Balqon Corporation To Restate Financial Statements
HARBOR CITY, Calif.--Balqon Corporation (OTCBB: BLQN), a developer and manufacturer of heavy-duty electric vehicles and electric propulsion systems, today announced that the Audit Committee of its Board of Directors concluded that the Company’s financial statements for the fiscal year ended December 31, 2008 and the fiscal quarters ended June 30, 2008 and September 30, 2008 should no longer be relied upon. The errors in such previously issued financial statements relate to the recording of the value of stock compensation awarded by the Company in June and August 2008 and to the recording of the conversion features and warrants related to the issuance of convertible debt during 2008.
The Company currently estimates that the Company’s reported net loss, net loss per share, additional paid in capital and shareholders’ deficiency will be restated for the year ended December 31, 2008. The following is a summary of the effects of the restatement on the Company’s consolidated financial statements:
|
As Originally
Reported |
Restatement
Adjustments |
As Restated | |||||||||||||
| Six months ended June 30, 2008: | |||||||||||||||
| Net loss | $ | (197,459 | ) | $ | (4,580,309 | ) | $ | (4,777,768 | ) | ||||||
| Net loss per share (basic and diluted) | (0.01 | ) | (0.18 | ) | (0.19 | ) | |||||||||
| Additional paid in capital | 0 | 4,580,309 | 4,580,309 | ||||||||||||
| Shareholders’ deficiency | (285,033 | ) | (4,580,309 | ) | (4,865,342 | ) | |||||||||
| Three months ended September 30, 2008: | |||||||||||||||
| Net loss | $ | (573,735 | ) | $ | (1,422,177 | ) | $ | (1,995,912 | ) | ||||||
| Net loss per share (basic and diluted) | (0.02 | ) | (0.07 | ) | (0.09 | ) | |||||||||
| Additional paid in capital | 0 | 6,234,087 | 6,234,087 | ||||||||||||
| Shareholders’ deficiency | (858,767 | ) | (6,002,486 | ) | (6,861,253 | ) | |||||||||
| Nine months ended September 30, 2008: | |||||||||||||||
| Net loss | $ | (771,193 | ) | $ | (6,002,486 | ) | $ | (6,773,679 | ) | ||||||
| Net loss per share (basic and diluted) | (0.04 | ) | (0.32 | ) | (0.36 | ) | |||||||||
| Additional paid in capital | 0 | 6,234,087 | 6,234,087 | ||||||||||||
| Shareholders’ deficiency | (858,767 | ) | (6,002,486 | ) | (6,861,253 | ) | |||||||||
| Year ended December 31, 2008: | |||||||||||||||
| Net loss | $ | (1,405,821 | ) | $ | (6,234,087 | ) | $ | (7,639,908 | ) | ||||||
| Net loss per share (basic and diluted) | (0.07 | ) | (0.31 | ) | (0.38 | ) | |||||||||
| Additional paid in capital | 2,122,869 | 6,234,087 | 8,356,959 | ||||||||||||
| Shareholders’ deficiency | (1,493,394 | ) | (6,234,087 | ) | (7,727,481 | ) | |||||||||
The Company will file with the Securities and Exchange Commission an amended Form 10-K for the year ended December 31, 2008, and an amended Form 10-Q for the quarterly period ended September 30, 2008. The Company will also file an amendment to its Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2008, which will include restated financial statements.
The Company is in the process of preparing its Form 10-Q for the quarter ended March 31, 2009, which quarterly report is due on or before May 20, 2009. The Company anticipates that it will file its quarterly report on or before May 20, 2009.
