Industrial Nanotech, Inc Provides Update Regarding Supply Chain Issue and Revenue Guidance

Rhea-AI Summary

Industrial Nanotech, a leader in nanoscience solutions, announced the resolution of a significant supply chain issue affecting its EPX-H2O product. A key resin was unavailable, halting production, which impacted Q2 2022 revenue. However, the company has identified a replacement resin, and testing has confirmed its efficacy. Production has resumed, with postponed sales expected in Q3 2022. The company also plans to finalize partnerships in the Middle East and expand operations in Saudi Arabia. A revised revenue forecast will follow customer confirmations of the new EPX-H2O formula.

Positive

• Production of EPX-H2O has resumed, mitigating revenue loss concerns.
• New resin formulation for EPX-H2O has shown improved thermal performance.
• Postponed sales expected to occur in Q3 2022, alleviating revenue impact.

Negative

• Initial halt in production due to the unavailability of a key resin affected Q2 2022 revenue.

BROOMFIELD, Colo., June 29, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- Industrial Nanotech, Inc (Pink Sheets: INTK), a global nanoscience solutions and research leader, today announced that a major recent supply chain issue has been resolved.

Stuart Burchill, CEO of Industrial Nanotech, states, “One of our top selling products for major industrial customers is EPX-H2O. This is what companies like Exxon and Nestle and industries like the railroad industry and chemical manufacturing use.”

Burchill continues, “Very recently we were informed that a key resin used in EPX-H2O was not available in inventory and would no longer be manufactured and we had to halt production. This impacted Q2 2022 revenue and, as required, we promptly informed our shareholders of this material event.”

“Simultaneously, we were informed that there was an offset from the same manufacturer… a new resin… that might work as a replacement. We began testing it. I returned from Spain late last night and personally saw the results today at our company laboratory this morning. As CTO, I am required to sign off on all formulations. I signed off on the new EPX-H2O formula. It is excellent.”

The Company states that production of EPX-H2O has started again, that no sales were lost, only postponed, and expects the postponed sales to occur in Q3 2022.

The Company will be offering a revised revenue forecast after confirmation from other major new EPX-H20 customers that the new formula is satisfactory. The Company is confident that it will be satisfactory as the thermal performance is actually improved.

Update re Middle East: Burchill will be returning to Dubai in early July to finalize and sign the agreements with the local partner to sell the Company’s current products to the building industry and the oil and gas industry; to work with their national laboratory to create unique versions of the Company’s products designed for specific government projects; and open a manufacturing facility in the Free Trade Zone. The partnership has also been expanded to include Saudi Arabia.

Burchill concludes, “I am very confident in the future of the Company, very grateful for the brilliant minds and exceptional work ethic of our science team who reformulated EPX-H2O in record time, and very appreciative of our loyal shareholders who continue to support us. I look forward to discussing this and many other topics at the next live shareholder Zoom event on July 28, 2022, at 4 p.m. U.S. Eastern Time.

About Industrial Nanotech, Inc. 

Industrial Nanotech, Inc. is a global nanoscience solution and product development leader. See www.industrial-nanotech.com for more information.

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Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise/update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

Investor Contact:
invest@industrial-nanotech.com

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FAQ

What recent supply chain issue did Industrial Nanotech resolve?

Industrial Nanotech resolved a supply chain issue related to a key resin for its EPX-H2O product, which had halted production.

How did the resin issue impact Industrial Nanotech's revenue?

The resin issue impacted Q2 2022 revenue, leading to a temporary halt in production, but postponed sales are expected in Q3 2022.

What is the expected timeline for sales after the resin issue?

Sales that were postponed due to the resin issue are expected to occur in Q3 2022.

What improvements were found in the new EPX-H2O formula?

The new EPX-H2O formula using the replacement resin has shown improved thermal performance.

What expansion plans does Industrial Nanotech have in the Middle East?

Industrial Nanotech plans to finalize partnerships in Dubai and expand operations in Saudi Arabia, targeting the building and oil industries.