Axion Power year-end results for 2011 show hybrid focus still strong
Subsequent to year-end, on February 3, 2012, Axion completed a registered-direct offering of common stock that provided $8.6 million of new financing that will be used for working capital and for general corporate purposes. It is important to keep this new financing in mind when studying the financial statements for December 31, 2011.
While Axion Power International, Inc. (OTCBB: AXPW) has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries, it is clear that Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Unfortunately, the latest news release about year-end results for 2011 indicates that results have yet to create a profitable situation. Axion Power, the developer of advanced lead-carbon PbC® batteries and energy storage systems, today announced results for its fourth quarter and year ended December 31, 2011.
Net product sales increased to $7.6 million in 2011 from $1.3 million in 2010. Net product sales increased in 2011 compared to 2010 primarily due to the sale of $ 6.4 million of specialty lead-acid batteries to a single customer who will sell these batteries under their brand, as well as carry the cost of inventory and provide the raw materials for production of these batteries.