DynaMotive Files 10Q for 1st Quarter 2000
16 May 2000
DynaMotive Files 10Q for 1st Quarter 2000 and Comments on Highlights for the Quarter
VANCOUVER, May 16 /CNW-PRN/ - DynaMotive Technologies Corporation (OTCBB:
DYMTF) today filed its financial results for the first quarter of 2000.
President & CEO Andrew Kingston also outlined highlights of activities during
the quarter.
Commenting on first quarter activities, Mr. Kingston said, ``DynaMotive
made significant technical, corporate and financial advances during the first
quarter of 2000. In 1999, we set out to build upon the fundamental strengths
of the Company, strategically focus our operations and lay the foundation that
has resulted in the Company's overall improved performance in the past
quarter. We will continue to apply the same principles that brought us this
far and in doing so continue to grow DynaMotive.''
As a result of a round of financing concluded in first quarter of 2000,
total assets of the Company increased to $6,084,681 from $2,312,435 as at
December 31, 1999. Cash and term deposits increased to $3,993,706 compared
with $223,769 as at December 31, 1999, while liabilities decreased to
$775,247 from $892,850.
On a quarter-to-quarter basis, revenues for the first quarter increased
to $296,224 compared with $250,002 in 1999. Use of cash in operating
activities remained virtually unchanged on a quarter-to-quarter basis
($603,717 for 2000 vs. $603,729 for 1999).
The loss for the first quarter of 2000 increased to $1,149,055 as
compared to $602,690 for the same period in 1999. However, this increase
reflects expenses such as settlement of outstanding staff overtime, 1999 staff
performance bonuses and Board compensation for services rendered for all of
1999 and the first quarter of 2000. On an adjusted basis, the operational
loss for the period would be $814,124 as compared with $602,690 for the same
period in 1999, reflecting the increase in management structure in the
Company.
Highlights from the 1st Quarter 2000 include:
Acquisition of the Pyrolysis Patent from Resource Transform International
(RTI). The Company acquired the BioOil pyrolysis patent from RTI in February
2000. Acquisition of the patent safeguards the future value of the Company and
its shareholders by owning outright the technology to produce BioOil. The
acquisition was completed in an all stock transaction.
Completion of New Round of Financing: During first quarter, the Company
closed private placements totalling $4,389,900. The majority of the funds were
secured at a premium to market. No commissions in relation to the placements
were paid by the Company. Through these placements the Company further
strengthened its investor base in Europe, North America and the Far East.
Corporate Structuring: To efficiently develop and market its technology,
the Company established a new Technology Group headed by Chief Technology
Officer Keith Morris and further strengthened its technical team. To augment
its BioOil business development operations, the Company appointed Antony
Robson as Managing Director of its European subsidiary and James Acheson as
Chief Operating Officer of its US subsidiary; Jonathan Rhone, C.O.O., has
taken responsibility for operations in Canada. The Company is now aggressively
pursuing commercial opportunities and strategic partnerships in these markets.
BioOil Plant Scale Up: The Company began construction of a new 10 tonne
per day (tpd) BioOil plant with a capacity of five times its current pilot
plant. It is also designing its first stage commercial plant with a capacity
of 25 tpd of biomass input. The plant under construction is expected to be
commissioned in fourth quarter of this year. It is being built to commercial
standards and will incorporate all advances made to date by the Company's
technical team. The Company is working closely with engineering and supply
partners in preparation for the roll out of commercial size plants.
Validating BioOil Fuel Applications: During the quarter, combustion tests
were successfully conducted by Orenda Aerospace in their gas turbines,
underscoring the quality of DynaMotive's BioOil as well as its potential
use in power generation packages. The Company continues to pursue strategic
partnerships with other turbine and engine manufacturers and expects to report
shortly on its progress.
Expanding Market Reach for BioOil Technology/Feedstock Validation: The
Company completed a successful production run of high quality BioOil made from
sugar cane bagasse, expanding BioOil market application to sugar producing
countries and creating significant potential demand for its BioOil technology
worldwide.
Research & Development: The Company continued to develop its two tiered
R&D program in partnership with RTI. Through this program, it expects to
further advance its technological leadership position and expand the market
application for its technology through applied research into new uses for
BioOil. The strength of the program resulted in the Company being awarded a
Cdn $250,000 research grant from the Canadian government.
DynaPower Metal Cleaning. The DynaPower division, run independently from
the Company's BioOil division, continued in its growth momentum following a
record year of sales. During the quarter, it completed additional orders and
accelerated marketing efforts for its wire cleaning systems.
Conferences & Trade Fairs. The Company has attended two important
international conferences and trade fairs so far this year. It presented its
BioOil technology at the GLOBE 2000 environmental exhibition in Vancouver, BC
and also showcased its DynaPower technology at WIRE 2000 in Dusseldorf,
Germany. The Company will participate as a co-sponsor in the 1ST World
Conference & Exhibition On Biomass For Energy & Industry in Seville, Spain in
June.