Mon, Mar 31, 5:59 PM (26 days ago)
**Summary of Solesence, Inc. (NANX) 10-K Annual Report** **Financial Performance (2024 vs. 2023):** - **Revenue:** $52,347,000 (2024) vs. $37,297,000 (2023) - **Net Income:** $4,235,000 (2024) vs. $(4,390,000) (2023) - **Earnings per Share (EPS):** $0.07 (2024) vs. $(0.09) (2023) - **Operating Expenses:** Increased due to higher materials and labor costs, supply chain activities, and maintenance. - **Research and Development:** $3,837,000 (consistent year-over-year) - **Selling, General, and Administrative Expense:** $7,219,000 (2024) vs. $7,534,000 (2023) - **Interest Expense:** $670,000 (2024) vs. $838,000 (2023) **Strategic Overview:** - **Rebranding:** Nanophase Technologies Corporation rebranded to Solesence, Inc. on March 7, 2025. - **Product Focus:** Shift towards consumer products, particularly in skin health and beauty markets. - **Technology:** Leveraging proprietary technologies like Active Stress Defense™ and Kleair™. - **Market Position:** Expansion in prestige beauty markets with a focus on mineral-based sunscreens and skin health products. **Future Outlook:** - **Growth Strategy:** Emphasis on consumer products, with plans to expand facilities and equipment. - **Market Expansion:** Continued focus on North American market with potential for international growth. - **Innovation:** Ongoing R&D efforts to develop new product formulations and technologies. **Risk Factors:** - **Customer Concentration:** Dependence on a few key customers, including BASF. - **Supply Chain:** Risks related to raw material availability and supply chain disruptions. - **Regulatory:** Compliance with FDA, REACH, and other regulatory requirements. - **Financial:** Dependence on related-party financing and potential refinancing risks. **Financial Condition:** - **Cash Flow:** Positive cash flow from operations in 2024. - **Debt:** Significant related-party debt with maturity in 2025, with commitments for refinancing. - **Liquidity:** Adequate liquidity to support operations and capital expenditures. **Market Position Changes:** - **Customer Base:** Shift towards more diverse customer base with growth in consumer products. - **Product Mix:** Increased revenue from consumer products, with a decline in personal care ingredients and advanced materials. **Governance and Management:** - **Board Composition:** Includes experienced directors with backgrounds in finance, engineering, and operations. - **Executive Compensation:** Performance-based bonuses and stock options tied to company goals. **Stock Information:** - **Ticker:** NANX (traded on OTCQB) - **Share Price:** $2.09 per share as of March 28, 2025 - **Dividends:** No dividends declared or paid; earnings retained for reinvestment. **Key Financial Metrics (2024):** - **Total Assets:** $50,002,000 - **Total Liabilities:** $34,059,000 - **Stockholders' Equity:** $14,946,000 - **Cash:** $1,409,000 **Conclusion:** Solesence, Inc. shows significant financial improvement in 2024, with a focus on consumer products driving revenue growth. The company faces risks related to customer concentration and supply chain disruptions but has a strategic plan for expansion and innovation. The rebranding and market positioning efforts aim to capitalize on the growing demand for skin health and beauty products.