ZAPWORLD.COM Reports 1999 Results
18 April 2000
ZAPWORLD.COM Reports 1999 Results
SEBASTOPOL, Calif.--April 17, 2000--ZAPWORLD.COM (OTCBB:ZAPP) today reported its financial results for the year ended December 31, 1999."The strong progress ZAPWORLD.COM (ZAP) has made towards electric vehicle commercialization in 1999 reflects the success in achieving our corporate goals," said Gary Starr, ZAP's Chief Executive Officer. "We have broadened our product line, increased our equity, and our revenue growth demonstrates ZAP's leadership position in the electric vehicle(EV) field."
"We continue to push ahead with an aggressive research and product development program," says Starr. "Our emphasis on developing, protecting and acquiring proprietary technology related to EVs enhances our long-term competitive advantage. The success in developing our low cost manufacturing capabilities will allow us to meet the needs of our customers as we bring EV products to market."
"In 1999 we invested over $300,000 in establishing our patented technology and in legal work related to our proprietary products and in acquiring our financial and technology partners. ZAP is now the holder of five patents and is developing one of the strongest brand names in the EV industry. ZAP is now the registered owner the trademarks ZAP(R), Electricruizer(R), PowerBike(R), PowerSki(R), and Zero Air Pollution(R)."
"In 1999 ZAP signed exclusive marketing agreements with Smith & Wesson, ZEV Technologies, Lucas Licensing, and Evercel Battery. These strategic relationships benefit ZAP in areas ranging from manufacturing to marketing and provide access to new markets."
"During the last year, ZAP committed considerable resources to assist in the creation of new legislation that would allow the owners of our newly developed products to be legally ridden on roadways. Our efforts, although costly, were not without positive effect. The Company was instrumental in creating new laws and ordinances in several cities and counties, and affective January 1, 2000, for the first time a new law went into effect in the State of California defining and legalizing scooters such as the ZAPPY."
"1999 was an outstanding positioning year for ZAP," said ZAP's Board Chairman, and President of the Ridgewood Fund, Bob Swanson. "The management team achieved several milestones that helped place ZAP in a leadership position in the emerging EV industry."
During the fourth quarter of 1999, ZAP completed the acquisition of American Rentals and Scooters and emPower Corporation. These acquisitions opened new markets to ZAP and provided ZAP with additional proprietary technology and capital. In 1999, ZAP also agreed to acquire Electric Vehicle Systems, and ZAP of Santa Cruz. These acquisitions have now been completed.
ZAP's revenues for 1999 were $6.4 million, compared with $3.5 million in 1998, an increase of 83%, again reflecting increased revenues from ZAP's product mix and new revenues from ZAP's subsidiaries. Sales generated from the Internet increased 354% in 1999 growing from $57,000 in 1998 to $259,000 in 1999. The loss, $1.7 million, or $0.43 per share in 1999, compared with $1.1 million or $0.42 per share in 1998. The loss was a result of planned growth acceleration in product development, legislative efforts, good will and warrant write downs associated with acquisitions, financing costs, and Company expenditures for market positioning in the EV industry.
As of December 31, 1999, ZAP's cash position was the strongest reported at a fiscal year's end position, with cash totaling $3.2 million and shareholders equity totaling $6.6 million, compared to December 31, 1998 cash position of $475,000 and shareholder's equity of $386,000.
Cash increased primarily due to the investments made by Preferred Capital and the Ridgewood Fund. Institutional holdings in ZAP at year-end represented approximately 27% of the company, including funds such as Welch & Forbes, Robes & Gray and Sustainable Jobs Fund.
In March of 2000, investment banking firm Donner Corp. International wrote an analyst report on ZAP and in April of 2000 Donner signed a best efforts Private Placement Agency Agreement to raise up to $7.5 million in equity financing for the Company.
As of March 31, 2000, ZAP had acquired $199,000 in new capital through the exercise of options and warrants.
ZAP's annual meeting date has been set for June 24, 2000.
ZAPWORLD.COM and Subsidiaries
Consolidated Balance Sheet
December 31, 1999
Year ended
December 31, 1999
ASSETS
Cash and cash equivalents $ 3,183,900
Total assets $ 7,726,600
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 1,134,400
Total liabilities and
stockholders' equity $ 7,726,600
ZAPWORLD.COM and Subsidiaries
Consolidated Statements of Operations
For the years ended December 31, 1999 and 1998
Year Ended December 31,
1999 1998
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Net sales $ 6,437,200 $ 3,518,600
Net loss $(1,692,600) $(1,109,400)
Net loss per common share
basic and diluted $ (0.43) $ (0.42)
Weighted average of common
shares outstanding 3,927,633 2,614,563
ZAP's Common shares are listed on The Over the Counter Market under the trading symbol "ZAPP." For more information on ZAP, its EV outlet stores, or for ordering an EV, go to www.zapworld.com.
This release contains forward-looking statements reflecting ZAPWORLD.COM's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Law of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, product development delays, changing environmental regulations, the ability to attract and retain business partners, future levels of government incentives, competition from other electric vehicle manufacturers, competition from other advanced energy transportation technologies, competition from existing energy technologies, evolving markets for electric transportation vehicles, and the ability to provide the capital required for product development and distribution.