Medis Technologies Ltd. (NASDAQ:MDTL) reported financial results today for the quarter and six months ended June 30, 2007.
For the quarter ended June 30, 2007, the net loss attributable to common stockholders was $9,783,000, or $.29 per share, based on 33,448,397 weighted average common shares, compared to a net loss attributable to common stockholders of $13,722,000, or $.44 per share, based on 31,030,842 weighted average common shares for the quarter ended June 30, 2006.
For the six months ended June 30, 2007, the net loss attributable to common stockholders was $19,118,000, or $.57 per share, based on 33,441,443 weighted average common shares, compared to a net loss attributable to common stockholders of $19,618,000, or $.66 per share, based on 29,637,781 weighted average common shares for the six months ended June 30, 2006.
The net loss attributable to common stockholders was impacted by non-cash expenses related to stock options accounted for in accordance with SFAS 123®, “Share Based Payment” of approximately $1,693,000 and $3,350,000, for the quarter and six months ended June 30, 2007 respectively, and by dividends declared and paid on the Company’s Series A cumulative convertible perpetual preferred stock of approximately $1,043,000 and $2,044,000 for the quarter ended and six months ended June 30, 2007, respectively.
During both the quarter and six months ended June 30, 2006, the Company incurred costs aggregating $8,491,000 (including $8,266,000 as the value of shares issued in lieu of future interest payments) related to the April and May 2006 exchanges of its common stock for all $49,000,000 of its then outstanding senior convertible notes. As of June 30, 2007, the Company’s fully automated production line was in place in Celestica’s facilities in Galway, Ireland and the process of qualifying that line for high volume production is underway.
Commenting on the report, Robert K. Lifton, Chairman & CEO of Medis Technologies, stated: “The net cash used in operating activities of approximately $6.7 million for the quarter ended June 30, 2007 is consistent with the prior quarter ended March 31, 2007 and, as compared to the quarter ended June 30, 2006, reflects increased research and development costs relating to preparing our 24/7 Power Pack for high volume production, such as product testing, quality control, raw materials, cost reduction and other R&D activities, together with increased selling, marketing, general and administrative costs and purchases of materials and components, as we position ourselves for high volume production.
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