DayStar Technologies Inc. (DSTI) filed Quarterly Report for the period ended 2009-09-30.
DayStar Technologies, Inc. has developed a thin-film, copper-indium- gallium-selenide solar cell, known as a CIGS solar cell, for the direct conversion of sunlight into electricity. The company is developing a high- volume manufacturing process that it believes could result in solar electricity power production at commercially viable rates. Daystar Technologies Inc. has a market cap of $12 million; its shares were traded at around $0.3588 with and P/S ratio of 199.7.
Highlight of Business Operations:
Selling, general and administrative expenses. Selling, general and administrative expenses were $2,006,535 for the three months ended September 30, 2009 compared to $2,016,110 for the three months ended September 30, 2008, a decrease of $9,575. The decrease in selling, general and administrative expenses was primarily due to the cost savings measures implemented during the period including a reduction in our workforce as well as a reduction in outside consultants and professional fees. The reduction in cash expenses was offset by an increase of $342,193 in non-cash expenses for share-based compensation during the three months ended September 30, 2009 compared to the same period in 2008.
Research and development expenses. Research and development expenses were $12,164,271 for the nine months ended September 30, 2009 compared to $11,991,015 for the nine months ended September 30, 2008, an increase of $173,256 or 1%. Cost savings measures were implemented during the period including a reduction in our workforce as well as a reduction in expenditures for materials, supplies and consultants. During the nine months ended September 30, 2009, we prioritized our development efforts to focus on our core CIGS technology and related development in order continue to advance our product toward commercialization while we seek additional financing to complete the build-out of our initial production line. Also, in July 2009, we sold substantially all our tangible assets at our Halfmoon, NY facility to Veeco Compound Semiconductor, Inc. (“Veeco”) and Veeco hired the 18 research and development employees located at the facility. This transaction further reduced our research and development expenses during the nine months ended September 30, 2009. The reduction in cash expenses was offset by an increase of $719,431 in non-cash expenses for share-based compensation during the nine months ended September 30, 2009 compared to the same period in 2008.
Selling, general and administrative expenses. Selling, general and administrative expenses were $4,846,650 for the nine months ended September 30, 2009 compared to $6,806,396 for the nine months ended September 30, 2008, a decrease of $1,959,746 or 29%. The decrease in selling, general and administrative expenses was primarily due to the cost savings measures implemented during the period including a reduction in our workforce as well as a reduction in outside consultants and professional fees. We also experienced an increase in share-based compensation expense of $341,848 during the nine months ended September 30, 2009 compared to the same period in 2008.
Depreciation and amortization expenses. Depreciation and amortization expenses were $2,795,026 for the nine months ended September 30, 2009 compared to $2,307,672 for the nine months ended September 30, 2008, an increase of $487,354 or 21%. Depreciation and amortization expense increased primarily due to an increase in equipment utilized in the development of our CIGS PV products and manufacturing processes as well as the leasehold improvements required for our initial manufacturing facility. This increase was offset by a reduction in expense due to the sale of the fixed assets at our Halfmoon, NY facility in July 2009.
At September 30, 2009, our cash and cash equivalents totaled $1.7 million compared to $17.1 million at December 31, 2008. The decrease in cash was primarily due to the payment of operating expenses, payment for certain equipment on order for our initial production line, as well as leasehold improvements completed in our initial manufacturing facility in Newark, California. We are in the development stage, and as such, have historically reported net losses, including a net loss of $20.5 million for the nine months ended September 30, 2009. We anticipate incurring losses in the future, as we complete the build-out of our initial module manufacturing line and enter commercialization of our products, invest in research and development, and incur associated
On August 4, 2009, Gordon Prill filed suit against the Company, the Landlord, and Does 1-250, inclusive in Superior Court of the State of California in Alameda County, CA, alleging breach of written contract, foreclosure on the mechanic’s lien, and statutory penalties under California Civil Code sections 3260 and 3260.1. This action alleges damages in the amount of $1,595,523 and seeks reasonable attorney’s fees and expenses. The damages in this action include the $343,562 in the VPS, Inc. action and the $584,068 in the Sprig Electric Co. action discussed below.
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