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.