AccelRate Announces Financial Results for Second Quarter
AccelRate Power Systems announced its financial results for the second quarter ended June 30, 2006. During the three months ended June 30, 2006, AccelRate recognized total revenues of $42,167 CAN from licenses, royalties and sales of battery chargers incorporating AccelRate "high-speed" battery charging technology. Overall, on a year-to-date basis, revenue increased to $156,643 CAN in comparison to none in the first six months of 2005.
Operating expenses for the three months ended June 30, 2006 of $270,396 CAN were lower than the operating expenses for the three months ended June 30, 2005 of $586,985 CAN primarily due to a one-time development fee charge of $244,520 CAN for engineering and design costs for the company's private label brand of battery chargers, as well as reduction in use of outside consultants with more work being performed by in-house staff in 2006. Non-cash costs of $188,215 CAN were also lower than the prior quarter of $210,722 CAN primarily due to a decrease of $30,599 CAN in stock-based compensation due to fewer stock options being granted during the six months ended June 30, 2006 compared to the same period in 2005. The net loss for the three months ended June 30, 2006 was $428,873 CAN compared to $797,707 CAN for the comparative three-month period in 2005.
During the quarter, AccelRate announced that is had passed a key milestone in the development of its "High-Speed" charging for use with advanced lithium-ion batteries. Early test results demonstrated the ability of AccelRate's patented technology to safely reduce the lithium-ion battery's charge time from two hours to less than one-half hour – a decrease of approximately 75% – without detrimental battery temperature escalation. As a result of these landmark results, AccelRate is now reviewing various opportunities to take advantage of the emerging lithium battery market. Further technical analysis, including temperature and lifetime testing will be completed over the coming months. Also during the second quarter, AccelRate announced and completed a non-brokered private placement, raising gross proceeds of $425,000 CAN. Funds raised are being used to provide AccelRate with the working capital needed to operate its business, launch new products and execute its sales and marketing efforts.
"From a business perspective, the company's second quarter activities focused on training our customers on the use of AccelRate technology, understanding their re-order cycles, working with EnerSys on preparation for the European launch of products incorporating our technology, and making contact with potential North American distributors. During the second half of the year we expect to add distributors, build our order book, expand our product lines, and enhance our patent portfolio," stated Reimar Koch, President and CEO of AccelRate Power Systems. "In addition, we look forward with anticipation to the launch of our European partner's (EnerSys) "High-Speed" industrial battery chargers incorporating AccelRate technology, as well as other AccelRate-branded products in the fall of 2006."