Axion Power Reports First Quarter Results for 2014 - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |

Axion Power Reports First Quarter Results for 2014

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Axion Power International, Inc.

NEW CASTLE, Pa., May 16, 2014 /PRNewswire/ -- Axion Power International, Inc., (OTC QB: AXPW), the developer of advanced lead-carbon PbC® batteries and energy storage systems, yesterday announced results for its first quarter ended March 31, 2014.

Axion Power International LOGO.

Net sales for the quarter were $2.3 million with a net loss of $6.5 million, which includes noncash charges aggregating approximately $4.5 million related to the senior note financing that the Company entered into in May of 2013.  The loss in the year-earlier period was $2.1 million.  On an operating basis, the operating loss for the first quarter of 2014 was $2.0 million compared to a net operating loss for the first quarter of 2013 of $2.1 million.  The loss per share for the quarter ended March 31, 2014 was $0.03 loss per share, compared to a 2013 first quarter loss per share of $0.02.

Sales during the first quarter were largely from specialty lead-acid batteries built in our factories for sale under the label of our customer, a large and well-known battery company. The product mix will change as we move from the sale of lead acid batteries for our current legacy business to the sale of larger numbers of PbC batteries as we continue to execute our PbC commercialization strategy.

In an event subsequent to the end of the quarter, our New Jersey strategic partner provided a follow-on order for four 500kw PowerCube™ units that will be used in Solar PV configurations similar in size (600kw approximately) to the unit we installed for them in the first quarter of 2014.

Chairman & CEO Thomas Granville commented, "The follow-on order we announced this week is valued at approximately $1.1 million, which makes it the largest purchase order we have received to date.  Our pipeline for potential PowerCube business has grown considerably in the last nine months, so we are pleased to move this project from near the top of the 'prospective order' list, to the 'confirmed purchase order' list.  The four PowerCubes will be part of four individual Solar PV systems that will provide solar power to a commercial entity, employ net metering with the grid, participate in the frequency regulation market and provide backup power to the commercial entity in the event of an emergency.  We spoke of our 'model' in a letter to shareholders back in January in which we highlighted the advantages of combining Solar PV with storage. That model was the basis for our original New Jersey order and for the recent four unit follow-on order. The frequency regulation portion of that model, with or without any of the various solar configurations, is what has continued to attract potential market participants.  Whether they are building owners looking to reduce the total cost of power, or investors looking for an attractive return or investment institutions looking to provide an alternative investment product to their clients in an emerging energy sector – our model's ROI and IRR have brought them to the table.

"So that's the North American story, but we have also received added interest from more remote sites (island nations, third world countries and emerging countries) where the cost of power is many times what it cost individuals and commercial entities in the US. Most of these locations have abundant sunlight and/or wind, so renewables are a strong alternative. To date, however, these renewable solutions have not included storage for a number of reasons, not the least of which was having a viable storage option. We feel, and our strategic partners feel, that the PowerCube can provide that viable option. As a result we have expanded our initiative in this area," he added.

Granville said that Axion is also very pleased with the progress made by ePower Engine Systems, which recently purchased four trucks for series hybrid conversion. They shared with us, the results of their extensive fuel economy testing, and their belief that additional improvement may be achieved because of the improved equipment they are now working with. In addition, this week ePower also advised Axion that they received notice of issuance from the US Patent Office confirming their foundation patent for engine dominant series electric hybrid drivetrain was approved for issuance.  Granville continued, "We have spoken in the past about the potential growth the battery market would experience should the ePower technology be adopted. It is a relatively easy calculation if you use a very conservative extrapolation from the USDOT numbers speaking to the size of the Series 8 Heavy Duty Truck market, which is approximately 2.7 million trucks. These trucks are rebuilt, depending on type of usage - point to point and back day cab versus over-the-road hauling with the latter being rebuilt approximately every 4 years and the former approximately every 6 years.  Even if we reduced the market estimate by one-half of the approximate 2.7 million trucks, and divided by an average life before rebuild of 5.25 years, the number of trucks rebuilt annually would be 250,000.  Multiply that by 56 batteries and you get 14 million specialty batteries annually. This is why we are excited about this potential market for battery manufacturers," Granville concluded.

The Company had cash and restricted cash of $3.2 million at March 31, 2014, compared to $4.9 million at December 31, 2013.  The current ratio at March 31, 2014 was 3.3:1.  The Company will need to raise additional funds by the beginning of the fourth quarter of 2014 to support the ongoing process of commercialization.

Granville pointed out that Axion Power has asked its shareholders for their approval of a reverse stock split that would make Axion Power shares suitable for a much wider range of US institutional and retail investors.  Once reversed, management also believes the Company would qualify to uplist to a national exchange, which would further increase the population of potential investors.  And finally, we believe an increase in share price created by such a reverse would also enhance the Company's ability to access the broader capital markets.

Conference Call:

The Company's management team will host a conference call tomorrow, Friday May 16, 2014 at 10:00 am Eastern Time to discuss its first quarter ended March 31, 2014 results.

Participants should dial into the call ten minutes before the scheduled time using the following numbers: 1-877-300-8521 (USA) or +1-412-317-6026 (international) to access the call.

Audio Webcast:

There will also be a simultaneous live webcast through the Company's website, www.axionpower.com and selecting the investor tab. Participants should register on the website approximately ten minutes prior to the start of the webcast.

Replay:

An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA) or +1-858-384-5517 (international) and using passcode 10046423.

For those unable to attend to the live webcast, it will be archived shortly following the event for 30 days in the Investors section of the Company's website.

About Axion Power International, Inc.

Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that has not been well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."

Axion Power International, Inc. is the industry leader in the field of lead carbon energy storage technologies. Axion believes its new PbC battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world utilizing Axion's proprietary activated carbon electrodes. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.

For more information, visit www.axionpower.com

Forward-looking Statements

Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.

Contacts

Axion Power International, Inc.
Thomas Granville, CEO
info@axionpower.com  
(724) 654 9300

Allen & Caron, Inc.
Rudy Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087

Len Hall (Media)
len@allencaron.com 
(949) 474-4300

– FINANCIAL TABLES FOLLOW–



AXION POWER INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



March 31, 2014


December 31, 2013

ASSETS








Cash and cash equivalents

$           1,609,466


$         1,169,093

Restricted cash

1,566,678


3,780,341

Accounts receivable

258,141


562,583

Other current assets

160,039


281,055

Inventory, net

2,542,371


2,250,637

Total current assets

6,136,695


8,043,709





Property & equipment, net

6,356,959


6,698,536

Other receivables

26,000


29,000





Total Assets

$        12,519,654


$        14,771,245









LIABILITIES AND STOCKHOLDERS' EQUITY








Accounts payable

$           487,146


$           420,337

Other liabilities

179,265


352,857

Note payable

104,777


104,777

Accrued interest

72,000


52,001

Subordinated convertible notes, net of discount

647,926


583,574

Senior convertible notes, net of discount

390,000


2,046,948

Total current liabilities

1,881,114


3,560,494





Deferred revenue

822,200


922,362

Note payable

191,314


219,722

Derivative liability senior warrants

2,937,788


518,433

Total liabilities

5,832,416


5,221,011





Stockholders' Equity




Convertible preferred stock – 12,500,000 shares designated 0 shares issued and outstanding

-


-

Common stock-350,000,000 shares authorized $0.0001 par value




   216,045,389 shares issued & outstanding (180,401,405 in 2013)

21,576


18,039

Additional paid in capital

109,947,789


106,302,018

Retained earnings (deficit)

(103,030,515)


(96,518,212)

Cumulative foreign currency translation adjustment

(251,612)


(251,611)

Total stockholders' equity

6,687,238


9,550,234





Total Liabilities & Stockholders' Equity

$        12,519,654


$        14,771,245



AXION POWER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME and COMPREHENSIVE INCOME

(Unaudited)



Three Months Ended


March 31,


2014


2013

Net sales

$            2,314,300


$             2,237,647

Cost of tangible goods sold

2,352,636


2,260,479

Cost of goods sold – idle capacity

437,257


501,441

Gross profit

(475,593)


(524,273)









Research and development expense

443,926


517,801

Selling, general and administrative expense

1,113,597


1,021,664

Other (income) expense

(43,791)


-

Operating loss

(1,989,325)


(2,063,738)





Change in value of senior warrants, loss

2,419,355


-

Change in value conversion feature senior notes, loss

(32)


-

Debt discount amortization expense

809,334


-

Interest expense, note payable

5,359


4,580

Extinguishment loss on senior notes conversion

834,000


-

Derivative revaluations expense (income)

-


(1,063)

Interest on convertible notes

454,963


-

Loss before income taxes

(6,512,304)


(2,067,255)





Income taxes

-


-

Net loss

(6,512,304)


(2,067,255)





Foreign translation adjustment

(1)


64

Comprehensive income (loss)

$       (6,512,305)


$         (2,067,191)









Loss per share








Basic and diluted net loss per share

$               (0.03)


$                 (0.02)









Weighted average common shares outstanding

201,274,198


113,285,979



AXION POWER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended


March 31,


2014


2013

Operating Activities








Net loss

$       (6,512,304)


$         (2,067,255)





Adjustments to reconcile deficit accumulated for noncash items




   Depreciation

371,870


360,332

   Derivative revaluations (gain)

-


(1,063)

   Change in value senior warrants, loss

2,419,355


-

   Change in value conversion feature senior notes, loss

(32)


-

   Debt discount amortization expense

742,404


-

   Interest accrued, senior convertible notes paid in common stock

434,963


-

   Extinguishment loss

834,000


-

   Amortization deferred finance costs

66,930


-

   Share based compensation expense

37,905


92,685





Changes in operating assets & liabilities




   Accounts receivable

304,442


484,434

   Other current assets

54,087


(1,731)

   Inventory, net

(291,734)


85,426

   Accounts payable

66,809


44,117

   Other current liabilities

(166,123)


(32,958)

   Accrued interest

20,000


-

   Deferred revenue

(100,162)


(84,983)

Cash (used) by operating activities

(1,717,590)


(1,120,996)





Investing Activities




   Other receivables

3,000


3,000

   Purchase of property & equipment

(30,294)


(90,820)

Cash (used) by investing activities

(27,294)


(87,820)





Financing Activities




   Repayment of note payable

(28,407)


(36,713)

   Change in restricted cash account

2,213,663


-

Cash provided (used) by financing activities

2,185,256


(36,713)

Net change in cash and cash equivalents

440,372


(1,245,529)

Effect of exchange rate on cash

(1)


64

Cash and cash equivalents – beginning

1,169,093


2,004,391

Cash and cash equivalents – ending

$       1,609,466


$         758,926





Supplemental schedule of Non Cash Investing and Financing Activities:




Common stock issued for principal payments on senior notes:

$ 2,335,000



Logo - http://photos.prnewswire.com/prnh/20100119/AXIONLOGO

 

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
News On 6
303 N. Boston Ave.
Tulsa, OK 74103
TULSA'S OWN TM
GREEN COUNTRY'S OWN TM
Oklahoma's Own Newson6.com is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state including Tulsa's Own and Green Country's Own.
All content © Copyright 2000 - 2014, WorldNow and KOTV. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.