PARTICLE DRILLING TECHNOLOGIES, INC. 
By In addition, since the last field trial results were announced in mid- September, the Company has made various modifications to its surface equipment that are intended to improve the system's performance under a broader range of fluid properties encountered in the field.
As previously announced, the Special Committee of the Board of Directors has retained Parks Paton Hoepfl & Brown, LLP to serve as the Special Committee's financial advisor in connection with its evaluation and review of any potential strategic alternatives, including a strategic industry joint venture, technology licensing arrangement, sale of the company and any other available alternatives. We have yet to determine which particular strategic alternative to pursue, if any, and do not intend to disclose developments with respect to this evaluation unless and until the Board of Directors has approved a course of action or otherwise deemed disclosure appropriate.
Lastly, the Company completed the sale of its frac-pump which is no longer a core-asset needed as a component to the PID injector system. The Company has now rented a more cost-effective mud pump for testing purposes.
The Company also announced its financial results for the fourth quarter
and for the year ended
Year Ended September 30,
2008 2007
(Unaudited)
Revenues $- $-
Gross profit - -
Loss from operations (10,368,212) (11,131,982)
Net loss (10,286,939) (10,754,269)
Net loss per share - basic and diluted $(0.32) $(0.36)
The Company will hold a conference call at
If you cannot listen to the live webcast, an archive will be available
shortly after the call for a period of 90 days on the "Investor Relations"
section of the Company's website. A telephonic replay of the conference call
will be available through
Particle Drilling Technologies, Inc. (Nasdaq: PDRT) is a development-stage
oilfield service and technology company commercializing its patented and
patent-pending Particle Impact Drilling system. The company's technology is
designed to enhance the rate-of-penetration function in the drilling process,
particularly in hard-rock environments. It is headquartered in
Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause PDTI's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, PDTI's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, a severe worldwide slowdown in the energy services sector, working capital constraints, the ability of PDTI to successfully complete any strategic alternative and other risks described in PDTI's filings with the SEC. Further, PDTI is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond PDTI's control such as announcements by competitors and service providers.
Contacts: J. Chris Boswell, SVP & CFO
Particle Drilling Technologies, Inc.
713-223-3031
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
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PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Years Ended September 30,
2008 2007
(Unaudited)
Revenues $- $-
Operating expenses:
Research and development 6,074,173 5,894,101
General and administrative 5,050,508 4,942,621
Impairment of asset - 295,260
Gain on sale of assets (756,469) -
Total operating expenses 10,368,212 11,131,982
Loss from operations (10,368,212) (11,131,982)
Other income (expenses)
Interest income 87,888 384,484
Interest expense (6,615) (6,771)
Total other income (expenses) 81,273 377,713
Net loss $(10,286,939) $(10,754,269)
Net loss per common share, basic and diluted $(0.32) $(0.36)
Weighted average number of common shares
outstanding, basic and diluted 32,490,392 30,185,030
PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED BALANCE SHEETS
September 30, September 30,
2008 2007
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $2,296,143 $4,461,929
Assets held for sale - 900,000
Prepaid expenses 260,686 233,174
Total current assets 2,556,829 5,595,103
Property, plant & equipment, net 1,213,918 867,168
Intangibles, net 1,552,266 1,312,246
Other assets 41,144 52,562
Total assets $5,364,157 $7,827,079
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $850,944 $1,028,999
Short-term notes payable 84,277 88,258
Current portion of long-term debt 8,651 13,511
Accrued liabilities 353,881 134,988
Total current liabilities 1,297,753 1,265,756
Long-term debt 15,381 24,537
Deferred Rent 135,531 45,539
Stockholders' equity:
Common stock, $.001 par value, 100,000,000
shares authorized, 38,767,018 shares issued
and 35,763,932 shares outstanding at
September 30, 2008, and 34,632,987 shares
issued and 31,629,901 shares outstanding at
September 30, 2007 38,768 34,634
Additional paid-in capital 46,217,538 38,510,488
Treasury stock at cost, 3,003,086
shares at September 30, 2008 and
September 30, 2007 (1,511,817) (1,511,817)
Deficit accumulated during the
development stage (40,828,997) (30,542,058)
Total stockholders' equity 3,915,492 6,491,247
Total liabilities and stockholders'
equity $5,364,157 $7,827,079
PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Years Ended September 30,
2008 2007
(Unaudited)
Cash flows from operating activities:
Net loss $(10,286,939) $(10,754,269)
Adjustments to reconcile net loss to
net cash used in operating activities:
Impairment of asset - 295,260
Gain on sale of assets (756,469) -
Depreciation and amortization 548,482 811,754
Stock-based employee compensation 2,610,921 2,520,432
Changes in operating assets and liabilities:
Decrease in note receivable - 385,839
(Increase) Decrease in prepaid expenses (27,512) 1,314
(Decrease) Increase in accounts payable (178,055) 198,447
Increase (Decrease) in accrued liabilities 218,893 (336,475)
Increase (Decrease) in other assets 11,418 (37,912)
Increase in other liabilities 89,992 45,539
Net cash used in operating activities (7,769,269) (6,870,071)
Cash flows from investing activities:
Payments to purchase property and equipment (39,898) (1,496,985)
Proceeds from sale of assets 851,617 -
Payments to purchase intangibles (290,504) (132,644)
Net cash used in investing activities 521,215 (1,629,629)
Cash flows from financing activities:
Proceeds from issuance of common stock 5,100,265 10,757,455
Repayments of notes payable (17,997) (87,412)
Net cash provided by financing
activities 5,082,268 10,670,043
Net increase in cash and cash equivalents (2,165,786) 2,170,343
Cash and cash equivalents - beginning
of period 4,461,929 2,291,586
Cash and cash equivalents - end of
period $2,296,143 $4,461,929
SOURCE Particle Drilling Technologies, Inc.
