DayStar Technologies Announces 2009 Fourth Quarter and Year End Financial Results

SANTA CLARA, Calif., March 19 /PRNewswire-FirstCall/ -- DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of solar photovoltaic products based on CIGS thin-film deposition technology, today announced financial results for its fourth quarter and full year ended December 31, 2009.

Net loss for the fourth quarter of 2009 was $4.6 million or $0.14 per share, compared with a net loss of $7.8 million or $0.23 per share in the fourth quarter of 2008. Net loss for the full year ended December 31, 2009 was $25.0 million or $0.75 per share, compared with a net loss of $26.3 million or $0.79 per share in 2008. The lower net loss reflects the implementation of cost savings measures including a reduction in workforce in order to focus our resources on the development of our core CIGS technology while we continue fundraising efforts to built-out our initial production line. The loss on sale also reflects also reflects the decrease in payroll and research and development expenses resulting from the sale of our Halfmoon, NY operations earlier in the year. The per share losses were calculated on the weighted average common shares outstanding of 33.8 and 33.5 million for the fourth quarter and year ended December 31, 2009, respectively, compared with 33.4 and 33.2 million for the fourth quarter and year ended December 31, 2008, respectively.

About DayStar Technologies, Inc.

DayStar Technologies, Inc. is engaged in the development, manufacturing and marketing of solar photovoltaic products based upon CIGS thin film deposition technology. For more information, visit the DayStar website at www.daystartech.com. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release regarding DayStar's business that are not historical facts may be considered "forward-looking statements." The forward-looking statements in this news release, such as statements that DayStar is confident that its compliance plan, when implemented, will meet the requirements for continued listing on NASDAQ, are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve substantial risks and uncertainties that could cause actual results and outcomes to be materially different. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause DayStar's results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties are detailed in DayStar's annual report on Form 10-K for the year ended December 31, 2009, and other filings made with the Securities and Exchange Commission.  Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. DayStar undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

    
    
                               DAYSTAR TECHNOLOGIES, INC.  
                             (A DEVELOPMENT STAGE ENTERPRISE) 
    
                                      BALANCE SHEETS 
    
    
                                                    
                                                  December 31,   December 31,
                                                      2009          2008
                                                      ----          ----
    
                           ASSETS
    Current Assets:
        Cash and cash equivalents                     $17,320   $17,120,401
        Other current assets                          343,083       543,357
                                                      -------       -------
            Total current assets                      360,403    17,663,758
                                                      -------    ----------
    
    Property and Equipment, at cost                52,915,965    46,022,825
        Less accumulated depreciation and
         amortization                              (6,388,914)   (8,942,105)
                                                   ----------    ----------
            Net property and equipment             46,527,051    37,080,720
                                                   ----------    ----------
    
    Other Assets                                      246,396       204,108
                                                      -------       -------
            Total Assets                          $47,133,850   $54,948,586
                                                  ===========   ===========
    
            LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
        Accounts payable and accrued expenses     $18,387,530    $7,554,814
        Notes and capital leases payable, current
         portion                                    1,629,587       171,983
        Deferred rent, current portion                139,870       175,212
        Deferred revenue and gain                           -       420,000
                                                          ---       -------
            Total current liabilities              20,156,987     8,322,009
    Long-Term Liabilities:
        Deferred rent                               3,452,790     2,951,557
        Conversion feature                            251,618             -
        Stock warrants                                131,835       125,481
                                                      -------       -------
            Total long-term liabilities             3,836,243     3,077,038
                                                    ---------     ---------
    Stockholders' Equity                           23,140,620    43,549,539
                                                   ----------    ----------
            Total Liabilities and Stockholders'
             Equity                               $47,133,850   $54,948,586
                                                  ===========   ===========
    
    
    
                                 DAYSTAR TECHNOLOGIES, INC. 
                              (A DEVELOPMENT STAGE ENTERPRISE) 
    
                                  STATEMENTS OF OPERATIONS 
      
    
                                                          
                                                              
                                    (Unaudited)               
                               For the Three Months         For the Years
                                 Ended December 31,       Ended December 31,
                               --------------------      --------------------
                               2009          2008         2009           2008
                               ----          ----         ----           ----
    
    Revenue:                     $-            $-           $-             $-
                                ---           ---          ---            ---
    Costs and Expenses:
      Research and
       development        2,577,712     5,687,197    14,741,983    17,678,212
      Selling, general
       and administrative 1,212,026     2,057,746     6,058,676     8,864,142
      Depreciation and
       amortization         739,744       934,832     3,534,770     3,242,504
                            -------       -------     ---------     ---------
       Total costs and
        expenses          4,529,482     8,679,775    24,335,429    29,784,858
    Other Income
     (Expense):
      Other (expense)
       income                  (217)      132,244      (485,494)      848,409
      Interest expense      (84,031)       (7,392)     (189,628)      (39,431)
      Amortization of note
       discount and
       financing costs     (988,847)            -    (1,096,330)            -
      Gain on derivative
       liabilities        1,038,512       730,827     1,066,853     2,645,609
                          ---------       -------     ---------     ---------
       Total other
        (expense) income    (34,583)      855,679      (704,599)    3,454,587
                            -------       -------      --------     ---------
    Net Loss            $(4,564,065)  $(7,824,096) $(25,040,028) $(26,330,271)
                        ===========   ===========  ============  ============
    Weighted Average
     Common Shares
     Outstanding (Basic
     and Diluted)        33,807,460    33,438,862    33,511,598    33,164,993
                         ==========    ==========    ==========    ==========
    Net Loss
     Per Share (Basic 
      and Diluted)           $(0.14)       $(0.23)       $(0.75)       $(0.79)
                             ======        ======        ======        ======

SOURCE DayStar Technologies, Inc.