Medis Technologies Ltd. (New York) reported financial results for the third quarter and nine months ended September 30, 2005. For the quarter ended September 30, 2005, the net loss attributable to common shareholders was $4,595,000, or $0.17 per share, based on 27,582,802 weighted average shares, compared to a net loss attributable to common shareholders of $4,828,000, or $0.18 per share, based on 26,252,602 weighted average shares, for the quarter ended September 30, 2004.
For the nine months ended September 30, 2005, the net loss attributable to common shareholders was $13,308,000, or $0.49 per share, based on 27,327,022 weighted average shares, compared to a net loss attributable to common shareholders of $11,432,000, or $0.44 per share, based on 26,106,480 weighted average shares for the nine months ended September 30, 2004. During both the three and nine months ended September 30, 2005, costs incurred related to the company's fuel cell technologies increased as the company continued to refine its Power Pack products and prepare for commercial production.
Cash expenditures for operations for the quarter were about $3.4 million, which is lower than the approximately $4.4 expended in the prior quarter. Capital expenditures were $668,000 compared to $755,000 for the prior quarter. As of September 30, 2005, the company had a total of approximately $53,400,000 in cash and cash equivalents and short-term investments, as well as an unused $7,000,000 revolving credit line. As of that date, the potential proceeds from in-the-money options and warrants amounted to $10,500,000, although there is no assurance that they will be exercised.
Medis Technologies Chairman and CEO Robert Lifton commented, "Looking forward, we expect funds used for capital expenditures to increase at a significant rate, beginning with our next report for the fourth quarter as we continue building the automated line as well as the semi-automated line for making our Power Packs. In October, we made the down payment of about $1.7 million to Ismeca under the contract with them, which represented 15 percent of the total contract price of $11 million. During 2006, we expect to make additional payments to Ismeca as they meet the contract milestones. We also expect to pay for the fuel line being established in Ireland to produce the fuel for our Power Packs and the framing technology established in Ireland for framing the electrodes that will be made in Israel and shipped to Ireland, all to be managed by Celestica."