HARBOR CITY, Calif., April 15, 2011 /PRNewswire/ -- Balqon Corporation (OTCBB: BLQN), a developer and manufacturer of zero-emissions electric drive systems, lithium battery systems and medium to heavy-duty electric vehicles, today announced its financial results for the year ended December 31, 2010.
Revenues for 2010 were $677,745, a decrease of $2,921,007, or 82 percent, from revenues of $3,598,752 for 2009. The decrease in net revenues in 2010 was primarily attributed to working capital constraints during 2010. Balqon also reported a net loss of $4,302,633 for 2010, as compared to a net loss of $3,015,405 for 2009, a 43 percent increase. The $1,287,228 increase in net loss during 2010 is primarily due to a $939,468 increase in interest expense and a net $299,474 increase in non-cash private placement costs. The increase in interest expense and private placement costs is largely attributable to borrowings of $2,350,000 under convertible notes issued in 2010 as compared to borrowings of $1,000,000 under convertible notes issued during 2009.
Between February 2010 and April 2010, Balqon raised $1,500,000 through the sale of its convertible notes and warrants in a private placement transaction. Between July 2010 and December 2010, Balqon raised an additional $850,000 through the sale of its senior secured convertible debentures and warrants in a private placement transaction. In December 2010, Balqon raised an additional $5,000,000 through the issuance of 7,812,500 shares of common stock and a five-year warrant to purchase 7,812,500 shares of common stock at an exercise price of $0.64 per share, subject to adjustment. The gross proceeds of $7,350,000, less offerings costs, were allocated to current and future working capital needs.
"Our determination in 2010 to implement a global sales strategy for our electric drive systems and battery systems technologies has produced significant results in early 2011," said Balwinder Samra, CEO of Balqon Corporation. "Our global sales and new product development efforts have resulted in a 674 percent increase in our backlog to approximately $18.5 million in April 2011, consistent with our belief that the global market for electric vehicles is growing rapidly."
As of April 12, 2011, Balqon had a backlog of approximately $18,540,429 as compared to $2,747,856 in April 2010. A significant portion of this backlog consists of electric drive systems ordered by OEMs of buses and trucks located in emerging markets such as China and India. The purchase order for 300 electric drive systems from Winston Global Energy, an affiliate of Balqon's Chairman of the Board, and orders for Balqon's Nautilus XE20 electric yard tractors, from Port of Los Angeles and Ford Motor Company, are also included in Balqon's backlog.
During 2010, significant management resources were utilized in raising capital to improve liquidity which culminated in a $5,000,000 equity raise in December 2010. As of December 31, 2010, Balqon had working capital of $1,955,146. The Company's available capital resources on December 31, 2010 consisted primarily of approximately $4,407,273 in cash and cash equivalents. Balqon expects that its future available capital resources will consist primarily of cash on hand, cash generated from its business, if any, and future debt and/or equity financings, if any.
About Balqon Corporation
Headquartered in Harbor City, California, Balqon Corporation is a leading developer of zero-emissions electric drive systems, lithium battery systems and medium to heavy-duty electric vehicles. Balqon's proprietary electric drive system encompasses complete power management, propulsion, flux vector motor controllers and energy systems. Balqon electric vehicles and drive systems are marketed globally to companies, governments and municipalities looking for viable and effective ways to reduce their vehicle maintenance and operating costs and lower carbon emissions. Balqon is recognized as a pioneer in commercial electric vehicle technology and development of energy efficient transportation solutions. For more information, please visit www.balqon.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation, Balqon's ability to fulfill its backlog and the growing global demand for electric vehicles are forward-looking statements that involve a number of risks and uncertainties. The actual future results of Balqon Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; Balqon Corporation's ability to attract sufficient capital and labor to manufacture its products; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation's filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the "Risk Factors" section of Balqon Corporation's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Cate Powers for Balqon
SOURCE Balqon Corporation