HYDG Hydrogen Corp (MM)

HydroGen Corporation (Nasdaq: HYDG), a designer and manufacturer of multi-megawatt air-cooled phosphoric acid fuel cell (PAFC) systems, today announced its financial results for the quarter ended March 31, 2007. HydroGen is currently in the development stage and is expected to remain so for at least the next several quarters. Recent Operational Highlights HydroGen Corporation achieved the mechanical completion and initiation of pre-commissioning activities at its full-scale 400 kW PAFC Module Demonstration and Acceptance Test Facility. This test facility will be utilized for demonstration and acceptance testing of 400 kW fuel cell modules manufactured in HydroGen's Versailles, Pennsylvania manufacturing plant. The 400 kW Module Test Facility will be followed by HydroGen's 400 kW full-scale commercial demonstration power plant, currently under construction at ASHTA Chemicals Inc.'s chlor-alkali facility in Ashtabula, Ohio. The Company's stock began trading under the symbol �HYDG� on The Nasdaq Capital Market on March 6. Previously, the Company�s common stock traded on the OTC Bulletin Board. �Fuel cells are a proven technology and possess many important advantages over fossil-fuel based electricity generators. For example, fuel cell technology is combustion-less, emissions-free, and energy efficient, among other attractive attributes. Rising energy prices, energy security concerns, and the need for cleaner energy sources are driving interest in alternatives to fossil fuels and hydrogen-based solutions such as ours offer one of the most compelling long-term options for sustainable energy production. As we are getting closer to market entry with our product throughout the year 2007, we are ramping up our fuel cell manufacturing operations as well as our sales and marketing activities,� said Dr. Leo Blomen, HydroGen Chairman and CEO. Joshua Tosteson, President of HydroGen Corporation, added: �Interest in our technology among industrial companies continues to grow given the concerns about the global energy market and the increasing interest in alternative fuels. In addition to offering a compelling economic proposition, our technology produces zero-emissions. For the remainder of this year, we will continue to focus on executing our strategies for market introduction. We are financially sound and remain strategically focused on expanding our commercial demonstration efforts and manufacturing activities.� 2007 First Quarter Results For the quarter ended March 31, 2007, HydroGen�s net loss was $3.15 million, or $(0.25) per basic and diluted share, based on the weighted average of 12,769,904 common shares outstanding. This compares with a net loss of $1.26 million, or $(0.17) per basic and diluted share for the quarter ended March 31, 2006, based on the weighted average of 7,614,904 common shares outstanding. HydroGen�s balance of cash, cash equivalents and short-term investments at March 31, 2007, totaled $19.9 million, as compared to a balance totaling $24.1 million at December 31, 2006. Spending on research and development for fiscal 2007 first quarter amounted to $2.4 million, increasing more than 282% over the first quarter of 2006. About HydroGen Corporation HydroGen Corporation is a manufacturer of multi-megawatt fuel cell systems utilizing its proprietary 400-kilowatt phosphoric acid fuel cell (PAFC) technology. Utilizing fuel cell technology originally developed by Westinghouse Corporation, HydroGen Corporation offers a multi-megawatt, zero-emission power generation product that supports the growth of industrial distributed energy. The company targets market applications where hydrogen is currently available and other drivers favoring the adoption of fuel cells are present. Forward-Looking Statements Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding HydroGen's anticipated economically competitive fuel cell systems. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for HydroGen's products, HydroGen's ability to maintain strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of HydroGen's liquidity and financial strength to support its growth, and other information that may be detailed from time to time in HydroGen's filings with the United States Securities and Exchange Commission. HydroGen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. HYDROGEN CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS � MARCH 31,2007 DECEMBER 31, 2006 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,705,024� $ 14,170,530� Short-term investments 10,158,888� 9,889,603� Accounts receivable 436,065� 262,408� Other current assets � 1,190,792� � 1,289,995� TOTAL CURRENT ASSETS 21,490,769� 25,612,536� Property and equipment, net 3,928,514� 3,469,533� Other assets � 57,067� � 57,017� TOTAL ASSETS $ 25,476,350� $ 29,139,086� LIABILITIES AND SHAREHOLDERS� EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 1,039,900� $ 1,659,441� Capital lease obligations, current portion � 74,188� � 72,295� TOTAL CURRENT LIABILITIES 1,114,088� 1,731,736� � LONG-TERM LIABILITIES Capital lease obligations, net of current portion � 100,199� � 119,773� TOTAL LIABILITIES $ 1,214,287� $ 1,851,509� Common stock, par value $0.001, authorized 65,000,000 shares, 12,769,904 issued and outstanding at March 31, 2007 and December 31, 2006, respectively. � 12,770� 12,770� Additional paid-in capital 42,715,868� 42,595,815� Deficit accumulated during the development stage � (18,466,575) � (15,321,008) TOTAL SHAREHOLDERS� EQUITY � 24,262,063� � 27,287,577� TOTAL LIABILITIES AND SHAREHOLDERS� EQUITY $ 25,476,350� $ 29,139,086� HYDROGEN CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS � FOR THE QUARTERS ENDEDMarch 31, NOVEMBER 11,2001(INCEPTION)THROUGH March 31, 2007 2007� 2006� Demonstration Grant Revenue $ 436,065� $ 49,433� $ 1,183,488� Costs and expenses (including stock-based compensation expense of $120,053, $91,039, and $1,946,233 respectively) � 3,846,733� � 1,406,178� � 19,364,887� LOSS FROM OPERATIONS (3,410,668) (1,356,745) (18,181,399) Interest and other income 268,993� 94,618� 1,513,012� Interest and other financing charges (3,892) -� (774,377) Charge for repricing conversion price of convertible debt � -� � -� � (875,000) � NET LOSS $ (3,145,567) $ (1,262,127) $ (18,317,764) � Weighted average common shares outstanding (basic and diluted) � 12,769,904� � 7,614,904� Net loss per share (basic and diluted) $ (0.25) $ (0.17)