US Nuclear 2020 Year-End Shareholder Letter
LOS ANGELES, CA / ACCESSWIRE / January 19, 2021 / US Nuclear Corp. (OTCQB:UCLE)
Dear US Nuclear Corp. Shareholders,
The very challenging year of 2020 has finally come to an end and our hearts and prayers go out to all COVID-19 victims, families, and friends. After such a tumultuous year for everyone, it is only appropriate to give you an update on US Nuclear’s operations and strategic goals moving forward.
COVID-19 restrictions, precautions, and confusion caused a stall in US Nuclear Corp’s manufacturing process, which in turn, caused significantly lower revenues than our 2018 & 2019 levels. During this period, in order to protect our workers, we reduced the number of working staff, rotated work schedules, and hoarded our cash-on-hand. As with many other companies, US Nuclear has office personnel working partially or entirely at home, but we are manufacturers and much of our work is done in our Los Angeles and Cincinnati plants. We have been solely focused on returning our operations and sales to full normality, whether our employees are working in-office or from home. Towards the end of Q4 2020, bookings and quote requests were increasing, so we are expecting 2021 to be a cash-positive growth year.
As you may already know, we offer a broad line of measurement equipment for ensuring the safety and quality of the air we breathe and the water we drink. More recently, we added chemical and biological sensors to our air and water monitors, including on our drones and underwater ROVs. US Nuclear products are competitive in their markets, and a number of them are the world’s best and only source. Due to the supply and demand for these products, we recently hired three new salespeople in order to assist us with a more aggressive marketing and sales strategy. When US Nuclear first started in 1946 as Technical Associates, it was a niche company selling primarily radiation detectors to America’s new nuclear Navy and nuclear power plants. US Nuclear has since grown and we are now selling into much larger markets such as national laboratories, hospitals, first responders hazmat, homeland security, government, and military.
New products in the works include toxic material and bomb scanners for vehicles and containers inbound at our country’s seaports, airports, and border crossings. New services will include annual contracts for airborne data collection and survey utilizing our licensed pilot(s) and our DroneRad sensor systems.
MIFTEC is preparing for their next big hardware test regimen, using some of the world’s best modeling/simulation for testing and tuning the z-pinch generator for 10 to 14 neutrons yield per pulse and higher, allowing them to make the final tweaks to perfect their medical isotope generators to be manufactured by US Nuclear Corp.
MIFTI is advancing their work building fusion power generators to supply electricity to the North American electric power grid, as well as looking towards fusion propulsion drive for spacecraft.
Grapheton: At the beginning of 2020, we had the rare opportunity to buy 40% of an exciting neuro-science start-up: Grapheton (similar to Elon Musk’s Neuralink). We negotiated an investment utilizing UCLEstock, plus an earn-out, and in-kind services, so that we would be able to reduce the cash required at signing (which proved to be most helpful due to the proximity in time of the beginning outbreak of the pandemic). We are excited to announce that Grapheton, for the first time ever, has produced and demonstrated a high-density glassy carbon wire electrode. The next plan is to fabricate and test 256-channel narrow wire-like structures with glassy carbon electrodes. These will be similar to the high channel density probes of Neuralink, but with a material that will last decades.
- Grapheton has started a new collaboration with Aptima, a company that specializes in performance assessment technologies for teams and organizations. Grapheton’s biocompatible and durable electrode material for biochemical sensing offers an excellent platform for integrating the two best-in-class technologies with applications for a new generation of wearable sensors designed for rugged and extended use.
- Grapheton has also started a brand-new collaboration with a new partner for the development of neural probes targeting pain management.
- Grapheton is also partnering with the National Science Foundation Center for Neurotechnology, where they collaborate with top researchers and surgeons around the world to help develop tools that restore health and functionality through their patented two-way sensing and neural stimulation probes.
As patent holders for the carbon-based, bio-compatible probes and chips, we expect Grapheton to supply the markets for smart prostheses, industrial and military exoskeletons, embedded communication chips, and wearable stress and health sensors to track the health and readiness of US and perhaps NATO troops.
As we enter 2021, US Nuclear Corp.’s executive team is committed to its growth, both organically and through M&A. We focus on companies that provide cross-selling opportunities, a reduction in COGS, and/or more manufacturing power. We have completed extensive due diligence on four companies for possible acquisition, and pre-covid, we were set to acquire one of our targets. For this acquisition, US Nuclear needed more cash for the purchase, along with some extra working capital. We closed on a $500,000 convertible debenture in November (2019) from Yorkville Advisors. After the 6-month holding period, subject to rule 144, they began to liquidate their position over a six-month period. However, with the emergence of a global pandemic that shook the world by storm, constant downward pressure was placed on our stock from July until year-end. Yorkville is now fully converted out of their position and flat.
Due to the current state of the economy and of many businesses, we are currently reevaluating these target companies and others for possible acquisition. Although there is uncertainty regarding the future for many businesses, we are very confident about the essential need for our industry, and our goal is to complete 1-2 acquisitions this year.
Thank you to the US Nuclear Investor Family, for your loyalty and ongoing support. New family members are encouraged to join.
I hope you and all those near and dear to you had a wonderful Holiday Season and wish you all the very best for 2021 and beyond.
Very truly yours,
Chairman & CEO, US Nuclear Corp.
About US Nuclear Corp.
Originally founded as a spin-off of the Manhattan project in 1946, US Nuclear is a premier manufacturer of hazmat detection equipment, including UAV, mounted radiation, and chemical detection platforms. US Nuclear sales both domestically and internationally and customers include government and military agencies, homeland security, scientific and national laboratories, nuclear power plants, nuclear research facilities, universities, hospitals, and many more.
Safe Harbor Act
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.
Investors may find additional information regarding US Nuclear Corp. at the SEC website at http://www.sec.gov, or the company’s website at https://www.usnuclearcorp.com
US Nuclear Corp. (UCLE)
Robert I. Goldstein, President, CEO, and Chairman
Rachel Boulds, Chief Financial Officer
(818) 883 7043