UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) May 18, 2021

 

MECHANICAL TECHNOLOGY, INCORPORATED

(Exact name of registrant as specified in its charter)

 

Nevada   000-06890   14-1462255
(State or other jurisdiction
of Incorporation) 		  (Commission
File Number) 		  (IRS Employer
Identification Number)

 

325 Washington Avenue Extension

Albany, New  York 

  12205
(Address of registrant's principal executive office)   (Zip code)

 

(518) 218-2550 

(Registrant's telephone number, including area code)

 

N/A 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which
registered
Common Stock, par value $0.001 per share   MKTY   The Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company     ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

On May 18, 2021, Mechanical Technology, Incorporated (the “Company”) issued a press release announcing its financial and business highlights for the quarterly period ended March 31, 2021. The press release is attached hereto as Exhibit 99.1 under Item 9.01 of this Current Report on Form 8-K (this “Form 8-K”) and is incorporated by reference herein.

 

Additionally, on May 18, 2021, the Company delivered to the Company’s stockholders a presentation of the Company’s first quarter results. The Company released presentation materials that incorporate the Company’s first quarter results, a discussion of each business segment and recent business highlights. The materials of the presentation are available at the Company’s website, specifically located at: https://www.mechtech.com/mti-announces-quarter-one-2021-results.

 

Item 7.01 Regulation FD Disclosure

 

Reference is made to the disclosure in Item 2.02 of this Form 8-K, which disclosure is incorporated herein by reference.

 

The information contained in this Form 8-K provided under Item 7.01 and Exhibit 99.1 attached hereto are furnished to, but shall not be deemed filed with, the Securities and Exchange Commission (the “SEC”) or incorporated by reference into the Company's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

Forward-Looking Statements

 

This Form 8-K and Exhibit 99.1 contain forward-looking statements. Forward-looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company’s future activities, or future events or conditions. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by its management. These statements are not guarantees of future performances and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those risks that may be included in documents that the Company files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 8-K, except as required by law.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No. Description  
99.1 Press Release of Mechanical Technology, Incorporated dated May 18, 2021.  
     

 

 

SIGNATURES

 

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MECHANICAL TECHNOLOGY, INCORPORATED
     
Date: May 18, 2021 By: /s/ Jessica L. Thomas
  Name: Jessica L. Thomas
  Title: Chief Financial Officer

 

Exhibit 99.1

 

 

 

Mechanical Technology, Incorporated

First Quarter 2021 Financial Results

 

ALBANY, N.Y., May 18, 2021 /PRNewswire/ – Mechanical Technology, Incorporated (“MTI” or the “Company”), (NASDAQ: MKTY), the parent company of MTI Instruments, Inc. (“MTI Instruments”), a test and measurement instruments and systems business and EcoChain, Inc. (“EcoChain”), a cryptocurrency mining business powered by renewable energy, announced today its first quarter 2021 financial results.

 

Michael Toporek, CEO of MTI stated, "The traction in our business model continues, and we are very pleased with our results. We are particularly enthused with our recent addition of immediate capacity with the two new lease agreements located in the Southeast United States, providing EcoChain with access to ultra-low cost energy with an existing building and surrounding land for additional capacity. Additionally, the acquisition of approximately 11.2 Petahash in SHA-256 Bitcoin miners and 235 Gigahash in Scrypt Litecoin miners for use by the Company and EcoChain position us well for the planned growth in our cryptocurrency mining business. We believe these transactions are highly advantageous and will help to drive our return on invested capital. Based on our development pipeline, we remain confident that by the end of 2021 we will have approximately 50MW of high return on invested capital, green, ultra-low cost capacity."

 

MTI's Chief Financial Officer, Jessica Thomas commented, "The first quarter continues the positive trends we are seeing in the growth of our overall business particularly from EcoChain’s 171% annual increase in cryptocurrency revenue. We are positioned for continued growth with our strong balance sheet and cash position especially with our recently completed capital raise. Additionally, we continue to optimize the business by leveraging existing functions to support the EcoChain line of business."

 

Moshe Binyamin, President of MTI Instruments stated, "We are excited to have recently announced that Compagnie de Saint-Gobain publicly endorsed our non-destructive measurement technology to help them improve the monitoring of material manufacturing process. Our solid reputation in the industry signifies why Saint-Gobain, a French multinational corporation, chose us as a partner after identifying that the process for producing accurate and repeatable measurement solutions was time-consuming and cost-prohibitive. We are also happy to have launched our newest addition of the PBS-4100+ Portable Engine Vibration and Balancing System, "PBS Gen 4.” This next iteration is fully portable, lightweight and rugged, and the most powerful system in its class on the market. Our mission is to combine product innovation with complete solutions to help our customers realize return on their MTI investment faster and these recent announcements are examples of how we are working to achieve it.” 

 

 

 

Highlights:
For the first quarter ended March 31, 2021, revenues were $2.3 million, a 47% increase of $700 thousand compared to $1.6 million in the prior year quarter. The increase in revenue was driven by the establishment of the EcoChain line of business. Cryptocurrency revenue was $995 thousand, a 100% increase over the comparable quarter of the prior year and an increase of $628 thousand or 171% compared to the fourth quarter of 2020 of $367 thousand.

 

MTI Instruments revenue was $1.3 million for Q1 2021, which was a $246 thousand decrease compared to the prior year Q1 results. MTI Instruments product cost of sales, for the first quarter of 2021 were $452 thousand or 33.8% of revenue comparable to $527 thousand in the first quarter of 2020 or 33.3% of revenue.

 

EcoChain, Inc., operated at capacity through the first quarter of 2021 at both EcoChain site locations. Cost of revenue for the 2021 first quarter was $328 thousand or 33% of revenue compared to $149 thousand or 40.1% for Q4 of 2020. The improvement is due to the TNT site location operating at capacity.

 

EcoChain, Inc. continued to invest in miners and infrastructure in the first quarter of 2021. EcoChain purchased land and signed a power purchase agreement for a new site in the Southeast, United States and purchased miners, which are currently being hosted, also located in the Southeast, United States. EcoChain is positioned for additional growth in 2021 towards its stated goals of 50MW under management by the end of 2021.

 

As of March 31, 2021, the company reported cash of $2.7 million compared to $2.6 million at December 31, 2021. Subsequent to the end of the quarter, the company raised an additional $15 million in gross proceeds from its equity offering.

 

A presentation and corresponding video is available on the Company’s website at https://www.mechtech.com/mti-announces-quarter-one-2021-results.

 

About MTI

MTI is the parent company of MTI Instruments, Inc. and EcoChain, Inc. Through MTI Instruments, MTI is engaged in the design, manufacture and sale of test and measurement instruments and systems that use a comprehensive array of technologies to solve complex, real world applications in numerous industries, including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. Through EcoChain, MTI is developing cryptocurrency mining facilities powered by renewable energy that integrate with the blockchain network. For more information about MTI, please visit https://www.mechtech.com.

 

 

 

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management’s current expectations, as of the date of this communication, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company’s business strategy. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company’s ability to implement its long range business plan for various applications of its technology; the Company’s ability to enter into agreements with any necessary partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company’s technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission.

 

Contact Information: 

Jess Olszowy 

jolszowy@mtiinstruments.com

 

Investor Relations:

Kirin Smith, President

PCG Advisory, Inc.

646.823.8656

Ksmith@pcgadvisory.com

 

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