SOURCE: PEN Inc.

Products enabled by nanotechnology

November 17, 2014 08:30 ET

PEN Inc. Announces Third Quarter Financial Results

Investor Conference Call and Business Update Set for November 25, 10 am ET

DEERFIELD BEACH, FL--(Marketwired - November 17, 2014) - PEN Inc. (OTCQB: PENC) (PEN) reported Friday the financial results for the quarter ended September 30, 2014. 

Scott Rickert, PEN's Chairman and CEO, said, "The historical business of PEN, primarily the sales of our eye care glass cleaning and defogging business, remains strong. We have restructured the contract research business to make it a break-even business going forward and thus PEN overall is profitable. This result after only one month of combined operations for the quarter reflects the hard work and dedication of the entire PEN team. Our focus is on continuing the growth of our historical businesses and the coming roll-out of new products. Our goal remains to create strong growth via new nanotechnology-enhanced products."

For the three quarters ended September 30, PEN profits were $41,073 versus a net loss for the same period of 2013 of $168,950. Excluding one-time costs of approximately $235,000 associated with the Combination of Applied Nanotech and Nanofilm, PEN had pro forma net income for the nine month period of approximately $329,000.

For the quarter ended September 30, 2014, the Company reported a net loss of $448,887 versus a profit of $26,321 for the same period of 2013. The results reflect the merger acquisition costs, as well as the losses from the research and development segment. Since the combination, PEN has made efforts to cut costs and plans to achieve positive or break-even cash flow from operations in that segment by the end of 2014. For the nine month period, sales increased by $890,101 or 13.3% as compared to the same period in 2013.

Substantially all of PEN's results of operations for the third quarter and year to date relate to the Nanofilm product segment since Nanofilm was the acquiror for accounting purposes, and the results of operations related to the research and development segment based in the Applied Nanotech Inc. subsidiary acquired in the combination are included in the results of operations only for the period from August 27, 2014, (the effective date of the combination) to September 30, 2014.

The entire Form 10Q and related financial statements are available at www.sec.gov, or the company's website, www.pen-technology.com.

Investor call and business update: Tuesday, November 25, 2014. At 10 a.m.

PEN will host an investor call Tuesday, November 25 at 10 a.m. ET to discuss third quarter results, provide a business update and take questions from investors. Participants can register for the webcast at this address: 
http://w.on24.com/r.htm?e=896132&s=1&k=539B926244C74972BC1708A6B77EB90B

The live event can also be followed on Twitter with the hashtag #PENRickert. Questions for the event may be submitted in advance to Lynn Lilly, Director of Communication, at llilly@pen-technology.com, or by tweeting them via direct Twitter message to @PENRickert or with the hashtag #PENRickert.

  
PEN, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
         
         
  September 30,   December 31,  
  2014   2013  
  (Unaudited)      
ASSETS          
CURRENT ASSETS:          
 Cash $254,429   $100,367  
 Accounts receivable, net  1,089,697    1,524,303  
 Accounts receivable - related party  9,112    17,224  
 Inventory  1,255,890    1,484,456  
 Prepaid expenses and other current assets  426,588    107,718  
            
 Total Current Assets  3,035,716    3,234,068  
           
OTHER ASSETS:          
 Property, plant and equipment, net  803,276    672,704  
 Intangible assets, net  2,387,198    -  
 Other assets  37,197    73,504  
            
 Total Other Assets  3,227,671    746,208  
           
TOTAL ASSETS $6,263,387   $3,980,276  
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
 Bank revolving line of credit $-   $199,919  
 Current portion of bank term loan  -    60,000  
 Convertible notes payable, net  66,666    -  
 Convertible notes payable - related parties, net  80,001    -  
 Accounts payable  1,424,102    721,860  
 Accrued expenses  1,077,572    344,271  
 Income taxes payable  50,000    -  
 Deferred revenue  120,871    -  
            
 Total Current Liabilities  2,819,212    1,326,050  
           
LONG-TERM LIABILITIES:          
 Bank term loan, net of current portion  -    515,000  
 Other long-term liabilities  -    127,914  
           
  Total Long-term Liabilities  -    642,914  
           
  Total Liabilities  2,819,212    1,968,964  
           
STOCKHOLDERS' EQUITY:          
 Preferred stock, $.0001 par value, 20,000,000 shares authorized; No shares issued and outstanding  -    -  
 Class A common stock: $.0001 par value, 1,300,000,000 shares authorized; 232,316,856 and 27,670,187 issued and outstanding at September 30, 2014 and December 31, 2013, respectively  23,232    2,767  
 Class B common stock: $.0001 par value, 400,000,000 shares authorized; 250,731,549 and 250,698,105 issued and outstanding at September 30, 2014 and December 31, 2013, respectively  25,073    25,070  
 Class Z common stock: $.0001 par value, 100,000,000 shares authorized; 47,273,470 and 47,273,470 issued and outstanding at September 30, 2014 and December 31, 2013, respectively  4,727    4,727  
 Additional paid-in capital  4,454,735    3,083,413  
 Accumulated deficit  (1,063,592 )  (1,104,665 )
           
Total Stockholders' Equity  3,444,175    2,011,312  
           
Total Liabilities and Stockholders' Equity $6,263,387   $3,980,276  
           
           
See 10Q for accompanying notes to unaudited consolidated financial statements.  
  
  
  
PEN, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
                 
                 
  For the Three Months Ended   For the Nine Months Ended  
  September 30,   September 30,  
  2014   2013   2014   2013  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                     
SALES:                    
  Third parties $1,913,911   $2,391,073   $7,446,232   $6,529,367  
  Related party  40,810    44,353    147,862    174,626  
                      
  Total Sales  1,954,721    2,435,426    7,594,094    6,703,993  
                     
COST OF SALES  1,340,759    1,524,087    4,172,427    4,148,487  
                     
GROSS PROFIT  613,962    911,339    3,421,667    2,555,506  
                     
OPERATING EXPENSES:                    
  Selling and marketing expenses  42,033    57,878    186,062    201,108  
  Salaries, wages and contract labor  574,213    313,733    1,448,933    961,106  
  Research and development  131,371    267,135    426,740    727,021  
  Professional fees  249,503    81,998    568,225    272,511  
  General and administrative expenses  265,563    175,094    622,085    557,064  
                      
  Total Operating Expenses  1,262,683    895,838    3,252,045    2,718,810  
                     
INCOME (LOSS) FROM OPERATIONS  (648,721 )  15,501    169,622    (163,304 )
                     
OTHER INCOME (EXPENSES):                    
 Interest income  -    6    -    35  
 Interest expenses  (1,806 )  (15,521 )  (19,230 )  (72,051 )
 Other income, net  12,124    30,813    -    37,678  
                      
  Total Other Income/(Expense)  10,318    15,298    (19,230 )  (34,338 )
                      
Income (loss) before income taxes  (638,403 )  30,799    150,392    (197,642 )
                     
Income tax benefit (expense)  159,726    -    (55,901 )  -  
                     
NET INCOME (LOSS)  (478,677 )  30,799    94,491    (197,642 )
                     
Net (income) loss attributable to former non-controlling interest  29,790    (4,478 )  (53,418 )  28,692  
                     
NET INCOME (LOSS) ATTRIBUTABLE TO PEN, INC. $(448,887 ) $26,321   $41,073   $(168,950 )
                     
NET INCOME (LOSS) PER COMMON SHARE:                    
  Basic $(0.00 ) $0.00   $0.00   $(0.00 )
  Diluted $(0.00 ) $0.00   $0.00   $(0.00 )
                     
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                    
  Basic  401,181,389    325,641,762    351,098,340    325,641,762  
  Diluted  401,181,389    325,641,762    351,098,340    325,641,762  
                     
                     
See 10Q for accompanying notes to unaudited consolidated financial statements.  
  

About PEN Inc. (OTCQB: PENC)
PEN Inc. (PENC) is a global leader in developing, commercializing and marketing enhanced-performance products enabled by nanotechnology. The company focuses on innovative and advanced product solutions in safety, health and sustainability. For more information about PEN Inc., visit www.pen-technology.com

Safe Harbor Statement 
This press release contains forward-looking statements that involve risks and uncertainties concerning our business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in our annual report on Form 10-K for the fiscal year ended December 31, 2013, and in reports subsequently filed by us with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from our website listed above. We hereby disclaim any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

Contact Information

  • Contact Information:
    Lynn Lilly
    Director of Communication
    PEN Inc.
    Email contact(844)2PEN INC x705