NEW CASTLE, Pa., March 25, 2013 /PRNewswire/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced lead-carbon PbC® batteries and energy storage systems, announced results for its year ended December 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20100119/AXIONLOGO)
For the 2012, revenue was $9.8 million with a net loss of $8.6 million or $0.08 loss per share, compared to revenue of $8.1 million with a net loss of $8.3 million or $0.10 loss per share for 2011. The increase in revenue was principally due to the sale of specialty lead-acid batteries to a major lead-acid battery company that sells the batteries under its own brand – but the revenue in the fourth quarter included $475,000 from the sale, recognized in the period, of PbC batteries to Norfolk Southern for a yard-switcher locomotive. The Norfolk Southern sale was the first significant sale of PbC batteries.
Chairman & CEO Thomas Granville commented, "Axion continued to make important strides in the fourth quarter, making 2012 a landmark year overall. Obviously our best year ever will be the first year when PbC revenue starts to show significant growth but it was a good step in that direction that we were able to recognize the first big PbC sale in the 4th quarter, to Norfolk Southern. This coincides with our first 10K filing without "development stage company" status. With our increase in sales, and more specifically sales of our core business product, we are now recognized as a commercial entity for filing purposes. Further developments, in our transportation segment, included our exclusive arrangement to provide ePower Engine Systems with PbC batteries. ePower retrofits Class 8 trucks (18-wheelers) into hybrid electric operations, using PbC batteries in strings to assist diesel engines and provide constant power to the drive system. The result is significant fuel savings. The first of those trucks is on the road now completing testing with load and it is confirming ePower's claims of money-saving fuel efficiencies. These power-assist operations are separate and distinct from the 'anti idling' program we have, that enables a driver to operate various electrical functions with the diesel engine turned off. International automobile manufacturers continue to express strong interest and test the functionality of PbC batteries for micro-hybrid start-stop applications in new cars and light trucks.
"Our Residential Energy Storage Hub segment qualified for UL and CSA standards in the 4th quarter, and can be used throughout North America with those certifications. Our strategic partnership with Rosewater Energy Group is in place, and we are told that interest in the Hub product line is increasing. We are taking the Hub products to a second design stage working with a new outside vendor whose products and electronics will enable us to upgrade our quality assurance and maintainability. We completed our onsite PowerCube in December of 2011 and it was immediately tied into the PJM utility network. We completed our Siltek project for the US Washington DC Navy Yard in the summer of 2012. These projects are part of the reason that we have seen a huge increase in proposal activity in our energy storage systems overall. These include grid tied applications as well as stand-alones that incorporate renewables such as wind and solar and are located in and out of North America." Granville stated.
He also added that subsequent to the end of 2012, the Company commissioned its automated continuous roll carbon sheeting process, which was the last major hurdle in completely automating the manufacture of PbC products. "We believe that with this final process in place, PbC manufacturing is now completely scalable with the capability of easily being replicated at any battery facility throughout the world".
As of December 31, 2012, Axion had $2.0 million in cash and equivalents, and total current assets of $5.8 million, versus cash of $2.0 million and total current assets of $5.3 million at December 31, 2011. The current ratio at December 31, 2012, was 5.8:1 versus 5.0:1 at December 31, 2011. The Company's plan at the end of 2011 was to raise go forward capital in two stages in early 2012 and early 2013 in order to achieve its goals for 2013 and beyond. The Company has not wavered in pursuing that strategy and to that end, has been working with a highly reputable and experienced investment bank.
Granville concluded, "We have always believed, and continue to believe, that PbC is a game-changing, disruptive technology that will serve as an enabler for other products to economically, and in some cases – safely, come to market and deliver the performance and value for which they were designed. We believe that we are off to an excellent start in 2013, a start that will firmly position us for a step change year."
Conference Call:
Participants should dial into the call ten minutes before the scheduled time using the following numbers: 1-877-317-6789 (USA) or +1-412-317-6789 (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 1-877-344-7529 (USA) or +1-412-317-0088 (international) and using passcode 10026608.
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 is not 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-acid-carbon energy storage technologies. Axion believes this new 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 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.
Charles Trego, CFO
ctrego@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–
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AXION POWER INTERNATIONAL, INC.
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CONSOLIDATED BALANCE SHEETS
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December 31, 2012
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December 31, 2011
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ASSETS
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Current Assets
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Cash and cash equivalents
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$ 2,004,391
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$ 1,987,637
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Accounts receivable
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771,410
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309,354
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Other receivables
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21,860
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162,249
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Prepaid expenses
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173,115
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145,442
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Inventory, net
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2,838,791
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2,717,173
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Total current assets
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5,809,567
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5,321,855
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Property & equipment, net
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7,963,041
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8,417,163
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Other receivables
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41,000
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53,000
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TOTAL ASSETS
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$ 13,813,608
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$ 13,792,018
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
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Accounts payable
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$ 581,503
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$ 520,358
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Other liabilities
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305,510
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429,432
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Notes payable
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113,921
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104,777
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Total current liabilities
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1,000,934
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1,054,567
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|
|
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Deferred revenue
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1,262,295
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1,573,962
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|
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Derivative liabilities
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1,217
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|
15,843
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Notes payable
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331,247
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439,480
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Total liabilities
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2,595,693
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3,083,852
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Stockholders' Equity
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Convertible preferred stock-12,500,000 shares authorized
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Series-A preferred – 2,000,000 shares designated 0 shares issued and outstanding
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-
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-
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Common stock-200,000,000 shares authorized $0.0001 par value
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113,260,006 issued & outstanding (85,531,114 in 2011)
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11,326
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8,552
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Additional paid in capital
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96,013,439
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86,953,180
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Retained Earnings(Deficit)
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(84,555,174)
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(76,001,894)
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Cumulative foreign currency translation adjustment
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(251,676)
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(251,672)
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Total stockholders' equity
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11,217,915
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10,708,166
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ 13,813,608
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$ 13,792,018
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AXION POWER INTERNATIONAL, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS
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Year Ended December 31,
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2012
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2011
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Product
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$ 9,779,711
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$ 7,631,529
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Service
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-
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459,645
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Net sales
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9,779,711
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8,091,174
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|
|
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Costs and expenses
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|
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|
|
|
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Product costs
|
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9,044,441
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|
6,799,302
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|
|
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Research & development
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4,883,033
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5,060,036
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Selling, general & administrative
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4,404,040
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4,463,269
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Interest expense
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|
17,594
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18,863
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|
|
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Impairment of assets
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-
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308,882
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|
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Derivative revaluations (income)
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(14,626)
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(238,618)
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Interest & other income
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(1,490)
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(8,670)
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Loss before income taxes
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(8,553,281)
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(8,311,890)
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Income taxes
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-
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-
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Net Loss
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(8,553,281)
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(8,311,890)
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Foreign Translation Adjustment
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(4)
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(47)
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Comprehensive Income/(Loss)
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$ (8,553,285)
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$ (8,311,937)
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Basic and diluted net loss per share
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$ (0.08)
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$ (0.10)
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Weighted average common shares outstanding
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110,689,664
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85,488,150
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AXION POWER INTERNATIONAL, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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Year Ended December 31,
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2012
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2011
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Net Loss
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$ (8,553,281)
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$ (8,311,890)
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Adjustments to reconcile deficit accumulated for noncash items
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Depreciation
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1,320,594
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1,014,661
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Impairment of assets
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-
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308,882
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|
|
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Derivative revaluations (income)
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(14,626)
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(238,618)
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|
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Share based compensation expense
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445,966
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453,770
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|
|
|
|
|
|
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Changes in operating assets & liabilities
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|
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Accounts receivable
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(462,053)
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(87,432)
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Other receivables
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140,389
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(17,276)
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Prepaid expenses
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(27,673)
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(63,382)
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Inventory, net
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(121,618)
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(1,288,613)
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Accounts payable
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61,145
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(409,663)
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|
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Other liabilities
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(141,742)
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203,628
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Deferred revenue and other
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(311,667)
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188,777
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Net cash used by operating activities
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(7,664,566)
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(8,247,156)
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Cash Flows from Investing Activities
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Other receivables
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12,000
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12,000
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Purchases of property & equipment
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(866,472)
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(3,002,130)
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|
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Net cash used by investing activities
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(854,472)
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(2,990,130)
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|
|
|
|
|
|
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Cash Flows from Financing Activities
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|
|
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Repayment of notes payable
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(99,089)
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(105,039)
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Net proceeds from sale of common stock
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8,634,881
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-
|
|
|
|
Net cash provided (used) by financing activities
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8,535,792
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(105,039)
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|
|
|
|
|
|
|
|
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Net change in cash and cash equivalents
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16,754
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(11,342,325)
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|
|
|
Effect of exchange rate on cash
|
|
(47)
|
|
|
|
Cash and cash equivalents - beginning
|
1,987,637
|
13,330,009
|
|
|
|
Cash and cash equivalents - ending
|
$ 2,004,391
|
$ 1,987,637
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|
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SOURCE Axion Power International, Inc.