CLEVELAND, July 31, 2007 (PRIME NEWSWIRE) -- HydroGen Corporation (Nasdaq:HYDG), a designer and manufacturer of multi-megawatt air-cooled phosphoric acid fuel cell (PAFC) systems, today announced its financial results for the quarter ended June 30, 2007. HydroGen is currently in the development stage and is expected to remain so for at least the next several quarters.
Recent Operational Highlights
-- HydroGen Corporation announced the mechanical completion and
initiation of pre-commissioning activities of the Company's
full-scale 400 kW commercial demonstration PAFC power plant at
ASHTA Chemicals, Inc.'s chlor-alkali plant in Ashtabula, Ohio.
This commercial demonstration PAFC power plant will utilize
by-product hydrogen gas produced by the chlor-alkali plant to
generate electric power, heat, and water for the chlor-alkali
plant's use.
-- The Company also announced the completion and successful testing
of a newly-manufactured 2.5 kW stack. While combinations of
"vintage" Westinghouse and HydroGen-manufactured components have
previously been tested in the Company's 2.5 kW test plant, this
HydroGen-manufactured stack fully validates the Company's
production processes and methods. The stack started up and is
performing to its start-of-life specifications, achieving a major
milestone in the validation of the Company's manufacturing
capabilities as it produces the first complete 400 kW module for
demonstration at the ASHTA commercial demonstration power plant.
-- HydroGen named Mr. Christopher J. Garofalo General Counsel, a new
position at the Company. Prior to joining HydroGen, Mr. Garofalo,
35, was an Associate with Nixon Peabody LLP in Boston from
November 2006 to May 2007 where he worked primarily in the
Securities and Public Company Groups. From September 2001 to
October 2006, Mr. Garofalo was an Associate with Ropes & Gray LLP
in Boston where he practiced general corporate law. Prior to
joining Ropes & Gray LLP, he clerked for the Honorable Diarmuid
F. O'Scannlain on the 9th Circuit Federal Court of Appeals. Mr.
Garofalo received his J.D., magna cum laude, in 2000 from NYU
where he was ranked among the top ten students in his graduating
class and received his A.B., cum laude, in 1994 from Harvard.
"During the second quarter, we made significant and measurable progress toward our goal of achieving commercialization. Of note was the mechanical completion and initiation of pre-commissioning activities at our full-scale 400 kW commercial demonstration PAFC power plant at ASHTA Chemicals, Inc., which provides us with a showcase for our technology in an industrial setting representing a key target market segment for the Company. Also during the second quarter, we increased our R&D efforts, accelerated and expanded ramp-up activities, power plant design, among other initiatives particularly in the marketing and sales areas," said Dr. Leo Blomen, HydroGen Chairman and CEO.
Joshua Tosteson, President of HydroGen Corporation, added: "With each passing day, manufacturers are coming to recognize that fuel cell systems present an efficient, practical and viable solution for on-site distributed electric power generation. Our cost-effective, environmentally safe technology provides the solution for companies looking to implement an electric power generation system without sacrificing efficiency, availability and performance. In addition to a growing level of interest and awareness of fuel cell technology as an alternative power supply, the market is benefiting from increasingly stringent environmental standards as well as incentives at both the federal and state levels to support the adoption of clean technology. For the balance of the year, we will continue to execute our strategic plan which will lead to market introduction."
2007 Second Quarter Results
For the quarter ended June 30, 2007, HydroGen's net loss was $4.1 million, or $(0.32) per basic and diluted share, based on the weighted average of 12,769,904 common shares outstanding. This compares with a net loss of $1.5 million, or $(0.14) per basic and diluted share for the quarter ended June 30, 2006, based on the weighted average of 11,013,805 common shares outstanding.
HydroGen's balance of cash, cash equivalents and short-term investments at June 30, 2007, totaled $16.1 million, as compared to a balance totaling $24.1 million at December 31, 2006. Spending on research and development for fiscal 2007 second quarter amounted to $3.0 million, increasing more than 262% over the second quarter of 2006.
About HydroGen Corporation
HydroGen Corporation is a manufacturer of multi-megawatt fuel cell systems utilizing its proprietary 400 kW phosphoric acid fuel cell (PAFC) technology. HydroGen's fuel cell technology, originally developed by Westinghouse Corporation, offers a multi-megawatt, zero-emission power generation product that supports the growth of industrial distributed energy. The Company targets market applications where hydrogen is currently available and other drivers favoring the adoption of fuel cells are present.
Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding HydroGen's anticipated economically competitive fuel cell systems. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for HydroGen's products, HydroGen's ability to maintain strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of HydroGen's liquidity and financial strength to support its growth, and other information that may be detailed from time to time in HydroGen's filings with the United States Securities and Exchange Commission. HydroGen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
HYDROGEN CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31,
2007 2006
------------ ------------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 5,889,554 $ 14,170,530
Short-term investments 10,172,045 9,889,603
Accounts receivable 380,619 262,408
Other current assets 1,736,083 1,289,995
------------ ------------
TOTAL CURRENT ASSETS 18,178,301 25,612,536
Property and equipment, net 4,227,606 3,469,533
Other assets 66,433 57,017
------------ ------------
TOTAL ASSETS $ 22,472,340 $ 29,139,086
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued expenses $ 1,923,246 $ 1,659,441
Capital lease obligations,
current portion 98,019 72,295
TOTAL CURRENT LIABILITIES 2,021,265 1,731,736
LONG-TERM LIABILITIES
Capital lease obligations, net
of current portion 127,344 119,773
TOTAL LIABILITIES $ 2,148,609 $ 1,851,509
============ ============
Common stock, $0.001 per share
par value, authorized 65,000,000
shares, 12,769,904 issued and
outstanding at June 30, 2007
and December 31, 2006. 12,770 12,770
Additional paid-in capital 42,871,547 42,595,815
Deficit accumulated during the
development stage (22,560,586) (15,321,008)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 20,323,731 27,287,577
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 22,472,340 $ 29,139,086
============ ============
HYDROGEN CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NOVEMBER 11,
FOR THE THREE FOR THE SIX 2001
MONTHS ENDED MONTHS ENDED (INCEPTION)
JUNE 30, JUNE 30, THROUGH
---------------------- ---------------------- JUNE 30,
2007 2006 2007 2006 2007
---------- ---------- ---------- ---------- ----------
Demonstration
Grant
Revenue $ 380,619 $ 79,021 $ 816,684 $ 128,454 $1,564,107
---------- ---------- ---------- ---------- ----------
Costs and
expenses
(including
stock-based
compensa-
tion
expense of
$155,679
and
$105,244,
for the
three month
periods
ended
June 30,
2007 and
June 30,
2006, and
$275,732
and
$196,283
for the
six month
periods
ended
June 30,
2007 and
June 30,
2006.) 4,703,251 1,800,266 8,549,984 3,206,444 24,068,138
---------- ---------- ---------- ---------- ----------
LOSS FROM
OPERA-
TIONS (4,322,632) (1,721,245) (7,733,300) (3,077,990)(22,504,031)
---------- ---------- ---------- ---------- ----------
Interest
and other
income 234,055 266,132 503,048 360,750 1,747,067
Interest
and other
financing
charges (5,434) (84,758) (9,326) (84,758) (779,811)
Charge for
repricing
conversion
price of
convert-
ible
debt -- -- -- -- (875,000)
---------- ---------- ---------- ---------- ----------
NET LOSS (4,094,011) (1,539,871) (7,239,578) (2,801,998)(22,411,775)
========== ========== ========== ========== ==========
Weighted
average
common
shares
outstand-
ing
(basic
and
diluted) 12,769,904 11,013,805 12,769,904 9,323,744
---------- ---------- ---------- ----------
Net loss
per
share
(basic
and
diluted) (0.32) (0.14) (0.57) (0.30)
---------- ---------- ---------- ----------