Millennium Cell Inc. reported a net loss for the quarter ended September 30, 2007 of $3.2 million, or $0.06 per share, as compared to $2.1 million, or $0.04 per share in the same period of 2006. Total revenue and cost reimbursements were approximately $903,000 for the third quarter of 2007, up from $638,000 in the same quarter in the prior year.
Operating expenses for the third quarter of 2007 increased to $2.9 million from $1.9 million in the comparable prior year quarter. The increase was primarily attributable to non-cash charges for the issuance in September 2007 of Series A Preferred Stock valued at $0.7 million to The Dow Chemical Company for the achievement of milestone two of the joint development program between the companies.
On a year-to-date basis, net loss was $8.5 million or $0.16 per share in 2007, as compared to $9.4 million, or $0.20 per share in 2006. Total revenue and cost reimbursement was approximately $1.9 million, up from $1.5 million in the same period of 2006. The increase in revenues and cost reimbursement is due to a larger number of funded U.S. government contracts in 2007 than in the prior year.
Cash used in operating activities in the third quarter was $1.9 million as compared to $1.6 million for the same period of 2006, an increase of $0.3 million. On a year-to-date basis, cash used in operating activities was $5.9 million in 2007 as compared to $5.5 million in the same period of 2006. The increase in cash used in operating activities year over year is primarily due to the growth of government contract billings and the timing of collections of accounts receivables.
"We have taken some important steps towards realizing our vision of offering integrated portable fuel cell products to commercial and military markets," stated H. David Ramm, Millennium Cell Chief Executive Officer. "Our new strategic relationship with Horizon Fuel Cell Technologies, upon completion of definitive documents, will give us the ability to jointly develop and market low-cost, high-value fuel cell products which use our Hydrogen on Demand® fuel cartridges. We believe we are now well-positioned to develop product for both military and commercial applications and to begin generating commercial product revenues in 2008."
"We are working on a number of initiatives to position the company for future growth. We formed an Advisory Board of experienced government and military consultants to help us establish widespread adoption of the company’s hydrogen battery technology and hired an investment bank to advise us on partnering activities, potential acquisitions and capital raising efforts. In addition, we have worked diligently to preserve our Nasdaq listing. We will continue to be aggressive on a number of corporate and product development activities and look forward to updating our investors in the coming months," Ramm concluded.
