|
Kronos Announces Second Quarter Business Update And
Financial Results
BELMONT, Mass., Feb 15, 2008 -- Kronos Advanced Technologies, Inc. (OTC
BB: KNOS) -- President and Chief Executive Officer, Daniel R. Dwight,
reported a business update and financial results for the six months ended
December 31, 2007 for Kronos Advanced Technologies, Inc..
Business Update
Consumer Standalone Air Purification Products. During the
first half of fiscal 2008, Kronos executed a Letter of Intent for the
development, manufacture and sale of air purification devices, based upon
Kronos' proprietary air movement and purification technology, with a leading
national retailer. Under the terms of the Letter of Intent, the retailer has
paid Kronos a portion of the development cost toward the new products and
will contribute resources to assist in the product development process. The
intent of the parties is for Kronos to lead and manage all development,
production and manufacturing activities for the Kronos air purifier and for
the retailer to actively market the Kronos air purifier through their
distribution channels. In December 2007, Kronos completed the design and
developed an Alpha Prototype for the customer. In January 2008, the parties
initiated negotiations of a definitive Product Development and Purchase
Agreement. During the six months ended December 31, 2007, Kronos received
$250,000 in product development fees.
Consumer Kitchen Range Hood Products. In addition, during
the first half of fiscal 2008, Kronos continued its development of a silent
kitchen range hood application based on its proprietary technology. In
October 2007, under the terms of a development agreement, Kronos shipped
additional range hood prototypes to a global consumer products customer for
testing and evaluation. During the six months ended December 31, 2007,
Kronos earned $34,000 in product development fees.
Medical Air Purification Products. During the first six
months of fiscal 2008, Kronos earned $35,000 in revenue from licensing fees
from its license agreement with EOL, Kronos' medical partner for
manufacturing and distributing Kronos air purifiers in Russia and other
Commonwealth of Independent States.
Intellectual Property. During the first half of fiscal
2008, Kronos obtained three additional foreign patents. This brings Kronos'
total patent portfolio to thirteen U.S. patents and six international
patents with additional patents pending.
Financial Results
Kronos recorded a net loss for each of the six months ended December 31,
2007 and December 31, 2006 of $3,471,000 and $1,714,000, respectively. The
increase in the net loss for the six months ended December 31, 2007 compared
with the comparable period of 2006 was principally the result of $1,173,000
in accretion of note discount, a $585,000 increase in operating costs to
$2,155,000, and a $145,000 increase in interest expense to $319,000,
partially offset by a $146,000 increase in gross profit to $175,000.
Revenues for the six months ended December 31, 2007 were $319,000 compared
to $121,000 for the comparable period of 2006. Revenues for the quarter
ended December 31, 2007 consisted of revenues from our agreements with a
national retailer, global consumer products company and our Russian medical
products partner. Selling, General and Administrative expenses for the
quarter ended December 31, 2007 increased $585,000 from the corresponding
period of 2006 to $2,155,000. The increase was principally the result of a
$405,000 increase in compensation and benefits, primarily as a result of an
increase in the expense of amortizing stock options that vested during the
2007 period, and a $175,000 increase in professional services as a result of
a new consulting arrangement and legal expenses. Interest expenses for the
quarter ended December 31, 2007 was $319,000 compared to $174,000 for the
corresponding period of the prior year. The increase in interest expense was
principally the interest on promissory notes payable to AirWorks, Hilltop,
Sands and Critical Capital.
Change in Control
Effective December 31, 2007, the two largest investors in Kronos, AirWorks
Funding LLLP and Hilltop Holding Company, LP, converted a portion, $731,440,
of their secured convertible promissory notes due June 19, 2010 to
243,813,400 shares of Kronos common stock, which resulted in a change in
control of Kronos.
Additional details of the Company's results can be found in its quarterly
report on Form 10-QSB filed with the SEC on February 14, 2008 at www.sec.gov
or at www.kronosati.com.
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos
Advanced Technologies has developed a new, proprietary air movement and
purification system that utilizes state-of-the-art high voltage electronics
and electrodes to silently move and clean air without any moving parts.
Kronos is actively commercializing its technology for standalone and
embedded products across multiple residential, commercial, and industrial
markets. Kronos' technology is versatile, energy- and cost-efficient and
exhibits multiple design attributes, creating a broad range of applications.
Kronos' business strategy includes a combination of building internal
capabilities, establishing strategic alliances and structuring licensing
arrangements. Kronos Advanced Technologies is located in Belmont, MA. More
information about Kronos Advanced Technologies is available at
www.kronosati.com.
Safe Harbor Provision
This news release contains forward-looking statements made in reliance
upon the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
Kronos' views on future financial performance, market growth, capital
requirements, new product introductions and acquisitions, and are generally
identified by phrases such as "thinks,'' "anticipates,'' "believes,''
"estimates,'' "expects,'' "intends,'' "plans,'' and similar words.
Forward-looking statements are not guarantees of future performance and are
inherently subject to uncertainties and other factors which could cause
actual results to differ materially from the forward-looking statement.
These statements are based upon, among other things, assumptions made by,
and information currently available to, managements, including management's
own knowledge and assessment of Kronos' industry, R&D initiatives,
competition and capital requirements. Other factors and uncertainties that
could affect Kronos' forward-looking statements include, among other things,
the following: identification of feasible new product initiatives,
management of R&D efforts and the resulting successful development of new
products and product platforms; acceptance by customers of Kronos' products;
substantial expansion of international sales; reliance on key suppliers; the
potential need for changes in long-term strategy in response to future
developments; competitive factors, including pricing pressures and the
introduction by others of new products with similar or better functionality
than our products, and ability to obtain additional financing necessary to
continue operations . These and other risks are more fully described in
Kronos' filings with the Securities and Exchange Commission, including
Kronos' Annual Report on Form 10-KSB for the year ended June 30, 2007.
Kronos undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Back to top
Back to news listings
|
