Nevada | 001-34689 | 91-2154289 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
300 N. Continental Blvd, Suite 100, El Segundo California |
90245 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
99.1 | Press Release dated August 15, 2011 |
CEREPLAST, INC. |
||||
/s/ Frederic Scheer | ||||
Frederic Scheer | ||||
Chief Executive Officer | ||||
Cereplast, Inc.
|
MKR Group, Inc. | |
Nicole Cardi
|
Investor Relations | |
(310) 615-1900 x154
|
Charles Messman or Todd Kehrli | |
ncardi@cereplast.com
|
(323) 468-2300 | |
cerp@mkr-group.com |
| Raised $12.5 million gross proceeds in May through the issuance of 7% senior subordinated convertible notes due June 1, 2016. |
| Announced plans, in May, to secure an Italy-based bioplastic manufacturing plant to create efficiencies and to continue expansion in the European market and, in July, gained access to the facility to begin preliminary improvements. Management expects to fund the Italian operations investment via a mix of European bank debt financing and local government subsidies, and to close the transaction late in the third quarter. |
| Signed distribution agreement with Polimernet Plastik Ltd., in July, to supply Cereplast bioplastic resins to the Turkish market. |
| Introduced the Bioplastics Icon: |
| Established, in April, a new trademarked icon with Cereplasts Make Your Mark competition. Similar to the use of the recycling symbol, the icon is intended to designate and identify bioplastic material. |
| Launched online forum in July enabling the public to interactively discuss the symbols proposed usage guidelines and licensing requirements. |
Cereplast, Inc.
|
Lippert/Heilshorn & Associates, Inc. | |
Public Relations
|
Investor Relations | |
Nicole Cardi
|
Mary Magnani/Tim Dien | |
(310) 615-1900 x154
|
(415) 433-3777 | |
ncardi@cereplast.com
|
cereplast@lhai.com |
June 30, 2011 | December 31, 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash |
$ | 13,136 | $ | 2,391 | ||||
Accounts Receivable, Net |
15,838 | 5,289 | ||||||
Inventory, Net |
1,936 | 1,392 | ||||||
Prepaid Expenses and Other Current Assets |
1,447 | 65 | ||||||
Total Current Assets |
32,357 | 9,137 | ||||||
Property and Equipment |
||||||||
Property and Equipment |
6,151 | 5,564 | ||||||
Accumulated Depreciation and Amortization |
(2,652 | ) | (2,213 | ) | ||||
Property and Equipment, Net |
3,499 | 3,351 | ||||||
Other Assets |
||||||||
Restricted Cash |
43 | 43 | ||||||
Deferred Loan Costs |
1,424 | 266 | ||||||
Intangible Assets, Net |
151 | 173 | ||||||
Deposits |
49 | 14 | ||||||
Total Other Assets |
1,667 | 496 | ||||||
Total Assets |
$ | 37,523 | $ | 12,984 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts Payable |
$ | 2,907 | $ | 2,567 | ||||
Accrued Expenses |
2,422 | 1,251 | ||||||
Capital Leases, Current Portion |
18 | 9 | ||||||
Loan Payable, Current Portion |
1,038 | 149 | ||||||
Total Current Liabilities |
6,385 | 3,976 | ||||||
Long-Term Liabilities |
||||||||
Loan Payable |
3,767 | 2,119 | ||||||
Convertible Subordinated Notes |
12,500 | | ||||||
Capital Leases, Long-Term |
22 | | ||||||
Total Long-Term Liabilities |
16,289 | 2,119 | ||||||
Total Liabilities |
22,674 | 6,095 | ||||||
Equity |
||||||||
Shareholders Equity |
||||||||
Preferred Stock, $0.001 par value;
5,000,0000 shares authorized and none outstanding |
| | ||||||
Common Stock, $0.001 par value;
495,000,000 shares authorized; 15,757,305 and 12,992,195
shares issued and outstanding at June 30, 2011 and
December 31, 2010, respectively |
16 | 13 | ||||||
Additional Paid in Capital |
61,866 | 49,737 | ||||||
Accumulated Deficit |
(47,070 | ) | (42,933 | ) | ||||
Accumulated Other Comprehensive Income |
33 | 72 | ||||||
Total Shareholders Equity |
14,845 | 6,889 | ||||||
Noncontrolling Interests |
4 | | ||||||
Total Equity |
14,849 | 6,889 | ||||||
Total Liabilities and Shareholders Equity |
$ | 37,523 | $ | 12,984 | ||||
Three months ended | Six months ended | |||||||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | |||||||||||||
GROSS SALES |
$ | 8,149 | $ | 684 | $ | 15,435 | $ | 1,003 | ||||||||
Sales Discounts, Returns and Allowances |
(538 | ) | (38 | ) | (583 | ) | (67 | ) | ||||||||
NET SALES |
7,611 | 646 | 14,852 | 936 | ||||||||||||
COST OF SALES |
6,688 | 447 | 13,226 | 645 | ||||||||||||
GROSS PROFIT |
923 | 199 | 1,626 | 291 | ||||||||||||
Research and Development |
259 | 119 | 509 | 196 | ||||||||||||
Selling, General and Administrative |
2,724 | 1,718 | 4,768 | 3,199 | ||||||||||||
LOSS FROM OPERATIONS BEFORE OTHER EXPENSES |
(2,060 | ) | (1,638 | ) | (3,651 | ) | (3,104 | ) | ||||||||
OTHER EXPENSES |
||||||||||||||||
Restructuring Costs |
| 93 | | 311 | ||||||||||||
Interest Expense, Net |
327 | | 486 | 1 | ||||||||||||
TOTAL OTHER EXPENSE, NET |
327 | 93 | 486 | 312 | ||||||||||||
NET LOSS BEFORE PROVISION FOR INCOME TAXES |
(2,387 | ) | (1,731 | ) | (4,137 | ) | (3,416 | ) | ||||||||
Provision for Income Taxes |
| | | | ||||||||||||
NET LOSS |
(2,387 | ) | (1,731 | ) | (4,137 | ) | (3,416 | ) | ||||||||
OTHER COMPREHENSIVE INCOME |
||||||||||||||||
Gain (Loss) on Foreign Currency Translation |
8 | (19 | ) | (39 | ) | (1 | ) | |||||||||
TOTAL COMPREHENSIVE LOSS |
$ | (2,379 | ) | $ | (1,750 | ) | $ | (4,176 | ) | $ | (3,417 | ) | ||||
BASIC AND DILUTED LOSS PER SHARE |
$ | (0.15 | ) | $ | (0.15 | ) | $ | (0.27 | ) | $ | (0.32 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING, BASIC AND DILUTED |
15,750 | 11,264 | 15,314 | 10,570 | ||||||||||||
Six Months Ended | ||||||||
June 30, 2011 | June 30, 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Loss |
$ | (4,137 | ) | $ | (3,416 | ) | ||
Adjustment to Reconcile Net Loss to Net Cash Used in Operating Activities |
||||||||
Depreciation and Amortization |
449 | 370 | ||||||
Allowance for Doubtful Accounts |
97 | (7 | ) | |||||
Common Stock Issued for Services, Salaries and Wages |
747 | 872 | ||||||
Amortization of Loan Discount |
38 | | ||||||
Loss on Disposal of Leasehold Improvements |
| 12 | ||||||
Impairment of Intangible Assets |
64 | | ||||||
Changes in Operating Assets and Liabilities |
||||||||
Accounts Receivable |
(10,646 | ) | (217 | ) | ||||
Deferred Loan Costs |
98 | | ||||||
Inventory |
(544 | ) | (101 | ) | ||||
Deposits |
(35 | ) | 30 | |||||
Prepaid Expenses |
(1,381 | ) | (237 | ) | ||||
Restricted Cash |
| (43 | ) | |||||
Intangibles |
| (1 | ) | |||||
Accounts Payable |
341 | (355 | ) | |||||
Accrued Expenses |
1,192 | (129 | ) | |||||
NET CASH USED IN OPERATING ACTIVITIES |
(13,717 | ) | (3,222 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of Property and Equipment, and Intangibles |
(638 | ) | (87 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES |
(638 | ) | (87 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Payments on Capital Leases |
(4 | ) | (13 | ) | ||||
Proceeds from Capital Leases |
32 | | ||||||
Noncontrolling Interest Activities |
4 | | ||||||
Payments made on Notes Payable |
| (54 | ) | |||||
Proceeds from Loan Payable, Net of Loan Costs |
2,500 | 21 | ||||||
Proceeds from Convertible Subordinated Notes, Net of Issuance Costs |
11,243 | | ||||||
Proceeds from Issuance of Common Stock and Subscriptions, Net of Issuance Costs |
11,364 | 7,916 | ||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES |
25,139 | 7,870 | ||||||
FOREIGN CURRENCY TRANSLATION |
(39 | ) | (1 | ) | ||||
NET INCREASE IN CASH |
10,745 | 4,560 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
2,391 | 1,306 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 13,136 | $ | 5,866 | ||||