EXHIBIT 99.1
NAT
NATURALLY ADVANCED TECHNOLOGIES
NATURALLY ADVANCED TECHNOLOGIES ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2005 RESULTS
Vancouver -March 30, 2006 - Naturally Advanced Technologies Inc., (NADVF: OTCBB)
a leading provider of sustainable, environmentally-friendly fibers and fabrics,
today announced financial results for the three-month and full-year period
ending December 31, 2005.
Sales for the fourth quarter were $151,982, up 19 percent compared to $127, 637
in the year ago quarter. Net loss for the quarter ended December 31, 2005 was
$406,387, or $0.02 per share. This compared to a net loss of $417,940, or $0.03
per share, for the quarter ended December 31, 2004.
Sales for the full year ended December 31, 2005 were $958,238, up 15 percent
compared to $831,545 for the year ended December 31, 2004. Net loss for the full
year 2005 was $876,758, compared to $897,054 for the full year 2004. The net
loss for 2005 includes the adjustment made to the third quarter gain on sale of
subsidiary shares, originally recorded on the September 30, 2005 Interim
Consolidated Statements of Operations and Deficit. This gain is now recorded as
a capital transaction, removing any impact from the company's net loss figure.
Loss per share for the year ended December 31, 2005 was $0.06, compared to $0.07
for the year ended December 31, 2004.
"Overall sales increased in 2005; however, our aspirations for our company and
the proliferation of sustainable fibers are much greater. Therefore, we have
taken steps to increase growth through sales of our clothing line HT NaturalsTM
and development and commercialization of proprietary technology owned by our
Crailar Fiber Technologies subsidiary," stated Jerry Kroll, CEO of Naturally
Advanced Technologies. "First, in October 2005, we retained The Meriwether Group
to assist with strategic planning, marketing and sales. After formulating the
plan to establish HT Naturals as a showcase for product using sustainable
fabric, we engaged the S Group to manage sourcing and product development. Then,
in February 2006 we hired Stephanie Knight, Vice President Strategic Sales, to
lead our HT Naturals sales team. Stephanie will focus sales to
environmentally-minded corporations and private label, which will be
supplemented by our seasonal retail line. As we are currently marketing new
product developed by the S Group, we anticipate HT Naturals sales will begin to
ramp up in the third quarter of 2006."
Kroll continued, "HT Naturals will be a solid business; however, we believe our
long-term growth driver is CRAILAR(TM). This new biotech enzyme process we have
developed in collaboration with leading Canadian research councils enables cost
effective production of quality sustainable fabrics and composites. CRAILAR
technology will target many markets including the $6 billion U.S. cotton
industry. In 2005, Crailar Fiber Technologies raised $1.3 million to support the
commercialization of CRAILAR. The next steps are the patent filing and licensing
of the process, which we anticipate will start to happen in the upcoming weeks."
ABOUT NATURALLY ADVANCED TECHNOLOGIES INC.
Naturally Advanced Technologies Inc. (NAT, OTCBB: NADVF), formerly Hemptown
Clothing Inc., is a leading provider of sustainable, environmentally-friendly
fibers and fabrics. Naturally Advanced Technologies is in the process of
developing and patenting a revolutionary biotech enzyme fiber process named
CRAILAR in collaboration with Canada's National Research Council and Alberta
Research Council. CRAILAR is expected to enable the cost-effective production of
these quality and conservation-based textiles and composites; therefore,
management believes CRAILAR will significantly change production of fibers and
composites. The company intends to license CRAILAR to partners in many
industries including apparel; medical and hospitality textiles; upholstery;
diversified industrials; and auto, marine and airplane parts. NAT was founded in
1995 in response to the growing demand for environmentally friendly, socially
responsible clothing. In its ten year history, NAT has shipped more than 500,000
garments reducing chemical use by 86,634 pounds and saving 452,232,264 gallons
of fresh water. NAT's customers include the San Diego Zoo, Toyota, Universal
Music and Volkswagen. NAT respects human rights of employees, the environmental
impact of the company's operations and fiscal responsibility to its
shareholders.
SAFE HARBOR STATEMENT
This release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act of
1934 and the provisions of the Private Securities Litigation Reform Act of 1995
and is subject to safe harbor created by these sections. Actual results may
differ materially due to a number of risks, including, but not limited to,
technological and operational challenges, needs for additional capital, changes
in consumer preferences, risks associated with: market acceptance and
technological changes; dependence on manufacturing and material supplies
providers; international operations; and competition.
CONTACT
For further information please contact Investor Relations, Kirsten Chapman or
Moriah Shilton, both of Lippert/Heilshorn & Associates,
ir@naturallyadvanced.com, +1-415-433-3777.
For more details on the NRC enzyme process, see:
http://hemptown.com/sites/hemptown/files/NRCArticle.pdf
SOURCE: NATURALLY ADVANCED TECHNOLOGIES
- Tables to Follow -
NATURALLY ADVANCED TECHNOLOGIES INC.
(FORMERLY HEMPTOWN CLOTHING INC.)
Consolidated Statements of Operations
Years ended December 31, 2005 and 2004
(In US Dollars)
Unaudited Audited
Prepared by management
____________________________________________________________________________________________________________________________
Three Months Ended Year Ended
Dec-31 2005 2004
____________________________________________________________________________________________________________________________
SALES $ 151,982 $ 127,637 $ 958,238 $ 831,545
COST OF SALES 95,454 79,575 681,256 570,666
____________________________________________________________________________________________________________________________
GROSS PROFIT $ 56,528 $ 48,062 $ 276,982 $ 260,879
____________________________________________________________________________________________________________________________
EXPENSES
Advertising and promotion $ 76,012 $ 105,126 $ 202,518 $ 235,946
Bad debts 12,765 42,460 16,029 42,812
Consulting fees 15,548 2,997 49,162 2,997
Consulting fees - stock based compensation 10,400 12,988 55,155 36,845
Contract labour 70,605 88,155 260,402 212,962
Contract labour - stock based compensation - - 15,000 -
Depreciation 3,171 2,888 11,925 9,798
Insurance 8,854 2,791 18,011 19,847
Interest 24,529 11,444 83,973 40,445
Legal and accounting 54,919 55,744 124,603 111,525
Office and general 58,196 43,696 141,134 160,234
Rent 7,018 10,805 40,835 41,385
Research and development 57,115 24,961 136,097 50,148
Salaries and benefits 98,486 61,947 278,534 235,801
Government grant, net of fees - - (201,101) -
Gain on settlement of debt 21,917 - (21,917) -
____________________________________________________________________________________________________________________________
$ 519,535 $ 466,022 $ 1,210,360 $ 1,157,933
____________________________________________________________________________________________________________________________
LOSS FROM OPERATIONS $ (463,007) $ (417,940) $ (933,378) $ (897,054)
Minority Interest 56,620 - 56,620 -
____________________________________________________________________________________________________________________________
NET LOSS $ (406,387) $ (417,940) $ (876,758) $ (897,054)
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Loss per share (basic) $ (0.02) $ (0.03) $ (0.06) $ (0.07)
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Weighted average number of shares outstanding (basic) 16,437,835 13,270,035 14,365,070 13,132,241
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NATURALLY ADVANCED TECHNOLOGIES INC.
(FORMERLY HEMPTOWN CLOTHING INC.)
Consolidated Balance Sheets
(In US Dollars)
_________________________________________________________________________________________________
December 31, December 31,
2005 2004
_________________________________________________________________________________________________
ASSETS
CURRENT
Cash $ 1,260,939 $ 13,632
Accounts receivable 162,576 219,626
Inventory 276,141 318,605
Prepaid expenses and other 75,128 79,646
Deferred financing costs - 10,815
_________________________________________________________________________________________________
$ 1,774,784 $ 642,324
PROPERTY AND EQUIPMENT 18,288 23,442
_________________________________________________________________________________________________
$ 1,793,072 $ 665,766
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LIABILITIES
CURRENT
Bank loan $ - $ 100,545
Accounts payable and accrued liabilities 382,007 387,804
Due to related parties 30,449 126,606
Capital lease obligation, current portion 1,499 7,781
Note payable 100,000 400,000
Short term loan 29,467
_________________________________________________________________________________________________
$ 543,422 $ 1,022,736
NOTE PAYABLE 300,000 -
LONG TERM DEBT 27,801 26,922
CAPITAL LEASE OBLIGATION 12,452 7,896
_________________________________________________________________________________________________
$ 883,675 $ 1,057,554
_________________________________________________________________________________________________
MINORITY INTEREST $ 270,308 $ -
_________________________________________________________________________________________________
STOCKHOLDERS' EQUITY
CAPITAL STOCK
Authorized: 100,000,000 common shares without par value
Issued and outstanding : 16,811,815 common shares $ 2,242,128 $ 1,359,448
(2004 - 13,270,035)
ADDITIONAL PAID-IN CAPITAL 1,062,391 41,367
ACCUMULATED OTHER COMPREHENSIVE INCOME 12,259 8,328
DEFICIT (2,677,689) (1,800,931)
_________________________________________________________________________________________________
$ 639,089 $ (391,788)
_________________________________________________________________________________________________
$ 1,793,072 $ 665,766
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