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Day4 Energy Reports Third-Quarter 2009 Results

^{Published on 2009-11-09 04:31:51 - Market Wire}
 

 Key events of the quarter and in the past month included: - Advances in the solar project division with the announcement of the initiation of a 2.4MW project with Gunther Heiss Solar GmbH & Co. KG in Germany - $0.5 million in funding from the National Research Council to support Day4's activities - The introduction of the Day4 60MC-I featuring the Guardian Technology(TM) that dramatically improves the performance of the PV modules when exposed to partial shading, snow, debris and other external factors that, under normal circumstances, cause a substantial reduction in power and energy yield. - Approval from the Australian Patent Office on our patent for our core Day4 Electrode(R) solar technology. 

 Day4 Energy Inc. Consolidated Balance Sheets As at September 30, 2009 and December 31, 2008 ------------------------------------------------------------------------- September 30, December 31, 2009 2008 $ $ (unaudited) Assets Current assets Cash and cash equivalents 11,396,053 14,730,294 Restricted cash 413,430 11,085,230 Short-term investments 9,040,679 - Accounts receivable 3,315,759 3,320,849 Investment tax credits receivable 600,000 600,000 Other receivables 2,135,163 1,511,301 Inventory 21,787,572 35,018,558 Prepaid expenses 416,313 379,429 Equipment held for sale - 2,704,913 ------------ ------------ 49,104,969 69,350,574 Property, plant and equipment 23,461,289 28,254,320 ------------ ------------ 72,566,258 97,604,894 ------------ ------------ ------------ ------------ Liabilities Current liabilities Accounts payable and accrued liabilities 10,183,655 12,504,078 Taxes payable 830,000 830,000 Short-term debt 177,978 142,940 Deferred revenue 144,589 168,012 Derivative instruments - 2,157,218 ------------ ------------ 11,336,222 15,802,248 Long-term debt 1,143,521 1,143,521 ------------ ------------ 12,479,743 16,945,769 Non-controlling interest - 26,410 Shareholders' Equity Share capital Authorized Unlimited number of common shares Unlimited number of preferred shares Issued and outstanding 36,679,366 (2008 - 36,679,366) common shares 130,952,257 130,952,257 Contributed surplus 2,484,375 2,091,952 Warrants 2,279,890 2,279,890 Deficit (75,630,007) (54,691,384) ------------ ------------ 60,086,515 80,632,715 ------------ ------------ 72,566,258 97,604,894 ------------ ------------ ------------ ------------ Day4 Energy Inc. Consolidated Statements of Operations, Comprehensive Loss and Deficit For the three and nine months ended September 30, 2009 and 2008 (unaudited) ------------------------------------------------------------------------- Three-months ended Nine-months ended September 30, September 30, ------------------------- ------------------------- 2009 2008 2009 2008 $ $ $ $ Revenue Sales 13,342,802 31,692,152 23,417,251 60,224,616 Cost of goods sold 13,234,391 32,148,373 34,549,494 60,032,368 ------------------------- ------------------------- Gross (loss) margin 108,411 (456,221) (11,132,243) 192,248 ------------------------- ------------------------- Expenses General and administrative 1,922,304 1,955,797 6,907,498 4,501,041 Research and development 1,068,064 695,626 2,106,455 1,769,665 Less: Investment tax credits and Government assistance (34,020) - (34,020) (245,302) Selling and marketing 887,009 856,122 2,508,558 2,798,162 Depreciation 562,236 131,409 775,061 360,789 Amortization - 71,054 - 213,164 ------------------------- ------------------------- 4,405,593 3,710,008 12,263,552 9,397,519 ------------------------- ------------------------- Loss before undernoted 4,297,182 4,166,229 23,395,795 9,205,271 ------------------------- ------------------------- Foreign exchange gain (loss) 53,280 (466,277) 2,331,709 710,032 Unrealized gain (loss) on derivative instruments - 2,996,598 - 2,359,398 Interest and other income 52,581 465,917 167,085 1,882,665 Interest expense (27,266) (61,177) (82,915) (61,177) Royalty premium expense - (419,180) - (419,180) Gain (loss) on disposal of property, plant and equipment (1,452) (88) 25,278 (88) Write-off of plant design costs - - - (18,980) Gain on disposition of subsidiary - - 24,677 - Accretion expense (6,995) (41,664) (19,985) (138,436) ------------------------- ------------------------- 70,148 2,474,129 2,445,849 4,314,234 ------------------------- ------------------------- Loss before non-controlling interest 4,227,034 1,692,100 20,949,946 4,891,037 Non-controlling interest - - (11,323) - ------------------------- ------------------------- Loss and comprehensive loss for the year 4,227,034 1,692,100 20,938,623 4,891,037 Deficit - Beginning of period 71,402,973 24,016,970 54,691,384 20,818,033 ------------------------- ------------------------- Deficit - End of period 75,630,007 25,709,070 75,630,007 25,709,070 ------------------------- ------------------------- ------------------------- ------------------------- Net loss per share - basic and diluted 0.12 0.05 0.57 0.13 ------------------------- ------------------------- ------------------------- ------------------------- Weighted average number of shares outstanding - basic and diluted 36,679,366 36,679,366 36,679,366 36,641,734 ------------------------- ------------------------- ------------------------- ------------------------- Day4 Energy Inc. Consolidated Statements of Cash Flows For the three and nine months ended September 30, 2009 and 2008 (unaudited) ------------------------------------------------------------------------- Three-months ended Nine-months ended September 30, September 30, 2009 2008 2009 2008 $ $ $ $ Cash flows from operating activities Loss and comprehensive loss for the period (4,227,034) (1,692,100) (20,938,623) (4,891,037) Items not affecting cash Stock-based compensation 123,877 172,831 392,423 594,429 Accretion and royalty premium on IRAP-TPC loan - 465,282 - 550,901 Depreciation and amortization 862,484 611,594 1,956,218 1,377,988 Gain on disposition of pre-acquisition assets - 3,610 - 3,610 Loss (gain) on sale of property, plant and equipment 1,452 88 (25,278) 88 Write-off of plant design costs - - - 18,980 Gain on disposal of subsidiary - - (24,677) - Unrealized foreign exchange (gain) loss 10,205 (1,289,210) (379,611) 453,054 Change in value of derivative instruments - (2,996,598) (2,157,218) (2,359,398) Deferred lease inducement - - - (11,245) Non-controlling interest - - (11,323) - Changes in non-cash working capital items Accounts receivable (1,856,793) (8,649,945) 1,468,191 (20,678,665) Investment tax credits receivable - - - 159,006 Other receivables 1,935,873 599,537 (664,541) 821,926 Inventory 9,140,832 4,643,977 13,230,986 (8,988,571) Prepaid expenses (26,710) 125,762 (36,884) 145,511 Accounts payable and accrued liabilities (6,342,324) (460,689) (4,320,260) 5,176,061 Deferred revenue (31,790) 59,086 (23,423) (19,702) ------------------------- ------------------------- (409,928) (8,406,775) (11,534,020) (27,647,064) ------------------------- ------------------------- Cash flows from investing activities Purchase of short-term investments - - (9,000,000) (8,000,000) Proceeds from sale of short-term investments - 13,900,000 - 29,900,000 Change in restricted cash 3,055 987,450 10,671,800 (9,890,709) Purchase of property, plant and equipment (138,702) (6,124,582) (2,646,634) (23,790,657) Proceeds from sale of property, plant and equipment - 8,975 8,213,638 8,975 Proceeds from sale of subsidiary - net of cash included in sale of 29,098 - - 9,590 - ------------------------- ------------------------- (135,647) 8,771,843 7,248,394 (11,772,391) ------------------------- ------------------------- Cash flows from financing activities Proceeds from exercise of warrants - - - 492,498 Proceeds from exercise of stock options - - - 80,000 ------------------------- ------------------------- - - - 572,498 ------------------------- ------------------------- Impact of foreign exchange on cash and cash equivalents 576,364 400,596 951,385 (545,172) ------------------------- ------------------------- Increase (decrease) in cash and cash equivalents 30,789 765,664 (3,334,241) (39,392,129) Cash and cash equivalents - Beginning of period 11,365,264 12,935,343 14,730,294 53,093,136 ------------------------- ------------------------- Cash and cash equivalents - End of period 11,396,053 13,701,007 11,396,053 13,701,007 ------------------------- ------------------------- ------------------------- ------------------------- Supplemental cash flow information Cash paid for interest 1,249 8,127 4,217 8,249 Cash received for interest 1,315 317,146 19,778 1,693,204