Automated Manufacturing of PbC Electrodes a Principal Short-term Goal
NEW CASTLE, Pa, May 13 /PRNewswire-FirstCall/ -- Axion Power
International Inc (OTC Pink Sheets: AXPW), a leading developer of advanced
lead-carbon "PbC"(TM) batteries, today reported that during the first
quarter of 2008, its sales were $215,727, as compared to $164,513 during
the first quarter of 2007. All first quarter revenues came from specialty
lead-acid batteries that the Company has been manufacturing in limited
quantities at its modernized plant in New Castle, Pennsylvania. The Company
reported a net loss of $3.0 million, or $0.17 per share, for the first
quarter of 2008, as compared to a net loss of $6.5 million, or $0.40 per
share, for the first quarter of 2007.
Commenting on Axion's business development and strategy, CEO Thomas
Granville said, "We have spent four and a half years developing our PbC
technology and the results continue to be impressive. We believe that our
PbC technology offers the lowest end-user cost in the industry and we are
now manufacturing PbC batteries, in small batches, in a 30-year-old legacy
plant. We are preparing to install a first-generation automated electrode
fabrication line, which should be operational in July. In June, we will be
delivering 800 PbC batteries for a utility grid contract with Gaia and the
New York State Energy Development Agency. Our manufactured PbC prototypes
offer faster charge rates and longer cycle lives than comparable advanced
lead-acid batteries and we believe we will be able to sell PbC batteries
for a fraction of the cost of other battery technologies. At this point, we
believe our biggest challenges will be increasing production and proving
our technology in various demonstration applications."
Commenting on Axion's operating results and financial resources,
Granville said "Our costs have been high in the first quarter of 2008 as we
brought all of our restated filings into compliance, continued to modernize
our plant and developed new manufacturing methods for our PbC batteries.
The recent second closing of the Quercus Trust investment gives us enough
cash to fund our operations through the first quarter of 2009. The final
$10 million investment, which is expected before the end of June, should
provide enough cash to finance our planned installation of a
second-generation electrode manufacturing line that will increase our
capacity to 1,000 PbC batteries per day and permit the commercial sale of
PbC batteries in the second quarter of 2009."
Granville concluded, "It has been a long and difficult road, but we are
now ready to move our exciting PbC technology from the laboratory bench to
the factory floor. With the support of dedicated and enthusiastic investors
like our founders and The Quercus Trust, we plan to begin the
commercialization of our PbC technology by producing a line of proprietary
PbC batteries and eventually expanding our business by selling electrode
assemblies to other lead-acid battery manufacturers. We believe our PbC
Technology will reduce the cost of bulk energy storage, thereby improving
the efficiency of emerging clean energy technologies. Other further
potential benefits include reduced reliance on imported oil and a reduction
in greenhouse gasses."
About Axion Power International, Inc.
Axion has developed and patented a next generation energy storage
device that won the prestigious 2006 Frost & Sullivan Technology Innovation
Award for North America in the field of lead-acid batteries. According to
Frost & Sullivan, Axion's new PbC batteries have "the potential to
revitalize the lead-acid battery industry by breathing new life into an
established technology that was not well-suited to the requirements of
important new applications like hybrid electric vehicles and renewable
power."
PbC(TM) batteries use sophisticated carbon electrode assemblies to
replace the simple lead-based negative electrodes used by other lead-acid
battery manufacturers. The resulting device offers energy storage
approaching lead acid batteries, coupled with far longer cycle life and
power output approaching super-capacitors. These low-cost devices recharge
rapidly and are environmentally friendly because they use 40% less lead.
Axion has been producing prototype PbC batteries at its lead-acid battery
plant in New Castle, Pennsylvania for more than a year using the same
cases, positive electrodes, separators, electrolytes and manufacturing
equipment used in its other lead-acid battery lines. The only notable
manufacturing difference is the use of Axion's proprietary carbon electrode
assemblies instead of lead- based negative electrodes.
Axion believes its PbC technology devices are the only class of
advanced battery that can be assembled on existing lead-acid battery
production lines without significant changes to production equipment and
fabrication processes. It also believes it will be able to manufacture
carbon electrode assemblies in volume at low cost using standard production
methods that are commonly used in other industries. When its electrode
manufacturing methods are fully developed, Axion believes it will be able
to sell carbon electrode assemblies as virtual plug and play replacements
for the lead based negative electrodes used by all other lead acid battery
manufacturers.
Axion's goal is to become the leading supplier of carbon electrode
assemblies for the lead-acid battery industry.
"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995:
Certain statements in this Press Release are "forward-looking
statements" within the meaning of the Private Securities Litigation Act of
1995. These statements include, without limitation, statements concerning
the effect of the staged investment by Quercus, the timing of the Company's
future SEC reporting, the Company's belief that the funds from the
completed investment would provide sufficient capital liquidity to complete
its process development work, expand its manufacturing capabilities and
bring its new PbC based battery products to market, the Company's belief
that its completed products will be the only class of advance battery of
its kind and that it will be viable replacements for older generation
lead-acid batteries. These forward- looking statements are based on our
current expectations and beliefs and are subject to a number of risk
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. Such
risks and uncertainties include the risk that the Company does not receive
the additional $14 million in investment funds, or that the funds do not
prove sufficient for the Company to complete its development work, as well
as the risks inherent in commercializing a new product (including
technology risks, market risks, financial risks and implementation risks,
as well as other risks and uncertainties affecting the Company), and other
risks that have been included in filings with the Securities and Exchange
Commission, all of which are available at http://www.sec.gov. We disclaim any
intention or obligation to revise any forward-looking statements,
including, without limitation, financial estimates, whether as a result of
new information, future events, or otherwise.
TABLES FOLLOW
AXION POWER INTERNATIONAL, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(A Development Stage Company)
Three Months Ended
March 31,
2008 2007
Revenues $ 215,727 $ 164,513
Cost of tangible products sold 394,236 228,890
Gross profit / (loss) (178,509) (64,377)
Expenses
Selling, general & administrative 1,713,165 879,462
Research & development 382,017 320,374
Impairment of assets - -
Interest expense - related party 419,673 17,202
Derivative revaluation (2,844) 7,108
Mega C Trust Share Augmentation (Return) - -
Other, net (11,328) (22,543)
Net loss before income taxes (2,679,192) (1,265,980)
Income taxes - -
Deficit accumulated during development stage (2,679,192) (1,265,980)
Less preferred stock dividends and beneficial
conversion feature (287,415) (5,283,092)
Net loss applicable to common shareholders $(2,966,607)$(6,549,072)
Basic and diluted net loss per share $(0.17) $(0.40)
Weighted average common shares outstanding 17,861,987 16,247,299
AXION POWER INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(A Development Stage Company)
March 31, December 31,
2008 2007
(Unaudited)
ASSETS
Current Assets:
Cash & cash equivalents $ 1,689,973 $ 671,244
Accounts receivable 156,113 133,646
Other receivables 335,321 341,801
Inventory 475,916 375,635
Prepaid expenses 95,619 82,102
Total current assets 2,752,942 1,604,428
Property & equipment, net 2,352,709 2,119,252
TOTAL ASSETS $ 5,105,651 $ 3,723,680
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $ 883,838 $ 1,573,436
Other current liabilities 1,189,504 583,591
Notes payable to related parties 2,417,497 2,259,826
Liability to issue equity instrument - 106,183
Total current liabilities 4,490,839 4,523,036
Deferred revenue 816,211 840,945
Total liabilities 5,307,050 5,363,981
Stockholders' Equity (Deficit):
Convertible preferred stock-12,500,000
shares authorized Senior preferred
- 1,000,000 shares designated 137,500
issued and outstanding (137,500 in 2007) 1,549,696 1,515,376
Series A preferred - 2,000,000 shares
designated 822,997 shares issued and
outstanding (822,997 in 2007) 10,055,989 9,802,894
Common stock-50,000,000 shares
authorized $0.0001 par value 18,262,719
issued & outstanding (16,248,298 in 2007) 1,826 1,625
Additional paid in capital 29,889,664 25,768,331
Deficit accumulated during development
stage (41,465,311) (38,498,704)
Cumulative foreign currency translation
adjustment (233,263) (229,823)
Total Stockholders' Equity (Deficit) (201,399) (1,640,301)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
(DEFICIT) $ 5,105,651 $ 3,723,680
SOURCE Axion Power International Inc
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Related links:
http://www.axionpower.com
CONTACT:
investors, Rudy Barrio,
r.barrio@allencaron.com, or media, Brian Kennedy,
brian@allencaron.com, both of Allen & Caron, +1-212-691-8087;
Kelly Gubish of Axion Power International Inc, +1-724-654-9300,
kgubish@axionpower.com
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