RICHMOND, BC, April 29 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the 12 month period ended December 31, 2007. The following is a summary of the key points for the period, updated to April 25, 2008:
Financial Highlights:
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(Note - all dollars Canadian)
- Sales revenue and other income was $747,525 for the year compared to
$467,883 for 2006;
- Operating expenses were $15,028,717 for the year compared to
$11,205,275 for 2006;
- Net loss of $14,281,192 for the period ($0.10 per share) compared to
$10,752,392 ($0.10 per share) for 2006;
Sales Highlights:
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- In April 2008, the Company was identified by the U.S. Department of
Energy (DOE) as part of a demonstration project to significantly
reduce peak load and measurably improve power reliability at the
Santa Rita Jail, in California. The project will integrate solar
energy, fuel cell, energy storage and control systems.
- The two 5kW x 4hr VRB Energy Storage System (VRB-ESS(TM)) sold to
Winafrique Technologies Ltd., of Kenya were completed and delivered
to the customer in December 2007 and scheduled for commissioning in
late spring 2008 at two remote telecommunication sites;
- The 15kW x 8hr (120kWh) VRB-ESS sold to Riso National Laboratory in
Denmark was delivered in late 2007 and commissioned in February 2008;
- California Energy Commission and the Sacramento Municipal Utility
District awarded funding towards the purchase of a 20kW x 9hr VRB-ESS
to be installed at a major U.S. telecoms service provider's
telecommunication site in Sacramento, California;
- The two 5kW x 4hr VRB-ESS sold to the University of South Florida in
partnership with Progress Energy Florida were delivered in December
2007 and commissioned in March 2008 for integration with a solar
project on the St. Petersburg campus;
Corporate Highlights:
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- Mr. Justin Lacey joined the Company as the VP Sales and Marketing in
March 2008 with Mr. Brian Beck appointed as VP of Business
Development;
- The Company opened its doors to investors in early spring for a
presentation by CEO, Tim Hennessy and a guided tour of the
manufacturing facility, with the presentation and audio clips posted
on the Company's website for review;
- Throughout 2007, significant product development milestones were
achieved related to the small and large cell stack design resulting
in the streamlining of processes and considerable cost reductions;
and finally,
- The Company continued to build its suite of patents that are
strategically designed to overlap and interlock characteristics of
the technology related to the design, chemistry, process, system,
components and specific application. For a detailed list and
description of VRB patents, please visit the company's website
(posted under 'The Technology/Intellectual Property').
Summary consolidated financial statements of the Company for the period ended December 31, 2007 are set out below. The full consolidated financial statements and MD&A have been filed on SEDAR (www.sedar.com).
About VRB Power
Headquartered in Richmond, Canada, VRB Power Systems Inc. is an energy storage technology developer which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)"). The VRB-ESS can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to "inventory" electricity, allowing for the optimal match of supply and demand.
The VRB-ESS is well suited for a variety of applications. Enabling the provision of "firm" capacity from intermittent renewable generation such as wind and solar; more cost effective and efficient generation of electricity in remote areas; capital deferral for utilities; and load levelling (peak shaving) applications. The VRB-ESS is also capable of providing backup power solutions including applications for utility sub-stations and telecommunication sites. The VRB-ESS is characterized by having the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on substances such as lead or cadmium.
Caution regarding forward-looking statements: VRB Power's press releases may contain forward-looking statements. These statements are based on management's current expectations and beliefs which are subject to a number of known and unknown risks and uncertainties (including, but not limited to, the risk factors described in VRB Power's Annual Information Form filed with the British Columbia Securities Commission and available at www.sedar.com) that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. The Company does not assume any obligation to update any forward-looking statements contained in this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Vince Sorace
President
VRB Power Systems Inc.
Consolidated statements of operations and comprehensive loss
years ended December 31, 2007 and 2006
2007 2006
$ $
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Revenue
Sales 282,842 217,660
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Expenses
General and administrative 8,645,593 5,964,740
Research and development 3,771,513 2,889,952
Amortization of intangible assets 2,028,980 2,028,978
Amortization of plant and equipment 582,631 321,605
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15,028,717 11,205,275
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Operating loss (14,745,875) (10,987,615)
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Other items
Interest and other income 464,683 250,223
Write-down of plant and equipment - (15,000)
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464,683 235,223
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Net loss and comprehensive loss (14,281,192) (10,752,392)
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Loss per share - basic and diluted (0.10) (0.10)
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Weighted average number of shares
outstanding - basic and diluted 139,930,464 111,651,126
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VRB Power Systems Inc.
Consolidated statements of shareholders' equity
years ended December 31, 2007 and 2006
Common shares Contributed
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Shares Amount surplus
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$ $
Balance at December 31, 2005 107,143,223 64,027,192 2,363,824
Net loss for the year - - -
Issued on private placement,
net of issue costs 17,692,309 10,373,706 207,947
Stock-based compensation - - 582,609
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Balance at December 31, 2006 124,835,532 74,400,898 3,154,380
Net loss for the year - - -
Issued on private placement 37,950,000 13,122,488 197,247
Stock-based compensation - - 1,097,666
Exercise of stock options 100,000 10,000 -
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Balance at December 31, 2007 162,885,532 87,533,386 4,449,293
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Shareholders'
Deficit equity
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$ $
Balance at December 31, 2005 (47,759,452) 18,631,564
Net loss for the year (10,752,392) (10,752,392)
Issued on private placement,
net of issue costs - 10,581,653
Stock-based compensation - 582,609
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Balance at December 31, 2006 (58,511,844) 19,043,434
Net loss for the year (14,281,192) (14,281,192)
Issued on private placement - 13,319,735
Stock-based compensation - 1,097,666
Exercise of stock options - 10,000
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Balance at December 31, 2007 (72,793,036) 19,189,643
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VRB Power Systems Inc.
Consolidated balance sheets
as at December 31, 2007 and 2006
2007 2006
$ $
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Assets
Current assets
Cash and cash equivalents 1,544,426 6,884,870
Short-term investments 9,131,252 2,501,562
Accounts receivable 163,452 138,864
Deposits and other receivables 328,415 249,041
Inventory 1,542,740 677,451
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12,710,285 10,451,788
Raw materials inventory 768,292 788,532
Plant and equipment 2,427,078 1,693,916
Intangible assets 4,655,466 6,684,446
Restricted cash 102,502 325,231
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20,663,623 19,943,913
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,473,980 900,479
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Shareholders' equity
Share capital 87,533,386 74,400,898
Contributed surplus 4,449,293 3,154,380
Deficit (72,793,036) (58,511,844)
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19,189,643 19,043,434
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20,663,623 19,943,913
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Approved on behalf of the Board
(sgd) Vincent Sorace (sgd) Timothy Hennessy
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Vincent Sorace, Director Timothy Hennessy, Director
VRB Power Systems Inc.
Consolidated statements of cash flows
years ended December 31, 2007 and 2006
2007 2006
$ $
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Operating activities
Net loss (14,281,192) (10,752,392)
Items not affecting cash
Amortization of intangible assets 2,028,980 2,028,978
Depreciation of plant and equipment 582,631 321,605
Stock-based compensation 1,097,666 582,609
Write-down of plant and equipment - 15,000
Gain on disposal of plant and equipment (1,800) -
Change in non-cash working capital
Increase in accounts receivable (24,588) (138,864)
Increase in deposits and other receivables (79,374) (67,770)
Increase in inventory (845,049) (376,166)
Increase in accounts payable and accrued
liabilities 550,109 355,566
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(10,972,617) (8,031,434)
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Investing activities
Purchase of short-term investments (6,629,690) (2,501,562)
Acquisition of technology licence - (11,200)
Purchase of plant and equipment (1,290,601) (1,240,645)
Decrease in restricted cash 222,729 145,829
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(7,697,562) (3,607,578)
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Financing activity
Issuance of common shares, net of
issue costs 13,329,735 10,581,653
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Net cash outflow (5,340,444) (1,057,359)
Cash and cash equivalents, beginning of year 6,884,870 7,942,229
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Cash and cash equivalents, end of year 1,544,426 6,884,870
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Cash and cash equivalents consist of
Cash 190,952 250,520
Short-term money market investments 1,353,474 6,634,350
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1,544,426 6,884,870
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