Hydrophi Technologies Group Inc (OTCMKTS:HPTG) reported that its annual revenue surged to $278,012 for the fiscal ending March 31, 2015 against $142,050 recorded in the comparable period. The revenue came higher due to the license and consulting revenue recorded during the fiscal. It was pertaining to the exclusive rights to offer the Company’s products in Brazil and Mexico granted to ‘Energia Vehicular Limpia S.A de C.V’. In FY2014, the company recorded only license revenue and that too for half of fiscal. The increase in revenue was partially offset by the decline of product sales.
Hydrophi reported that G&A expenses came at $1.761 million for FY2015 compared to $5.607 million for the fiscal completed March 31, 2014. The decline was due to the lower stock based compensation of $178,436 compared to $5 million recorded in FY2014 for the issuance of options and shares to employees and the release of warrants to a consultant in FY2014.
The research and development expense came at $395,462 in FY2015 compared to $562,344 in FY2014. The decline in R&D expenses can be attributed to decline in development spending resulting out of the prevailing financial constraints in the fiscal.
Impairment of intangible assets
On July 5, 2011, Hydrophi entered into a MOU with Advanced Combustion Technology, Inc. where the Company compensated $350,000 in exchange for a license deal pertaining to certain proprietary services and technology. The company stated that Advanced Combustion did not deliver the equipment or units to the company or completed the services as decided in the MOU. As of now, Hydrophi is counseling with its counsel whether to file a case of breach of contract or to seek a commercial resolution.
The net loss came at $2.716 million for FY2015 compared to $14.511 million for the fiscal ended March 31, 2014.
Hydrophi Technologies Group Inc (OTCMKTS:HPTG) finished the last trading session with a nice gain of 4.76% but it spent the entire session in the range set in the previous day, creating an Inside Bar. In the last few days, a lot of Inside Days have been created but the expected expansion of volatility following those didn’t materialize. The volume of 26 million yesterday was considerably higher than the daily average of 8.8 million but even that failed to make any significant move. As long as the price remains below the immediate resistance around $0.005, the bears will keep ruling.