Sustainable Energy Technologies Ltd. (TSX VENTURE:STG), a developer of power electronics for the alternative energy industry, reported its financial and operating results for the fiscal year ended September 30, 2004.
The net loss for 2004 was ($798,716), by comparison to a loss of ($3,026,555) in 2003. Revenue for 2004 was $1,687,793, by comparison to $384,985 in 2003. Of this, $1,283,641 came from the restructuring of long-term liabilities to RWE Piller GmbH.
Liquidity, as measured by working capital, increased by $657,577 to $400,659 as of September 30, 2004. Subsequent to the year-end, Sustainable Energy completed an equity issue to raise net proceeds of $1,661,000.
During 2004, the Company:
– Completed the development of its SUNERGY product series for the-grid connected solar power market. The Company submitted the SUNERGY inverter to Underwriters Laboratories (“UL”) for certification in the North American market – UL certification is a precondition to commercial sales. Although UL certification of the inverter has not yet been issued, the inverter has been passing all the tests to which it has been submitted, including thermal performance and safety ratings, and anti-islanding regulations. Also, an industrial prototype of the SUNERGY inverter has been operating for several months at the University of Toronto with excellent operating performance.
– Successfully demonstrated its fuel cell inverter in the field as part of two different fuel cell systems, meeting the grid interconnection standards in Japan, Europe, and North America. Product sales revenues to the fuel cell sector increased from $70,969 in 2003 to $381,556 in 2004. Although relatively modest amounts in total, this reflects the early stage of industry development.
– Restructured its relationships with the RWE Group of Companies, replacing RWE Piller GmbH, as the supplier of inverters to the RWE fuel cell program, and eliminating long-term liabilities to RWE Piller, totaling $1,283,641.
– Met key technical milestones demonstrating the “universal” nature of its power electronics platform – a single power electronics platform, which will support for multiple technologies and product applications in 1 kW to 7.5 kW power ratings. A “universal” platform enables rapid prototyping and higher volume purchasing of core components for smaller “niche” markets.
During the fiscal year, and shortly thereafter, the Company also raised a total of $2.1 million using innovative flow through structures that enabled investors to deduct costs incurred by the Company in commercializing and developing markets for its products.
“We believe that we have positioned the Company to be a contender in both the fuel cell and solar power sector,” said Michael Carten President & CEO. “We are highly confident that we are a market leader in the stationary fuel cell sector at lower power ratings. We believe that we have the highest electrical conversion efficiencies in the industry (95% peak and 94% full load), and our cost structure will enable us to meet this industry’s very aggressive cost targets in higher volumes. In addition to high electrical conversion efficiencies, our SUNERGY series has the industry’s highest thermal rating.
“Our main goal for 2005 is to generate product sales revenues from the SUNERGY inverter. This may come as much or more from Europe, as North America, and we are targeting one or more partnerships with European companies to manufacture and distribute the inverter there, with commercial production beginning this summer.
“On the fuel cell side, we intend to devote resources to establishing a position in Asia with one or more of the consortia that are developing grid-connected fuel cell power modules. We expect that this market will commercialize much more quickly than Europe or North America. We are already engaged with several large players, which have expressed an interest in products with power ratings from 1kW to 6kW”
“In terms of product development we will focus on expanding the universality of the power electronics circuits for additional applications; optimizing the selection and integration of transformers and other magnetics for enhanced performance, and continuous cost reduction.”
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