MILWAUKEE, Sept. 25, 2018 /PRNewswire/ -- EnSync, Inc.
(NYSE American: ESNC), dba EnSync Energy Systems ("EnSync Energy,"
"we," "us," "our," or the "Company"), the leading provider of
innovative distributed energy resources ("DERs") and business
models for residential, commercial and utility installations, today
announced financial results for the fourth quarter and fiscal year
ended June 30, 2018.
Financial Highlights
- Revenue for fiscal 2018 was $11.9
million, compared to $12.5
million in fiscal 2017. The Company experienced construction
delays for two power purchase agreement ("PPA") projects, and a
signing delay on a third, which resulted in the shifting of revenue
to the first half of fiscal 2019. For the fiscal year, the Company
recognized revenue from 13 PPA projects.
- Significantly better operational performance in fiscal 2018
compared to fiscal 2017. Gross profit improved by more than
$3.0 million in fiscal 2018 on
approximately the same amount of revenue as compared to fiscal
2017.
- Gross margins improved to 19.9% during fiscal 2018, compared to
a negative gross margin of (0.7)% during fiscal 2017. The Company
continues to become more efficient and profitable on its PPA
construction and sales efforts.
- On September 5, 2018, the Company
completed a registered direct offering of 11,334,616 shares of
Common Stock at a price of $0.26 per
share for net proceeds of $2.7
million.
- The Company has 12 PPA projects in backlog in various stages of
execution. Estimated backlog value for PPA projects, components and
systems as of the date of this announcement is approximately
$16.4 million.
Recent Business and Product Backlog Highlights
- During the fourth quarter, EnSync Energy formally launched the
company's leapfrog EnSync Home Energy System for property
developers and residential customers which will allow for a
completely integrated system with solar, energy storage, power
electronics and an Internet of Energy control platform that
delivers state-of-the-art functionality and modularity, with
industry benchmark economics, safety and system efficiency.
- Announced the signing of the largest PPA in company history, a
750 kW solar and 500 kWh energy storage system at the Keahumoa
Place affordable housing development, utilizing our recently
launched residential solution, the EnSync Home Energy System and
the first ever deployment of peer-to-peer energy exchange on a
DC-Link in the United States.
- Secured a total backlog of just under $6.0 million for the EnSync Home Energy
System
- Announced the signing of a 20-year PPA with Kona Brewing
Company for 336-kW solar and 122kW-hour energy storage system.
- Announced the sale of a 20-year PPA with California Department
of Forestry and Fire Protection to Standard Solar, marking the
Company's entry into the California marketplace.
- Announced the sale of a 20-year PPA with two community
facilities, Polynesian Cultural Center, a tourist destination, and
Kohala Village HUB, a community organization. The Polynesian
Cultural Center agreement marks the first commercial on-bill
financing project in Hawaii using
the Hawaii Green Infrastructure Authority's Green Energy Money
Saver (GEM$) On-Bill program.
- Announced the sale of Hawai'i Pacific
University Phase 2 PPA for Downtown Honolulu's largest solar project, the
20-year PPA will bring clean, affordable energy to Aloha Tower
Marketplace.
- Received a purchase order for a DER SuperModuleTM
system shipping to an unannounced customer in Ohio.
- Currently showcasing the Company's Home Energy System at the
Solar Power International conference and demonstrated True
Peer-to-PeerTM at Intersolar North America in
San Francisco in July 2018.
- Signed land options for six 2MW Community Solar installations
in Illinois, each parcel being
estimated at a little more than $4.0
million of value upon buildout and sale.
- Signed a 20-year PPA for a system to be installed at
Hawaii Pacific University for the Ocean
Institute.
Management Discussion
Brad Hansen, CEO of EnSync
Energy, commented, "Fiscal 2018 was a very strong operational and
development year for EnSync Energy, where we increased gross
profits by more than $3.0 million,
while at the same time developed innovative products that are
opening up new markets poised for rapid growth in the near term.
Our strategy to expand our product portfolio beyond our historic
Hawaii commercial and industrial
market is gaining significant traction. Besides the new
commercial systems penetrations in California, Colorado and Ohio, we're targeting the Northeast for
near-term success. Core to the success we have had, and the
tremendous opportunities in front of us, is our DER
SuperModuleTM product that is unmatched in the
marketplace. The introduction of the leapfrog EnSync Home Energy
System, targeted at the very high growth residential energy systems
market, at least triples our total available market over the next
few years, with the residential energy systems market overtaking
the commercial systems market in size by as early as
late-2019. Our early success in locking up land lease options
in Northern Illinois for 2019
build-out is a further addition to our sources of business. Our
exceptional operational execution demonstrated in FY2018 is a great
foundation to grow from in these additional regions and market
segments."
"In fiscal 2019, we anticipate making a hard push towards our
multi-family residential market opportunity, where our technology
enables us to disrupt the traditional utility model that others in
the industry simply cannot match. We believe the market window is
wide open, and our EnSync Home Energy System is ideal for
self-generation, while our True Peer-to-PeerTM energy
exchange is creating a solution for installing solar generation on
multi-family properties that were previously unsolvable. Our recent
announcement and execution on our Keahumoa Place multi-family
residential contract, the first peer-to-peer installation of its
kind in the United States, has
showcased our capabilities and has become a key driver to building
out our pipeline. Our IP protected True Peer-to-PeerTM
energy exchange capability will become vital for states like
California to implement Zero Net
Energy properties. We're also heavily focused on signing up
developer channels, especially in the Hawaii, California and Arizona markets where we anticipate shipping
approximately 20 channel partner qualification systems at the end
of this calendar year. The US residential systems market will
be worth at least $7.0
billion through 2023 and we're excited to go after a
significant share of it."
"Our utility focus, driven largely by our participation in
Illinois' renewable energy
initiatives, is rapidly progressing as we target the community
solar portion of their program. This program allows for up to 4
megawatt size installations to be constructed, then anyone in the
utility territory of the installation can subscribe to that
renewable electricity that is generated. We now have six parcels of
land under option contract that will support a total of at least 12
megawatts of PV, where we estimate each megawatt will be worth
approximately $2 million in
revenue. We're working to lock-up about another half dozen
parcels before the end of the calendar year, targeting at least
enough land to support 25 to 30 megawatts of projects. If the
program administration stays on schedule and if we execute well, we
should begin to see Illinois sales
contribution next summer."
Mr. Hansen concluded, "We're well prepared to capitalize on the
opportunities that are directly in front of us in the commercial
and industrial, residential, and utility markets. Our operational
execution continues to improve, our addressable markets continue to
expand, and our backlog and pipeline of projects is at an all-time
high. I look forward to leveraging our unique product capabilities
into fully operational projects in fiscal 2019 and the years to
come."
Quarterly Financial Results
Total revenue for the fourth quarter of fiscal 2018 was
$1.7 million, compared to
$3.1 million in the year ago
period. Revenue in the fourth quarter was impacted by the
sale and construction delays for three PPA projects, which resulted
in the shifting of revenue to the first half of fiscal 2019.
Revenue during the fourth quarter of fiscal 2018 was largely
derived from 9 PPA contracts in Hawaii.
Gross margins were 4.0% during the fourth quarter, compared to
5.5% gross margin in the year ago period. The decline in gross
margin in the fourth quarter relative to the significant
improvements during the first nine months of fiscal 2018, which
resulted in a 22.4% gross margin for that period, was the result of
inventory reserves and adjustments related to our legacy flow
battery business, which resulted in a more pronounced impact on
gross margin for the fourth quarter of fiscal 2018. Excluding the
inventory reserves and adjustments of $0.3
million and $(0.1) million for
the fourth quarter of fiscal 2018 and fiscal 2017, respectively,
adjusted gross margins would have been 21.9% in the fourth quarter
of fiscal 2018, compared to adjusted gross margins of 3.8% in the
year ago period. The Company's expectation is that gross profit
margins on future PPA sales should be between 15% and
25%.
Advanced Engineering and Development costs decreased to
$1.0 million during the fourth
quarter, compared to $1.3 million in
the year ago period, primarily due to the completion of the EnSync
Home Energy System in the fourth quarter of fiscal 2018.
Selling, General and Administrative expenses decreased to
$2.7 million during the fourth
quarter, compared to $2.8 million in
the year ago period. Total Advanced Engineering and Development
costs plus Selling, General and Administrative expenses (excluding
stock-based compensation of $0.4 million and $0.6 million,
respectively) was $3.3 million during
the fourth quarter, compared to $3.5
million in the year ago period.
Net loss attributable to common shareholders was $(3.7) million, or $(0.07) per basic and diluted share, for the
fourth quarter of fiscal 2018, compared to net income of
$9.2 million, or $0.19 per basic and diluted share, in the fourth
quarter of fiscal 2017, or an adjusted net loss of $(4.1) million, or $(0.08) per basic and diluted share after
excluding the $13.3 million gain
related to the termination of the SPI supply agreement in the
fourth quarter of fiscal 2017.
Annual Financial Results
Total revenue for fiscal 2018 was $11.9
million compared to $12.5
million in fiscal 2017. In fiscal 2018, the Company had 13
PPA contracts contribute to revenues.
Gross margins improved to 19.9% during fiscal 2018, compared to
(0.7)% gross margin in fiscal 2017. Adjusted gross margins
excluding the inventory reserves and adjustments of $0.4 million and $0.2
million, respectively, would have been 22.8% in fiscal 2018
and 0.7% in fiscal 2017. The improved gross margin is attributable
to continued efficiencies in the procurement, construction and sale
process.
Advanced Engineering and Development costs decreased to
$4.4 million during fiscal 2018,
compared to $4.8 million in fiscal
2017. Selling, General and Administrative expenses decreased
to $10.3 million in fiscal 2018,
compared to $11.1 million in fiscal
2017. The improvement in Selling, General and Administrative
expenses was primarily the result of a reduction in stock-based
compensation.
Net loss attributable to common shareholders was $(13.3) million, or $(0.24) per basic and diluted share in fiscal
2018, compared to a net loss attributable to common shareholders of
$(4.4) million, or $(0.09) per basic and diluted share, in fiscal
2017, or an adjusted net loss of $(17.7)
million, or $(0.37) per basic
and diluted share after excluding the $13.3
million gain related to the termination of the SPI supply
agreement in fiscal 2017.
Balance Sheet and Backlog
Cash and cash equivalents at June 30,
2018 was $3.0 million. On
September 5, 2018, the Company
completed a registered direct offering of a maximum shares
currently available under its shelf registration of 11.3 million
shares at a price of $0.26 per share.
The Company received net proceeds of $2.7
million.
Estimated backlog value for PPA projects, components and systems
as of the date of this announcement is approximately $16.4 million.
Nonstatutory Inducement Stock Option Grant to New
Employees
On April 24, 2018, two new
non-executive employees were issued nonstatutory inducement stock
options to purchase a total of 160,000 shares of common
stock. The nonstatutory inducement stock options are
exercisable at a price of $0.39 per
share (which was the closing price of a share of the Company's
Common Stock on the grant date) and vest in three equal annual
installments. The awards were approved by the Company's
independent Compensation Committee of the Board of Directors and
were granted as an inducement material to the new employees
entering into employment with the Company. The Company is
making this announcement as required by NYSE American rules.
Conference Call Information
Date: Tuesday, September 25,
2018
Time: 4:30 p.m. ET (3:30 p.m. CT)
Domestic participant dial in #: (877) 283-0524 or (412)
317-5232
Conference code #: 10124143
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization.
Interested parties can also listen to a live internet webcast
available in the investor section of the Company's website at
www.ensync.com.
A teleconference replay of the call will be available at (877)
344-7529 or (412) 317-0088, confirmation code 10124143, through
October 2, 2018. A webcast replay
will be available in the investor section of the Company's website
at www.ensync.com for 90 days.
About EnSync Energy Systems
EnSync, Inc. (NYSE American: ESNC), dba EnSync Energy Systems,
is creating the future of electricity with innovative distributed
energy resource (DER) systems and internet of energy (IOE) control
platforms. EnSync Energy ensures the most cost-effective and
resilient electricity, delivered from an electrical infrastructure
that prioritizes the use of all available resources, such as
renewables, energy storage and the utility grid. As project
developer, EnSync Energy's distinctive engagement methodology
encompasses load analysis, system design consulting, and technical
and financial modeling to ensure energy systems are sized and
optimized to meet our customers' objectives for value and
performance. Proprietary direct current (DC) power control
hardware, energy management software, and extensive experience with
numerous energy storage technologies uniquely positions EnSync
Energy to deliver fully integrated systems that provide for
efficient design, procurement, commissioning, and ongoing
operation. EnSync Energy's IOE control platform adapts easily
to ever-changing generation and load variables, as well as changes
in utility prices and programs, ensuring the means to make or save
money behind-the-meter, while concurrently providing utilities the
opportunity to use DERs for an array of grid enhancing services. In
addition to direct system sales, EnSync Energy includes power
purchase agreements (PPAs) in its portfolio of offerings, which
enables electricity savings for customers and provides a stable
financial yield for investors. EnSync Energy is a global
corporation, with joint venture Meineng Energy in AnHui, China, and energy project development
subsidiary Holu Energy LLC in Hawaii. For more information, visit
www.ensync.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are intended to be covered by the "safe harbor\"
created by those sections. Forward-looking statements, which
are based on certain assumptions and describe our future plans,
strategies and expectations, can generally be identified by the use
of forward-looking terms such as "believe," "expect," "may,"
"will," "should," "could," "seek," "intend," "plan," "goal,"
"estimate," "anticipate" or other comparable terms. All
statements other than statements of historical facts included in
this press release regarding our strategies, prospects, financial
condition, operations, costs, plans and objectives are
forward-looking statements. Examples of forward-looking statements
include, among others, statements we make regarding project
completion timelines, our ability to monetize our PPA assets,
statements regarding the sufficiency of our capital resources,
expected operating losses, expected revenues, expected expenses and
our expectations concerning our business strategy. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on our current beliefs,
expectations and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of our
control. Our actual results and financial condition may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the
following: our historical and anticipated future operational losses
and our ability to continue as a going concern; our ability to
raise the necessary capital to fund our operations and the risk of
dilution to shareholders from capital raising transactions; our
ability to successfully commercialize new products, including our
EnSync Home Energy System, MatrixTM Energy Management,
DER FlexTM, DER SupermoduleTM, and
AgileTM Hybrid Storage Systems; our ability to lower our
costs and increase our margins; our product, customer and
geographic concentration, and lack of revenue diversification; the
length and variability of our sales cycle; our dependence on
governmental mandates and the availability of rebates, tax credits
and other economic incentives related to alternative energy
resources and the regulatory treatment of third-party owned solar
energy systems; and the other risks and uncertainties discussed in
the Risk Factors and in Management's Discussion and Analysis of
Financial Condition and Results of Operations sections of our most
recently filed Annual Report on Form 10-K and our subsequently
filed Quarterly Report(s) on Form 10-Q. We undertake no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Non-GAAP Financial Measures
In this press release, we
have included several non-U.S. GAAP financial measures, including
adjusted gross margin and adjusted net loss, as our management
believes this information is useful to investors to aid in
comparisons with other periods. The non-U.S. GAAP
information has limitations as an analytical tool and should not be
considered in isolation from or as a substitute for U.S. GAAP
information.
Media Relations Contact:
Antenna
Shreema Mehta
ensync@antennagroup.com
(646) 416-9853
EnSync Energy Media Contact:
Michelle Montague
mmontague@ensync.com
(262) 735-5676
Investor Relations Contact:
Lytham Partners,
LLC
Robert Blum, Joseph Diaz, or Joe Dorame
esnc@lythampartners.com
(602) 889-9700
EnSync,
Inc.
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Year ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,650,495
|
|
$
3,050,549
|
|
$
11,932,328
|
|
$
12,494,184
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of product
sales
|
1,584,611
|
|
2,882,600
|
|
9,562,472
|
|
12,586,458
|
Cost of engineering
and development
|
-
|
|
-
|
|
-
|
|
937,725
|
Advanced engineering
and development
|
979,619
|
|
1,336,514
|
|
4,449,974
|
|
4,829,840
|
Selling, general and
administrative
|
2,691,239
|
|
2,777,265
|
|
10,252,674
|
|
11,109,038
|
Depreciation and
amortization
|
49,491
|
|
97,293
|
|
296,417
|
|
551,680
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
447,000
|
|
-
|
Total costs and
expenses
|
5,304,960
|
|
7,093,672
|
|
25,008,537
|
|
30,014,741
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(3,654,465)
|
|
(4,043,123)
|
|
(13,076,209)
|
|
(17,520,557)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Equity in gain (loss)
of investee company
|
77,769
|
|
(46,082)
|
|
(307,674)
|
|
(217,898)
|
Interest
income
|
3,882
|
|
8,225
|
|
23,795
|
|
41,661
|
Interest
expense
|
(7,514)
|
|
(13,255)
|
|
(38,484)
|
|
(50,474)
|
Other income
(loss)
|
(64,003)
|
|
6,973
|
|
74,031
|
|
15,405
|
Gain on termination
of SPI Supply Agreement
|
-
|
|
13,290,000
|
|
-
|
|
13,290,000
|
Total other income
(expense)
|
10,134
|
|
13,245,861
|
|
(248,332)
|
|
13,078,694
|
|
|
|
|
|
|
|
|
Income (loss) before
benefit for income taxes
|
(3,644,331)
|
|
9,202,738
|
|
(13,324,541)
|
|
(4,441,863)
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
-
|
|
-
|
|
-
|
|
-
|
Net income
(loss)
|
(3,644,331)
|
|
9,202,738
|
|
(13,324,541)
|
|
(4,441,863)
|
Net income (loss)
attributable to noncontrolling interest
|
35,237
|
|
81,266
|
|
354,526
|
|
352,327
|
Net income (loss)
attributable to EnSync, Inc.
|
(3,609,094)
|
|
9,284,004
|
|
(12,970,015)
|
|
(4,089,536)
|
Preferred stock
dividend
|
(89,679)
|
|
(81,246)
|
|
(345,810)
|
|
(313,286)
|
Net income (loss)
attributable to common shareholders
|
$
(3,698,773)
|
|
$
9,202,758
|
|
$
(13,315,825)
|
|
$
(4,402,822)
|
|
|
|
|
|
|
|
|
Net income (loss)
per share
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
(0.07)
|
|
$
0.19
|
|
$
(0.24)
|
|
$
(0.09)
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic and diluted
|
56,537,508
|
|
48,675,937
|
|
56,003,019
|
|
48,070,993
|
EnSync,
Inc.
|
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
June
30, 2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,984,532
|
|
$
11,782,962
|
Accounts receivable,
net
|
215,009
|
|
469,906
|
Inventories,
net
|
1,220,448
|
|
2,482,013
|
Costs and estimated
earnings in excess of billings
|
528,266
|
|
87,318
|
Prepaid expenses and
other current assets
|
929,379
|
|
630,998
|
Total current
assets
|
5,877,634
|
|
15,453,197
|
Long-term
assets:
|
|
|
|
Property, plant and
equipment, net
|
775,545
|
|
3,446,253
|
Investment in
investee company
|
1,640,054
|
|
1,947,728
|
Goodwill
|
809,363
|
|
809,363
|
Right of use
assets-operating leases
|
1,087,249
|
|
150,214
|
Other
assets
|
91,087
|
|
7,502
|
Total
assets
|
$
10,280,932
|
|
$
21,814,257
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
-
|
|
$
726,256
|
Accounts
payable
|
1,142,256
|
|
487,185
|
Billings in excess of
costs and estimated earnings
|
176,294
|
|
456,950
|
Accrued
expenses
|
1,236,680
|
|
1,231,714
|
Total current
liabilities
|
2,555,230
|
|
2,902,105
|
Long-term
liabilities:
|
|
|
|
Long-term debt, net
of current maturities
|
331,827
|
|
331,827
|
Deferred
revenue
|
538,937
|
|
422,638
|
Other long-term
liabilities
|
1,072,120
|
|
249,920
|
Total
liabilities
|
4,498,114
|
|
3,906,490
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Series B redeemable
convertible preferred stock ($0.01 par value, $1,000 face value), 3,000 shares authorized and
issued, 2,300 shares outstanding,
preference in liquidation of $5,976,896 and $5,631,086
as of June 30, 2018 and June 30, 2017,
respectively
|
23
|
|
23
|
|
|
|
|
Series C convertible
preferred stock ($0.01 par value, $1,000 face value), 28,048 shares authorized, issued, and
outstanding, preference in
liquidation of $0 and $12,276,682 as of June 30, 2018
and June 30, 2017,
respectively
|
280
|
|
280
|
|
|
|
|
Common stock ($0.01
par value), 300,000,000 authorized, 56,609,115 and 55,200,963 shares issued and
outstanding as of June 30, 2018
and June 30, 2017, respectively
|
1,274,406
|
|
1,260,324
|
Additional paid-in
capital
|
143,008,995
|
|
141,822,317
|
Accumulated
deficit
|
(137,609,659)
|
|
(124,639,644)
|
Accumulated other
comprehensive loss
|
(1,587,702)
|
|
(1,584,578)
|
Total EnSync, Inc.
equity
|
5,086,343
|
|
16,858,722
|
Noncontrolling
interest
|
696,475
|
|
1,049,045
|
Total
equity
|
5,782,818
|
|
17,907,767
|
Total liabilities
and equity
|
$
10,280,932
|
|
$
21,814,257
|
EnSync,
Inc.
|
Consolidated
Statements of Cash Flows
|
|
|
Year ended June
30,
|
|
2018
|
|
2017
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(13,324,541)
|
|
$
(4,441,863)
|
Adjustments to
reconcile net loss to net cash used in
|
|
|
|
operating
activities:
|
|
|
|
Depreciation of
property, plant and equipment
|
288,168
|
|
483,636
|
Amortization of
customer intangible assets
|
8,249
|
|
68,044
|
Stock-based
compensation, net
|
1,142,749
|
|
2,145,765
|
Equity in loss of
investee company
|
307,674
|
|
217,898
|
Provision for
inventory reserve
|
354,000
|
|
182,647
|
Gain on sale of
property, plant and equipment
|
(73,647)
|
|
(1,911)
|
Interest accreted on
note receivable
|
(10,981)
|
|
(12,000)
|
Allowance for note
receivable
|
162,121
|
|
-
|
Gain on termination
of SPI Supply Agreement
|
-
|
|
(13,290,000)
|
Impairment of
long-lived assets
|
447,000
|
|
-
|
Changes in assets and
liabilities
|
|
|
|
Accounts
receivable
|
254,897
|
|
(297,273)
|
Inventories
|
907,565
|
|
(794,718)
|
Costs and estimated
earnings in excess of billings
|
(440,948)
|
|
(87,318)
|
Prepaids and other
current assets
|
(478,119)
|
|
1,756,979
|
Deferred PPA project
costs
|
-
|
|
5,690,307
|
Other
assets
|
(86,360)
|
|
(4,727)
|
Accounts
payable
|
655,071
|
|
(82,041)
|
Billings in excess of
costs and estimated earnings
|
(280,656)
|
|
456,950
|
Accrued
expenses
|
(127,646)
|
|
227,474
|
Deferred
revenue
|
116,299
|
|
422,638
|
Other long-term
liabilities
|
16,793
|
|
145,013
|
Net cash used in
operating activities
|
(10,162,312)
|
|
(7,214,500)
|
Cash flows from
investing activities
|
|
|
|
Expenditures for
property and equipment
|
(288,846)
|
|
(46,366)
|
Proceeds from sale of
property, plant and equipment
|
2,299,017
|
|
8,432
|
Payments from note
receivable
|
20,000
|
|
12,000
|
Net cash provided
by (used in) investing activities
|
2,030,171
|
|
(25,934)
|
Cash flows from
financing activities
|
|
|
|
Repayments of long
term debt
|
(726,256)
|
|
(332,344)
|
Proceeds from
issuance of common stock
|
96,674
|
|
2,095,840
|
Proceeds from the
exercise of stock options
|
-
|
|
69,960
|
Payments of tax
withholding related to stock-based compensation
|
(38,663)
|
|
-
|
Contribution of
capital from noncontrolling interest
|
1,956
|
|
-
|
Net cash provided
by (used in) financing activities
|
(666,289)
|
|
1,833,456
|
Effect of exchange
rate changes on cash and cash equivalents
|
-
|
|
851
|
Net decrease in
cash and cash equivalents
|
(8,798,430)
|
|
(5,406,127)
|
Cash and cash
equivalents - beginning of period
|
11,782,962
|
|
17,189,089
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
2,984,532
|
|
$
11,782,962
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
40,888
|
|
$
51,134
|
Supplemental noncash
information:
|
|
|
|
Right of use asset
obtained in exchange for new operating lease
|
937,035
|
|
122,950
|
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SOURCE EnSync, Inc.