Raser Technologies, Inc. (NYSE Arca: RZ) a company involved in geothermal energy development and electric vehicle drive trains reported $5.4 million net loss for 1Q08, as the company continues to invest in new geothermal energy projects.
The company’s net loss applicable to common stockholders was $5.4 million, or $(0.10) per basic and fully diluted share, in 1Q08 compared to a net loss of $4.6 million, or $(0.09) per basic and fully diluted share, in the first quarter of 2007.
Revenue for the quarter was $130,543, up from $123,763 in 1Q07. Revenue increased over the prior year as a result of completing the ARINC subcontract for the Army that began in October 2006.
Raser’s cash position at the end of the quarter was $21.4 million compared to $5.9 million at the end of the fourth quarter of 2007. This includes gross proceeds of $50 million from an issuance of 8.00% Convertible Senior Notes due 2013 before deducting fees and commissions of $2.0 million, escrowed interest of $7.9 million, $15 million for a prepaid forward common stock repurchase contract and $5.9 million for a call spread option transaction.
On April 1, 2008, the initial purchaser of the Convertible Notes exercised its over-allotment option and Raser sold an additional $5 million aggregate principal amount of Convertible Notes.
Raser continued to execute on its geothermal production strategy, expanding to eight total projects under development, representing 80-85 megawatts (MW) of geothermal power projects initiated since April, 2007. The Company’s projects under development now include three projects in Nevada, three in Utah, one in New Mexico and one in Oregon. The Company now has approximately 225,000 acres of geothermal interests in aggregate.
The Company made progress in its efforts to complete its first geothermal power plants.
The City of Anaheim, California approved two power purchase agreements (PPAs) for two of Raser’s planned geothermal power plants in Utah. Each PPA provides for the delivery by Raser of up to 11 MW.
Raser is currently in various stages of negotiations with several other utilities and municipalities with respect to other agreements to purchase an additional 120 MW of power and expects to complete these agreements in 2008 and 2009.
Raser entered into an agreement with Merrill Lynch for the structuring and financing of up to 155 MW of Raser’s geothermal power plants. The agreement contemplates non-recourse project financing for up to 155 MW of geothermal power projects, including a commitment from Merrill Lynch to provide funding for the construction of a geothermal power plant in Nevada, subject to certain conditions. The plant is designed to produce 10.5 MW of electrical power with zero emissions.
Raser also unveiled components of a new advanced extended-range plug-in series hybrid electric vehicle powertrain and integrated drive system designed for full-size SUVs and pickup trucks in conjunction with our systems integration partner, FEV, at the Society of Automotive Engineers (SAE) World Congress in Detroit, Michigan during April.
About Raser Technologies
Raser is an environmentally-focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s SymetronTM technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning SymetronTM technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.
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