Midwest Energy Emissions Corp. Reports Third Quarter 2015 Financial Results
/EINPresswire.com/ -- LEWIS CENTER, OH--(Marketwired - November 17, 2015) - Midwest Energy Emissions Corp. (OTCQB: MEEC) ("ME
Third Quarter 2015 Highlights
- Revenues up 164% - $3.62 million in Q3 2015, compared to $1.37 million in Q3 2014
- Operating loss decreased 82% from $1.26 million in Q3 2014 to $224,000 in Q3 2015
- Net loss decreased 42% from $1.98 million in Q3 2014 to $1.15 million in Q3 2015
Results Overview
During third quarter 2015, ME
"Revenues are continually growing quarter over quarter this year," said ME
MacPherson continued, "We are continuing to meet the increasing demands of the marketplace and installing the infrastructure required for our clients' compliance needs. Our activities in the field during third quarter are on an upswing. We are especially pleased with the results of our recent demonstrations across the United States, where we introduced our new line of sorbents to great effect."
At the close of third quarter 2015, ME2C's operating expenses increased $158,000 over Q3 2014 because of increased stock-based compensation; labor and technical consulting costs associated with assisting customers with testing and equipment commissioning; and increased salary and overhead costs associated with an increase in operations staff from the prior period. However, the Company's operating loss decreased 82%, with a total of $224,000 compared to $1,267,000 in Q3 2014. Net cash used in operating activities was less than $1,000 in the quarter, meaning the Company was able to operate self-sufficiently.
ME
"Over the first nine months of this year we focused heavily on increasing contract implementation, sales, and marketing. During third quarter, we continued to deploy resources towards execution on the currently contracted business, construction and implementation of proprietary mobile feeder systems that will enhance technology-demonstration flexibility. We have seen a recent increase in our demonstration efforts and with the current active prospects in the pipeline, ME
The Company also reported that its plans with regard to holding public forum conference calls to review its quarterly results and give the market a chance to understand its progress are now expected to commence sometime in 2016.
About Midwest Energy Emissions Corp. (ME
Midwest Energy Emissions Corp. delivers patented and proprietary solutions to the global coal-power industry to remove mercury from their power plant emissions, providing performance guarantees and leading edge emissions services. The U.S. Environmental Protection Agency's (EPA) Mercury and Air Toxic Standards (MATS) rule requires that all coal- and oil-fired power plants in the U.S., larger than 25 mega-watts, must remove roughly 90% of mercury from their emissions starting April 16, 2015. In June 2015, the U.S. Supreme Court remanded MATS back to the U.S. Court of Appeals for the D.C. Circuit for further review, but left the rule in place. ME
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain "forward-looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. Matters that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the gain or loss of a major customer, additional or new EPA regulations affecting coal-burning utilities, disruption in supply of materials, a significant change in general economic conditions in any of the regions where our customer utilities might experience significant changes in electric demand, a significant disruption in the supply of coal to our customer units, the loss of key management personnel, failure to obtain adequate working capital to execute the business plan and any major litigation regarding the Company. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.
MIDWEST ENERGY EMISSIONS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2015 AND DECEMBER 31, 2014
(UNAUDITED)
September 30,
2015 December 31,
(Unaudited) 2014
---------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $ 912,762 $ 7,212,114
Accounts receivable 1,112,942 410,950
Inventory 5,593,806 5,784,905
Prepaid expenses and other assets 117,955 140,559
---------------- ----------------
Total current assets 7,737,465 13,548,528
Property and equipment, net 942,168 255,330
License, net 60,295 64,707
Prepaid expenses and other assets 6,494 13,799
Debt issuance costs, net 1,781,606 2,285,696
Customer acquisition costs, net 967,420 1,156,521
---------------- ----------------
Total assets $ 11,495,448 $ 17,324,581
================ ================
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses $ 648,453 $ 775,034
Accrued salaries and benefits 455,651 399,487
Deferred revenue 5,342,400 5,808,301
Convertible notes payable 1,682,860 3,080,376
Customer credits 936,500 936,500
Other current liabilities - 250,000
---------------- ----------------
Total current liabilities 9,065,864 11,249,698
Convertible notes payable, net of discount 4,629,145 4,724,598
Warrant liability 4,135,687 5,597,011
Accrued interest 87,532 337,999
Equipment note payable 57,007 -
---------------- ----------------
Total liabilities 17,975,235 21,909,306
Stockholders' deficit
Preferred stock, $.001 par value:
2,000,000 shares authorized - -
Common stock; $.001 par value;
150,000,000 shares authorized;
47,194,118 shares issued and
outstanding as of September 30, 2015
40,228,123 shares issued and
outstanding as of December 31, 2014 47,194 40,228
Additional paid-in capital 24,334,708 19,113,724
Accumulated deficit (30,861,689) (23,738,677)
---------------- ----------------
Total stockholders' deficit (6,479,787) (4,584,725)
---------------- ----------------
Total liabilities and stockholders'
deficit $ 11,495,448 $ 17,324,581
================ ================
MIDWEST ENERGY EMISSIONS CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(UNAUDITED)
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
2015 2014 2015 2014
------------- ------------- ------------- -------------
Revenues
Product sales $ 2,386,961 $ 1,280,043 $ 3,239,633 $ 1,939,095
Equipment sales 1,238,897 - 3,205,936 -
Demonstration and
consulting
services - 93,250 120,318 313,155
------------- ------------- ------------- -------------
Total revenues 3,625,858 1,373,293 6,565,887 2,252,250
------------- ------------- ------------- -------------
Costs and expenses:
Cost of goods sold 2,252,683 829,662 4,189,677 1,194,780
Operating expenses 627,200 469,370 1,776,617 725,036
License
maintenance fees 75,000 75,000 225,000 225,000
Selling, general
and
administrative
expenses 599,887 955,284 1,786,320 4,661,485
Depreciation and
amortization 103,462 190,778 268,513 325,961
Professional fees 192,111 120,066 480,600 462,643
Total costs and
expenses 3,850,343 2,640,160 8,726,727 7,594,905
------------- ------------- ------------- -------------
Operating loss (224,485) (1,266,867) (2,160,840) (5,342,655)
Other (expense)
income
Interest expense (905,713) (714,852) (5,264,186) (1,421,708)
Change in value of
warrant liability 144,595 - 1,461,324 -
Debt conversion
costs (161,537) - (1,123,380) -
State income taxes (7,705) - (35,930) -
------------- ------------- ------------- -------------
Total other
(expense) income (930,360) (714,852) (4,962,172) (1,421,708)
------------- ------------- ------------- -------------
Net loss $(1,154,845) $(1,981,719) $(7,123,012) $(6,764,363)
============= ============= ============= =============
Contact:
Richard MacPherson
Chief Executive Officer
Midwest Energy Emissions Corp.
614-505-6115
rmacpherson@midwestemissions.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
