News

DayStar Announces 2008 Fourth Quarter and Year End Financial Results

About DayStar Technologies, Inc.

Santa Clara, CA, March 16, 2009 DayStar Technologies, Inc. (Nasdaq: DSTI), a developer of solar photovoltaic products based on CIGS thin-film deposition technology, today announced financial results for its fourth quarter and full year ended December 31, 2008.

Net loss for the fourth quarter of 2008 was $7.8 million or $0.23 per share, compared with a net loss of $8.0 million or $0.29 per share in the fourth quarter of 2007. Net loss for the full year ended December 31, 2008 was $26.3 million or $0.79 per share, compared with a net loss of $36.1 million or $2.09 per share in 2007. The lower net loss reflects a significant reduction in non-recurring, non-cash expenses, primarily related to the restructuring of a convertible note and other changes in business strategy in 2007. This reduction in non-cash expenses was partially offset by increased operating expenses incurred during 2008 for CIGS-on-glass module and manufacturing process development. The per share losses were calculated on the weighted average common shares outstanding of 33.4 and 33.2 million for the fourth quarter and year ended December 31, 2008, respectively, compared with 27.5 and 17.3 million for the fourth quarter and year ended December 31, 2007, respectively, reflecting the sale of shares in connection with Daystar’s follow on public offering in October 2007.

DayStar had cash and cash equivalents of $17.1 million at December 31, 2008, compared with $61.4 million at December 31, 2007. Net property and equipment was $37.1 million at the end of 2008 compared to $9.1 million at the end of 2007, reflecting DayStar’s investment in equipment and improvements during 2008. As of December 31, 2008, DayStar had total liabilities of $11.4 million, and total stockholders’ equity was $43.5 million.

Conference Call
DayStar will hold its year end conference call today, Monday, March 16, 2009, at 2 pm Pacific time.  To listen to the call, dial (412) 858-4600 approximately 10 minutes prior to the start of the call.  The pass code is DayStar.  A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week.  To access the replay, dial (412) 317-0088. The pass code is 428596.


DAYSTAR TECHNOLOGIES, INC.

(A DEVELOPMENT STAGE ENTERPRISE)

BALANCE SHEETS

 










     December 31,
2008
    December 31,
2007
 
ASSETS   


 


Current Assets:

  


 


Cash and cash equivalents

   $ 17,120,401     $ 61,365,559  

Other current assets

     543,357       666,511  

                

Total current assets

     17,663,758       62,032,070  

                

Property and Equipment, at cost

     46,022,825       14,911,021  

Less accumulated depreciation and amortization

     (8,942,105 )     (5,774,823 )

                

Net property and equipment

     37,080,720       9,136,198  

                

Other Assets:

  


 


Other assets

     204,108       72,427  

                

Total Assets

   $ 54,948,586     $ 71,240,695  

                
LIABILITIES AND STOCKHOLDERS’ EQUITY   


 


Current Liabilities:

  


 


Accounts payable and accrued expenses

   $ 7,554,814     $ 2,620,635  

Notes and capital leases payable, current portion

     171,983       174,996  

Deferred rent, current portion

     175,212       —    

Deferred revenue and gain

     420,000       2,333  

                

Total current liabilities

     8,322,009       2,797,964  

Long-Term Liabilities:

  


 


Notes and capital leases payable

     —         171,983  

Deferred revenue

     —         420,000  

Deferred rent

     2,951,557       —    

Stock warrants

     125,481       2,771,090  

                

Total long-term liabilities

     3,077,038       3,363,073  

Commitments and Contingencies

     —         —    

Stockholders’ Equity:

  


 


Preferred stock, $.01 par value; 3,000,000 shares authorized; 0 shares issued and outstanding

     —         —    

Common stock, $.01 par value; 120,000,000 shares authorized; 33,438,862 and 32,621,262 shares issued and outstanding at December 31, 2008 and December 31, 2007, respectively

     334,389       326,213  

Additional paid-in capital

     140,179,025       135,387,049  

Accumulated deficit

     (10,145,391 )     (10,145,391 )

Deficit accumulated during the development stage

     (86,818,484 )     (60,488,213 )

                

Total stockholders’ equity

     43,549,539       65,079,658  

                

Total Liabilities and Stockholders’ Equity

   $ 54,948,586     $ 71,240,695  

                


DAYSTAR TECHNOLOGIES, INC.

(A DEVELOPMENT STAGE ENTERPRISE)

STATEMENTS OF OPERATIONS

 


















     (Unaudited)
For the Three Months
Ended December 31,
    For the Years
Ended December 31,
 
     2008     2007     2008     2007  

Revenue:

  


 


 


 


Research and development contract revenue

   $ —       $ 60,000     $ —       $ 60,000  

                                

Total revenue

     —         60,000       —         60,000  

Costs and Expenses:

  


 


 


 


Research and development

     5,687,197       3,260,965       17,678,212       10,420,541  

Selling, general and administrative

     2,057,746       2,589,295       8,864,142       6,875,610  

Restructuring

     —         1,084,776       —         2,840,996  

Depreciation and amortization

     934,832       786,067       3,242,504       3,013,149  

                                

Total costs and expenses

     8,679,775       7,721,103       29,784,858       23,150,296  

Other Income (Expense):

  


 


 


 


Other income

     132,244       437,211       848,409       566,533  

Interest expense

     (7,392 )     (272,530 )     (39,431 )     (523,355 )

Amortization of note discount and financing costs

     —         (13,826 )     —         (4,176,138 )

Gain (loss) on derivative liabilities

     730,827       (522,843 )     2,645,609       (2,828,136 )

Loss on extinguishment of debt

     —         —         —         (6,091,469 )

                                

Total other income (expense)

     855,679       (371,988 )     3,454,587       (13,052,565 )

                                

Net Loss

   $ (7,824,096 )   $ (8,033,091 )   $ (26,330,271 )   $ (36,142,861 )

                                

Weighted Average Common Shares Outstanding (Basic And Diluted)

     33,438,862       27,462,346       33,164,993       17,302,763  

                                

Net Loss Per Share (Basic and Diluted)

   $ (0.23 )   $ (0.29 )   $ (0.79 )   $ (2.09 )