Applied Energetics Inc (AERG, Financial) filed Quarterly Report for the period ended 2009-09-30.
APPLIED ENERGETICSINC.based in Tucson Ariz.specializes in development and manufacture of high performance lasershigh voltage electronicsadvanced optical systemsand integrated guided energy systems for defenseaerospaceindustrialand scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy technologyand related solutions for defense and security applications. Applied Energetics Inc has a market cap of $35.43 million; its shares were traded at around $0.4099 with and P/S ratio of 2.13.
Revenue decreased approximately $2.1 million for the three months ended September 30, 2009 compared to the three months ended September 30, 2008, which was attributable to the expected decrease in revenue from the Counter-IED product line of approximately $1.6 million, and from the LGE product line of approximately $700,000. The decreases in these two product lines were offset by an increase in our new Laser product line revenue of $100,000.
General and administrative expenses decreased approximately $564,000 for the three months ended September 30, 2009 compared to the three months ended September 30, 2008. Lower revenues in 2009 caused an increase in general and administrative costs of approximately $973,000 due to applied labor and overhead not being allocated to government contracts. Professional services costs increased by approximately $18,000. Offsetting these increases are reductions in salaries, benefits, and temporary help of approximately $713,000 and non-cash employee compensation costs of approximately $424,000 due to the previously reported restructuring and reductions in force. Additional reductions included recruiting and travel related costs of approximately $191,000 operational expenses of approximately $166,000, and depreciation and amortization costs of approximately $60,000.
Revenue decreased approximately $5.5 million for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008, which was attributable to a decrease in revenue from the Counter-IED product line of approximately $4.1 million, from the LGE product line of approximately $1.2 million, and from a reduction in revenue on the High Voltage product line of approximately $334,000. The decreases in revenues from these three product lines were offset by an increase in our new Laser product line revenue of $116,000.
General and administrative expenses increased by approximately $951,000 for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008. Lower revenues in 2009 caused an increase in general and administrative costs of approximately $2.414 million due to applied labor and overhead not being allocated to government contracts. Professional services increased approximately $129,000 and disposals of equipment and leasehold improvements increased approximately $92,000 in 2009. Offsetting these increases are reductions in non-cash compensation costs of approximately $1.645 million, salaries, benefits, and temporary help of approximately $1.131 million due to the previously reported restructuring and reductions in our workforce, recruiting and travel related costs of approximately $402,000, operational expenses of approximately $261,000, and depreciation and amortization costs of $151,000.
At September 30, 2009, we had approximately $11.8 million of cash and cash equivalents. Our cash position decreased during the first nine months of 2009 by approximately $3.7 million. During the first nine months of 2009, we used $3.5 million of cash in operating activities, which is comprised of our net loss of $7.8 million, plus adjustments in non-cash share-based compensation expense of $1.3 million, depreciation and amortization of $499,000, loss on equipment disposal of $107,000, and the litigation settlement payable in common shares of $1.2 million. Changes in assets and liabilities that provided cash include decreases in accounts receivable of $1.4 million, prepaid expenses and deposits of $386,000, long-term receivables of $253,000, accrued expenses of $68,000, and billings in excess of costs of $20,000. Changes in assets and liabilities that used cash were a decrease in accounts payable of $558,000, and increases in other receivables of $245,000 and inventory of $219,000.
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APPLIED ENERGETICSINC.based in Tucson Ariz.specializes in development and manufacture of high performance lasershigh voltage electronicsadvanced optical systemsand integrated guided energy systems for defenseaerospaceindustrialand scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy technologyand related solutions for defense and security applications. Applied Energetics Inc has a market cap of $35.43 million; its shares were traded at around $0.4099 with and P/S ratio of 2.13.
Highlight of Business Operations:
On July 30, 2009, we received a $992,000 contract (currently funded in the amount of $600,000) for the design, development and delivery of a laser system to the U.S. Navy. We anticipate that the contract will be fully funded at the beginning of 2010, provided that the objectives of the first phase are met, as the government has allocated the full funding amount to the contracting authority. On August 18, 2009, we received a $3.1 million contract from the U.S. Army s Research, Development and Engineering Command for the continued advancement and development of our LGETM technology. The contract is for a period of three years with a potential contract ceiling of $13.4 million.Revenue decreased approximately $2.1 million for the three months ended September 30, 2009 compared to the three months ended September 30, 2008, which was attributable to the expected decrease in revenue from the Counter-IED product line of approximately $1.6 million, and from the LGE product line of approximately $700,000. The decreases in these two product lines were offset by an increase in our new Laser product line revenue of $100,000.
General and administrative expenses decreased approximately $564,000 for the three months ended September 30, 2009 compared to the three months ended September 30, 2008. Lower revenues in 2009 caused an increase in general and administrative costs of approximately $973,000 due to applied labor and overhead not being allocated to government contracts. Professional services costs increased by approximately $18,000. Offsetting these increases are reductions in salaries, benefits, and temporary help of approximately $713,000 and non-cash employee compensation costs of approximately $424,000 due to the previously reported restructuring and reductions in force. Additional reductions included recruiting and travel related costs of approximately $191,000 operational expenses of approximately $166,000, and depreciation and amortization costs of approximately $60,000.
Revenue decreased approximately $5.5 million for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008, which was attributable to a decrease in revenue from the Counter-IED product line of approximately $4.1 million, from the LGE product line of approximately $1.2 million, and from a reduction in revenue on the High Voltage product line of approximately $334,000. The decreases in revenues from these three product lines were offset by an increase in our new Laser product line revenue of $116,000.
General and administrative expenses increased by approximately $951,000 for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008. Lower revenues in 2009 caused an increase in general and administrative costs of approximately $2.414 million due to applied labor and overhead not being allocated to government contracts. Professional services increased approximately $129,000 and disposals of equipment and leasehold improvements increased approximately $92,000 in 2009. Offsetting these increases are reductions in non-cash compensation costs of approximately $1.645 million, salaries, benefits, and temporary help of approximately $1.131 million due to the previously reported restructuring and reductions in our workforce, recruiting and travel related costs of approximately $402,000, operational expenses of approximately $261,000, and depreciation and amortization costs of $151,000.
At September 30, 2009, we had approximately $11.8 million of cash and cash equivalents. Our cash position decreased during the first nine months of 2009 by approximately $3.7 million. During the first nine months of 2009, we used $3.5 million of cash in operating activities, which is comprised of our net loss of $7.8 million, plus adjustments in non-cash share-based compensation expense of $1.3 million, depreciation and amortization of $499,000, loss on equipment disposal of $107,000, and the litigation settlement payable in common shares of $1.2 million. Changes in assets and liabilities that provided cash include decreases in accounts receivable of $1.4 million, prepaid expenses and deposits of $386,000, long-term receivables of $253,000, accrued expenses of $68,000, and billings in excess of costs of $20,000. Changes in assets and liabilities that used cash were a decrease in accounts payable of $558,000, and increases in other receivables of $245,000 and inventory of $219,000.
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