The loss included $15.7 million in non-cash losses associated with the issuance of convertible notes, the change in fair market value of compound embedded derivative liability and change in fair value of the warrant liability.
During its initial production run, the company incurred higher than average manufacturing costs which resulted in a negative gross profit of $0.36 million for the fiscal year 2007.
For the fourth quarter of 2007, Solar EnerTech reported total revenue of $4.1 million compared to no revenue in the same period in 2006. The company incurred a negative gross profit of $368,000 for the quarter.
Leo Young, CEO of Solar EnerTech, said: We are pleased with the progress we made in our business during the course of fiscal 2007 and are proud of our accomplishments. Our results for the fourth quarter met our internal plan as we continued to take the appropriate steps to ramp up production and expand capacity.
