AXION International Sells High-Quality Structural Composite Infrastructure Products in the Global Marketplace

Financials

v3.2.0.727
CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Current assets:    
Cash and cash equivalents $ 426,039 $ 221,437
Accounts receivable, net of allowance 1,466,697 1,109,524
Inventories 6,581,848 5,980,457
Prepaid expenses 366,567 294,053
Total current assets 8,841,151 7,605,471
Property and equipment, net 8,984,094 8,678,932
Goodwill 1,492,132 1,492,132
Total assets 19,317,377 17,776,535
Current liabilities:    
Accounts payable 3,092,689 2,417,803
Accrued liabilities 1,837,278 1,161,120
Customer deposits 803,150 0
Derivative liabilities 176,000 2,053,000
12% convertible promissory notes, net of discounts 1,000,000 965,838
12% revolving credit agreement, net of discounts 2,278,598 1,907,957
12% secured notes 6,394,664 1,950,000
Current portion of long term debt 189,271 187,943
Total current liabilities 15,771,650 10,643,661
8% convertible promissory notes, net of discounts 15,678,065 14,393,746
4.25% bank term loans 4,300,000 4,300,000
5% bank promissory note 4,000,000 4,000,000
Other debt 146,930 191,900
Dividends payable on 10% convertible preferred stock 169,157 143,024
Fair value of 10% convertible preferred stock warrants 121 52,720
Total liabilities $ 40,065,923 $ 33,725,051
Commitments and contingencies    
10% convertible preferred stock, no par value; authorized 880,000 shares; 682,998 shares issued and outstanding at June 30, 2015 and December 31, 2014, net of discounts $ 6,829,980 $ 6,829,980
Stockholders' deficit:    
Common stock, no par value; authorized, 250,000,000 shares; 74,065,254 and 70,825,215 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively 54,387,097 52,780,363
Accumulated deficit (81,965,623) (75,558,859)
Total stockholders' deficit (27,578,526) (22,778,496)
Total liabilities and stockholders' deficit $ 19,317,377 $ 17,776,535
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenue $ 3,478,554 $ 4,054,054 $ 5,771,421 $ 8,904,997
Costs of sales:        
Production 2,934,968 5,208,692 5,384,641 10,816,117
Excess capacity & inventory adjustments 1,389,526 994,228 2,533,986 1,459,894
Gross margin (loss) (845,940) (2,148,866) (2,147,206) (3,371,014)
Operating expenses:        
Product development and quality management 0 94,572 0 174,054
Marketing and sales 128,400 374,875 494,568 675,586
General and administrative 1,514,451 20,125,270 2,823,491 21,105,704
Total operating expenses 1,642,851 20,594,717 3,318,059 21,955,344
Loss from operations (2,488,791) (22,743,583) (5,465,265) (25,326,358)
Other (income) expenses:        
Interest expense 766,371 457,974 1,481,976 841,631
Amortization of debt discount 646,140 422,678 1,389,122 859,087
Fair value of common shares issued in excess of fair value of warrants tendered 0 883,476 0 883,476
Change in fair value of derivative liabilities (415,599) (4,075,518) (1,929,599) (11,047,995)
Total other (income) expense 996,912 (2,311,390) 941,499 (8,463,801)
Net loss (3,485,703) (20,432,193) (6,406,764) (16,862,557)
Accretion of preferred stock dividends (169,157) (184,195) (342,092) (565,378)
Net loss attributable to common shareholders $ (3,654,860) $ (20,616,388) $ (6,748,856) $ (17,427,935)
Weighted average common shares - basic and diluted 74,045,320 37,799,845 73,059,159 50,650,392
Net loss per share - basic and diluted (in dollars per share) $ (0.05) $ (0.55) $ (0.09) $ (0.34)
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flow from operating activities:    
Net loss $ (6,406,764) $ (16,862,557)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 639,304 512,916
Amortization of identifiable intangible assets 0 39,500
Amortization of debt discounts 1,389,122 859,086
Change in fair value of derivative liabilities (1,877,000) (10,871,504)
Change in fair value of 10% convertible preferred stock warrants (52,599) (176,491)
Change in allowance for doubtful accounts 51,534 154,280
Interest expense paid in shares of common stock 693,585 688,465
Share-based compensation 939,282 618,594
Fair value of common stock issued in excess of fair value of warrants tendered 0 19,957,854
Changes in operating assets and liability:    
Accounts receivable (408,707) (639,723)
Inventories (601,391) 608,504
Prepaid expenses and deposits (72,514) 80,952
Accounts payable 674,886 767,933
Accrued liabilities 676,158 444,399
Customer deposits 803,150 0
Net cash used in operating activities (3,551,954) (3,817,792)
Cash flows from investing activities:    
Purchase of property and equipment (944,466) (689,442)
Net cash used in investing activities (944,466) (689,442)
Cash flows from financing activities:    
Proceeds from 12% revolving credit facility 300,000 0
Repayments of other debt (43,642) (62,638)
Net cash provided by financing activities 4,701,022 4,965,313
Net increase in cash 204,602 458,079
Cash and cash equivalents at beginning of period 221,437 883,936
Cash and cash equivalents at end of period 426,039 1,342,015
Supplemental disclosures of cash flow information:    
Cash paid for interest 193,646 150,124
Non-cash investing and financing activities:    
Shares issued in payments of dividends on 10% convertible preferred stock 342,092 343,992
Amortization of 10% convertible preferred stock discount 0 221,386
Fair value of warrants issued with 8% convertible promissory notes 0 391,365
Fair value of conversion option of 8% convertible promissory notes 0 3,985,139
Fair value of common stock issued in exchange for warrants tendered and cancelled 0 24,817,086
8% Convertible promissory note    
Cash flows from financing activities:    
Proceeds from convertible debt 0 5,027,951
12% convertible promissory note    
Cash flows from financing activities:    
Proceeds from convertible debt $ 4,444,664 $ 0