Some of the highlights:
On July 15, 2011, the Company announced that it had reached agreement with the
DOE to phase out work on the funding award for a demonstration project and would not seek the
balance of US$26 million in funding.
HP-LTM lignin can be used in place of oil derivatives and as a base product enabling
the development of many new specialty chemical product applications which have a potential
industrial scale market opportunity which has been valued in excess of US$2.0 billion
Working together with FPInnovations, Lignol is in the process of engaging industry partners to complete the
development and to commercialize its new HP-LTM resin adhesive technology.
On June 10, 2010, Lignol announced that it had joined the NSERC Strategic Biomaterials and
Chemicals Research Network (the “Network”) as an industry network partner. The goals of the
Network are to develop technology platforms for the manufacture of new biomaterials and
chemicals from lignin…..Potential applications include the incorporation of HP-L™ lignin in a variety of adhesive applications, including phenol formaldehyde, isocyanate and epoxy systems.
Loss for the Period
The net loss from operations was $1.2 million for the year ended April 30, 2011, compared to
$7.8 million in 2010. This $6.6 million decrease in net loss was primarily due to a net decrease of
$2.5 million in research and development expenses and an increase of $4.1 million in
government and corporate contributions.
Liquidity and Capital Resources
The Company has to date financed its research and development activities, capital expenditures
and operations largely through public and private sales of equity securities, government and
corporate contributions, and interest income. At April 30, 2011, the Company had a net current
working capital of $3.1 million, compared to $2.4 million for the same period in 2010. This
increase of
.7 million is primarily due to an increase in cash and cash equivalents of
.4
million and a decrease in current liabilities of
.3 million.
On January 29, 2008 the DOE awarded the Company up to US$30 million related to the
construction of a proposed commercial demonstration cellulosic ethanol plant. Under this award
the DOE has contracted up to US$4.0 million to Lignol, of which US$2.5 million has been
received to April 30, 2011, and a further US
.5 million was received subsequently in June 2011.
Receipt of the balance of up to US$1.0 million of the contracted amount is subject to the
Company achieving certain remaining milestones.
Under currently active funding agreements as at April 30, 2011, Lignol is eligible to receive in the
future up to $5.1 million in cash from these contract agreements, of which $1.0 million has
already been accrued for as a receivable and $4.1 million of committed funding has not yet been
recognized. This funding is subject to the satisfaction of certain conditions specified in the
relevant agreements, which include the Company incurring sufficient, additional related
expenditures, and continuing to meet all of its reporting requirements. Receipt of this additional
funding is also conditional in certain cases upon having sufficient matching funds and completion
of the funding programs and agreements. These funding awards are intended to be applied
against future expenses incurred under various development programs which are expected to be
completed at various times largely before 2012.
Outstanding Share Information – as at July 21, 2011
Share capital authorized unlimited common shares
Share capital issued
- Issued and Outstanding 49,892,286 common shares
Options outstanding 5,036,045 each exercisable for one common share
Total share capital issued
- on a fully diluted basis 54,928,331 common shares