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

Financials

v2.4.0.8
CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2014
Dec. 31, 2013
Current assets:    
Cash and cash equivalents $ 2,771,856 $ 883,936
Accounts receivable, net of allowance 1,088,558 888,214
Inventories 4,525,250 3,955,515
Prepaid expenses and deposits 205,212 280,140
Total current assets 8,590,876 6,007,805
Property and equipment, net 8,223,970 7,899,486
Goodwill 1,492,132 1,492,132
Intangible assets 5,000 610,000
Total assets 18,311,978 16,009,423
Current liabilities:    
Accounts payable 1,841,523 1,879,760
Accrued liabilities 1,541,326 896,740
Derivative liabilities - 8% convertible promissory notes 3,983,000 17,190,000
12% convertible promissory notes, net of discounts 881,800 0
Current portion of long term debt 187,287 185,347
Total current liabilities 8,434,936 20,151,847
8% convertible promissory notes, net of discounts 13,677,111 11,030,913
12% revolving credit agreement, net of discounts 1,994,059 1,873,716
4.25% bank term loans 4,400,000 4,400,000
5% bank promissory note 4,000,000 0
Other debt 214,134 300,127
Fair value of 10% convertible preferred stock warrants 52,720 296,194
Total liabilities 32,772,960 38,052,797
Commitments and contingencies      
10% convertible preferred stock, no par value; authorized 880,000 shares; 682,998 and 694,623 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively, net of discounts 6,829,980 6,724,844
Stockholders' deficit:    
Common stock, no par value; authorized, 250,000,000 shares; 69,167,050 and 31,168,905 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively 52,120,356 30,500,445
Accumulated deficit (73,411,318) (59,268,663)
Total stockholders' deficit (21,290,962) (28,768,218)
Total liabilities and stockholders' deficit $ 18,311,978 $ 16,009,423
v2.4.0.8
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Revenue $ 3,122,912 $ 1,272,689 $ 12,027,909 $ 4,532,274
Production 3,902,250 1,189,172 14,718,367 4,145,008
Excess capacity & inventory adjustments 369,806 293,941 1,829,700 394,740
Gross margin (loss) (1,149,144) (210,424) (4,520,158) (7,474)
Operating expenses:        
Product development and quality management 52,219 213,525 226,273 682,141
Marketing and sales 126,047 202,106 801,633 703,201
General and administrative 1,069,672 732,427 22,175,376 2,216,656
Total operating expenses 1,247,938 1,148,058 23,203,282 3,601,998
Loss from operations (2,397,082) (1,358,482) (27,723,440) (3,609,472)
Other (income) expenses:        
Interest expense 478,496 190,318 1,320,127 542,971
Amortization of debt discount 1,196,807 132,497 2,055,894 414,525
Impairment of intangible assets 545,750 0 545,750 0
Fair value of common shares issued in excess of fair value of warrants tendered (54) 0 883,422 0
Change in fair value of derivative liabilities (7,337,983) (730,000) (18,385,978) (253,936)
Total other (income) (5,116,984) (407,185) (13,580,785) 703,560
Net loss 2,719,902 (951,297) (14,142,655) (4,313,032)
Accretion of preferred stock dividends and beneficial conversion feature (152,237) (405,936) (717,615) (1,218,273)
Net income (loss) attributable to common shareholders $ 2,567,665 $ (1,357,233) $ (14,860,270) $ (5,531,305)
Weighted average common shares -        
Basic 69,066,096 30,307,925    
Diluted 127,971,683 30,307,925    
Weighted average common shares - basic and diluted     46,382,952 29,583,289
Net income (loss) per share -        
Basic $ 0.04 $ (0.04)    
Diluted $ 0.02 $ (0.04)    
Net (loss) per share - basic and diluted     $ (0.32) $ (0.19)
v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flow from operating activities:    
Net loss $ (14,142,655) $ (4,313,032)
Adjustments to reconcile net (loss) to net cash used in operating activities:    
Depreciation and amortization 781,232 147,605
Amortization of identifiable intangible assets 59,250 0
Amortization of convertible debt discount 2,055,894 414,525
Change in fair value of derivative liabilities (18,142,504) (294,576)
Change in fair value of 10% convertible preferred stock warrants (243,474) 40,641
Change in allowance for doubtful account 74,025 0
Interest expense paid in shares of common stock 1,069,537 0
Share-based compensation 666,601 142,654
Fair value of common stock issued in excess of fair value of warrants tendered 19,957,800 0
Impairment of intangible assets 545,750 0
Changes in operating assets and liability:    
Accounts receivable (274,369) (246,935)
Inventories (569,735) (536,868)
Prepaid expenses and deposits 74,928 65,265
Accounts payable (38,237) 364,028
Accrued liabilities 675,695 389,743
Net cash used in operating activities (7,450,262) (3,826,950)
Cash flows from investing activities:    
Purchase of property and equipment (1,105,716) (1,165,521)
Net cash used in investing activities (1,105,716) (1,165,521)
Cash flows from financing activities:    
Proceeds from 5% bank term loans 4,000,000 0
Recovery of shareholder short swing profits 0 3,095,308
Repayments of other debt (84,053) 0
Net cash provided by financing activities 10,443,898 5,245,309
Net increase in cash 1,887,920 252,838
Cash and cash equivalents at beginning of period 883,936 346,905
Cash and cash equivalents at end of period 2,771,856 599,743
Supplemental disclosures of cash flow information:    
Cash paid for interest 221,824 1,971
Conversion of 10% convertible preferred stock and debt 116,250 39,000
Dividends on 10% convertible preferred stock 496,229 533,569
Amortization of 10% convertible preferred stock discount 221,386 684,704
Fair value of warrants issued with 8% convertible promissory notes 391,365 249,151
Fair value of conversion option of 8% convertible promissory notes 4,544,139 545,425
Fair value of common stock issued in exchange for warrants tendered and cancelled 24,824,069 0
8% Convertible promissory note
   
Cash flows from financing activities:    
Proceeds from convertible debt 5,527,951 2,150,001
12% convertible promissory note
   
Cash flows from financing activities:    
Proceeds from convertible debt $ 1,000,000 $ 0