Slide 1: PEN Inc. Third Quarter Earnings Call
PEN Inc. Third Quarter Earnings Call November 25, 2014 ) Dr. Scott Rickert, Chairman and CEO wT | Nn C; Adam Wasserman, Chief Accounting Officer y * nd
Slide 2: Safe Harbor Statement
Safe Harbor Statement Today’s webcast contains forward-looking statements that involve risks and uncertainties concerning our business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect ou
Slide 3: PEN is on the move
PEN is on the move Dr. Scott Rickert Chairman and CEO
Slide 4: PEN is on the move
PEN is on the move PEN is making progress Putting PEN on solid financial footing Restructured R&D operation for break-even Contract research work continues apace Historical business of PEN remains strong Successfully absorbing combination expenses Our goal remains unchanged ea) INC.
Slide 5: Basis of third quarter results
Basis of third quarter results Adam Wasserman === Chief Accounting Officer
Slide 6: Third Quarter Results
Third Quarter Results For the nine months ended September 30 ° Net income up: $94,491 versus $97,642 net loss for the same period in 2013 e Sales increase: by $890,101 or 13.3% over same period in 2013 ¢ Pro forma net income: $329,000 *Non-GAAP [excludes $239,000 of Combination costs] ea) iw =WINC.
Slide 7: Third Quarter Results
Third Quarter Results For the nine months ended September 30 ¢ Total stockholders’ equity increased more than 40% - Earnings per share are unchanged ¢ Net cash provided by operating activities increased: $1,024,899, compared to net cash used in operating activities of $567,294 for the same period in
Slide 8: Third Quarter Results
——;*z—~—~XaKK——— Third Quarter Results For the quarter ended September 30 ° Net loss of $478,677 as compared to net income of $30,799 for the same period of 2013 ° Reflect merger acquisition costs ° Losses from the research and development segment ¢ Already made restructuring efforts to cut costs ¢
Slide 9: Third Quarter Results
Third Quarter Results ° Salaries, wages and contract services for 3 months and 9 months increased ° Related to combination, market development, headcount ¢ Professional fees increased for the quarter and 9 months > Largely due to combination ¢ General and administrative expenses increased = Inclusio
Slide 10: Third Quarter: other items
Third Quarter: other items ¢ Applied Nanotech $1.7 million convertible debt converted and retired ¢ $1.5 million line of credit to fund working capital needs e Sales and marketing expense decreased ° Research and development costs decreased ea) INC.
Slide 11: Summary: Significant progress
Summary: Significant progress ¢ Retired $1.7 million in convertible debt Addressed expenses in R&D organization Both organizations are more financially sound Continue core businesses Poised for organic growth Working our product strategy ea) INC.
Slide 12: Question & Answer
Question & Answer PEN Inc. ———— Third Quarter Earnings Call
Slide 13: PEN is on the move
PEN is on the move Dr. Scott Rickert Chairman and CEO
Slide 14: Thank you for attending the PEN Inc. Third Quarter Earnings Call
Thank you for attending the PEN Inc. Third Quarter Earnings Call November 25, 2014 (ecalie