TORONTO, ONTARIO -- (Marketwire) -- 01/25/13 -- ZENN Motor Company Inc. (TSX VENTURE: ZNN) ("ZENN" or the "Company"), today announced its audited financial results for the three months and year-ended September 30, 2012. All amounts are expressed in Canadian dollars.
The Company has converted to International Financial Reporting Standards for fiscal 2012.
For the three months and year-ended September 30, 2012, net losses from continuing operations were $350,236 or $0.01 per share and $1,528,425 or $0.04 per share, respectively. For the corresponding periods in the prior year, net losses from continuing operations were $751,558 or $0.02 per share and $4,114,331 or $0.11 per share, respectively.
Losses related to continued operations for the three months and year ended September 30, 2012, decreased by 53% and 63%, respectively, when compared to the same periods in the prior year. The decrease is primarily due to the reduction in headcount, in connection with the restructuring of the Company, which was implemented in May 2011. As a result of the restructuring, the Company incurred severance costs in the prior period of $574,932, which were not applicable in the current period. The Company also incurred legal fees and reimbursement of a Director's expenses totaling $370,486, in the prior period, which were not applicable in the current period.
As of September 30, 2012, the Company had working capital of $1,675,361 and cash including short-term investments, totaling $1,937,592, compared to working capital of $1,095,105 and cash of $1,680,165, respectively, as September 30, 2011.
James Kofman, Chairman and Interim Chief Executive Officer commented, "There were a number of positive developments in fiscal 2012. The Company was able to significantly reduce its cash burn as well as strengthen its position with the new technology agreement to purchase electric energy storage units ("EESU") currently in development, by EEStor, Inc. ("EEStor"). The Company has been able to increase its access to EEStor and its technological developments over the past year through increased frequency of communication and visits by our consultant to EEStor's facilities to observe testing of various states of its technological developments."
Following are some of the highlights of the past fiscal year:
-- The cash burn for continuing operations decreased to $1,078,599 in the current fiscal, from $2,969,910 in the prior fiscal.-- In April 2012, the Company was able to strengthen its capital position through a non-brokered private placement that resulted in gross proceeds of $1,997,500.-- In May 2012, the Company entered into a new technology agreement with EEStor that significantly expanded the Company's exclusive rights to sell EESUs. The entire ZENN team worked to improve the level of interaction with EEStor and was given much deeper access to its technological developments which has resulted in more publicly available information regarding the status of its EESU developments.
Readers are encouraged to read the Company's audited consolidated financial statements for the years ended September 30, 2012 and 2011, the corresponding Management's Discussion and Analysis and the Company's Annual Information Form dated January 24, 2013. All of these documents have been filed and are available for viewing on the Company's profile on SEDAR at www.sedar.com and posted on the Company's website at www.ZENNcars.com.