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MANASSAS, VA, May 2 /CNW/ --
MANASSAS, VA, May 2 /CNW/ - Catch the Wind Ltd. (TSX-V: CTW), providers
of feed-forward, intelligent turbine performance improvement systems
that deliver increased energy output and reduced equipment stress loads
for utility scale wind turbine generators, today reported its financial
results for the three- and 12-month periods ended December 31, 2010.
All figures are in U.S. dollars unless otherwise stated.
"In 2010, we experienced considerable achievement and progress," said
Phil Rogers, President and CEO of Catch the Wind. "Against a backdrop
of market uncertainty, we accelerated our path towards market adoption
by signing a number of sales agreements with various members of the
wind industry. Among our customer wins were a global turbine
manufacturer, two large wind farm owners and operators, and AXYS
Technologies, a leading provider of remote environmental data
acquisition, processing, and telemetry systems.
"As a result of our access to world-class engineering talent, we also
enhanced the capabilities of our Vindicator unit while reducing our
production cost through new a product configuration."
Mr. Rogers added, "We have sustained this forward momentum over the past
several months through a growing sales pipeline and confirmation from
customer trial program results that the Vindicator's look-ahead
measurement and turbine control capabilities can increase energy output
in excess of 20 percent through better turbine alignment with the
wind. Our progress to date effectively positions us for a breakout
year in 2011."
Selected 2010 Financial and Operational Highlights
-- Signed an exclusive multi-million dollar distribution agreement
with AXYS Technologies with a minimum purchase commitment of 47
Vindicator(®) laser wind sensor (LWS) units. AXYS will bundle
the Vindicator(®) LWS units with its floating platforms and
sell the combined products for maritime wind resource
assessment applications.
-- 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.
-- 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. The receipt of the certification is expected to accelerate
the Company's sales cycle.
-- Re-domesticated the Company 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.
-- Removed the ".S" designation from the Company's ticker symbol
on the TSX Venture Exchange, resulting in the new symbol "CTW".
-- Entered into a sales agreement with one of the world's leading
manufacturers of wind turbines for the purchase of a unit of
the Company's Vindicator® LWS.
-- Launched Racer's Edge® LWS, the world's first hand-held device
that provides accurate wind speed and direction measurement
data for use in sailing, boating and other sporting events
where knowledge of wind conditions is a contributing factor to
performance.
-- Named an Official Supplier of BMW ORACLE Racing, the winner of
the 33rd America's Cup Match, held February 2010 in Valencia,
Spain.
-- Appointed Robin Roge, CPA, as acting Chief Financial Officer of
the Company. Ms. Roge has more than 25 years of accounting and
financial reporting experience, working with a number of public
and private companies.
Highlights Subsequent to Year-end
-- Announced that the Company's exclusive licensing partner for
maritime applications, AXYS Technologies, sold two units of
the WindSentinel™ buoy, a custom marine floating platform
bundled with a Vindicator® LWS unit.
-- Presented a summary report of data collected to date from its
Vindicator® LWS field trials at the European Wind Energy
Association 2011 Annual Event in Brussels, Belgium. Specific
energy output data collected over a span of 11 months indicated
that the Vindicator® LWS consistently generated 14% increased
energy output as compared to periods when the legacy wind
direction inputs were utilized, with optimization experiments
showing increased energy output in excess of 20%.
-- Announced the reduction of the production costs for the
Vindicator® LWS by approximately 50% and the significant
improvement in the ease of its installation and serviceability.
Financial Performance
Catch the Wind recognized revenue of $500,000 for the quarter and
$507,500 for the 12-month period ended December 31, 2010, both record
results for each respective period. Catch the Wind generates revenue
from the sale and rental of its laser wind sensing technologies.
In 2009, the Company operated as an early stage development company and
netted its cash receipts from product sales, which totaled
approximately $283,000 for the year, against project development costs.
Catch the Wind continued to operate as an early stage company focused
on the development of its wind sensor products through the first six
months of 2010.
Operating expenses for Q4 2010 were $5.6 million, up from $4.2 million
for the corresponding period of last year. The increase in expenses is
chiefly due to the growth of the Company and the accounting treatment
of certain items that took effect when the Company became a commercial
enterprise in July 2010. Consistent with generally accepted accounting
principles, these items, which included research and development
expenses of $1.1 million and amortization of intangible assets of
approximately $335,000, were expensed.
On a 12-month basis, operating expenses totaled $17.4 million for 2010
and $11.6 million for 2009. The increase in expenses is again due, in
part, to the accounting treatment of certain items, including research
and development expenses of $2.1 million and amortization of intangible
assets of approximately $725,000. The growth in operating expenses was
also attributable to cost of sales of $1.1 million. The increase in
operating expenses was partially offset by a reduction in inventory
write-down charges of $2.2 million.
Operating expenses include cost of sales and customer support, salaries
and benefits, general and administrative expenses, professional fees as
well as professional engineering fees associated with the development
of the Company's Vindicator(®) LWS.
Consistent with its capital optimization plan, the Company amended its
engineering services agreement with Optical Air Data Systems, LLC to
provide for a fixed price component. The Company has also recently
announced that it has reduced the production costs for the Vindicator(®) LWS by as much as 50%. The cost reduction results from a new production
configuration achieved as a result of the knowledge gained from
customer field trials conducted over the past 18 months as well as the
transfer back to the Vindicator® LWS of the miniaturization developed
previously for Company's hand-held wind sensing device, Racer's Edge(® )LWS. The new product configuration also significantly improves the ease
of installation and serviceability of the Vindicator® LWS units.
Catch the Wind recorded a net loss for Q4 2010 of $5.1 million or $0.08
per share. These compare to a net loss of $4.2 million, or $0.08 per
share, for the same period of 2009. Catch the Wind recorded a net loss
for 2010 of $16.9 million or $0.29 per share, compared to a net loss
$11.6 million or $0.24 per share for 2009.
At December 31, 2010, Catch the Wind had working capital of $6.9
million, including cash and cash equivalents of $6.7 million, compared
to $10.1 million and $10.6 million, respectively, for 2009.
Catch the Wind has filed its financial statements for the three months
and year ended December 31, 2010 and related Management's Discussion
and Analysis (MD&A) with securities regulatory authorities. Catch the
Wind's financial statements, MD&A and related documents are available
via SEDAR as well as through the Company's website, www.catchthewindinc.com.
Conference Call
Catch the Wind will host a conference call to discuss its 2010 year-end
financial results on Tuesday, May 3, 2011 at 10:00 a.m. EST.
To access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. 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 www.catchthewindinc.com . 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 until 12 a.m. ET on
Tuesday, May 10, 2011. To access the rebroadcast, please dial
416-849-0833 or 1-800-642-1687 and enter passcode 58421924, 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® 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 www.catchthewindinc.com.
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.
Consolidated Balance Sheets
As at December 31,
2010 2009
(Expressed in
United States $ $
dollars)
Assets
Current assets:
Cash and cash 10,616,065
equivalents 6,746,467
Accounts 119,627
receivable 202,157
Inventory 1,667,997
2,605,224
Prepaid expenses 107,719
and other assets 228,262
12,511,408
9,782,110
Capital assets 6,486,358
5,659,422
Other intangible 5,889,286
assets 5,971,545
Deposits 77,045
81,109
Total assets 24,964,097
21,494,186
Liabilities and
Shareholders'
Equity
Current
liabilities:
Accounts payable
and accrued 2,074,698 1,339,905
liabilities
Due to related 355,685
party 74,388
Obligations under
capital leases - 194,582 179,633
current portion
Long-term debt - 166,213
current portion 178,530
Deferred revenue
and customer 333,500 360,000
deposits
2,401,436
2,855,698
Obligations under 218,026
capital leases 41,987
Long-term debt 4,394,057
4,215,527
Total liabilities 7,013,519
7,113,212
Non-controlling 182,913
interest 86,983
Shareholders'
Equity
Capital stock 5,488
8,049
Contributed 31,572,347
surplus 42,842,699
Warrants
2,131,711 -
Deficit (13,810,170)
(30,688,468)
Total shareholders' 17,767,665
equity 14,293,991
Total liabilities
and shareholders' 21,494,186 24,964,097
equity
Catch the Wind Ltd.
Consolidated Statements of Loss, Comprehensive Loss and Deficit
For the years ended December 31,
2010 2009
(Expressed in
United States
dollars) $ $
Revenue
507,500 -
Expenses:
Cost of sales
1,133,127 -
Salaries and 2,912,748
benefits 3,302,996
General and 1,356,760
administrative 2,479,542
Inventory
writedown - beta 1,836,333 4,016,127
units
Capital assets
writedown- 149,000 -
Racer's Edge
Amortization of
other intangible 725,400 -
assets
Amortization of 322,434
capital assets 859,924
Sales and 254,648
marketing 417,401
Consulting fees 389,687
723,921
Professional fees 574,666
1,509,761
Professional
engineering 2,273,902 1,828,059
fees
Research and 111,394
development 2,084,076
Interest expense, 91,719
long-term debt 322,062
Interest expense, 50,112
leases 52,173
Interest income (95,217)
(17,832)
Other income, net
(18,550) -
Foreign exchange (109,459)
gain (82,611)
17,750,625 11,703,678
Loss before
non-controlling
interest (17,243,125) (11,703,678)
Non-controlling (124,904)
interest (364,827)
Net loss and
comprehensive loss (16,878,298) (11,578,774)
Deficit - Beginning
of year (13,810,170) (2,231,396)
Deficit - End of
year (30,688,468) (13,810,170)
Net loss per common
share - basic and
diluted (0.29) (0.24)
Weighted average
number of common
shares
outstanding 48,441,552
58,798,384
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/02/c8586.html
table valign="top" border="0" tr td valign="top" align="left" Catch the Wind Ltd. /td td The Equicom Group /td /tr tr td valign="top" align="left" Claudia Jaques /td td Joe Racanelli /td /tr tr td valign="top" align="left" Vice President and General Counsel /td td Investor Relations /td /tr tr td valign="top" align="left" 703-393-0754 /td td 416-815-0700 ext. 243 /td /tr tr td valign="top" align="left" a href="mailto:cjaques@catchthewindinc.com"cjaques@catchthewindinc.com/a /td td a href="mailto:jracanelli@equicomgroup.com"jracanelli@equicomgroup.com/a /td /tr /table