SAN FRANCISCO, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Hybrid Coating Technologies Inc. (OTC Pink:HCTI) is issuing this press release to summarize the key milestones achieved by the company in 2016 and to give a general outlook for 2017.
Coatings in 2016:
Industrial Finishes & Systems (IF), Hybrid’s U.S. distributor, has made significant progress in distributing Hybrid’s products in the U.S. with large flooring installations in various parts of the country.
Hybrid is currently working with IF to carry out new independent testing of its products, which will allow it to further distinguish the mechanical and chemical resistance superiority of its products over other products in the market.
Hybrid made significant progress in establishing sales in Europe. The company is now currently working with companies who plan to use Hybrid’s proprietary zero isocyanate catalysts in Italy, France, Spain and Germany.
The company has also put a significant amount of time and effort into lowering its manufacturing costs. Part of this effort includes the setup of a new toll manufacturer now manufacturing Green Polyurethane™ for Hybrid in Europe to serve its European based clients.
The company made considerable in-roads in Southeast Asia in 2016. After testing at Chinese state agencies, Hybrid’s floor coating formulations were found to be far superior to conventional floor coating systems currently on the market. Hybrid now has multiple Chinese companies who have tested its products and who now want to do large scale field trials. The company is also working with five large coatings companies in South Korea and Japan who are interested in Hybrid’s zero isocyanate polyurethane.
Hybrid’s Fortune 500 coatings partner used Hybrid’s zero isocyanate catalyst to develop and launch their own commercial coating product with a second product also expected to be launched.
Foam in 2016:
Hybrid entered into a joint development agreement with a Fortune 500 partner with a potential $20M per year revenue for Hybrid post development and after a reasonable ramp up period.
Hybrid entered into advanced discussions with a Fortune 500 company to jointly develop a foam product with a $10 billion addressable market.
Hybrid also entered into advanced discussions with a company for a joint development agreement for a foam product with a $35 billion addressable market.
2017:
Hybrid expects to start generating consistent revenues as of next year with revenues of approximately $2 million for 2017 comprised of $1.2M from its US coating distributor, as per its distribution agreement, and approximately $800,000 from several European coating manufacturers and distributors. Hybrid is not factoring any revenues from any foam products, however, it is possible that one or more foam products may be ready for commercialization during 2017.
“We are very pleased with the key milestones that we have achieved so far this year,” said Joseph Kristul, President and CEO, “This year was a critical year in the company’s development. We have been working diligently to establish a network of commercial partners with which to bring our products to market. With this network successfully in place, we are now on track to experience explosive growth in our coatings products. In addition, we expect to make significant progress on all of our foam developments in 2017 with the possibility of launching a foam product within the next year.”
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Hybrid Coating Technologies Inc. to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. Hybrid Coating Technologies Inc undertakes no duty to update any forward-looking statement(s) and/or to confirm the statement(s) to actual results or changes in Hybrid Coating Technologies Inc. expectations.
About Hybrid Coating Technologies
Hybrid Coating Technologies (HCT) is a San Francisco-based innovator focused on improving the quality and safety of foams, coatings, and adhesives for industrial and commercial customers around the world. We are the exclusive licensee of Green Polyurethane™ foam, coatings, and adhesives – the world’s first-ever patent protected polyurethane-based foam, coatings, and adhesive products that eliminate toxic isocyanates from the entire production process (licensed by Nanotech Industries, Inc.) and the 2015 recipient of the Presidential Green Chemistry Award.
The Problem of Conventional Foams/Coatings/Paint and Isocyanates
Conventional polyurethane (PU) paint and coatings have many disadvantages: they are porous, permeable and maintain poor hydrolytic stability. This makes the material highly vulnerable to environmental degradation and ultimately leads to their chemical decomposition, especially when in contact with water. Conventional PU foams such as spray foam insulation are applied via a spraying mechanism that sends toxic isocyanates in the air – exposing workers to the dangers of toxic isocyanates. Strict and costly health & safety measures have to be implemented in the manufacture and application of conventional polyurethane due to the toxicity of isocyanates. This is why regulatory bodies around the world are now looking toward phasing out the use of isocyanates.
The Green Polyurethane™ Solution
Green Polyurethane™ (also referred to as “HNIPU” - hybrid non-isocyanate polyurethane) is a “hybrid” material that combines the high chemical resistance properties of epoxy and advanced durability and wear resistance properties of polyurethane, making it the perfect coating application for sanitary, high traffic and corrosive surface areas. As a hybrid material with superior properties, Green Polyurethane™ can be applied in one or two coatings, providing a welcome cost-saving substitute to currently used multi-layered coating applications. Its safety features allow it to be applied without the interruption of business due to public exposure, creating an additional 30-60% savings on application costs for customers. As a foam, Green Polyurethane™ provides high R values up to 6.0, energy savings up to 30% and improved tensile strength over conventional foam without using dangerous isocyanates.
Recent Anti-Isocyanate Regulatory Pressure
US EPA MDI Action Plan: The US EPA (Environmental Protection Agency) is taking progressive action to regulate and potentially ban isocyanates and has mentioned Hybrid’s technology as an alternative to toxic polyurethane in its MDI Action Plan against isocyanates (see page 4 Figovsky and Shapovalov)
http://www.epa.gov/sites/production/files/2015-09/documents/tdi.pdf
OSHA National Emphasis Program: On June 25, 2013 the Occupational Safety and Health Administration (OSHA), a division of the US Department of Labor, initiated a National Emphasis Program to protect workers from the serious health effects from occupational exposure to isocyanates. Isocyanates are found in polyurethane based products. According to OSHA, "Workers exposed to isocyanates can suffer debilitating health problems for months or even years after exposure which could result in death."
California’s Department of Toxic Substances Control (DTSC) on March 13, 2014 selected isocyanates and two others substances from a list of 1,100 toxic components that it will focus on with the goal of potentially banning them altogether within the next two years. The announcement is part of a bigger effort to educate consumers and manufacturers about product safety under the Green-Chemistry Law, which went into effect in California last year. Under the law, the agency has jurisdiction to ban these products altogether after following proper protocol. That process includes workshops, a public comment period and requiring manufacturers that want to sell these products in California to determine whether it would be feasible to use safer ingredients
The US EPA on January 8, 2015 announced that it was taking action to protect consumers from new uses and imports of harmful isocyanates in polyurethane. The EPA’s proposed action, a Significant New Use Rule (SNUR) under the Toxic Substances Control Act (TSCA), would require manufacturers (including importers) to notify the EPA at least 90 days before starting or resuming new uses of isocyanates in polyurethane based consumer products. The EPA would then have the opportunity to evaluate the intended use of and if necessary, to take action to prohibit or limit all products containing over one tenth of one percent of the chemical including imported products that make their way into the United States
On September 14, 2016 BASF Corporation, Bayer Material Science LLC, Dow Chemical Company and Huntsman International LLC were named in a $90 Billion False Claims Act (FCA) lawsuit brought by New York law firm Kasowitz, Benson, Torres & Friedman LLP on behalf of the U.S. government for selling billions of dollars worth of harmful isocyanate chemicals but intentionally concealing their dangers to consumers and the U.S. Environmental Protection Agency (EPA) over the past several decades. In the suit, the law firm said that the defendants manufacture and sell isocyanate chemicals such as methylene diphenyl diisocyanate (MDI), polymeric MDI (PMDI) and toluene diisocyanate (TDI). These raw materials make up polyurethane products such as liquid coatings, paints and adhesives; flexible foam used in mattresses and cushions; rigid foam used as insulation; and elastomers used to make automotive interiors.