VANCOUVER, May 30 /PRNewswire-FirstCall/ -- VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the three month period ended March 31, 2007.
The following is a summary of the key points for the period, updated to
May 28, 2007
(Note - all dollars Canadian)
- Sales revenue and other income was $85,156 for the quarter compared
to $91,107 for the comparative period in 2006;
- Operating expenses were $2,959,708 for the quarter compared to
$2,485,517 for the comparative period in 2006;
- Net loss of $2,874,552 for the quarter ($0.02 per share) compared to
$2,394,410 ($0.02 per share) for the comparative period in 2006;
- The independent study commissioned by Sustainable Energy Ireland and
Tapbury Management Limited ("Tapbury") on the benefits of coupling a
VRB-ESS(TM) to Sorne Hill Windfarm ("Sorne") was released in March.
This report validates the key value streams of the VRB-ESS and
resulted in the size of the system for Sorne being increase to 2MW
(3MW pulse) x 6hr with a contract value of approximately
(euro) 7.4million (US$10.1 million);
- Sale of a 5kW x 4hr VRB-ESS(TM) to Edison SPA for use in
telecommunications back-up applications in Italy;
- Subsequent to the end of the period, funding of Aus $1.83 million was
made available by the Australian government to our distributor,
Cougar Energy Limited (formerly Pinnacle VRB Limited) to provide
incentives towards the purchase of up to 90 VRB-ESS(TM) units in
remote solar and wind applications across Australia over the next
three years;
- Subsequent to the end of the period, 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;
- Systems previously deployed continue to perform to expectations with
good feedback from customers; and
- Designs for the commercial 5kW x multi hour VRB-ESS(TM) have been
finalized and will be unveiled at NxtComm 2007 in Chicago June 18-21,
2007.
"The Company continues to build strong momentum," said Tim Hennessy, VRB Power Chairman & CEO. "I am very pleased with the work that has been done by our engineering and manufacturing teams in moving our 5kW systems from pre-production to commercial status."
"We have showcased our commercial 5kW x multi hour systems at a number of recent industry shows with significant interest being generated; this system will be formally unveiled at NxtComm 2007, the large telecommunications show, in mid June. In addition, our ability to provide telecommunications providers with a product which not only provides reliable, long life back-up power, but also the opportunity at the same time to cut their electricity bills in their "on grid" sites or their diesel consumption in their "off grid" sites, makes us unique and is generating a number of opportunities for us."
"On the renewable side, things continue to move forward in Ireland with the release of the SEI/Tapbury study providing strong economic validation for coupling our technology with wind farms in Ireland. As well the Aus $1.83 million for up to 90 systems across Australia provides good impetus for our solar initiatives," concluded Hennessy.
The consolidated financial statements of the Company for the period ended March 31, 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 will be filed on SEDAR (http://www.sedar.com/) shortly.
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 http://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.
Simon Clarke,
Executive Vice President, Corporate Development
VRB Power Systems Inc.
Consolidated statements of operations and deficit
three months ended March 31, 2007 and 2006
Unaudited
Three months Three months
ended ended
March 31, 2007 March 31, 2006
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$ $
Revenue
Sales - 35,000
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Expenses
General and administrative 1,752,053 1,506,308
Research and development 585,603 407,562
Amortization of intangible assets 507,245 506,685
Amortization of plant and equipment 114,807 64,962
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2,959,708 2,485,517
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Operating loss (2,959,708) (2,450,517)
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Other items
Interest and other income 85,156 56,107
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85,156 56,107
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Net loss and comprehensive loss (2,874,552) (2,394,410)
Deficit, beginning of period (58,511,844) (47,759,452)
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Deficit, end of period (61,386,396) (50,153,862)
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Loss per share - basic and diluted (0.02) (0.02)
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Weighted average number of shares
outstanding - basic and diluted 124,835,532 107,143,223
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VRB Power Systems Inc.
Consolidated balance sheets
as at March 31, 2007 and December 31, 2006
Unaudited
March 31, December 31,
2007 2006
-------------------------------------------------------------------------
$ $
Assets
Current assets
Cash and cash equivalents 4,583,401 6,884,870
Short-term investments 2,553,488 2,501,562
Accounts receivable 81,576 138,864
Deposits and other receivables 196,434 249,041
Inventory 849,494 677,451
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8,264,393 10,451,788
Raw material inventory 785,844 788,532
Plant and equipment 1,720,315 1,693,916
Intangible assets 6,177,201 6,684,446
Restricted cash 254,383 325,231
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17,202,136 19,943,913
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 816,446 900,479
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Shareholders' equity
Share capital 74,400,898 74,400,898
Contributed surplus 3,371,188 3,154,380
Deficit (61,386,396) (58,511,844)
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16,385,690 19,043,434
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17,202,136 19,943,913
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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, 2007 and 2006
Unaudited
Three months Three months
ended ended
March 31, 2007 March 31, 2006
-------------------------------------------------------------------------
$ $
Operating activities
Net loss (2,874,552) (2,394,410)
Items not affecting cash
Amortization 622,052 571,647
Stock-based compensation 216,808 363,144
Change in non-cash working capital
Decrease (increase) in accounts
receivable 57,288 (37,450)
Decrease in deposits and other
receivables 52,607 10,027
Increase in inventory (169,355) (221,286)
(Decrease) increase in accounts payable (84,033) 77,673
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(2,179,185) (1,630,655)
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Investing activities
Increase in short-term investments (51,926) -
Purchase of plant and equipment (141,206) (366,284)
Decrease in restricted cash 70,848 40,371
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(122,284) (325,913)
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Net cash outflow (2,301,469) (1,956,568)
Cash and cash equivalents, beginning of
period 6,884,870 7,942,229
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Cash and cash equivalents, end of period 4,583,401 5,985,661
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Cash and cash equivalents consist of:
Cash 452,589 (140,339)
Short-term money market investments 4,130,812 6,126,000
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4,583,401 5,985,661
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