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

Financials

v2.4.0.8
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2014
Dec. 31, 2013
Current assets:    
Cash and cash equivalents $ 1,342,015 $ 883,936
Accounts receivable, net of allowance 1,373,657 888,214
Inventories 3,347,011 3,955,515
Prepaid expenses and deposits 199,188 280,140
Total current assets 6,261,871 6,007,805
Property and equipment, net 8,076,012 7,899,486
Goodwill 1,492,132 1,492,132
Intangible assets 570,500 610,000
Total assets 16,400,515 16,009,423
Current liabilities:    
Accounts payable 2,647,693 1,879,760
Accrued liabilities 1,341,988 896,740
Derivative liabilities - 8% convertible promissory notes 10,695,000 17,190,000
Current portion of long term debt 186,635 185,347
Total current liabilities 14,871,316 20,151,847
8% convertible promissory notes, net of discounts 12,444,526 11,030,913
12% revolving credit agreement, net of discounts 1,970,636 1,873,716
4.25% bank term loans 4,400,000 4,400,000
Other debt 236,201 300,127
Fair value of 10% convertible preferred stock warrants 119,703 296,194
Total liabilities 34,042,382 38,052,797
Commitments and contingencies      
10% convertible preferred stock, no par value; authorized 880,000 shares; 694,623 shares issued and outstanding at June 30, 2014 and December 31, 2013, net of discounts 6,946,230 6,724,844
Stockholders' deficit:    
Common stock, no par value; authorized, 250,000,000 shares; 68,197,143 and 31,168,905 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively 51,543,123 30,500,445
Accumulated deficit (76,131,220) (59,268,663)
Total stockholders' deficit (24,588,097) (28,768,218)
Total liabilities and stockholders' deficit $ 16,400,515 $ 16,009,423
v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Revenue $ 4,054,054 $ 1,499,950 $ 8,904,997 $ 3,259,585
Production 5,208,692 1,433,415 10,816,117 2,955,836
Excess capacity & inventory adjustments 994,228 100,799 1,459,894 100,799
Gross margin (loss) (2,148,866) (34,264) (3,371,014) 202,950
Operating expenses:        
Product development and quality management 94,572 250,393 174,054 468,616
Marketing and sales 374,875 256,166 675,586 501,095
General and administrative 20,125,270 766,118 21,105,704 1,484,229
Total operating expenses 20,594,717 1,272,677 21,955,344 2,453,940
Loss from operations (22,743,583) (1,306,941) (25,326,358) (2,250,990)
Other (income) expenses:        
Interest expense 457,974 180,249 841,631 352,653
Amortization of debt discount 422,678 138,137 859,087 282,028
Fair value of common shares issued in excess of fair value of warrants tendered 883,476 0 883,476 0
Change in fair value of derivative liabilities (4,075,518) (5,133,660) (11,047,995) 476,064
Total other (income) (2,311,390) (4,815,274) (8,463,801) 1,110,745
Net (loss) (20,432,193) 3,508,333 (16,862,557) (3,361,735)
Accretion of preferred stock dividends and beneficial conversion feature (184,195) (401,507) (565,378) (812,337)
Net (loss) attributable to common shareholders $ (20,616,388) $ 3,106,826 $ (17,427,935) $ (4,174,072)
Weighted average common shares -        
Basic 37,799,845 29,563,990    
Diluted 37,799,845 58,821,822    
Weighted average common shares - basic and diluted     50,650,392 29,214,965
Net income (loss) per share -        
Basic $ (0.55) $ 0.11    
Diluted $ (0.55) $ 0.06    
Net (loss) per share - basic and diluted     $ (0.34) $ (0.14)
v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flow from operating activities:    
Net (loss) $ (16,862,557) $ (3,361,735)
Adjustments to reconcile net (loss) to net cash used in operating activities:    
Depreciation and amortization 512,916 72,567
Amortization of identifiable intangible assets 39,500 0
Amortization of convertible debt discount 859,086 282,028
Change in fair value of derivative liabilities (10,871,504) 435,424
Change in fair value of 10% convertible preferred stock warrants (176,491) 40,641
Change in allowance for doubtful account 154,280 (131,996)
Interest expense paid in shares of common stock 688,465 0
Share-based compensation 618,594 141,492
Fair value of common stock issued in excess of fair value of warrants tendered 19,957,854 0
Changes in operating assets and liability:    
Accounts receivable (639,723) 67,082
Inventories 608,504 46,718
Prepaid expenses and deposits 80,952 78,486
Accounts payable 767,933 270,064
Accrued liabilities 444,399 146,418
Net cash used in operating activities (3,817,792) (1,912,811)
Cash flows from investing activities:    
Purchase of property and equipment (689,442) (352,708)
Net cash used in investing activities (689,442) (352,708)
Cash flows from financing activities:    
Proceeds from issuance of 8% convertible promissory notes, net 5,027,951 1,750,001
Recovery of shareholder short swing profits 0 3,095,308
Repayments of other debt (62,638) 0
Net cash provided by financing activities 4,965,313 4,845,309
Net increase in cash 458,079 2,579,790
Cash and cash equivalents at beginning of period 883,936 346,905
Cash and cash equivalents at end of period 1,342,015 2,926,695
Supplemental disclosures of cash flow information:    
Cash paid for interest 150,124 1,322
Conversion of 10% convertible preferred stock and debt 0 39,000
Dividends on 10% convertible preferred stock 343,992 356,579
Amortization of 10% convertible preferred stock discount 221,386 455,758
Fair value of warrants issued with 8% convertible promissory notes 391,365 249,151
Fair value of conversion option of 8% convertible promissory notes 3,985,139 545,425
Fair value of common stock issued in exchange for warrants tendered and cancelled $ 24,817,086 $ 0