Fuel Cell Technologies Ltd. (“FCTL”) reported on the quarter ended June 30, 2006, with financial results, management discussion and analysis, and highlights of corporate activity.
Total revenue for the three months and six months ended June 30, 2006 was $643,573 and $893,539 respectively. Second quarter revenue includes the revenue from the two BOPs delivered to Siemens as well as the majority of the revenue from the Data Package Agreement signed with Siemens in January 2006 and does not reflect the shipments to the Hydrogen Village site at U.™ The revenue from this project will not be recognized until the entire project is largely completed (anticipated for later this year).
Expenses for the three months ended June 30, 2006 were $444,773, comprised mainly of general and administrative expenses of $320,035 and research and development expenses of $74,423. A foreign exchange gain of $32,939 was realized in the quarter. FCTL’s current assets as of June 30, 2006 were $3,227,101, comprised of $311,640 of accounts receivable, a cash balance of $861,341 and inventories of $1,750,501.
During the quarter ending June 30, 2006, there was a net cash inflow of $811,487 as a result of the cash acquired through the Arrangement. The monthly average net cash utilization during the quarter ended June 30, 2006 was $105,480 per month. FCTL’s cash balance raises substantial doubt about the company’s ability to continue as a going concern. In order to continue operations the company must obtain additional financing through the issue of shares and/or from loans, and management continues to pursue various avenues with the objective of providing funds to the business.