SPI Energy Co., Ltd. Reports Unaudited Interim Report for the Six-Month Ended June 30, 2016

Print
| Source: SPI Energy Co., Ltd.

HONG KONG, May 16, 2017 (GLOBE NEWSWIRE) -- SPI Energy Co., Ltd. (“SPI Energy” or the “Company”) (NASDAQ:SPI), a global clean energy market place for business, residential, government and utility customers and investors, today reported its unaudited interim report for the six months ended June 30, 2016.

As previously reported on January 13, 2017, the Company received a letter from Nasdaq stating that the Company was not in compliance with Nasdaq listing rules because the Company had not submitted on a  Form 6-K an interim balance sheet and income statement for the six-month period ended June 30, 2016. In the letter, Nasdaq requested that the Company submit a plan to regain compliance with Nasdaq listing rules within 60 days.

As previously reported on March 20, 2017, the Company submitted to Nasdaq a plan to regain compliance with Nasdaq listing rules and Nasdaq granted an exception to enable the Company to regain compliance, under the condition that the Company must submit its interim balance sheet and income statement for the six-month period ended June 30, 2016 on or before May 15, 2017.

The Company hereby furnishes its Unaudited Condensed Consolidated Statements of Balance Sheet and Unaudited Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2016 (the “Interim Report”) as attached in Exhibit A. Upon filing of Form 6-K, the Company anticipates that it will regain compliance with relevant Nasdaq listing rules solely with respect to its failure to file its Interim Report.

The Company’s Interim Report is prepared and presented in accordance with U.S. GAAP. However, they have not been audited or reviewed by the Company’s independent registered accounting firm. During the course of preparing the Interim Report, the Company noted various significant outstanding and uncertain matters, including but not limited to, its liquidity and ability to continue as a going concern, contingent liabilities arising from litigations, suspected related party transactions and unusual transactions and compliance with laws and regulations. The Company has formulated certain liquidity plan as previously disclosed on its 2015 annual report on Form 20-F. However, the Company cannot assure you that it will be able to successfully execute its liquidity plan. The level of liquidity that the Company needs may be greater than the Company currently anticipates as a result of both general industry and market factors and Company-specific factors, such as global economic slowdown, continued downturn in the global PV market, changes in the regulatory and business environments, and the ongoing dispute with the Company’s investors regarding its Solarbao investment programs. All of these and other factors and occurrences may increase the Company’s cash requirements and make the Company unable to satisfy its liquidity requirements and the Company may, as a result, be unable to continue as a going concern.

The company is preparing and finalizing the Consolidated Financial Statement as of and for the year ended December 31, 2016. Further evidences obtained subsequently during the finalizing process may provide additional information, which may cause the Consolidated Statement of Financial Position and Consolidated Statement of Operation as of and for the six-month period ended June 31, 2016 to be adjusted accordingly. In addition, accounting estimates and assumptions made in preparing the Company’s consolidated financial statements for the financial year ended December 31, 2016 may differ from that used in Interim Report due to the differences in reporting periods and changes in the Company’s financial conditions during those periods. As a result, the Company cannot assure you that its consolidated financial statements as of and for the year ended December 31, 2016 will not contain significant difference, adjustment or discrepancies from its Interim Report. The Company’s historical results do not necessarily indicate results expected for any future periods.

Exhibit A
SPI Energy Co., Ltd. Unaudited Condensed Consolidated Statements of Balance Sheet and Unaudited Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2016.

SPI Energy Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet
(In thousands, except for share and per share data)  
     
   June 30,   December 31,
   2016  2015
     
ASSETS    
Current assets:    
Cash and cash equivalents $31,015  $82,124 
Restricted cash  7,443   83,191 
Accounts receivable, net of allowance for doubtful accounts of $27,810 and $36,553,
respectively
  44,224   73,383 
Accounts receivable, related party  110   - 
Notes receivable  9,680   3,541 
Costs and estimated earnings in excess of billings on uncompleted contracts, net of
allowance for doubtful accounts of $15,655 and nil, respectively
  22,150   32,426 
Inventories, net  15,049   27,245 
Project assets  41,178   35,355 
Prepaid expenses and other current assets  44,034   41,197 
Other receivable, related parties  38   2,589 
Finance lease receivable  15,328   12,518 
Total current assets  230,249     393,569 
Intangible assets  4,409   4,526 
Goodwill  75,969   75,969 
Accounts receivable, noncurrent  7,652   7,463 
Other receivable, noncurrent  550   550 
Notes receivable, noncurrent  5,769   6,399 
Property, plant and equipment, net  124,485   125,793 
Project assets, noncurrent  48,281   60,371 
Derivative asset  -   2,328 
Investment in an affiliate  11,913   13,950 
Deferred tax assets, net  832   848 
Finance lease receivable, noncurrent  39,260   17,804 
Total assets $549,369  $709,570 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $77,420  $97,803 
Accounts payable, related parties  7,723   5,128 
Notes payable  9,073   34,301 
Accrued liabilities  29,252   26,741 
Income taxes payable  3,716   4,002 
Advance from customers  25,656   19,693 
Short term borrowings  94,384   160,400 
Convertible bonds  55,000   54,062 
Other current liabilities, related parties  62   42 
Other current liabilities  36,661   71,379 
Total current liabilities  338,947   473,551 
Financing and capital lease obligations  23,194   8,796 
Long term borrowings  6,081   4,451 
Deferred tax liability, net  4,275   4,199 
Other noncurrent liabilities  42,469   2,015 
Total liabilities    414,966     493,012 
Commitments and contingencies  -   - 
Stockholders’ equity:    
Common stock, par $0.000001, 150,000,000,000 shares authorized, respectively;
641,665,172 and 639,065,172 shares  issued and outstanding, respectively
  64   64 
Additional paid in capital    481,771     475,492 
Accumulated other comprehensive loss  (17,707)  (16,509)
Accumulated deficit  (333,122)  (246,068)
Total equity attributable to the shareholders of the Company    131,006     212,979 
Noncontrolling interests  3,397   3,579 
Total stockholders’ equity    134,403     216,558 
Total liabilities and stockholders’ equity $549,369  $709,570 
     


SPI Energy Co., Ltd.  
Unaudited Condensed Consolidated Statements of Operation 
(In thousands, except for share and per share data)  
     
   For the Six Months Ended
   June 30,
   2016   2015 
Net sales:    
Net sales $65,396  $59,879 
Cost of goods sold:    
Cost of goods sold  (54,856)  (48,954)
Provision for losses on contracts  (396)  (329)
Total cost of goods sold  (55,252)  (49,283)
Gross profit  10,144   10,596 
Operating expenses:    
General and administrative  17,284   49,915 
Sales, marketing and customer service  16,525   12,404 
Provision for doubtful accounts and notes and impairment
changes
  52,560   - 
Total operating expenses  86,369   62,319 
Operating loss  (76,225)  (51,723)
Other income (expense):    
Interest expense  (3,796)  (3,878)
Interest income  830   1,665 
Change in fair value of derivative asset/liability  (2,328)  - 
Loss on investment in affiliates  (6,551)  - 
Net foreign exchange gain  1,309   3,443 
Others  (324)  142 
Total other expense, net  (10,860)  1,372 
Loss before income taxes  (87,085)  (50,351)
Income tax expense  (255)  (1,306)
     
Net loss $(87,340) $(51,657)
Net loss attributable to noncontrolling interests  (286)  (53)
Net loss attributable to stockholders of the Company $(87,054) $(51,604)
Net loss per common share:    
Basic and Diluted  (0.14)  (0.09)
Weighted average number of common shares used in computing per share
amounts:
    
Basic and Diluted    641,457,479     595,100,462 
     

About SPI Energy Co., Ltd.

SPI Energy Co., Ltd. is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the downstream PV market including the development, financing, installation, operation and sale of utility-scale and residential solar power projects in China, Japan, Europe and North America. The Company operates an innovative online energy e-commerce and investment platform, www.solarbao.com, which enables individual and institutional investors to purchase innovative PV-based investment and other products; as well as www.solartao.com, a B2B e-commerce platform offering a range of PV products for both upstream and downstream suppliers and customers. The Company has its operating headquarters in Hong Kong and maintains global operations in Asia, Europe, North America and Australia. For additional information, please visit: www.spisolar.com

Safe Harbor Statement

This release contains certain “forward-looking statements.” These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and the Company undertakes no obligation to update or revise any forward-looking statements, except as may be required under applicable securities law.