Catch the Wind reports Q3 2009 financial results

    Makes considerable progress towards commercialization of laser wind
    sensing technology

MANASSAS, VA, Nov. 25 /CNW/ - Catch the Wind Ltd. (TSX-V: CTW.S), developer and manufacturer of the Vindicator(R) laser wind sensor (LWS) and other sensor products, announced today its financial results for the three- and nine-month periods ended September 30, 2009. All figures are in U.S. dollars unless otherwise stated.

"We achieved a number of significant milestones in the third quarter as part of our ongoing efforts to bring our laser wind sensing technology to market," said Phil Rogers, President and CEO of Catch the Wind Ltd. "Most notably, our field trial with Nebraska Power produced results that clearly demonstrate that our Vindicator enables turbines to generate markedly more energy output while reducing equipment stress loads considerably. In the coming months, we will continue to work with other leading industry players to further validate our technology and build upon our initial success."

    Third Quarter Highlights

      -  Released preliminary results of a field trial program with Nebraska
         Public Power District that demonstrated that the Vindicator(R) LWS
         significantly improved the yaw alignment control of a turbine over
         traditional wind vane measurement equipment.
      -  Signed an evaluation program agreement with Hélimax Energy Inc., an
         independent consulting firm specializing in utility-scale wind
         energy project development.
      -  Delivered the first Vindicator(R) LWS for commercial use to AXYS
         Technologies, Inc., a leading provider of environmental data
         acquisition, processing and telemetry systems for marine and
         terrestrial applications.
      -  Entered into a trial program agreement with Canadian Hydro
         Developers, Inc. to supply eight Vindicator(R) LWS test units for
         direct side-by-side comparison on a designated wind farm with
         turbines not equipped with forward wind measurement capabilities.
      -  Signed a Cooperative Research and Development Agreement with the
         National Renewable Energy Laboratory, the U.S. Department of
         Energy's primary laboratory for renewable energy research and
      -  Signed a collaborative test and integration agreement with Gamesa, a
         worldwide leading manufacturer of wind turbines, to mutually test a
         Vindicator(R) LWS unit mounted on an operating Gamesa G8X 2.0
         megawatt turbine.
      -  Entered into a manufacturing services agreement with BreconRidge
         Corporation, a world-class provider of engineering and manufacturer
         services for electronic products based in Ottawa, Canada, to
         outsource the production and assembly of Vindicator(R) LWS units.

    Highlights Subsequent to Quarter-End

      -  Signed a technology development agreement with SCADA Solutions,
         Inc., a leading provider of integration and monitoring solutions for
         renewable energy assets, to provide control of Vindicator(R) LWS
         test units included in the field trial with Canadian Hydro
      -  Released secondary results of its field trial with Nebraska Power
         that demonstrated, with data collected via third-party
         instrumentation, that the Vindicator(R) LWS significantly reduced
         equipment stress loads. Recorded secondary results of its field
         trial with Nebraska Power that demonstrated that the Vindicator(R)
         LWS markedly increased the power output of an operating turbine.
      -  Deployed the Vindicator(R) LWS as part of the validation testing of
         the WindSentinel(TM), the world's first offshore Lidar wind
         assessment buoy.
      -  Installed a Vindicator(R) LWS unit on to an operating Gamesa G8X 2.0
         megawatt turbine located in Spain.

Financial Performance

Catch the Wind is an early-stage development company focused on the commercialization of its Vindicator(R) LWS. Revenue relating to the commercial sales of the Vindicator(R) LWS will be recognized upon delivery and acceptance of units upon full commercialization.

Operating expenses for Q3 2009 were $3.6 million compared to $0.5 million in Q3 2008. Total Q3 2009 expenses included an inventory valuation adjustment of $2.2 million related to the completion of Vindicator(R) LWS beta units, and salaries and benefits, general and administrative costs, professional engineering fees, and sales and marketing costs associated with the development and commercialization of the Vindicator(R) LWS system totaling $1.4 million. On a year-to-date basis, operating expenses for 2009 totaled $7.4 million compared to $0.8 million for 2008, and included a $2.8 million inventory valuation adjustment.

Net loss for Q3 2009 was $3.6 million, or $0.07 per basic share, compared to a net loss of $0.5 million, or $0.02 per share, for the same period of 2008. Net loss for the nine-month period of 2009 was $7.4 million, or $0.16 per share, compared to a net loss of $0.8 million, or $0.03 per share, for the same period of 2008. Excluding the inventory valuation adjustment, the adjusted net loss for Q3 2009 was $1.4 million, or $0.03 per basic share. The adjusted net loss for the nine-month period of 2009 was $4.6 million, or $0.10 per share.

Net cash usage for Q3 2009 was $4.3 million, consistent with Company expectations.

At September 30 2009, the Company held cash and cash equivalents of $14.7 million. This compares to $9.1 million at December 31, 2008.


"We are very encouraged by the industry's feedback on the Vindicator's performance to date," Mr. Rogers said. "As a result of our successful trial programs and expanding sales initiatives, we are developing a sales pipeline that we expect will accelerate throughout 2010. Fully qualified production units will be manufactured and assembled by our principal outsourcing partner, BreconRidge."

Conference Call

The Company will host a conference call to discuss its 2009 third quarter and year-to-date financial results today, November 25, 2009, at 10:00 a.m. ET.

To access the conference call by telephone, dial 416-644-3424 or 1-877-974-0445. 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 . 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 from noon November 25 until midnight on Wednesday, December 2, 2009. To access the rebroadcast, please dial 416-640-1917 or 1-877-289-8525 and enter passcode 4185115, 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(R) 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

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.
                        (A Development Stage Company)
                         Consolidated Balance Sheets

                                                 September 30,   December 31,
                                                     2009            2008

    (Expressed in United States dollars)               $               $

    Current assets:
      Cash and cash equivalents                    14,690,809      9,143,767
      Accounts receivable                             378,293              -
      Inventory                                     1,627,647        230,931
      Prepaid expenses and other assets               116,533        103,902
                                                 -------------   ------------
                                                   16,813,282      9,478,600

    Capital assets                                  6,281,344         28,140
    Project development costs                       5,432,477      3,075,002
    Deposits                                           68,108          4,499
                                                 -------------   ------------

    Total assets                                   28,595,211     12,586,241
                                                 -------------   ------------
                                                 -------------   ------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities      1,357,536        826,750
      Due to related party                            364,777        527,135
      Obligations under capital lease - current
       portion                                        159,556              -
      Long-term debt - current portion                163,269              -
      Deferred revenue and deposits                   385,750        200,000
                                                 -------------   ------------
                                                    2,430,888      1,553,885
                                                 -------------   ------------

    Obligations under capital lease                   228,768              -
    Long-term debt                                  4,436,731              -
                                                 -------------   ------------
    Total liabilities                               7,096,387      1,553,885
                                                 -------------   ------------
                                                 -------------   ------------

    Non-controlling interest                          179,393              -

    Shareholders' Equity
      Capital stock                                     5,488          3,805
      Contributed surplus                          30,969,417     13,259,947
      Deficit                                      (9,655,474)    (2,231,396)
                                                 -------------   ------------
    Total shareholders' equity                     21,319,431     11,032,356
                                                 -------------   ------------

    Total liabilities and shareholders' equity     28,595,211     12,586,241
                                                 -------------   ------------
                                                 -------------   ------------

                             Catch the Wind Ltd.
                        (A Development Stage Company)
    Interim Consolidated Statements of Loss, Comprehensive Loss and Deficit

                              Three        Three        Nine        Nine
                              months       months       months      months
                              ended        ended        ended       ended
                            September    September    September   September
                             30, 2009     30, 2008     30, 2009    30, 2008

    (Expressed in United
    States dollars)              $            $            $           $

      Salaries and
       benefits                589,293      116,350    1,711,690     117,808
      General and
       administrative          206,813       29,570      737,959      47,647
      Inventory valuation
       - Beta units          2,160,559            -    2,781,937           -
      Amortization              74,296        1,220      144,846       1,220
      Sales and marketing       54,628       42,870      226,504     194,490
      Consulting fees           63,509       24,506      281,984      43,049
      Professional fees        122,949       47,840      313,768      77,796
       engineering fees        343,222      182,705    1,350,308     221,741
      Research                  34,030       56,036       34,030      83,459
      Interest expense          24,968        5,352       45,727       5,352
      Interest income          (52,345)      (4,893)     (78,630)     (4,893)
      Foreign exchange gain    (12,731)     (25,028)    (109,545)    (25,028)
                             3,609,191      476,528    7,440,578     762,641

    Loss before
     interest               (3,609,191)    (476,528)  (7,440,578)   (762,641)
       interest                (16,500)           -      (16,500)          -

    Net loss and
     comprehensive loss     (3,592,691)    (476,528)  (7,424,078)   (762,641)

    Deficit - Beginning of
     period                 (6,062,783)    (286,113)  (2,231,396)          -
    Deficit - End of
     period                 (9,655,474)    (762,641)  (9,655,474)   (762,641)

    Net loss per common
     share - basic and
     diluted                     (0.07)       (0.02)       (0.16)      (0.03)

    Weighted average number
     of common shares
      outstanding           54,806,165   26,843,567   46,270,480  25,619,008

SOURCE BlueScout Technologies, Inc.

For further information: For further information: Catch the Wind Ltd., David Samuels, Chief Financial Officer, (703) 393-0754,; The Equicom Group, Joe Racanelli, Investor Relations, (416) 815-0700 ext. 243,

Organization Profile

BlueScout Technologies, Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890