CDTi Advanced Materials, Inc. Reports Year-end 2022 Financial Results

Rhea-AI Summary

CDTi Advanced Materials, Inc. reports financial results for 2022, showing revenue expansion driven by new demand and successful product introductions. The company's fuel borne catalyst product line gained traction in North America and they are well positioned for growth in 2023. CDTi also deployed their advanced catalyst coating technology in hydrogen production and carbon capture, expecting rapid revenue expansion in the clean energy segment.

Positive

• CDTi's revenue for 2022 increased to $9.7 million, up from $6.4 million in 2021, driven by sales growth in North America. The gross margin remained stable at 32%. The company achieved operating income of $0.2 million, compared to an operating loss of $1.1 million in 2021. CDTi has $1.3 million in cash on hand at the end of 2022.

Negative

• None.

OXNARD, CA / ACCESSWIRE / May 1, 2023 / CDTi Advanced Materials, Inc. (OTC PINK:CDTI) ("CDTi" or the "Company"), a leader in advanced catalyst technology, reported its financial results for the year ended December 31, 2022.

Matthew Beale, the Company's CEO, stated, "Our 2022 results demonstrate CDTi's potential for growth and profitability in its chosen markets. Revenue expansion was driven by the creation of new demand for existing patented technology as well as the successful introduction of new proprietary products. Our fuel borne catalyst ("FBC") product line for offroad markets gained important traction in North America during 2022 and we are well positioned for continued growth in 2023 and beyond in both on-road and off-road markets. Looking to the future, we successfully deployed our advanced catalyst coating technology in two exciting new growth markets: hydrogen production and carbon capture. We believe that the contribution of the clean energy segment to revenue will expand rapidly over the next few years.

"CDTi's positioning as a comprehensive catalyst technology company is creating new, multi-faceted customer partnerships that we believe will drive near and long-term growth. Our ability to provide innovative and enabling solutions to business partners at the forefront of the green energy transition will increasingly define CDTi's mission," concluded Beale.

Operating Highlights

• Developed and registered gasoline octane improver and on road diesel performance enhancer catalyzed fuel additive products with the U.S. Environmental Protection Agency ("EPA");
• Increased FBC production capacity and expanded R&D testing capability at the Company's Oxnard, California headquarters;
• Received follow-on order for new emission systems product line for the power generation market;
• Achieved key milestones in customer sponsored pre-production catalyst engineering and coating development for hydrogen production and carbon capture projects with major oil and gas producer; and
• Began customer sponsored coating technology development activities for a methane oxidation catalyst with a global energy company.

Financial Highlights

• Total revenue for the full year 2022 was $9.7 million, compared to $6.4 million for 2021 with the increase attributable primarily to the growth in sales of FBC products in North America;
• Gross margin was 32%, compared to 31% for 2021;
• Total operating expenses for 2022 were $3.0 million compared to $3.1 million in 2021;
• Operating income was $0.2 million, compared to an operating loss of $1.1 million in 2021; and
• Cash on hand at December 31, 2022 was $1.3 million, compared to $1.5 million at December 31, 2021.

The Company's audited financial statements as of December 31, 2022 and for the fiscal year then ended are available on the Company's website at www.cdti.com.

About CDTi Advanced Materials

CDTi Advanced Materials (OTC:CDTI) develops technology and materials for the emissions catalyst, industrial catalyst and electrocatalyst markets. CDTi believes that it possesses market leading expertise in catalyst design, engineering and manufacturing for combustion and energy storage applications. CDTi develops technology and materials incorporating various base metals that can enhance catalytic performance and reduce the use of costly platinum group metals ("PGMs") in catalyst coatings.

For more information, please visit www.cdti.com.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements, including any statements that are not statements of historical fact. You can identify these forward-looking statements by the use of the words "believes", "expects", "anticipates", "plans", "may", "will", "would", "intends", "estimates", and other similar expressions, whether in the negative or affirmative. Forward-looking statements are based on a series of expectations, assumptions, estimates and projections, which involve substantial uncertainty and risk. In this document, the Company includes forward-looking statements regarding the capabilities of and new markets for its products and technologies and the status of new technologies, which are subject to risks and uncertainties that could cause our actual results and financial position to differ materially, including, among other risks and uncertainties, (i) that the Company may not be able to successfully implement, or implement at all, its strategic priorities; streamline its operations or align its organization and infrastructure with the anticipated business; meet expectations or projections; decrease costs; increase sales; obtain adequate funding; retain or secure customers; increase its customer base; protect its intellectual property; successfully evolve into an advanced materials supplier or, even if successful, increase profitability; successfully market new products; obtain product verifications or approvals; attract or retain key personnel; validate, optimize and scale powder-to-coat capability; or realize benefits from investments; (ii) funding for and enforcement and tightening of emissions controls, standards and regulations; (iii) prices of PGM and rare earth metals; (iv) royalty and other restrictions on sales in certain Asian countries; (v) supply disruptions or failures; (vi) regulatory, marketing and competitive factors; and (vii) environmental harm or damages. Any forward-looking statements represent the Company's estimates only as of the date of such statements and should not be relied upon as representing the Company's estimates as of any subsequent date. The Company specifically disclaims any obligation to update forward-looking statements. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.

Investor Relations Contact Information
+1 805 486 4649
investors@cdti.com

CDTi ADVANCED MATERIALS, INC.

Consolidated Statements of Comprehensive Income (Loss)
(in thousands)

	Years Ended December 31,
	2022			2021
Revenues	$	9,744		$	6,371
Cost of revenues		6,600			4,394
Gross profit		3,144			1,977
Operating expenses:
Research and development		776			791
Selling, general and administrative		2,175			2,264
Total operating expenses		2,951			3,055
Operating income/(loss)		193			(1,078)
Other income/(loss), net		(60)			771
Income/(loss) before income tax		133			(307)
Provision for income taxes		(18)			(82)
Net income/(loss)		115			(389)
Foreign currency translation adjustments		(81)			(60)
Comprehensive income/(loss)	$	34		$	(449)

CDTi ADVANCED MATERIALS, INC.

Consolidated Balance Sheets
(in thousands, except share and per share amounts)

	December 31,
	2022				2021
ASSETS
Current assets:
Cash	$	1,304		$	1,460$
Accounts receivable, net of allowance for doubtful accounts of $70		1,344			1,221
Inventories		1,040			909
Prepaid expenses and other current assets		63			346
Total current assets		3,751			3,936
Property and equipment, net		204			206
Intangible assets, net		261			404
Right-of-use assets, operating lease		757			-
Other assets		104			120
Total assets	$	5,077		$	4,666$
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	474		$	682
Accrued expenses and other current liabilities		850			1,083
Operating lease liability, current		168			-
Liability for income taxes		898			861
Total current liabilities		2,390			2,626
Operating lease liability, net of current portion		595			-
Total liabilities		2,985			2,626
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and outstanding		-			-
Common stock, par value $0.01 per share: 50,000,000 shares authorized, 4,501,301 issued and outstanding at December 31, 2022 and 2021		45			45
Additional paid-in capital		241,852			241,834
Accumulated other comprehensive loss		(6,158)			(6,077)
Accumulated deficit		(233,647)			(233,762
Total stockholders' equity		2,092			2,040
Total liabilities and stockholders' equity	$	5,077		$	4,666$

SOURCE: CDTi Advanced Materials, Inc.

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FAQ

What were CDTi's financial results for 2022?

CDTi's total revenue for 2022 was $9.7 million, with a gross margin of 32%. They achieved operating income of $0.2 million and had $1.3 million in cash on hand at the end of the year.

What drove CDTi's revenue expansion in 2022?

The revenue expansion was driven by new demand for existing patented technology and successful introduction of new proprietary products, particularly in the fuel borne catalyst product line in North America.

What growth markets did CDTi deploy their advanced catalyst coating technology in?

CDTi deployed their advanced catalyst coating technology in hydrogen production and carbon capture, expecting rapid revenue expansion in the clean energy segment.