Balqon Corporation Announces Record 2009 Third Quarter Revenues
Balqon Corporation (OTCBB:BLQN), an emerging developer and manufacturer
of zero emissions heavy-duty electric vehicles for Class 7 and Class 8
applications, today announced its financial results for the three and
nine months ended September 30, 2009. Revenues for the three months
ended September 30, 2009 were $780,158, a 7,132% increase over revenues
of $10,787 for the three months ended September 30, 2008. In addition,
gross margin increased to 16% during the three months ended September
30, 2009 as compared to a gross margin of 4% during three months ended
June 30, 2009. Revenues for the nine month period ended September 30,
2009 were $3,055,958, an increase of 1,332% over revenue of $213,362 for
the same period in 2008. Balqon reported a net loss of $616,699 for the
quarter ended September 30, 2009 as compared to a net loss of $1,533,187
for the same period in 2008 and reported a net loss of $1,977,271 for
the nine months ended September 30, 2009 as compared to a net loss of
$6,850,568 for the same period in 2008. The improvement in net loss in
the three and nine months ended September 30, 2009 is primarily due to
increases in revenues and gross profit over the same period in 2008.
Balqon also incurred $5,185,399 of stock-based compensation expense in
the nine months ended September 30, 2008 as compared to no stock-based
compensation expense in the same period of 2009.
“We believe that our three consecutive quarters of growth in revenues
validates our ability to commercialize our core technologies and meet
the growing needs of the markets we serve,” said Balwinder Samra, Chief
Executive Officer of Balqon Corporation. “Our record revenues and
implementation of higher range lithium-ion batteries in our complete
product line are examples of our ability to ramp up production while at
the same time implementing new technologies,” said Mr. Samra.
About Balqon Corporation
Balqon Corporation is a leading developer of heavy duty electric trucks,
tractors and electric drive systems. The Company uses its proprietary
flux vector control technology to design propulsion systems for 10 to 50
ton capacity vehicles and material handling equipment. Balqon
Corporation’s current product line of tow tractors are designed to
transport containers at ports, marine terminals, rail yards, warehouses,
intermodal facilities, military bases and mail facilities. For
information about Balqon Corporation and its product offerings, visit www.balqon.com.
Balqon Corporation’s common stock is eligible for trading on the OTC
Bulletin Board under the symbol “BLQN.”
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
With the exception of historical information, the matters discussed in
this press release, including, without limitation, Balqon Corporation’s
ability to commercialize its core technologies and meet the growing
needs of heavy-duty electric vehicle markets and its ability to ramp up
production while at the same time implementing new technologies are
forward-looking statements that involve a number of risks and
uncertainties. The actual future results of Balqon Corporation could
differ from those statements. Factors that could cause or contribute to
such differences include, but are not limited to, unforeseen technical
issues; Balqon Corporation’s ability to attract sufficient capital; the
ability of Balqon Corporation to attract and retain talented
individuals; adverse economic and market conditions; the projected
future demand for Balqon Corporation’s products; changes in technology
and governmental regulations and policies; and other events, factors and
risks previously and from time to time disclosed in Balqon Corporation’s
filings with the Securities and Exchange Commission, including,
specifically, those factors set forth in the “Risk Factors” section of
Balqon Corporation’s Amendment No. 1 to its Annual Report on Form 10-K
for the year ended December 31, 2008 filed with the Securities and
Exchange Commission on May 22, 2009 and its Quarterly Report on Form
10-Q for the quarter ended September 30, 2009 as filed with the
Securities and Exchange Commission on November 16, 2009.
BALQON CORPORATIONCONDENSED BALANCE SHEETS
September 30,2009(Unaudited)
December 31,2008ASSETS
Current assets
Cash and cash equivalents
$
176,306
$
355,615
Accounts receivable
797,546
—
Inventories
1,047,688
1,159,601
Prepaid expenses
43,512
43,020
Total current assets
2,065,052
1,558,236
Property and equipment, net
84,557
89,393
Other assets:
Deposits
18,273
33,641
Trade secrets, net of $62,320 and $15,580 of
accumulated amortization, respectively
124,645
171,385
Goodwill
166,500
166,500
Total assets
$
2,459,027
$
2,019,155
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued expenses
$
1,208,448
$
1,225,807
Customer deposit
1,159,601
—
Loan payable, Bridge Bank
256,300
—
Notes payable to related parties
25,000
100,875
Advances from shareholder
7,795
34,877
Billings in excess of costs and estimated earnings on uncompleted
contracts
3,255
2,604
Total current liabilities
2,660,399
1,364,163
Convertible notes payable, net of $879,093 discount
120,907
—
Total liabilities
2,781,306
1,364,163
SHAREHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.001 par value, 100,000,000 shares authorized,
25,518,348 shares issued and outstanding
25,518
25,518
Additional paid in capital
9,650,329
8,650,329
Accumulated deficit
(9,998,126
)
(8,020,855
)
Total shareholders’ equity (deficit)
(322,279
)
654,992
Total liabilities and shareholders’ equity (deficit)
$
2,459,027
$
2,019,155
BALQON CORPORATIONCONDENSED STATEMENTS OF OPERATIONSFOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2009
2008
2009
2008
REVENUES
$
780,158
$
10,787
$
3,055,958
$
213,362
COST OF REVENUES
656,088
17,361
2,849,777
170,292
GROSS PROFIT (LOSS)
124,070
(6,574
)
206,181
43,070
OPERATING EXPENSES:
General and administrative
557,166
940,703
1,782,451
6,304,051
Reverse merger expenses
—
429,300
—
429,300
Research and development
34,615
—
132,579
—
Depreciation and amortization
23,638
2,693
70,514
6,370
Total operating expenses
615,419
1,372,696
1,985,544
6,739,721
Loss from operations
(491,349
)
(1,379,270
)
(1,779,363
)
(6,696,651
)
Interest expense
(125,350
)
(153,917
)
(197,908
)
(153,917
)
NET LOSS
$
(616,699
)
$
(1,533,187
)
$
(1,977,271
)
$
(6,850,568
)
Net loss per share-basic and diluted
$
(0.02
)
$
(0.07
)
$
(0.08
)
$
(0.37
)
Weighted average shares outstanding, basic and diluted
