Welcome!

News Feed Item

Enerpulse Technologies Announces Second Quarter Highlights and Results

ALBUQUERQUE, N.M., Aug. 15, 2014 /PRNewswire/ -- Enerpulse Technologies, Inc. (OTCQX: ENPT) developer and manufacturer of ultra-high performance, low emissions ignition products through the application of its proprietary Nano-Plasma Assisted Combustion (n-PAC™) technology announced today its financial results for the second quarter ended June 30, 2014. 

Second Quarter Highlights

  • Commenced trading on the OTCQX after the successful completion of an initial public offering of its common shares, receiving $4.0 million in gross proceeds
  • Launched its new Pulstar with PlasmaCore Spark Plug- product line, providing the aftermarket with the next generation of its popular upgrade to conventional spark plugs
  • Al Unser Jr., two time winner of the Indianapolis 500, joined the company as its Pulstar®Spark Plug's Performance Expert

Corporate Update for Second Quarter Ended June 30, 2014:

"The second quarter marked a pivotal time for Enerpulse Technologies," commented Joe Gonnella, Chief Executive Officer of Enerpulse Technologies, "We successfully completed our IPO and began trading on the OTCQX; and, we're thrilled to announce that, not only did Al Unser Jr. join the Enerpulse team as our Performance Expert, he also returned to the winner's circle on June 8th at the legendary Indianapolis Motor Speedway in the Indy Legends Pro-Am Race, running with Pulstar Spark Plugs."

Mr. Gonnella continued, "We were also very busy with introducing the next generation of Pulstar Spark Plugs to our growing legion of aftermarket customers by launching a comprehensive marketing plan to promote aftermarket growth. This is a key milestone in generating increased aftermarket revenue and part of our continued plan to generate greater shareholder value in the longer term."

"We are energized and focused on continuing to execute on our strategic business plan and making the transition from the R&D stage to profitability; and, we continue to be very excited about the opportunities in front of us."

Results for Second Quarter Ended June 30, 2014:

For the second quarter ended June 30, 2014, the Company reported revenue of $93,000, a decrease of 17.7% compared to $113,000 for the second quarter of 2013.  The decrease in revenue was the direct result of a number of one-time factors, including the lifting of old Pulstar product in the company's existing distribution network to make room for new Pulstar with PlasmaCore products and new product launch delays due to the longer than anticipated timing of the company's public offering and funding.

Q2 2014 gross profit was slightly lower at $10,200, compared to $10,700 for Q2 2013, while gross profit margin was slightly higher at 11% in Q2 2014, compared to 9.5% for the second quarter of 2013.

Our selling, general and administrative expenses increased by 41.4% from $756,000 for the three months ended June 30, 2013 to $1,068,000 for the three months ended June 30, 2014, primarily as a result of the re-pricing and accelerated vesting of outstanding stock options to purchase approximately 676,000 shares of our common stock previously granted to officers, directors, employees and consultants, which resulted in additional stock-based compensation of approximately $32,000, as well as approximately $293,000 associated with accelerating the unvested stock-based awards granted prior to that date.

Cash and cash equivalents totaled $1,900,000 at June 30, 2014, up from $282,000 on December 31, 2013. The increase is due to the successful completion of the company's public offering in May 2014 and receipt of the associated proceeds.

FORWARD LOOKING STATEMENTS:
This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements include statements regarding profitability, shareholder value, future growth and the expected impact of our products on the marketplace.  These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ significantly from those described in the forward looking statements.  Factors that may cause such a difference include the following: 1) we have limited capital and a history of losses, limiting our ability to respond to unexpected delays in product introduction or in generating revenue; 2) product development is subject to various risks and uncertainties, including engineering challenges as well as the potential need to adjust the features of a product to address market demand, which could delay an introduction on a timely basis; 3) the success of our new products depends on a number of factors including market acceptance and our ability to manage the risks associated with new product introduction and developing and marketing new versions of the product; and 4) other factors, including those set forth under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2013, and in other documents we have filed with the SEC.

About ENERPULSE (OTCQX: ENPT)

Enerpulse Technologies, Inc. is a publicly traded company headquartered in Albuquerque, N.M. Founded in 2004; the company develops and manufactures ultra-high performance, low emissions ignition products through the application of Nano-Plasma Assisted Combustion (n-PAC™). For more information, visit www.enerpulse.com.

 

ENERPULSE TECHNOLOGIES, INC.

CONSOLIDATED BALANCE SHEETS





June 30,


December 31,





2014


2013





(Unaudited)



ASSETS







Current Assets







Cash and cash equivalents

$

1,879,583


$

281,607


Accounts receivable, net


55,234



92,960


Inventory, net


323,554



299,383


Other current assets


-



3,085



Total current assets


2,258,371



677,035

Intangible assets, net of accumulated amortization of $111,017 (2014) and $96,287 (2013)


414,434



387,947

Property and equipment, net


171,161



150,586

Other assets


8,848



162,896

Total assets

$

2,852,814


$

1,378,464










LIABILITIES AND STOCKHOLDERS' EQUITY






Current Liabilities







Accounts payable

$

308,718


$

450,646


Accrued expenses


164,300



253,013


Current portion of capital lease obligations


13,805



7,377



Total current liabilities


486,823



711,036

Long-Term Liabilities







Capital lease obligations, net of current portion


18,946



8,672


Notes payable


166,271



166,271


Warrants liability


860,786



-






1,046,003



174,943



Total liabilities


1,532,826



885,979










Commitments and Contingencies















Puttable Common Stock, 131,287 shares outstanding, $0.001 par value


300,000



393,780










Stockholders' Equity







Preferred stock, 10,000,000 shares authorized; no shares issued and outstanding; $0.001 par value


-



-


Common stock, 100,000,000 shares authorized; 13,732,381 and 8,732,381 shares issued and outstanding at
   June 30, 2014 and December 31, 2013, respectively; $0.001 par value


13,733



8,733


Additional paid-in capital


26,744,063



23,659,588


Note receivable, related party


(203,083)



(202,072)


Accumulated deficit


(25,534,725)



(23,367,544)

Total stockholders' equity


1,019,988



98,705

Total liabilities and stockholders' equity

$

2,852,814


$

1,378,464










 


ENERPULSE TECHNOLOGIES, INC.












CONSOLIDATED STATEMENTS OF OPERATIONS












(Unaudited)































Three Months Ended


Six Months Ended





June 30,


June 30,





2014


2013


2014


2013



























Sales



$

93,365


$

113,094


$

190,529


$

275,998

Cost of sales


83,150



102,424



173,994



206,485


Gross profit


10,215



10,670



16,535



69,513

Selling, general and administrative expenses


1,068,931



756,216



1,767,407



1,502,060


Loss from operations


(1,058,716)



(745,546)



(1,750,872)



(1,432,547)

Other expense


(406,199)



(6,771)



(416,309)



(12,064)
















Net loss


$

(1,464,915)


$

(752,317)


$

(2,167,181)


$

(1,444,611)
















Net loss per common share (basic and diluted)

$

(0.13)


$

(0.10)


$

(0.22)


$

(0.19)

Net loss per puttable common share (basic and diluted)

$

(0.13)


$

-


$

(0.22)


$

-
















Weighted average number of shares outstanding (basic and diluted) - common


10,930,183



7,646,781



9,837,353



7,422,094

Weighted average number of shares outstanding (basic and













 diluted) - puttable common


131,287



-



131,287



-

 

 


ENERPULSE TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS










Six Months Ended June 30,










2014



2013










Cash Flows From Operating Activities







Net loss

$

(2,167,181)


$

(1,444,611)


Adjustments to reconcile net loss to net cash used in








operating activities:









Stock-based compensation


399,192



10,000




Amortization 


14,730



11,851




Depreciation 


25,542



40,933




Amortization of warrants on notes payable


52,005



-




Loss on modification of derivative liabilities


31,356



-




Fair value adjustments of derivative instruments


322,733



-




Interest on note receivable, related party


(1,011)



-




Provision for doubtful accounts


2,210



-




Changes in operating assets and liabilities:





-




Accounts receivable


35,516



28,336




Inventory


(24,171)



(37,150)




Accounts payable


(141,928)



(108,022)




Accrued expenses


(436)



(225,405)




Other


3,085



107,026



 Net cash used in operating activities


(1,448,358)



(1,617,042)










Cash Flows From Investing Activities







Purchase of property and equipment


(24,522)



(1,861)


Purchase of intangible assets


(41,217)



(47,323)



 Net cash used in investing activities


(65,739)



(49,184)










Cash Flows From Financing Activities







Proceeds from issuance of common stock and related warrants, net of offering costs


3,116,966



1,010,000


Proceeds from notes payable


230,000



-


Payments on capital lease and notes payable


(234,893)



(90,845)



 Net cash provided by financing activities


3,112,073



919,155

Net increase (decrease) in cash and cash equivalents


1,597,976



(747,071)

Cash and cash equivalents at beginning of year


281,607



1,116,870

Cash and cash equivalents at end of year

$

1,879,583


$

369,799










Supplement cash flow information:







Cash paid for interest

$

11,294


$

12,064










Noncash investing and financing activities:







Warrants issued related to offering costs

$

119,570


$

-


Adjustment resulting from change in value of puttable common stock

$

93,780


$

-


Equipment acquired under capital lease

$

21,595


$

-

 

 

  

SOURCE Enerpulse Technologies, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...