VANCOUVER – Biofuel company Lignol Energy Corp. (TSXV:LEC) said Monday its first-quarter loss widened slightly to $ 1 million from a year-earlier $ 900,000, and the research-and-development stage firm has sufficient resources to continue operating until March 2012.
The loss amounted to two cents per share, unchanged from the prior-year period. Operating expenses fell by $ 400,000 as Lignol reduced its workforce as well as trimming third-party contract research and pilot plant operating costs.
Lignol said it continues to work with financial advisers on a search for potential strategic partner investments to provide it with the medium-term financing it needs to begin development of its initial commercial projects.
As of July 31, the company said its gross resources available add up to $ 6.5 million — $ 2.9 million in cash and short-term investments and up to $ 3.6 million in funding receivable in the future from contracted government and corporate funding agreements. After deducting $ 1.5 million in current liabilities, net resources available were $ 5 million.
“The company presently believes that the above combination of funding sources should be sufficient to continue funding its ‘baseline operations’ until March 2012,” several months longer than earlier projected.
Lignol is developing technologies to produce cellulosic ethanol and renewable chemicals from non-food feedstocks. It currently has an operational, integrated pilot-scale biorefinery and has completed an engineering design package for a commercial-scale biorefinery.
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