Day Tradexchange Inc. (SYNJ)

[Helter Skelter]

Rainmaker, there isn't a 100 million dollar funding to Clear Energy Fuels. That's a service that CLEAR ENERGY FUELS provides = FUNDING {Grant writing services}. There's no mention of government funding of any sort in their latest 10Q, either {see bottom of post}:

Corporate Profile

– Founded in 1997 as Pickens Fuel Corp
• Became Clean Energy in 2002
– Over 135 employees
– 170+ Stations
– Global headquarters in Seal Beach, CA

Comprehensive Services

– Design, build & operate NG fueling stations
– LNG production & delivery for HDVs
– Grant writing services (over $100 million)
– Vehicle financing

Publicly-traded as CLNE on NASDAQ

http://search.doe.gov/search?q=cache:FT9C0Bwm6kQJ:www.afdc.energy.gov/afdc/pdfs/pratt_nov08.pdf+pickensplan&access=p&output=xml_no_dtd&ie=UTF-8&client=default_frontend&site=doe&proxystylesheet=default_frontend&oe=UTF-8

From 10Q filed 5-11-2009:

Government Incentives

From October 1, 2006 through December 31, 2009, we may receive a Volumetric Excise Tax Credit ("VETC") of $0.50 per gasoline gallon equivalent of CNG and $0.50 per liquid gallon of LNG that we sell as vehicle fuel. Based on the service relationship we have with our customers, either we or our customers are able to claim the credit. We record these tax credits as revenues in our condensed consolidated statements of operations as the credits are fully refundable and do not need to offset tax liabilities to be received. As such, the credits are not deemed income tax credits under SFAS No. 109. In addition, we believe the credits are properly recorded as revenue because we often incorporate the tax credits into our pricing with our customers, thereby lowering the actual price per gallon we charge them. We expect the tax credit will continue to factor into the price we charge our customers for CNG and LNG in the future. The legislation that created this tax credit also increased the federal excise taxes on sales of CNG from $0.061 to $0.183 per gasoline gallon equivalent and on sales of LNG from $0.119 to $0.243 per LNG gallon.

Liquidity and Capital Resources

Historically, our principal sources of liquidity have consisted of cash provided by operations and financing activities, cash and cash equivalents, the issuance of common stock, sometimes in association with the exercise of certain warrants that were callable at our option, and in 2006 a revolving line of credit with Boone Pickens, our majority stockholder. In May 2007, we completed our initial public offering of 10,000,000 shares of common stock at a public offering price of $12.00 per share. Net cash proceeds from the initial public offering were approximately $108.5 million, after deducting underwriting discounts, commissions and offering expenses. On August 15, 2008, in connection with our acquisition of 70% of the membership interests of DCE, we entered into a credit agreement with PlainsCapital Bank pursuant to which we have borrowed $18.0 million under a term loan and an additional $7.8 million (as of March 31, 2009) under a line of credit (see note 10 to the accompanying condensed consolidated financial statements). On September 24, 2008, we sold 319,488 shares of our common stock at a price of $15.65 per share to Boone Pickens Interests, Ltd. for proceeds of approximately $5.0 million. On November 3, 2008, we sold 4,419,192 units of common stock and warrants for $7.92 per unit and we raised net proceeds of approximately $32.5 million after deducting offering costs.

In addition to funding operations, our principal uses of cash have been, and are expected to be, the construction of new fueling stations, the construction of a new LNG liquefaction plant in California, the purchase of new LNG tanker trailers, the financing of natural gas vehicles for our customers, and general corporate purposes, including making deposits to support our derivative activities, geographic expansion (domestically and internationally), expanding our sales and marketing activities, and for working capital for our expansion. We may also seek to acquire companies or assets in the natural gas fueling infrastructure, services and production industries. We financed our operations in the first three months of 2009 primarily through cash on hand.

At March 31, 2009, we had total cash and cash equivalents of $30.9 million, compared to $36.3 million at December 31, 2008.

Cash provided by operating activities was $1.7 million for the three months ended March 31, 2009, compared to cash used in operating activities of $5.7 million for the three months ended March 31, 2008. The increase in operating cash flow resulted primarily from increased collections of accounts and other receivables between periods of $4.2 million and a $4.2 million net return of LNG truck deposits between periods. Offsetting these increases was a $2.4 million increase in accounts payable and accrued expense payments between periods. The remaining changes primarily resulted from changes in working capital balances, which were mostly due to timing differences related to the various cash flows between periods.

Cash used in investing activities was $9.7 million for the three months ended March 31, 2009, compared to $44.8 million for the three months ended March 31, 2008. Our purchases of property and equipment were $9.1 million during the first three months of 2009 compared to $14.8 million for the same period in 2008. We made an additional investment during the first three months of 2009 of $0.6 million in the Vehicle Production Group, LLC, a company developing a CNG taxi and a paratransit vehicle. In the first three months of 2008, we purchased $42.6 million of short-term investments with our initial public offering proceeds from May 2007, of which $12.5 million matured or were sold during the period. We did not have any short-term investments during the first three months of 2009.

Cash provided by financing activities for the three months ended March 31, 2009 was $2.7 million, compared to $62,000 for the three months ended March 31, 2008. In February 2009, we borrowed an additional $3.1 million from PlainsCapital Bank to fund capital expenditures for DCE's landfill plant upgrade. This increase in cash was offset by repayment of capital lease obligations and long-term debt of $0.4 million

Our financial position and liquidity are, and will be, influenced by a variety of factors, including our ability to generate cash flows from operations, deposits and margin calls on our futures positions, the level of any outstanding indebtedness and the interest we are obligated to pay on this indebtedness, our capital expenditure requirements (which consist primarily of station construction, LNG plant construction costs, and the purchase of LNG tanker trailers and equipment) and any merger or acquisition activity.

Capital Expenditures

Our current business plan calls for approximately $20.9 million in additional capital expenditures from April 1, 2009 through the end of 2009, primarily related to construction of new fueling stations. In addition, we anticipate that during the remainder of 2009 we will provide approximately $0.5 million for financing natural gas vehicle purchases by our customers and up to $2.5 million in financing that we may be required to provide to the Vehicle Production Group LLC, a company that is developing CNG paratransit vehicles and taxis. Through May 4, 2009, we have provided our joint-venture subsidiary DCE with approximately $4.4 million in financing under our loan agreement with DCE and we anticipate that we will provide up to approximately $2.9 million in additional loan financing to DCE during the remainder of 2009 for additional capital expenditures and expenses. Financing provided to DCE is not included in our 2009 capital expenditure business plan as we anticipate that we will fund all additional financing we provide to DCE through our $12.0 million Facility B loan with PlainsCapital Bank, which has approximately $4.2 million in remaining available credit as of May 4, 2009. We intend to fund our principal liquidity requirements, other than our loan to DCE, through cash and cash equivalents and cash provided by operations; however, we may pursue station construction opportunities that are not currently under contract or in our 2009 capital expenditure plan or seek to acquire or invest in companies or assets in the natural gas fueling infrastructure, services and production industries. We may also decide to invest in expanding our California LNG plant or other LNG production assets. We anticipate that we will seek to raise additional capital during 2009 to provide funding for any such acquisitions, strategic transactions, increases in station construction activity, expansion of our California LNG plant or other unanticipated capital expenditures. Due to the continuing disruption in the capital markets, we may not be able to raise capital on terms that are favorable to existing stockholders or at all. Any inability to raise capital may impair our ability to invest in new stations, develop natural gas fueling infrastructure and invest in strategic transactions or acquisitions and reduce our ability to invest in our business and generate increased revenues.

Our credit agreement with PlainsCapital Bank requires that we comply with certain covenants, as detailed in footnote 10 of our condensed consolidated financial statements contained elsewhere herein. One of the covenants requires that we maintain accounts receivable balances from certain subsidiaries above $8.0 million at each quarter-end during the term. To the extent natural gas prices continue to fall, which would result in decreased revenues, or our volumes sold decline, we could violate this covenant in the future. Also, beginning with the quarter ending June 30, 2009, we are required to maintain a debt service ratio, as defined, of 1.5 to 1. Should our operating results not materialize as planned, we could violate this covenant in the future. If we were to violate a covenant, we would seek a waiver from the bank, which the bank is not obligated to grant. If the bank does not grant a waiver, all of the obligations under the credit agreement will become immediately due and payable and $2.5 million of our funds held by PlainsCapital Bank would be applied to the balance due on the PlainsCapital Bank loans. We also would be unable to use the PlainsCapital line of credit to fund our loan to DCE if this were to occur. We were in compliance with all of the covenants as of March 31, 2009.

http://www.sec.gov/Archives/edgar/data/1368265/000104746909005335/a2192871z10-q.htm