price is currently in a stand-by mode. This fact immediately raises the question what’s happening with Axion Power and what will be the next stock move?Despite the increased trading activity, the company has not released any news about its business since November, excluding the announcement about the Piper Jaffray Clean Technology & Renewables Conference on Jan 12. At the conference Axion was to discuss its “products, customer base and addressable market, as well as the landscape of the Company”. At this point, it’s too soon for the conference details to be published, though they will be certainly expected.
Apart from this announcement, there is no recent information about Axion and nobody is familiar with its present operations. The latest news related to the company came up last November, reporting that Axion Power along with BMW Corporation have achieved impressive performance test results, providing the answer to why the PbC battery was a superior choice for automotive stop-start applications. The news pushed up AXPW stock at once, however, the up move didn’t last much long.[BANNER]
Axion Power International, Inc. is a development-stage company engaged in developing an energy storage device that uses carbon electrode assemblies. According to its quarterly report, revenues of Axion have increased as compared to the previous period, though the company hasn’t covered its operating loss. The balance sheet points that AXPW has more assets than liabilities, however, it hasn’t repaid its long-term debt and the stockholders’ equity has decreased. The most impressive fact in the 10-Q report though, turns out to be the huge accumulated deficit of Axion, which totals over $723 thousand by end-September.
Since inception, the main source of liquidity for Axion has been cash generated from issuance of equity or debt securities. The management team 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 these to get even higher in the foreseeable future. Thus, Axion should find a quick way to raise additional capital for its operations.
