08/20/2010
Catch the Wind Reports Second Quarter 2010 Financial Results
Catch the Wind Ltd. (TSX-V: CTW), developer and manufacturer of the Vindicator® Laser Wind Sensor (LWS) and other wind sensor products, today reported its financial results for the three- and six-month periods ended June 30, 2010. All figures are in U.S. dollars unless otherwise stated.
“Our second quarter was marked by a number of significant milestones that further demonstrate our progress as a public company and the commercial potential of our Vindicator® LWS,” said Phil Rogers, President and CEO of Catch the Wind, Inc. “Most notably, we entered into a sales agreement with BP Wind Energy and completed the re-domestication of the Company, a process that resulted in the removal of the .S from our trading symbol. These developments, coupled with a product sale to enXco and the certification program signed with a Germanischer Lloyd subsidiary subsequent to quarter end, clearly demonstrate that the focused execution of our strategy is producing positive results and generating increased interest from blue-chip customers and investors alike.”
Second Quarter Highlights
*Signed a sales agreement with BP Wind Energy, a leading owner and operator of wind power facilities with over 1,200 MW in commercial operation in the United States.
*Completed a corporate re-domestication to the Cayman Islands. The re-domestication was initiated for the purpose of achieving greater flexibility in potential future financings, and was not completed for any tax reason.
*Completed a process to remove the “.S” designation from the Company’s ticker symbol on the TSX Venture Exchange, resulting in the new symbol “CTW”.
*Completed a private placement of 2,576,000 units, each at a price of CDN $2.00, generating gross proceeds of CDN $5,152,000. The proceeds will be used for the further development, production and sales of the Company’s product lines and for general corporate purposes.
Highlights Subsequent to Quarter End
*Signed a sales agreement with enXco, a leading company that develops, constructs, operates and manages renewable energy projects throughout North America.
*Signed an agreement with GL Renewables Certification, an independent certification body for renewable energies, to certify safety and performance of the Company’s Vindicator® LWS.
*Appointed Christopher Lowe, a senior financial executive with more than 17 years of experience in the investment banking and energy sectors, as an independent director of the Company.
*Signed a six-month evaluation agreement with AWS Convergence Technologies, owner and operator of the WeatherBug brand of professional and consumer weather products and services.
Financial Performance
Through the first six months of 2010, Catch the Wind operated as a development stage company focused on the commercialization of its Vindicator® LWS and other wind sensor products. As a development stage company, the Company netted cash receipts from product sales against capitalized development costs. As a result, the Company did not recognize any revenue for the three- and six-month periods ended June 30, 2010. However, the Company transitioned from a development stage to a commercial enterprise late during the second quarter, and commencing with the reporting of Q3 FY2010 financial results, the Company will be classified as a commercial enterprise and will report recognized revenue as appropriate.
Operating expenses for Q2 of FY2010 were $4.5 million and included an inventory write-down related to the production of Vindicator® LWS and Racer’s Edge beta units of $1.3 million. The inventory write-down charge represents the accounting treatment of costs associated with the in-house production of the beta units. Operating expenses for Q2 FY2009 were $2.1 million.
For more information, please contact:
Catch the Wind Ltd.
Claudia Jaques
Vice President and General Counsel
703-393-0754
cjaques@catchthewindinc.com
http://www.catchthewindinc.com/news/catch-wind-reports-second-quarter-2010-financial-results
“Our second quarter was marked by a number of significant milestones that further demonstrate our progress as a public company and the commercial potential of our Vindicator® LWS,” said Phil Rogers, President and CEO of Catch the Wind, Inc. “Most notably, we entered into a sales agreement with BP Wind Energy and completed the re-domestication of the Company, a process that resulted in the removal of the .S from our trading symbol. These developments, coupled with a product sale to enXco and the certification program signed with a Germanischer Lloyd subsidiary subsequent to quarter end, clearly demonstrate that the focused execution of our strategy is producing positive results and generating increased interest from blue-chip customers and investors alike.”
Second Quarter Highlights
*Signed a sales agreement with BP Wind Energy, a leading owner and operator of wind power facilities with over 1,200 MW in commercial operation in the United States.
*Completed a corporate re-domestication to the Cayman Islands. The re-domestication was initiated for the purpose of achieving greater flexibility in potential future financings, and was not completed for any tax reason.
*Completed a process to remove the “.S” designation from the Company’s ticker symbol on the TSX Venture Exchange, resulting in the new symbol “CTW”.
*Completed a private placement of 2,576,000 units, each at a price of CDN $2.00, generating gross proceeds of CDN $5,152,000. The proceeds will be used for the further development, production and sales of the Company’s product lines and for general corporate purposes.
Highlights Subsequent to Quarter End
*Signed a sales agreement with enXco, a leading company that develops, constructs, operates and manages renewable energy projects throughout North America.
*Signed an agreement with GL Renewables Certification, an independent certification body for renewable energies, to certify safety and performance of the Company’s Vindicator® LWS.
*Appointed Christopher Lowe, a senior financial executive with more than 17 years of experience in the investment banking and energy sectors, as an independent director of the Company.
*Signed a six-month evaluation agreement with AWS Convergence Technologies, owner and operator of the WeatherBug brand of professional and consumer weather products and services.
Financial Performance
Through the first six months of 2010, Catch the Wind operated as a development stage company focused on the commercialization of its Vindicator® LWS and other wind sensor products. As a development stage company, the Company netted cash receipts from product sales against capitalized development costs. As a result, the Company did not recognize any revenue for the three- and six-month periods ended June 30, 2010. However, the Company transitioned from a development stage to a commercial enterprise late during the second quarter, and commencing with the reporting of Q3 FY2010 financial results, the Company will be classified as a commercial enterprise and will report recognized revenue as appropriate.
Operating expenses for Q2 of FY2010 were $4.5 million and included an inventory write-down related to the production of Vindicator® LWS and Racer’s Edge beta units of $1.3 million. The inventory write-down charge represents the accounting treatment of costs associated with the in-house production of the beta units. Operating expenses for Q2 FY2009 were $2.1 million.
For more information, please contact:
Catch the Wind Ltd.
Claudia Jaques
Vice President and General Counsel
703-393-0754
cjaques@catchthewindinc.com
http://www.catchthewindinc.com/news/catch-wind-reports-second-quarter-2010-financial-results
- Source:
- Catch the Wind Inc.
- Author:
- Claudia Jaques
- Email:
- cjaques@catchthewindinc.com
- Link:
- www.catchthewindinc.com/...
