Medis Technologies Reports Second-Quarter Results
Medis Technologies Ltd. (New York, NY) reported its results for the quarter ended June 30, 2001, noting that non-cash items primarily resulting from accounting treatment relating to its June 2000 acquisition of the shares of Medis El Ltd., which it did not already own, had a material effect on this quarter's financial statements. As expected, for the three months ended June 30, 2001, the net loss attributable to common shareholders was $7.44 million, or $0.44 per share. In comparison, the net loss attributable to common shareholders was $7.93 million, or $0.62 per share, for the three months ended June 30, 2000.
For the six months ended June 30, 2001, the net loss attributable to common shareholders was just over $15.0 million, or $0.89 per share, compared to a net loss attributable to common shareholders of $9.471 million, or $0.81 per share, for the six months ended June 30, 2000. For the six- and three-month periods ended June 30, 2000, the net loss attributable to common shareholders included the value of warrants issued of $2.887 million. No operating revenues were recognized in either of the six- and three-month periods ended June 30, 2001, and 2000.
Chairman and CEO Robert Lifton noted, "As we have reported in earlier statements, the accounting treatment of our acquisition of Medis El shares; options to Medis El employees, officers and directors that were transferred to Medis Technologies; options and warrants issued; and other non-cash items continue to affect our financial statements in a major way by impacting amortization of intangible assets and non-cash compensation expense. We expect that the FAS 142 issued by the Financial Accounting Standards Board in June of this year, which changes the treatment of amortization of goodwill effective January 1, 2002, will have a significant impact on our amortization of goodwill after that date."