RICHMOND, BC, Nov. 27 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the nine month period ended September 30, 2007.
The following is a summary of the key points for the period, updated to November 21, 2007
(Note - all dollars Canadian)
- Sales revenue and other income was $411,548 for the six months
compared to $226,842 for the comparative period in 2006;
- Operating expenses were $10,178,769 for the period compared to
$7,765,330 for the comparative period in 2006;
- Net loss of $9,767,221 for the period ($0.07 per share) compared to
$7,538,488 ($0.07 per share) for the comparative period in 2006;
- In November 2007, VRB announced that Winafrique Technologies Ltd.,
with Safaricom Limited, the leading mobile telephone operator in
Kenya purchased two 5kW x 4hr VRB Energy Storage Systems ("VRB-ESS")
to be deployed at two remote telecommunications sites in Kenya owned
by Telkom Kenya and Vodafone Group Plc. The sale marks the initial
phase for a potential roll out of multiple systems at cellular
telecommunications sites across East Africa, with 300 possible sites
identified in Kenya alone;
- In conjunction with the sale, VRB Power signed a distribution
agreement with Winafrique for the 5kW VRB-ESS in Kenya. Under the
terms of the agreement, Winafrique will sell, install and integrate
the systems at the chosen cellular sites; monitor and service the
systems once installed and also provide some of the electrical
components.
- In addition to its internal sales team, the Company now has sales
representatives in North America, India, Europe (covering territories
of Denmark, Slovenia, Hungary, Italy, Albania, Malta, Czech Republic
and Portugal) and Kenya;
- In November 2007, the Company partnered with Sartelco Energia Srl to
showcase the 5kW VRB-ESS(TM) at the World Energy Congress 2007 (WEC)
in Rome, Italy. The WEC is held every three years and is recognised
as the world's premier multi-energy event with over 5,000 delegates
from 100 countries;
- In October 2007, the Company consolidated its offices and moved its
headquarters from downtown Vancouver to the second floor of the VRB
Richmond Facility; and
- Within the last period, VRB Power Systems was featured in several
media publications including Renewable Energy World (Sept/Oct issue),
The New York Times (July 2007), Environmental Health Perspectives
(July 2007), Cooperative Research Network (July 2007) and The
Financial Times (June 2007).
The consolidated financial statements of the Company for the period ended September 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 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
nine months ended September 30, 2007 and 2006
Unaudited
Three months ended Sept. 30 Nine months ended Sept. 30
2007 2006 2007 2006
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$ $ $ $
Revenue
Sales 71,579 16,800 128,842 89,085
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Expenses
General and
administrative 2,131,764 1,190,578 6,084,390 4,170,690
Research and
development 885,128 723,775 2,146,290 1,833,567
Amortization of
intangible assets 507,246 507,245 1,521,734 1,520,613
Amortization of
plant and
equipment 156,949 95,042 426,355 240,460
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3,681,087 2,516,640 10,178,769 7,765,330
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Operating loss (3,609,508) (2,499,840) (10,049,927) (7,676,245)
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Other items
Interest and
other income 138,055 27,119 282,706 137,757
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138,055 27,119 282,706 137,757
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Net loss (3,471,453) (2,472,721) (9,767,221) (7,538,488)
Deficit, beginning
of period (64,807,612) (52,825,219) (58,511,844) (47,759,452)
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Deficit, end of
period (68,279,065) (55,297,940) (68,279,065) (55,297,940)
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Loss per share -
basic and diluted (0.02) (0.02) (0.07) (0.07)
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Weighted average
number of shares
outstanding -
basic and
diluted 146,698,032 107,335,531 132,203,114 107,208,030
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VRB Power Systems Inc.
Consolidated balance sheets
as at September 30, 2007 and December 31, 2006
Unaudited
September 30, December 31,
2007 2006
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$ $
Assets
Current assets
Cash and cash equivalents 2,934,083 6,884,870
Short-term investments 11,519,948 2,501,562
Accounts receivable 137,876 138,864
Deposits and other receivables 297,210 249,041
Inventory 1,142,180 677,451
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16,031,297 10,451,788
Raw material inventory 778,848 788,532
Plant and equipment 2,319,514 1,693,916
Intangible assets 5,162,712 6,684,446
Restricted cash - 325,231
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24,292,371 19,943,913
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 993,556 900,479
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Shareholders' equity
Share capital 87,523,386 74,400,898
Contributed surplus 4,054,494 3,154,380
Deficit (68,279,065) (58,511,844)
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23,298,815 19,043,434
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24,292,371 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
nine months ended September 30, 2007 and 2006
Unaudited
Three months ended Sept. 30 Nine months ended Sept. 30
2007 2006 2007 2006
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$ $ $ $
Operating activities
Net loss (3,471,453) (2,472,721) (9,767,221) (7,538,488)
Items not affecting
cash
Amortization 664,195 602,287 1,948,089 1,761,073
Stock-based
compensation 185,010 11,349 702,867 488,863
Change in non-cash
working capital
(Increase)/decrease
in accounts
receivable (80,613) - 988 -
(Increase)/decrease
in deposits and
other
receivables (53,803) 3,358 (48,169) (114,120)
(Increase)/decrease
in inventory 16,114 (73,445) (455,045) (510,363)
Increase/(decrease)
in payable
accounts 37,137 (609,579) 93,077 85,981
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(2,703,413) (2,538,751) (7,525,414) (5,827,054)
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Financing activities
Issuance of common
shares, net of
issue costs 13,319,735 10,581,653 13,319,735 10,581,653
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Investing activities
Increase in
short-term
investments (11,519,948) - (9,018,386) -
Purchase of plant
and equipment (364,415) (247,246) (1,051,953) (1,200,861)
Acquisition of
technology
licence - (11,200) - (11,200)
Decrease in
restricted cash 193,147 48,241 325,231 146,932
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(11,691,216) (210,205) (9,745,108) (1,065,129)
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Net cash inflow/
(outflow) (1,074,894) 7,832,697 (3,950,787) 3,689,470
Cash and cash
equivalents,
beginning of
period 4,008,977 3,799,002 6,884,870 7,942,229
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Cash and cash
equivalents,
end of period 2,934,083 11,631,699 2,934,083 11,631,699
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Cash and cash
equivalents
consist of:
Cash 395,397 537,814 395,397 537,814
Short-term money
market
investments 2,538,686 11,093,885 2,538,686 11,093,885
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2,934,083 11,631,699 2,934,083 11,631,699
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