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:
August 1, 2014
Date of Earliest
Event Reported: August 1, 2014
(Exact name
of registrant as specified in its charter)
Nevada |
333-184443 |
76-0625217 |
(State or other jurisdiction
of incorporation) |
(Commission File
Number) |
(I.R.S. Employer
Identification No.) |
22305 Gosling
Road
Spring, Texas
77389
(Address of
principal executive offices)(Zip Code)
Registrant's
telephone number, including area code: (281) 651-0200
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:
[__] |
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)) |
All
statements that are included in this Report and the attachments hereto, other than statements of historical fact, are forward-looking
statements. Forward-looking statements involve known and unknown risks, assumptions, uncertainties, and other factors. Statements
made in the future tense, and statements using words such as “may,” “can,” “could,” “should,”
“predict,” “aim’” “potential,” “continue,” “opportunity,” “intend,”
“goal,” “estimate,” “expect,” “expectations,” “project,” “projections,”
“plans,” “anticipates,” “believe,” “think,” “confident” “scheduled”
or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not a guarantee of performance
and are subject to a number of risks and uncertainties, many of which are difficult to predict and are beyond our control. These
risks and uncertainties could cause actual results to differ materially from those expressed in or implied by the forward-looking
statements, and therefore should be carefully considered. We caution you not to place undue reliance on the forward-looking statements,
which speak only as of the date of this Report. We disclaim any obligation to update any of these forward-looking statements as
a result of new information, future events, or otherwise, except as expressly required by law.
Item
2.02 Results of Operations and Financial Condition.
On
August 1, 2014, Coil Tubing Technology, Inc. (“Coil Tubing”) issued a press release regarding its financial results
for the second quarter ended June 30, 2014. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The
information contained in this Current Report (including exhibit 99.1 furnished herewith) shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set
forth by specific reference in such a filing.
Item 7.01 Regulation
FD Disclosure.
The information
set forth under Item 2.02 of this Report is incorporated by reference in this Item 7.01.
Item 9.01 Financial Statements
And Exhibits.
Exhibit No. |
Description |
|
|
99.1* |
Press Release of Coil Tubing Technology, Inc., dated August 1, 2014 |
|
|
* Furnished herewith.
SIGNATURES
Pursuant
to the requirements 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.
|
COIL TUBING TECHNOLOGY, INC. |
|
|
Date: August 1, 2014 |
By: /s/ Jason Swinford |
|
Jason Swinford |
|
Chief Executive Officer |
EXHIBIT
INDEX
Exhibit No. |
Description |
|
|
99.1* |
Press Release of Coil Tubing Technology, Inc., dated August 1, 2014 |
|
|
* Furnished herewith.
Exhibit 99.1
Coil Tubing Reports 2nd Quarter 2014 Financial Results
Spring, TX -- (Businesswire) -- 08/1/2014 – Coil Tubing
Technology, Inc. (OTCQB:CTBG), a leading provider of enterprise-class coil tubing products and services, announced that the Company
has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission reporting results for the three and six
months ended June 30, 2014.
During the second quarter of 2014, our
sales increased due to the addition of new rental tools and an emphasis on the sale of our tool products. Our revenues for the
three months ended June 30, 2014 were approximately $1,645,000 compared to $1,420,000 during the three months ended June 30, 2013,
an increase of $225,000. Our overall revenues for the six months ended June 30, 2014 and 2013 were $2,913,000 and $3,245,000, respectively.
We have significantly diversified our sales portfolio to include new rental tools, an expanded product sales catalog and international
service support. Additionally, we have entered into an international product service agreement with a major oil and gas service
company to purchase certain of our tools and for us to provide support services for their Mexico and South American operations.
We expect to deliver products and services to this customer in the 3rd quarter of this year. We believe that diversifying
our product and service portfolios and partnering with established international oil and gas companies outside the United States
and Canada will increase our sales revenue through the remainder of 2014.
The summary of our financial results are as follows:
| v | We had a net loss of $108,000 for the
three months ended June 30, 2014, compared to a net loss of $173,000 for the three months ended June 30, 2013, a decrease in net
loss of $65,000, representing a 38% improvement from the prior period. The decrease in 2nd quarter net loss
was mainly attributable to a $303,000 or 3,367% increase in product sales during this quarter. For the six months ended June 30,
2014 and 2013, our net losses were $581,000 and $239,000, respectively. This overall increase of $342,000 in net loss is related
to a decrease in rental tool sales and an increase in selling, general and administrative costs. |
| v | Basic and diluted net loss per share for
the three months ended June 30, 2014 and 2013 were ($0.01) and ($0.01), respectively. Basic and diluted net loss per share for
the six months ended June 30, 2014 and 2013 were ($0.04) and ($0.02), respectively. |
| v | The Company reported a gross profit of
$758,000 for the three months ended June 30, 2014, as compared to a gross profit of $643,000 for the three months ended June 30,
2013; an increase of $115,000 or 18%. For the six months ended June 30, 2014 and 2013, gross profit was $1,276,000 and $1,614,000,
respectively, a decrease of $338,000 or 6%. This decrease mainly reflects a decrease in the rental of our coil tubing products. |
| v | For the three months ended June 30, 2014
as compared to the same period in 2013, the Company reported an increase in operating expenses of $41,000 or 5%, principally related
to higher litigation expenses which was offset by lower compensation. For the six months ended June 30, 2014 as compared to the
same period in 2013, operating expenses decreased by $19,000 or 1%. |
| v | The Company's working capital was $1,916,000
at June 30, 2014. For the six months ended June 30, 2014, cash flow provided by operations was $775,000. During the six months
ended June 30, 2014, the Company’s principal investing activity was the purchase of rental tools and equipment costing $583,000.
|
Mr. Jason Swinford, CEO of the Company, commented, "We
are beginning to see a positive trend in sales to our new international customers related to the development of new and innovative
tools to meet their demands and our new service offerings to support their international operations. We will continue to invest
in the development of new coil tubing tools to meet the demands of customers and brand ourselves as a coil tool technology leader.”
About Coil Tubing Technology
Coil Tubing Technology, Inc. is a fully reporting public corporation
located in Spring, Texas, and is the parent company of Coil Tubing Technology Holdings, Inc.,
a Nevada corporation, which in turn has three wholly-owned subsidiaries, Total Downhole Solutions, Inc. (“TDS”)
and Coil Tubing Technology, Inc. (“CTT Texas”), both Texas corporations and Coil Tubing Technology Canada Inc.,
an Alberta, Canada corporation (“CTT Canada”). The Company specializes in providing coil tubing products
and service solutions to oil and gas clients on a regional, national and international basis. Its principals have been in the tool
rental business for more than 40 years. For more information, please visit our website at www.coiltubingtechnology.com or call
281-651-0200.
Forward-Looking Statements
This press release contains forward-looking statements, including
information about management’s view of the Company’s future expectations, plans and prospects. In particular, when
used in the preceding discussion, the words "believes," "expects," "intends," "plans,"
"anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements.
Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking
statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it
can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risk factors and others are included
from time to time in documents the Company files with the Securities and Exchange Commission, including but not limited to, its
Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on the Company's
future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company
cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance
on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of
this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties
that are not paid for by the Company.
Contact:
Coil Tubing Technology, Inc.
Mr. Jerry Swinford
281-651-0200
www.coiltubingtechnoloy.com
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