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DayStar Technologies Inc. Reports Operating Results (10-K)

March 31, 2012 | About:
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10qk

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DayStar Technologies Inc. (DSTI) filed Annual Report for the period ended 2011-12-31.

Daystar Tec Inc has a market cap of $2.8 million; its shares were traded at around $0.22 .
This is the annual revenues and earnings per share of DSTI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DSTI.


Highlight of Business Operations:

Research and development expenses. Research and development expenses were $1,261,435 for the year ended December 31, 2011 compared to $5,519,989 for the year ended December 31, 2010, a decrease of $4,258,554 or 77%. The decrease reflects cost savings measures which resulted in lower costs for personnel, facilities, and materials and supplies, as well as a decrease of $1,337,469 in share based compensation.

Selling, general and administrative expenses. Selling, general and administrative expenses were $2,162,148 for the year ended December 31, 2011 compared to $5,648,406 for the year ended December 31, 2010, a decrease of $3,486,258 or 62%. The decrease in selling, general and administrative expenses was primarily due to cost savings measures, including a reduction in our workforce and outside consultants and professional fees, as well as a decrease of $2,106,320 in share based compensation.

Restructuring. Restructuring expenses were $743,643 for the year ended December 31, 2011 compared to $9,753,642 for the year ended December 31, 2010, a decrease of $9,009,999 or 92%. The restructuring expenses in 2011 resulted from impairment charges on certain equipment, as we have cancelled orders for such equipment and settled the outstanding obligations with the vendors. The settlement amounts of $850,000 which were paid in shares of our common stock were recorded as restructuring expense during the year ended December 31, 2011. These expenses were partially offset by the write-off of certain liabilities during the year. During the year ended December 31, 2010, we recorded restructuring charges of $3,509,763 from the impairment of leasehold improvements and the write-off of non-cash deferred rent, upon closing our Newark, California manufacturing facility. Additionally, we recorded impairment charges of $6,235,644 on certain equipment during the year ended December 31, 2010.

Interest expense. Interest expense was $700,256 for the year ended December 31, 2011 compared to $542,167 for the year ended December 31, 2010, an increase of $158,089 or 29%. The increase in interest expense was due to the increase in our outstanding notes issued in connection with our bridge financing, as well as interest expense on certain outstanding payables at December 31, 2011.

Gain on derivative liabilities. Gain on derivative liabilities was $3,872,352 for the year ended December 31, 2011 compared to $6,593,648 for the year ended December 31, 2010, a decrease of $2,721,296 or 41%. The conversion features on the convertible notes issued in conjunction with our bridge financing are considered derivative liabilities and are therefore required to be adjusted to fair value each quarter. A decrease in our stock price during the period results in a decrease in the liabilities and a gain on derivative liabilities. Conversely, an increase in our stock price during the period would result in an increase in the liabilities and a loss on derivative liabilities. During the years ended December 31, 2011 and 2010, our common stock price decreased which caused a decrease in the fair value of the conversion features and a gain on derivative liabilities. Additionally, in the third quarter of 2010 we restructured all of the then outstanding convertible notes which resulted in an increase in gain on derivative liabilities during the year ended December 31, 2010.

Read the The complete Report

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