BELMONT, Mass., May 18, 2007 (PRIME NEWSWIRE) -- Kronos Advanced Technologies, Inc. (OTCBB:KNOS) President and Chief Executive Officer Daniel R. Dwight announced that the Company filed today its quarterly report for the nine months ended March 31, 2007 on SEC Form 10-QSB.
Although the Company has made advances in both the residential and commercial markets during the quarter, the Company's operating activities were limited by the lack of financial resources. In this regard, the Company reported it does not currently have sufficient financial resources to fund its operations, pay certain existing obligations or those of its subsidiary, including payroll obligations. Therefore, the Company needs substantial additional funds to continue operations and pay its obligations. Should the financing the Company requires to sustain its working capital needs be unavailable, the Company would be forced to curtail or cease its business operations.
Subsequent to the end of the quarter, the Company received $200,000 in net proceeds from two accredited investors under the terms of a convertible debenture. These proceeds have allowed the Company to maintain its current operations, including the retention of its employees, for a limited period of time. The Company is in active discussions with an alternative funding source but does not know at this time the potential outcome of these discussions.
The net losses for each of the three and nine months ended March 31, 2007 were $786,919 and $2,501,349 compared with $922,514 and $2,628,516 for the same periods of the prior year. The $135,595 or 15% decrease in the net loss for the three months ended March 31, 2007, as compared to the prior year was principally the result of a $33,148 increase in gross margin, a $69,472 or 9% decrease in selling, general and administrative expenses and a $32,975 or 27% decrease in interest expense. The $127,167 or 5% decrease in the net loss for the nine months ended March 31, 2007, as compared to the prior year was principally the result of a $33,960 or 117% increase in gross margin and a $162,094 or 38% decrease in interest expense, partially offset by a $68,886 or 3% increase in selling, general and administrative expenses.
Revenues for the three and nine months ended March 31, 2007 were $34,902 and $156,384 compared with $0 and $37,500 for the same periods in the prior year. Revenues are generated through sales of services for design and development and licensing of Kronos devices.
Selling, General and Administrative expenses for the three months ended March 31, 2007 decreased $69,472 or 9% from the corresponding period of the prior year to $732,086 principally the result of a $89,622 or 97% decrease in research and development, as the Company continued to focus its resources on technology commercialization and product development. Selling, General and Administrative expenses for the nine months March 31, 2007 increased $68,886 from the corresponding period of the prior year to $2,302,423 principally the result of a $270,762 increase in compensation and benefits, partially offset by a $194,551 decrease in research and development.
Details of the Company's results can be found in its quarterly report filed May 18, 2007 on SEC Form 10-QSB, at www.sec.gov or at www.kronosati.com.
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos Advanced Technologies has developed a new, proprietary air movement and purification system that utilizes state-of-the-art high voltage electronics and electrodes to silently move and clean air without any moving parts. Kronos is actively commercializing its technology for standalone and embedded products across multiple residential, commercial, industrial and military markets. Kronos' technology is versatile, energy- and cost-efficient and exhibits multiple design attributes, creating a broad range of applications. The Company's business strategy includes a combination of building internal capabilities, establishing strategic alliances and structuring licensing arrangements. Kronos Advanced Technologies is located in Belmont, MA. More information about Kronos Advanced Technologies is available at www.kronosati.com.
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Safe Harbor Provision
This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on future financial performance, market growth, capital requirements, new product introductions and acquisitions, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, managements, including management's own knowledge and assessment of the Company's industry, R&D initiatives, competition and capital requirements. Other factors and uncertainties that could affect the Company's forward-looking statements include, among other things, the following: identification of feasible new product initiatives, management of R&D efforts and the resulting successful development of new products and product platforms; acceptance by customers of the Company's products; substantial expansion of international sales; reliance on key suppliers; the potential need for changes in long-term strategy in response to future developments; and competitive factors, including pricing pressures and the introduction by others of new products with similar or better functionality than our products. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-KSB for the year ended June 30, 2006. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.