ThermoCeramix Reports Fourth Quarter and Fiscal 2014 Results

MONTREAL, QUEBEC -- (Marketwired) -- 04/27/15 -- ThermoCeramix Corporation ("ThermoCeramix", "TCX" or the "Company") (TSX VENTURE: TCX), a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions, today reported its financial and operational results for the three and twelve months ended December 31, 2014.

"Since April 2014, we have made significant progress commercializing our proprietary 'heat-transfer' platform technology," stated Louis Desmarais, Chief Executive Officer of ThermoCeramix Corporation. "Having proven our technology, we embarked on the second phase of our commercialization strategy in 2014. We realized a critical milestone with the launch of our single lead application, the Downtown Grill, which was developed to demonstrate the commercial viability of our technology. In parallel to this, we initiated discussions and development projects with global aerospace, appliance and automotive manufacturers with the intention of developing applications for our technology and implementing our vision of broadly licensing our platform technology."

Fourth Quarter 2014 Highlights

--  Commenced commercial production of the Downtown Grill (the "Hibachi"),
    which is the first TCX-branded consumer application of the Company's
    technology.
--  Entered into a joint development agreement with a major appliance
    manufacturing company.

Fiscal 2014 Highlights

--  Acquired all of the outstanding shares of ThermoCeramix, Inc., a
    technology development company, through a "Qualifying Transaction" and
    commenced trading on the TSX Venture Exchange.
--  ThermoCeramix, Inc. completed the second tranche of a private placement
    for gross proceeds of $325,000.
--  Closed a bought deal private placement offering for $7.5 million.

Highlights Subsequent to Quarter End

--  Entered into a non-binding term sheet with Zephyr Ventilation Inc., a
    San Francisco-based leader in kitchen ventilation hood design,
    innovation and technology, for the development of two appliances.
--  Further strengthened the management team with the appointment of Shaun
    Parmar as Chief Financial Officer and Alexandre Paris as Chief Operating
    Officer.
--  Completed an internal reorganization to simplify the corporate structure
    and reduce administrative costs by acquiring all of the outstanding
    shares of ThermoScience Enercoatings, Inc.
--  Selected as a finalist at the Hearth & Home Magazine's 15th Annual Vesta
    Awards in the "Barbecue, Other Fuels" category in recognition of the
    Hibachi's innovative technology.

Financial Highlights

----------------------------------------------------------------------------
                      Three-months  Three-months
                             ended         ended    Year ended    Year ended
                      December 31,  December 31,      December      December
                              2014          2013      31, 2014      31, 2013
                     Unaudited ($) Unaudited ($)   Audited ($)   Audited ($)
----------------------------------------------------------------------------
Net research and
 development
 expenses                  291,787      (83,928)     1,095,748       100,129
----------------------------------------------------------------------------
Administrative
 expenses                  894,412       486,387     2,800,380     1,297,055
----------------------------------------------------------------------------
Listing costs                    -             -       770,183             -
----------------------------------------------------------------------------
Other income              (62,778)      (66,170)      (81,503)     (201,919)
----------------------------------------------------------------------------
Net interest expense         7,433        59,465        80,755       167,992
----------------------------------------------------------------------------
Net loss for the
 period                  1,030,885       619,624     4,410,007     1,602,198
----------------------------------------------------------------------------
Net loss per share
 (basic and diluted)          0.02          1.57          0.16          3.17
----------------------------------------------------------------------------

Financial Highlights

Research and Development (R&D)

Research and development ("R&D") expenses for the three-months and twelve-months ended December 31, 2014 were $421,242 and $1,492,329, respectively, compared to $333,251 and $814,620 in the same periods in the previous year. This year-over-year increase, which was due to an acceleration of activities by the Company in 2014, combined with a decrease in R&D tax credits and government grants of $282,506 and $35,404, respectively, resulted in an overall increase of $995,619 in net R&D expenses compared to 2013.

General and administrative expenses

General and administrative expenses for the fourth quarter 2014 were $894,412 compared to $486,387 for the fourth quarter 2013. For fiscal 2014, general and administrative expenses were $2,800,380 compared to $1,297,055 in fiscal 2013. This increase was primarily attributable to two factors: (i) $328,667 of share-based compensation expenses incurred in connection with the Qualifying Transaction, as a consequence of the re-valuation of share options issued, on a one-for-one exchange basis, to the holders of Thermoscience Enercoatings Inc.'s options (see Note 7 of the TCX consolidated financial statements for the year ended December 31, 2014); and (ii) an acceleration of activities in 2014.

For the year ended December 31, 2014, the company incurred $770,183 of listing costs in connection with the Qualifying Transaction. Of this amount, $519,055 pertained to listing costs expensed, which represented the excess of the fair value of the shares, options and warrants issued by the Company over the value of the net monetary assets of Springrock Capital Inc. (see Note 7 of the TCX consolidated financial statements for the period ended December 31, 2014). The remaining $251,128 pertained to legal and accounting fees incurred.

Other Income

Other income is composed of R&D service contracts and product sales.

For the quarter ended December 31, 2014, other income decreased by $3,392 to $62,778, compared to the same period of the previous year. For the year ended December 31, 2014, other income decreased by $120,416 to $81,503, compared to the prior year period. This decrease was due to reduced sales of components and a decline in R&D service contracts, partially offset by limited sales of the Hibachi, which was launched in late 2014.

Net Interest Expense

Net interest expense was $7,433 for the quarter ended December 31, 2014, compared to $59,465 in the same period in 2013. For fiscal 2014, net interest expense was $80,755 compared to $167,992 in fiscal 2013. This decrease was primarily due to lower interest expense on account of the conversion of a convertible debenture into equity in December 2013 and the repayment of a tax credit loan in the first quarter of 2014, augmented by higher interest income due to higher average cash balances in 2014.

Net Loss

Net loss for the fourth quarter and fiscal 2014 was $1,030,885 and $4,410,007, respectively, compared to net loss of $619,624 and $1,602,198 recorded in the same periods in the prior year. The primary contributors to this change were higher general and administrative expenses on account of the Qualifying Transaction and an acceleration of activities in 2014, higher net R&D expenses due to an acceleration of activities combined with a decrease in R&D tax credits and government grants, lower other income due to reduced sales of components and a decline in R&D service contracts, partially offset by a favourable adjustment to income tax expense, limited sales of the Hibachi and lower net interest expense.

Outlook

ThermoCeramix is focused on commercializing its high-performance, energy-efficient, platform heating technology. Having proven and secured patents for its TCX" technology, the Company is progressing on a defined number of opportunities that it believes could accelerate large-scale validation of its technology and allow it to secure broad licensing contracts, notably:

--  Sales and manufacturing ramp-up of the Hibachi; and,
--  Securing development projects, and ultimately licensing agreements, with
    large manufacturers in the appliance, aerospace and automotive
    industries.

Commercialization of the Hibachi

The Company believes that it can achieve mass-market validation of its platform technology through the commercialization of the Hibachi.

In 2012, 14 million new barbeques were shipped to households across the U.S.A. - a total market opportunity of $5.6 billion. Of those annual sales, electric barbeques only accounted for approximately 200,000-300,000 units which the Company believes was primarily due to the weak performance of current electric heating technologies compared to standard gas barbeques. The Company believes that its proven solution overcomes this limitation.

Currently, the Company is focused on a two-tier go-to-market strategy for the Hibachi, namely:

--  Establishing retail distribution channels, with speciality stores and
    Big Box retailers; and
--  Developing next generation barbeques at lower price points for greater
    retail appeal.

Technology Licensing

The adaptability of the TCX technology allows it to target applications in the global household appliance industry. This industry, which has been experiencing a compounded annual growth rate of 6.1% over the last few years, is forecast to be worth an estimated $384 billion in 2017. This is propelled by the rate of developing economies in the Asia Pacific region, the emergence of smart appliances, and increasing demand for energy-efficient products.

ThermoCeramix has secured development contracts and remains in discussions with a number of international consumer appliance companies to develop and license various high-efficiency appliances using its patented technology.

Finally, the Company continues to move forward with discussions with aerospace and automotive parts producers to develop and license applications of its technologies for the production of injection moulded parts.

About ThermoCeramix

ThermoCeramix Corporation (TSX VENTURE: TCX) is a technology-licensing company engaged in the development of high-performance, energy-efficient electric heating solutions. The Company's patented and proprietary TCX" heating technology uses sprayed-on heaters applied directly to almost any profile and material that requires heat. The technology is energy-efficient, scalable, and adaptable to almost any size and shape. The Company holds a strong and broad intellectual property portfolio of over 25 patents. The Company's strategy is to commercialize one application of its technology platform through the development, production and sales of the Hibachi, a unique indoor-outdoor grill, and then license the technology for numerous additional consumer, commercial & industrial applications. For more information, please visit the Company's web site at www.thermoceramix.com.

Caution Regarding Forward Looking Information

Certain information set forth in this press release may contain "forward-looking statements" or "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein may constitute forward-looking statements. Any such forward-looking statements may be identified by words such as "could", "estimated", "will", "expects", "anticipates", "believe", "projects", "plans", "to be" and similar expressions. Any such statements are not guarantees of future performance and undue reliance should not be placed on them. Any such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that any such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. For more information relating to risks which may cause the Company's actual results to be different from expected and historical results, please see the Company's "Filing Statement" dated March 26, 2014 filed under the Company's SEDAR profile at www.sedar.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
ThermoCeramix Corporation
Louis Desmarais
Chief Executive Officer
(450) 641-5461 ext. 5651
[email protected]

TMX Equicom
Marina Proskurovsky
Investor Relations
(416) 815-0700 ext. 288
[email protected]

Source: ThermoCeramix Corporation

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