Millennium Cell Inc. reported a net loss for the quarter ended June 30, 2007 of $2.7 million, or $0.05 per share, as compared to $4.7 million, or $0.10 per share in the same period of 2006. Total revenue and cost reimbursements were approximately $566,000 for the second quarter of 2007, up from $373,000 in the same quarter in the prior year. On a year-to-date basis, total revenue and cost reimbursements were approximately $1.0 million, up from $0.7 million in the same period of 2006. The increase in revenues and cost reimbursements is due to a larger number of funded contracts with the U.S. Air Force in 2007 than in the prior year.
Total operating expenses on a year-to-date basis declined from 2006 levels due to a non-cash charge of $2.1 million related to preferred stock that was issued to The Dow Chemical Company during the second quarter of 2006. On a year-to-date basis, cash used in operating activities was $3.9 million in 2007 as compared to $4.1 million in the same period of 2006.
"We continue to pursue the commercialization of our hydrogen battery technology with our various licensees," stated H. David Ramm, Millennium Cell Chief Executive Officer. "During the quarter, products which use our technology for soldier power continue to be tested by the military. We also announced that Protonex Technology Corp., a licensee of Millennium Cell’s Hydrogen on Demand® technology, provided the fuel cell system that powered the flight of AeroVironment’s ‘Puma’ small unmanned aircraft system (UAS) for nearly five hours, which significantly exceeded the flight record for this small UAV. We are very pleased to communicate these accomplishments."
"Earlier this week we announced the completion of Milestone 2 under our joint development agreement with The Dow Chemical Company. Through our collaboration, we have been able to advance the development of our hydrogen battery technology which has resulted in the delivery of fuel cell powered products to the U.S. Air Force for testing and evaluation by our licensee Protonex Technology Corp.. This delivery marked the achievement of Milestone 2. With Dow, we are developing Solid State HOD™ technology, an innovative approach to hydrogen storage which offers unlimited shelf life, no moving parts and a significant extension of the runtime of fuel cell powered consumer electronic devices. The final phase of our agreement with Dow will focus on this technology which will significantly enhance our ability to address the consumer marketplace."
"As a result of the milestone achievement, Dow will receive shares of the company’s Series A Preferred Stock within 70 days of June 30, 2007. The amount of securities that Dow will receive will be based on the volume weighted average trading price of Millennium Cell’s common stock for the 30 days prior to issuance in accordance with the agreements. For more details, please refer to the company’s Form 8-K filed on July 26, 2007 with the Securities and Exchange Commission," Ramm concluded.
