ThermoCeramix Corporation
TSX VENTURE : TCX

ThermoCeramix Corporation

August 20, 2014 18:32 ET

ThermoCeramix Corporation Announces Second Quarter 2014 Financial Results & Provides Business Update

MONTREAL, QUEBEC--(Marketwired - Aug. 20, 2014) - ThermoCeramix Corporation ("ThermoCeramix" or the "Company") (TSX VENTURE:TCX) (formerly Springrock Capital Inc.), an engineering company engaged in the research and development of heating solutions for industrial, commercial and residential applications, today released its unaudited interim condensed consolidated financial statements and accompanying Management's Discussion and Analysis of its financial position and results of operations ("MD&A") for the three and six months ended June 30, 2014.

Results of Operations:

Three-months
ended
June 30,
2014
Unaudited
($)
Three-months
ended
June 30,
2013
Unaudited
($)
Six-months
ended
June 30,
2014
Unaudited
($)
Six-months
ended
June 30,
2013
Unaudited
($)
Net research and development expenses 50,225 144,449 271,988 250,090
Administrative expenses 583,239 400,190 1,381,357 617,142
Listing costs - - 961,269 -
Other income - (43,919) - (91,498)
Net interest expense 40,617 27,797 63,741 54,233
Net loss for the period 686,144 580,649 2,701,555 877,812
Net loss per share (basic and diluted) 0.02 0.71 0.15 1.26

"We continue to make progress with our focused strategies to commercialize and license our patented heating technologies," commented Louis Desmarais, Chief Executive Officer. "With the funds generated by our successful equity financings completed in the first quarter, and our progress to date, we are confident we have sufficient financial resources to support our business plans and capitalize on our ability to offer a wide range of unique solutions to a wide range of commercial, industrial and consumer customers."

Research and development ("R&D") expenses increased to $293,544 for the three months ended June 30, 2014, and to $540,307 for the six months ended June 30, 2014, compared to the same periods in 2013. This increase was due to an acceleration of activities by the Company in 2014. This increase was partially offset by R&D tax credits and government grants of $268,319 in the second quarter and in the first six months of 2014 (nil in 2013).

General and administrative expense increased in the second quarter and first six months of 2014 compared to the prior year periods due primarily to share-based compensation expenses incurred in the current year in connection with the Company's qualifying transaction combined with an acceleration of activities in 2014.

Other income is comprised of R&D service contracts and instrument sales. There has been no other income to date in 2014 compared to the prior year, in which limited sales of a specialized heater tube for testing water purity were made to a Fortune 500 company for use in advanced testing systems for water treatment plants.

Net interest expense is higher in 2014 due to higher interest expense accrued on long-term payables combined with higher notional interest expense on long-term debt, partially offset by higher interest income due to higher average cash balances.

The Company's net loss for the three and six months ended June 30, 2014 is primarily due to higher general and administrative expenses and no other income in 2014, partially offset by lower net R&D expenses and lower foreign exchange losses in the current year.

As at June 30, 2014, TCX held cash of $6,958,559, an increase of $5,399,963 from December 31, 2013. On February 13, 2014, ThermoCeramix, Inc., a wholly-owned subsidiary of the Company, completed the second round of a private placement for gross proceeds of $325,000 and subsequently on May 5, 2014 the Company completed a bought deal private placement offering for gross proceeds of $7,500,000. These financings will facilitate growth and provide sufficient liquidity to support the ongoing business for the foreseeable future.

The Company also announced today that, due to a clerical error, certain information relating to the number of options outstanding was omitted from the Company's Filing Statement dated March 26, 2014. Specifically, the amount of options outstanding to purchase common shares of ThermoCeramix, Inc. immediately prior to the closing of the Company's qualifying transaction should have read 1,539,167 instead of 1,499,167. As a result, the total amount of options issued by the Company in connection with the completion of the Qualifying Transaction was 2,677,945, which represents an increase of 40,000 from that number disclosed in the Filing Statement. For more information on the Company's qualifying transaction please refer to the Company's Filing Statement dated March 26, 2014 available under the Company's SEDAR profile at www.sedar.com.

Business Update

The Company today also provided an update on its recent business activities. In the second quarter of 2014 the Company made progress in commercializing its patented heating technology including through potential licensing agreements related to new applications for its technology:

  • The Company is commercializing its patented technology through the development, production and sale of high-efficiency electric grills used in food preparation. The Downtown Electric Grill, powered by TCX™-technology, is currently being sold through Williams Sonoma. In addition, over the past six months, the Company has successfully developed its third generation electric grill, the Hibachi Electric Grill, to be retailed at a consumer-price level that will be considered attractive to the mass market. This new product has all of the performance features of the previous two generations, including the ability to heat to 700°F, unlike any other electric grill available today. Discussions with a leading manufacturer are underway to produce, market, and sell the Hibachi Electric Grill and other products through leading retailers around the world;
  • The Company is in discussions with a number of international consumer appliance companies to develop and license various high efficiency appliances. Similar to its grill and barbecue applications, the Company's patented heating technologies can be adapted to household appliances that are more efficient and require less energy than conventional systems;
  • The Company is in discussions with certain large aerospace and automotive parts producers to develop and license applications of its patented heating technologies for the production of injection moulded plastic parts. The Company believes that by using TCX™-technology, such parts can be produced in larger sizes with thinner walls and more efficiently and quickly than under existing methods; and
  • The Company is in the process of applying for a number of additional new patents related to its proprietary technologies and applications to further extend market reach.

"Looking ahead, while our primary focus is currently on these opportunities, we are in active discussions with a number of other companies in the consumer, commercial and industrial sectors to capitalize on our proven heating technologies and develop and license innovative new products and systems," Mr. Desmarais added.

About ThermoCeramix

ThermoCeramix Corporation is an engineering technology company engaged in the development of environmentally-friendly high-efficiency heating solutions. The Company's patented and proprietary TCX™ heating technology uses thermal spray film heaters applied as a coating of electro-resistive material 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 a unique electric barbecue, 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 "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 "Filing Statement" dated March 26, 2014 filed under the Company's SEDAR profile at www.sedar.com, including the specific risks contained therein under the headings "Risk Factors - Protection of Intellectual Property" and "Risk Factors - Expected Development of Markets".

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.

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