(MENAFN- ProactiveInvestors) ***Updated with comments from conference call***
() which has a patented process to convert liquid waste into a hydrogen-based fuel and has been ramping up sales recently posted 2014 revenue from its primary metal cutting segment that more than doubled year-over-year.
The company is certainly making headway in its plan to expand the sales of its promising hydrogen-based fuel which is looking to make waves in the industry as a greener natural gas alternative that has lower emissions than any fossil fuel currently on the market.
Last year it focused its efforts on launching its new 2 fuel as well as on developing its business lines to use for the co-combustion of hydro-carbon fuels to reduce emissions and for equipment sales for liquid waste processing.
Its target market however is the $5 billion metal cutting industry where is seeking to replace acetylene claiming its home-grown US patented hydrogen-based gas is cheaper uses 34 percent less oxygen and also cuts 38 percent faster.
For the fiscal year ending December 31 2014 the company said it increased total revenue in its metal cutting segment by 101 percent to $875373 compared to $435995 in the year-earlier period.
Overall revenue rose to $1.02 million from $988986 in 2013. On a per share basis net loss narrowed to 23 cents per share from 29 cents the previous year.
Total operating expenses excluding stock compensation and payments decreased to $4.7 million from nearly $5.0 million in 2013.
ended the year with a cash balance of $5.06 million sharply higher than the year-ago period figure of $216523.
In 2014 the company focused on developing relationships with key stakeholders in targeted markets as well as launched international equipment sales for liquid sterilization. It also purchased Florida gas distribution company ESSI to create a platform for fuel sales.
Among its achievements a major hog farm in Indiana signed a preliminary joint venture deal to pursue the use of to sterilize hog manure. It also received approval from the Fire Department of New York to use to replace acetylene.
Earlier this week the company extended its efforts with a one year contract with a major southeast fire-rescue supplier to distribute its special fuel throughout the state of Florida. 's special fuel is especially attractive to fire departments as it dissipates into the air quickly in the event of a leak unlike acetylene which pools on the ground and creates a major risk for explosion.
"2014 was an exciting year for as we advanced commercialization of our industrial gas further validated our claims through independent third-parties such as Georgia Institute of Technology and added marquis customers such as the NYC Fire Department" said chief executive officer Ermanno Santilli.
"We are finally starting to see results as evidenced by our double digit growth in the metal cutting segment and we are now in a significantly better cash position versus prior years."
Looking ahead the Florida-based company remains encouraged by the outlook for its business and said it would continue its efforts to grow profitability in the industrial gas segment.
On a conference call Thursday Santilli also stressed that the coal energy industry is one of the company's main sales targets because 's CO2 emission reductions and high efficiency make it a better option than more expensive and less effective carbon capture schemes. Tests have shown that combined with smoke from coal cuts CO2 emissions by 30 to 40 percent according to the CEO.
Separately also announced today that it has filed provisional patents related to the use of its fuel for micro-biological applications in municipal and agricultural industries. The move is part of the company's efforts to strengthen its IP portfolio.
The company's process to convert liquid waste into its hydrogen-based fuel involves the flow of carbon-rich liquid feedstock through a 10000 degree Fahrenheit electric arc between two carbon electrodes. The process sterilizes the liquid waste which can include anything from manure or sludge to medical waste and produces the hydrogen-based fuel which also contains carbon and trace gases.
According to the company military sub-contractors and the U.S. Navy have worked with since 2011 and are currently performing tests on the special fuel to consider purchase.
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