HydroGen Corporation (OTCBB: HYDG), a development stage
company that manufactures multi-megawatt air-cooled phosphoric acid
fuel cell (PAFC) systems through its wholly-owned subsidiary HydroGen
LLC, announced its financial results for the third quarter and nine
months ended September 30, 2005.
HydroGen is in the development stage and is expected to remain so for at least the next several quarters. HydroGen's business plan calls for it to design, manufacture and sell 6-30MW turn-key power plants, based on a standardized 2MW power island consisting of five of HydroGen's 400kW modules. Additionally, HydroGen plans to attempt to generate recurring revenues from the sale of operations and maintenance services, and ongoing lease revenues for the 400kW modules, which must be replaced after approximately 40,000 hours of operation.
Third Quarter Operational Highlights
-- HydroGen LLC completed a $13.5 million equity financing and reverse merger transaction with Chiste Corporation in July, 2005; HydroGen Corporation sold common stock for gross proceeds of $600,000 in a private placement to two institutional investors in September 2005.
-- Shareholders approved the name change to HydroGen Corporation from Chiste Corporation and a 1-for-25 reverse split of the common stock effective August 19, 2005.
-- The State of Ohio Department of Development awarded HydroGen Corporation a $1,250,000 grant on a reimbursement basis to construct a 400 kW commercial demonstration PAFC power plant.
-- The U.S. Department of Energy granted exclusive license to HydroGen Corporation for four patents related to air-cooled PAFC technology.
"During the past several months, we have built a strong foundation from which to launch our strategic growth plan," said Dr. Leo Blomen, Chief Executive Officer of HydroGen Corporation. "We became a public company, successfully raised more than $14 million and obtained a grant from the Ohio Department of Development, providing us sufficient capital to execute the current phase of our business plan. To support our commercialization and marketing efforts, we have hired key technical personnel and established a new production facility in Versailles, Pennsylvania. With the achievement of these important milestones, HydroGen is now well positioned to capture the significant market opportunities that we have identified, and we are hard at work in cultivating these."
Joshua Tosteson, President of HydroGen Corporation, added: "We have completed several important steps along our path to manufacturing and installing multi-megawatt power plants based on our simple and inexpensive 400 kW air-cooled phosphoric acid fuel cells. Over the next few quarters we will manufacture, deploy and demonstrate the company's core product in partnership with the Ohio Fuel Cell Initiative and commercial partners to be announced. Additionally, we will begin preparations to expand our production capacity, with a target of 25MW/year in 2008, and will move forward in our commercial negotiations with our active pipeline of potential customers. These activities will move us significantly down the path toward full commercialization of our technology, in accordance with our business plan."
Third Quarter Financial Results
For the quarter ended September 30, 2005, HydroGen's net loss was $1.99 million, or $(0.68) per diluted share, based on the weighted average of 2,910,581 common shares outstanding. This compares with a net loss of $0.53 million for the quarter ended September 30, 2004 when the company was privately held. For the nine months ended September 30, 2005, HydroGen's net loss was $4.52 million, or $(4.61) per share, based on the weighted average of 980,855 common shares outstanding. This compares to a net loss of $1.03 million during the first nine months of 2004, before the Company's recapitalization on July 7, 2005. Results for the three and nine months ended September 30, 2005 include a non-cash charge of $875,000, which relates to the Company lowering the conversion price of its convertible notes.
HydroGen's cash, cash equivalents and short-term investments at September 30, 2005 totaled $11.15 million, as compared to a $1.23 million cash balance at December 31, 2004. Spending on research and development for the three months ended September 30, 2005 grew to $0.35 million, an increase of 333% over the same period in 2004. The company used $2.74 million net cash in operating activities for the nine months ended September 30, 2005.
About HydroGen Corporation and HydroGen, LLC
HydroGen Corporation, through its wholly-owned subsidiary, HydroGen, LLC, is a developer of multi-megawatt fuel cell systems utilizing its proprietary 400-kilowatt phosphoric acid fuel (PAFC) cell technology. Utilizing fuel cell technology originally developed by Westinghouse Corporation, 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. -0- HYDROGEN CORPORATION AND SUBSIDIARY (formerly HydroGen, L.L.C.) BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2005 2004 ------------ ----------- (unaudited) ASSETS ------ CURRENT ASSETS -------------- Cash and cash equivalents $ 8,103,052 $ 1,230,056 Short-term investments 3,043,932 - Other current assets 152,484 2,515 ------------- ------------ TOTAL CURRENT ASSETS $ 11,299,468 $ 1,232,571 Property and equipment, net 227,227 4,415 Other assets 14,373 - ------------- ------------ TOTAL ASSETS $ 11,541,068 $ 1,236,986 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) ------------------------------------ CURRENT LIABILITIES ------------------- Accounts payable and accrued expenses $ 242,432 $ 289,974 Note payable, related parties - 617,360 Convertible notes payable, net of discount of $387,839 at December 31, 2004 - 1,242,161 ------------- ------------ TOTAL CURRENT LIABILITIES 242,432 2,149,495 ------------- ------------ Common stock, par value $0.001, authorized 65,000,000 shares, 7,612,940 issued and outstanding $ 7,613 - Series B convertible preferred stock, par $0.001, authorized 10,000,000 shares, 433,566 issued (stated value and liquidation preference of $34.62 per share) - 434 Additional paid-in capital 17,959,356 1,094,758 Accumulated deficit (6,668,333) (2,007,700) ------------- ------------ TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY) 11,298,636 (912,508) ------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) $ 11,541,068 $ 1,236,986 ============= ============ HYDROGEN CORPORATION AND SUBSIDIARY (formerly HydroGen, L.L.C.) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30 ----------------------- ------------------------- 2005 2004 2005 2004 ----------- --------- ----------- ----------- REVENUES $ - $ - $ - $ 767 -------------------- ----------- --------- ----------- ----------- COSTS AND EXPENSES ------------------ Cost of revenue - - - 443 General and administrative expenses 1,194,077 519,675 3,177,272 1,015,920 ----------- --------- ----------- ----------- TOTAL COSTS AND EXPENSES 1,194,077 519,675 3,177,272 1,016,363 ----------- --------- ----------- ----------- LOSS FROM OPERATIONS (1,194,077) (519,675) (3,177,272) (1,015,596) ----------- --------- ----------- ----------- Interest Income 84,118 - 93,663 - Interest Expense (2,991) (6,926) (564,112) (15,959) Charge for repricing on conversion of convertible debt (875,000) - (875,000) - ----------- --------- ----------- ----------- NET LOSS $(1,987,950) $(526,601) $(4,522,721) $(1,031,555) =========== ========= =========== =========== Weighted average common shares outstanding (basic and diluted) 2,910,581 - 980,855 - ----------- --------- ----------- ----------- Net loss per share (basic and diluted) $ (0.68) - $ (4.61) - ----------- --------- ----------- ----------- NOVEMBER 11, 2001 (INCEPTION) THROUGH SEPTEMBER 30, 2005 ------------------------ REVENUES $ 96,660 -------- --------------------- COSTS AND EXPENSES ------------------ Cost of revenue 1,780 General and administrative expenses 5,169,731 --------------------- TOTAL COSTS AND EXPENSES 5,171,511 --------------------- LOSS FROM OPERATIONS (5,074,851) --------------------- Interest Income 94,827 Interest Expense (675,397) Charge for repricing on conversion of convertible debt (875,000) --------------------- NET LOSS $ (6,530,421) ===================== Weighted average common shares outstanding (basic and diluted) - --------------------- Net loss per share (basic and diluted) - ---------------------
HydroGen is in the development stage and is expected to remain so for at least the next several quarters. HydroGen's business plan calls for it to design, manufacture and sell 6-30MW turn-key power plants, based on a standardized 2MW power island consisting of five of HydroGen's 400kW modules. Additionally, HydroGen plans to attempt to generate recurring revenues from the sale of operations and maintenance services, and ongoing lease revenues for the 400kW modules, which must be replaced after approximately 40,000 hours of operation.
Third Quarter Operational Highlights
-- HydroGen LLC completed a $13.5 million equity financing and reverse merger transaction with Chiste Corporation in July, 2005; HydroGen Corporation sold common stock for gross proceeds of $600,000 in a private placement to two institutional investors in September 2005.
-- Shareholders approved the name change to HydroGen Corporation from Chiste Corporation and a 1-for-25 reverse split of the common stock effective August 19, 2005.
-- The State of Ohio Department of Development awarded HydroGen Corporation a $1,250,000 grant on a reimbursement basis to construct a 400 kW commercial demonstration PAFC power plant.
-- The U.S. Department of Energy granted exclusive license to HydroGen Corporation for four patents related to air-cooled PAFC technology.
"During the past several months, we have built a strong foundation from which to launch our strategic growth plan," said Dr. Leo Blomen, Chief Executive Officer of HydroGen Corporation. "We became a public company, successfully raised more than $14 million and obtained a grant from the Ohio Department of Development, providing us sufficient capital to execute the current phase of our business plan. To support our commercialization and marketing efforts, we have hired key technical personnel and established a new production facility in Versailles, Pennsylvania. With the achievement of these important milestones, HydroGen is now well positioned to capture the significant market opportunities that we have identified, and we are hard at work in cultivating these."
Joshua Tosteson, President of HydroGen Corporation, added: "We have completed several important steps along our path to manufacturing and installing multi-megawatt power plants based on our simple and inexpensive 400 kW air-cooled phosphoric acid fuel cells. Over the next few quarters we will manufacture, deploy and demonstrate the company's core product in partnership with the Ohio Fuel Cell Initiative and commercial partners to be announced. Additionally, we will begin preparations to expand our production capacity, with a target of 25MW/year in 2008, and will move forward in our commercial negotiations with our active pipeline of potential customers. These activities will move us significantly down the path toward full commercialization of our technology, in accordance with our business plan."
Third Quarter Financial Results
For the quarter ended September 30, 2005, HydroGen's net loss was $1.99 million, or $(0.68) per diluted share, based on the weighted average of 2,910,581 common shares outstanding. This compares with a net loss of $0.53 million for the quarter ended September 30, 2004 when the company was privately held. For the nine months ended September 30, 2005, HydroGen's net loss was $4.52 million, or $(4.61) per share, based on the weighted average of 980,855 common shares outstanding. This compares to a net loss of $1.03 million during the first nine months of 2004, before the Company's recapitalization on July 7, 2005. Results for the three and nine months ended September 30, 2005 include a non-cash charge of $875,000, which relates to the Company lowering the conversion price of its convertible notes.
HydroGen's cash, cash equivalents and short-term investments at September 30, 2005 totaled $11.15 million, as compared to a $1.23 million cash balance at December 31, 2004. Spending on research and development for the three months ended September 30, 2005 grew to $0.35 million, an increase of 333% over the same period in 2004. The company used $2.74 million net cash in operating activities for the nine months ended September 30, 2005.
About HydroGen Corporation and HydroGen, LLC
HydroGen Corporation, through its wholly-owned subsidiary, HydroGen, LLC, is a developer of multi-megawatt fuel cell systems utilizing its proprietary 400-kilowatt phosphoric acid fuel (PAFC) cell technology. Utilizing fuel cell technology originally developed by Westinghouse Corporation, 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. -0- HYDROGEN CORPORATION AND SUBSIDIARY (formerly HydroGen, L.L.C.) BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2005 2004 ------------ ----------- (unaudited) ASSETS ------ CURRENT ASSETS -------------- Cash and cash equivalents $ 8,103,052 $ 1,230,056 Short-term investments 3,043,932 - Other current assets 152,484 2,515 ------------- ------------ TOTAL CURRENT ASSETS $ 11,299,468 $ 1,232,571 Property and equipment, net 227,227 4,415 Other assets 14,373 - ------------- ------------ TOTAL ASSETS $ 11,541,068 $ 1,236,986 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) ------------------------------------ CURRENT LIABILITIES ------------------- Accounts payable and accrued expenses $ 242,432 $ 289,974 Note payable, related parties - 617,360 Convertible notes payable, net of discount of $387,839 at December 31, 2004 - 1,242,161 ------------- ------------ TOTAL CURRENT LIABILITIES 242,432 2,149,495 ------------- ------------ Common stock, par value $0.001, authorized 65,000,000 shares, 7,612,940 issued and outstanding $ 7,613 - Series B convertible preferred stock, par $0.001, authorized 10,000,000 shares, 433,566 issued (stated value and liquidation preference of $34.62 per share) - 434 Additional paid-in capital 17,959,356 1,094,758 Accumulated deficit (6,668,333) (2,007,700) ------------- ------------ TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY) 11,298,636 (912,508) ------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) $ 11,541,068 $ 1,236,986 ============= ============ HYDROGEN CORPORATION AND SUBSIDIARY (formerly HydroGen, L.L.C.) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30 ----------------------- ------------------------- 2005 2004 2005 2004 ----------- --------- ----------- ----------- REVENUES $ - $ - $ - $ 767 -------------------- ----------- --------- ----------- ----------- COSTS AND EXPENSES ------------------ Cost of revenue - - - 443 General and administrative expenses 1,194,077 519,675 3,177,272 1,015,920 ----------- --------- ----------- ----------- TOTAL COSTS AND EXPENSES 1,194,077 519,675 3,177,272 1,016,363 ----------- --------- ----------- ----------- LOSS FROM OPERATIONS (1,194,077) (519,675) (3,177,272) (1,015,596) ----------- --------- ----------- ----------- Interest Income 84,118 - 93,663 - Interest Expense (2,991) (6,926) (564,112) (15,959) Charge for repricing on conversion of convertible debt (875,000) - (875,000) - ----------- --------- ----------- ----------- NET LOSS $(1,987,950) $(526,601) $(4,522,721) $(1,031,555) =========== ========= =========== =========== Weighted average common shares outstanding (basic and diluted) 2,910,581 - 980,855 - ----------- --------- ----------- ----------- Net loss per share (basic and diluted) $ (0.68) - $ (4.61) - ----------- --------- ----------- ----------- NOVEMBER 11, 2001 (INCEPTION) THROUGH SEPTEMBER 30, 2005 ------------------------ REVENUES $ 96,660 -------- --------------------- COSTS AND EXPENSES ------------------ Cost of revenue 1,780 General and administrative expenses 5,169,731 --------------------- TOTAL COSTS AND EXPENSES 5,171,511 --------------------- LOSS FROM OPERATIONS (5,074,851) --------------------- Interest Income 94,827 Interest Expense (675,397) Charge for repricing on conversion of convertible debt (875,000) --------------------- NET LOSS $ (6,530,421) ===================== Weighted average common shares outstanding (basic and diluted) - --------------------- Net loss per share (basic and diluted) - ---------------------
© 2005 Business Wire
