ALBUQUERQUE, NM--(Marketwired - May 21, 2015) - Enerpulse Technologies (
First Quarter Highlights
- Closed $3.05 million senior subordinated convertible notes on February 20, 2015
- Sales revenue is up in 13% over prior year same period
- Gross profit is up 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015
- Margins improved substantially over prior year same period from 6.5% to 48%, due to a number of factors including better utilization of production labor and direct overhead for period ending March 31 2015
Corporate Update for First Quarter Ended March 31, 2015:
"The first quarter marked an important time for Enerpulse Technologies," commented Joe Gonnella, Chief Executive Officer of Enerpulse Technologies. "We successfully completed our private placement and are now able to move forward on a number of fronts and execute our operational strategy."
Mr. Gonnella continued, "We are busy commercializing additional product models to support the Natural Gas vehicular and industrial markets. We are also launching a targeted marketing plan to promote aftermarket growth specific to the highly responsive performance vehicle and motorcycle segments. These successes represent key milestones in generating increased revenue and are central to our continued commitment to move toward profitability in the automotive aftermarket and Natural Gas channels. We also continue to engage automotive and Natural Gas engine OEM's with collaborative testing which will generate greater shareholder value in the long term."
For more information call 888-800-6700 or please visit www.enerpulse.com.
Results for Three Months Ended March 31, 2015:
For the three months ended March 31, 2015, the Company reported revenue of $110 thousand, an increase of 13.2% compared to $97 thousand for the three months ended March 31, 2014. The increase in revenue was, primarily due to the introduction of the Pulstar with PlasmaCore new product line midyear 2014.
The company's gross profit increased by 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015 as a result of the increase in sales offset by decreased costs of sales driven by manufacturing process improvements, improved labor utilization and improved design and operating procedure related to the release of Pulstar with PlasmaCore. The gross profit margin was 47.9% for the three months ended March 31, 2015, which is higher than that of 6.5% for the three months ended March 31, 2014, due primarily to the above factors impacting favorably on March 31, 2015 and transition to new components during the three months ended March 31, 2014.
Our Selling, general and administrative expenses decreased by 10.5% from $698 thousand for the three months ended March 31, 2014 to $625 thousand for the three months ended March 31, 2015. The decrease reflects the efforts by the Company to limit spending until the closing of the February 20, 2015 debt offering.
Cash and cash equivalents totaled $2,238 thousand at March 31, 2015, up from $17 thousand on December 31, 2014. The increase is due to the successful completion of the private placement of senior secured convertible notes on February 20, 2015 and receipt of the associated proceeds.
About ENERPULSE (
Enerpulse Technologies, Inc. is a publicly traded company headquartered in Albuquerque, N.M. Founded in 2004; the company develops and manufactures ultra-high performance, low emissions ignition products through the application of pulse power technology. For more information, visit www.enerpulse.com.
Safe Harbor / Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Information provided by the Company such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations, marketing and sales; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including market conditions, risks associated with the cash requirements of our business and other risks detailed from time to time in our filings with the Securities and Exchange Commission, and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.
| ENERPULSE TECHNOLOGIES, INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| March 31, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 2,338,482 | $ | 17,077 | ||||||
| Accounts receivable, net | 89,613 | 73,572 | ||||||||
| Inventory, net | 311,270 | 337,297 | ||||||||
| Other current assets | 6,250 | 22,981 | ||||||||
| Total current assets | 2,745,615 | 450,927 | ||||||||
| Intangible assets, net of accumulated amortization of $136,748 (2015) and $128,444 (2014) | 498,928 | 483,982 | ||||||||
| Property and equipment, net | 154,050 | 173,963 | ||||||||
| Other assets | 21,699 | 118,557 | ||||||||
| Total assets | $ | 3,420,292 | $ | 1,227,429 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||
| Current Liabilities | ||||||||||
| Accounts payable | $ | 455,489 | $ | 554,747 | ||||||
| Accrued expenses | 175,245 | 135,968 | ||||||||
| Current portion of capital lease obligations | 24,737 | 24,737 | ||||||||
| Total current liabilities | 655,471 | 715,452 | ||||||||
| Long-Term Liabilities | ||||||||||
| Capital lease obligations, net of current portion | 14,844 | 20,778 | ||||||||
| Notes payable, net of offering costs and discounts | 1,289,799 | 248,225 | ||||||||
| Warrants liability | 952,176 | 817,250 | ||||||||
| 2,256,819 | 1,086,253 | |||||||||
| Total liabilities | 2,912,290 | 1,801,705 | ||||||||
| Commitments and Contingencies | ||||||||||
| Stockholders' Equity (Deficit) | ||||||||||
| Preferred stock, 10,000,000 shares authorized; no shares issued and outstanding; $0.001 par value | - | - | ||||||||
| Common stock, 100,000,000 shares authorized; 14,532,381 and 13,732,381 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively; $0.001 par value | 14,533 | 13,733 | ||||||||
| Additional paid-in capital | 27,741,913 | 26,812,046 | ||||||||
| Note receivable, related party | (204,610 | ) | (204,100 | ) | ||||||
| Accumulated deficit | (27,043,834 | ) | (27,195,955 | ) | ||||||
| Total stockholders' equity (deficit) | 508,002 | (574,276 | ) | |||||||
| Total liabilities and stockholders' equity (deficit) | $ | 3,420,292 | $ | 1,227,429 | ||||||
| See notes to accompanying unaudited consolidated financial statements. | ||||||||||
| ENERPULSE TECHNOLOGIES, INC. | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Sales | $ | 109,958 | $ | 97,164 | ||||||
| Cost of sales | 57,307 | 90,844 | ||||||||
| Gross profit | 52,651 | 6,320 | ||||||||
| Selling, general and administrative expenses | 625,264 | 698,476 | ||||||||
| Loss from operations | (572,613 | ) | (692,156 | ) | ||||||
| Other income (expense), net | ||||||||||
| Fair value adjustments of derivative liabilities | 762,630 | - | ||||||||
| Other expense, net | (37,896 | ) | (10,110 | ) | ||||||
| Other income (expense), net | 724,734 | (10,110 | ) | |||||||
| Net income (loss) | $ | 152,121 | $ | (702,266 | ) | |||||
| Net income (loss) per common share (basic and diluted) | $ | 0.01 | $ | (0.08 | ) | |||||
| Net income (loss) per puttable common share (basic and diluted) | $ | - | $ | (0.08 | ) | |||||
| Weighted average number of shares outstanding (basic and diluted) - common | 13,830,158 | 8,732,381 | ||||||||
| Weighted average number of shares outstanding (basic and diluted) - puttable common | - |
131,287 |
||||||||
| See notes to accompanying unaudited consolidated financial statements. | ||||||||||
| ENERPULSE TECHNOLOGIES, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2015 | 2014 | ||||||||||
| Cash Flows From Operating Activities | |||||||||||
| Net income (loss) | $ | 152,121 | $ | (702,266 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash used inoperating activities: | |||||||||||
| Stock-based compensation | 18,527 | 37,050 | |||||||||
| Amortization | 8,304 | 7,196 | |||||||||
| Depreciation | 13,803 | 12,446 | |||||||||
| Amortization of debt discount | 63,438 | 7,908 | |||||||||
| Fair value adjustments of derivative liabilities | (762,630 | ) | - | ||||||||
| Interest on note receivable, related party | (510 | ) | (505 | ) | |||||||
| Provision for doubtful accounts | 5,093 | 1,305 | |||||||||
| Provision for obsolete inventory | 15,500 | - | |||||||||
| Loss on disposal of equipment | 8,000 | - | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (21,134 | ) | 8,832 | ||||||||
| Inventory | 10,527 | (21,525 | ) | ||||||||
| Accounts payable | 9,485 | 363,403 | |||||||||
| Accrued expenses | 39,277 | (65,009 | ) | ||||||||
| Other | 4,846 | 3,085 | |||||||||
| Net cash used in operating activities | (435,353 | ) | (348,080 | ) | |||||||
| Cash Flows From Investing Activities | |||||||||||
| Purchase of property and equipment | (1,890 | ) | (7,561 | ) | |||||||
| Purchase of intangible assets | (23,250 | ) | (12,127 | ) | |||||||
| Net cash used in investing activities | (25,140 | ) | (19,688 | ) | |||||||
| Cash Flows From Financing Activities | |||||||||||
| Payments on deferred equity offering costs | - | (7,938 | ) | ||||||||
| Proceeds from notes payable, net of offering costs | 2,837,832 | 230,000 | |||||||||
| Payments on capital lease and notes payable | (55,934 | ) | (1,734 | ) | |||||||
| Net cash provided by financing activities | 2,781,898 | 220,328 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 2,321,405 | (147,440 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 17,077 | 281,607 | |||||||||
| Cash and cash equivalents at end of period | $ | 2,338,482 | $ | 134,167 | |||||||
| Supplement cash flow information: | |||||||||||
| Cash paid for interest | $ | 1,333 | $ | 2,680 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Warrants issued related to debt offering costs | $ | 137,655 | $ | - | |||||||
| Common stock issued related to debt offering costs | $ | 160,000 | $ | - | |||||||
| Deferred equity offering costs accrued | $ | - | $ | 181,568 | |||||||
| See notes to accompanying unaudited consolidated financial statements. | |||||||||||
Contact Information:
For further information, contact:
Heather Tausch
Director of Marketing and Communications
505-999-2005