Published: March 10, 2006
Altair Nanotechnologies Reports 133 Percent Revenue Increase for Fiscal 2005
Altair Nanotechnologies Inc. (NASDAQ: ALTI) today
reported financial results for its year ended December 31, 2005.
Altairnano reported revenue of approximately $2.8 million, a 133 percent
increase, when compared to revenue of approximately $1.2 million for fiscal
2004.
"We are pleased with our financial results and revenue growth for fiscal
2005," commented Altairnano Chief Executive Officer and President Alan, J.
Gotcher, Ph.D. "Revenue from contracts and grants increased 92 percent,
while revenue generated from commercial collaborations increased more than
49 percent during fiscal 2005. Sales of battery electrode materials and
thermal spray materials drove product revenue from $7,503 in fiscal 2004 to
approximately $149,000 in 2005."
Dr. Gotcher continued, "We are experiencing solid business development
progress with the advancement of our battery initiative, testing of our
thermal spray nanoparticles, expansion of our pigment platform, and ongoing
development of Renalan, our pharmaceutical product for the treatment of
elevated phosphate levels in companion animals. We expect a number of
commercial opportunities in these markets to begin producing recurring and
sustainable revenue during 2006."
The net loss for fiscal 2005 increased by 43 percent to approximately $10
million, or a net loss per share of $0.17, versus a net loss of $7 million,
or a net loss per share of $0.14, for fiscal 2004. The increase in
expenditures is associated with increased efforts in product development,
marketing and sales initiatives.
"During 2005, our operating expenses increased due in part to additional
laboratory facilities in Reno, Nevada, new manufacturing operations in
Indiana, Sarbanes-Oxley compliance, and non-cash charges such as stock
option compensation expenses," commented Altairnano Chief Financial Officer
Edward Dickinson. "In support of our growth strategy and development plans
for fiscal 2005 and 2006, these increases are due in part to the investment
in our battery initiative and increased business development efforts."
Dickinson continued, "Net cash used in operations averaged approximately
$556,000 per month for the first three quarters, and approximately $942,000
per month during the fourth quarter, as we hired additional personnel and
continued to increase investments in product and business development."
As of December 31, 2005, Altairnano's balance sheet was strong, with a cash
position and short term investments of approximately $23 million, compared
to $7.4 million at December 31, 2004. With the exception of a $3.0 million
promissory note to acquire its Reno, Nevada facilities, the company has no
debt of consequence.
Please join a conference call with Altairnano's management team for an
update of the company's financial results and principal product
developments. The conference call is being held today, March 10, 2006, at
11:00 a.m. Eastern Standard Time. The dial-in number is 973-935-2981 and
the conference number is 7115926. The conference call will be available via
a live web cast at either www.altairnano.com or
http://viavid.net/dce.aspx?sid=00002E3B.
ABOUT ALTAIR NANOTECHNOLOGIES INC.
Altairnano is an innovator and supplier of advanced ceramic nanomaterials.
With a skilled team of scientists in its 100,000 square foot facility who,
coupled in collaborative ventures with industry partners and leading
academic centers, have developed a unique portfolio of intellectual
property and novel products. These researchers are complemented by a
seasoned management team with substantial experience in commercializing
innovative, disruptive technologies.
Altairnano focuses on nanotechnology applications to enable new high-growth
markets. In alternative energy Altairnano is pioneering new battery
materials and systems. The company is applying nanotechnology to the
development of drug candidates for humans and companion animals, coatings
materials for implants, and materials for dental applications. Its high
performance nanomaterials have applications in paints, coatings, and the
treatment of water and air. The Altairnano Hydrochloride Pigment process,
the first new patented pigment process in 50 years, is an environmentally
friendly method for manufacturing white pigment used in paints, paper and
plastic. For additional information visit www.altairnano.com.
Forward-Looking Statements
This release may contain forward-looking statements as well as historical
information. Forward-looking statements, which are included in accordance
with the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, may involve risks, uncertainties and other factors that
may cause the company's actual results and performance in future periods to
be materially different from any future results or performance suggested by
the forward-looking statements in this release. These risks and
uncertainties include, without limitation, the risks that Altairnano's cash
and non-cash expenses will significantly rise during the following year as
a result of unforeseen events; that the licensing and manufacturing
agreements that Altairnano expects to sign in the next few months and that
form a basis for its expectation of future recurring and sustainable
revenue will not be signed or that sales by Altairnano or its licensees
under those agreements will not occur or be delayed for unforeseen reasons;
that Altairnano's revenue will not continue to grow at projected rates, at
rates consistent with past growth or at all due to cancellation or
expiration of existing revenue-generating contracts and a failure to
attract revenue from new sources; and that, even if Altairnano's revenues
continue to grow, such growth will not exceed the growth of expenses and,
as a result, Altairnano will never generate a net profit. In general,
Altairnano is, and expects to be in the immediate future, dependent upon
funds generated from sales of securities, grants, testing agreements, and
licensing agreements to fund its testing, development and ongoing
operations. In addition, other risks are identified in the company's most
recent Annual Report on Form 10-K, as filed with the SEC. Such
forward-looking statements speak only as of the date of this release. The
company expressly disclaims any obligation to update or revise any
forward-looking statements found herein to reflect any changes in company
expectations or results or any change in events.
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
(Unaudited)
December 31, December 31,
2005 2004
------------- -------------
ASSETS
Current Assets
Cash and cash equivalents $ 2,264,418 $ 7,357,843
Investment in available for
sale securities 20,789,656 -
Accounts receivable 602,168 499,599
Prepaid expenses and
other current assets 254,067 182,595
------------- -------------
Total current assets 23,910,309 8,040,037
Investment in Available for
Sale Securities 423,000 -
Property, Plant and Equipment, net 8,169,445 6,513,907
Patents, net 890,062 974,877
Other Assets 71,200 18,200
------------- -------------
Total Assets $ 33,464,016 $ 15,547,021
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $ 808,905 $ 81,030
Accrued salaries and benefits 709,349 154,558
Accrued liabilities 309,289 141,185
Note payable, current portion 600,000 -
------------- -------------
Total current liabilities 2,427,543 376,773
------------- -------------
Note Payable, Long-Term Portion 2,400,000 2,880,311
------------- -------------
Total Liabilities 4,827,543 3,257,084
------------- -------------
Stockholders' Equity
Common stock, no par value,
unlimited shares authorized;
59,316,519 and 49,775,694 shares
issued and outstanding at December
31, 2005 and December 31, 2004 92,126,714 65,505,630
Accumulated deficit (63,152,905) (53,215,693)
Deferred compensation expense (165,336) -
Accumulated other comprehensive loss (172,000) -
------------- -------------
Total Stockholders' Equity 28,636,473 12,289,937
------------- -------------
Total Liabilities and
Stockholders' Equity $ 33,464,016 $ 15,547,021
============= =============
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States Dollars)
(Unaudited)
Year Ended December 31,
2005 2004 2003
------------ ------------ ------------
Revenues
License fees $ 695,000 $ - $ -
Product sales 149,373 7,503 8,602
Commercial collaborations 825,723 552,499 27,696
Contracts and grants 1,136,439 591,890 36,553
------------ ------------ ------------
Total revenues 2,806,535 1,151,892 72,851
------------ ------------ ------------
Operating Expenses
Cost of product sales 69,489 1,361 1,731
Research and development 5,073,478 2,189,150 1,961,744
Sales and marketing 1,539,765 335,221 214,378
General and administrative 5,571,454 4,626,562 2,801,451
Depreciation and
amortization 1,034,202 904,553 878,757
------------ ------------ ------------
Total operating expenses 13,288,388 8,056,847 5,858,061
------------ ------------ ------------
Loss from Operations (10,481,853) (6,904,955) (5,785,210)
------------ ------------ ------------
Other Income (Expense)
Interest expense (207,189) (194,180) (454,415)
Interest income 750,306 96,229 1,879
Gain (loss) on
foreign exchange 1,524 626 (193)
------------ ------------ ------------
Total other
income (expense), net 544,641 (97,325) (452,729)
------------ ------------ ------------
Net Loss (9,937,212) (7,002,280) (6,237,939)
Preferential Warrant Dividend - - (592,486)
------------ ------------ ------------
Net Loss Applicable
to Shareholders $ (9,937,212) $ (7,002,280) $ (6,830,425)
============ ============ ============
Loss per common share
- Basic and diluted $ (0.17) $ (0.14) $ (0.19)
============ ============ ============
Weighted average shares
- Basic and diluted 57,766,557 48,677,283 36,222,026
============ ============ ============
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