Nanotechnology has emerged as one of the most important constituents of the tech space, and Houston based C-Bond Systems Inc (OTCMKTS:CBNT) is one of the more interesting companies working on it. The company has its own C-Bond technology, which was developed in collaboration with Rice University and has been patented as well. C-Bond Systems’ technology has found significant use in important automotive as well as in structural applications.
C-Bond has also created a Transportation Solutions Group, which is involved in selling C-Bond NanoShield, and on the other hand, the Safety Solutions Group handles the sales of ballistic-resistant glass solutions, among other products.
Exclusive Distribution Agreement
However, there are other reasons as well why investors could keep a watchful eye on the C-Bond Systems stock. On Monday, the company made a major announcement with regards to an exclusive distribution agreement, and that resulted in a 39% jump in the C-Bond stock. By way of the agreement, C-Bond reached an agreement for distributing the EPA-registered disinfectant named MB 10 tablets, with Quip Laboratories Inc.
The product in question is meant to tackle the coronavirus, and hence, it is a significant development for C-Bond Systems. Now that it has managed to ink the exclusive distribution agreement, C-Bond will distribute the product through its different sales verticals.
It should be noted that the MB-10 tablets have been proven to be effective as a disinfectant for a wide range of industries, and now that the economy is slowly opening up, the demand for the product could be quite high. C-Bond already boasts of a wide range of clients, and it is hoped that it is going to sell the disinfectant tablets to those clients.
The tablets in question are a hospital disinfectant and are effective against a plethora of viruses as well as bacteria. It can be applied to a wide range of surfaces, starting from glass and plastics to fiberglass and metals. Moreover, it does not leave behind an odor either, and that is possibly another important unique selling point for the disinfectant. The Chief Executive Officer and Chairman of C-Bond Systems, Scott R. Silverman, stated that the product is going to ‘align’ with the company’s current base of customers.
In the fiscal first quarter, the company generated revenues of $61,000, which reflected a significant drop from the $87,000 it had generated in the prior-year period. The drop in revenues was primarily due to the economic downturn brought about by the coronavirus pandemic and the associated lockdowns.
However, it is important to point out that the company’s operating expenses went down from $2.3 million in the prior-year period to $942 thousand in the first quarter. That reflects a significant improvement. Net losses were also reduced to $1.5 million from $2.4 million in the prior-year period.
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