Nanalysis Scientific Corp. Reports Second Quarter 2021 Financial Results

Nanalysis Scientific Corp. ("the Company", TSXV: NSCI OTCQX: NSCIF FRA: 1N1 ), released today its second quarter 2021 results.

OPERATING RESULTS
For the three months ended June 30, 2021 , Nanalysis reported consolidated revenue of $4,343K , an increase of $2,348K or 118% from the comparative period in 2020. The increase in revenue was driven by the completion of ongoing RS2D contract milestones and shipments of the Company's new flagship product: The 100MHz spectrometer. For the three months ended June 30, 2021 , Nanalysis recognized revenue related to nine 100MHz units. As of August 26, 2021 , Nanalysis had 24 100MHz on order. On June 1, 2021 , the Company doubled its manufacturing facility and executed a lease for two adjacent bays. The additional manufacturing capacity will allow for increased production and quicker fulfillment of 100MHz backlog.

As of June 30, 2021 , the Company had $3,442K of unearned revenue ( December 31 , 2021- $2,868K ), of which $2,624K will be recognized into revenue over the next 12 months. Unearned revenue relates to prepayments for the 100MHz, prepayment on RS2D contracts and extended warranty sales.

Gross profit for three months ended June 30, 2021 , was $2,922K (a margin of 67%) compared to gross profit of $1,264K (a margin of 63%) for 2020. The company achieved income before other items of $1,234K and $1,498K in Q2 2021 (three-and-six month periods respectively), as compared to losses before other items of $188K and $650K for same periods in 2020.

The Company's net income for the three months ended was $222K an increase of $747K , from the comparative period in 2020, as the company swung from a loss to a profit. The improved results are due to a significant increase in revenue and increased margins, which have been partially offset by increased finance expenses, increased depreciation and amortization, increased stock-based compensation expense, increased research and development expenses, the RS2D earn-out, and deferred income taxes.

For the six months ended June 30, 2021 , the Company reported consolidated revenue of $7,612K , an increase of $4,092K or 116% from the comparative period in 2020. The Company's net loss for the six months ended June 30, 2021 was $253K an improvement of $1,179K from the net loss of $1,432K for the six months June 30, 2020 .

FINANCIAL POSITION
As of June 30, 2021 , the Company had $5,646K of working capital ( December 31, 2020 - $3,717K ), including $3,865K in cash ( December 31, 2020 - $3,158K ). The Company has an undrawn line of credit of $2,000K from its commercial bank. Subsequent to the end of the quarter, the Company announced the closing of a bought deal public offering and concurrent non-brokered private placement for gross proceeds of $10,998K . These funds will be used accelerate organic growth and to continue the Company's acquisition strategy.

OUTLOOK
Sean Krakiwksy, CEO of the Company states "I am very happy to share these strong second quarter 2021 financial results. Our efforts in 2020 are really bearing fruit in 2021 and we expect to be able to build on this momentum in the back half of the year. Strong demand for our 100MHz product, ongoing demand for our 60MHz, and continued interest in the RS2D product line have all contributed to these results. Manufacturing processes continue to be streamlined and standardized, with improvements being integrated into our processes continuously. We expect further increases in 100MHz production capacity in the back half of the year."

$11 MILLION FINANCING CLOSED
On August 25, 2021 , the Company closed a bought deal public offering and concurrent non-brokered private placement for Gross Proceeds of $10,997K . The Company primarily intends to use the proceeds from the finance to expidite its acqusition strategy, while ensuring the Company remains in a strong financial position.

Sean added, "The market has shown incredible confidence in us with our recent raise, and we will put this capital to good use. Modest increases to working capital are required to support growth associated with existing acquisitions, and also for continued strong organic growth. We are now positioned to continue to execute our acquisition strategy and our application parntering growth initiatives. We have a strong acquisition pipeline, made up of targets that will be accretive and strategic, adding essential elements that contribute to our mission of building a fully vertically integrated global scientific instrumentation company. These actions will move us closer to our vision of eventually disrupting the MRI space as part of society's evolution towards preventative personalized healthcare while enabling our existing NMR business to grow at an accelerated rate."

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 offers electronic boards and software used to drive MRI equipment in pre-clinical configurations and are being incorporated into next-gen MRI systems.

To sign up for updates relating to Nanalysis, please complete the online form found HERE .

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.

View original content to download multimedia: https://www.newswire.ca/en/releases/archive/August2021/26/c0958.html