COVINGTON, Ky., April 21 /PRNewswire-FirstCall/ -- Valley Forge Composite Technologies, Inc., (OTC Bulletin Board: VLYF), manufacturer and marketer of breakthrough cargo/baggage screening, full-body scanning technologies and aerospace products, today reported its results for the fourth quarter and full year ended December 31, 2009.

Fourth Quarter Financial Results

Revenues for Q4 2009 were $2.88 million, significantly higher than the $315,000 in sales in Q3 2009. In addition, the Company recorded deferred revenue of $858,400 in Q4 2009. All product sales for 2009 and 2008, including deferred revenue, were derived from sales of highly specialized mechanical devices for aerospace projects. Continuing strength in the sales of such products is forecast for 2010. As evidence, the Company has shipped approximately $4.5 million in such products from January 1 through April 6, 2010.

Net loss for Q4 2009 was $319,572. Net loss per share applicable to the common shareholders was (0.00) per share on a fully diluted basis.

Year-End Financial Results

Revenues for 2009 were $3.2 million compared to $132,000 for 2008. Gross profit was $249,750 in 2009 compared to $59,932 in 2008. Operating loss was $1.46 million in 2009 compared to an operating loss of $1.64 million in 2008.

Net loss for 2009 was $2.03 million compared to net loss of $1.84 million in 2008. Net loss per share on a fully diluted basis in 2009 was (0.04) compared to (0.04) in 2008.

Cash flow from operations for 2009 was $(949,283) compared to $(1,061,391) in 2008.

Valley Forge CEO Louis Brothers said, "The fourth quarter marked an important milestone in the evolution of Valley Forge. After seven years of product development we are finally at the goal line. We anticipate that income from sales of aerospace related products will be sufficient to finance ongoing capital requirements in 2010. Given that development of our next-generation detection systems is complete, we do not anticipate having significant additional research and development expenses. Any potential additional outside debt or equity would be used for the purpose of expanding operations, such as the installation of manufacturing facilities and dealer network related to our detection systems."

Valley Forge Composite Technologies Inc Operating Highlights 




                       Quarter Ending                     Year Ending
                        December 31                       December 31
                                  2009                   2009            2008
    Sales                    2,887,815              3,202,815         132,000
    COGS                     2,721,765              2,943,065          72,068
    Gross Profit               166,050                249,750          59,932
    Operating
     Income (Loss)            (224,894)            (1,465,893)     (1,643,502)
    Net Income
     (Loss)                   (319,572)            (2,038,623)     (1,848,755)
    Per Share                    (0.00)                 (0.04)          (0.04)
    Shares O/S              53,011,122             53,011,122      49,362,903

NEXT-GENERATION PRODUCT UPDATES

THOR-LVX

THOR-LVX(TM) is an advanced screening system primarily for cargo. It provides advanced detection capability for illicit narcotics, explosives and bio-chemical weapons hidden in cargo containers. THOR-LVX can scan a 40 foot shipping container in approximately 30 seconds. To the best of the company's knowledge there is no existing device on the market that can screen containers for explosives, drugs, micro-organisms and nuclear material, such as plutonium and weapons grade uranium, in a commercially viable manner. According to multiple laboratory tests, the system effectively penetrates concealment media and performs to 99.6% accuracy.

In March 2010 Valley Forge announced the first pending sale of a THOR-LVX Cargo Scanner to the Federation of Malaysia. A near-term certification will allow the Company to significantly expand its sales and marketing efforts, at which point the Company will begin to plan and establish full scale production of the scanner for sale around the world.

ODIN

ODIN(TM) is a state of the art full-body scanning system that is able to detect weapons and contraband based on Ultra-Low Dose Imaging Technology. The Company believes the ODIN technology, as compared against any system now in use in the United States, is more accurate (articles hidden inside the body or on the backside of a passenger are detected in a single scan with near medical quality imaging), is faster (each passenger is scanned in 5 seconds), and is less inconvenient (passengers do not need to remove clothing or shoes). ODIN provides a near medical quality image that reveals the anatomy of the person being scanned. This is in sharp contrast with the nude-like images generated by competitors. ODIN has passed independent radiation examination and as such is eligible to be sold in the United States and around the world. Applications could include use at schools, government offices, prison facilities, sports complexes, passenger cruise liners, airports, rail and bus terminals and any number of other circumstances where security screening is important.

ODIN is currently being tested by several potential clients and in late January 2010 the Company announced an initial system sale based on a 30 day acceptance test. It is believed that successful testing will result in a larger rollout.

Valley Forge CEO Louis Brothers further commented, "Both the THOR-LVX Cargo Scanner and ODIN Full-Body Scanner represent game-changing technologies with broad applications. We intend to begin full-scale marketing and distribution of these products in 2010. We believe our products can make a major impact globally in the world of security screening."

About Valley Forge

Valley Forge Composite Technologies, Inc. develops, manufactures and distributes next-generation detection systems. Its THOR-LVX(TM) system is designed to detect nuclear material, explosives, narcotics and other contraband hidden in cargo containers and baggage, even through shielding. VLYF is also marketing the ODIN personal screening system for use in airports, high-security buildings and border entry points. More information about Valley Forge Composite Technologies, Inc. can be found at www.vlyf.com.

Forward Looking Statement

The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for certain forward-looking statements. Statements in this press release that relate to Valley Forge Composite Technologies, Inc.'s future plans, objectives, expectations, performance, events, reports made by others, and the like, including a statement about the assumptions underlying a forward-looking statement, are forward-looking statements protected by the safe harbor. Investors should understand that future events, risks and uncertainties, individually or in the aggregate, are factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. These factors could include changes in economic conditions or government policies that may change the demand for the Company's products and services and could include other factors discussed in the sections of the Company's report on Form 10-K for the year ended December 31, 2009 as filed with the U.S. Securities and Exchange Commission, entitled 'Description of Business' or 'Management's Discussion and Analysis or Plan of Operation.' This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Valley Forge Composite Technologies, Inc. uses paid services of investor relations organizations to promote the Company to the investment community. Investments in the Company should be considered speculative, and, prior to acquisition, should be thoroughly researched. Valley Forge Composite Technologies, Inc. does not intend to update these forward-looking statements prior to its reporting of its quarterly or annual results.


    Contact
    Valley Forge Composite Technologies, Inc.
    Roe Brothers
    roe@vfct.com
    Tel: (859) 581-5111

SOURCE Valley Forge Composite Technologies, Inc.