CALGARY, April 23, 2020 /CNW/ - Nanalysis Scientific Corp. ("Nanalysis" or the "Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1) released its fourth quarter and annual 2019 results today.

Financial Position

At December 31, 2019, Nanalysis had $8,534k (December 31, 201 - $3,802k) in working capital, including $6,619k (December 31, 2018 - $779k) in cash. In addition, the Company has an undrawn line of credit of $2,000k and $1,772k of available borrowing on the Western Economic Diversification Canada interest free loan.

Overall Performance

During the year ended December 31, 2019, Nanalysis recognized revenue of $8,364k, a marginal decrease over the $8,381k recognized for the comparable year ended December 31, 2018. Nanalysis experienced flat growth year over year as new competitors entered the marketplace, coupled with the anticipation of customers waiting for the release of the 100MHz product. As at December 31, 2019 Nanalysis saw a large increase to unearned revenue to $616k as compared to $316k as at December 31, 2018. The increase is due to an increase in extended warranty sales to customers which is then recognized on a straight-line basis over up to five years. Deposits on pre-orders of the 100MHz product also formed part of the increase in unearned revenue.

Gross profit for 2019 was $6,060k (a margin of 72%) compared to gross profit of $5,398k (a margin of 64%) for 2018.

The Company's comprehensive loss for the year ended December 31, 2019 was $1,660k as compared to comprehensive income of $74k in 2018. Much of the loss was due to RTO transaction costs, increased depreciation and amortization, foreign exchange loss and deferred income tax expense partially offset by increased gross margin.

Outlook

Nanalysis is addressing the recent outbreak of the novel coronavirus ("COVID-19") and the related economic and social disruption, volatility in financial markets, potential disruption to global supply chains, and the ability to directly and indirectly staff the Company's day to day operations. The governments of Canada and France have significant COVID-19 related payroll support programs available, and Nanalysis, where applicable, will take full advantage of these programs. Despite macro forces presenting new challenges, Nanalysis continues to have confidence that the market for compact NMR spectrometers and related accessories and services will grow for the next two decades. The nascent nature of the opportunity coupled with the value proposition to customers will continue to see demand for compact NMR grow. Nanalysis expects to continue to be a leader in the market, currently Nanalysis actively manages a pipeline of existing and new customers via its sales and international distribution organization, that continues to expand.

2019 Highlights

2019 was a transformative year for Nanalysis, several key objectives were completed as Nanalysis continues to execute its strategic plan. These accomplishments in 2019 and early 2020 include:

• Completed RTO of Canvass Ventures, providing a public platform for Nanalysis
• Completed financing of 8.3 million units at 0.60 cents, for gross proceeds of $5,000k
• Completed private place 2.5 million units at 0.60 cents, for gross proceeds of $1,250k
• The marketing launch of the 100MHz compact NMR device, the worlds first
• Listed on the Frankfurt exchange under ticker symbol ('1N1')
• Nanalysis acquired all of the outstanding shares of RS2D S.A.S. ("RS2D"), a technology company based in Strasbourg, France that designs and builds electronics components for precision analytical instruments. The technology acquired will further set Nanalysis products apart from its competitors
• Listed on the OTCQXB under ticker ('NSCIF'), providing access to the US market, Nanalysis will continue to increase its investor base

CEO Sean Krakiwsky added, "Nanalysis enters 2020 with a well-structured balance sheet, strong working capital position, significant cash on hand and untouched borrowings. We will use our financial position to spur organic growth, growth with partners and to pursue acquisition opportunities that fit our strategic objectives and meet our financial expectations." 

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

Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI' and over the counter in the United States under the ticker symbol 'NSCIF'. The company's business is what we term "MRI for industry": It develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady60™ was the first fully featured portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens, and the company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis recently announced that it will begin selling a 100MHz device in mid-2020. The Company's new device will be the most powerful non-cryogen, permanent magnet NMR device ever brought to market.

Nanalysis devices are used by chemical professionals in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, 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.

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.

The TSX Venture Exchange or other regulatory authority has not reviewed, approved, or disapproved the contents of this press release. We seek safe harbor.

SOURCE Nanalysis Scientific Corp.

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