ALBANY, N.Y., March 31, 2021 /PRNewswire/ -- Mechanical
Technology, Incorporated ("MTI" or the "Company"), (NASDAQ:
MKTY), the parent company of MTI Instruments, Inc. ("MTI
Instruments"), a test and measurement instruments and systems
business and EcoChain, Inc. ("EcoChain"), a cryptocurrency mining
business powered by renewable energy, announced today its fiscal
year end 2020 financial results.
Highlights:
For the fiscal year ended 2020, net income was $1.9 million, which represents a year over year
increase of approximately 500% over 2019. Product revenue for the
year ended 2020 was $9.0 million, an
increase of 37% over 2019, with corresponding product margins
increasing by $2.0 million.
A key reason for the increase in our financial performance was
the successful delivery, by our MTI Instrument subsidiary, of 52
new PBS-4100+ engine vibration balancing systems and associated
accessories, pursuant to a contract with the United States
Airforce. This increase in revenue combined with an improvement in
product margin of 589 basis points contributed to our increase in
operating income. The improvement in basis points was primarily
driven by cost savings in materials purchases due to volume and
leveraging the existing cost structure.
Revenues generated by our EcoChain subsidiary, with the addition
of our cryptocurrency mining business in 2020, contributed
favorably to our healthier financial performance for the year ended
2020. During the fourth quarter of 2020, EcoChain generated
revenues of $369 thousand, which
represented an increase of 109% over revenues generated in the
third quarter of 2020 and totaled $595
thousand for the year ended December
31, 2020. Our TNT site generated margins of $190 thousand on those revenues for the year
ended December 31, 2020. During 2021,
we expect to generate positive margins from our TNT mining
operation.
Michael Toporek, CEO of MTI
stated, "We are extremely pleased with our record results,
especially the approximate 500% increase in profitability. With our
growth strategy clearly gaining momentum, we are particularly
pleased with our recent uplisting to The Nasdaq Capital Market. The
power cost of EcoChain's new data center in the Southeastern United States is exciting as it
provides for maximum flexibility to potentially optimize the
Company's return on invested capital."
MTI's Chief Financial Officer, Jessica
Thomas commented, "The year ending 2020 was a historic year
for the Company, highlighted by a product revenue increase of 37%
over the prior year and margin improvements that allowed the
Company to realize greater profitability. In addition, the TNT
mine's fourth quarter operating results led to the mine being
profitable for 2020. Our financial results for 2020 set a record
performance for about the past decade for both revenue and net
income. Our cash position remains strong at $2.6 million, in addition to untapped credit
facilities in 2020. Further, we were able to leverage existing
general and administrative functions to support the EcoChain line
of business."
Moshe Binyamin, President of MTI
Instruments stated, "COVID-19 certainly presented a number of
business and operational challenges for us. While we did see an 11%
decline in our non-PBS product lines compared to 2019, we were able
to offset that from increases in revenues generated from our
military and freight aviation PBS customers. I am certainly pleased
with our overall revenue results and particularly proud of our
production and fulfilments teams' performance. They did an
extraordinary job adapting quickly to the new operating
environment, working tirelessly in multiple shifts to meet customer
expectations, while following social distancing guidelines and
keeping each other safe. It is a testament to our hard work and
agility that helped us achieve these record results.
Notwithstanding the challenges presented by the COIVD-19 pandemic,
we were still able to rapidly improve our on-line content and
outreach. As a result, we now have a richer on-line presence and
ability to engage with customers and prospects in any manner they
see fit."
A presentation and corresponding video is available on the
Company's website at
https://www.mechtech.com/mti-announces-year-end-2020-results.
About MTI
MTI is the parent company of MTI Instruments, Inc. and EcoChain,
Inc. Through MTI Instruments, MTI is engaged in the design,
manufacture and sale of test and measurement instruments and
systems that use a comprehensive array of technologies to solve
complex, real world applications in numerous industries, including
manufacturing, electronics, semiconductor, solar, commercial and
military aviation, automotive and data storage. Through EcoChain,
MTI is developing cryptocurrency mining facilities powered by
renewable energy that integrate with the blockchain network. For
more information about MTI, please
visit https://www.mechtech.com.
Forward Looking Statement
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect management's current
expectations, as of the date of this communication, and involve
certain risks and uncertainties. Forward-looking statements include
statements herein with respect to the successful execution of the
Company's business strategy. The Company's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish
and maintain the proprietary nature of our technology through the
patent process, as well as our ability to possibly license from
others patents and patent applications necessary to develop
products; the availability of financing; the Company's ability to
implement its long range business plan for various applications of
its technology; the Company's ability to enter into agreements with
any necessary partners; the impact of competition, the obtaining
and maintenance of any necessary regulatory clearances applicable
to applications of the Company's technology; and management of
growth and other risks and uncertainties that may be detailed from
time to time in the Company's reports filed with the Securities and
Exchange Commission.
Contact Information:
Jess Olszowy
jolszowy@mtiinstruments.com
Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com
Mechanical
Technology, Incorporated and Subsidiaries
|
Consolidated
Balance Sheets
|
As of December 31,
2020 and December 31, 2019
|
|
|
|
|
|
|
(Dollars in
thousands, except per share)
|
|
December
31,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
Assets
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,630
|
|
$
|
2,510
|
|
Accounts
receivable – less allowances of $0 in 2020 and 2019
|
|
|
975
|
|
|
745
|
|
Inventories
|
|
|
828
|
|
|
924
|
|
Prepaid
expenses and other current assets
|
|
|
346
|
|
|
56
|
|
Total
Current Assets
|
|
|
4,779
|
|
|
4,235
|
|
Other
assets
|
|
|
309
|
|
|
—
|
|
Deferred income
taxes, net
|
|
|
759
|
|
|
395
|
|
Equity
investment
|
|
|
750
|
|
|
—
|
|
Property, plant
and equipment, net
|
|
|
847
|
|
|
174
|
|
Operating lease
right-of-use assets
|
|
|
1,203
|
|
|
947
|
|
Total
Assets
|
|
$
|
8,647
|
|
$
|
5,751
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
300
|
|
$
|
210
|
|
Accrued
liabilities
|
|
|
1,019
|
|
|
761
|
|
Operating
lease liability
|
|
|
316
|
|
|
171
|
|
Income
taxes payable
|
|
|
2
|
|
|
––
|
|
Total Current
Liabilities
|
|
|
1,637
|
|
|
1,142
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
203
|
|
|
—
|
|
Operating lease
liability
|
|
|
891
|
|
|
776
|
|
Total
Liabilities
|
|
|
2,731
|
|
|
1,918
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 12)
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Common stock,
par value $0.01 per share, authorized 75,000,000; 10,750,100 issued
in 2020 and 10,586,170 issued in 2019
|
|
|
108
|
|
|
106
|
|
Additional
paid-in capital
|
|
|
137,365
|
|
|
137,230
|
|
Accumulated
deficit
|
|
|
(117,793)
|
|
|
(119,739)
|
|
Common stock in
treasury, at cost, 1,015,493 shares in both 2020 and
2019
|
|
|
(13,764)
|
|
|
(13,764)
|
|
Total
Stockholders' Equity
|
|
|
5,916
|
|
|
3,833
|
|
Total
Liabilities and Stockholders' Equity
|
|
$
|
8,647
|
|
$
|
5,751
|
|
Mechanical
Technology, Incorporated and Subsidiaries
|
Consolidated
Statements of Operations
|
For the Years
Ended December 31, 2020 and 2019
|
|
(Dollars in
thousands, except per share)
|
|
Years
Ended
|
|
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Product
revenue
|
|
$
|
9,004
|
|
$
|
6,571
|
|
Cryptocurrency
revenue
|
|
|
595
|
|
|
—
|
|
Total revenue
|
|
|
9,599
|
|
|
6,571
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of product
revenue
|
|
|
2,669
|
|
|
2,205
|
|
Cost of cryptocurrency
revenue
|
|
|
405
|
|
|
—
|
|
Research and product
development expenses
|
|
|
1,491
|
|
|
1,381
|
|
Selling, general and
administrative expenses
|
|
|
3,584
|
|
|
2,726
|
|
Operating
income
|
|
|
1,450
|
|
|
259
|
|
Other income,
net
|
|
|
104
|
|
|
36
|
|
Income before income
taxes
|
|
|
1,554
|
|
|
295
|
|
Income tax
benefit
|
|
|
392
|
|
|
28
|
|
Net income
|
|
$
|
1,946
|
|
$
|
323
|
|
|
|
|
|
|
|
|
|
Net income per share
(Basic)
|
|
$
|
.20
|
|
$
|
.03
|
|
Net income per share
(Diluted)
|
|
$
|
.20
|
|
$
|
.03
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (Basic)
|
|
|
9,581,886
|
|
|
9,548,460
|
|
Weighted average
shares outstanding (Diluted)
|
|
|
9,634,503
|
|
|
9,602,548
|
|
Mechanical
Technology, Incorporated and Subsidiaries
|
Consolidated
Statements of Changes in Equity
|
For the Years
Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
(Dollars in
thousands, except per share)
|
Common
Stock
|
|
|
Treasury
Stock
|
|
|
Shares
|
Amount
|
Additional
Paid-
in
Capital
|
Accumulated
Deficit
|
Shares
|
Amount
|
Total
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1,
2019
|
10,452,670
|
$
|
105
|
|
$
|
139,067
|
|
$
|
(118,462)
|
|
1,015,493
|
$
|
(13,764)
|
|
$
|
6,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
–
|
|
–
|
|
|
–
|
|
|
323
|
|
–
|
|
–
|
|
|
323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
–
|
|
–
|
|
|
31
|
|
|
–
|
|
–
|
|
–
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares –
option exercises
|
133,500
|
|
1
|
|
|
73
|
|
|
–
|
|
–
|
|
–
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends
|
–
|
|
–
|
|
|
(1,941)
|
|
|
(1,600)
|
|
–
|
|
–
|
|
|
(3,541)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
10,586,170
|
$
|
106
|
|
$
|
137,230
|
|
$
|
(119,739)
|
|
1,015,493
|
$
|
(13,764)
|
|
$
|
3,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
–
|
|
–
|
|
|
–
|
|
|
1,946
|
|
–
|
|
–
|
|
|
1,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
–
|
|
–
|
|
|
54
|
|
|
–
|
|
–
|
|
–
|
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares –
option exercises
|
83,000
|
|
1
|
|
|
82
|
|
|
–
|
|
–
|
|
–
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares –
restricted stock
|
80,930
|
|
1
|
|
|
(1)
|
|
|
–
|
|
–
|
|
–
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2020
|
10,750,100
|
$
|
108
|
|
$
|
137,365
|
|
$
|
(117,793)
|
|
1,015,493
|
$
|
(13,764)
|
|
$
|
5,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mechanical
Technology, Incorporated and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
For the Years
Ended December 31, 2020 and 2019
|
|
(Dollars in
thousands)
|
|
Year Ended
December 31,
|
|
|
|
|
|
2020
|
|
2019
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,946
|
|
$
|
323
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
159
|
|
|
87
|
|
Provision for
bad debts
|
|
|
––
|
|
|
1
|
|
Deferred income
taxes
|
|
|
(364)
|
|
|
—
|
|
Stock
based compensation
|
|
|
54
|
|
|
31
|
|
Provision
(recovery) for excess and obsolete inventories
|
|
|
(3)
|
|
|
33
|
|
Loss on
disposal of equipment
|
|
|
3
|
|
|
3
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(230)
|
|
|
125
|
|
Inventories
|
|
|
99
|
|
|
(94)
|
|
Prepaid
expenses and other current assets
|
|
|
(290)
|
|
|
1
|
|
Other
long-term assets
|
|
|
(309)
|
|
|
––
|
|
Accounts
payable
|
|
|
90
|
|
|
9
|
|
Operating lease, net
|
|
|
4
|
|
|
––
|
|
Income
taxes and uncertain tax positions
|
|
|
2
|
|
|
––
|
|
Other
long-term liabilities
|
|
|
203
|
|
|
––
|
|
Accrued
liabilities
|
|
|
258
|
|
|
(230)
|
|
Net cash provided by
operating activities
|
|
|
1,622
|
|
|
289
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Purchases of
equipment
|
|
|
(835)
|
|
|
(83)
|
|
Purchase of stock
in equity investment
|
|
|
(750)
|
|
|
––
|
|
Net cash used in
investing activities
|
|
|
(1,585)
|
|
|
(83)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
on common stock
|
|
|
––
|
|
|
(3,541)
|
|
Proceeds from
stock option exercises
|
|
|
83
|
|
|
74
|
|
Net cash provided by
(used in) financing activities
|
|
|
83
|
|
|
(3,467)
|
|
Increase (decrease)
in cash
|
|
|
120
|
|
|
(3,261)
|
|
Cash – beginning of
period
|
|
|
2,510
|
|
|
5,771
|
|
Cash – end of
period
|
|
$
|
2,630
|
|
$
|
2,510
|
|
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SOURCE Mechanical Technology, Incorporated