Axion Power Reports First Quarter Results for 2012

15 May, 2012, 07:30 ET from Axion Power International, Inc.

NEW CASTLE, Pa., May 15, 2012 /PRNewswire/ -- Axion Power International Inc (OTC Bulletin Board: AXPW), the developer of advanced lead­-carbon PbC® batteries and energy storage systems, today announced results for its first quarter ended March 31, 2012.

Net product sales increased to $1.8 million in 2012 from $1.0 million in 2011. Net product sales increased in 2012 compared to 2011 primarily due to the sale of specialty lead-acid batteries to a single customer who will sell these batteries under their brand, as well as carry the cost of inventory and provide the raw materials for production of these batteries.

Net loss for 2012 was $2.3 million or $0.02 per basic and diluted share compared to $2.4 million or $0.03 per basic and diluted share in 2011.

Excluding the cash inflow of approximately $8.6 million in net proceeds from our sale of common stock in the first quarter of 2012, our net cash flow for 2012 was negative $2.1 million compared to a negative $2.9 million in 2011, a reduction in net cash burn of $0.8 million

Other highlights of our first quarter of 2012 include:

  • In January, we were awarded a purchase order from Siltek, Inc. confirming their participation in a Zero Energy Building for the US Navy in the Washington D.C. Naval Yard.  Axion will be providing an array of its PbC batteries, system electronics and battery management system that together will serve as an example of Axion's "mini-cube".
  • Also in January, we appointed Vani Dantam to the new position of Senior Vice President/Business Development, Sales and Marketing. Vani brings to our company an extraordinary background that includes broad battery industry experience and proven leadership.  He has expressed his confidence and personal commitment to the commercialization of our PbC Technology.
  • In February, we successfully concluded a funding of approximately $8.6 million in net proceeds from the sale of our common stock. The proceeds from this raise will be used for the near term funding of working capital, capital expenditures and corporate operations.
  • Last year we announced that we had received a series of orders for the production and immediate delivery of specialty flooded lead-acid batteries. This February we received guidance that the purchase orders are expected to continue at least through the end of 2012. The batteries are branded by the purchaser, and the purchaser will provide all raw materials and the carrying cost for the continuing order.
  • In April, in an event subsequent to the end of the quarter, we received an initial large scale order from Norfolk Southern (NS) for PbC batteries for use in a battery powered locomotive. This $400K purchase order is part of an overall total purchase order of $475K.  This total purchase order will be shipped and deployed in the next 90 – 120 days.  To date, this is the largest single PbC battery order that we have received.

Chairman & CEO Thomas Granville commented, "It has only been about six weeks since our last earnings release, but the first quarter of 2012 has been a busy one. I have previously mentioned that the road to PbC commercialization has been longer than we anticipated, but that we were finding the market opportunities, for our PbC product applications, larger and more diverse than we had initially anticipated. The first quarter of 2012 provided further proof of the market diversity for our technology. We have received numerous new requests for proposals and quotations, more than half of which have come from new markets for our product. And although these are new opportunities in new markets, it is the historical advantage of PbC batteries that makes the equation work. The old standby values that are as important today as they ever were and include: high charge acceptance; fast recharge rate; voltage consistency in large string applications; superior 'extreme temperature' performance; and low cost on a per cycle basis."

Granville concluded, "when you add these advantages to the historical PbC attributes - ease of manufacture on existing equipment worldwide; high rate of recyclability (99.1%) and the strong safety record of lead-acid batteries, it is easy to see why we feel our technology will be one of the ultimate winners in numerous energy storage market applications. And it is easy to see why so many potential customers agree with that premise."

Conference Call / Webcast

Today at 11:00 am ET (8 a.m. Pacific) a conference call will be held to review the AXPW results.

Interested parties should call 877-317-6789 (domestic) or 412-317-6789 (international), to access the call. You may also access this call via the Internet by visiting the company's website at www.axionpower.com and clicking on the Investors link. Access to the webcast will be available for 90 days.

For those who are unavailable to listen to the live broadcast, a replay will be available for one week and can be accessed by dialing 877-344-7529 (domestic) and 412-317-0088 (international) and using conference number 10013320.

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

–FINANCIAL TABLES FOLLOW–

AXION POWER INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(A Development Stage Company)

March 31, 2012

December 31, 2011

ASSETS

(Unaudited)

Current Assets

Cash and cash equivalents

$              8,520,232

$              1,987,637

Accounts receivable

506,266

309,354

Other receivables

63,031

162,249

Prepaid expenses

87,516

145,442

Inventory, net

2,597,211

2,717,173

Total current assets

11,774,256

5,321,855

Property & equipment, net

8,398,205

8,417,163

Other receivables – long term

50,000

53,000

TOTAL ASSETS

$            20,222,461

$             13,792,018

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$                 677,507

$                 520,358

Other current liabilities

359,974

429,432

Notes payable

104,777

104,777

Total current liabilities

1,142,258

1,054,567

Deferred revenue

1,517,247

1,573,962

Derivative liabilities

53,570

15,843

Notes payable

412,725

439,480

Total liabilities

3,125,800

3,083,852

Stockholders' Equity

Convertible preferred stock-12,500,000 shares authorized

-

-

Common stock-200,000,000 shares authorized $0.0001 par value

 113,211,091 shares issued & outstanding (85,531,114 in 2011)

11,321

8,552

Additional paid in capital

95,671,664

86,953,180

Deficit accumulated during development stage

(78,334,683)

(76,001,894)

Cumulative foreign currency translation adjustment

(251,641)

(251,672)

Total stockholders' equity

17,096,661

10,708,166

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$            20,222,461

$             13,792,018

AXION POWER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(A Development Stage Company)

UNAUDITED

Three Months Ended

Inception

March 31,

9/18/2003 to

2012

2011

3/31/2012

Product

$           1,760,562

$           1,035,442

$        14,052,555

Service

-

24,000

1,279,726

Net sales

1,760,562

1,059,442

15,332,281

Costs and expenses

Product costs

1,566,570

803,534

12,163,529

Research & development

1,400,823

1,074,952

30,271,715

Selling, general & administrative

1,083,419

1,033,538

30,848,103

Interest expense

4,015

-

2,381,186

Impairment of assets

-

-

2,062,160

Derivative revaluations

37,727

508,669

(1,588,909)

Mega C Trust share augmentation

-

-

400,000

Interest & other income

797

923

(568,489)

Loss before income taxes

(2,332,789)

(2,362,174)

(60,637,014)

Income taxes

-

-

4,300

Accumulated deficit

(2,332,789)

(2,362,174)

(60,641,314)

Less preferred stock dividends and beneficial conversion feature

-

-

(17,693,369)

Net loss applicable to common shareholders

$     (2,332,789)

$      (2,362,174)

$    (78,334,683)

Foreign Currency Translation Adjustment

(31)

-

(251,641)

Comprehensive Income(Loss)

$    (2,332,758)

$     (2,362,174)

$   (78,083,042)

Basic and diluted net loss per share

$              (0.02)

$               (0.03)

$               (2.19)

Weighted average common shares outstanding

103,165,552

85,453,302

35,832,565

AXION POWER INTERNATIONAL, INC.  

CONSOLIDATED STATEMENTS OF CASH FLOWS

(A Development Stage Company)

UNAUDITED

 Three Months Ended

 Inception 

March 31,

 9/18/2003 to

2012

2011

3/31/2012

Cash Flows from Operating Activities

Accumulated deficit

$           (2,332,789)

$                (2,362,174)

$         (60,641,314)

Adjustments to reconcile deficit accumulated for noncash items

Depreciation

355,370

209,544

3,027,492

Interest expense

-

-

1,970,251

Impairment of assets

-

-

2,062,161

Derivative revaluations

37,727

508,669

(1,588,909)

Mega C Trust share augmentation

-

-

400,000

Share based compensation expense

95,309

129,248

6,331,546

Changes in operating assets & liabilities

Accounts receivable

(196,912)

(652,006)

(513,135)

Other receivables– long term

99,218

3,034

(41,071)

Prepaid expenses

57,926

20,357

(84,928)

Inventory, net

119,962

(768,315)

(2,597,210)

Accounts payable

157,150

1,067,442

2,332,152

Other current liabilities

(69,458)

28,794

381,106

Liability to issue equity instruments

-

-

178,419

Deferred revenue and other

(56,715)

(57,620)

1,604,765

Net cash used by operating activities

(1,733,212)

(1,873,027)

(47,178,675)

Cash Flows from Investing Activities

Other receivables

3,000

3,000

(1,267,016)

Purchases of property & equipment

(336,412)

(970,858)

(12,093,082)

Investment in intangible assets

-

-

(167,888)

Net cash provided (used) by investing activities

(333,412)

(967,858)

(13,527,986)

Cash Flows from Financing Activities

Net proceeds from related party debt

-

-

5,445,458

Repayment of notes payable

(26,755)

(25,967)

517,503

Net proceeds from sale of common stock

8,626,007

-

53,797,372

Net proceeds from exercise of warrants

-

-

2,014,766

Net proceeds from sale of preferred stock

-

-

7,472,181

Net cash provided (used) by financing activities

8,599,252

(25,967)

69,247,280

Net change in cash and cash equivalents

6,532,628

(2,866,852)

8,540,619

Effect of exchange rate on cash

(33)

-

(20,387)

Cash and cash equivalents - beginning

1,987,637

13,330,009

-

Cash and cash equivalents - ending

$      8,520,232

$                10,463,157

$          8,520,232

 

SOURCE Axion Power International, Inc.



RELATED LINKS

http://www.axionpower.com