The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our unaudited condensed
consolidated financial statements and related notes included in this Quarterly
Report on Form 10-Q and the audited consolidated financial statements and notes
thereto as of and for the year ended
NanoFlex is engaged in the development, commercialization, and licensing of advanced photovoltaic technologies and intellectual property. We have agreements with
Unlike conventional thin film solar, the materials platforms that we have developed and are developing for solar cells are capable of ultrahigh efficiency accessible only by single crystalline inorganic materials such as silicon and gallium arsenide. The technologies we are developing allow the solar energy generating surfaces to be sufficiently flexible to be wrapped around 1 centimeter diameter cylinders without damage or loss of performance. Their ultra-light weight impacts other traditional costs associated with solar such as eliminating the need for costly, complex and robust panel mounts. We believe that these solar energy generating "films" can be used on architectural surfaces, on windows as attractive semi-transparent energy-generating coatings and even paints. Their flexibility allows their application to surfaces such as tents, clothing and other oddly shaped or "mobile" surfaces, including space-borne applications. Finally, the ability to be rolled around cylinders permits compact and low cost transport for deployment at remote sites.
We currently hold exclusive rights to more than 744 issued or pending patents worldwide which cover architecture, processes and materials for flexible, thin-film organic photovoltaic ("OPV") and Gallium Arsenide ("GaAs") technologies. In addition, we have several hundred more patents in process. Some of our technology holdings include foundational concepts in the following areas (many of which are being validated in other labs as indicated by the asterisks).
? Tandem organic solar cell* ? Fullerene acceptors* ? Blocking layers* ? New materials for visible and infrared sensitivity* ? Scalable growth technologies* ? Inverted solar cells* ? Materials for enhanced light collection via multiexciton generation ? Mixed layer and nanocrystalline cells ? Solar paints ? Transparent/semi-transparent cells ? Ultralow cost, ultrahigh efficiency, flexible thin film inorganic cells ? Accelerated and recyclable liftoff process ? Cold-weld bonding of inorganic solar cells to plastic substrates and metal foils
Plan of Operation and Liquidity and Capital Resources
We have made contact with major solar cell and electronics manufacturers world-wide and are finding commercial interest in both our GaAs and OPV technologies. We plan to work closely with those companies interested in our technology solutions, both in our own technology development center, as well as within partner facilities, to develop proof-of-concept prototypes and processes to mitigate commercialization risks and gain early market entry and acceptance.
Although we currently do not have any commitments from third parties to license our technologies or otherwise provide revenue to us, we are aware of several laboratories and commercial suppliers who are exploring and positively validating technologies that we have developed and which are protected by our intellectual property portfolio. These interested parties potentially represent some of our first partners for joint technology development and acceptance into manufacturing production.
A key to reducing the risk to market entry by our partners is for us to qualify our technologies at a manufacturing scale. We believe that the best manner to do this is to develop our own technology development center in
The technology development center can also make us highly competitive to receive government grants to support GaAs and OPV research and development. A second revenue source is in joint development projects with existing solar cell manufacturers. The largest near-term opportunity will be in partnerships exploiting GaAs solar technology with existing GaAs cell manufacturers in the space programs, military operations and other suitable end use. We anticipate that partnerships with one or more of these companies will be supported by the facility, and will result in early revenue opportunities.
We believe that the costs of establishing the facility will be approximately
Our plan of operation is dependent upon our ability to raise additional capital to support our research and development operations. Since our inception, we have raised over
$ 2,700,000 R&D Sponsored Research $ 3,600,000
R&D Operating Expenses (technology development center)
$ 3,600,000General and Administrative $ 4,100,000
There can be no assurance that financing will be available to us to fund our
Results of Operations
For the Three and Six Months Ended
Research and Development Expenses
Research and development expenses for the three months ended
Patent Application and Prosecution Fees
Patent application and prosecution fees consist of the fees due for prosecuting and maintaining our patents and were
Salaries and Related Expenses
Salaries and related expenses were
There was no stock-based compensation for the three and six months ended
Selling, General and Administrative Expenses
Selling, general and administrative expenses, consisting primarily of rent, office supplies, depreciation, workers compensation insurance, medical insurance, postage and shipping, traveling expenses and consulting fees, were
There was no interest expense for the three and six months ended
Loss on Debt Extinguishment
There was no loss on debt extinguishment for the three and six months ended
The net loss for the three months ended
Liquidity and Capital Resources
We are in the process of raising additional funds in order to continue to finance our research, development and commercialize photonic energy conversion technologies utilizing organic semiconductor-based solar cells. The additional funding is expected to consist of private sales of our equity securities. However, there can be no assurance that the additional funds will be available to us when needed, particularly in the current economic environment.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Critical Accounting Policies
There were no changes in our critical accounting policies during the three months ended