Waste Management services company BioHiTech Global Inc (Nasdaq:BHTG) reported a widening of its net loss in the second quarter, but saw its revenue jump from last year thanks to a boost in sales and rentals.
For the period ended on June 30, BioHiTech reported a loss of US$5.5mln or US$0.39 per share, compared to a loss of US$1.9mln or US$0.23 per share in the year-ago quarter.
From a sales perspective, the performance of the company, which is based in Chestnut Ridge, New York, looked better as its revenue jumped to US$909,000 in the quarter, up from US$549,000 in the year-ago period.
Recurring revenue from rentals, service and maintenance accounted for a little over half of sales and reached US$458,000 while revenue from equipment sales climbed 9.4% to US$200,000.
CEO Frank Celli noted that sales of the company’s Revolution Series Digesters, which process food waste and offer an alternative to landfill disposal, proved particularly buoyant in the quarter.
“As our Revolution Series Digesters gain traction in the marketplace, we achieved significant quarter over quarter revenue growth in our digester business as well as a further expansion of our sales pipeline,” Celli remarked in a statement.
The increase in the company’s net loss was owed to a US$3.5mln non-cash interest expense recorded in the second quarter that related mostly to the valuation of certain warrants outstanding upon the conversion of debt into common stock.
In the quarter, the company received a patent from the US Patent and Trademark Office for its sophisticated food-waste weight tracking system, which can transmit information over a computer network or the cloud and could throw up competitive advantages in future.
Another advance was that BioHiTech reached a deal with Gold Medal Group, a traditional waste disposal company, to allow the company to use its food-waste digesters and supply chain data analytics platform.
“Our business partnership with Gold Medal Group has added a significant management services revenue stream while enabling us to begin to demonstrate the true value of our technology to the traditional waste management industry,” noted Celli.
It also completed the uplisting of its shares to the Nasdaq last April and was added to the Russell Microcap Index in June.
BioHiTech offers sustainable waste disposal and supply chain management help for businesses and municipalities and the digesters it sells and rents process organic food waste.
BioHiTech shares finished 1% higher Wednesday at US$4.40.
Contact Ellen Kelleher at [email protected]