Nesscap Energy Inc.
TSX VENTURE : NCE

Nesscap Energy Inc.

August 26, 2015 16:00 ET

Nesscap Energy Inc. Reports Second Quarter 2015 Results for Ultracapacitor Products

SEOUL, SOUTH KOREA--(Marketwired - Aug. 26, 2015) - Nesscap Energy Inc. ("Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the second quarter ended June 30, 2015.

Revenue for the three-month period was $4.5 million compared to $5.7 million in the same period last year. The decrease is primarily due to significant devaluation of the euro and lower demand from customers in the industrial sector. Gross profit margin for the three-month period was 6.0% compared to 29.5% for the same period in the previous year. The decrease is primarily due to reduced revenue on euro-denominated sales as well as lower factory utilization and variation in the mix of products sold, relative to the same period in the previous year.

Net loss for the quarter ended June 30, 2015 was $1.5 million or $0.005 per share, representing a slight decrease in net loss due to decreases in foreign currency losses and finance costs. Net loss for the same period last year was $1.5 million or $0.007 per share.

Revenue for the six-month period ended June 30, 2015 was $7.9 million compared to $11.0 million in the same period one year ago. The decrease is primarily due to significant devaluation of the euro and lower demand from customers in the industrial and heavy transportation sectors. Gross profit margin for the six-month period was 9.6% compared to 25.8% for the same period one year ago. The decrease is primarily due to reduced revenue on euro-denominated sales and lower factory utilization, relative to the same period in the previous year.

At June 30, 2015, the Company had cash and cash equivalents equal to $1.9 million and working capital of $2.6 million compared to working capital of $12.6 million at December 31, 2014. The decrease in working capital is mainly due to the elimination of short-term financial instruments brought about by the return of USD 15 million escrow funds to Open Joint Stock Company Rusnano. This impact was mitigated by a significant reduction in current liabilities brought about by the conversion to equity of notes held by I2BF Energy Limited and Arbat Capital Group Ltd.

"Revenue in the second quarter improved by 32% compared to the previous quarter and we expect demand to continue to strengthen through the second half of this year," said Jim Zuidema, Acting Chief Executive Officer of Nesscap. "We are actively seeking funding to support our product development and marketing activities and to introduce new production technology which will allow us to increase capacity, bring newly developed products to market, and improve profitability."

Over the coming months, the Company plans to continue investments in new technology, direct and indirect sales channels, market development, and production capacity. The Company will continue to focus on its largest current markets in Europe and China while working to develop the more emerging markets throughout the rest of the world. The Company plans to increase its brand recognition and strengthen its position as one of the key technology leaders in the ultracapacitor industry. The Company is actively seeking further funding to ramp its production capacity and research and development efforts.

The financial statements for the second quarter of fiscal 2015 and related MD&A have been filed on SEDAR and can be found at www.sedar.com.

About Nesscap

Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements, or environmental conditions limit the suitability of batteries or capacitors. Nesscap products are available in both cells and modules and are used to enhance the performance of modern applications ranging from portable electronic devices to high performance windmills and high-tech 'green' cars. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6,200 farads with industry recognized alternative organic electrolytes. Customers of the Company are active in the transportation, renewable energy, industrial, and consumer markets. Technical and sales information can be found at www.nesscap.com.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way approved or disapproved of the contents of this press release.

Forward-Looking Statements

Included in this news release are matters that constitute "forward-looking" information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may" or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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