Clean Diesel Technologies Reports First Quarter Results
STAMFORD, Conn.--May 7, 2002--Clean Diesel Technologies Inc. (CDT) (EBB:CDTI) (AIM:CDT) (AIM:CDTS) today announced results for its first quarter ended March 31, 2002.
Revenue in this year's first quarter was $71,000 with a net loss attributable to common stockholders of $662,000, or $0.06 loss per share, compared with revenue of $24,000 and a net loss of $760,000, or $0.29 loss per share, in the first quarter of 2001.
Product revenue in the first quarter of this year increased to $60,000 from $13,000 in the year earlier period, while license and royalty revenue remained flat. The 2002 first quarter net loss included $95,000 of non-cash compensatory stock warrant expense for warrants issued in 2001, but vested in 2002, and the 2001 first quarter net loss included non-cash charges for preferred stock dividends of $201,000.
Chairman and CEO Jeremy Peter-Hoblyn commented: "Since the beginning of this year, we have seen several very important developments occur that we believe could enhance the markets for our products and technologies. These include the publishing of the final procedure by the California Air Resources Board (CARB) for verification of retrofit systems for emission reduction from diesel engines, which is scheduled to be adopted on May 16, and the U.S. Environmental Protection Agency's (EPA) voluntary retrofit program for the remaining 49 states, which has a similar verification program protocol in preparation.
"In addition, the European Union Commission Motor Vehicle Emission Group (MVEG) is developing a protocol designed to enable countries to provide tax incentives for cleaner fuels, including fuel additives. This protocol is likely to be published during the summer."
Compliance with the CARB program is mandatory and will start immediately with a target to retrofit 1.2 million engines by 2007. The company is in the process of applying for verification of its patented Platinum Plus® diesel fuel catalyst with both the CARB and the U.S. EPA.
"The market opportunities for Platinum Plus will be greatly enhanced as these programs become confirmed," Peter-Hoblyn said.
During this year's first quarter the company shipped three prototype units of the mobile ARIS(TM) nitrogen oxide (NOx) reduction system to Mitsui & Co. Ltd. of Japan.
"We are anticipating expanding the existing license with Mitsui for use of ARIS on stationary diesel engines to include using ARIS for mobile applications in Japan, as well," Peter-Hoblyn said.
For the first quarter of 2002, G&A was $556,000 and R&D was $111,000 as compared with $435,000 and $84,000, respectively, for the year-earlier period. These increases were the result of additional sales and marketing resources, incurred initial planning expense in support of verification of Platinum Plus with the CARB and the U.S. EPA and an absorbed non-cash compensatory stock warrant expense.
The company's balance sheet at March 31, 2002 contained cash and cash equivalents of $3.3 million, total assets of $3.7 million and $381,000 of long-term liabilities.
As announced in December 2001, the company raised $5.2 million through the issuance of 2.6 million shares of common stock while at the same time converting all of its preferred stock to 5.9 million shares of common stock and listing all of the common stock on the Alternative Investment Market (AIM) of the London Stock Exchange.
About Clean Diesel Technologies Inc.
Clean Diesel Technologies is a specialty chemical company with patented advanced catalyst technologies that reduce emissions from diesel engines while simultaneously improving fuel economy and power. Products include Platinum Plus fuel catalysts and ARIS 2000 urea injection systems for selective catalytic reduction of NOx.
Certain statements in this news release constitute "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statement involve known or unknown risks, including those detailed in the company's filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Note to Editors: Platinum Plus is a registered trademark of Clean Diesel Technologies Inc.
CLEAN DIESEL TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
Three Months Ended
March 31,
2002 2001
Revenue:
Product revenue $ 60 $ 13
License and royalty revenue 11 11
Total revenue 71 24
Costs and expenses:
Cost of sales 44 7
General and administrative 556 435
Research and development 111 84
Patent filing and maintenance 28 48
Loss from operations (668) (550)
Interest income (15) (3)
Interest expense 9 12
Net loss before preferred stock dividend (662) (559)
Preferred stock dividend (non-cash) 0 201
Net loss attributed to common
stockholders $ (662) $ (760)
Basic and diluted loss per common share $ (0.06) $ (0.29)
Weighted average number of common shares
outstanding -- basic and diluted 11,214 2,661
CLEAN DIESEL TECHNOLOGIES INC.
BALANCE SHEET
(in thousands except share data)
March 31, Dec. 31,
2002 2001
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 3,254 $ 4,023
Accounts receivable 13 197
Inventories 291 296
Other current assets 105 96
Total current assets 3,663 4,612
Other assets 44 46
Total assets $ 3,707 $ 4,658
Liabilities and Stockholders' Deficit
Current liabilities:
Notes payable $ 0 $ 250
Accounts payable and accrued expenses 411 558
Total current liabilities 411 808
Deferred compensation and pension benefits 381 368
Total long-term liabilities 381 368
Stockholders' equity:
Preferred stock, par value $0.05 per share,
authorized 80,000 shares, no shares issued
and outstanding -- --
Series A convertible preferred stock, par
value $0.05 per share, $500 per share
liquidation preference, authorized 20,000
shares, no shares issued and outstanding -- --
Common stock, par value $0.05 per share,
authorized 15,000,000 shares, issued and
outstanding 11,214,280 shares 561 561
Additional paid-in capital 27,153 27,058
Accumulated deficit (24,799) (24,137)
Total stockholders' equity 2,915 3,482
Total liabilities and stockholders'
equity $ 3,707 $ 4,658