2024 Q1 Form 10-K Financial Statement

#000199937124004138 Filed on March 28, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $9.868M $8.011M $37.30M
YoY Change 4.35% -3.03% -0.05%
Cost Of Revenue $6.287M $7.540M $29.47M
YoY Change -13.97% 3.32% 1.78%
Gross Profit $3.581M $471.0K $7.825M
YoY Change 66.64% -51.09% -6.4%
Gross Profit Margin 36.29% 5.88% 20.98%
Selling, General & Admin $1.551M $1.583M $7.534M
YoY Change -27.86% -24.19% -0.62%
% of Gross Profit 43.31% 336.09% 96.28%
Research & Development $906.0K $785.0K $3.837M
YoY Change -9.67% 7.98% 26.34%
% of Gross Profit 25.3% 166.67% 49.04%
Depreciation & Amortization $13.00K $218.0K $742.0K
YoY Change -92.53% 41.56% 30.86%
% of Gross Profit 0.36% 46.28% 9.48%
Operating Expenses $2.470M $2.368M $11.37M
YoY Change -21.66% -15.88% 7.09%
Operating Profit $1.111M -$1.897M -$3.546M
YoY Change -210.66% 2.43% 57.04%
Interest Expense -$218.0K -$225.0K $838.0K
YoY Change -240.65% 50.0% 119.37%
% of Operating Profit -19.62%
Other Income/Expense, Net
YoY Change
Pretax Income $893.0K -$2.122M -$4.384M
YoY Change -177.05% 5.99% 66.06%
Income Tax $0.00 $6.000K $6.000K
% Of Pretax Income 0.0%
Net Earnings $893.0K -$2.128M -$4.390M
YoY Change -177.05% 7.2% 67.37%
Net Earnings / Revenue 9.05% -26.56% -11.77%
Basic Earnings Per Share $0.02 -$0.09
Diluted Earnings Per Share $0.01 -$0.04 -$0.09
COMMON SHARES
Basic Shares Outstanding 54.80M shares 49.63M shares 49.56M shares
Diluted Shares Outstanding 58.04M shares 49.56M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.018M $1.722M $1.722M
YoY Change 84.46% -21.23% -21.23%
Cash & Equivalents $2.018M $1.722M $1.722M
Short-Term Investments
Other Short-Term Assets $1.550M $1.082M $1.082M
YoY Change 66.13% 24.94% 24.94%
Inventory $13.28M $10.03M $10.03M
Prepaid Expenses
Receivables $5.227M $3.467M $3.467M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $22.08M $16.30M $16.30M
YoY Change 51.99% -1.94% -1.94%
LONG-TERM ASSETS
Property, Plant & Equipment $16.43M $8.668M $16.58M
YoY Change 99.45% 9.05% -2.08%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.000K $4.000K $4.000K
YoY Change -25.0% -33.33% -33.33%
Total Long-Term Assets $16.43M $16.58M $16.58M
YoY Change -3.1% -2.09% -2.09%
TOTAL ASSETS
Total Short-Term Assets $22.08M $16.30M $16.30M
Total Long-Term Assets $16.43M $16.58M $16.58M
Total Assets $38.50M $32.88M $32.88M
YoY Change 22.32% -2.02% -2.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.216M $6.260M $6.260M
YoY Change 3.05% -1.62% -1.62%
Accrued Expenses $2.519M $869.0K $2.166M
YoY Change 122.53% -15.05% 111.73%
Deferred Revenue
YoY Change
Short-Term Debt $850.0K $2.810M $2.810M
YoY Change -87.67% -61.41% -61.41%
Long-Term Debt Due $0.00 $2.000M $2.000M
YoY Change -100.0%
Total Short-Term Liabilities $12.18M $15.59M $15.59M
YoY Change -27.79% -7.4% -7.4%
LONG-TERM LIABILITIES
Long-Term Debt $6.200M $6.000M $6.000M
YoY Change 500.0% 500.0%
Other Long-Term Liabilities $9.176M $9.390M $9.390M
YoY Change -8.4% -6.79% -6.79%
Total Long-Term Liabilities $15.38M $15.39M $15.39M
YoY Change 53.48% 38.97% 38.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.18M $15.59M $15.59M
Total Long-Term Liabilities $15.38M $15.39M $15.39M
Total Liabilities $27.55M $30.98M $30.98M
YoY Change 2.5% 11.0% 11.0%
SHAREHOLDERS EQUITY
Retained Earnings -$103.8M -$104.7M
YoY Change 2.3% 4.59%
Common Stock $548.0K $496.0K
YoY Change 10.71% 0.61%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.95M $1.902M $1.902M
YoY Change
Total Liabilities & Shareholders Equity $38.50M $32.88M $32.88M
YoY Change 22.32% -2.02% -2.02%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $893.0K -$2.128M -$4.390M
YoY Change -177.05% 7.2% 67.37%
Depreciation, Depletion And Amortization $13.00K $218.0K $742.0K
YoY Change -92.53% 41.56% 30.86%
Cash From Operating Activities -$3.855M -$2.650M -$2.006M
YoY Change 392.97% -454.75% 21.58%
INVESTING ACTIVITIES
Capital Expenditures $85.00K $199.0K $1.051M
YoY Change 304.76% -80.59% -62.77%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$85.00K -$199.0K -$1.051M
YoY Change 304.76% -80.59% -62.77%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $4.236M 3.383M $2.593M
YoY Change -1565.74% 73.13% -56.8%
NET CHANGE
Cash From Operating Activities -$3.855M -2.650M -$2.006M
Cash From Investing Activities -$85.00K -199.0K -$1.051M
Cash From Financing Activities $4.236M 3.383M $2.593M
Net Change In Cash $296.0K 534.0K -$464.0K
YoY Change -127.11% -68.14% -130.35%
FREE CASH FLOW
Cash From Operating Activities -$3.855M -$2.650M -$2.006M
Capital Expenditures $85.00K $199.0K $1.051M
Free Cash Flow -$3.940M -$2.849M -$3.057M
YoY Change 390.66% 924.82% -31.66%

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CY2023 us-gaap Nature Of Operations
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<p id="xdx_803_eus-gaap--NatureOfOperations_zHlZjxZQvhBi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(1)</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_826_z2Nyxz6nlKV5">Description of Business</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nanophase Technologies Corporation (“Nanophase,” “Company,” “we,” “our,” or “us”) is a science-driven company which, along with its wholly owned subsidiary, Solésence, LLC (our “Solésence beauty science subsidiary”), is focused in various beauty- and life-science markets.  Using consumer health as our end-goal and science and innovation to guide the path, skin health and medical diagnostics combined currently make up the great majority of our business and drive our forward growth strategy.  We offer engineered materials, formulation development and commercial manufacturing through an integrated family of technologies. Our expertise in materials engineering allows us to effectively coat and disperse particles on a nano and “non-nano” scale for use in a variety of skin health markets, including for use in sunscreens as active ingredients and as fully developed prestige skin care and cosmetics products, marketed and sold through our Solésence beauty science subsidiary.  In terms of our life sciences focus, we have seen current conditions significantly increase demand for our medical diagnostics ingredients, as testing for various viruses, most notably COVID-19, has become a critical use of our technology.<span style="text-decoration: line-through"> </span> Additionally, we continue to sell products in legacy markets, including architectural coatings, industrial coating applications, abrasion-resistant additives, plastics additives, and surface finishing technologies (polishing) applications, all of which, along with medical diagnostics, fall into the advanced materials product category.   </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> We target markets<span style="text-decoration: line-through">,</span> primarily related to skin health products and ingredients<span style="text-decoration: line-through">,</span> as well as diagnostic life sciences ingredients where we believe our materials and products offer practical and competitive minerals-based solutions. We traditionally work closely with current customers in these target markets to identify their material and performance requirements. We market our materials to various end-use applications manufacturers, and our Solésence® products to cosmetics and skin care brands.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recently developed technologies have made certain new products possible and opened potential new markets. During 2015 we were granted a patent on a new type of particle surface treatment (coating) — now called Active Stress Defense ™ Technology — which became the cornerstone of our new product development in personal care, with first revenue recognized during 2016. Active Stress Defense™ now refers to a suite of three proprietary technologies — Original Active Stress Defense™, Kleair™, and Bloom™ — all three of which either utilize a unique and proprietary, mineral-based technology or work synergistically with one of our unique and proprietary, mineral-based technologies to improve performance and/or aesthetics. Our ongoing innovation efforts include new IP in areas that advance environmental protection, align with market needs, and complement our existing technologies Through the creation of our Solésence beauty science subsidiary, we utilize our technology suite to manufacture and sell fully developed solutions to targeted customers in the skin care industry, typically in prestige skin care and cosmetics markets, in addition to the ingredients we have traditionally sold in the personal care area. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although our primary strategic focus has been the North American market, we currently sell materials to customers overseas and have been working to expand our reach within foreign markets. Our common stock trades on the OTCQB marketplace under the symbol NANX.    </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While product sales comprise the majority of our revenue, we also recognize revenue from other sources from time to time. These activities are not expected to drive the long-term growth of the business. For this reason, we classify such revenue as “other revenue” in our Consolidated Statements of Operations, as it does not represent revenue directly from the sale of our products. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recorded a net loss and negative cash flow from operations in 2023.  In addition, the company outstanding debt increased which left little borrowing capacity available. In early March 2024 the company completed an equity financing providing an additional $6 million in funds. For additional information see Note 9. Management believes that current liquidity and available borrowing capacity are sufficient to fund operations and there is not substantial doubt regarding the Company's ability to continue as a going concern.</span></p>
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245000 usd
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530000 usd
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394000 usd
CY2023Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
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118000 usd
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CY2022Q4 us-gaap Preferred Stock Shares Authorized
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P4Y
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1.33
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P4Y10M24D
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1230000 usd
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0.50
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1.92
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1.22
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P4Y2M12D
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160000 usd
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191000 usd
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153000 usd
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ContractWithCustomerReceivableAfterAllowanceForCreditLossCurrent
2152000 usd
CY2022Q4 us-gaap Contract With Customer Receivable After Allowance For Credit Loss Current
ContractWithCustomerReceivableAfterAllowanceForCreditLossCurrent
2202000 usd
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37297000 usd
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37317000 usd

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