader in portable NMR machines, MRI technology for industrial and research applications, and detection equipment services, announces that its subsidiary Nanalysis Corp. is receiving advisory services and up to $1.45 million in non-repayable, non-dilutive funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), to develop Artificial Intelligence based software tools to detect illicit substances on top of the Company's portable Nuclear Magnetic Resonance (NMR) spectrometers.

In the global fight against substance abuse, federal, state, provincial, county and municipal governments around the world are tasked with characterizing increasing volumes of seized contraband. This characterization requires an array of different analytical techniques and is carried out by skilled forensic scientists in thousands of laboratories worldwide. In many cases these laboratories face significant sample backlog due to volume and may have difficulties in identifying new designer drugs.

This project, scheduled for three years, will focus on using quantum mechanical modelling and AI tools to perform analysis of magnetic resonance results generated by Nanalysis benchtop instruments. These tools will not only identify known illicit drugs but will also identify unknown drugs that are derivatives of known illicit substances also referred to as designer drugs or new psychoactive substances (NPS). The non-destructive nature of NMR spectroscopy and the fact that unlike traditional forensic testing methods, it is non-targeted, uniquely positions it to help identify these drugs. The company is developing this application in the context of its quantitative NMR platform technology, which has other applications as well, beyond illicit drug detection.

"We are very grateful for the support of NRC IRAP to further develop complementary software for our Benchtop products," said Nanalysis CEO and Founder Sean Krakiwsky . "This project builds on our ongoing relationship with the LKA police organization in Germany and on our continued culture of magnetic resonance innovation. We look forward to providing more solutions for law enforcement in combatting the increasingly societal problem of designer drugs and other deadly toxins."

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

Nanalysis Scientific Corp. operates two primary businesses: Scientific Equipment and Security Services. Within its Scientific Equipment business is what the Company terms "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, the Company announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.

The Company's 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 its partners, the Company provides scientific equipment sales and maintenance services globally.

In 2022, through its subsidiary KPrime, the Company was awarded a five-year, $160 million contract with the Government of Canada to provide maintenance services for passenger screening equipment in Canadian airports. This has resulted in the expansion of the Company's Security Services business. The Company is providing airport security equipment maintenance services for the Government of Canada in each province and territory of Canada. In addition, the Company provides commercial security equipment installation and maintenance services to a variety of customers in North America .

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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