Nanalysis Scientific Corp.

Good afternoon. My name is Pam and I will be your conference operator today. At this time, I would like to welcome everyone to the Nanalysis fourth quarter and full year 2021 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Thank you. I would now like to turn the conference over to Mr. Matthew Sillinger, Investor Relations. Please go ahead.

Thank you, Operator, and welcome everyone to the Analysis Scientific's fourth quarter and full year 2021 conference call. Before we begin, I would like to remind everyone that our remarks and responses to your questions today will contain forward-looking statements that are based on the current expectations of management. These assumptions involve inherent risks and uncertainties that could cause actual results that differ materially from our responses. Certain material factors and assumptions were considered and applied in making of the forward-looking statements. These risk factors are included in our filings for the year ended December 31, 2021. Forward-looking statements on this call may include but are not limited to statements and comments with respect to future growth of the company's business, the ability to graduate to a senior exchange, the company's acquisition strategy, the ability to develop future products, and the possible associated results. The company's actual performance and financial results in the future could differ materially from any estimates or projections of future performance implied by the forward-looking statements. The forward-looking statements made on this call speak only as of today, and Analysis Scientific assumes no obligation to update any such forward-looking information as a result of new information, future events, or otherwise, except as expressly required by applicable law. For additional information, I do encourage everyone to review our public filings and press releases, which are posted on the CDAR Firing System at www.cdar.com. So on the call with me today are Analysis Founder and CEO, Mr. Sean Krakiewski, and Analysis CFO, Mr. Luc Caplet. So with that, I would like to turn the call over to Analysis CFO, Mr. Luc Caplet. Luc?

Thank you, Matthew, and thanks, everyone, for joining the call. I'm happy to report for the three months ended December 31st, 2021, an analysis reported consolidated revenue of $5.1 million, an 89% increase from the $2.7 million recognized for the comparable period December 31st, 2020. This increase in revenue is due to RS2D completion of milestones, specifically worked on the OEM contract signed with Quad Systems, coupled with increased shipments of the analysis new flagship product, the 100 megahertz. Gross margin was 61% for the three months ended December 31st, 2021, as compared to 65% for the three months ended December 31st, 2020. We are seeing inflationary pressure hitting our inputs. We are very cognizant and watching our inputs very closely. Management will continue to adjust pricing of our products where possible to circumvent increasing costs. Income from other items for the three months ended December 31st, 2021 was $413,000, an improvement of $1.1 million compared to the same period last year. Net loss for the three months ended December 31, 2021, was $658,000, representing an improvement of $567,000 from the comparable period in 2020. Moving on to results for the 12 months ended December 31, 2021. For the 12 months ended December 31, 2021, the company reported consolidated revenue of $16 million, an increase of 8.2 million or 104% for the competitive period in 2020. The increase in revenue is due to the completion of those aforementioned RS2D contract milestones and the shipment of an analysis flagship product, new flagship product, 100 megahertz. As of December 31st, 2021, the analysis has 3.5 million of backlog associated with our 100 megahertz, of which 679,000 has been prepaid by customers and is recorded in un-in revenue on the balance sheet. During the year, the company doubled its manufacturing facility. The additional manufacturing capacity will allow for increased production and quicker fulfillment of 100 megahertz backlog in 2022. Gross profit for the 12 months ended December 31st, 2021 was 10.2 million, representing a gross margin of 63%, as compared to 64%, my apologies, as compared to gross profit of 5.2 million and a margin of 66% for the 12 months ended December 31st, 2020. The companies that lost for the 12 months ended December 31st, 2021 was 1.8 million as compared to a loss of 3.7 million for the comparable period of 2020. The company had cash on hand of 10.4 million and undrawn credit facility of 2 million and working capital of 12.1 million as of December 31st, 2021. On February 11th, 2022, the company closed the best efforts marketed public offering common shares of the company. including the full exercise of the over-allotment option and non-brokered private placement of common shares for combined gross proceeds of $15.2 million. Pursuant to the terms of the public offering and non-brokered private placement, the company issued approximately 13.8 million common shares. Additionally, the company announced a $5 million funding contribution commitment from the Canadian government. The funding is provided through Prairie's Economic Development Canada's Business Scale-Up and Productivity Program. which provides fast-growing tech firms with support to scale up and enter new markets. The analysis will draw on these funds over the next three years with interest-free payments commencing on September 1st, 2025. This funding enables us to offset some of the capital that was already used for our manufacturing expansion and provides future capital to continue to expand operations. The company monitors its financing requirements through regular forecasting of its cash position Financing decisions are based on the timing and extent of expected operating and capital cash outlays. The company will always adjust its capital structure to attempt to maximize shareholder returns. I would like to thank all of our investors for their continued support over the last year. We are very proud of what the team has accomplished, and we are looking forward to a great 2022. With that, now I'd like to turn the call over to our founder and CEO, Sean Krakowski. Sean?