SOURCE: HydroPhi Technologies Group, Inc.

HydroPhi Technologies Group, Inc.

February 18, 2014 07:30 ET

Hydro Phi Provides Business Update for the Third Quarter of Fiscal 2014

Reports Continued Progress on Commercialization and Improved Balance Sheet

ATLANTA, GA--(Marketwired - February 18, 2014) - HydroPhi Technologies Group, Inc. (OTCQB: HPTG) ("HydroPhi"), a developer of water-based, clean energy technology that delivers improved fuel economy and reduced greenhouse gas emissions, today announced financial results for the third quarter ending December 31, 2013 and provided a general business update.

Roger M. Slotkin, CEO of HydroPhi, stated, "We are quite pleased with the progress we are making in commercializing the Hydroplant™ technology. We recently announced that Rutas Unidas Federación de Transportistas Independientes de México, the largest association of bus operators based in Mexico City, reported consistent fuel savings in excess of 20% on buses equipped with HydroPhi's Hydroplant™ technology. In addition to Mexico City, we are in discussions with large fleet operators in selected markets in Latin America and Asia. Because our product provides significant environmental benefits, interest in our products is growing due to the fuel savings and high return-on-investment we offer fleet operators."

Mr. Slotkin continued, "We have significantly improved our balance sheet from the prior fiscal year end largely by converting debt to common stock, thus reducing total liabilities from approximately $14.3 million to $4.8 million. At the same time, we have been keeping our current fixed costs low. So as sales, begin to ramp up, we expect to benefit from high incremental margins." 

About HydroPhi

HydroPhi Technologies Group, Inc. (HPTG) is a developer of water-based hydrogen fuel production systems. The Company's technology isn't a fuel cell, nor is it a hydrogen alternative to traditional hydrocarbon fuels. The system utilizes distilled water for the production of hydrogen and oxygen, which is then injected into the air intake of an engine utilizing carbon-based fuels such as diesel, unleaded gasoline and natural gas. HPTG's technology, (HydroPlant™) has been company tested with resulting reduced vehicle operating costs by improved fuel efficiency, while lowering greenhouse gas emissions. By using an on-board, on-demand electrolysis system to separate hydrogen and oxygen from water, the technology eliminates the need for high-pressure hydrogen storage or hazardous chemicals while producing a stable, inexpensive alternative fuel source. By offering a real-time monitoring system as part of a hydrogen fuel solution with retrofit capability into standard vehicle engines, HPTG provides fuel efficiency to a potentially broad spectrum of users, including logistics, trucking, heavy equipment, marine and agriculture. Additional information about the Company and the technology is available at: www.hydrophi.com.

Notice Regarding Forward-Looking Statements
This news release contains forward-looking statements, which reflect our views with respect to future events and financial performance. These forward-looking statements are subject to certain uncertainties and other factors that could cause actual results to differ materially from such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents we file with the SEC, available at www.sec.gov.

 
Consolidated Balance Sheets
As of December 31, 2013 and March 31, 2013
(Unaudited)
             
  December 31,
2013
  March 31,
2013
 
ASSETS            
             
Current Assets            
  Cash and cash equivalents $ 123,994   $ 117  
  Accounts receivables   1,750     -  
  Prepaid expenses and other current assets   7,055     6,569  
Total Current Assets   132,799     6,686  
             
Property and equipment, net   6,418     9,659  
Intangible assets, net   789,750     838,500  
             
Total Assets $ 928,967   $ 854,845  
             
LIABILITIES AND STOCKHOLDERS' DEFICIT            
             
Current Liabilities            
  Accounts payable and accrued liabilities $ 1,525,071   $ 1,340,151  
  Accounts payable and accrued liabilities - related parties   938,670     1,083,237  
  Accrued compensation   1,109,566     2,850,215  
  Advance from customer   60,800     60,800  
  Deferred revenue   607,666     -  
  Notes payable   35,564     3,461,218  
  Note payable - related party   65,000     2,867,500  
  Convertible notes payable - related party   450,251     2,674,492  
Total Current Liabilities   4,792,588     14,337,613  
             
Commitments and contingencies            
             
Stockholders' Deficit            
  Common stock, $0.0001 par value, 300,000,000 shares authorized; 102,665,126 and 8,547,190 shares issued and outstanding, respectively   10,267     855  
  Additional paid-in capital   26,827,544     2,701,495  
  Accumulated deficit   (30,701,432 )   (16,185,118 )
Total Stockholders' Deficit   (3,863,621 )   (13,482,768 )
             
Total Liabilities and Stockholders' Deficit $ 928,967   $ 854,845  
               
 
 
HYDROPHI TECHNOLOGIES GROUP, INC.
 Consolidated Statements of Operations
 For the three and nine months ended December 31, 2013 and 2014
 (Unaudited)
                         
  For the three months ended
December 31,
  For the nine months ended
December 31,
 
  2013   2012   2013   2012  
Revenues $ 104,784   $ 50,471   $ 104,784   $ 77,650  
                         
Operating expenses:                        
  General and administrative   486,540     498,949     6,293,529     1,410,689  
  Research and development   55,634     160,711     184,894     302,088  
  Depreciation and amortization   17,233     16,352     51,991     51,886  
  Loss on disposal of property and equipment   -     -     -     22,875  
Total operating expenses   559,407     676,012     6,530,414     1,787,538  
                         
Operating loss   (454,623 )   (625,541 )   (6,425,630 )   (1,709,888 )
                         
Other expenses:                        
  Interest expense   25,009     230,122     428,296     544,424  
  Loss on settlement of debt   -     -     7,662,388     -  
Total other expenses   25,009     230,122     8,090,684     544,424  
                         
Net loss $ (479,632 ) $ (855,663 ) $ (14,516,314 ) $ (2,254,312 )
                         
                         
Net loss per common share - basic and diluted $ (0.00 ) $ (0.10 ) $ (0.32 ) $ (0.26 )
                         
Weighted average common shares outstanding basic and diluted   102,665,126     8,547,190     45,946,718     8,380,200  
                               

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