TMCnet News
blutip Power Announces First Quarter Results(Canada Newswire Via Acquire Media NewsEdge) MISSISSAUGA, ON, June 27, 2011 /CNW/ - blutip Power Technologies Ltd. (TSXV: BPR) today announced its financial results for the Three-Month period ended March 31, 2011. Highlights for the three-month periods ended March 31, 2011: The following outlines the key events in the development of the Company and the commercialization of the Company's technology and capabilities during the three months ended March 31, 2011 and up to the date of this MD&A: Three Months ended March 31 (unaudited) 2011 2010 $ $ EXPENSES General and administration 371,075 436,068 Sales and marketing 71,933 202,754 Research and development 368,393 446,602 Warranty costs - (21,764) Stock-based compensation 31,953 2,886 Amortization - property and equipment 16,961 28,055 Amortization - development costs - 242,559 Amortization - intellectual property 43,010 40,598 Total Expenses 903,325 1,377,758 Loss from operation (903,325) (1,377,758) Interest and other income 11,134 (2,378) Total comprehensive loss for the period (892,191) (1,380,136) Loss per share (0.01) (0.02) In December 2010, the Company announced the launch of blutip Power Technologies ("blutip Power"), a new division to allow for product expansion into much broader markets. Subsequently, the Company officially launched blutip Power, a comprehensive platform for customer solutions to improve emissions and save fuel costs across many engine applications. In conjunction with this launch and the rebranding of the Company to blutip Power, the Company launched a new website in February 2011 - www.blutipower.com . The Company continues working on diesel combustion and using its knowledge and expertise to expand into multi-fuel controls, smart telematics and a control and monitoring solution. blutip Power offers customers access to engine combustion emissions analysis, environmental packaging, lab services and tailored program prototyping. Shareholders approved changing the company name to blutip Power Technologies Ltd. at its Annual General and Special Meeting of Shareholders on May 12, 2011. On April 19, 2011, the Company announced that it retained an investment bank (the "IB"), to assist with a "best efforts" private placement financing (the "Offering") for up to 10,000,000 units ("Units") at a price of CDN $0.15 per unit for gross proceeds of up to CDN $1.5 million. The Company proposes to issue Units comprised of one common share and one-half of one common purchase warrant. Each whole warrant (a "Warrant") will be exercisable at the offering price of $0.20 for a period of 24 months from the closing date of the Offering. The Offering remains subject to, among other things, completion of satisfactory due diligence, as well as, receipt of all necessary approvals, including that of the TSX Venture Exchange. If the Offering proceeds, and dependent on the amount of capital raised, the Company expects that net proceeds from the Offering may be used to (i) accelerate the commercialization of the Company's patented product, the blutip Power3, for the power generation market, (ii) further the developments of its software for existing control and telematic products for use in new combustion engine systems and applications, such as different types of diesel engine manufacturers, and (iii) general working capital purposes. blutip Power has agreed to pay the IB a cash commission equal to 7% of the gross proceeds of the Offering and issue broker warrants equal to 7% of the aggregate number of units issued in connection with the successful completion of the Offering. The broker warrants will be exercisable to purchase one common share of blutip Power at a price equal to $0.155 at any time and from time to time prior to the day that is 24 months from the closing date of the offering and will be subject to all regulatory hold periods and approvals. On February 24, 2011, the Company launched its next generation of product, the blutip Power3. The Company completed a blutip Power3 Impact Study on stationary generator sets at the Caterpillar dealership facility of Toromont Industries Ltd., in Concord, Ontario. The study resulted in savings of over 10% of fuel usage on the Caterpillar XQ400 genset. As a result, the Company announced the immediate availability of the blutip Power3product for 400 kW class CAT Power Generators. It also announced that it is developing a product for generators with up to 1.5 MW capacities. The blutip Power3 Impact Study incorporated the use of the blutip AUC2 integrated with the HGS. The study results showed average fuel savings of 6 to 12% depending upon load variables. For a full copy of the report, please see: www.blutipower.com/products/blutip-telematics-systems/ . On January 26, 2011, the Company completed its agreement with I.C.E. Fuel Technologies Ltd. ("ICE") to acquire certain intellectual property assets ("IP Assets"). As per the final agreement the Company issued 1,586,000 common shares and common share purchase warrants and made final payment of $292,881. The acquisition of the IP Assets and termination of the agreement allows the Company to internalize the intellectual property development and pave the way for global expansion into multiple diesel emissions and fuel economy applications and markets through rapid addition of engine platforms. On January 18, 2011, the Company entered into a Memorandum of Understanding with WorldKlass Technologies ('WorldKlass MOU" and "WorldKlass") to jointly deploy solutions for power generation equipment where high fuel consuming and emitting power generators can be made cleaner and more cost effective utilizing blutip Power solutions. WorldKlass has developed a complementary Infrared Fuel Ceramics technology and has concentrated on the power generation market with several large clients. The intent of the WorldKlass MOU is to deploy the respective technologies as a single source to achieve maximum efficiency in fuel consumption and emissions reduction. On January 11, 2011, the Company announced that it signed a Distributor Agreement with GreenCell Technologies Inc. ("GreenCell") (GT5: GR). GreenCell has a marketing system and several energy saving products that it will market in conjunction with the blutip Power products. GreenCell will concentrate on marketing, sales and service to the transport industry and the Company will focus on product development and cost efficiency. A third party assembler, to be sourced, will produce the product. In May 2010 the Company installed eighteen HGS units on a fleet of trucks on a rental arrangement. The rent was to be traded for advertising on the fleet's trailers. The fleet agreed to provide access to the units for research and development of improved HGS software. The contra arrangement expired in May 2011. Total cash and short-term investments used in operating activities was $1,322,284 for the three months ended March 31, 2011 (2010 - $1,282,530). During the first quarter blutip Power continued decreasing its spending on sales and marketing of its HGS product. Net loss for the three months ended March 31, 2011 was $892,191 (net losses of $0.01 per share) (Net losses in 2010 were $1,380,136 (net losses of $0.02 per share)). The Company reports cash and short-term investments of $907,528 as at March 31, 2011, compared to $2,256,271 as at December 31, 2010; a decrease of $1,348,743 in the quarter. On March 31, 2011, the Company announced that its distributor agent, Greencell Technologies Inc., ("Greencell") placed an order for the blutip HGS product totalling $263,000 CDN. As previously announced, blutip Power and Greencell entered into a Distribution Agreement that would allow both companies to expand their positioning in the energy solutions market to the transport industry. On April 14, 2011, the Company announced that its mining partner, Mining Technologies International Inc. ("MTI") agreed to purchase the exclusive manufacturing and global distribution licensing rights for blutip Power's Hydrogen Enhanced Diesel Combustion technology. MTI will use the technology with direct-driven rolling equipment applications in the surface mining, underground mining, tunneling, construction mining and off-highway market sectors. blutip Power also licensed MTI to manufacture and supply the blutip HGS and associated sub-assemblies to the world off-road heavy equipment market. In consideration, MTI will pay $2,000,000 to blutip Power, in four quarterly installments with the previous deposit of $200,000 applied to the first payment. MTI will also have the "first right-of-refusal" on all potential heavy-equipment customer inquiries as defined within the agreement. In the event MTI is not interested in pursuing the opportunity, blutip Power will have the ability to execute through its other channels of distribution. Not included in the license is blutip Power's proprietary controller software, which will be supplied directly to MTI by blutip Power, for each application of the HGS product. blutip Power retains all rights and ownership over all of its intellectual property, manufacturing schematics and product specifications of the blutip HGS in its entirety. Under separate agreement, MTI will also act as a distributor for the blutip Power3 Savings Share Program, on a non-exclusive basis, for the diesel power-generation market. All future development work between the two companies is on an individual basis with separate terms and conditions. On May 12, 2011, at the Annual General Meeting, the Company highlighted its new Revenue Share Program ("RSP") being introduced to customers of the Power3 Program. The RSP provides for the installation of the Power3 in exchange for sharing of fuel cost reductions by the customer. More details of the RSP are set out below. On May 17, 2011 the Company announced it had retained Athlone Limited, a financial group that specializes in debt facilities. Athlone Limited will operate as blutip Power Financial Corporation ("BTFC") in an arms-length relationship from blutip Power and will provide financing services to distributors, sales agents and end users of blutip's Power3 Program. BTFC will collect the savings generated for the customer through the RSP, with a percentage of the savings paid directly to blutip Power and the Distributor, and a percentage retained for the services provided by BTFC. BTFC will also act as the Master Distributor for the Power3 Program market in the North American and Caribbean markets. BTFC has acquired seven (7) Master Distributors to market and distribute the Power3 product to date. On May 18, 2011 the Company released its latest Combustion Controls testing on Caterpillar 3500 series power generators for the 850kW to 2.5MW. The Combution Control testing achieved positive fuel optimization of up to 7% on the CAT XQ1250 and up to 5% on the XQ2000. The results further broadened the Company's expansion of the Power3 Program product offering. On May 12, 2011, the shareholders approved motions (see the Annual Information Circular). to change the name of the Company to blutip Power Technologies Inc.("blutip Power"), to approve the Incentive Stock Option Plan, and to approve a new Performance Share Unit Plan. About blutip Power blutip Power is a technology company headquartered in Mississauga, Ontario, Canada. The Company has invested in the research and development of hydrogen and control technology resulting in a proprietary, patented and patent-pending hydrogen generating system ("HGS®") and advancement in multi-fuel universal combustion controls. blutip's Hy-Drive HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis and uses its proprietary software controls to improve combustion of the fuel-air mixture. The result is improved fuel economy and reduced opacity (particulates). Cautionary Note Regarding Forward-Looking Statements: This press release contains certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business, and the economic environment in which the business operates. Forward-looking statements contained in this MD&A that are not statements of historical fact may be deemed to be forward-looking statements including but not limited to, statements about future development of blutip Power's products, commercial production in 2011, future working capital requirements, and validation of blutip Power's products, and can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", "thinks", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and similar expressions to the extent that they relate to the Company or its management. These forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed in the section "Risks and Uncertainties" below. Many of these assumptions are based on factors and events that are not within the control of blutip Power and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include future working capital requirements, the ability to develop products on an economic basis, product validation, factors relating to the marketing, development and commercialization of blutip Power existing and prospective product lines, regulatory approvals and requirements, changes in foreign exchange and interest rates, government regulation, environmental risks, capital expenditures, intellectual property, operating or technical difficulties, risks associated with the emissions and fuel combustion industries such as economic factors (including fuel costs), failure of processes to operate as anticipated, dependence on key personnel, employee relations and availability of equipment and skilled personnel, actual results of current research and development activities, development timelines, risks associated with the emissions and fuel combustion industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed below, which risks may cause actual results to differ materially from any forward-looking information. Although blutip Power has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. blutip Power does not undertake to update any forward-looking information that is incorporated by reference herein, except in accordance with applicable securities laws. 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. |