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ZMC 3rd Quarter Results for 06/30/2011 « Zenn Motor Company « Financial
 
Thu, 18 Aug 2011, 5:04pm #1
wcushman
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August 18, 2011
ZENN Motor Company Reports Third Quarter 2011 Results
TORONTO, ONTARIO--(Marketwire - Aug. 18, 2011) - ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN) today announced its unaudited financial results for the three and nine months ended June 30, 2011. All amounts are expressed in Canadian dollars.

Financial Results

For the three and nine months ended June 30, 2011, net loss from continuing operations was $1,389,020 or $0.04 per share and $3,665,292, or $0.10 per share, respectively, after unusual items. For the corresponding periods in the prior year, net losses from continuing operations were $1,060,614 or $0.03 per share and $3,161,105 or $0.09 per share, respectively.

As part of the plan to re-focus and restructure the Company, non-recurring severance costs of $448,987 were incurred in the current quarter. Excluding these severance costs, the loss from continuing operations in the three months ended June 30, 2011 decreased by approximately 11% as compared to the same period in the prior year. Exclusive of the year-to-date unusual items in the nine months ended June 30, 2011, the loss from continuing operations has declined by 16.3% compared to the same period in the prior year.

At June 30, 2011 the Company had cash, cash equivalents and short-term investments totaling $2,039,529 compared to cash, cash equivalents and short-term investments of $5,074,652, at September 30, 2010.

Company Update

During the quarter, the Company continued its plan to simplify the organization, reduce costs and focus the Company's resources on its investment in EEStor, Inc. The Company has been aligning its expenditures with the pace of development of EEStor power storage technologies. James Kofman, Chairman and Interim Chief Executive Officer of ZENN commented, "The Company has gone through some tough but necessary changes over the past few months. We have reduced personnel and significantly reduced the cash burn rate going forward. At the same time we have worked hard to build on our relationship with EEStor. The Company has ceased expenditures on the development of technology complimentary to EEStor's work and will evaluate future expenditures as and when developments occur at EEStor." Mr Kofman added, "We recognize shareholders are looking for updates on the progress at EEStor. As previously noted, our technology agreement precludes us from making announcements on new developments in advance of any official release by EEStor. We are in constant contact with our EEStor partners and are committed to the timely release of material developments, as soon as they occur."

Additional Information

Readers are encouraged to read the Company's unaudited consolidated financial statements for the quarter ended June 30, 2011, the corresponding Management's Discussion and Analysis and the Company's Annual Information Form dated January 20, 2011. All of these documents have been filed and are available for viewing on SEDAR at www.sedar.com and posted on the Company's website at www.ZENNcars.com.

About ZENN Motor Company Inc.

ZENN Motor Company, Toronto, Canada, is dedicated to enabling emission-free, energy-efficient transportation through unique, yet widely applicable, technology offerings. Driven by quality, ingenuity and a philosophy of social responsibility, the ZMC team is redefining what is possible in the pursuit of zero emission transportation.

ZENNergy technologies and solutions, to be powered by EEStor's electrical energy storage units (EESU) are expected to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers. The Company has a Technology Agreement with EEStor that provides certain exclusive and non-exclusive rights to purchase and deploy EEStor's EESU technology, which rights are detailed in the Company's AIF.

Forward-looking Statements

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the automotive industry, consumer demand for zero emission transportation solutions and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: the EEStor energy storage technology may not be successfully commercialized at all, in a manner providing the features and benefits expected while under development, or on a timely basis or the Company may not be able to successfully incorporate this technology into its current or proposed products; the Company could fail in its efforts to develop viable ZENNergy technologies and solutions or do so on a timely basis; steps taken by the Company to protect its proprietary rights may not be adequate or third parties may infringe or misappropriate the Company's proprietary rights; the Company has a history of losses from operations and may not be able to obtain financing, if and when required, to fund future expenditures for general administrative activities, including sales and marketing and research and development, expansion, strategic acquisitions or investment opportunities or to respond to competitive pressures; competitors may develop products which offer greater benefits to consumers, have greater market appeal or are more competitively priced than those offered by the Company; the Company may be exposed to product liability claims which exceed insurance policy limits; the Company is dependent on the ability and experience of a relatively small number of key personnel; new products introduced by the Company may not be accepted in the market or to the extent projected; new laws and regulations may be enacted or existing ones may be applied or governmental action may be taken in a manner which could limit or curtail the production or sale of the Company's products; and the Company may be negatively affected by reduced consumer spending due to the uncertainty of economic and geopolitical conditions. These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in ZMC's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.

Information contained in this release relating to EEStor, Inc. or the energy storage technology being developed by EEStor has not been reviewed by EEStor and EEStor does not assume any responsibility for the accuracy or completeness of such information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:
ZENN Motor Company Inc.
Vanessa Antoine
416-535-8395 ext. 224
vantoine@ZENNcars.com

or

ZENN Motor Company Inc.
Larry Goldberg
Chief Financial Officer
416-535-8395 ext. 210
lgoldberg@ZENNcars.com



"All I want to know is where I will die so that I will never go there." Unknown wise man

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Thu, 18 Aug 2011, 5:11pm #2
grizz
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The Company has ceased expenditures on the development of technology complimentary to EEStor's work and will evaluate future expenditures as and when developments occur at EEStor."

Translation: We have no idea what is going on at EEstor, the situation is hopeless.

Grizz


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Thu, 18 Aug 2011, 5:14pm #3
pfujimoto
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Whoa. Only about 4-5 months of cash left, eh? at least at first glance.


Lensman Scale: 8

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Thu, 18 Aug 2011, 5:40pm #4
eexpectresults
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6.5 months based on $313k burn rate. But that burn rate is way too high for virtually no activity and only a few staff unless they have lease space & equipment obligations but that should have already been written off. They also need to hold back 300-400K for final EEStor milepost payment....so they have maybe 5 months (year end)or find an angel investor

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Thu, 18 Aug 2011, 5:44pm #5
eexpectresults
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Grizz do you still hold your pilot position?

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Thu, 18 Aug 2011, 5:49pm #6
sunnyEEh
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grizz wrote:

The Company has ceased expenditures on the development of technology complimentary to EEStor's work and will evaluate future expenditures as and when developments occur at EEStor."

Translation: We have no idea what is going on at EEstor, the situation is hopeless.

Grizz

I agree...that comment is a bit scary...and with the 20% drop in the stock in the last 3 days kinda suggests someone knew about it...but there are many other explanations i suppose...but nothing will become of it only because the stock is still overvalued for a shell company...

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Thu, 18 Aug 2011, 6:12pm #7
Bretspot
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It's obvious someone knew. I don't like how Grizz is so down on this all of a sudden. :) Oh well shareprice!=proof of the tech. Zenn or no Zenn either it's real or it's BS


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Thu, 18 Aug 2011, 6:14pm #8
eeshock
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here's the meat and potatoes:

we have worked hard to build on our relationship with EEStor. The Company has ceased expenditures on the development of technology complimentary to EEStor's work and will evaluate future expenditures as and when developments occur at EEStor." Mr Kofman added, "We recognize shareholders are looking for updates on the progress at EEStor. As previously noted, our technology agreement precludes us from making announcements on new developments in advance of any official release by EEStor. We are in constant contact with our EEStor partners and are committed to the timely release of material developments, as soon as they occur."

a few things...
-working hard to build on the relationship...(does it need it?)
-in constant contact with EEstor("dick, we havn't spoken since yesteday afternoon, any progress?")
-we recognize shareholders are looking for updates on the progress at EEStor. (so dont bug us, we are looking for updates ourselves)

not suprising that they are in a holding pattern, but some candor at least. How is it that they are spending like that with (how many employees?)what they have??


"I remember a time in the wilds of Afghanistan, we had lost our corkscrew and were forced to live off food and water for many days" -W.C. Fields

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Thu, 18 Aug 2011, 6:31pm #9
teslafan49
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If you go back to the second quarter report, take the cash, etc. on hand figure through Mar. '11, subtract on-hand cash, etc. from this reports figure, subtract the $448K+ severance money, and divide by the 3 months, of the quarter, you get a per month burn rate of $172K+. Using that, without factoring in the reduction in salaries through August 1, but factoring in the $500K payment to EEStor, as final payment, you get a zero out time of 8-9 months.(1,539,529/172,437=8.9 months) Though this could be longer, with already reduced salaries factored in, and any future cost cutting.

Last edited Thu, 18 Aug 2011, 6:45pm by teslafan49


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Thu, 18 Aug 2011, 6:40pm #10
eeinterested
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"The Company has been aligning its expenditures with the pace of development of EEStor power storage technologies."

Not really very comforting, but they are clearly aware of the cash burn and hopefully have it properly "aligned" with EEStor's plans.

So they'll spend their last nickel the day of reveal.

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Thu, 18 Aug 2011, 7:29pm #11
HEEman
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Bretspot wrote:

It's obvious someone knew. I don't like how Grizz is so down on this all of a sudden. :) Oh well shareprice!=proof of the tech. Zenn or no Zenn either it's real or it's BS
Someone knew but they didn't bother let us peon investors know about it. Well done zenn.


In a redneck sort a way, we only have so much ass to cash that check against.

http://www.brooklynvegan.com/archives/2011/06/n...

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Thu, 18 Aug 2011, 7:33pm #12
HEEman
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eeshock wrote:

here's the meat and potatoes:

we have worked hard to build on our relationship with EEStor. The Company has ceased expenditures on the development of technology complimentary to EEStor's work and will evaluate future expenditures as and when developments occur at EEStor." Mr Kofman added, "We recognize shareholders are looking for updates on the progress at EEStor. As previously noted, our technology agreement precludes us from making announcements on new developments in advance of any official release by EEStor. We are in constant contact with our EEStor partners and are committed to the timely release of material developments, as soon as they occur."


a few things...
-working hard to build on the relationship...(does it need it?)
-in constant contact with EEstor("dick, we havn't spoken since yesteday afternoon, any progress?")
-we recognize shareholders are looking for updates on the progress at EEStor. (so dont bug us, we are looking for updates ourselves)

not suprising that they are in a holding pattern, but some candor at least. How is it that they are spending like that with (how many employees?)what they have??
I have said this over and over and over again but get dismissed by the chorus of cheerleaders here. There are many things they could be telling us that has nothing to do with the eesu. They don't they won't they suck.


In a redneck sort a way, we only have so much ass to cash that check against.

http://www.brooklynvegan.com/archives/2011/06/n...

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Thu, 18 Aug 2011, 7:33pm #13
cechilders
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Bretspot wrote:

It's obvious someone knew. I don't like how Grizz is so down on this all of a sudden. :) Oh well shareprice!=proof of the tech. Zenn or no Zenn either it's real or it's BS

Because to Grizz it is a investment not a idol of worship. Only true believers who cannot part with the idea of DW as the saviour of humanity are still believing

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Thu, 18 Aug 2011, 7:44pm #14
wcushman
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Who is Vanessa Antoine? I hope she was not hired to replace CS. Perhaps she is one of Cott's harassees.

CONTACT INFORMATION:
ZENN Motor Company Inc.
Vanessa Antoine
416-535-8395 ext. 224

Last edited Thu, 18 Aug 2011, 7:55pm by wcushman


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Thu, 18 Aug 2011, 8:05pm #15
eeinterested
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She is filling in to avoid a new hire; I believe she was one of the women who complained about Cott.

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Thu, 18 Aug 2011, 8:11pm #16
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It certainly is suspicious that the stock took a nose dive just before the quarterly report.


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Thu, 18 Aug 2011, 8:17pm #17
Ken123
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She's in Sales and Marketing. But at this stage, why do you still have Sales and Marketing?

No offense Vanessa. Hope you have a long and happy career at Zenn.

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Thu, 18 Aug 2011, 8:20pm #18
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It's also suspicious that they released this now and not the end of the month(tidbit from chat). Maybe someone wants freed up to buy now.


26:30 Sec. Mabus wrote:

"DOD can and will serve as a transition agent. Moving this technology from R&D to practical application and development"

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Thu, 18 Aug 2011, 8:22pm #19
HEEman
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Oakthicket wrote:

It certainly is suspicious that the stock took a nose dive just before the quarterly report.
Oak you ain't kidding on this one.


In a redneck sort a way, we only have so much ass to cash that check against.

http://www.brooklynvegan.com/archives/2011/06/n...

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Thu, 18 Aug 2011, 8:38pm #20
eestatic
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"The Company has been aligning its expenditures with the pace of development of EEStor power storage technologies."

So if ZMC is spending money faster than it should (accelerated), that must mean EEStor's development is coming faster than anticipated?


We are not human beings going through a temporary spiritual experience. We are spiritual beings going through a temporary human experience.

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Thu, 18 Aug 2011, 8:58pm #21
cechilders
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eestatic wrote:

"The Company has been aligning its expenditures with the pace of development of EEStor power storage technologies."

So if ZMC is spending money faster than it should (accelerated), that must mean EEStor's development is coming faster than anticipated?

Are you a true idiot? Zenn has reduced spending to zero on EESU technologies. Zero spending means zero progress. How in the world do you read EEStor must be moving faster out of this?? Hello, McFly!!

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Thu, 18 Aug 2011, 9:05pm #22
wcushman
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HEEman wrote:

Oakthicket wrote:

It certainly is suspicious that the stock took a nose dive just before the quarterly report.
Oak you ain't kidding on this one.

Yesterday when ZNN and ZNNMF both plunged, the volume for ZNNMF was normal, but the volume for ZNN was 100,000 shares above the 3 month average. Someone unloaded 100,000 shares on the TSX the day before the 3rd quarter results were published 2 weeks before they normally would have been. Looks very suspicious to me, too.

Strangely, the report seems to match what most investors expected, meaning it should not have a great deal of impact. We will have to see what impact it has in tomorrow's trading since it came out after the close of today's market.

Last edited Thu, 18 Aug 2011, 9:16pm by wcushman


"All I want to know is where I will die so that I will never go there." Unknown wise man

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Thu, 18 Aug 2011, 9:09pm #23
eestatic
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cechilders wrote:

eestatic wrote:

"The Company has been aligning its expenditures with the pace of development of EEStor power storage technologies."

So if ZMC is spending money faster than it should (accelerated), that must mean EEStor's development is coming faster than anticipated?

Are you a true idiot? Zenn has reduced spending to zero on EESU technologies. Zero spending means zero progress. How in the world do you read EEStor must be moving faster out of this?? Hello, McFly!!

Shot right past you, Dude/Dude-ette, sorry ..didn't realize I needed to slow it down/lower altitude for the dry humor challenged..


We are not human beings going through a temporary spiritual experience. We are spiritual beings going through a temporary human experience.

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Thu, 18 Aug 2011, 9:11pm #24
eestatic
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...been a long time since fishing for hard-heads w/no bait on the hook...


We are not human beings going through a temporary spiritual experience. We are spiritual beings going through a temporary human experience.

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Thu, 18 Aug 2011, 9:11pm #25
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eestatic wrote:

So if ZMC is spending money faster than it should (accelerated), that must mean EEStor's development is coming faster than anticipated?

When has ZMC ever *not* spent more money than it should have? Remember it spending nearly as much on promoting and advertising the ZENN as it did buying the gliders? Insane.


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Thu, 18 Aug 2011, 9:16pm #26
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sammyn wrote:

It's also suspicious that they released this now and not the end of the month(tidbit from chat). Maybe someone wants freed up to buy now.

ahhhh.. right.. this release of the pr means the insider trading blackout is over. Is that correct?

Hopefully with the shares being on sale, the BoD steps up and buys some now.


The time has come to demonstrate that ZENN is on the right path Romney/Ryan 2012

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Thu, 18 Aug 2011, 9:26pm #27
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Fibb wrote:

sammyn wrote:

It's also suspicious that they released this now and not the end of the month(tidbit from chat). Maybe someone wants freed up to buy now.

ahhhh.. right.. this release of the pr means the insider trading blackout is over. Is that correct?

Hopefully with the shares being on sale, the BoD steps up and buys some now.

Interresting point, bad news is usually put off till the last minute.

Koffman said they were building ON the eestor relationship, not rebuilding it.


"Most people don't believe something can happen until it already has." Max Brooks, World War Z.

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Thu, 18 Aug 2011, 9:49pm #28
eeterrific
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Effectively....if Dick doesn't come through by the end of the year, we're finished....unless we sell our rights. In which case, we have no reason for being....


eeterrific

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Thu, 18 Aug 2011, 9:54pm #29
eelect_tron
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As said earlier, lets see who buys and who sells. We all might be surprised. I am still hanging in there like a hair in a biscuit!

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Thu, 18 Aug 2011, 10:32pm #30
Fibb
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DaveM wrote:

Fibb wrote:

sammyn wrote:

It's also suspicious that they released this now and not the end of the month(tidbit from chat). Maybe someone wants freed up to buy now.

ahhhh.. right.. this release of the pr means the insider trading blackout is over. Is that correct?

Hopefully with the shares being on sale, the BoD steps up and buys some now.

Interresting point, bad news is usually put off till the last minute.

Koffman said they were building ON the eestor relationship, not rebuilding it.

yes DaveM. Lines up nicely with the settlement of the dispute being done.

And this is to the negative nellies.... kofman didn't mean "interpersonal" relationship. He means business relationship.

Could this mean an expanded role for ZMC? More than just being EEStor's EV marketing arm?


The time has come to demonstrate that ZENN is on the right path Romney/Ryan 2012

Dick Weir will not go quietly in the night.... - FMA

My grandkids won't know what it means to put gas or diesel in a car.

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