May 21, 2015 - 6:00 AM EDT
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Enerpulse Technologies Announces First Quarter Highlights and Results

ALBUQUERQUE, NM--(Marketwired - May 21, 2015) - Enerpulse Technologies (OTCQB: ENPT) manufacturer of Pulstar® spark plugs, announced today its financial results for the first quarter ended March 31, 2015.

First Quarter Highlights

  • Closed $3.05 million senior subordinated convertible notes on February 20, 2015
  • Sales revenue is up in 13% over prior year same period
  • Gross profit is up 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015
  • Margins improved substantially over prior year same period from 6.5% to 48%, due to a number of factors including better utilization of production labor and direct overhead for period ending March 31 2015

Corporate Update for First Quarter Ended March 31, 2015:

"The first quarter marked an important time for Enerpulse Technologies," commented Joe Gonnella, Chief Executive Officer of Enerpulse Technologies. "We successfully completed our private placement and are now able to move forward on a number of fronts and execute our operational strategy."

Mr. Gonnella continued, "We are busy commercializing additional product models to support the Natural Gas vehicular and industrial markets. We are also launching a targeted marketing plan to promote aftermarket growth specific to the highly responsive performance vehicle and motorcycle segments. These successes represent key milestones in generating increased revenue and are central to our continued commitment to move toward profitability in the automotive aftermarket and Natural Gas channels. We also continue to engage automotive and Natural Gas engine OEM's with collaborative testing which will generate greater shareholder value in the long term."

For more information call 888-800-6700 or please visit www.enerpulse.com.

Results for Three Months Ended March 31, 2015:

For the three months ended March 31, 2015, the Company reported revenue of $110 thousand, an increase of 13.2% compared to $97 thousand for the three months ended March 31, 2014. The increase in revenue was, primarily due to the introduction of the Pulstar with PlasmaCore new product line midyear 2014.

The company's gross profit increased by 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015 as a result of the increase in sales offset by decreased costs of sales driven by manufacturing process improvements, improved labor utilization and improved design and operating procedure related to the release of Pulstar with PlasmaCore. The gross profit margin was 47.9% for the three months ended March 31, 2015, which is higher than that of 6.5% for the three months ended March 31, 2014, due primarily to the above factors impacting favorably on March 31, 2015 and transition to new components during the three months ended March 31, 2014.

Our Selling, general and administrative expenses decreased by 10.5% from $698 thousand for the three months ended March 31, 2014 to $625 thousand for the three months ended March 31, 2015. The decrease reflects the efforts by the Company to limit spending until the closing of the February 20, 2015 debt offering.

Cash and cash equivalents totaled $2,238 thousand at March 31, 2015, up from $17 thousand on December 31, 2014. The increase is due to the successful completion of the private placement of senior secured convertible notes on February 20, 2015 and receipt of the associated proceeds.

About ENERPULSE (OTCQB: ENPT)
Enerpulse Technologies, Inc. is a publicly traded company headquartered in Albuquerque, N.M. Founded in 2004; the company develops and manufactures ultra-high performance, low emissions ignition products through the application of pulse power technology. For more information, visit www.enerpulse.com.

Safe Harbor / Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Information provided by the Company such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations, marketing and sales; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including market conditions, risks associated with the cash requirements of our business and other risks detailed from time to time in our filings with the Securities and Exchange Commission, and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

             
             
ENERPULSE TECHNOLOGIES, INC.  
CONSOLIDATED BALANCE SHEETS  
             
             
             
    March 31,     December 31,  
    2015     2014  
    (Unaudited)        
ASSETS                
Current Assets                
  Cash and cash equivalents   $ 2,338,482     $ 17,077  
  Accounts receivable, net     89,613       73,572  
  Inventory, net     311,270       337,297  
  Other current assets     6,250       22,981  
    Total current assets     2,745,615       450,927  
Intangible assets, net of accumulated amortization of $136,748 (2015) and $128,444 (2014)     498,928       483,982  
Property and equipment, net     154,050       173,963  
Other assets     21,699       118,557  
Total assets   $ 3,420,292     $ 1,227,429  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                
Current Liabilities                
  Accounts payable   $ 455,489     $ 554,747  
  Accrued expenses     175,245       135,968  
  Current portion of capital lease obligations     24,737       24,737  
    Total current liabilities     655,471       715,452  
Long-Term Liabilities                
  Capital lease obligations, net of current portion     14,844       20,778  
  Notes payable, net of offering costs and discounts     1,289,799       248,225  
  Warrants liability     952,176       817,250  
      2,256,819       1,086,253  
    Total liabilities     2,912,290       1,801,705  
                 
Commitments and Contingencies                
                 
Stockholders' Equity (Deficit)                
  Preferred stock, 10,000,000 shares authorized; no shares issued and outstanding; $0.001 par value     -       -  
  Common stock, 100,000,000 shares authorized; 14,532,381 and 13,732,381 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively; $0.001 par value     14,533       13,733  
  Additional paid-in capital     27,741,913       26,812,046  
  Note receivable, related party     (204,610 )     (204,100 )
  Accumulated deficit     (27,043,834 )     (27,195,955 )
Total stockholders' equity (deficit)     508,002       (574,276 )
Total liabilities and stockholders' equity (deficit)   $ 3,420,292     $ 1,227,429  
                 
See notes to accompanying unaudited consolidated financial statements.  
                 
                 
             
             
ENERPULSE TECHNOLOGIES, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
             
    Three Months Ended  
    March 31,  
    2015     2014  
                 
                 
Sales   $ 109,958     $ 97,164  
Cost of sales     57,307       90,844  
  Gross profit     52,651       6,320  
Selling, general and administrative expenses     625,264       698,476  
  Loss from operations     (572,613 )     (692,156 )
Other income (expense), net                
  Fair value adjustments of derivative liabilities     762,630       -  
  Other expense, net     (37,896 )     (10,110 )
    Other income (expense), net     724,734       (10,110 )
Net income (loss)   $ 152,121     $ (702,266 )
                 
Net income (loss) per common share (basic and diluted)   $ 0.01     $ (0.08 )
Net income (loss) per puttable common share (basic and diluted)   $ -     $ (0.08 )
                 
Weighted average number of shares outstanding (basic and diluted) - common     13,830,158       8,732,381  
Weighted average number of shares outstanding (basic and diluted) - puttable common    

-
     

131,287
 
                 
See notes to accompanying unaudited consolidated financial statements.  
                 
                 
             
             
ENERPULSE TECHNOLOGIES, INC.  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
             
    Three Months Ended  
    March 31,  
    2015     2014  
Cash Flows From Operating Activities                
  Net income (loss)   $ 152,121     $ (702,266 )
  Adjustments to reconcile net income (loss) to net cash used inoperating activities:                
    Stock-based compensation     18,527       37,050  
    Amortization     8,304       7,196  
    Depreciation     13,803       12,446  
    Amortization of debt discount     63,438       7,908  
    Fair value adjustments of derivative liabilities     (762,630 )     -  
    Interest on note receivable, related party     (510 )     (505 )
    Provision for doubtful accounts     5,093       1,305  
    Provision for obsolete inventory     15,500       -  
    Loss on disposal of equipment     8,000       -  
    Changes in operating assets and liabilities:                
      Accounts receivable     (21,134 )     8,832  
      Inventory     10,527       (21,525 )
      Accounts payable     9,485       363,403  
      Accrued expenses     39,277       (65,009 )
      Other     4,846       3,085  
    Net cash used in operating activities     (435,353 )     (348,080 )
                 
Cash Flows From Investing Activities                
  Purchase of property and equipment     (1,890 )     (7,561 )
  Purchase of intangible assets     (23,250 )     (12,127 )
    Net cash used in investing activities     (25,140 )     (19,688 )
                 
Cash Flows From Financing Activities                
  Payments on deferred equity offering costs     -       (7,938 )
  Proceeds from notes payable, net of offering costs     2,837,832       230,000  
  Payments on capital lease and notes payable     (55,934 )     (1,734 )
    Net cash provided by financing activities     2,781,898       220,328  
Net increase (decrease) in cash and cash equivalents     2,321,405       (147,440 )
Cash and cash equivalents at beginning of period     17,077       281,607  
Cash and cash equivalents at end of period   $ 2,338,482     $ 134,167  
                 
Supplement cash flow information:                
  Cash paid for interest   $ 1,333     $ 2,680  
                 
Noncash investing and financing activities:                
  Warrants issued related to debt offering costs   $ 137,655     $ -  
  Common stock issued related to debt offering costs   $ 160,000     $ -  
  Deferred equity offering costs accrued   $ -     $ 181,568  
                 
                 
See notes to accompanying unaudited consolidated financial statements.                

For further information, contact:
Heather Tausch
Director of Marketing and Communications
505-999-2005
Email Contact


Source: Marketwired (May 21, 2015 - 6:00 AM EDT)

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