Solar Energy Initiatives, Inc. (OTCBB:SNRY) executing on a grass roots campaign, “RENEW THE NATION”, to help redeploy a portion of the U.S. work force and focus on reducing the world’s dependence on fossil fuels by selling solar thermal and photovoltaic (PV) technologies, today announced that it has recorded $521,000 in revenue for the second quarter ended January 31, 2009. This represents a 117% increase in sequential quarterly revenues.
“The company’s strong second quarter results provide us with a platform for continued organic growth and escalating revenues,” said David Fann, CEO of SNRY. “Since inception, the Company has successfully transitioned from a developmental stage corporation to a viable revenue generating company that is rapidly increasing sales. The recent announcement of our RENEW THE NATION campaign has increased both website traffic and dealer inquiries ten fold. These are key factors in securing new network dealers and ultimately expanding our geographic footprint.”
2009 Second Quarter Results
Revenue for the second quarter ended January 31, 2009 were $521,000, compared to $0 revenue for the period ended January 31, 2008. On a quarterly sequential basis the revenues increased 117%.
Operating loss for the second quarter ended January 31, 2009 was $582,000, a reduction of 49% compared to $868,000 for the first quarter of 2009. Loss per share was $.05 per share, a sequential quarterly improvement from a net loss per share of $0.06 in the first quarter 2009. General and administrative expenses totaled $661,000 for the first quarter 2009, compared with over $1,028,000 Million in the first quarter of 2009, nearly a 36% reduction. These results are consistent with the Company’s transition from a developmental stage company to a revenue generating company.
As of January 31, 2009, Solar Energy Initiatives had total assets of $1,882,000, an increase of 321% compared to total assets of $447,000 at January 31, 2008. The increase in revenue and total assets were a result of the acquisition completed in August and an increase of certified dealers within Solar Energy’s dealer network.
“We are pleased with both the top line growth and operational milestones achieved during the quarter,” continued, Mr. Fann. “We not only successfully increased our revenue base, but we aggressively lowered our expenses as we move towards profitability. We expect our revenues for the third quarter to double compared to our second quarter results. Management is confident that this upward trending momentum will continue through 2009 and the foreseeable future. We are excited with the current status of prospective business generation and the direction in which the Company is headed. Our expanding dealer network will continue to improve revenue, and we expect to reach positive cash flow status next quarter, thus helping us to achieve our ultimate goal of improving shareholder value.”
Conference Call
Solar Energy Initiatives will host a conference call to discuss the Company's annual financial results for the second quarter period ended on January 31, 2009.
The conference call will take place on March 18, 2009 at 4:30 pm (EST). If calling within the United States please dial 1-800-762-8779 or if calling internationally, please dial 1-480-629-9041 approximately 5 to 10 minutes prior to 4:30 pm (EST) start time. Participants should ask for the Solar Energy Initiatives Second Quarter 2009 Financial Results conference call. There will be a playback available until March 25, 2009. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use the pass code 4032527 for replay.
A live audio webcast of the conference call will also be available at www.solarenergy.com.
| Solar Energy Initiatives, Inc. | |||||||||
| (Formerly NP Capital Corp.) | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| January 31, 2009 | July 31,2008 | ||||||||
| ASSETS | (unaudited) | (audited) | |||||||
| Current assets | |||||||||
| Cash | $ | 39,309 | $ | 366,655 | |||||
| Accounts receivable | 83,233 | - | |||||||
| Inventory | 62,609 | - | |||||||
| Prepaid expenses and other current assets | 14,484 | 3,845 | |||||||
| Total current assets | 199,635 | 370,500 | |||||||
| Property, plant and equipment, net | 24,365 | 5,434 | |||||||
| Domain name | 1,650,000 | - | |||||||
| Deposits | 7,832 | ||||||||
| Deposit on domain name | - | 25,000 | |||||||
| Total assets | $ | 1,881,832 | $ | 400,934 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts Payable | $ | 344,351 | $ | - | |||||
| Due to related parties | 56,023 | 31,735 | |||||||
| Accrued expenses | 77,198 | 74,976 | |||||||
| Deferred Revenue | 19,900 | - | |||||||
| Convertible debentures, net of discounts | 177,631 | ||||||||
| Note payable-current Portion | 480,000 | - | |||||||
| Total current liabilities | 1,155,103 | 106,711 | |||||||
| Note Payable-Long Term Portion | 160,000 | - | |||||||
| Total Liabilities | 1,315,103 | 106,711 | |||||||
| Stockholders' equity | |||||||||
| Common stock, $0.001 par; 100,000,000 authorized | |||||||||
| 14,230,197 and 11,809,256 issued and outstanding, respectively | 14,230 | 11,809 | |||||||
| Paid-in capital | 4,224,109 | 2,298,156 | |||||||
| Deferred Compensation | (132,552 | ) | - | ||||||
| Stock subscription receivable | (60,000 | ) | (60,000 | ) | |||||
| Accumulated deficit | (3,479,058 | ) | (1,955,742 | ) | |||||
| Total stockholders' equity | 566,729 | 294,223 | |||||||
| Total liabilities and stockholders' equity | $ | 1,881,832 | $ | 400,934 | |||||
| Solar Energy Initiatives, Inc. | |||||||||||||||||
| (Formerly NP Capital Corp.) | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (unaudited) | |||||||||||||||||
Three Months Ending January 31, | Three Months Ending January 31, | Six Months Ending January 31, | Six Months Ending January 31 | ||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||
| Revenues, net | $ | 521,223 | $ | - | $ | 761,338 | $ | - | |||||||||
| Cost of sales | 443,011 | - | 515,649 | - | |||||||||||||
| Gross profit | 78,212 | 245,689 | |||||||||||||||
| Operating expenses | |||||||||||||||||
| Selling, general and administrative | 660,683 | 219,158 | 1,689,872 | 1,395,173 | |||||||||||||
| Research and development | - | - | - | 16,143 | |||||||||||||
| Total operating expenses | 660,683 | 219,158 | 1,689,872 | 1,411,316 | |||||||||||||
| Loss from operations | (582,471 | ) | (219,158 | ) | (1,444,183 | ) | 14,11,316 | ||||||||||
| Other Income (expense) | |||||||||||||||||
| Interest and other income | - | 291 | 643 | 930 | |||||||||||||
| Interest Expense | (71,861 | ) | - | (79,776 | ) | - | |||||||||||
| Bad debt related party note receivable | - | (68,100 | ) | - | (68,100 | ) | |||||||||||
| Total other income (expense) | (71,861 | ) | (67,809 | ) | (79,133 | ) | (67,170 | ) | |||||||||
| Net loss | $ | (654,332 | ) | $ | (286,967 | ) | $ | (1,523,316 | ) | $ | (1,478,486 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.39 | ) | $ | (0.16 | ) | |||||
| Weighted average shares outstanding – basic and diluted | 14,155,062 | 10,493,256 | 3,880,994 | 9,482,115 | |||||||||||||
| Solar Energy Initiatives, Inc. | ||||||||||||||||||||||||||
| (Formerly NP Capital Corp.) | ||||||||||||||||||||||||||
| STATEMENTS OF STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
Common Stock | Additional | Deferred | Common | Common | Accumulated | Total | ||||||||||||||||||||
| Paid-in | Comp | Stock | Stock | Deficit | Stockholders | |||||||||||||||||||||
Shares | Amount | Capital | Payable | Subscription | Equity | |||||||||||||||||||||
| Balances, July 31, 2008 | 11,809,256 | $ | 11,809 | $ | 2,298,156 | $ | - | $ | - | $ | (60,000 | ) | $ | 1,955,742 | $ | 294,233 | ||||||||||
| Cashless exercise of stock options | 440,506 | 441 | (441 | ) | - | - | - | - | ||||||||||||||||||
| Shares issues as Compensation August 2008 | 150,000 | 150 | 104,850 | (105,000 | ) | - | - | - | - | |||||||||||||||||
| Cancellation of Surette issued Mach 2008 | (25,000 | ) | (25 | ) | 25 | - | - | - | - | |||||||||||||||||
| Shares issued as Compensation at September 2008 | 350000 | 350 | 174650 | (175,000 | ) | - | - | - | - | |||||||||||||||||
| Shares issued for acquisition of SEI assets | 1,000,000 | 1,000 | 649,000 | - | - | - | 650,000 | |||||||||||||||||||
| Amortization of Deferred Compensation Expense | 64,166 | - | - | - | 64,166 | |||||||||||||||||||||
| Options granted for Compensation August and September 2008 | 653,651 | - | - | - | 653,651 | |||||||||||||||||||||
| Net Loss | - | - | - | (868,984 | ) | (868,984 | ) | |||||||||||||||||||
| Balances, October 31, 2008 | 13,724,762 | 13,725 | 3,879,891 | (215,834 | ) | - | (60,000 | ) | (2,824,726 | ) | 793,057 | |||||||||||||||
| Shares issued as Compensation at December 2008 | 175,000 | 175 | 50,575 | (50,750 | ) | - | - | - | - | |||||||||||||||||
| Shares issued for Board Seat December 2008 | 100,000 | 100 | 25,900 | - | - | - | 26,000 | |||||||||||||||||||
| Shares issued as Compensation at January 2009 | 100,000 | 100 | 29,900 | (30,000 | ) | - | - | - | - | |||||||||||||||||
| Shares issued as Compensation at January 2009 | 130,435 | 130 | 29,870 | - | - | - | 30,000 | |||||||||||||||||||
| Amortization of Deferred Compensation Expense | 164,032 | - | - | - | 164,032 | |||||||||||||||||||||
| Options granted for Compensation | 6,154 | - | - | - | 6,154 | |||||||||||||||||||||
| Discounts from warrants and benefical conversion feature | 196,493 | 196,493 | ||||||||||||||||||||||||
| Stock Warrant for Board Seat December 2008 | 5,326 | 5,326 | ||||||||||||||||||||||||
| Net Loss | - | - | - | - | (654,332 | ) | (654,332 | ) | ||||||||||||||||||
| Balances, January 31, 2009 | 14,230,197 | $ | $ | 14,230 | $ | 4,224,109 | $ | (132,552 | ) | $ | - | $ | (60,000 | ) | (3,479,058 | ) | $ | 566,729 | ||||||||
| Solar Energy Initiatives, Inc. | |||||||||
(Formerly NP Capital Corp) | |||||||||
| Statement of Cash Flows | |||||||||
| (unaudited) | |||||||||
For the Six Months Ended January 31, 2009 | For the Six Months Ended January 31, | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Net loss | $ | (1,523,316 | ) | $ | (1,478,486 | ) | |||
| Adjustments to reconcile net loss to net cash used by operating activities: | |||||||||
| Depreciation and Amortization | 1,678 | ||||||||
| Net loss on sale of investment & related discounts | 68,100 | ||||||||
| Stock based compensation | 949,329 | 1,069,500 | |||||||
| Convertible Debenture Amortization | 49,124 | ||||||||
| Change in operating assets and liabilities: | |||||||||
| Accounts Receivable | (83,233 | ) | |||||||
| Inventory | (62,609 | ) | |||||||
| Prepaid expenses and other current assets | (10,639 | ) | |||||||
| Deposits | (7,832 | ) | |||||||
| Accounts Payable | 344,351 | ||||||||
| Accrued expenses | 2,222 | 1,617 | |||||||
| Deferred Revenue | 19,900 | ||||||||
| Due to related parties | 24,288 | ||||||||
| Net cash used by operating activities | (296,737 | ) | (339,269 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
| Purchase of property and equipment | (20,609 | ) | |||||||
| Acquisition of Domain Name | (135,000 | ) | |||||||
| Net cash used by investing activities | (155,609 | ) | - | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
| Proceeds from Convertible Debenture | 325,000 | - | |||||||
| Proceeds from private placement | - | 615,405 | |||||||
| Principal payments on notes payable | (200,000 | ) | |||||||
| Net cash provided by financing activities | 125,000 | 615,405 | |||||||
| Net increase (decrease) in cash and cash equivalents | (327,346 | ) | 276,136 | ||||||
| Cash and cash equivalents at beginning of year | 366,655 | 166,221 | |||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 39,309 | $ | 442,357 | |||||
| SUPPLEMENTAL DISCLOSURES | |||||||||
| Cash operating activities: | |||||||||
| Interest paid | $ | 12,929 | $ | 20,876 | |||||
| SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||
| Stock issued for deferred compensation | $ | 280,000 | $ | - | |||||
| Acquisition of Domain Name | |||||||||
| Notes payable assumed | $ | 840,000 | - | ||||||
| Stock issued | 650,000 | $ | - | ||||||
| Total Non-cash consideration | 1,490,000 | ||||||||
| Cash consideration ($25,000 paid during the ended July 31, 2008) | 160,000 | - | |||||||
| $ | 1,650,000 | $ | - | ||||||
| Discounts from warrants and beneficial conversion feature | $ | 196,493 | $ | - | |||||
The Company’s dealer network has access to BP Solar (NYSE:BP) and GE Solar (NYSE: GE) equipment via its distribution agreements. While Solar Energy does not compete directly with industry giants such as First Solar (NASDAQ:FSLR), Kyocera (NYSE:KYO), Sanyo (OTC:SANYY) or Suntech (NYSE:STP), as a system integrator, it provides exciting and practical solutions to businesses and individuals worldwide that understand the value of solar power.
About Solar Energy Initiatives, Inc.
Solar Energy Initiatives, Inc. (www.SolarEnergy.com) is executing its “RENEW THE NATION” campaign, intended to promote job growth nationwide and help reduce the dependency on foreign oil via an aggressive grass roots effort. The main focus of RENEW THE NATION is working with companies in the construction industry and related trades affected by the economic downturn to re-train and re-deploy their workforce, allowing this important national asset to meet the needs of the Solar Energy industry, the fastest growing industry in the world. We are executing on a three pronged approach to achieve our plan. This includes: continuing development of one of the fastest growing dealer networks in the U.S. that sells and installs solar solutions to homeowners and commercial customers; placing solar systems on large commercial buildings and selling the energy output to the owner/occupant(s); and becoming a developer of solar parks bringing together landowners, utilities and our corporate resources to build large photovoltaic installations.
Contacts:
David Fann, Chief
Executive Officer, 904-644-6090
David.fann@solarenergy.com
www.solarenergy.com
or
Alliance
Advisors, LLC
Chris Camarra, 212-398-3487
ccamarra@allianceadvisors.net
or
Bryan
Kobel, 212-398-3487
bkobel@allianceadvisors.net
