Kraken Reports Q2 2016 Financial Results
Recent Financing Strengthens Balance Sheet for Growth Initiatives
ST. JOHN'S, NL--(Marketwired - August 30, 2016) - Kraken Sonar Inc. (TSX VENTURE: PNG) announced it has filed its financial results for the second quarter ended June 30, 2016. Additional information concerning the Company, including its condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the quarter ended June 30, 2016, can be found at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollar denominated.
Q2 2016 Financial Highlights
- Revenues for the three months ended June 30, 2016 were $465,543, up 9% compared to $426,588 in the comparable year ago period. In the quarter, Kraken recognized revenue from 3 customers including Elbit and Woods Hole Oceanographic Institution.
- Year-to-date revenue of $1,176,233 is up 7% from $1,102,594 from the year ago six-month period.
- The loss from operating activities in the June quarter was $471,237 versus a loss from operating activities of $327,687 in the year ago quarter.
- At the end of Q2, 2016, Kraken had over $1.6 million in customer contract milestone payments and awarded financial contribution payments, not yet received. This includes $529,593 from two government grants (available to offset KATFISH program costs) which we expect to receive in the next 6 months.
- Announced the signing of a strategic partnership agreement with Square Robot Inc. of Boston, Massachusetts to design, manufacture, and support advanced robotic systems for confined area inspection applications used by the worldwide oil and gas industry.
- Cash decreased $113,832 from the March quarter to $81,028 due to operating losses but offset by changes in non-cash working capital. At the end of June, the Company had an undrawn $250,000 operating line with RBC.
- Subsequent to quarter end, Kraken completed an equity raise of $1,073,930. Management and insiders subscribed to approximately 18% of the financing.
- Basic and diluted weighted average shares outstanding were 71,087,555 in Q2.
"Our recently completed financing in August strengthens our balance sheet as we work towards delivering on existing and expected customer orders and closing a strategic partnership with a major defense contractor for the development of an advanced underwater robotic drone," said Karl Kenny, President and CEO of Kraken. "The financing allows us to progress towards delivery of our first KATFISH product to Elbit at the end of this year or early 2017. In parallel, our strategic partnership with Square Robot Inc. opens up an exciting new commercial market for Kraken's technology in the energy space."
ABOUT KRAKEN SONAR INC.
Kraken Sonar Inc. (TSX VENTURE: PNG) is an industrial technology company, founded in 2012, that is dedicated to the production and sale of software-centric Synthetic Aperture Sonar technology. The Company's products have been sold to leading defence contractors, commercial survey companies and research institutions for producing real-time, ultra high resolution imagery and bathymetry of the seabed. Marine Technology Reporter has three times named Kraken to their MTR100 -- a list of the 100 most influential companies in the international marine technology marketplace. For more information, please visit www.krakensonar.com.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
/EINPresswire.com/ -- For further information, please contact:
Chief Financial Officer
(709) 757-5757 extension 288