Altair Nanotechnologies, Inc. (Altair), a Canada-based provider of energy storage systems, has reported total revenues of $902,000 for the first quarter of 2009, compared with the total revenues of $1.06 million in the year-ago quarter. It has also reported a net loss of $6.4 million, or $0.07 loss per share, for the first quarter of 2009, compared with the net loss of $8.3 million, or $0.10 loss per share, in the year-ago quarter.
The basic and diluted weighted average shares outstanding for the quarter were 93.0 million, compared to 84.2 million reported in the first quarter of 2008.
Operating expenses of $7.4 million for the first quarter of 2009 were $2.4 million less than the operating expenses of $9.8 million for the first quarter of 2008. The decrease in operating expenses was primarily a result of lower research and development costs associated with the smaller number of grants on which the company is working in 2009, compared to 2008.
The company’s cash and cash equivalents decreased by $6.2 million, from $28.1 million at December 31, 2008, to $21.9 million at March 31, 2009. This is due primarily to net cash used in operations of around $5.3 million which includes the establishment of a restricted cash reserve of $0.5 million to facilitate currency hedge agreements related to inventory purchases denominated in foreign currencies, purchases of property and equipment of around $0.3 million, and the payment of notes payable of $0.6 million. The first quarter 2009 cash consumption of $6.2 million was substantially less than the company’s first quarter 2008 cash consumption of $14.6 million.
Dr. Terry Copeland, Altairnano president and CEO, anticipates the company to benefit directly from the American Reinvestment and Recovery Act and opportunities associated with the Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Smart Grid Investment Grant Program. We are applying for battery manufacturing grants, and we believe the Smart Grid program will accelerate the adoption of advanced energy storage systems such as ours, said Copeland. However, given the grant timelines, and the fact that not all of the program specifics have been announced yet for the Smart Grid grants, we expect it will be at least late third quarter before we see any orders or cash grants associated with these opportunities.
As a result of the substantially deteriorated economic environment during 2008 and thus far in 2009, the company continues to experience a slowing of order placements from its various customers. Orders that the company had expected from the commercial sector have been deferred until later than initially projected and the company’s military business, while all still on track, is similarly experiencing delays.
As payment for achieving certain milestones as specified in its contract with Spectrum Pharmaceuticals, the company is also carrying shares of Spectrum stock with an acquisition price of $1.1 million on its balance sheet. As a result of ongoing analysis of the strength of this stock during the first quarter of 2009, the temporary impairment of $0.8 million that the company had recorded against these securities as of December 31, 2008, was reduced to $0.7 million. Finally the company carried Phoenix MC common stock valued at $106,000 as of December 31, 2007, on its books, which was written down to $18,000 as of December 31, 2008, and has now been completely written off.