KINGSTON, Ontario, March 1 /CNW Telbec/ - Fuel Cell Technologies Ltd.
("FCTL"), today reported on the quarter ended December 31, 2006 with financial
results, management discussion and analysis, and highlights of corporate
activity. These financial statements are available on SEDAR.
On October 1, 2006, FCTL voluntarily, under the direction of the sole
Director, commenced actions to wind-up and / or sell the business.
The primary objectives of these actions are to maximize the value of the
ultimate recoveries to all creditor groups on a fair and equitable basis and
to settle, compromise or otherwise dispose of certain claims and interests on
terms that the Company believes to be fair and reasonable and in the best
interests of its respective estates, creditors and equity holders. There can
be no assurance, however, that the Company will successfully achieve all of
During the quarter FCTL delivered, as part of a contract signed in
January, one (1) Balance of Plant System (BOP) to Siemens Power Generation for
their internal testing purposes. The company ceased work on the units
installed at the University of Toronto Mississauga Campus (UTM) due to a lack
of progress with respect to payment from h2ea program. Discussions have now
moved to transferring the entire remainder of the project to UTM along with
ownership of the relevant units.
Efforts during the quarter, directed towards the sale of the business as
a going concern were unsuccessful and John Stannard therefore moved towards
sale of various components of the business. Although none of these discussions
were consummated during 2006 several were at an advanced stage of discussion
and are expected to be closed before the final FCTL meeting scheduled for
March 22, 2007.
Summary of Financial Results
Total revenue for the three months and twelve months ended December 31,
2006 was $1,458,453 and $3,002,548 respectively. Fourth quarter revenue
includes the revenue from the one BOP delivered to Siemens and the project
related to units at UTM which has been ongoing for over a year and which from
FCTL's perspective is complete.
Expenses for the four months ended December 31, 2006 were $424,101 which
included a write-down of fixed assets in the amount of $123,245 to better
reflect expected realizable value. In addition Cost of Product was also higher
due to a similar write-down to realizable value and also the cost of the units
FCTL's loss before income tax was $19,403 for the three months ended
December 31, 2006 and $1,259,362 for the twelve months ended December 31,
2006. Basic loss per share for a period is calculated using the weighted daily
average number of Common Shares outstanding during that period. The weighted
daily average number of shares outstanding was 4,894,000 for the third quarter
2006 and the basic net loss per share was $0.00.
FCTL's current assets as of December 31, 2006 were $1,068,559, comprised
of $389,155 of accounts receivable, a cash balance of $123,155 and inventories
of $287,215. We also note there is an Investment Tax Credit Receivable of
There was a net cash outflow of $436,617 during the quarter ended
December 31, 2006.
Forward-looking Statements and Risk Factors
Certain statements in this quarterly report may constitute
"forward-looking" statements. Words such as "may, would, could, will, intend,
plan, anticipate, believe, estimate, expect", and similar expressions as they
relate to FCTL or its management, indicate forward-looking statements when
used in this quarterly report. Forward-looking statements are based on
management's current expectations, beliefs, intentions, or strategies for the
future. All forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Factors that could influence
outcomes include changes in general economic, financial, or business
conditions that adversely affect the business or markets in which FCTL
operates; FCTL's ability to attract and retain customers and business
partners; and, dependence on third party suppliers. FCTL expects investors to
review the section in Fuel Cell Technologies Corporation's Information
Circular dated February 16, 2006 entitled "Risk Factors with Respect to Opco"
for a broader discussion of factors that could influence outcomes and FCTL's
For further information:
For further information: Fuel Cell Technologies Ltd.: J. Christopher
McFarlane, (613) 341-7168, firstname.lastname@example.org; John H. Stannard, Chief
Executive Officer, (613) 328-3999, email@example.com