RICHMOND, BC, May 30 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the three month period ended March 31, 2008. The following is a summary of the key points for the period, updated to May 29, 2008:
Financial Highlights (Note - all dollars Canadian):
- Sales revenue and other income was $154,199 for the quarter compared
to $85,156 for the same period in 2007;
- Operating expenses were $4,081,661 for the quarter, compared to
$2,959,708 for the same period in 2007;
- Net loss of $3,927,462 ($0.02 per share) for the quarter compared to
a net loss of $2,874,552 ($0.02 per share) for the same period
in 2007.
Sales Highlights
- The Company installed a total of five 5kW x 4hr VRB Energy Storage
Systems (VRB-ESS(TM)) and one 15kW x 8hr VRB-ESS to Riso National
Laboratories in Denmark.
Summary of Q1 2008 Announcements
- 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;
- 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; and
- 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.
Summary consolidated financial statements of the Company for the period ended March 31, 2008 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 deficit
three months ended March 31, 2008 and 2007
Unaudited
Three months Three months
ended ended
March 31, 2008 March 31, 2007
-------------------------------------------------------------------------
$ $
Revenue
Sales 60,251 -
-------------------------------------------------------------------------
Expenses
General and administrative 2,464,523 1,752,053
Research and development 927,428 585,603
Amortization of intangible assets 507,246 507,245
Amortization of plant and equipment 182,464 114,807
-------------------------------------------------------------------------
4,081,661 2,959,708
-------------------------------------------------------------------------
Operating loss (4,021,410) (2,959,708)
-------------------------------------------------------------------------
Other items
Interest and other income 93,948 85,156
-------------------------------------------------------------------------
Net loss and comprehensive loss (3,927,462) (2,874,552)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per share - basic and diluted (0.02) (0.02)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of shares
outstanding - basic and diluted 162,956,961 124,835,532
-------------------------------------------------------------------------
-------------------------------------------------------------------------
VRB Power Systems Inc.
Consolidated statements of shareholders' equity
quarter ended March 31, 2008 and year ended December 31, 2007
Unaudited
Common shares
--------------------------- Contributed
Shares Amount surplus
-------------------------------------------------------------------------
$ $ $
Balance at Dec. 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 -
-------------------------------------------------------------------------
Balance at Dec. 31, 2007 162,885,532 87,533,386 4,449,293
Net loss for the quarter - - -
Stock-based compensation - - 381,749
Exercise of stock options 250,000 38,404 (13,404)
-------------------------------------------------------------------------
Balance at March 31, 2008 163,135,532 87,571,790 4,817,638
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders'
Deficit equity
----------------------------------------------------------
$ $
Balance at Dec. 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
----------------------------------------------------------
Balance at Dec. 31, 2007 (72,793,036) 19,189,643
Net loss for the quarter (3,927,462) (3,927,462)
Stock-based compensation - 381,749
Exercise of stock options - 25,000
----------------------------------------------------------
Balance at March 31, 2008 (76,720,498) 15,668,930
----------------------------------------------------------
----------------------------------------------------------
VRB Power Systems Inc.
Consolidated balance sheets
as at March 31, 2008 and December 31, 2007
Unaudited
March 31, December 31,
2008 2007
-------------------------------------------------------------------------
$ $
Assets
Current assets
Cash and cash equivalents 1,572,796 1,544,426
Short-term investments 5,455,945 9,131,252
Accounts receivable 149,001 163,452
Deposits and other receivables 119,496 328,415
Inventory 1,610,474 1,542,740
-------------------------------------------------------------------------
8,907,712 12,710,285
Raw material inventory 762,783 768,292
Plant and equipment 2,370,305 2,427,078
Intangible assets 4,148,220 4,655,466
Restricted cash 55,922 102,502
-------------------------------------------------------------------------
16,244,942 20,663,623
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 576,012 1,473,980
-------------------------------------------------------------------------
Shareholders' equity
Share capital 87,571,790 87,533,386
Contributed surplus 4,817,638 4,449,293
Deficit (76,720,498) (72,793,036)
-------------------------------------------------------------------------
15,668,930 19,189,643
-------------------------------------------------------------------------
16,244,942 20,663,623
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Approved on behalf of the Board
Signed - Vincent Sorace Signed - Timothy Hennessy
------------------------------ ------------------------------
Vincent Sorace, Director Timothy Hennessy, Director
VRB Power Systems Inc.
Consolidated statements of cash flows
three months ended March 31, 2008 and 2007
Unaudited
Three months Three months
ended ended
March 31, 2008 March 31, 2007
-------------------------------------------------------------------------
$ $
Operating activities
Net loss (3,927,462) (2,874,552)
Items not affecting cash
Amortization 689,710 622,052
Stock-based compensation 381,749 216,808
Change in non-cash working capital
Decrease in accounts receivable 14,451 57,288
Decrease in deposits and other receivables 208,919 52,607
Increase in inventory (62,225) (169,355)
Decrease in accounts payable (897,968) (84,033)
-------------------------------------------------------------------------
(3,592,826) (2,179,185)
-------------------------------------------------------------------------
Investing activities
Decrease (increase) in short-term
investments 3,675,307 (51,926)
Purchase of plant and equipment (125,691) (141,206)
Decrease in restricted cash 46,580 70,848
-------------------------------------------------------------------------
3,596,196 (122,284)
-------------------------------------------------------------------------
Financing activity
Issuance of common shares 25,000 -
-------------------------------------------------------------------------
Net cash outflow 28,370 (2,301,469)
Cash and cash equivalents, beginning
of period 1,544,426 6,884,870
-------------------------------------------------------------------------
Cash and cash equivalents, end of period 1,572,796 4,583,401
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents consist of:
Cash and bank overdrafts (187,569) 452,589
Short-term money market investments 1,760,365 4,130,812
-------------------------------------------------------------------------
1,572,796 4,583,401
-------------------------------------------------------------------------
-------------------------------------------------------------------------