ThermoCeramix Reports Operational and Financial Third Quarter 2015 Results

MONTREAL, Nov. 20, 2015 /CNW/ - ThermoCeramix Corporation ("ThermoCeramix", "TCX" or the "Company") (TSX Venture Exchange: TCX.V), a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions, today reported its operational and financial results for the three months ended September 30, 2015.

"We continue to execute on our plan of making further inroads with targeted manufacturers towards securing new development contracts," said Louis Desmarais, CEO of ThermoCeramix. "We will maintain our focus on new and existing licensing opportunities."

Outlook

ThermoCeramix believes that market validation of its high-performance, energy-efficient, platform heating technology is instrumental in securing licensing agreements for its TCX™ technology.

Having proven and secured a broad patent portfolio, the Company is now advancing a defined number of priority projects that it believes will accelerate validation of its technology, most notably commercialization of its lead application, the Hibachi. The Hibachi is a high-performance electric barbeque that uses the Company's proprietary platform technology.

In parallel with these efforts, ThermoCeramix is continuing to make progress on development projects with select global aerospace, appliance and automotive manufacturers that the Company believes have the potential to translate into meaningful licensing revenue.

Technology Licensing

The adaptability of ThermoCeramix's technology allows it to target applications in the global residential, commercial and industrial spaces.

ThermoCeramix has identified a significant market opportunity in the household appliance industry. This industry, which has been experiencing a compounded annual growth rate of 6.1% over the last few years, is forecast to be worth an estimated $384 billion in 2017. Growth in this market is propelled by the rate of developing economies in the Asia Pacific region, the emergence of smart appliances, and increasing demand for energy-efficient products.

ThermoCeramix is advancing its development projects with Zephyr Ventilation Inc. and Gotec SA. The Company believes that successful completion of these development agreements will allow it to tap into the household appliance industry and translate into meaningful licensing opportunities.

Financial Highlights


Three months
ended Sep. 30,
2015
Unaudited ($)

Three months
ended Sep. 30,
2014
Unaudited ($)

Nine months
ended Sep. 30,
2015
Unaudited ($)

Nine months
ended Sep. 30,
2014
Unaudited ($)

Net research &
development
expenses

194,482

531,972

661,657

803,961

Administrative
expenses

1,026,020

333,525

2,870,554

2,676,151

Other income

(58,442)

(18,725)

(100,618)

(18,725)

Net loss for the
period

1,092,239

677,566

3,428,632

3,379,122

Net loss per share
(basic and diluted)

0.03

0.02

0.10

0.14

 

Research and Development

Net research and development ("R&D") expenses for the three months ended September 30, 2015, decreased by $337,490 from that in the same period in 2014, to $194,482. This decrease was substantially due to a decrease in gross R&D expenses for the quarter compared to the prior year period.

Net R&D expenses for the nine months ended September 30, 2015, decreased by $142,304 from that in the same period in 2014, to $661,657. This decrease was due to a decrease in gross R&D expenses of $334,430, partially offset by a decrease in R&D tax credits and government grants of $192,126.

General and administrative expenses

General and administrative expenses were $1,026,020 for the quarter ended September 30, 2015, which represented an increase of $692,495 from $333,525 in the quarter ended September 30, 2014. This increase was primarily attributable to higher salaries, wages and benefits and sales and marketing expenses associated with the ramp-up of operations and sales of the Hibachi, respectively.

General and administrative expenses were $2,870,554 for the nine months ended September 30, 2015, which represented an increase of $194,403 from $2,676,151 in the same period in 2014. This increase was primarily attributable to higher expenses in 2015 associated with higher salaries, wages and benefits and sales and marketing expenses associated with the ramp-up of operations and sales of the Hibachi, respectively, partially offset by non-recurring listing costs of $961,269 incurred in 2014 associated with the Company's Qualifying Transaction.

Other Income

Other income consists of development contract revenues and net product sales (net of discounts, allowances and cost of goods sold). For the quarter ended September 30, 2015, other income was $58,442 compared to $18,725 in the prior year period, and was primarily due to Hibachi sales. For the nine months ended September 30, 2015, other income was $100,618 compared to $18,725 in the prior year period.

Net Loss

Net loss for the quarter ended September 30, 2015 was $1,092,239, up from a loss of $677,566 recorded in the same period in the prior year. The primary contributors to this change were higher general and administrative expenses in 2015, partially offset by lower net R&D expenses, higher other income and foreign exchange gains.

Net loss for the nine months ended September 30, 2015 was $3,428,632, slightly up from a loss of $3,379,122 recorded in the prior year period.

About ThermoCeramix

ThermoCeramix Corporation (TSX.V: TCX) is a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions. The Company's patented and proprietary TCX™ heating technology uses sprayed-on heaters applied 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 the Hibachi, a unique indoor-outdoor grill, and 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 "could", "estimated", "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 "Management's Discussion and Analysis for the six months ended June 30, 2015 and 2014" dated August 20, 2015 filed under the Company's SEDAR profile at www.sedar.com.

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.

SOURCE ThermoCeramix Corporation

For further information: ThermoCeramix Corporation, Louis Desmarais, Chief Executive Officer, (450) 365-1665 ext. 4, ldesmarais@thermoceramix.com; NATIONAL | Equicom, Keith Richards, Investor Relations, (416) 848-1599, krichards@national.ca

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