In 2008, sales were $290k, with a cost of goods at $250k resulting in a gross profit of $40k before operating expenses of $254k resulting in a net loss of ($214k).
In 2009 (YTD thru 2nd quarter), sales were $224k, with a cost of goods at $187k resulting in a gross profit of $38k before operating expenses of $166k resulting in a net loss of ($131k). Factoring in the announcement in November 2008 of the introduction of the "Evolution 300" which allegedly will save 33% in cost of goods savings, one could theoretically project the resultant year end optimistic results as follows (I recognize this is just a guess, but we have nothing additional to go on since 3rd quarter financials are delinquent):
2009:
Projected sales = $448k (double 1st 2 quarters)
Projected cost of goods = $312k ($187 + ($187 x (1 - 33%))
Gross Profit = $136k
Operating expenses = $332k ($166k x 2)
Net loss = ($196k)
From the EVSO press releases, it is unclear what the actual volume of sales that were completed across the two years, but by my tally, there was 5.734MW announced in 2008, and 8.5MW announced in 2009 (representing a 33% increase in sales). Therefore, the resultant profit increase is probably overly optimistic, especially in light of the ongoing operating expenses not being trimmed and the addition of personnel and ongoing advertising blitz, resulting in a net loss that may be too optimistic - again just a guess, but probably not too far off.
Issuance of another 2.5 million shares of stock for the 1st 2 quarters of the year to fund ongoing operations does not excite me from a share valuation standpoint. This is probably yet another analysis that could be performed by others, but at the end of the day, penny stocks are primarily about promotion, and not actual financial performance.
