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+1.323.231.0411
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London, UK
+44 207 743 6675
Solar Integrated News
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SOLAR INTEGRATED REPORTS 2007 AUDITED FINANCIAL RESULTS
AND PROVIDES 2008 GUIDANCE
- Revenues more than double in 2007 and transition to adjusted EBITDA positive –
- Expecting continued strong growth in 2008 and transition to profitability –
London, UK and Los Angeles, California, March 31, 2008 – Solar Integrated Technologies, Inc. (AIM:SIT.LN), a leading provider of building integrated photovoltaic (BIPV) roofing systems, today announces its audited financial results for the twelve months ended December 31, 2007, highlights of recent corporate activities, and financial guidance for 2008. Unless otherwise noted, all amounts are reported in U.S. dollars. This press release contains both U.S. GAAP (“GAAP”) and non-GAAP financial information, including non-GAAP adjusted EBITDA financial information.
2007 Full Year Financial Highlights
- Revenue of $81.1 million, up 112% from $38.2 million in 2006
- Gross margin of 17.8%, up 144% from 7.3% in 2006
- Gross margin of $14.4 million, up $11.6 million or 414% from $2.8 million in 2006
- Excluding non-cash stock-based warrant and option compensation and depreciation, SG&A costs down $0.7 million or 4.1% to $16.3 million (2006: $17.0 million) and down to 20.1% of revenue as compared to 44.5% of revenue in 2006
- Adjusted EBITDA (which adjusts earnings before interest, tax, depreciation, amortization by also excluding the effects of stock-based warrant and option expense, change in fair value of warrants, recovery of impaired accounts receivable and loss on debt conversion) of $0.1 million, compared to $(15.6) million in 2006
- On a GAAP basis, net loss of $24.7 million or $0.35 per share, which includes $13.9 million for non-cash stock-based warrant and option compensation, $4.8 million for a non-cash loss on the conversion of convertible notes, and $0.9 million for the fair value accounting of certain warrants, partially offset by a $3.3 million recovery of an impaired receivable, when compared with net loss for 2006 of $22.9 million or $0.62 per share
- Closed placement of 16,470,588 common shares for aggregate gross proceeds of $28 million in December 2007
- Repositioned $31.1 million of convertible notes with reduction of $23.1 million of debt through retirement of $16.2 million of notes and conversion of $6.9 million of notes into equity, along with amendment of remaining $8.0 million
- Cash balance of $11.3 million as of December 31, 2007, as compared to $1.8 million as of June 30, 2007 and $7.0 million as of December 31, 2006
2007 Second Half (H2) Financial Highlights
- 2007 H2 revenue of $61.2 million, up $38.5 million or 170% from 2006 H2 revenue of $22.7 million
- 2007 H2 gross margin of 19.4%, up 177% compared to 7.0% in 2006 H2
- 2007 H2 gross margin of $11.9 million, up $10.3 million or 644% from $1.6 million in 2006 H2
- Excluding non-cash stock-based warrant and option compensation and depreciation, 2007 H2 SG&A costs of $8.6 million (up 18% from 2006 H2 cash SG&A costs of $7.3 million) down to 14.1% of revenue as compared to 32.2% of revenue in 2006 H2
- 2007 H2 adjusted EBITDA of $4.8 million, a $12.1 million improvement compared to 2006 H2 adjusted EBITDA of $(7.3) million
2007 Sales and Operations Highlights
- 76 solar projects completed in 2007, representing 9.1 MW of installed solar systems (2006: 40 projects representing 4.2 MW)
- Completed 57 projects in Europe representing 5.5 MW of installed solar systems
- Completed 19 turn-key projects in the U.S. representing 3.6 MW of installed solar systems
- Expanded penetration into key solar markets with a total of more than 180 projects completed representing 19.3 MW of installed solar systems since Company’s inception
- Expanded customer list and signed new business for projects with each of Audi, Carrefour, Metro, Tesco, Unibail-Rodamco, UPC Solar and Westfield
- Signed $70 million contract to supply solar roofing systems on multiple large buildings in Italy in 2008 and 2009
- Expanded product application to two new market opportunities
- Signed initial contracts totaling $10 million including a flexible ground-mount system for installation at the Malagrotta Landfill site outside of Rome, Italy
- Signed initial contracts for solar carports that provide shaded parking for vehicles while generating clear solar energy
- In response to strong order demand, second and third shifts were added to manufacturing operations in May and October, respectively
- Increased production throughput by more than 100% over 2006 production
- Achieved certification by the California Energy Commission for performance monitoring and metering of the Company’s Renewable Energy Management (REM) software system; 46 REM systems now installed, monitoring over 8 MW of installed solar systems
- Won Sika Sarnafil’s “2007 U.S. Sustainability Project of the Year” for Tesco’s Fresh & Easy Markets 663,000 sq. ft. distribution centre in Riverside, California, believed to be the world’s largest BIPV solar roofing project
2007 Corporate Platform Highlights
- Strengthened sales, product development and manufacturing teams with key management appointments:
- Bart Van Ouytsel as Vice President, Sales & Marketing – Europe
- John Snelling as Vice President, Sales & Marketing – Americas
- David Gralnik as Vice President, Strategic Accounts & Alliances
- Arthur Rudin as Vice President, Product Development
- Dr. –Ing Claas Helmke as Director, Product Development – Europe
- Peter Douglas as Director, Manufacturing
- Appointed Ernst & Young as new independent auditor
- In March 2008, granted a U.S. patent for proprietary “no compromise” BIPV roofing product
2008 Outlook
- 2008 revenue guidance in the range of $140 million to $160 million, representing up to 100% growth over 2007 revenue
- 2008 full year consolidated gross margin guidance for core BIPV products in excess of 18% (excludes non-core BIPV products and roofing)
- Revenue and gross margin contribution weighted in 2008 H2
- Revenue guidance of ~$40 million for 2008 H1
- Expect to more than double production throughput in 2008 compared to 2007
- Evaluating option of opening a European manufacturing facility
- Achieve profitability on a full-year consolidated basis, excluding the effect of any non-cash fair value accounting
Commenting on the results, R. Randall MacEwen, President & CEO, said:
“We had an extraordinary turn-around in 2007 and exited the year firing on all cylinders. While successfully managing triple-digit growth, we significantly improved our financial performance through gross margin expansion and disciplined management of our overhead costs and working capital. After transitioning to EBITDA positive in 2007, our line of sight is now on profitability in 2008. With a growing order book of profitable business, we are now positioned as a compelling growth story in the attractive commercial solar roofing market.”
John M. Palumbo, Chief Financial Officer, added: “In addition to improved operational performance, we made important progress in 2007 on strengthening our balance sheet. Our equity capital raise in December facilitated the elimination of $23.1 million of convertible debt, reducing our related annual cash interest costs from $2.6 million to $0.5 million. This will support our goal of profitability in 2008. In addition, our improved financial condition enables us to invest in the business at a time when new attractive solar markets are developing with premium feed-in tariffs for BIPV products.”
The Company will host a conference call today (Monday, March 31, 2008) at 3:00 pm London time/10:00 am ET/7:00 am PT. Investors and analysts can participate in the call by dialing 719-325-4858 with code 2043089.
About Solar Integrated:
Solar Integrated Technologies, Inc. (SIT: AIM.LN) is a Los Angeles-based company that manufactures, designs and installs building integrated photovoltaic (BIPV) roofing systems for non-residential, low-slope rooftops. We are a leader in the development of an innovative and proprietary BIPV roofing system that combines flexible thin-film solar modules with a single-ply roofing membrane for large-scale commercial and industrial applications. Our BIPV roofing system enables our customers to transform a traditional rooftop into a value-generating asset.
Our proprietary ‘no compromise’ approach for solar roofing is fundamental to our vision of BIPV solutions. Unlike typical after-market solar panel providers, we provide an integrated BIPV roofing system that meets the customer’s energy, environmental and roofing requirements. Our lightweight, flexible and durable product typically forms the top layer of the customer’s roof with no additional roofing penetrations, thereby preserving the roof’s structural integrity and aesthetics, while also delivering the full benefits from electricity generation through clean, secure natural sunlight.
Our customers include Audi, Carrefour, Coca-Cola Enterprises, Frito-Lay, Honeywell, IKEA, Metro, ProLogis, San Diego Unified School District, Tesco, Toyota, Unibail-Rodamco, UPC Solar, U.S. Air Force, U.S. GSA, U.S. Navy, Wal-Mart and Westfield. For more information, please visit www.solarintegrated.com .
For more information, please contact:
Solar Integrated Investor Contacts:
Solar Integrated Technologies, Inc R. Randall MacEwen President & Chief Executive Officer Los Angeles, California, USA +1.562.299.0136 |
Solar Integrated Technologies, Inc |
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KBC Peel Hunt Ltd. |
Mirabaud Securities Limited |
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Solar Integrated Media Contacts:
Pelham Public Relations
Chelsea Hayes / Robert Koh
London, UK
+44 207 743 6675
Thinking Integrated. Building Integrated.
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2007 Financial Highlights
Revenue
Revenue for 2007 was $81.1 million, up 112% from $38.2 million for 2006, primarily due to growth in solar markets, new market penetration, new customer penetration, repeat business and larger project sizes. The Company believes that customers are increasingly understanding and accepting the Company’s differentiated solar roofing approach, differentiated product offering, and value proposition for the commercial BIPV market segment. The Company’s market strategy is to be the trusted solar roofing partner for its customers across their full portfolio of large-scale commercial buildings. The Company provides its customers with solar roofing systems that are designed to meet the customer’s financial, energy, roofing and environmental objectives.
Consistent with prior periods, the Company booked a higher level of revenue in 2007 H2 than in 2007 H1. First half revenue has typically been, and will continue to be in 2008, lower than second half revenue in large part as a result of the seasonality of the business and the budget and construction cycles of the Company’s target customers. As the Company is involved in a construction project-based business, the Company may experience revenue and financial performance lumpiness from period to period.
The Company’s revenue trend for 2007 H1, H2 and full year as compared to 2006 H1, H2 and full year is as follows:
Management reviews revenue and gross margin performance of the business in three market segments:
- Europe Solar: The Company manufactures its BIPV roofing panels for projects in Europe where customers typically purchase the systems for installation by others.
- U.S. Solar: The Company manufactures and installs its BIPV roofing systems for projects in the United States where customers typically purchase the systems on a turnkey basis or where the end customer prefers to purchase solar generated electricity under a long term power purchase agreement rather than purchase, own and operate the solar energy system directly.
- Roofing and Maintenance: The Company installs and maintains for select clients energy-efficient roofing systems in Southern California. The Company can install these roofing systems pre-wired for potential future solar retrofit. The Company believes this strategy maintains and strengthens its customer relationships, positions the Company to capture additional business for its BIPV roofing systems, provides additional margin-generating revenue, and provides for smoothing of labor deployment. The Company expects this market segment to decline as a percentage of revenue over time.
In 2007, revenue for the Europe Solar segment was $27.8 million, up 286% from $7.2 million in 2006. In 2007, revenue for the U.S. Solar segment was $37.1 million, up 58% from $23.5 million in 2006. In 2007, revenue for the Roofing and Maintenance segment was $16.2 million, up 116% from $7.5 million in 2006.
The Company’s comparative revenue mix from its three market segments for 2007 and 2006 was as follows:
The Company’s revenue performance for 2007 H1, 2007 H2 and 2007 full year as compared to 2006 H1, 2006 H2 and 2007 full year for these three market segments was as follows:
Revenue by Market Segment (in $ millions) |
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H1 Revenue |
Change |
H2 Revenue |
Change |
FY Revenue |
Change |
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2007 |
2006 |
$ |
% |
2007 |
2006 |
$ |
% |
2007 |
2006 |
$ |
% |
Europe Solar |
$ 6.3 |
$ 2.8 |
$ 3.5 |
125.0% |
$ 21.5 |
$ 4.4 |
$ 17.1 |
388.6% |
$27.8 |
$ 7.2 |
$ 20.6 |
286.1% |
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U.S. Solar |
8.3 |
10.1 |
($1.8) |
-17.8% |
28.8 |
13.4 |
$ 15.4 |
114.9% |
37.1 |
23.5 |
$13.6 |
57.9% |
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Roofing & Maintenance |
5.2 |
2.6 |
$ 2.6 |
100.0% |
11.0 |
4.9 |
$ 6.1 |
124.5% |
16.2 |
7.5 |
$8.7 |
116.0% |
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TOTAL |
$ 19.8 |
$ 15.5 |
$ 4.3 |
27.7% |
$ 61.3 |
$ 22.7 |
$ 38.6 |
170.0% |
$ 81.1 |
$ 38.2 |
$ 42.9 |
112.3% |
The Company expects significant growth in its Europe Solar and US Solar segments in 2008, with Europe Solar expected to represent over 50% of the Company’s 2008 revenue.
Gross Margin
For 2007, the Company improved its full year gross margin to 17.8% of revenue, an improvement of 144% from 7.3% of revenue in 2006. The Company achieved gross margin of $14.4 million in 2007, up $11.6 million or 414% from gross margin of $2.8 million in 2006. For 2007 H2, the Company achieved gross margin of 19.4%, up 177% compared to 7.0% for 2006 H2. In 2007 H2, consolidated gross margin was $11.9 million, up $10.3 million or 644% from $1.6 million in 2006 H2.
The improvements in the Company’s gross margin performance in 2007 full year and 2007 H2 were due to stronger average selling prices, lower product and project costs, different product mix, and different geographic revenue mix.
The Company’s trend for gross margin as a percentage of revenue for 2007 H1, H2 and full year as compared to 2006 H1, H2 and full year is as follows:
The Company’s trend for gross margin dollar contribution for 2007 H1, H2 and full year as compared to 2006 H1, H2 and full year is as follows:
The Company expects to achieve a higher gross margin from the sale of its core BIPV products in its Europe Solar segment in 2008 as a result of a change in product mix, a change in geographic mix and lower product costs. The Company also expects to achieve a higher gross margin from the sale and installation of its core BIPV products in its U.S. Solar segment in 2008 as a result of a change in product mix, a change in geographic mix, lower product costs, lower project costs, and economies of scale. The Company expects its gross margin performance for the Roofing & Maintenance segment to decline modestly in 2008 primarily as a result of tightening market conditions and different product and services mix.
SG&A
Selling, General and Administrative (SG&A) expenses for 2007 were $30.7 million, including $12.4 million in non-cash stock-based warrant compensation and $1.5 million in non-cash stock-based option compensation, and $0.5 million in non-cash depreciation. Excluding non-cash stock-based warrant and option compensation and non-cash depreciation, SG&A costs were down $0.7 million or 4.1% to $16.3 million in 2007 from $17.0 million in 2006. Excluding non-cash stock-based warrant and option compensation and non-cash depreciation, SG&A costs as a percentage of revenue declined to 20.1% in 2007 as compared to 44.5% of revenue in 2006. The Company’s trend of SG&A costs (excluding non-cash stock-based warrant and option compensation and non-cash depreciation) as a percentage of revenue for 2006 H1 and H2 and 2007 H1 and H2 is as follows:
Adjusted EBITDA
On a non-GAAP basis, after adjusting for (i) $12.4 million in non-cash stock-based warrant compensation, (ii) $1.5 million in non-cash stock-based option compensation, (iii) a $0.9 million non-cash change in the fair value of warrants, (iv) the $3.3 million recovery of a previously impaired receivable, and (v) a $4.8 million charge related to the conversion of certain convertible notes, adjusted EBITDA was $0.1 million for 2007, an improvement of $15.7 millionwhen compared to 2006 adjusted EBITDA of $(15.6) million. The following is a reconciliation of GAAP net loss to non-GAAP adjusted EBITDA.
The Company’s adjusted EBITDA trend for 2006 H1 and H2 and 2007 H1 and H2 is as follows:
Net Loss
On a GAAP basis, net loss for 2007 was $24.7 million, or $0.35 per share (which includes (i) $12.4 million in non-cash stock-based warrant compensation, (ii) $1.5 million in non-cash stock-based option compensation, (iii) a $0.9 million non-cash change in the fair value of warrants, and (iv) a $4.8 million charge related to the conversion of certain convertible notes, partially offset by a $3.3 million recovery of an impaired receivable), when compared with net loss for 2006 of $22.9 million or $0.62 per share.
Availability of Report and Accounts
The Company’s full report and accounts will be mailed to shareholders as soon as is practicable. Copies will also be available on the Company’s website at www.solarintegrated.com and on request from Pelham Public Relations, London, UK, +44 207 743 6675, Attention: Robert Koh.
Non-GAAP Measures:
To supplement the consolidated financial results prepared under U.S. GAAP, Solar Integrated uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude certain non-cash and other expenses. Management does not consider these items in evaluating the core operational activities of the Company. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate the Company's current performance. Given management's use of these non-GAAP measures, Solar Integrated believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in Solar Integrated’s core business across different time periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data and may be different from non-GAAP measures used by other companies.
Forward-Looking Statement:
This release includes forward-looking statements which are based on certain assumptions and reflect management’s current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: the availability and cost of capital; uncertainty as to whether our strategies, partnerships and business plans will yield the expected benefits; general global economic conditions; general industry and market conditions and growth rates; increasing competition; the ability to identify, develop and achieve commercial success for new products, services and technologies; changes in technology; changes in laws and regulations, including government incentive programs; intellectual property rights; our ability to secure and maintain strategic relationships, including key supply relationships; and the availability of, and our ability to retain, key personnel. Additional factors are discussed in our public disclosure materials from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Thinking Integrated. Building Integrated.
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Consolidated Financial Statements |
Solar Integrated Technologies, Inc.
Consolidated Financial Statements
Years Ended December 31, 2007 and 2006
Contents
Report of Independent Auditors........................................................................................................ 1
Consolidated Financial Statements
Consolidated Balance Sheets........................................................................................................... 2
Consolidated Statements of Operations............................................................................................ 4
Consolidated Statements of Shareholders’ Equity............................................................................. 5
Consolidated Statements of Cash Flows........................................................................................... 6
Notes to Consolidated Financial Statements..................................................................................... 8
Report of Independent Auditors
Board of Directors and Shareholders
Solar Integrated Technologies, Inc.
We have audited the accompanying consolidated balance sheet of Solar Integrated Technologies, Inc. (the Company) as of December 31, 2007 and the related consolidated statements of operations, shareholders’ equity, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The consolidated financial statements of Solar Integrated Technologies, Inc. for the year ended December 31, 2006, were audited by other auditors whose report dated June 21, 2007, expressed an unqualified opinion on those statements and included an explanatory paragraph that disclosed the Company’s adoption of Statement of Financial Accounting Standards No. 123(R), “Share-based Payment” (SFAS 123R) discussed in Note 2 to the consolidated financial statements.
We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting.Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated 2007 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Solar Integrated Technologies, Inc. as of December 31, 2007 and the consolidated results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States.
As discussed in Note 2 of the consolidated financial statements, the Company changed its method of accounting for recognizing revenue to the percentage of completion method on January 1, 2007.
March 26, 2008
Solar Integrated Technologies, Inc. |
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Consolidated Balance Sheets |
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(In Thousands, except per share data) |
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December 31 |
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2007 |
2006 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ 11,282 |
$ 6,984 |
Trade receivables, net |
14,406 |
7,302 |
Unbilled accounts receivable |
1,858 |
– |
Lease receivables |
946 |
1,551 |
Inventories |
21,561 |
19,714 |
Prepaid expenses and other current assets |
1,286 |
548 |
Total current assets |
51,339 |
36,099 |
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Noncurrent assets: |
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Restricted cash |
1,209 |
740 |
Lease receivables, net of current |
18,596 |
20,562 |
Property and equipment, net |
2,354 |
2,830 |
Solar systems held for sale |
– |
3,276 |
Loan fees, net of amortization |
1,167 |
5,459 |
Deposits and other assets |
626 |
429 |
Total assets |
$ 75,291 |
$ 69,395 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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Consolidated Balance Sheets |
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(In Thousands, except per share data) |
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December 31 |
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2007 |
2006 |
Liabilities |
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Current liabilities: |
|
|
Trade and other payables |
$ 10,934 |
$ 3,626 |
Borrowings on credit facility |
2,544 |
– |
Warranty accrual |
2,225 |
1,706 |
Other accrued expenses |
3,831 |
4,150 |
Progress billings |
2,131 |
5,553 |
Structured financing – current |
723 |
2,418 |
Total current liabilities |
22,388 |
17,453 |
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Convertible notes, net |
8,000 |
30,495 |
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Warrant liabilities |
2,693 |
1,786 |
Deferred revenue |
– |
2,109 |
Unearned income, net of current |
3,602 |
3,647 |
Structured financing, net of current |
13,073 |
13,954 |
Total liabilities |
49,756 |
69,444 |
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Shareholders’ equity (deficiency): |
|
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Common stock: $0.0001 par value: |
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Authorized shares – 250,000 |
|
|
at December 31, 2007 and 2006 |
|
|
Issued and outstanding 91,380 and 69,463 at |
9 |
7 |
December 31, 2007 and 2006, respectively |
|
|
Additional paid-in-capital |
101,722 |
49,683 |
Stock subscription receivable |
(3,261) |
(1,613) |
Accumulated other comprehensive loss |
(133) |
– |
Accumulated deficit |
(72,802) |
(48,126) |
Shareholders’ equity (deficiency): |
25,535 |
(49) |
Total liabilities and shareholders’ equity |
$ 75,291 |
$ 69,395 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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Consolidated Statements of Operations |
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(In Thousands, except per share data) |
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Years Ended December 31 |
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2007 |
2006 |
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Revenue |
$ 81,066 |
$ 38,234 |
Cost of sales |
66,637 |
35,471 |
Gross margin |
14,429 |
2,763 |
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|
Selling, general, and administrative expenses |
30,707 |
18,266 |
(Recovery) impairment of related party receivable |
(3,273) |
3,273 |
Severance costs |
– |
1,893 |
Loss from operations |
(13,005) |
(20,669) |
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Change in fair value of warrant liability |
907 |
(4,727) |
Interest expense, net |
7,411 |
6,955 |
Loss on debt conversion |
4,777 |
– |
Other income |
(1,424) |
(15) |
Net loss |
$ (24,676) |
$ (22,882) |
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Basic and diluted loss per share |
$ (0.35) |
$ (0.62) |
Weighted-average number of shares outstanding |
|
|
(basic and diluted) |
70,991 |
36,856 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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Consolidated Statements of Shareholders’ Equity |
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Additional |
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Accumulated |
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Paid-in |
Stock |
Other |
|
Total |
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Common Stock |
Capital |
Subscription |
Comprehensive |
Accumulated |
Shareholder’s |
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Shares |
Amount |
Amount |
Receivvable |
Income (Loss) |
Deficit |
Equity |
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(In Thousands) |
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Balance at December 31, 2005, as restated |
34,642 |
$ 4 |
$ 25,456 |
$ – |
$ – |
$ (25,244) |
$ 216 |
Net loss |
– |
– |
– |
– |
– |
(22,882) |
(22,882) |
Issuance of common stock |
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|
|
|
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|
on note conversions |
566 |
– |
1,920 |
– |
– |
– |
1,920 |
Proceeds of option exercise |
200 |
– |
431 |
– |
– |
– |
431 |
Warrant exercise |
722 |
– |
2,909 |
– |
– |
– |
2,909 |
Stock-based compensation |
128 |
– |
1,022 |
– |
– |
– |
1,022 |
Issuance of common stock, net of |
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expenses of $1,554 |
33,205 |
3 |
18,651 |
– |
– |
– |
18,654 |
Warrant expense incurred in |
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connection with the issuance |
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Of common stock |
– |
– |
(706) |
– |
– |
– |
(706) |
Stock subscription receivable |
– |
– |
|
(1,613) |
– |
– |
(1,613) |
Balance at December 31, 2006 |
69,463 |
7 |
49,683 |
(1,613) |
– |
(48,126) |
(49) |
|
|
|
|
|
|
|
|
Net loss |
– |
– |
– |
– |
– |
(24,676) |
(24,676) |
Other comprehensive loss |
|
|
|
|
|
|
|
Cumulative translation adjustment |
– |
– |
– |
– |
(133) |
– |
(133) |
Comprehensive loss |
|
|
|
|
|
|
(24,858) |
Payment received on stock subscription |
|
|
|
|
|
|
|
receivable |
– |
– |
– |
1,613 |
– |
– |
1,613 |
Issuance of common stock |
|
|
|
|
|
|
|
on note conversions |
4,246 |
– |
11,165 |
– |
– |
– |
11,165 |
Warrant exercise |
1,200 |
– |
711 |
– |
– |
– |
711 |
Warrant compensation |
– |
– |
12,396 |
– |
– |
– |
12,396 |
Stock-based compensation |
– |
– |
1,523 |
– |
– |
– |
1,523 |
Issuance of common stock, net of |
|
|
|
|
|
|
|
expenses of $1,571 |
16,471 |
2 |
26,244 |
– |
– |
– |
26,246 |
Stock subscription receivable |
– |
– |
– |
(3,261) |
– |
– |
(3,261) |
Balance at December 31, 2007 |
91,380 |
$ 9 |
$101,722 |
$ (3,261) |
$ (133) |
$ (72,802) |
$ 25,535 |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated financial statements. |
|||||||
|
|
|
Consolidated Statements of Cash Flows |
||
|
|
|
(In Thousands) |
||
|
|
|
|
Years Ended December 31 |
|
|
2007 |
2006 |
Operating activities |
|
|
Net loss |
$ (24,676) |
$ (22,882) |
Adjustments to reconcile net loss to net cash used in |
|
|
operating activities: |
|
|
Depreciation |
1,027 |
785 |
Amortization of loan fees and discount on convertible Note |
4,877 |
3,106 |
Loss on debt conversion |
4,777 |
– |
Loss on sale of assets |
29 |
– |
Provision for losses on accounts receivable |
65 |
– |
Provision for losses on inventory |
224 |
175 |
Impairment – related party receivable |
– |
3,273 |
Impairment – capitalized legal fees |
– |
974 |
Stock-based compensation |
1,523 |
1,022 |
Warrant compensation |
12,396 |
– |
Change in fair value of warrant liability |
907 |
(4,727) |
|
|
|
Changes in operating assets and liabilities: |
|
|
Accounts receivable |
(7,651) |
1,309 |
Unbilled accounts receivable |
(1,858) |
– |
Lease receivables |
2,571 |
(10,778) |
Inventories |
(2,966) |
2,719 |
Prepaid expenses and other assets |
(935) |
787 |
Trade and other payables |
7,308 |
(4,458) |
Accrued expenses |
1,095 |
501 |
Progress billings |
(3,422) |
5,016 |
Unearned income |
(45) |
1,331 |
Net cash used in operating activities |
(4,754) |
(21,847) |
|
|
|
Investing activities |
|
|
Acquisition of property and equipment |
(602) |
(183) |
Proceeds from sale of assets |
22 |
– |
Loans to related party |
– |
(1,028) |
Net cash used in investing activities |
(580) |
(1,211) |
Solar Integrated Technologies, Inc. |
||
|
|
|
Consolidated Statements of Cash Flows (continued) |
||
|
|
|
(In Thousands) |
||
|
|
|
|
|
|
|
Years Ended December 31 |
|
|
2007 |
2006 |
Financing activities |
|
|
Borrowing on credit facility |
$ 2,544 |
$ – |
Cash paid for loan origination and structured finance fees |
&nbs | |