ST. JOHN'S, NL--(Marketwired - September 01, 2015) - Kraken Sonar Inc. (TSX VENTURE: PNG) announced today it has filed its financial results for the second quarter ended June 30, 2015. Additional information concerning the Company, including its unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the quarter ended June 30, 2015, can be found at

CEO Comments
"While our quarterly results can be lumpy given the timing of new orders, we believe we have set the stage for a breakout next 12 months," stated Karl Kenny, CEO of Kraken. "We are proud of our ability to attract world-class sonar industry talent along with a growing list of Tier 1 customers and partners. This quarter saw the signing of our first distribution partnership with an established global marine technology company, and we are working diligently towards other key partnerships which we hope to execute in the near term." Mr. Kenny added: "Our pipeline of opportunities has expanded significantly as we have moved from an R&D company to a leading provider of SAS technology."

Business Highlights
Notable business developments and achievements during the quarter and up to the reporting date included the following:

  • Deepened base of world-class talent with the addition of Dr. Tom Tureaud and Gina Millar.
  • Appointed Sophic Capital as new investor relations and capital markets consultants.
  • Announced our new KATFISH (Kraken Active Tow FISH) product, an innovative sonar platform for military and commercial applications. Budgetary pricing for a complete turn-key system is expected to be in the range of US$1.5 million.
  • Execution of a multi-year, global distribution agreement in August with Tritech, a MOOG subsidiary, for our AquaTrak Correlation Velocity Log (CVL) product. In addition, we recently received our first purchase order under this partnership.
  • In August, announced US$325,000 contract with ECA Robotics to embed Kraken SAS technology into ECA's newest A18D autonomous underwater vehicle (AUV).
  • In August, for the third year in a row, Kraken was named to the MTR100 by Marine Technology Reporter. The MTR100 is a list of the 100 most influential companies in the international marine technology marketplace.
  • During the quarter Kraken shipped its MINSAS 120 system to a leading US Defense supplier. Subsequent to the quarter end, we received a follow on order with this customer. This is the 3rd order with this customer in the last two years and is indicative of the nature of our business. That is, while sales cycles are often long, once our industry leading technology wins approval from leading companies, we expect to win repeat business over multiple years.

Financial Highlights

  • Revenues for the 6 months ended June 30, 2015 were $1.1 million as compared to $1.3 million in the comparable year ago period. Excluding RTO listing expenses and non-cash share-based payments, the loss for the first 6 months of 2015 was $0.3 million versus income of $0.2 million in the comparable year ago period.
  • Kraken ended Q2 2015 with approximately $1.4 million in working capital, $0.9 million in cash, and was debt free. Cash declined approximately $0.4 million for the first six months of this fiscal year.
  • Trade receivables at the end of Q2 were approximately $0.6 million of which roughly 80% has been collected in July and August.
  • Assets at the end of Q2 include a loan receivable of $189,577, which is an amount borrowed by CEO Karl Kenny during the quarter. Mr. Kenny is the CEO and a related party to the Company. Mr. Kenny has signed a promissory note for the amount owed to the Company. The promissory note is unsecured, has a due date of March 31, 2016, bears interest at 5% per annum, and can be paid early at any time without penalty or premium. Prior to completion of the Loan, Mr. Kenny owned an aggregate 28,960,050 common shares of the Company representing approximately 40.7% of the issued capital of the Company and also held stock options to purchase 700,000 common shares of the Company.
  • Basic and diluted weighted average shares outstanding were 71 million.

Kraken Sonar Inc. (TSX VENTURE: PNG) is an industrial technology company, founded in 2012, that is dedicated to the production and sale of software-centric Synthetic Aperture Sonar (SAS) technology. The Company's products have been sold to leading defence contractors, commercial survey companies and research institutions for producing real-time, ultra high resolution imagery and bathymetry of the seabed. Marine Technology Reporter has three times named Kraken to their MTR100 -- a list of the 100 most influential companies in the international marine technology marketplace. For more information, please visit

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

For further information, please contact:

Greg Reid
Chief Financial Officer
(416) 818-9822

Sean Peasgood
Investor Relations
(416) 565-2805

Glenda Leyte
Marketing Manager
(709) 757-5757 extension 288