thousand shares on the market.The most probable reason for the gain turns out to be the latest news by the company. According to the announcement, Axion Power along with BMW Corporation reported impressive performance test results, providing the answer to why the PbC battery was a superior choice for automotive stop-start applications.
Being released, the news provoked investors and AXPW got the up move. However, it’s too soon for an uptrend to be registered.
Axion Power International, Inc. is a development-stage company engaged in developing an energy storage device that uses carbon electrode assemblies. Historically, AXPW stock price has had sharp ups and downs on the market and it could hardly be predicted.[BANNER]
Two weeks ago, the company filed its quarterly report, according to which revenues of Axion have increased as compared to the previous period, though the company still has an operating loss to cover. The company has more assets than liabilities, however, it hasn’t repaid its long-term debt and the stockholders’ equity has been decreasing. The most impressive fact in the 10-Q report appears to be the huge accumulated deficit of Axion, which totals over $723 thousand by end-September.
The company’s primary activity consists of R&D efforts for advanced battery applications and PbC carbon electrode devices. Since inception, the main source of liquidity has been cash generated from issuance of equity or debt securities. Presently, the management believes it can maintain the current level of operations and capital expenditures “through 2011 without further capital infusions”.
However, the company has incurred net losses and “expects to continue to incur substantial and possibly increasing losses for the foreseeable future”. Though the entry into a few loan agreements, there is no guarantee that Axion’s activities will bring a profit.
