Beacon Power Corp. (NASDAQ: BCON) announced its financial results for the fourth quarter and fiscal year ended December 31, 2006. For 2006, the company reported higher losses – $12.3 million, or ($0.21) per share, compared with $9.3 million, or ($0.20) per share for 2005.
Beacon says the increased loss is primarily attributable to a non-cash charge of $2.3 million for stock compensation expense recorded upon the adoption of Statement of Financial Accounting Standards No. 123R (SFAS 123R) during 2006. They also increased spending on research and development of its Smart Energy 25 flywheel.
Still, net cash used in operating activities was lower year over year, from $8.9 million in 2005 to $8.4 million in 2006.
For the fourth quarter, the net loss was $2.9 million, or ($0.04) per share, compared to $3.2 million, or ($0.07) per share for the previous year. This was due to nonrecurring expenses of $1.3 million relating to a proposed acquisition that was terminated, partially offset by increases in stock compensation expense and research and development spending in 2006.
At the end of 2006, Beacon had $5.3 million in cash and cash equivalents, with working capital of $3.3 million. On February 15, 2007, the Company raised an additional $10.6 million by selling approximately 11.8 million shares of common stock and warrants to purchase 5.9 million shares at an exercise price of $1.33 per share. Beacon will use these funds to complete the development of the Smart Energy 25 flywheel and Smart Energy Matrix(TM).
The Company anticipates having its first commercial megawatt of frequency regulation in service in April 2008. The company will need to raise additional equity to execute its business plan and continue as a going concern.
“In 2006 we made significant progress toward our goal of providing commercial frequency regulation services to the nation’s electricity grid,” said Bill Capp, Beacon President and CEO. “In 2007, we expect to complete development of our next-generation flywheel, the Smart Energy 25, which will be the core component of our commercial systems. We also expect to begin ramping up our manufacturing capacity on the Company’s Smart Energy 25 flywheel, in addition completing the design of our 20-megawatt frequency regulation plant and choosing where to build the first facility. In 2008 we expect to begin providing commercial frequency regulation services to the grid.”
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