SOURCE: Solar Energy Initatives

December 22, 2010 08:30 ET

Solar Energy Initiatives, Inc. Announces Financial Results for the First Quarter of 2011

Reduces Annual Burn Rate by $750,000

PONTE VEDRA BEACH, FL--(Marketwire - December 22, 2010) -  Solar Energy Initiatives, Inc. (OTCBB: SNRY), with businesses in solar project development, distribution and workforce training, announced today the financial results and shareholder update for the first quarter of 2011.

"Management believes that 2011 will be a strong period of growth for the company," said Mr. David Fann, CEO of Solar Energy Initiatives. "During the previous quarter, management refocused its efforts on reducing overhead throughout the Company. This includes a reduction in headcount, consulting agreements, rented space, and other items resulting in savings of over $63,000 per month. These savings will be fully reflected in the Company's second quarter. The Company continues to make progress on the funding and/or sale of its solar projects located on the east coast of the U.S. with an expected sale occurring during the 2nd quarter. We are in negotiations with various municipalities and other customers on new solar projects including various new geographic areas such as Delaware, Connecticut, New Jersey, Arizona and California. Going forward, we will continue to strive to increase margins, improve earnings and maximize shareholder value."

Operational Highlights

  • Reduced burn rate and overhead expenses by over $63,000 per month.
  • Signed Power Purchase Agreements (PPAs) with the Tennessee Valley Authority (TVA) to build 2.0 MWs of projects with municipal and institutional clients. Under the completed agreements, TVA has agreed to purchase all of the power the systems produce, as well as the associated environmental benefits.
    • Solar Energy Initiatives, Inc. will lead the project development effort, including system design, installation and operation of the proposed 2.0 megawatts (MW) of photovoltaic (PV) systems on the sites.
  • Completed the necessary funding to facilitate the first phase of a 1 Megawatt (MW) installation of photovoltaic (PV) system for a southeast municipality.
  • Announced that the company's Solar EOS Inc. subsidiary has been approved to open its solar technical training school in South Carolina.
    • The Solar Installation School, developed and facilitated by Solar EOS -- a wholly owned subsidiary of Solar Energy Initiatives, Inc. -- will be added to the South Carolina Workforce Investment's Eligible Training Provider list and the School will be a new training option to which area Career One-Stop locations will begin referring eligible training applications.
  • Approved by the Florida Department of Business and Professional Regulation (DBPR) to provide Continuing Education for Electrical Contractors
    • Solar EOS has developed specific training programs titled "Solar for Electrical Contractors" and "Solar for Building Inspectors" that will earn (5) CEs towards their licensure in Florida.

Financial Results for the Three Months Ended October 31, 2010

For the three months ended October 31, 2010, we had revenues of $482,410 compared to $1,011,950 for the three months ended October 31, 2009. Revenues for the three months ended October 31, 2010 reflect dealer training and sales of solar energy systems and equipment. For the three months ended October 31, 2009 revenues relate primarily to sales of solar energy systems and equipment.

For the three months ended October 31, 2010 our Cost of Goods Sold were $342,006 compared to $750,416 for the three months ended October 31, 2009, resulting in a gross profit from operations of $140,404 compared to $261,534 respectively. 

Selling, general and administrative ("S, G & A") expenses for the three months ended October 31, 2010 were $1,396,768 compared with $1,208,378 for the same period ending October 31, 2009. 

For the three months ended October 31, 2010 interest expense was $96,532, due to interest related to, loans from shareholders, and note interest, compared with $46,452 for the same period ending October 31, 2009. 

Our net loss attributable to Solar Energy Initiatives, Inc. was $1,274,311 for the three months ended October 31, 2010 compared with $993,296 for the period ending October 31, 2009. The net loss primarily reflects our expenses relating to business activities that have been incurred ahead of our ability to recognize material revenues from our business plan.

About Solar Energy Initiatives, Inc.

Solar Energy Initiatives, Inc. (OTCBB: SNRY) is a diversified provider of solar solutions with three principal operating groups focused on large-scale projects, solar education and distribution of solar products. SNRY Power is a developer and manager of municipal and commercial scale solar projects. The SolarEOS Group is dedicated to the education and continuous improvement of solar energy trade professionals. SNRY Solar is a wholesale distributor of branded photovoltaic and thermal (water heating) systems selling via a network of dealers throughout the United States and the Caribbean. Through its diversified portfolio of solar businesses, Solar Energy Initiatives, Inc. is committed to restoring the nation's economy through a grassroots campaign called "Renew the Nation." Renew the Nation brings together a broad alliance of public and private sector interests focused on workforce development, job creation and economic growth through solar energy. For more information please visit http://www.solarenergy-us.com/.

Contact Information

  • Contact:
    Investors:
    Solar Energy Initiatives, Inc.
    David Fann
    Chief Executive Officer
    904-644-6090
    Email Contact