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Kronos Releases Third Quarter Financial Results
Belmont, MA - May 17, 2004: Kronos Advanced Technologies, Inc. (OTC BB: KNOS) announced its financial results for the fiscal 2004 third quarter ended March 31, 2004.
Kronos third quarter revenues from its wholly owned subsidiary, Kronos Air Technologies, Inc. were $100,000 compared with $140,000 in third quarter fiscal 2003. Revenues for the nine months of fiscal 2004 were $342,000 compared with $458,000 in the nine months of fiscal 2003. Current fiscal year revenues were earned primarily from the Company’s HoMedics, U. S. Navy and U. S. Army contracts.
The Company's third quarter net loss from continuing operations decreased by 11% to $614,000, compared with last year’s net loss of $690,000. The decrease in the net loss was primarily the result of a decrease in decrease in selling, general and administrative expenses ($165,000), offset by an increase in interest expense ($79,000). The $165,000 or 24% decrease in selling, general and administrative expenses was primarily the result of a reduction in legal and auditing ($216,000) and business consulting ($60,000) expenses, offset by an increase in compensation and benefits ($70,000). The increase in compensation and benefits resulted from the Company converting our Chief Operating Officer from a consulting agreement to a full time employment contract and the expansion of our Research and Product Development team.
The Company's net loss for the nine months ended March 31, 2004 from continuing operations decreased by 1% to $1,735,000 compared with last year’s net loss of $1,754,000. The decrease in net loss was primarily the result of a decrease in selling, general and administrative expenses ($530,000), offset by an increase in interest expense ($307,000) and a decrease in gross profit ($117,000) and other income ($86,000). The $530,000 or 27% decrease in selling, general and administrative expenses was primarily the result of a reduction in legal and auditing ($441,000) and business consulting ($406,000) expenses, offset by an increase in compensation and benefits ($217,000).
Interest expenses for the three and nine months ended March 31, 2004 increased by $79,000 and $307,000 compared with last year. The increases were primarily the result of the increase in accrued interest expenses from Company’s debt financing obligation to HoMedics and from the Company’s obligation to Kronos’ officers and employees. During the third quarter, the Kronos leadership team agreed to convert the Company’s obligations to officers and employees ($1,140,000) from accounts payable to long term promissory notes. As a result, the Company reduced its total current liabilities by 43% to $1,083,000 at March 31, 2004 from $1,884,000 at June 30, 2003 and reduced its working capital deficit by 38% to $722,000 at March 31, 2004 from $1,160,000 at June 30, 2003.
Details of the Company's results can be found in its quarterly report filed May 14, 2004 on SEC Form 10-QSB, at www.sec.gov and at www.kronosati.com.
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos Advanced Technologies focuses on the development and commercialization of a new, proprietary air movement and purification technology. Kronos's technology utilizes state-of-the-art high voltage electronics and electrodes to create an efficient but simple electrical device. As a result of this combined technology, the Kronos™ air movement and purification device can move and clean air without any moving parts. The device is versatile, energy and cost-efficient and exhibits multiple design attributes, creating a broad range of applications. More information about Kronos Advanced Technologies is available at www.kronosati.com.
Contact: Kronos Advanced Technologies: Daniel R. Dwight at 617-993-9965 or email: investors@kronosati.com.
With the exception of historical information contained in this press release, this press release includes forward-looking statements and comments. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond the Company's control. Forward-looking statements, by their nature, involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance. Other risks are summarized under the caption "Factors Affecting Kronos' Business and Prospect " in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2003 as filed with the Securities and Exchange Commission.
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