Balqon Corporation Announces Record Revenue Growth in 2009

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, announced its financial results for the year ended December 31, 2009 on March 31, 2010. Revenues for 2009 were $3,598,752, an increase of $3,395,092, or 1,667%, over revenues of $203,660 for 2008. The increase in net revenues in 2009 is a direct result of the ramp up of our business in 2009 during which sales of our vehicles and parts increased by $3,148,798 over 2008. Balqon Corporation also reported a net loss of $3,015,405 for 2009, as compared to a net loss of $7,933,281 for 2008, a 62% decrease in the net loss. The $4,917,876 reduction in net loss during 2009 is primarily due to $5,940,713 of stock-based compensation expense incurred in 2008 as compared to no stock-based compensation expense in 2009.

“We believe that the growth in our revenues in 2009 validates our ability to commercialize our core drive system technologies and meet the growing needs of the zero emission vehicle markets we serve”

Between February 2, 2010 and April 12, 2010, Balqon raised $1,500,000 through the sale of its convertible notes and warrants to accredited investors in a private placement transaction. The proceeds of $1,500,000 are allocated to general working capital.

ā€œWe believe that the growth in our revenues in 2009 validates our ability to commercialize our core drive system technologies and meet the growing needs of the zero emission vehicle markets we serve,ā€??? said Balwinder Samra, Chief Executive Officer of Balqon Corporation. ā€œThe successful implementation of higher range lithium-ion batteries into our heavy duty vehicles and development of proprietary battery management system are examples of our ability to develop and implement new technologies while generating record revenue growth,ā€??? 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 motor technology to design propulsion systems for 10 to 50 ton capacity vehicles and material handling equipment. Balqon Corporationā€™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 Corporationā€™s common stock trades on the OTC Bulletin Board under the symbol ā€œBLQN.ā€???

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 Corporationā€™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 Corporationā€™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 Corporationā€™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 Corporationā€™s filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the ā€œRisk Factorsā€??? section of Balqon Corporationā€™s Annual Report on Form 10-K for the year ended December 31, 2009 filed with the Securities and Exchange Commission on March 31, 2010.

BALQON CORPORATION
BALANCE SHEETS
Ā
	Ā	December 31, 2009			Ā	December 31, 2008
ASSETS
Current assets
Cash and cash equivalents		$	118,635			$	355,615
Accounts receivable			167,925				ā€”
Inventories			1,002,748				1,159,601
Prepaid expenses		Ā	53,382	Ā		Ā	43,020	Ā
Total current assets			1,342,690				1,558,236
								Ā
Property and equipment, net			122,251				89,393
Other assets:
Deposits			14,400				33,641
Trade secrets, net			109,063				171,385
Goodwill		Ā	166,500	Ā		Ā	166,500	Ā
								Ā
Total assets		$	1,754,904	Ā		$	2,019,155	Ā
								Ā
LIABILITIES AND SHAREHOLDERSā€™ EQUITY (DEFICIENCY)
Current liabilities
Accounts payable and accrued expenses		$	1,587,388			$	1,225,807
Customer deposit			1,159,601				ā€”
Loan payable, Bridge Bank			128,150				ā€”
Other current liabilities		Ā	30,667	Ā		Ā	138,356	Ā
Total current liabilities		Ā	2,905,807	Ā		Ā	1,364,163	Ā
								Ā
Convertible notes payable, net of discount		Ā	209,510	Ā		Ā	ā€”	Ā
								Ā
Total liabilities		Ā	3,115,317	Ā		Ā	1,364,163	Ā
								Ā
SHAREHOLDERSā€™ EQUITY (DEFICIENCY)
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		Ā	(11,036,260	)		Ā	(8,020,855	)
Total shareholdersā€™ equity (deficiency)		Ā	(1,360,413	)		Ā	654,992	Ā
								Ā
Total liabilities and shareholdersā€™ equity (deficiency)		$	1,754,904	Ā		$	2,019,155	Ā
								Ā

BALQON CORPORATION
STATEMENTS OF OPERATIONS
	Ā
		Years Ended December 31,
		2009			Ā	2008
						Ā
REVENUES		$	3,598,752	Ā		$	203,660	Ā
COSTS OF REVENUES
Contract costs			359,350				69,078
Costs of vehicles and parts		Ā	3,129,447	Ā		Ā	68,975	Ā
Total cost of revenues		Ā	3,488,797	Ā		Ā	138,053	Ā
Gross profit		Ā	109,955	Ā		Ā	65,607	Ā
OPERATING EXPENSES
General and administrative			2,525,225				6,897,041
Research and development			167,195				44,023
Reverse merger expenses			ā€”				414,384
Depreciation and amortization		Ā	100,104	Ā		Ā	29,836	Ā
Total operating expenses		Ā	2,792,524	Ā		Ā	7,385,284	Ā
Loss from operations			(2,682,569	)			(7,319,677	)
Interest expense		Ā	(332,836	)		Ā	(613,604	)
NET LOSS		$	(3,015,405	)		$	(7,933,281	)
Net loss per share ā€“ basic and diluted		$	(0.12	)		$	(0.39	)
Weighted average shares outstanding, basic and diluted		Ā	25,518,348	Ā		Ā	20,206,507	Ā