Neah Power Announces Fuel Cell Breakthrough
Neah Power Systems, Inc. (NPWS) shares jumped more than 230 percent after it successfully demonstrated a new type of low cost, high reliability and power, liquid electrolyte-based direct methanol fuel cell that does not require air to operate.
Neah Power Systems, Inc. [[NPWS.OB]], a developer of fuel cells for the military and portable electronic devices, announced that it successfully demonstrated a new type of low cost, high reliability and power, liquid electrolyte-based direct methanol fuel cell that does not require air to operate. The announcement marks the first major innovation in fuel cell technology in over 20 years, where a repeatable, reliable non-PEM based system has been successfully demonstrated.
Neah Power’s prototype was self-contained and sized to generate 8W of gross power. Fuel cartridges were replaced multiple times and repeatable performance was demonstrated. The company hopes to apply this technology in many specialized markets, including underwater and surface manned and unmanned vehicles, as well as numerous aerospace applications. Eventually, the company hopes to replace batteries for most uses to provide environmental and performance benefits.
Last quarter, Neah Power reported a narrowed net loss of $484,574 on revenues of $435,064. Meanwhile, the company reported cash of $33,221 and a current ratio of 0.11, which suggests that it may need to raise additional debt or equity capital in order to support ongoing operations. This could lead to a more unstable balance sheet or diluted shareholder equity, both of which could be undesirable for current shareholders.
In the end, Neah Power’s successful test could yield strong sales down the road. However, the company remains in a somewhat risky state right now. As a result, prudent investors may want to wait on the sidelines until its technology hits the markets, while speculators may find it profitable to get onboard shortly when shares settle from this week’s moves before future news announcements that could send shares higher.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com