CLEVELAND, Aug. 19, 2008 (GLOBE NEWSWIRE) -- HydroGen Corporation (Nasdaq:HYDG), a development stage company that designs and manufactures multi-megawatt air-cooled phosphoric acid fuel cell (PAFC) systems, today announced its financial results for the quarter ended June 30, 2008.
2008 Second Quarter Results
For the quarter ended June 30, 2008, HydroGen's net loss was $4.0 million, or $(0.31) per basic and diluted share, based on the weighted average of 12,769,904 common shares outstanding. This compares with a net loss of $4.1 million, or $(0.32) per basic and diluted share for the quarter ended June 30, 2007, based on the weighted average of 12,769,904 common shares outstanding.
The slight decrease in net loss for the quarter was due primarily to an 11% decrease in research and development expenses, which amounted to $2.6 million in the second quarter 2008 compared to $2.9 million in the second quarter 2007.
The Company's cash and cash equivalents as of June 30, 2008, were $700,000, as compared to a balance of $8.1 million as of December 31, 2007. Spending on research and development for the fiscal 2008 second quarter amounted to $2.6 million, an 11% reduction over the second quarter of 2007. The Company is seeking additional capital to fund its operations. If the Company is unable to raise sufficient capital, liquidity problems will cause the Company to discontinue operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other such actions that could adversely affect future operations. The Company is in discussions with its advisors and potential investors, and is in late-stage negotiations for short-term financing that will fund operations to enable the Company to seek longer-term financing or a sale of the Company. While there are no assurances that the Company will be able to conclude any financing, management is focused on concluding this financing in the timeframe necessary to continue operations. If the Company is unable to obtain the short-term financing, it will be forced to discontinue operations and liquidate the assets of the Company.
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 as well as applications that will utilize natural gas and other gaseous hydrocarbon fuel sources.
The HydroGen Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3977
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
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31,
2008 2007
------------ ------------
(unaudited)
ASSETS
------
CURRENT ASSETS
--------------
Cash and cash equivalents $ 683,905 $ 8,065,758
Accounts receivable 25,000 165,628
Other current assets 871,573 1,837,657
------------ ------------
TOTAL CURRENT ASSETS 1,580,478 10,069,043
Property and equipment, net 4,955,207 4,799,588
Other assets 61,789 66,433
------------ ------------
TOTAL ASSETS $ 6,597,474 $ 14,935,064
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
-------------------
Accounts payable and accrued expenses $ 3,288,947 $ 3,094,511
Capital lease obligations, current
portion 125,614 102,804
------------ ------------
TOTAL CURRENT LIABILITIES 3,414,561 3,197,315
LONG-TERM LIABILITIES
---------------------
Capital lease obligations, net of
current portion 69,935 74,813
------------ ------------
TOTAL LIABILITIES $ 3,484,496 $ 3,272,128
============ ============
Commitments
SHAREHOLDERS' EQUITY
--------------------
Common stock, par value $0.001,
authorized 65,000,000 shares, 12,770 12,770
12,769,904 issued and outstanding at
June 30, 2008 and December 31, 2007.
Additional paid-in capital 43,825,445 43,180,779
Deficit accumulated during the
development stage (40,725,237) (31,530,613)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 3,112,978 11,662,936
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 6,597,474 $ 14,935,064
============ ============
HYDROGEN CORPORATION AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Grant Revenue $ 57,700 $ 380,619 $ 377,042 $ 816,684
----------- ----------- ----------- -----------
Research and
development
expenses 2,599,000 2,929,000 6,151,349 5,219,489
Costs and
expenses
(including
stock-based
compensation
expense of
$285,029 and
$155,679, for
the three
month periods
ended June
30, 2008 and
June 30,
2007, and
$644,666 and
$275,732 for
the six month
periods ended
June 30, 2008
and June 30,
2007.) 1,854,926 1,774,251 3,882,095 3,330,495
----------- ----------- ----------- -----------
LOSS FROM
OPERATIONS (4,396,226) (4,322,632) (9,656,402) (7,733,300)
----------- ----------- ----------- -----------
Interest and
other income 430,451 234,055 481,904 503,048
Interest and
other
financing
charges (12,302) (5,434) (20,126) (9,326)
Charge for
repricing
conversion
price of
convertible
debt -- -- -- --
----------- ----------- ----------- -----------
NET LOSS $(3,978,077) $(4,094,011) $(9,194,624) $(7,239,578)
=========== =========== =========== ===========
Weighted
average
common
shares
outstanding
(basic and
diluted) 12,769,904 12,769,904 12,769,904 12,769,904
----------- ----------- ----------- -----------
Net loss per
share
(basic and
diluted) $ (0.31) $ (0.32) $ (0.72) $ (0.57)
----------- ----------- ----------- -----------
NOVEMBER 11,
2001
(INCEPTION)
THROUGH
June 30, 2008
-------------
Grant Revenue $ 2,569,661
-------------
Research and development expenses 21,165,509
Costs and expenses (including stock-based
compensation expense of $285,029 and
$155,679, for the three month periods ended
June 30, 2008 and June 30, 2007, and
$644,666 and $275,732 for the six month
periods ended June 30, 2008 and June
30, 2007.) 22,824,439
-------------
LOSS FROM OPERATIONS (41,420,287)
-------------
Interest and other income 2,537,254
Interest and other financing charges (818,393)
Charge for repricing conversion price of
convertible debt (875,000)
-------------
NET LOSS $ (40,576,426)
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