- License Income from operations doubled versus 1st half 2015
- Losses reduced to CHF 1.1 million from CHF 1.4 million
- Most losses due to one-time asset write-downs
- Significantly improved Sales and Earnings for 2016 foreseen
Zug/Switzerland, 06.June 2016 – iQ Power Licensing AG (ISIN: CH00268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the results for the 2nd half of 2015 and full year 2015.
Financial Results 2015
Due to the new corporate structure, the financial reporting and accounting regulations have changed. This makes comparisons difficult for this year especially. Next year comparisons will then return to normal.
Revenues from operations improved in the second half of 2015 from CHF 0.1 million to CHF 0.2 million with a total of CHF 0.3 million for the full year 2015, as the Korean facility used up the old iQ parts inventories and began ordering the new iQP-2 parts. The amount for the 2nd half was reduced by CHF 0,05 million due to the financial restructuring. For the year, sales decreased from CHF 1.0 million (2014) to only CHF 0.3 million in 2015, mainly due to the one-time license payment in 2014. However, sales revenue could have been much more but major customers held back sales awaiting the re-start in Korea. The delay was prolonged due to the lack of a full product program.
The loss in the second half of 2015 showed an improvement over the first half of 2015 from minus CHF 1.4 million to minus CHF 1.1 million. The operating loss was only CHF 0.5 million, which is in line with the low revenues recorded. One-time write-downs accounted for the additional CHF 0.6 million loss: Write-downs of 0.4 million were for receivables and valuation of assets in iQ Power Asia, which were necessary as part of the re-structuring program. An additional write-down of CHF 0.2 million was required by the financial accounting rules for the investment in the small stationary battery company (formerly iQ Industries).
As usual, normal operational costs were equally divided between engineering, reporting and listing costs, and administration. All significant risks were considered in the financial statements.
The equity capital decreased from CHF 2.5 million to CHF 1.9 million at the end of the year. This was due to the losses incurred during 2015. Due to the financial restructuring the investment and stake in iQ Power Asia was re-classified from shareholding (29,4%) to financial asset because of the formal legal loss of influence on the company during the rehabilitation process at iQ Power Asia. The equity ratio decreased from 48% to 38%. The liquidity of the company remains satisfactory, with cash on hand of CHF 0,2 million at the end of 2015.
Outlook for 2016
Sales for 2016 year-to-date are up significantly from income generated in Korea, with sales already exceeding total year 2015. As orders and capacity expands in Korea, management anticipates significantly stronger sales than in 2015. There are further developments that may also add to profitability. It is too early to make a firm profit forecast for 2016, however, barring major unforeseen events, a worst case/best case scenario would show operative profits anywhere from some hundred thousand CHF loss to a several hundred thousand CHF profit.
Management views the overall situation as very positive for 2016.