RICHMOND, BC, Aug. 22 /PRNewswire-FirstCall/ -- VRB Power Systems Inc. (TSX-V: VRB) today reported its financial results for the six month period ended June 30, 2008. The following is a summary of the key points for the period, updated to August 22, 2008:
Financial Highlights (Note - all dollars Canadian): - Sales revenue and other income was $299,393 for the period compared to $201,913 for the same period in 2007; - Operating expenses were $8,001,277 for the period, compared to $6,497,681 for the same period in 2007; - Net loss of $7,701,884 ($0.05 per share) for the quarter compared to a net loss of $6,295,768 ($0.05 per share) for the same period in 2007. Sales Highlights - VRB Power Systems Inc. announced the sale of two additional 5kW x 4hr VRB Energy Storage Systems (VRB-ESS(TM)) to customers in Europe and the Middle East. Summary of Q2 2008 Announcements - Progress Energy and University of South Florida's Power Center for Utility Explorations unveil two 5kW x 4hr VRB Energy Storage Systems as part of SEEDS project; this received good TV coverage. - Ben Gurion University of Negev in Israel purchased a 5kW x 4 hour VRB-ESS to assess the benefits associated with solar energy integration at the University's Blaustein Institute for Solar Energy; - A large, multinational engineering organization in Germany purchased a 5kW x 4 hour VRB-ESS to evaluate the system and determine which in- house application it can best be used (e.g. off-grid solutions, power quality); - VRB Power completed the commissioning of multiple 5kW x 4 hour VRB-ESS's, including two systems for Winafrique Technologies Ltd., of Kenya and one for Edison SpA of Italy; - Mr. Kieran O'Brien (ex MD of ESB) joined VRB as a consultant to assist in developing the Irish market.
Summary consolidated financial statements of the Company for the period ended June 30, 2008 are set out below. The full consolidated financial statements and MD&A have been filed on SEDAR (http://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 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. Vince Sorace President See accompanying notes to the consolidated financial statements. VRB Power Systems Inc. Consolidated statements of operations and deficit six months ended June 30, 2008 and 2007 Unaudited Three months ended June 30 Six months ended June 30 2008 2007 2008 2007 ------------------------------------------------------------------------- $ $ $ $ Revenue Sales 90,211 57,263 150,462 57,263 ------------------------------------------------------------------------- Expenses General and administrative 2,411,136 2,200,572 4,875,659 3,952,625 Research and development 808,072 675,559 1,735,499 1,261,162 Amortization of intangible assets 507,245 507,243 1,014,492 1,014,488 Amortization of plant and equipment 193,163 154,599 375,627 269,406 ------------------------------------------------------------------------- 3,919,616 3,537,973 8,001,277 6,497,681 ------------------------------------------------------------------------- Operating loss (3,829,405) (3,480,710) (7,850,815) (6,440,418) ------------------------------------------------------------------------- Other items Interest and other income 54,983 59,494 148,931 144,650 ------------------------------------------------------------------------- Net loss and comprehensive loss (3,774,422) (3,421,216) (7,701,884) (6,295,768) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per share - basic and diluted (0.03) (0.03) (0.05) (0.05) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding - basic and diluted 163,582,785 124,835,532 163,269,873 124,835,532 ------------------------------------------------------------------------- ------------------------------------------------------------------------- VRB Power Systems Inc. Consolidated statements of shareholders' equity six months ended June 30, 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 December 31, 2007 162,885,532 87,533,386 4,449,293 Net loss for the period - - - Stock-based compensation - - 574,830 Exercise of stock options 800,000 116,441 (36,440) ------------------------------------------------------------------------- Balance at June 30, 2008 163,685,532 87,649,827 4,987,683 ------------------------------------------------------------------------- ------------------------------------------------------------------------- VRB Power Systems Inc. Consolidated statements of shareholders' equity six months ended June 30, 2008 and year ended December 31,2007 Unaudited 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 December 31, 2007 (72,793,036) 19,189,643 Net loss for the period (7,701,884) (7,701,884) Stock-based compensation - 574,830 Exercise of stock options - 80,001 ------------------------------------------------------------ Balance at June 30, 2008 (80,494,920) 12,142,590 ------------------------------------------------------------ ------------------------------------------------------------ VRB Power Systems Inc. Consolidated balance sheets as at June 30, 2008 and December 31, 2007 Unaudited June 30, December 31, 2008 2007 ------------------------------------------------------------------------- $ $ Assets Current assets Cash and cash equivalents 3,865,298 1,544,426 Short-term investments 46,336 9,131,252 Accounts receivable 150,129 163,452 Deposits and other receivables 127,859 328,415 Inventory 1,770,274 1,542,740 ------------------------------------------------------------------------- 5,959,896 12,710,285 Raw material inventory 730,599 768,292 Plant and equipment 2,403,170 2,427,078 Intangible assets 3,640,974 4,655,466 Restricted cash 28,984 102,502 ------------------------------------------------------------------------- 12,763,623 20,663,623 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 621,033 1,473,980 ------------------------------------------------------------------------- Shareholders' equity Share capital 87,649,827 87,533,386 Contributed surplus 4,987,683 4,449,293 Deficit (80,494,920) (72,793,036) ------------------------------------------------------------------------- 12,142,590 19,189,643 ------------------------------------------------------------------------- 12,763,623 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 six months ended June 30, 2008 and 2007 Unaudited Three months ended June 30 Six months ended June 30 2008 2007 2008 2007 ------------------------------------------------------------------------- $ $ $ $ Operating activities Net loss (3,774,422) (3,421,216) (7,701,884) (6,295,768) Items not affecting cash Amortization 700,408 661,842 1,390,119 1,283,894 Stock-based compensation 193,081 301,049 574,830 517,857 Change in non-cash working capital (Increase)/decrease in accounts receivable (1,127) 24,313 13,324 81,601 (Increase)/decrease in deposits and other receivables (8,363) (46,973) 200,556 5,634 Increase in inventory (127,616) (301,804) (189,841) (471,159) (Increase)/decrease in accounts payable 45,022 139,973 (852,947) 55,940 ------------------------------------------------------------------------- (2,973,017) (2,642,816) (6,565,843) (4,822,001) ------------------------------------------------------------------------- Investing activities Decrease in short-term investments 5,409,609 2,553,488 9,084,916 2,501,562 Purchase of plant and equipment (226,028) (546,332) (351,719) (687,538) Decrease in restricted cash 26,938 61,236 73,518 132,084 ------------------------------------------------------------------------- 5,210,519 2,068,392 8,806,715 1,946,108 ------------------------------------------------------------------------- Financing activity Issuance of common shares 55,000 - 80,000 - ------------------------------------------------------------------------- Net cash outflow 2,292,502 (574,424) 2,320,872 (2,875,893) Cash and cash equivalents, beginning of period 1,572,796 4,583,401 1,544,426 6,884,870 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 3,865,298 4,008,977 3,865,298 4,008,977 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash and cash equivalents consist of: Cash 595,841 406,702 595,841 406,702 Short-term money market investments 3,269,457 3,602,275 3,269,457 3,602,275 ------------------------------------------------------------------------- 3,865,298 4,008,977 3,865,298 4,008,977 ------------------------------------------------------------------------- -------------------------------------------------------------------------
