SOURCE: COMMODORE APPLIED TECHNOLOGIES, INC.

November 22, 2005 13:06 ET

Commodore Applied Technologies, Inc. Reports Third Quarter 2005 Results

NEW YORK, NY -- (MARKET WIRE) -- November 22, 2005 -- Commodore Applied Technologies, Inc. (OTC BB: CXIA), today announced financial results for the three and nine months ended September 30, 2005 (see table below).

            Commodore Applied Technologies, Inc. and Subsidiaries
              Condensed, Consolidated Statements of Operations
          (Unaudited - dollars in thousands, except per share data)

                                     Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
                                       2005      2004      2005      2004
                                     -------   -------   -------   -------

Revenues                             $ 3,900   $   155   $ 8,259   $   449

Income (Loss) from Operations        $   151   $  (511)  $  (483)  $(1,787)

Income (Loss) on Embedded Derivative $    44        --   $(8,607)       --
Net Income (Loss)                    $    36   $  (626)  $(9,599)  $(2,082)

Dividends Accrued to Preferred
 Stockholders                        $  (104)  $   (73)  $  (262)  $  (223)
Net Income (Loss) Applicable to
 Common Shareholder                  $   (68)  $  (699)  $(9,861)  $(2,305)
Net Loss Per Share - Basic and
 Diluted                             $ (0.01)  $ (0.11)  $ (1.35)  $ (0.37)

Weighted Average Number of Shares
 Outstanding                           7,819     6,364     7,290     6,252
Chairman and CEO Shelby T. Brewer stated, "On an income from operations basis, Commodore Applied Technologies, reports a very good performance for the quarter ending September 30, 2005. Compared to the same quarter in 2004, there has been a $662,000 improvement in operating income." Mr. Brewer further stated, "This improvement is in large part due to our Oak Ridge environmental sampling and data management contract, and the fact that our results from that contract have exceeded our original expectations. The fundamentals of our business, on an income from operations, continues to improve, and the prospects for expanding the business both in the engineering services component and the SET component look bright." Brewer said: "We have recently responded to a DOE request for bids to demonstrate innovative technology for waste treatment at their primary legacy waste sites. This represents a clear opportunity to showcase our SET technology for application to recalcitrant and anomalous wastes at these sites."

"However," Mr. Brewer continued, "The Company recently recognized an accrual accounting issue that our independent auditors brought to our attention within the last two weeks. After further research and discussion with our independent auditors, we determined that the embedded conversion features associated with the New Shaar Convertible Note and the Series I Convertible Preferred Stock issued April 12, 2005, did qualify as derivatives in accordance with EITF 00-19 and SFAS No. 133, thus requiring liability recognition and marking the derivative to its fair value as of each reporting date (each quarter)." Mr. Brewer further stated: "Management has taken immediate steps to accurately record and disclose this liability and is in the process of eliminating the liability from the Company in the future."

Mr. Brewer continued: "The result of this recent determination is the restatement of the 2005 June 10Q results and the recognition of a non-cash expense item associated with the embedded derivatives. As a non-cash based item, this restatement does not subtract from our income from operations performance, which has shown significant improvement this past three month period."

Commodore Applied Technologies, Inc. is a diverse technical solutions company focused on high-end environmental markets. The Commodore family of companies includes subsidiaries Commodore Solution Technologies and Commodore Advanced Sciences. The Commodore companies provide technical engineering services and patented remediation technologies designed to treat hazardous waste from nuclear and chemical sources. More information is available on the Commodore web site at www.commodore.com.

This Press Release contains forward-looking statements that are based on our current expectations, beliefs and assumptions about the industry and markets in which Commodore Applied Technologies, Inc. and its subsidiaries operate. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause Commodore's actual results to be materially different from any future results expressed or implied by these statements. Actual results may differ materially from what is expressed in these statements, and no assurance can be given that Commodore can successfully implement its core business strategy and improve future earnings.

The factors that may cause Commodore's actual results to differ from its forward-looking statements include: Commodore's current critical need for additional cash to sustain existing operations and meet ongoing existing obligations and capital requirements; Commodore's ability to implement its commercial waste processing operations, including obtaining commercial waste processing contracts and processing waste under such contracts in a timely and cost-effective manner; the timing and award of contracts by the U.S. Department of Energy for the clean-up of waste sites administered by it; the acceptance and implementation of Commodore's waste treatment technologies in the government and commercial sectors; and other large technical support services projects. All forward-looking statements are also expressly qualified in their entirety by the cautionary statements included in Commodore's SEC filings, including its quarterly reports on Form 10-Q and its annual report on Form 10-K.

Contact Information

  • Contact:
    James M. DeAngelis
    (212) 308-5800