DayStar Technologies Announces 2010 Fourth Quarter and Year End Financial Results
Apr 01, 2011, 08:11 ET
MILPITAS, Calif., April 1, 2011 /PRNewswire/ -- DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of solar photovoltaic products based on CIGS thin-film deposition technology, announced financial results for its fourth quarter and full year ended December 31, 2010.
Net loss for the fourth quarter of 2010 was $2.3 million or $0.45 per share, compared with a net loss of $4.6 million or $1.22 per share in the fourth quarter of 2009. Net loss for the full year ended December 31, 2010 was $28.1 million or $6.38 per share, compared with a net loss of $25.0 million or $6.72 per share in 2009. The per share losses were calculated on the weighted average common shares outstanding of 5.1 and 4.4 million for the fourth quarter and year ended December 31, 2010, respectively, compared with 3.8 and 3.7 million for the fourth quarter and year ended December 31, 2009, respectively.
The net loss for the year ended December 31, 2010 included non-cash expenses of $21.6 million. Specifically, $9.8 million of non-cash restructuring charges resulted from the extinguishment of certain liabilities in order to pursue strategic partnerships for offshore manufacturing. Also included in these non-cash expenses was $6.1 million for amortization of the discount on outstanding convertible notes as well as $4.9 million related to the restructuring of these convertible notes during the year.
Excluding non-cash charges, the net losses for the fourth quarter and full year ended December 31, 2010 were $0.6 million or $0.12 per share and $6.5 million or $1.48 per share, respectively, reflecting the significant cost savings measures implemented by the Company.
DayStar Chairman and Interim CEO, Peter Lacey, commented, "The renewable energy industry and the solar sector in particular, represent very attractive markets and are clearly in focus right now for many countries around the globe. Thin-film solar technologies continue to gain market share and we believe CIGS represents a strong growth opportunity within thin-film. During 2010 we restructured our balance sheet and significantly decreased our liabilities and are now well-positioned for a strategic partnership to manufacture CIGS modules offshore and capitalize on this market opportunity. We are actively in discussions with potential strategic partners to implement this strategy."
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 our business that are not historical facts may be considered "forward-looking statements." The forward-looking statements in this press release are based on information available at the time the statements are made and 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. Such forward–looking statements include statements regarding the expected benefits of restructuring measures and prospective fundraising and potential strategic partnership efforts. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause our results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties include our ability to raise substantial additional capital in the short term, our ability to achieve favorable outcomes in pending litigation, our ability to continue our business as a going concern, our ability to execute our commercialization plan, our ability to continue our debt reduction programs, and such other risks and uncertainties detailed in our annual report on Form 10-K for the year ended December 31, 2010, our quarterly reports on Form 10-Q, 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. We undertake 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.
Contact:
DayStar Technologies, Inc.
Christopher T. Lail
Chief Financial Officer
408/582.7100
[email protected]
DAYSTAR TECHNOLOGIES, INC. (A DEVELOPMENT STAGE ENTERPRISE) BALANCE SHEETS |
|||
December 31, |
December 31, |
||
ASSETS |
|||
Current Assets: |
|||
Cash and cash equivalents |
$ 97,058 |
$ 17,320 |
|
Other current assets |
294,743 |
343,083 |
|
Total current assets |
391,801 |
360,403 |
|
Property and Equipment, at cost |
23,876,208 |
52,915,965 |
|
Less accumulated depreciation and amortization |
(5,658,906) |
(6,388,914) |
|
Net property and equipment |
18,217,302 |
46,527,051 |
|
Other Assets: |
|||
Other assets |
30,940 |
246,396 |
|
Total Assets |
$ 18,640,043 |
$ 47,133,850 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current Liabilities: |
|||
Accounts payable and accrued expenses |
$ 6,943,711 |
$ 18,387,530 |
|
Notes and capital leases payable, current portion, net of discount of $664,835 and $795,413, respectively |
4,590,165 |
1,629,587 |
|
Deferred rent, current portion |
— |
139,870 |
|
Total current liabilities |
11,533,876 |
20,156,987 |
|
Long-Term Liabilities: |
|||
Deferred rent |
— |
3,452,790 |
|
Conversion feature |
3,854,272 |
251,618 |
|
Stock warrants |
— |
131,835 |
|
Total long-term liabilities |
3,854,272 |
3,836,243 |
|
Stockholders' Equity: |
|||
Preferred stock, $.01 par value; 3,000,000 shares authorized; 0 shares |
— |
— |
|
Common stock, $.01 par value; 120,000,000 shares authorized; 6,484,516 and 3,767,290 shares issued and outstanding at December 31, 2010 and December 31, 2009, respectively |
64,845 |
37,672 |
|
Additional paid-in capital |
153,272,626 |
145,106,851 |
|
Accumulated deficit |
(10,145,391) |
(10,145,391) |
|
Deficit accumulated during the development stage |
(139,940,185) |
(111,858,512) |
|
Total stockholders' equity |
3,251,895 |
23,140,620 |
|
Total Liabilities and Stockholders' Equity |
$ 18,640,043 |
$ 47,133,850 |
|
DAYSTAR TECHNOLOGIES, INC. (A DEVELOPMENT STAGE ENTERPRISE) STATEMENTS OF OPERATIONS |
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For the Years Ended |
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2010 |
2009 |
||
Revenue: |
|||
Product revenue |
$ — |
$ — |
|
Research and development contract revenue |
— |
— |
|
Total revenue |
— |
— |
|
Costs and Expenses: |
|||
Research and development |
5,519,989 |
14,741,983 |
|
Selling, general and administrative |
5,648,406 |
6,058,676 |
|
Restructuring |
9,753,642 |
— |
|
Depreciation and amortization |
2,154,882 |
3,534,770 |
|
Total costs and expenses |
23,076,919 |
24,335,429 |
|
Other Income (Expense): |
|||
Other (expense) income |
(34,787) |
(485,494) |
|
Interest expense |
(542,167) |
(189,628) |
|
Amortization of note discount and financing costs |
(6,122,181) |
(1,096,330 ) |
|
Gain on derivative liabilities |
6,593,648 |
1,066,853 |
|
Loss on extinguishment of debt |
(4,899,267) |
— |
|
Total other (expense) income |
(5,004,754) |
(704,599) |
|
Net Loss |
$ (28,081,673) |
$ (25,040,028) |
|
Weighted Average Common Shares Outstanding (Basic And Diluted) |
4,398,911 |
3,723,511 |
|
Net Loss Per Share (Basic and Diluted) |
$ (6.38) |
$ (6.72) |
|
SOURCE DayStar Technologies, Inc.