VIASPACE Inc., a clean energy company providing products and technology for renewable and alternative energy, this morning reported its financial results for the third quarter ended September 30, 2009.
Revenues totaled $1.23 million, including $1.06 million from the late-2008 strategic acquisition of Inter-Pacific Arts, Inc. (IPA), and $171,000 primarily from Ionfinity’s military contracts for monitoring and detection systems. Gross profit for the quarter was reported at $473,000, including $455,000 related to IPA. Comparatively, third-quarter 2008 revenues were $99,000 and gross profit was $23,000.
Operating expenses for the quarter declined to $1.05 million from $2.82 million as a result of lower research and development expense and lower selling, general and administrative expense. Stock-based compensation and stock-option expense for the quarter totaled $458,000, compared to $1.32 million in third-quarter 2008.
Operating loss for the quarter narrowed to $574,000 from operating losses of $2.8 million in third-quarter 2008. Net loss for the quarter was $664,000, or $(0.00) per share, compared to a net loss of $3.54 million, or $(0.01) per share for third-quarter 2008.
Consolidated cash and cash equivalents were $1.2 million on September 30, 2009.
VIASPACE Chief Executive Dr. Carl Kukkonen commented, “Third-quarter results continued to reflect the revenue and gross profit contributions from IPA and higher government contract revenues from Ionfinity, our high-tech sensor and monitoring systems subsidiary. During the quarter we made progress in other business areas. For example, our licensed technology related to very-thin fuel cells was patented, which is expected to strengthen our competitive position in the growing market for direct methanol fuel cells to replace traditional batteries in micro applications such as cell phones and laptop computers.”
“With our primary focus on renewable energy, we made significant advances toward material revenues from our subsidiary, VIASPACE Green Energy,” Kukkonen continued. “Supported by our strategy to generate interim cash flows from other operations such as IPA, we continued to develop and expand Giant King(TM) Grass acreage in China, signed an agreement with DP CleanTech, and continued to pursue and develop other business relationships related to the biofuels and biomass markets. And from a competitive standpoint, we saw technical performance and economic advantages of our proprietary Giant King Grass – compared to renewable energy sources now being used – verified by independent testing and analysis, which led to closing our first agreement with DP CleanTech, one of the largest biomass power providers in the world.”
Kukkonen also emphasized the fast-growing and high yield-per-acre characteristics of Giant King Grass, making it a preferred economic alternative to switchgrass and other grasses and plant crops currently being used to replace fossil fuels for energy. As with DP CleanTech, a number of other energy providers are looking to either increase their use of low-carbon renewable sources of energy or add new energy capacity that is completely based on renewable sources.
“As in first and second quarters this year, we expect financial results to continue improving over prior year,” Kukkonen stated. “Based on numerous ongoing meetings with potential customers and partners, we believe that our business path in renewable energy will become more visible in subsequent periods and provide the basis for material revenues and growth in 2010.”
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