PyroGenesis Announces Q2 2016 Results - Seite 3

Net Loss and Comprehensive loss

The net loss and comprehensive loss for Q2, 2016 was $1,345,000 compared to a loss of $1,296,111, in Q2, 2015, representing an increased loss of 4% year-over-year.

EBITDA

EBITDA (earnings from operations before interest, taxes, depreciation and amortization) loss in Q2, 2016 was $801,894 compared with an EBITDA loss of $768,193 for the same period last year, representing an increase of 4%. The increase of $33,701 in the EBITDA loss in Q2, 2016 compared with Q2, 2015 is primarily attributable to the increase in net loss and comprehensive loss of $48,889, less the increased finance costs of $24,248.

The Adjusted EBITDA loss in Q2, 2016 was $766,029 compared with an Adjusted EBITDA loss of $734,512 for the same period last year, representing an increased loss of 4%. The decrease of $47,736 in the Adjusted EBITDA loss in 2016 is attributable to the decrease in EBITDA loss of $128,572 for the period, as previously described, less decreased cost of other non-cash items, specifically share-based payments of $80,836.

Liquidity

On July 26, 2016, the Company announced the completion of a share for debt transaction whereby the Company settled outstanding debt by the issuance of 2,060,126 common shares of the Company from treasury at a deemed price of $0.20 per common share in the aggregate amount of $412,025. The Company also completed at this time a private placement offering whereby the Company issued and sold an aggregate amount of 6,131,579 units of the Company at a price of $0.19 per unit for gross proceeds of $1,165,000 (see subsequent events section for further details).

As at June 30, 2016, the Company had cash on hand of $58,512 and negative working capital of $1,813,374 compared with a cash balance of $767,368 and positive working capital of $166,095 as at December 31, 2015.

Subsequent events

On July 25, 2016, the Company signed a Military contract for US $950,000. The contract is expected to be completed within six months.

On July 26, 2016, the Company completed a share for debt transaction to settle outstanding debt whereby the Company issued 2,060,126 common shares of the Company from treasury at a deemed price of $0.20 per common share in the aggregate amount of $412,025 (the "Share for Debt Transaction"). The common shares issued are subject to a statutory hold period of four months and one day from the date of issuance. The transaction was approved by TSXV on August 12, 2016.