MONTREAL, QUEBEC--(Marketwired - Nov. 24, 2014) - ThermoCeramix Corporation ("ThermoCeramix" or the "Company") (TSX VENTURE:TCX), an engineering technology company engaged in the development of environmentally-friendly high-efficiency heating solutions for industrial, commercial and residential applications, today released its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis of its financial position and results of operations ("MD&A") for the three and nine months ended September 30, 2014.
Results of Operations:
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Three-months Three-months Nine-months Nine-months
ended Sept. ended Sept. ended Sept. ended Sept.
30, 2014 30, 2013 30, 2014 30, 2013
Unaudited ($) Unaudited ($) Unaudited ($) Unaudited ($)
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Net research & 531,972 (66,033) 803,961 184,057
development
expenses
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Administrative 333,525 193,526 1,714,882 810,668
expenses
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Listing costs - - 961,269 -
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Other income (18,725) (44,251) (18,725) (135,749)
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Net interest 9,581 54,294 73,322 108,527
expense
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Net loss for the 677,566 104,762 3,379,122 982,574
period
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Net loss per share 0.02 0.31 0.14 1.56
(basic and
diluted)
---------------------------------------------------------------------------"We were pleased to begin commercial production of our first product powered by ThermoCeramix's patented TCX(TM) heating technology," commented Louis Desmarais, Chief Executive Officer. "Our new Hibachi Electric Grill, now being marketed through our wholly-owned subsidiary Downtown Grill Inc., is generating significant interest among leading retailers, and we expect to see the product on store shelves and available on-line within the next few months."
Net research and development ("R&D") expenses increased for the three and nine months ended September 30, 2014 compared to the prior year periods due primarily to the acceleration of business activities in 2014, a decrease in R&D tax credits, and lower government grants in the current year compared to the prior year.
General and administrative expense increased in the third quarter and first nine months of 2014 compared to the prior year periods due primarily to share-based compensation expenses incurred in the current year in connection with the Company's qualifying transaction, and higher general and administrative expense due to the acceleration of business activities in 2014 in comparison to the same periods in 2013.
Other income, comprised of R&D service contracts and instrument sales, declined in the third quarter and first nine months of 2014 due to reduced sales in the current year of a specialized heater tube for testing water purity for use in advanced testing systems for water treatment plants, partially offset by limited sales of electric grates in the third quarter of 2014.
Net interest expense declined for the three and nine months ended September 30, 2014 compared to the same periods last year due primarily to lower interest expense and higher interest income due to higher average cash balances in the current year.
The Company's net loss for the three and nine months ended September 30, 2014 is primarily due to higher general and administrative expenses, an acceleration of business activities, and reduced other income in 2014 combined with lower R&D tax credits and government grants in 2014.
As at September 30, 2014, the Company held cash of $5,926,590, an increase of $4,367,994 from December 31, 2013. On February 13, 2014, ThermoCeramix, Inc., a wholly owned subsidiary of the Company, completed the second round of a private placement for gross proceeds of $325,000 and subsequently on May 5, 2014 the Company completed a bought deal private placement offering for gross proceeds of $7,500,000. The Company believes these financings will facilitate growth and provide sufficient liquidity to support the ongoing business for the foreseeable future.
Business Update
During and subsequent to the third quarter of 2014, the Company continued to make progress in commercializing its patented TCX(TM) heating technology and enhance its manufacturing capabilities:
-- Mr. Lloyd LeBlanc was hired as Senior Vice President of Strategy and
Business Development. Mr. LeBlanc has over 20 years of commercialization
and business experience.
-- The Company continued to distribute its Downtown Electric Grill through
Williams Sonoma.
-- The Company's wholly-owned subsidiary Downtown Grill Inc. ("Downtown
Grill") started to market and find vendors for its line of electric
barbecues.
-- The Company began commercial production of its new Hibachi Electric
Grill. The Hibachi Grill reaches cooking temperatures of up to 700
degrees F in less than ten minutes without a lid, superior performance
to most gas barbecues with their lids open. The Hibachi Grill plugs into
a 120 volt 15 amp GFI outlet, and therefore generates no flame and uses
no fuel or gas, making it safe to use indoors or out. The grill is
lightweight, portable, practical, easy to store, and responds to
significant demand from residents of condominium and apartment buildings
with open flame barbecue restrictions.
-- The Company is in discussions with a number of leading retailers to
market and sell the Hibachi Electric Grill and other future Downtown
Grill products.
-- The Company is in discussions with a number of international consumer
appliance companies to develop and license various high efficiency
appliances. Similar to its grill and barbecue applications, the
Company's patented heating technologies can be adapted to various
household appliances.
-- The Company is in discussions with aerospace and automotive parts
producers to develop and license applications of its patented heating
technologies for the production of injection moulded parts. The Company
believes that by using TCX(TM) technology, such parts can be produced in
larger sizes with thinner walls and more efficiently and quickly than
under existing methods; and the company has a product development
contract with a leading injection moulding company.
-- The Company is in the process of applying for a number of additional new
patents related to its proprietary technologies and applications to
further extend its market reach.About ThermoCeramix
ThermoCeramix Corporation is an engineering technology company engaged in the development of environmentally-friendly high-efficiency heating solutions. The Company's patented and proprietary TCX(TM) heating technology uses thermal spray film heaters applied as a coating of electro-resistive material directly to almost any profile and material that requires heat. The technology is energy-efficient, scalable, and adaptable to almost any size and shape. The Company holds a strong and broad intellectual property portfolio of over 25 patents. The Company's strategy is to commercialize one application of its technology platform through the development, production and sales of a unique electric barbecue, then license the technology for numerous additional consumer, commercial & industrial applications. For more information, please visit the Company's web site at
www.thermoceramix.com.
Caution Regarding Forward Looking Information
Certain information set forth in this press release may contain "forward-looking statements" or "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein may constitute forward-looking statements. Any such forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believe", "projects", "plans", "to be" and similar expressions. Any such statements are not guarantees of future performance and undue reliance should not be placed on them. Any such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that any such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For more information relating to risks which may cause the Company's actual results to be different from expected and historical results, please see the Company's "Filing Statement" dated March 26, 2014 filed under the Company's SEDAR profile at
www.sedar.com, including the specific risks contained therein under the headings "Risk Factors - Protection of Intellectual Property" and "Risk Factors - Expected Development of Markets".
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.