MANASSAS, VA, Aug. 29, 2011 /CNW/ -- - Five separate sales
agreements totaling 34 Vindicator® units, the most active in the
Company's history - MANASSAS, VA, Aug. 29, 2011 /CNW/ - Catch the
Wind Ltd. (TSXV: CTW), providers of laser-based wind sensor
products and technology, today reported its financial results for
the three-and six-month periods ended June 30, 2011. All
figures are in U.S. dollars unless otherwise stated. "The second
quarter of 2011 was the most active quarter for sales in our
history with the completion of five separate sales agreements
totaling 34 Vindicator units; highlighted by our largest order to
date, our second licensing agreement, as well as the potential for
substantial follow on orders," said Phil Rogers, President and CEO
of Catch the Wind. "We look forward to further developing our
operational capabilities and supporting the production and
manufacturing side of the business. The completion of our
CDN$15.1 million equity offering subsequent to quarter-end provides
us additional resources to start building out our commercial
operations, support our ongoing sales effort, and continue the
advancement of our revolutionary product." Selected Q2 2011
Financial and Operational Highlights -- Entered into an agreement
for the sale of 20 Vindicator® LWS units to TransAlta Corporation,
Canada's largest independent renewable energy provider, with an
option to purchase additional units. The sales agreement was the
largest to date for wind turbine control. -- Entered into an
agreement for the sale of six Vindicator® LWS units to affiliated
entities of Invenergy Wind LLC, a developer, owner and operator of
large-scale renewable and other clean energy generation facilities
in North America and Europe, for installation in groups of two
located at three different Invenergy wind farms in the US. --
Entered into an agreement for the sale of six Vindicator® LWS units
to Boralex (TSX: BLX), a power producer with an installed capacity
of 700 MW across North America and France, with the option to
purchase hundreds of additional units over a set period. -- Entered
into an exclusive worldwide licensing agreement with AXYS
Technologies to integrate the Vindicator® LWS into an AXYS system
for land-based wind resource assessment applications. AXYS will
purchase a minimum of 58 high-precision Vindicator® LWS units over
the next five years. -- Entered into an agreement for the sale of a
Vindicator® LWS unit to Kruger Energy Port Alma, a 44-turbine,
101.2 MW wind farm in Ontario, Canada to be integrated to a SWT -
2.3 MW turbine, expanding the number of turbine makes and models on
which Catch the Wind has installed turbine yaw control systems. --
Entered into an agreement for the sale of a Vindicator® LWS unit to
the Illinois Institute of Technology, which was subsequently
installed on its GE 1.5 MW Test Turbine, operated by an affiliate
of Invenergy LLC. Highlights Subsequent to Quarter-end -- Completed
an equity offering for aggregate proceeds of approximately CDN$15.1
million. -- Signed a letter of intent to enter into a collaborative
agreement with TechnoCentre éolien to install a Vindicator® unit on
one of its REpower MM92 2.05 MW turbines located in Québec, which
will validate the Vindicator® for use in cold weather and harsh
winter conditions, broadening potential markets especially in
Québec where over 3,000 MW of wind power is expected to be
installed over the next three to four years. -- Leased, with an
option to buy, a Vindicator® unit to a leading manufacturer of wind
turbines for up to six months, marking the first lease agreement
for a Vindicator® unit and creating a new source of cash flow. --
Announced the transitioning of Phil Rogers' role from CEO and
President of the Company to Special Advisor, commencing December
31, 2011 or earlier if a suitable CEO candidate is found prior to
December 31, 2011. -- Appointed Dr. Jo Major, Jr. as non-executive
Chairman of the Board of Directors. Financial Performance Catch the
Wind did not recognize revenue for the quarter ended June 30, 2011
or for the comparable period in 2010. Catch the Wind
generates revenue from the sale and rental of its laser wind
sensing products. On a six-month basis, Catch the Wind
generated $390,000 for 2011 compared to no revenue for the same
period in 2010. The Company operated as a development stage
company from its inception until June 15, 2010, therefore, had not
recognized any revenues or commenced its principal commercial
operations. Operating expenses for Q2 2011 were $2.3 million, down
40.9% from $3.9 million for the corresponding period of last
year. The approximately $1.6 million net decrease in expenses
is largely due to three factors: an approximately $1.3 million
aggregate decrease in inventory valuation adjustment expense and an
approximately $1.8 million increase in non-cash gain related to the
change in fair value of the Company's warrant liability, which were
partially offset by an approximately $1.7 million increase in
research and development expense. It is important to note
that expenditures for research and development efforts, while
comparable on a period-to-period basis, are reflected differently
in the comparative financial statements due to the Company's
transition from a development stage company to a commercial
enterprise in June 2010. Such R&D fees were capitalized
in Q2 of 2010, whereas they were recorded as a current period
expense in Q2 2011. For the six-month period of FY2011 operating
expenses were $10.2 million, up 44.0% from $7.1 million for
FY2010. The approximately $3.1 million increase in operating
expenses is partially attributable to an increase in research and
development expense of $3.1 million due to the capitalization
of these engineering services related to the development of the
Company's products during the first six months of 2010 as opposed
to recording them as a current period expense during the first six
months of 2011, offset in part by a $1.3 million decrease in
inventory valuation expense and a $0.7 million decrease in
professional engineering fees. Also contributing to the
expense variance was a $1.1 million increase in cost of sales
(2010-NIL) and a $0.9 million increase in the non-cash loss related
to the change in fair value of the Company's warrant liability.
Cost of sales for the quarter was $273,797. There was no cost
of sales for the corresponding quarter of 2010 as the Company was a
development stage enterprise at that time. On a six-month
basis, cost of sales was $1.1 million compared to nil for the same
period in 2010. Catch the Wind recorded a net loss for Q2 2011 of
$2.3 million or $0.03 per share. These compare to a net loss
of $3.9 million, or $0.07 per share, for the same period of 2010.
On a six-month basis, Catch the Wind generated a net loss of $9.8
million or $0.12 per share compared to a net loss of $7.1 million
or $0.12 per share for the same period of FY2010. At June 30, 2011,
Catch the Wind had a working capital deficit of $1.5 million,
including cash and cash equivalents of $0.3 million, compared to
working capital of $6.9 million and cash and cash equivalents of
$6.8 million at December 31, 2010. Catch the Wind has filed its
financial statements for the three- and six-month period ended June
30, 2011 and related Management's Discussion and Analysis
(MD&A) with securities regulatory authorities. Catch the
Wind's financial statements, MD&A and related documents are
available via SEDAR as well as through the Company's website,
www.catchthewindinc.com. Conference Call Catch the Wind will host a
conference call to discuss its Q2 2011 financial results on
Wednesday, September 7, 2011 at 10:00 a.m. EST. The delay
between the conference call and the release of financial results is
due to scheduling conflicts with the senior management team. To
access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 15 minutes prior
to the beginning of the call to ensure participation. A
question and answer session for analysts and institutional
investors will follow management's presentation. A live audio
webcast of the conference call will be available at
www.catchthewindinc.com . Please connect at least 15 minutes prior
to the conference call to ensure adequate time for any software
download that may be required to join the webcast. The webcast will
be archived at the above web site for 30 days. A taped rebroadcast
will be available to listeners until 12 a.m. ET on Wednesday,
September 14, 2011. To access the rebroadcast, please dial
416-849-0833 or 1-855-859-2056 and enter passcode 94203409,
followed by the number sign. About Catch the Wind Ltd. Catch the
Wind Ltd. is a high-growth technology company headquartered in
Manassas, Virginia. The company was founded in 2008 to develop and
manufacture the Vindicator® laser wind sensor. Catch the Wind
serves the commercial market sector for laser based wind sensor
systems, recognized as the "gold standard" in wind measurement. The
company is focused on becoming a major contributor in making clean,
renewable wind energy more affordable and profitable. For more
information, visit www.catchthewindinc.com. Forward-Looking
Information This news release includes certain forward-looking
statements within the meaning of Canadian securities laws.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed in such
forward-looking statements. Forward-looking statements in this news
release, include, but are not limited to, economic performance and
future plans and objectives of Catch the Wind. Any number of
important factors could cause actual results to differ materially
from these forward-looking statements as well as future results.
Although Catch the Wind believes that the assumptions and factors
used in making the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply
as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed timeframes or at all.
Catch the Wind disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. Catch
the Wind Ltd. Condensed Consolidated Interim Balance Sheets
(Unaudited) June 30, December January 1, 31, 2011 2010 2010 (Note
5) (Note 5) (Expressed in $ $ $ United States Note dollars) Assets
Current assets: Cash and cash 4 322,043 6,746,467 10,616,065
equivalents Accounts 416,719 202,157 119,627 receivable Inventory 6
2,526,288 2,605,224 1,667,997 Prepaid 369,455 228,262 107,719
expenses and other assets 3,634,505 9,782,110 12,511,408
Non-current assets: Property and 7 5,476,321 5,794,514 6,466,248
equipment Intangible 8 5,313,324 5,990,404 5,923,105 assets Other
assets 81,109 81,109 77,045 10,870,754 11,866,027 12,466,398 Total
assets 14,505,259 21,648,137 24,977,806 Liabilities and Equity
Current liabilities: Accounts 3,326,334 2,043,448 1,339,905 payable
and other liabilities Warranty 13 37,500 31,250 - provision Due to
related 16 1,129,788 74,388 355,685 party Obligations 12 120,128
188,064 166,206 under finance leases Borrowings 17, 18 185,027
178,530 166,213 Deferred 376,200 333,500 360,000 revenue and
customer deposits 5,174,977 2,849,180 2,388,009 Non-current
liabilities: Obligations 12 11,967 41,467 212,934 under finance
leases Warrant 10 848,003 596,117 liability Borrowings 17, 18
4,121,361 4,215,527 4,394,057 4,981,331 4,853,111 4,606,991 Total
10,156,308 7,702,291 6,995,000 liabilities Equity Equity
attributable to owners of the Company: Capital stock 9 8,049 8,049
5,488 Contributed 42,778,241 42,739,096 31,266,174 surplus Deficit
(38,525,649) (28,930,873) (13,481,028) Non-controlling 88,310
129,574 192,172 interest Total equity 4,348,951 13,945,846
17,982,806 Total 14,505,259 21,648,137 24,977,806 liabilities and
equity Catch the Wind Ltd. Condensed Consolidated Interim
Statements of Loss and Comprehensive Loss (Unaudited) Three Three
Six months Six months months months ended ended ended ended June
30, June 30, June 30, June 30, 2011 2010 2011 2010 (Note 5) (Note
5) (Expressed in $ $ $ $ United States Note dollars) Revenue - -
390,000 - Expenses Cost of sales 6, 273,797 - 1,056,704 - 16
Salaries and 429,718 646,785 1,082,027 1,432,323 benefits General
and 16 731,288 573,370 1,584,502 1,342,355 administrative Inventory
6 (19,052) 1,277,461 7,948 1,331,838 writedown - beta units
Amortization 8 338,540 59,540 677,080 63,280 of intangible assets
Depreciation 7 159,019 166,546 318,116 332,287 of property and
equipment Sales and 121,163 279,297 245,702 327,814 marketing
Consulting 236,593 168,119 403,851 279,109 fees Professional
345,126 541,975 601,349 944,772 fees Professional 16 191,995
551,840 480,731 1,195,441 engineering fees Research and 16
1,831,385 154,325 3,340,583 282,096 development Finance costs
86,795 98,753 176,419 199,258 Interest (679) (6,871) (2,113)
(13,692) income Other income, 17 (17,749) - (17,749) - net Loss
(gain) on 10 (2,408,442) (625,055) 251,886 (625,055) fair value of
warrant liability Foreign 205 4,165 7,075 3,493 exchange loss
2,299,702 3,890,250 10,214,111 7,095,319 Net loss and (2,299,702)
(3,890,250) (9,824,111) (7,095,319) total comprehensive loss Net
loss and total comprehensive loss attributable to: Owners of the
(2,185,797) (3,810,277) (9,594,776) (6,933,264) Company (113,905)
(79,973) (229,335) (162,055) Non-controlling interest (2,299,702)
(3,890,250) (9,824,111) (7,095,319) Net loss per (0.03) (0.07)
(0.12) (0.12) share - basic and diluted Weighted average number of
common shares outstanding 80,491,919 56,940,807 80,491,919
55,918,071 To view this news release in HTML formatting,
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table border="0" valign="top" tr td Catch the Wind
Ltd. /td td TMX Equicom /td /tr tr td
Claudia Jaques /td td Philip Dale /td
/tr tr td Vice President and General Counsel /td
td Investor Relations /td /tr tr td
703-393-0754 /td td
416-815-0700 ext. 253 /td /tr tr td a
href="mailto:cjaques@catchthewindinc.com"cjaques@catchthewindinc.com/a
/td td a
href="mailto:pdale@equicomgroup.com"pdale@equicomgroup.com/a /td
/tr /table p /p
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