Balqon Corporation Announces Record 2009 Third Quarter Revenues
HARBOR CITY, Calif.--Balqon Corporation (OTCBB:BLQN), an emerging developer and manufacturer of zero emissions heavy-duty electric vehicles for Class 7 and Class 8 applications, today announced its financial results for the three and nine months ended September 30, 2009. Revenues for the three months ended September 30, 2009 were $780,158, a 7,132% increase over revenues of $10,787 for the three months ended September 30, 2008. In addition, gross margin increased to 16% during the three months ended September 30, 2009 as compared to a gross margin of 4% during three months ended June 30, 2009. Revenues for the nine month period ended September 30, 2009 were $3,055,958, an increase of 1,332% over revenue of $213,362 for the same period in 2008. Balqon reported a net loss of $616,699 for the quarter ended September 30, 2009 as compared to a net loss of $1,533,187 for the same period in 2008 and reported a net loss of $1,977,271 for the nine months ended September 30, 2009 as compared to a net loss of $6,850,568 for the same period in 2008. The improvement in net loss in the three and nine months ended September 30, 2009 is primarily due to increases in revenues and gross profit over the same period in 2008. Balqon also incurred $5,185,399 of stock-based compensation expense in the nine months ended September 30, 2008 as compared to no stock-based compensation expense in the same period of 2009.
“We believe that our three consecutive quarters of growth in revenues validates our ability to commercialize our core technologies and meet the growing needs of the markets we serve,” said Balwinder Samra, Chief Executive Officer of Balqon Corporation. “Our record revenues and implementation of higher range lithium-ion batteries in our complete product line are examples of our ability to ramp up production while at the same time implementing new technologies,” said Mr. Samra.
About Balqon Corporation
Balqon Corporation is a leading developer of heavy duty electric trucks, tractors and electric drive systems. The Company uses its proprietary flux vector control technology to design propulsion systems for 10 to 50 ton capacity vehicles and material handling equipment. Balqon Corporation’s current product line of tow tractors are designed to transport containers at ports, marine terminals, rail yards, warehouses, intermodal facilities, military bases and mail facilities. For information about Balqon Corporation and its product offerings, visit www.balqon.com. Balqon Corporation’s common stock is eligible for trading on the OTC Bulletin Board under the symbol “BLQN.”
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including, without limitation, Balqon Corporation’s ability to commercialize its core technologies and meet the growing needs of heavy-duty electric vehicle markets and its ability to ramp up production while at the same time implementing new technologies are forward-looking statements that involve a number of risks and uncertainties. The actual future results of Balqon Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; Balqon Corporation’s ability to attract sufficient capital; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; the projected future demand for Balqon Corporation’s products; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation’s filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the “Risk Factors” section of Balqon Corporation’s Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on May 22, 2009 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 as filed with the Securities and Exchange Commission on November 16, 2009.
| BALQON CORPORATION | ||||||||
| CONDENSED BALANCE SHEETS | ||||||||
|
September 30, |
December 31, |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 176,306 | $ | 355,615 | ||||
| Accounts receivable | 797,546 | — | ||||||
| Inventories | 1,047,688 | 1,159,601 | ||||||
| Prepaid expenses | 43,512 | 43,020 | ||||||
| Total current assets | 2,065,052 | 1,558,236 | ||||||
| Property and equipment, net | 84,557 | 89,393 | ||||||
| Other assets: | ||||||||
| Deposits | 18,273 | 33,641 | ||||||
|
Trade secrets, net of $62,320 and $15,580 of accumulated amortization, respectively |
124,645 | 171,385 | ||||||
| Goodwill | 166,500 | 166,500 | ||||||
| Total assets | $ | 2,459,027 | $ | 2,019,155 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 1,208,448 | $ | 1,225,807 | ||||
| Customer deposit | 1,159,601 | — | ||||||
| Loan payable, Bridge Bank | 256,300 | — | ||||||
| Notes payable to related parties | 25,000 | 100,875 | ||||||
| Advances from shareholder | 7,795 | 34,877 | ||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
3,255 | 2,604 | ||||||
| Total current liabilities | 2,660,399 | 1,364,163 | ||||||
|
Convertible notes payable, net of $879,093 discount |
120,907 | — | ||||||
| Total liabilities | 2,781,306 | 1,364,163 | ||||||
| SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||
|
Common stock, $0.001 par value, 100,000,000 shares authorized, 25,518,348 shares issued and outstanding |
25,518 | 25,518 | ||||||
| Additional paid in capital | 9,650,329 | 8,650,329 | ||||||
| Accumulated deficit | (9,998,126 | ) | (8,020,855 | ) | ||||
| Total shareholders’ equity (deficit) | (322,279 | ) | 654,992 | |||||
| Total liabilities and shareholders’ equity (deficit) | $ | 2,459,027 | $ | 2,019,155 | ||||
| BALQON CORPORATION | ||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
| FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (Unaudited) | ||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| REVENUES | $ | 780,158 | $ | 10,787 | $ | 3,055,958 | $ | 213,362 | ||||||||
| COST OF REVENUES | 656,088 | 17,361 | 2,849,777 | 170,292 | ||||||||||||
| GROSS PROFIT (LOSS) | 124,070 | (6,574 | ) | 206,181 | 43,070 | |||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| General and administrative | 557,166 | 940,703 | 1,782,451 | 6,304,051 | ||||||||||||
| Reverse merger expenses | — | 429,300 | — | 429,300 | ||||||||||||
| Research and development | 34,615 | — | 132,579 | — | ||||||||||||
| Depreciation and amortization | 23,638 | 2,693 | 70,514 | 6,370 | ||||||||||||
| Total operating expenses | 615,419 | 1,372,696 | 1,985,544 | 6,739,721 | ||||||||||||
| Loss from operations | (491,349 | ) | (1,379,270 | ) | (1,779,363 | ) | (6,696,651 | ) | ||||||||
| Interest expense | (125,350 | ) | (153,917 | ) | (197,908 | ) | (153,917 | ) | ||||||||
| NET LOSS | $ | (616,699 | ) | $ | (1,533,187 | ) | $ | (1,977,271 | ) | $ | (6,850,568 | ) | ||||
|
Net loss per share-basic and diluted |
$ | (0.02 | ) | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.37 | ) | ||||
|
Weighted average shares outstanding, basic and diluted |
25,518,348 | 21,263,232 | 25,518,348 | 18,699,087 | ||||||||||||