BELMONT, Mass., Feb. 21, 2007 (PRIME NEWSWIRE) -- Kronos Advanced Technologies, Inc. (OTCBB:KNOS) President and Chief Executive Officer Daniel R. Dwight announced that the Company has made significant advances in both the residential and commercial markets during or subsequent to the second quarter ended December 31, 2006, including the generation of revenues from the sale of power supplies and other electronic components to its strategic partner EOL, as well as sales from air movement and filtration prototype devices to DESA and a leading home appliance manufacturer.
For the first six months of fiscal 2007 ended December 31, the Company's wholly owned subsidiary Kronos Air Technologies, Inc. generated $121,000 in revenue compared with $37,000 for the corresponding period of fiscal 2006, a 225% increase.
The Company continued to make investments in product development across both commercial and consumer standalone product applications and in residential embedded product applications, as well as increasing its business development activities to further expand the Company's base of new potential strategic partners. The increased activity led to a $138,000 or 10% increase in operating expenses to $1,570,000 for the six months ended December 31, 2006, as compared with the prior year. The Company's net losses for each of the six months ended December 31, 2006 and 2005 were $1,714,000 and $1,706,000, respectively.
"Over the past few months Kronos made further progress in seeking to improve the Company's financial outlook by restructuring two material debt obligations," stated Kronos President and Chief Executive Officer Daniel Dwight. "In December, Kronos and Cornell Capital Partners reached a mutual agreement to convert and exchange $1.6 million in outstanding principal and interest owed on a Promissory Note for a Convertible Debenture with no required payments until the Debenture is due in full June 2007. Also, at this time Kronos does not plan to register any additional shares to Cornell Capital Partners under the terms of the Cornell Standby Equity Distribution Agreement."
Mr. Dwight stated further that, "The Company reached a mutual agreement this week to settle with HoMedics, our former strategic partner. In exchange for Kronos making a $1 million cash payment within the next 120 days, HoMedics agreed to cancel the entire $3.1 million of principal and accrued interest owed to them, to cancel 26.5 million warrants, to modify the terms of their remaining 13.5 million warrants, and to return unencumbered their license for Kronos consumer retail products."
Business highlights include:
-- Revenue generation from the sale of power supplies and other
electronic components to the Company's strategic partner, EOL, for
installation in commercialized products being marketed by EOL in
Russia;
-- Revenue generation from shipment of an air movement and filtration
prototype device to DESA for an embedded heating application;
-- Revenue generation from shipment of air movement and filtration
prototype devices to a leading global home appliance manufacturer
for a silent range hood application;
-- Order to purchase prototype devices for demonstrating the silent
range hood application of the Kronos technology by a second
leading global home appliance manufacturer;
-- Request from a leading auto manufacturer to whom Kronos has
previously shipped prototype devices designed and built under the
customer's specifications for Kronos to provide the manufacturer a
follow-on proposal to further develop auto based applications
utilizing the Kronos technology; and
-- Russian medical certification for the Kronos-based Tree(tm) air
purification product for use in hospitals and other healthcare
facilities: the Russian Research Institute of Medical Equipment
approved Kronos-based Tree(tm) air purification device as a
Category I device, which means the product has met the strictest
regulations required for a device to be used in operating rooms
and other areas that require a sterile environment. Following the
Russian Research Institute approval, the Ministry of Health Care
and Social Development of the Russian Federation issued a
Registration Certificate that designates the Tree(tm) air
purification device for medical use.
Details of the Company's results can be found in its quarterly report filed February 20, 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.
The Kronos Advanced Technologies, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1888
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.