ALBANY, N.Y., May 18, 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 first
quarter 2021 financial results.
Michael Toporek, CEO of MTI
stated, "The traction in our business model continues, and we are
very pleased with our results. We are particularly enthused with
our recent addition of immediate capacity with the two new lease
agreements located in the Southeast United States, providing
EcoChain with access to ultra-low cost energy with an existing
building and surrounding land for additional capacity.
Additionally, the acquisition of approximately 11.2 Petahash in
SHA-256 Bitcoin miners and 235 Gigahash in Scrypt Litecoin miners
for use by the Company and EcoChain position us well for the
planned growth in our cryptocurrency mining business. We believe
these transactions are highly advantageous and will help to drive
our return on invested capital. Based on our development pipeline,
we remain confident that by the end of 2021 we will have
approximately 50MW of high return on invested capital, green,
ultra-low cost capacity."
MTI's Chief Financial Officer, Jessica
Thomas commented, "The first quarter continues the positive
trends we are seeing in the growth of our overall business
particularly from EcoChain's 171% annual increase in cryptocurrency
revenue. We are positioned for continued growth with our strong
balance sheet and cash position especially with our recently
completed capital raise. Additionally, we continue to optimize the
business by leveraging existing functions to support the EcoChain
line of business."
Moshe Binyamin, President of MTI
Instruments stated, "We are excited to have recently announced
that Compagnie de Saint-Gobain publicly endorsed our
non-destructive measurement technology to help them improve the
monitoring of material manufacturing process. Our solid
reputation in the industry signifies why Saint-Gobain, a
French multinational corporation, chose us as a partner after
identifying that the process for producing accurate and repeatable
measurement solutions was time-consuming and cost-prohibitive. We
are also happy to have launched our newest addition of the
PBS-4100+ Portable Engine Vibration and Balancing System, "PBS Gen
4." This next iteration is fully portable, lightweight and rugged,
and the most powerful system in its class on the market. Our
mission is to combine product innovation with complete solutions to
help our customers realize return on their MTI investment faster
and these recent announcements are examples of how we are working
to achieve it."
Highlights:
For the first quarter ended March 31,
2021, revenues were $2.3
million, a 47% increase of $700
thousand compared to $1.6
million in the prior year quarter. The increase in revenue
was driven by the establishment of the EcoChain line of
business. Cryptocurrency revenue was $995 thousand, a 100% increase over the
comparable quarter of the prior year and an increase of
$628 thousand or 171% compared to the
fourth quarter of 2020 of $367
thousand.
MTI Instruments revenue was $1.3
million for Q1 2021, which was a $246
thousand decrease compared to the prior year Q1
results. MTI Instruments product cost of sales, for the first
quarter of 2021 were $452 thousand or
33.8% of revenue comparable to $527
thousand in the first quarter of 2020 or 33.3% of
revenue.
EcoChain, Inc., operated at capacity through the
first quarter of 2021 at both EcoChain site locations. Cost of
revenue for the 2021 first quarter was $328
thousand or 33% of revenue compared to $149 thousand or 40.1% for Q4 of 2020. The
improvement is due to the TNT site location operating at
capacity.
EcoChain, Inc. continued to invest in miners and infrastructure
in the first quarter of 2021. EcoChain purchased land and
signed a power purchase agreement for a new site in the Southeast,
United States and purchased
miners, which are currently being hosted, also located in the
Southeast, United States. EcoChain is positioned for
additional growth in 2021 towards its stated goals of 50MW under
management by the end of 2021.
As of March 31, 2021, the company
reported cash of $2.7 million
compared to $2.6 million at
December 31, 2021. Subsequent to
the end of the quarter, the company raised an additional
$15 million in gross proceeds from
its equity offering.
A presentation and corresponding video is available on the
Company's website
at https://www.mechtech.com/mti-announces-quarter-one-2021-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
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SOURCE Mechanical Technology, Incorporated