Electro Energy Inc. announced third quarter results for the period ended September 30, 2006. The company reported consolidated net revenue of $1,238,173, a 26.1% increase compared to revenue of $981,875 for the year earlier period. For the nine months ended September 30, 2006, revenue increased 15.9% to $3,231,452 compared to $2,789,154 for the same period in 2005.
Gross loss for the 2006 third quarter was reduced 84.6% to $21,616 compared to $138,481 in the three months ended September 2005. Gross loss for the nine-month period ended September 30, 2006 was $369,711 compared to a loss of $658,790 for the same period in 2005. Operating loss for the 2006 third quarter was $1,259,612 compared to $712,245 in the 2005 third quarter. Nine-month operating loss for 2006 was $3,251,094 compared to a loss of $2,628,492 for the same period in 2005.
Net loss for the third quarter of 2006 was $1,391,806 or $0.06 loss per share, compared to a loss of $710,280 or $0.05 loss per share for the same period in 2005. The 2006 nine-month net loss was $3,679,233 or $0.18 loss per share compared to a net loss of $2,615,243 or $0.19 loss per share for the same period in 2005. Adoption of SFAS 123 for stock-based compensation resulted in a non-cash expense of $247,084 in the third quarter and $756,793 for nine-months of 2006. There was no SFAS expense in 2005.
The net loss for the third quarter also included expenses in connection with the company's preparation for manufacturing operation of its Gainesville, Florida facility and increased research and development expenses associated with the company applying its proprietary bipolar nickel metal hydride batteries to hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) in the automotive market, and bipolar lithium ion for advanced military applications.
The company ended the third quarter with approximately $5.1 million in cash and cash equivalents plus an additional $2.5 million in restricted cash for payment of debt obligations over the next six quarters.
