Nanophase Technologies Corp (NANX, Financial) released its 8-K filing on March 26, 2025, showcasing a remarkable financial performance for the fourth quarter and full year of 2024. The company, now rebranded as Solésence, Inc., reported significant revenue growth driven by strategic shifts in customer mix and product launches.
Company Overview
Nanophase Technologies Corp, now operating under the name Solésence, Inc., specializes in engineered nanomaterial solutions and larger, sub-micron materials. The company serves various industries, including personal care, architectural coatings, and medical diagnostics, with products such as Aluminum Oxide and Zinc Oxide. A substantial portion of its revenue is derived from Solésence finished products.
Financial Performance and Challenges
For the fourth quarter of 2024, Nanophase Technologies Corp reported a 57.5% increase in revenue, reaching a record $12.6 million compared to $8.0 million in the same period of 2023. The gross profit surged by 460% to $2.8 million, with a gross margin improvement from 6% to 22%. Despite a net loss of $0.6 million, this was a significant improvement from the $2.1 million loss in the previous year.
The full-year results were equally impressive, with revenue climbing 40% to $52.3 million, up from $37.3 million in 2023. The company achieved a net income of $4.2 million, a substantial turnaround from the $4.4 million net loss in the prior year. These results underscore the company's ability to adapt and thrive amidst changing market dynamics.
Key Financial Achievements
The company's gross profit for the year more than doubled, reaching $16.2 million, with a gross margin of 31%, up from 21% in 2023. This improvement highlights the effectiveness of the company's strategic initiatives and operational efficiencies. The increase in gross margin is particularly significant in the chemicals industry, where cost management and product differentiation are crucial for maintaining competitive advantage.
Detailed Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $52.3 million | $37.3 million |
| Gross Profit | $16.2 million | $7.8 million |
| Net Income/(Loss) | $4.2 million | $(4.4) million |
| Gross Margin | 31% | 21% |
Operational Highlights and Strategic Initiatives
Nanophase Technologies Corp expanded its production capabilities at the Bolingbrook facility, enhancing its capacity to support over $200 million in annual revenue. The company also launched over two dozen new SKUs, including a new EU-focused brand, reflecting its commitment to innovation and market expansion.
“Our strong fourth-quarter results were driven by a shift in customer mix and the timing of key product launches, which, unlike previous years, occurred in the fourth quarter rather than the first,” said Jess Jankowski, President, CEO, and CFO of Solésence.
Analysis and Future Outlook
The company's robust financial performance and strategic rebranding as Solésence, Inc. position it well for future growth. The planned uplisting to the NASDAQ market in 2025, subject to eligibility, indicates confidence in continued expansion and market presence. However, the company must navigate challenges such as customer dependency and competitive pressures to sustain its growth trajectory.
Overall, Nanophase Technologies Corp's 2024 financial results demonstrate a successful execution of its strategic initiatives, setting a strong foundation for future growth and innovation in the chemicals industry.
Explore the complete 8-K earnings release (here) from Nanophase Technologies Corp for further details.
