COLUMBIA, Md., May 17– Renewable fuels provider New Generation Biofuels Holdings, Inc. NGBF (“NGBF” or the “Company”) today announced its financial results for the quarter ended March 31, 2010.
New Generation Biofuels reported a net loss of $2.9 million for the quarter ending March, 31, 2010 on revenues of $6,477 versus a net loss of $2.4 million with no revenues for the comparable quarter in 2009. The net loss for both periods reflect operating costs, as well as significant non-cash charges relating to stock based compensation, stock options and warrants issued for services and amortization charges relating to our technology license.
Net cash used in operating activities was $1.3 million for the three months ended March 31, 2010, down $0.1 million from $1.4 million used in last year’s comparable period. As of March 31, 2010 the Company had cash on hand of approximately $0.24 million, and will need to complete another financing during the second quarter.
CEO Comments:
“To date, 2010 has been a period of transition for New Generation. With changes in the composition of our board and management team we are continuing our evolution as a technology based, commercially focused company. We are excited about the opportunities presented by the prospective strategic partner from China. Beyond the equity infusion, the collaborative aspects of the memorandum of understanding reached with Milestone Biofuels Limited, via the contemplated joint venture, would significantly increase our production capacity and market presence. While we remain in the diligence period, and thus far are pleased with how it is going, we are continuing our efforts in expanding our distribution base. We also are working to finalize several new sales contracts in the near future and to make additional progress within the utility industry,” said Cary J. Claiborne, President and Chief Executive Officer of New Generation Biofuels Holdings, Inc. “On the technical side we are also continuing to work on optimizing our production process and expand the number of feedstocks that can be used to produce our fuels. I am also pleased that we managed to lower our year over year cash burn in the first quarter despite carrying the full quarters cost of our plant and increases in legal expenses resulting from a number of business activities.”
About New Generation Biofuels, Holdings, Inc.
New Generation Biofuels is a renewable fuels provider. New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. New Generation Biofuels’ business model calls for establishing direct sales from manufacturing plants that it may purchase or build and sublicensing its technology to qualified licensees.
Forward Looking Statements
This news release contains forward-looking statements. These forward-looking statements concern our operations, prospects, plans, economic performance and financial condition and are based largely on our current beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements The risks and uncertainties related to our business include all the risks attendant a development stage business in the volatile energy industry, including, without limitation, the risks set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and in subsequent filings with the Securities and Exchange Commission.
