Axion Power International Inc (AXPWQ)

[Ecomike]

Strange that one of the most significant major new players in the new battery tech area has such a quite board here.

Anyway, I just read the latest SEC filling on our bright and oh so promising AXPW, and what I see scares the hell out of me. It shows a change to the financials, and in it I just noticed a "NEW" derivative liability on page 2 added as an update to the previous filed report If I read it correctly, a line item listed as derivative liability for $3,995,056. Also the total stockholders equity since Dec 2008 has dropped from $7,923,691 to $42,487, maybe partly due to recognizing the derivative? It is in the last SEC report just filed.

http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6875289

http://ih.advfn.com/p.php?pid=nmona&cb=1257628430&article=40249483&symbol=NB%5EAXPW

Now maybe they have enough DOE grants (huge grants nearing 80 million dollars total now?) and partners and deals now to weather this, but I suspect they will need to raise cash soon to meet any grant matching fund requirements, meaning more stock to be sold? No telling if the stock price will go up before new shares get issued, but we might see a large pull back in share price afterwards.

I am not sure what to make of it at this point. May need to read to the entire document closer.

I would love to hear others opinions on this.

I went long on this stock back in march-april 2009, but took profits recently in case the stock and market corrected, which they have in part, but this report makes me shy of buying back any time soon. I love the tech, and the company, but it is still loosing money, for now.