/C O R R E C T I O N from source -- CATCH THE WIND/

In c2463 transmitted at 19:38e today, two financial tables "Condensed Consolidated Interim Balance Sheets" and "Condensed Consolidated Interim Statements of Loss and Comprehensive Loss" were missing from the end of the release. Corrected copy with tables follows:

CATCH THE WIND REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS

- Quarter highlighted by technology validation and significant cost reductions-

MANASSAS, VA, June 29, 2011 /CNW/ - Catch the Wind Ltd. (TSXV: CTW), providers of laser-based wind sensor products and technology, today reported its financial results for the three-month period ended March 31, 2011.  All figures are in U.S. dollars unless otherwise stated.

Beginning with the first quarter of 2011, Catch the Wind reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.

"The first quarter of 2011 was an important milestone for the Company," said Phil Rogers, President and CEO of Catch the Wind.  "Our announcement in March reporting results collected over 11 months of field data and customer evaluation programs validated our long-stated belief that the Vindicator is capable of significantly increasing a turbine's energy output by simply better aligning it with the wind.   We also announced a reduction in the production cost of the Vindicator by approximately 50 percent.  We believe that the combined effect of these achievements has contributed to increased industry attention and accelerated customer orders in the current quarter."

Selected Q1 2011 Financial and Operational Highlights

  • Announced that the Company's exclusive licensing partner for maritime applications, AXYS Technologies, sold  two units of the WindSentinel™ buoy, a custom AXYS marine floating platform bundled with  a Vindicator® LWS unit.
  • Presented a summary report of data collected from its Vindicator® LWS field trials and customer evaluation programs at the European Wind Energy Association 2011 Annual Event in Brussels, Belgium. Specific energy output data collected over a span of 11 months indicated that the Vindicator® LWS consistently generated 14% increased energy output as compared to periods when the legacy wind direction inputs were utilized, with optimization experiments showing increased energy output in excess of 20%.
  • Announced that it had reduced the production costs of the Vindicator® LWS by approximately 50% through a new product configuration, which also significantly improves ease of installation and serviceability.

Highlights Subsequent to Quarter-end

  • Announced the sale of 20 Vindicator® LWS units to TransAlta Corporation, Canada's largest independent renewable energy provider, with an option to purchase additional units. The sale was the largest to date for wind turbine control with the installation expected to begin in the third quarter 2011 on a wind farm to be designated by TransAlta.
  • Announced the sale of six Vindicator® LWS units to affiliated entities of Invenergy Wind LLC, a developer, owner and operator of large-scale renewable and other clean energy generation facilities in North America and Europe.  The installation of the Vindicator® LWS units will be in groups of two located at three different Invenergy wind farm sites in the continental United States.
  • Announced the sale of six Vindicator® LWS units to Boralex (TSX: BLX), a power producer with an installed capacity of 700 MW in Canada, the Northeastern United States and France with the option to purchase hundreds of additional units over a set period.   Installation is expected to take place on six Boralex wind turbines located on different sites in North America and Europe, beginning in the third quarter of 2011.
  • Announced the entry into an exclusive worldwide licensing agreement with AXYS Technologies to integrate the Vindicator® LWS into an AXYS system for land-based wind resource assessment applications.  Under the terms of the five-year licensing agreement, AXYS has agreed to purchase a minimum of 58 high-precision Vindicator® LWS units from the Company over the next five years.
  • Announced the sale of a Vindicator® LWS unit to Kruger Energy Port Alma, a 44-turbine, 101.2 MW wind farm in Ontario, Canada to be integrated to a SWT - 2.3 MW turbine, expanding the number of turbine makes and models on which Catch the Wind has installed turbine yaw control systems.
  • Announced the sale of a Vindicator® LWS unit to the Illinois Institute of Technology (IIT) to be installed on its GE 1.5 MW Test Turbine, operated by an affiliate of Invenergy LLC.
  • Appointed Susan Nickey and Dr. Jo Major, Jr. as independent directors of the Company.

Financial Performance
Catch the Wind recognized revenue of $390,000 for the quarter ended March 31, 2011. Catch the Wind generates revenue from the sale and rental of its laser wind sensing products.  Revenue for the comparable period in 2010 was nil because Catch the Wind did not have any product sales.  Further, because it operated as a development stage company through mid June 2010, cash receipts from product sales, had there been any, would have been netted against capitalized development costs.

Operating expenses for Q1 2011 were $7.9 million, up from $3.2 million for the corresponding period of last year.  The increase in expenses is largely due to non-cash charges of $2.7 million and $0.3 million related to the change in fair value of the Company's warrant liability and amortization of capitalized Vindicator® LWS development costs, respectively.  Cost of sales of $0.8 million and an increase in general and administrative and sales and marketing expenses also contributed to the operating expense variance as the Company accelerated its commercialization efforts.  Finally, fees paid for engineering services related to the development of the Company's products, or R&D, while comparable on a period-to-period basis, are reflected differently in the comparative financial statements due to the Company's transition from a development stage company to a commercial enterprise in June 2010.  Such R&D fees were capitalized in Q1 of 2010, whereas they were recorded as a current period expense in Q1 2011.  As a result, R&D expense for Q1 2011 was $1.5 million as compared to $0.1 million for Q1 2010.

Catch the Wind recorded a net loss for Q1 2011 of $7.5 million or $0.09 per share.  These compare to a net loss of $3.2 million, or $0.06 per share, for the same period of 2010.

At March 31, 2011, Catch the Wind had working capital of $2.7 million, including cash and cash equivalents of $3.7 million, compared to working capital of $6.9 million and cash and cash equivalents of $6.8 million for December 31, 2010.

Catch the Wind has filed its financial statements for the three months ended March 31, 2011 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities.  Catch the Wind's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.catchthewindinc.com.

Conference Call
Catch the Wind will host a conference call to discuss its Q1 2011 financial results on Thursday, June 30, 2011 at 10:00 a.m. EST.

To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191.  Please connect approximately 15 minutes prior to the beginning of the call to ensure participation.  A question and answer session for analysts and institutional investors will follow management's presentation.

A live audio webcast of the conference call will be available at www.catchthewindinc.com . Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web site for 30 days.

A taped rebroadcast will be available to listeners until 12 a.m. ET on Thursday, July 7, 2011. To access the rebroadcast, please dial 416-849-0833 or 1-800-642-1687 and enter passcode 76169996, followed by the number sign.

About Catch the Wind Ltd.
Catch the Wind Ltd. is a high-growth technology company headquartered in Manassas, Virginia. The company was founded in 2008 to develop and manufacture the Vindicator® laser wind sensor.

Catch the Wind serves the commercial market sector for laser based wind sensor systems, recognized as the "gold standard" in wind measurement. The company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, visit www.catchthewindinc.com.

Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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

Catch the Wind Ltd.
Condensed Consolidated Interim Balance Sheets
(Unaudited)

           March 31,     December 31,    January 1,  
          2011   2010   2010  
                     
(Expressed in United States dollars)    $     $     $   
                     
Assets                
                     
Current assets:              
  Cash and cash equivalents   3,734,088   6,746,467   10,616,065  
  Accounts receivable   173,342   202,157   119,627  
  Inventory    2,357,229   2,605,224   1,667,997  
  Prepaid expenses and other assets   183,553   228,262   107,719  
          6,448,212   9,782,110   12,511,408  
Non-current assets:              
  Property and equipment   5,635,417   5,794,514   6,466,248  
  Intangible assets (Note 8)   5,651,864   5,990,404   5,923,105  
  Other assets   81,109   81,109   77,045  
          11,368,390   11,866,027   12,466,398  
                     
Total assets   17,816,602   21,648,137   24,977,806  
                     
Liabilities and Equity              
                     
Current liabilities:              
  Accounts payable and other liabilities   2,550,745   2,043,448   1,339,905  
  Warranty provision   37,500   31,250   -  
  Due to related party   658,717   74,388   355,685  
  Obligations under finance leases    163,197   188,064   166,206  
  Borrowings   181,749   178,530   166,213  
  Deferred revenue and customer deposits   131,000   333,500   360,000  
          3,722,908   2,849,180   2,388,009  
Non-current liabilities:              
  Obligations under finance leases   18,834   41,467   212,934  
  Warrant liability   3,256,445   596,117      
  Borrowings    4,168,865   4,215,527   4,394,057  
          7,444,144   4,853,111   4,606,991  
                     
Total liabilities   11,167,052   7,702,291   6,995,000  
                     
Equity                
Equity attributable to owners of the Company:              
  Capital stock    8,049   8,049   5,488  
  Contributed surplus    42,865,035   42,739,096   31,266,174  
  Deficit   (36,339,852)   (28,930,873)   (13,481,028)  
Non-controlling interest   116,318   129,574   192,172  
Total equity   6,649,550   13,945,846   17,982,806  
Total liabilities and equity   17,816,602   21,648,137   24,977,806  
                     

 

Catch the Wind Ltd.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Unaudited)

           Three months ended       Three months ended       
           March 31,       March 31,       
          2011     2010      
                       
                       
(Expressed in United States dollars)    $       $       
                       
Revenue   390,000     -      
                       
Expenses:                
  Cost of sales   782,907     -      
  Salaries and benefits   652,309     823,820      
  General and administrative   853,214     730,703      
  Inventory writedown - beta units   27,000     54,377      
  Amortization of intangible assets    338,540     3,740      
  Depreciation of property and equipment   159,097     165,741      
  Sales and marketing   124,539     48,517      
  Consulting fees   167,258     110,990      
  Professional fees   256,223     402,797      
  Professional engineering fees   288,736     643,600      
  Research and development   1,509,198     127,771      
  Finance costs   89,624     100,505      
  Interest income   (1,434)     (6,821)      
  Loss on fair value of warrant liability    2,660,328     -      
  Foreign exchange loss (gain)   6,870     (671)      
          7,914,409     3,205,069      
                       
Net loss and total comprehensive loss    (7,524,409)     (3,205,069)      
                       
Net loss and total comprehensive loss attributable to:                
  Owners of the Company   (7,408,979)     (3,122,987)      
  Non-controlling interest   (115,430)     (82,082)      
          (7,524,409)     (3,205,069)      
                       
                       
Net loss per share - basic and diluted   (0.09)     (0.06)      
                       
Weighted average number of common shares                
  outstanding   80,491,919     54,883,972      
                       

 


 

 

 

SOURCE Catch the Wind Ltd.

For further information:

Catch the Wind Ltd.        TMX Equicom
Claudia Jaques        Philip Dale
Vice President and General Counsel      Investor Relations
703-393-0754         416-815-0700 ext. 253
cjaques@catchthewindinc.com      pdale@equicomgroup.com

 

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