Message #4 From:
NewsBot Date: November 21, 2006 03:55:00 AM
HYDP News Hydrogen Power Announces Third Quarter Financial Results
ENGLEWOOD, Colo. & SEATTLE--(BUSINESS WIRE)--Hydrogen Power, Inc. (“HPI”
or the “Company”)
(OTCBB: HYDP), formerly Hydrogen Power International, Inc. and
Equitex, Inc., announced today its unaudited financial results for the
three and nine months ended September 30, 2006. The financial results
presented are those of FastFunds Financial Corporation, Key Financial
Systems, Inc., Nova Financial Systems, Inc. and Denaris Corporation, on
a consolidated basis with those of the Company’s
recently acquired hydrogen technology business since March 14, 2006.
FastFunds sold substantially all of its assets in January 2006 and Key
ceased “run-off”
operations in the fourth quarter of 2003, accordingly, FastFunds’
and Key’s results for both periods are
presented in a one-line presentation and are included in “income
(loss) from discontinued operations.”
The September 30, 2006 statements of operations contain certain non-cash
charges totaling $6,407,504 including expense incurred upon issuance of
stock and warrants of $2,054,915, deferred income taxes of $1,333,000,
stock-based compensation of $693,588, provision for losses on notes and
interest receivable, including bad debt expense of $518,392,
depreciation and amortization expense of $1,287,685, amortization of
discounts related to warrants attached to notes payable of $352,724, and
non-cash compensation expense of $167,200.
The September 30, 2005 statements of operations contain certain non-cash
charges totaling $5,083,770 including provision for losses on notes and
interest receivable, including bad debt expense of $1,812,282,
amortization of discount on convertible promissory notes payable related
to beneficial conversion features of $1,588,729, depreciation and
amortization expense of $1,143,631, loss on disposal of assets of
$295,934, amortization of discounts related to warrants attached to
notes payable of $203,694, expense incurred upon issuance of stock and
warrants of $30,000, and stock-based compensation of $9,500.
Hydrogen Power, Inc. has licensed and has developed a patented
technology for producing hydrogen gas in a process called Hydrogen NowTM.
Hydrogen Now involves a chemical reaction between water,
aluminum, and an environmentally friendly catalyst to cleanly and
efficiently produce hydrogen on-site and on-demand. FastFunds Financial
Corporation (OTCBB: FFFC), a majority-owned publicly traded subsidiary,
recently sold a majority of its operating assets and currently has
limited business operations.
Hydrogen Power, Inc. and Subsidiaries
(formerly Hydrogen Power International, Inc. and Equitex, Inc.)
Selected Condensed Consolidated Financial Data
Three and nine months ended September 30, 2006 and 2005
(Unaudited)
Three months ended
Nine months ended
September 30, 2006
September 30, 2006
September 30, 2006
September 30, 2006
Credit card income, net
30,363
40,995
97,731
159,573
Corporate selling, general and administrative expenses
(2,168,317)
(960,487)
(4,559,356)
(3,985,877)
Loss from operations
(2,137,954)
(919,492)
(4,461,625)
(3,826,304)
Other income (expense), net
(262,877)
(231,685)
(904,655)
(405,875)
Loss from continuing operations before income taxes
(2,400,831)
(1,151,177)
(5,366,280)
(4,232,179)
Income tax expense
(237,000)
-
(974,000)
-
Loss from continuing operations
(2,637,831)
(1,151,177)
(6,340,280)
(4,232,179)
(Loss) gain from discontinued operations, net of income taxes
(282,009)
(1,251,287)
129,076
(3,854,221)
Net loss
(2,919,840)
(2,402,464)
(6,211,204)
(8,086,400)
Accretion of preferred stock
(842,000)
(54,800)
(1,694,000)
(54,800)
Deemed preferred stock dividends
(21,000)
(158,566)
(94,000)
(158,566)
Exchange of Series G & I convertible preferred stock in excess of
carrying value
-
(212,000)
-
(212,000)
Net loss applicable to common stockholders
$ (3,782,840)
$ (2,827,830)
$ (7,999,204)
$ (8,511,766)
Basic and diluted loss per share
$ (0.30)
$ (0.39)
$ (0.72)
$ (1.31)
Weighted average number of common shares outstanding
12,177,648
7,245,296
11,085,910
6,503,077
This press release may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. These statements are based on the
Company's current expectations as to future events. However, the
forward-looking events and circumstances discussed in this press release
might not occur, and actual results could differ materially from those
anticipated or implied in the forward-looking statements.
