Solar3D, Inc. (OTCMKTS:SLTD) Files Quarterly Report, Grinds To a Halt
Last week saw Solar3D, Inc. (OTCMKTS:SLTD) shoot up on the news that it had finalized its plan to expand into Nevada through its SUNworks division and will begin operations in early 2015. The ticker’s ascent didn’t last long, however – SLTD‘s latest financial report hit the after the Nov. 10 session and the investor’s reaction to the numbers in it were less than stellar.
True, the announcement that SLTD has signed a definitive purchase agreement to acquire 100% of MD Energy, LLC, a Rancho Cucamonga, California-based solar systems provider is excellent news. SLTD was made operational through the acquisition of SUNworks, and that agreement has done a lot of good for the company. This fact gave investors hope that SLTD may soon be in a better financial position.
Said hope was more or less snuffed out by SLTD‘s balance sheets for Q3 2014:
- Cash – $1.28 million
- Current assets – $4.4 million
- Total assets – $7.08 million
- Current liabilities – $17.76 million
- Quarterly revenues – $6.43 million
- Quarterly net loss – $13.76 million
As it is, SLTD is making revenues, and it does look like it has the cash to fund its operations and the assets to carry them out. Additionally, the huge net loss is mostly attributable to change in fair value of derivative liability, so things there aren’t as bad as they may seem at first glance.
The thing seems to have scared most investors is the number filed under current liabilities – $17.76 million. That’s a staggering amount of debt, for a company that has little over a million dollars in the bank.
With this in mind, the possibility of SLTD suffering a protracted run in the red because it is being dragged down by crushing debt suddenly appears very real.
