Mechanical Technology, Incorporated Reports Record 2020 Revenue and Full Year Results

ALBANY, N.Y., March 31, 2021 /PRNewswire/ — Mechanical Expertise, Included (“MTI” or the “Firm”), (NASDAQ: MKTY), the guardian firm of MTI Devices, Inc. (“MTI Devices”), a check and measurement devices and techniques enterprise and EcoChain, Inc. (“EcoChain”), a cryptocurrency mining enterprise powered by renewable power, introduced right now its fiscal yr finish 2020 monetary outcomes.

Highlights:

For the fiscal yr ended 2020, web earnings was $1.9 million, which represents a yr over yr improve of roughly 500% over 2019. Product income for the yr ended 2020 was $9.0 million, a rise of 37% over 2019, with corresponding product margins growing by $2.0 million.

A key cause for the rise in our monetary efficiency was the profitable supply, by our MTI Instrument subsidiary, of 52 new PBS-4100+ engine vibration balancing techniques and related equipment, pursuant to a contract with the USA Airforce. This improve in income mixed with an enchancment in product margin of 589 foundation factors contributed to our improve in working earnings. The development in foundation factors was primarily pushed by value financial savings in supplies purchases as a result of quantity and leveraging the prevailing value construction.

Revenues generated by our EcoChain subsidiary, with the addition of our cryptocurrency mining enterprise in 2020, contributed favorably to our more healthy monetary efficiency for the yr ended 2020. In the course of the fourth quarter of 2020, EcoChain generated revenues of $369 thousand, which represented a rise of 109% over revenues generated within the third quarter of 2020 and totaled $595 thousand for the yr ended December 31, 2020. Our TNT web site generated margins of $190 thousand on these revenues for the yr ended December 31, 2020. Throughout 2021, we count on to generate optimistic margins from our TNT mining operation.

Michael Toporek, CEO of MTI said, “We’re extraordinarily happy with our report outcomes, particularly the approximate 500% improve in profitability. With our progress technique clearly gaining momentum, we’re significantly happy with our current uplisting to The Nasdaq Capital Market. The facility value of EcoChain’s new information heart within the Southeastern United States is thrilling because it offers for max flexibility to doubtlessly optimize the Firm’s return on invested capital.”

MTI’s Chief Monetary Officer, Jessica Thomas commented, “The yr ending 2020 was a historic yr for the Firm, highlighted by a product income improve of 37% over the prior yr and margin enhancements that allowed the Firm to appreciate higher profitability. As well as, the TNT mine’s fourth quarter working outcomes led to the mine being worthwhile for 2020. Our monetary outcomes for 2020 set a report efficiency for in regards to the previous decade for each income and web earnings. Our money place stays sturdy at $2.6 million, along with untapped credit score services in 2020. Additional, we have been in a position to leverage current basic and administrative capabilities to help the EcoChain line of enterprise.”

Moshe Binyamin, President of MTI Devices said, “COVID-19 definitely offered quite a few enterprise and operational challenges for us. Whereas we did see an 11% decline in our non-PBS product traces in comparison with 2019, we have been in a position to offset that from will increase in revenues generated from our navy and freight aviation PBS clients. I’m definitely happy with our general income outcomes and significantly happy with our manufacturing and fulfilments groups’ efficiency. They did a unprecedented job adapting rapidly to the brand new working atmosphere, working tirelessly in a number of shifts to satisfy buyer expectations, whereas following social distancing tips and holding one another secure. It’s a testomony to our exhausting work and agility that helped us obtain these report outcomes. However the challenges offered by the COIVD-19 pandemic, we have been nonetheless in a position to quickly enhance our on-line content material and outreach. In consequence, we now have a richer on-line presence and talent to interact with clients and prospects in any method they see match.”

A presentation and corresponding video is on the market on the Firm’s web site at https://www.mechtech.com/mti-announces-year-end-2020-results.

About MTI

MTI is the guardian firm of MTI Devices, Inc. and EcoChain, Inc. By way of MTI Devices, MTI is engaged within the design, manufacture and sale of check and measurement devices and techniques that use a complete array of applied sciences to resolve advanced, actual world purposes in quite a few industries, together with manufacturing, electronics, semiconductor, photo voltaic, business and navy aviation, automotive and information storage. By way of EcoChain, MTI is creating cryptocurrency mining services powered by renewable power that combine with the blockchain community. For extra details about MTI, please go to https://www.mechtech.com.

Ahead Wanting Assertion

This communication accommodates forward-looking statements inside the which means of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements replicate administration’s present expectations, as of the date of this communication, and contain sure dangers and uncertainties. Ahead-looking statements embody statements herein with respect to the profitable execution of the Firm’s enterprise technique. The Firm’s precise outcomes may differ materially from these anticipated in these forward-looking statements on account of varied components. Such dangers and uncertainties embody, amongst different issues, our potential to determine and keep the proprietary nature of our expertise via the patent course of, in addition to our potential to probably license from others patents and patent purposes essential to develop merchandise; the provision of financing; the Firm’s potential to implement its lengthy vary marketing strategy for varied purposes of its expertise; the Firm’s potential to enter into agreements with any obligatory companions; the impression of competitors, the acquiring and upkeep of any obligatory regulatory clearances relevant to purposes of the Firm’s expertise; and administration of progress and different dangers and uncertainties that could be detailed on occasion within the Firm’s reviews filed with the Securities and Change Fee.

Contact Data:
Jess Olszowy
[email protected]

Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
[email protected]

Mechanical Expertise, Included and Subsidiaries
Consolidated Stability Sheets
As of December 31, 2020 and December 31, 2019

({Dollars} in 1000’s, besides per share)	December 31,		December 31,
	2020		2019
Belongings
Present Belongings:
Money	$	2,630	$	2,510
Accounts receivable – much less allowances of $0 in 2020 and 2019		975		745
Inventories		828		924
Pay as you go bills and different present belongings		346		56
Whole Present Belongings		4,779		4,235
Different belongings		309		—
Deferred earnings taxes, web		759		395
Fairness funding		750		—
Property, plant and tools, web		847		174
Working lease right-of-use belongings		1,203		947
Whole Belongings	$	8,647	$	5,751

Liabilities and Stockholders’ Fairness
Present Liabilities:
Accounts payable	$	300	$	210
Accrued liabilities		1,019		761
Working lease legal responsibility		316		171
Revenue taxes payable		2		––
Whole Present Liabilities		1,637		1,142

Different liabilities		203		—
Working lease legal responsibility		891		776
Whole Liabilities		2,731		1,918

Commitments and Contingencies (Word 12)
Stockholders’ Fairness:
Frequent inventory, par worth $0.01 per share, approved 75,000,000; 10,750,100 issued in 2020 and 10,586,170 issued in 2019		108		106
Extra paid-in capital		137,365		137,230
Gathered deficit		(117,793)		(119,739)
Frequent inventory in treasury, at value, 1,015,493 shares in each 2020 and 2019		(13,764)		(13,764)
Whole Stockholders’ Fairness		5,916		3,833
Whole Liabilities and Stockholders’ Fairness	$	8,647	$	5,751

Mechanical Expertise, Included and Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31, 2020 and 2019

({Dollars} in 1000’s, besides per share)	Years Ended
	December 31,
	2020		2019

Product income	$	9,004	$	6,571
Cryptocurrency income		595		—
Whole income		9,599		6,571
Working prices and bills:
Price of product income		2,669		2,205
Price of cryptocurrency income		405		—
Analysis and product growth bills		1,491		1,381
Promoting, basic and administrative bills		3,584		2,726
Working earnings		1,450		259
Different earnings, web		104		36
Revenue earlier than earnings taxes		1,554		295
Revenue tax profit		392		28
Internet earnings	$	1,946	$	323

Internet earnings per share (Primary)	$	.20	$	.03
Internet earnings per share (Diluted)	$	.20	$	.03

Weighted common shares excellent (Primary)		9,581,886		9,548,460
Weighted common shares excellent (Diluted)		9,634,503		9,602,548

Mechanical Expertise, Included and Subsidiaries
Consolidated Statements of Modifications in Fairness
For the Years Ended December 31, 2020 and 2019

({Dollars} in 1000’s, besides per share)	Frequent Inventory							Treasury Inventory
	Shares	Quantity		Extra Paid- in Capital		Gathered Deficit		Shares	Quantity		Whole Stockholders’ Fairness

January 1, 2019	10,452,670	$	105	$	139,067	$	(118,462)	1,015,493	$	(13,764)	$	6,946

Internet earnings	–		–		–		323	–		–		323

Inventory based mostly compensation	–		–		31		–	–		–		31

Issuance of shares – choice workouts	133,500		1		73		–	–		–		74

Money 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

Internet earnings	–		–		–		1,946	–		–		1,946

Inventory based mostly compensation	–		–		54		–	–		–		54

Issuance of shares – choice workouts	83,000		1		82		–	–		–		83

Issuance of shares – restricted inventory	80,930		1		(1)		–	–		–		–

December 31, 2020	10,750,100	$	108	$	137,365	$	(117,793)	1,015,493	$	(13,764)	$	5,916

Mechanical Expertise, Included and Subsidiaries
Consolidated Statements of Money Flows
For the Years Ended December 31, 2020 and 2019

({Dollars} in 1000’s)	Yr Ended December 31,

	2020		2019
Working Actions
Internet earnings	$	1,946	$	323
Changes to reconcile web earnings to web money offered by working actions:
Depreciation		159		87
Provision for dangerous money owed		––		1
Deferred earnings taxes		(364)		—
Inventory based mostly compensation		54		31
Provision (restoration) for extra and out of date inventories		(3)		33
Loss on disposal of apparatus		3		3
Modifications in working belongings and liabilities:
Accounts receivable		(230)		125
Inventories		99		(94)
Pay as you go bills and different present belongings		(290)		1
Different long-term belongings		(309)		––
Accounts payable		90		9
Working lease, web		4		––
Revenue taxes and unsure tax positions		2		––
Different long-term liabilities		203		––
Accrued liabilities		258		(230)
Internet money offered by working actions		1,622		289
Investing Actions
Purchases of apparatus		(835)		(83)
Buy of inventory in fairness funding		(750)		––
Internet money utilized in investing actions		(1,585)		(83)
Financing Actions
Money dividends on widespread inventory		––		(3,541)
Proceeds from inventory choice workouts		83		74
Internet money offered by (utilized in) financing actions		83		(3,467)
Enhance (lower) in money		120		(3,261)
Money – starting of interval		2,510		5,771
Money – finish of interval	$	2,630	$	2,510