VANCOUVER, Aug. 29 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the six month period ended June 30, 2007.
The following is a summary of the key points for the period, updated to August 28, 2007 (Note - all dollars Canadian)
- Sales revenue and other income was $201,913 for the six months
compared to $182,922 for the comparative period in 2006;
- Operating expenses were $6,497,681 for the period compared to
$5,248,689 for the comparative period in 2006;
- Net loss of $6,295,768 for the period ($0.05 per share) compared to
$5,065,767 ($0.05 per share) for the comparative period in 2006;
- In August 2007, the Company completed the sale of 37,950,000 common
shares at a price of $0.38 per share representing gross proceeds of
$14,421,000 by way of a bought deal financing. Commissions were paid
consisting of 6.5% cash ($937,365) plus 5% broker's compensation
options, each option being exercisable to acquire one common share at
$0.38 per share for a period of 18 months from closing.
- In May 2007 the Company announced the supply of a 5kW x 4hr
VRB-ESS(TM) to a large Canadian Telecommunications provider for
assessment in a remote "off grid" telecommunications site on a trial
to purchase basis;
- In July 2007 the company announced that the University of South
Florida, in partnership with Progress Energy Florida, purchased two
5kW x 4hr VRB Energy Storage Systems, which it will integrate with a
solar project on the St. Petersburg campus of the University of South
Florida. This project is aimed at evaluating the storage of
intermittent solar photovoltaic energy and utilizing that energy at a
time of maximum benefit to the customer and utility power systems.
- The Company completed the construction of the 15kW x 8hr (120kWh)
VRB-ESS ordered by Risø National Laboratory in Denmark ("Riso") which
was announced in June 2006. Riso conducts research on new
technologies that can create opportunities for Danish Society in
general and Danish industry specifically. The system has been shipped
to Denmark and is currently in the process of being commissioned.
- Systems previously deployed continue to perform to expectations with
good feedback from customers.
The consolidated financial statements of the Company for the period ended June 30, 2007 and Management's Discussion and Analysis ("MD&A") thereon were prepared in accordance with Canadian generally accepted accounting principles and are presented in Canadian dollars. The Consolidated Balance Sheets, Consolidated Statements of Operations and Deficit and Consolidated Statements of Cash Flows are set out below. The full financial statements and MD&A have been filed on SEDAR (www.sedar.com).
About VRB Power
Headquartered in Vancouver, 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. As a "green" technology, the VRB-ESS is characterized by having a low ecological impact and is unlike most other conventional energy storage systems that rely on toxic 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
six months ended June 30, 2007 and 2006
Unaudited
Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
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$ $ $
Revenue
Sales 57,263 37,285 57,263 72,285
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Expenses
General and
administrative 2,200,572 1,473,804 3,952,625 2,980,111
Research and
development 675,559 702,230 1,261,162 1,109,792
Amortization of
intangible assets 507,243 506,683 1,014,488 1,013,368
Amortization of
plant and equipment 154,599 80,456 269,406 145,418
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3,537,973 2,763,173 6,497,681 5,248,689
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Operating loss (3,480,710) (2,725,888) (6,440,418) (5,176,404)
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Other items
Interest and
other income 59,494 54,531 144,650 110,637
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59,494 54,531 144,650 110,637
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Net loss (3,421,216) (2,671,357) (6,295,768) (5,065,767)
Deficit, beginning
of period (61,386,396) (50,153,862) (58,511,844) (47,759,452)
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Deficit, end
of period (64,807,612) (52,825,219) (64,807,612) (52,825,219)
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Loss per share
- basic and diluted (0.03) (0.03) (0.05) (0.05)
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Weighted average
number of shares
outstanding - basic
and diluted 124,835,532 107,143,223 124,835,532 107,143,223
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VRB Power Systems Inc.
Consolidated balance sheets
as at June 30, 2007 and December 31, 2006
Unaudited
June 30, December 31,
2007 2006
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$ $
Assets
Current assets
Cash and cash equivalents 4,008,977 6,884,870
Short-term investments - 2,501,562
Accounts receivable 57,263 138,864
Deposits and other receivables 243,407 249,041
Inventory 1,151,298 677,451
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5,460,945 10,451,788
Raw material inventory 785,844 788,532
Plant and equipment 2,112,048 1,693,916
Intangible assets 5,669,958 6,684,446
Restricted cash 193,147 325,231
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14,221,942 19,943,913
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 956,419 900,479
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Shareholders' equity
Share capital (Note 6(a)) 74,400,898 74,400,898
Contributed surplus (Note 6 (d)) 3,672,237 3,154,380
Deficit (64,807,612) (58,511,844)
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13,265,523 19,043,434
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14,221,942 19,943,913
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Approved on behalf of the Board
Signed - Vincent Sorace Signed - Timothy Hennessy
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Vincent Sorace, Director Timothy Hennessy, Director
VRB Power Systems Inc.
Consolidated statements of cash flows
six months ended June 30, 2007 and 2006
Unaudited
Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
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$ $ $ $
Operating activities
Net loss (3,421,216) (2,671,357) (6,295,768) (5,065,767)
Items not affecting
cash
Amortization 661,842 587,139 1,283,894 1,158,786
Stock-based
compensation 301,049 114,370 517,857 477,514
Change in non-cash
working capital
Decrease in
accounts receivable 24,313 - 81,601 -
(Increase)/decrease
in deposits and
other receivables (46,973) (90,055) 5,634 (117,478)
Increase in
inventory (301,804) (215,632) (471,159) (436,918)
Increase in
accounts payable 139,973 617,887 55,940 695,560
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(2,642,816) (1,657,648) (4,822,001) (3,288,303)
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Investing activities
Decrease in
short-term
investments 2,553,488 - 2,501,562 -
Purchase of plant
and equipment (546,332) (587,331) (687,538) (953,615)
Decrease in
restricted cash 61,236 58,320 132,084 98,691
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2,068,392 (529,011) 1,946,108 (854,924)
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Net cash outflow (574,424) (2,186,659) (2,875,893) (4,143,227)
Cash and cash
equivalents,
beginning of period 4,583,401 5,985,661 6,884,870 7,942,229
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Cash and cash
equivalents,
end of period 4,008,977 3,799,002 4,008,977 3,799,002
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Cash and cash
equivalents consist of:
Cash 406,702 53,002 406,702 53,002
Short-term money
market investments 3,602,275 3,746,000 3,602,275 3,746,000
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4,008,977 3,799,002 4,008,977 3,799,002
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