Sustainable Energy Technologies: Year End Financial Results
Sustainable Energy Technologies Ltd. announced that it has filed its Consolidated Financial Statements for the Six Months ending March 31 2012 along with Management's Discussion and Analysis thereof. The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR at www.sedar.com and on the Company's website at www.sustainableenergy.com.
Sustainable Energy used 2012 to restructure its operating model to earn revenues through partnerships where its product forms part of a package or product distributed by OEM partners. The change is driven by management's judgment that that greater shareholder value will be created by focusing on well defined high growth market segments where the Company's technology enables unique product solutions which have the potential to take a material share of the segment.
tenKsolar: During 2012 the Company partnered with tenKsolar to create the industry's first fully modular structurally integrated solar PV package enabled by the Company's high efficiency parallel inverter. In Q1 Sustainable Energy entered into licensing and supply agreements with tenKsolar which will contribute a minimum of $5.4 million over the next 12 months with a possible $3 million at the end of the year if tenKsolar exercises its option to buy down Sustainable Energy's revenue sharing. Closing of the License Agreement originally scheduled for December 19, 2012 has been delayed at tenKsolar's request to allow documentation of a shareholder financing to be completed. TenKsolar has paid a $250,000 deposit to secure the License Agreement and closing is pending.
Solar Frontier: During 2012, the Company combined with Solar Frontier America to develop and demonstrate a structurally integrated bundle for Solar Frontier's high efficiency CIS thin film module for residential and small commercial rooftops and building facades. Sustainable Energy believes that the thin film "AC module" enabled by its inverter platform is the single best opportunity to bring high efficiency thin film to the rooftop and building façade market. Based in Japan, Solar Frontier is one of the top three thin film module manufacturers in the world with more than 1 GW of production capacity.
The AC module is only possible with Sustainable Energy's PARALEX inverter. With Japanese certification off the inverter expected later this Quarter (See Product Development) the strategy is to enable a global product offering and to make the PARALEX inverter the "go to" solution to use with all high efficiency thin film modules.
Energy Storage Inverter: During 2012, Sustainable Energy developed and began marketing a smart grid energy storage inverter for emerging German and Japanese residential and small commercial solar energy storage markets.
Low voltage inverters are at the core of lithium ion battery based energy management systems which will be distributed by utilities, major consumer products companies, and solar installers. Sustainable Energy's "AC battery" is the only high efficiency solution in the market and the only product designed from the bottom up to enable a lower cost OEM strategy critical to developers of the energy management systems.
Product Development:During Q4, 2012, the Company submitted their STX inverter platform for certification in North America and Japan. These certifications are on track and when completed Sustainable Energy will have the only low voltage inverter platforms certified for use in Japan, Germany, and North America. The STX platform is designed from the bottom up to enable a highly competitive OEM strategy.
Outlook for 2013
"We believe that the potential for our energy storage inverter will be the single biggest contributor to shareholder value in 2013, commented Michael Carten CEO of Sustainable Energy Technologies. "Grid tied energy storage for residential, and small commercial applications, is a market that is about to break open in Germany and Japan driven by escalating grid prices and falling solar electricity costs. Using Photon International demand forecasts we estimate the value of the market in Germany Japan and the US at more than $6.5B over the next four years."
"In Germany we are already in discussions with the companies which we believe will be the market leaders with a view to embedding our platform in their product design. We are optimistic that we will meet our goal to secure OEM partnerships with companies representing a market share of better than 30%
We believe that success in Germany will lead to success in Japan which is lagging Germany in product development and will position Sustainable Energy's energy storage platform as a market leader."
Product sales revenues from solar in 2013 will be based on expanding the partnerships with Solar Frontier and EECOL that were put in place during Q1 2013. Our goal is to build out the Solar Frontier model in Japan as soon as the STX platform is certified and to partner locally to build a "made in Japan" inverter for this and other applications. We believe that we are able to build out the EECOL model in Canada and extend that model to the US market.
Financial Highlights for the Year Ending September 30, 2012
Net loss and comprehensive Loss: The Net Loss for the year was $5,318,365 compared to $6,692,891 in 2011, a decrease of $1,374,526 (20.5%). Adjusting for non-cash items the Net Loss was reduced by $2,430,655 to $3,031,487 (44.5%) compared to $5,462,142 in 2011.
Cash Flow Used in Operations Cash flow used in operations was reduced 76% to $1,601,842 compared to $6,713,772 in 2011.
Sales Revenues Sales for the year ended September 30, 2012 were $3,313,134 compared to $3,867,910 for the year in 2011 a decrease of 14%. The reduction was attributable almost entirely to the moratorium on new solar projects imposed by the Ontario government immediately following its re-election on October 6 2011 and reduced sales to tenKsolar.
About Sustainable Energy:
Sustainable Energy (www.SustainableEnergy.com) designs and manufactures advanced power electronics for distributed smart grid and micro-grid applications. Advanced power electronics are a critical interface between all distributed generation and storage systems devices, ensuring the delivery of high quality alternating current (AC) to the power grid as well as providing utility control over the interconnection and power quality. Sustainable Energy has designed a simple low cost platform that is software configurable for a wide range of low voltage generation and storage technologies, including solar PV fuel cells and all the emerging battery technologies. The Company's platform is based on breakthroughs in power conversion technology that enable its platform to convert high current/low voltage DC into high quality AC with conversion efficiencies that are materially higher than anything in the market.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the impact of our technology on solar PV system performance; the impact for low voltage energy storage systems; our competitive position for energy storage applications; and the potential for long term revenues.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof.
Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Michael Carten, CEO
Alliance Advisors, LLC
(914) 669-0222 x201