VIASPACE Inc., a clean energy company focused on providing products and technology for renewable and alternative energy, today reported its financial results for the fourth-quarter and year ended December 31, 2010.
Fourth quarter 2010 total revenues were reported at $1,040,000, up more than 22% from the $851,000 that was reported for the same period in 2009. Cost of revenues totaled $752,000 in Q4 2010, compared to $541,000 in Q4 2009. Gross profit for the quarter was $288,000, compared to gross profit of $310,000 a year earlier.
Total operating expenses for the quarter were $922,000, including $860,000 of selling, general and administrative (SG&A) expense and $62,000 for operations. SG&A included $420,000 in stock-based compensation. Total operating expenses for fourth-quarter 2009 were $1,068,000 and included $1,062,000 in SG&A and $6,000 for operations. SG&A in 2009 included $345,000 in stock-based compensation. Operating loss totaled $634,000, compared to an operating loss of $758,000 in fourth-quarter 2009.
Net loss for the fourth-quarter of 2010 was $657,000, significantly lower than the $839,000 reported for the fourth-quarter of 2009.
Total revenue for the full year of 2010 was $3,643,000. This compares to total revenue of $4,376,000 in 2009. For 2010, cost of revenues was $2,634,000, compared to $2,686,000 in 2009. Gross profit for 2010 was $1,009,000, compared to gross profit of $1,690,000 for 2009.
Total operating expenses for 2010 were $3,828,000, including $3,650,000 of selling, general and administrative (SG&A) expense and $178,000 for operations. SG&A included $1,690,000 in stock-based compensation. Total operating expenses for 2009 were $4,417,000 and included $4,387,000 in SG&A and $30,000 for operations. SG&A in 2009 included $1,784,000 in stock-based compensation. Operating loss for 2010 was $2,819,000, compared to an operating loss of $2,727,000 in 2009.
Net loss for the full year was $2,833,000 compared to $2,909,000 in the year prior.
VIASPACE Chief Executive Dr. Carl Kukkonen commented, “IPA artwork sales for fourth-quarter 2010 were 48% higher than fourth-quarter 2009. We also have previously announced that IPA revenues for the first six months of 2011 are expected to be at least $2.76 million –100% higher– compared with $1.38 million in 2010. Our strategy to reduce costs while maintaining quality resulted in lower operating costs for the fourth-quarter compared to 2009 levels. I was at IPA in January during a customer product inspection and they stated that our quality is excellent. The business of our retail customers in the US is slowly improving, and their satisfaction with our pricing and high-quality is leading to significant new orders. VIASPACE is committed to growing our framed art business.”
“Our strong focus for growth remains on Giant King Grass with its high yield and low cost which we believe will play an important role in the global biomass electricity and biofuels future,” he added.
In today’s press release, VIASPACE also told investors that it signed a Memorandum of Understanding (MOU) with PT Provident Agro of Jakarta Indonesia with the goal of using Giant King Grass as feedstock for a large scale pellet mill to manufacture a minimum of 300,000 metric tonnes per year of pellets for the export market, primarily in Europe. Provident Agro owns extensive oil palm plantations and land in Sumatra, Kalimantan and Sulawesi, Indonesia with a total land bank of 150,000 hectares (370,000 acres) producing more than 23,500 tons of crude palm oil each year. VIASPACE also signed an MOU with General Biofuels, potentially resulting in an exclusive agreement to develop a large Giant King Grass plantation and a 250,000 to 400,000 tonne per year biomass pellet plant in the Dominican Republic.
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