Focus on Product Development, International Expansion and
TSX Venture Exchange symbol: HGS
MISSISSAUGA, ON, April 27 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive")
(TSX-V: HGS) today announced its financial results for the year ending and
three month period ended December 31, 2006. This release also covers Financial
Statements for the Company and an accompanying MDA released earlier at
In the first quarter of 2006, the Company launched product in this
family, known as the "G2", and is currently deployed in North America,
Australia, the U.K. and most recently New Zealand. The Company is in the
development stage of an enhanced version of the HGS technology, known as the
"G3" and is now undergoing a rigorous program of testing and validation, prior
to its production release. As certain of the key advancements embodied in the
"G3" have been validated, they have been incrementally introduced in the "G2",
thus ensuring our fielded product represent true "state of the art" for HGS
performance. The Company anticipates completing the introduction of all "G3"
features by mid 2007.
The G2-G3 progression represents the Company's core commercialization
thrust at present and is strongly focused on the heavy road transport sector.
In the longer term, the Company sees a much broader application for HGS
technology. In order to exploit these other markets to the fullest extent, the
Company has launched 2 strategic initiatives. The first relates to the
development of a more complete scientific understanding of the hydrogen
injection, together with its independent certification/validation. In this
task, the Company has contracted with several recognized academic and
governmental bodies to achieve these ends and anticipates delivering these
outcomes throughout the 2007 period. Secondly, The Company requires, and has
committed to develop a truly re-usable, scalable HGS design approach that can
efficiently address the entire power range (75kilowatt - 3 megawatt) of
engines we perceive may benefit from HGS technology. The year 2006 has laid
down a firm foundation for these 2 strategic projects, and 2007 will see them
come to fruition.
Our original "G1" unit is being targeted at the above ground mining
sector. Additionally, we are developing an "M3" prototype version for the
underground mining sector.
Alliances - International Expansion:
In August 2006 Hy-Drive and Mining Technologies International Inc ("MTI")
concluded a strategic alliance allowing MTI the rights to exploit the HGS
technology in the mining sector in North America. MTI will be adapting
Hy-Drive's HGS technology for use in selected underground and above ground
diesel powered mining equipment. Hy-Drive's system addresses a major concern
of the mining industry being the need for a reduction of emissions.
In October 2006 Hy-Drive and TransFuel Limited ("TransFuel master sales")
signed a distribution agreement where TransFuel becomes the exclusive agent
for Hy-Drive HGS units in the United Kingdom.
For the year-ending December 31, 2006 the cash proceeds from the issuance
of capital stock, net of share issuance costs, was $19,150,129 (2005:
$7,957,795). Additional funding of $11,100,000 was closed in January, 2007 on
the private placement announced in December.
The following table sets out selected financial data for the year and 3
months ended December 31, 2006 and 2005.
Three months ending Years ending
Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2005
Revenues $ 173,029 $ 9,440 $ 918,087 $ 20,040
Net loss $ (1,586,354) $ (732,963) $ (6,381,928) $ (3,217,238)
Loss per share $ (0.03) $ (0.02) $ (0.13) $ (0.09)
Total Assets $ 22,354,889 $ 7,397,182
Total Liabilities $ 2,200,870 $ 632,694
Total Cash and
Equivalents $ 14,987,027 $ 2,255,715
YTD revenues include the sale of units in the North American and United
Kingdom markets. Product trials continued with strategic customers and fleets
to demonstrate the value of the HGS unit as a prerequisite to sales. At
December 31, 2006 there were more than 160 independent North American
conditional test to own units in distribution, not recorded as revenue.
In 2006 we continued the build-up of our infrastructure and research and
development expenditures. In 2005 the majority of our expenses were incurred
on initial research and development expenses.
Total Assets as reported at December 31, 2006 consist of cash and cash
equivalents totaling $14,987,027 (2005: $2,255,715), short-term investments
with staggered maturities under 12 months totaling $1,536,484 (2005:
$2,744,875), accounts receivable of $237,785 (2005: nil), prepaid expenses and
other assets of $617,584 (2005: $331,356) development costs of $391,243 (2005:
nil) and inventory including parts, work in process, and finished goods
totaling $2,942,327 (2005: $718,184) reflecting our commercial launch and
conditional test to own unit penetration in North America. Our net investment
in Intellectual Property was $924,370 (2005: $937,214).
Total Liabilities at December 31, 2006 were $2,200,870 (2005: $632,695)
consisting principally of recurring account payable and accrued liabilities,
incurred in the normal course of operations.
Hy-Drive is an energy technology firm that has developed a proprietary,
patented hydrogen generating system. Hy-Drive's Clean Air Operating System(TM)
generates and injects hydrogen gas into a regular internal combustion engine,
enhancing the combustion process by allowing fuel to burn more efficiently and
completely. For more information, please visit www.hy-drive.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release may constitute
forward-looking statements. Such statements reflect Hy-Drive's current views
with respect to future events and are subject to certain risks, uncertainties
and assumptions. Many factors could cause Hy-Drive's actual results,
performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by such
forward-looking statements, including among other things, those which are
discussed under the headings "Risk Factors" and elsewhere in documents that
Hy-Drive files from time to time with securities regulatory authorities.
Should one or more of these risks or uncertainties materialize, or should
assumptions underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Hy-Drive does not intend, and
does not assume any obligation, to update these forward-looking statements.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Investor Relations: Glen Akselrod, Bristol
Capital Ltd., Tel: (905) 326-1888, email@example.com; OR Tom Brown, President
and CEO, Hy-Drive Technologies Ltd, Tel: (905) 542-3024, ext. 300,
firstname.lastname@example.org; Media Relations: Teresa Madaleno, KTML Communications
Ltd., Tel: (416) 877-3915, email@example.com; OR Patrick Smith, Marketing &
Communications, Hy-Drive Technologies Ltd., Tel: (905) 542-3024,