Mr. Sean Krakiwsky reports

NANALYSIS ACHIEVES RECORD REVENUE IN Q4

Nanalysis Scientific Corp. has provided an estimate of Q4 2023 unaudited revenue and highlights some other recent business accomplishments.

Sean Krakiwsky, founder and chief executive officer of Nanalysis, states: "We are very pleased with how the fourth quarter closed out 2023, a year not without its challenges. While our security services business continued its ramp through the end of the year, we also had strong results in our Benchtop sales that we expect to continue into the first quarter. With both Benchtop NMR and security services contributing significantly, we were able to achieve fourth quarter unaudited revenues of between $9.3-million and $9.8-million, constituting a new record quarter for Nanalysis.

"We feel that with the continued trajectory of the company's airport security maintenance project, returning strength to Benchtop NMR revenue, and our cost-cutting measures that were implemented last year and continuing into 2024, we are making progress toward our corporate objective of generating positive EBITDA [earnings before interest, taxes, depreciation and amortization] in this fiscal year."

Financial and operational highlights:

• New quarterly revenue record: Q4 2023 revenue will be at least $9.3-million (unaudited), driven by continued expansion of security services related to the company's airport security maintenance project, as well as continued recovery in Benchtop NMR sales.
• Phase-in of the company's airport security maintenance project: On Jan. 11, 2024, the company completed the phase-in period related to its airport security maintenance project, resulting in the company's security services business now performing maintenance of passenger screening imaging and detection equipment across all of Canada. The company is confident that the highly capable team it has built during this project will provide significant growth opportunities for this business with new customers and partners.
• 100-megahertz Benchtop NMR product: In Q4, the company sold and shipped 14 100-megahertz (MHz) Benchtop NMR units, the highest number of shipments for 100 MHz units in a quarter since the company cleared its backlog in 2022. This drove continued recovery in Benchtop NMR revenue. Customer satisfaction is high, and the company continues to seek value-added partnerships and new software applications to drive more growth.
• New patent grant: The company expanded its patent portfolio with the grant of United States patent No. US 11,815,574B2 which is part of the continuing patent pipeline for its Benchtop NMR products. The company continues to innovate in several areas of magnetic resonance technology, and it is proud of this recent patent grant directly associated with the 100 MHz product.

About Nanalysis Scientific Corp.

Nanalysis Scientific operates two primary businesses: scientific equipment and security services. Within its scientific equipment business is what the company terms MRI (magnetic resonance imaging) and NMR (nuclear magnetic resonance) for industry. The company develops and manufactures portable NMR spectrometers or analyzers for laboratory and industrial markets. The NMReady-60 was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020, the company announced the launch of its 100 MHz device, the most powerful and most advanced compact NMR device ever brought to market.

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