SpaceDev, Inc.
, a leading provider of microsatellites and hybrid
propulsion technology, today reported financial results for the second quarter
of 2003.
Net sales for the six-month period ending June 30, 2003 were approximately
$1.3 million as compared to net sales of approximately $1.8 million for the
same six-month period in 2002. Sales in 2003 were comprised of approximately
$397,000 from a proprietary propulsion program, $331,000 from the CHIPSat
program, $250,000 from a completed Missile Defense Agency (MDA) project,
$242,000 from Air Force Research Laboratory (AFRL) projects and approximately
$67,000 from all other programs. In the first six-months of 2002, sales were
comprised of approximately $806,000 from the CHIPSat program, $807,000 from a
proprietary propulsion program and $199,000 from all other programs.
During the six-months ending June 30, 2003, the Company incurred a net
loss of approximately $918,000, or 71% of net sales, compared to a net loss of
approximately $117,000, or 6% of net sales, for the same six-months ending in
2002. The increase in the net loss was primarily due to a reduction in
revenues attributable to the substantial completion of the CHIPSat program,
and to deferred or delayed new programs and an increase in operating expenses
of approximately $976,000, or 76% of net sales. Operating expenses for the
six-months ending June 30, 2002 were approximately $368,000, or 20% of net
sales.
Operating expenses for the second quarter of 2003 included:
— general and administrative expenses (which increased approximately
$226,000 due to an increase in rent expense, amortization of
previously capitalized technology costs, and fees related the
Company’s revolving credit facility with Laurus Master Fund, Ltd.
announced in a Form 8-K filed June 18, 2003;— increased marketing and sales expenses of approximately $130,000
(primarily due to the expansion of the Company’s marketing and
product development department); and,— research and development expenses of approximately $252,000, of
which approximately $171,000 was in connection with our hybrid
rocket propulsion design and the remaining $81,000 was part of the
Company’s satellite bus design and development.
Recent Events
On July 15, 2003, SpaceDev announced that it had been awarded a contract
to develop micro- and nano-satellite bus and subsystem designs from the AFRL
Small Business Innovation Research (SBIR) program, which will enable SpaceDev
to explore the further miniaturization of its unique and innovative microsat
subsystems. Other recent awards include a second SBIR contract by the AFRL to
design and begin the development of the SpaceDev Streaker(TM) small launch
vehicle (SLV) (announced on July 18) as well as a second contract by the
Missile Defense Agency (MDA) to explore the use of microsatellites in national
missile defense (announced on July 24). On July 24, SpaceDev was awarded a
commercial study by Lunar Enterprise of California (LEC) for a first phase
project to begin developing a conceptual mission and spacecraft design for a
lunar lander program.
For more information regarding the Company, please review the Company’s
filings on the SEC EDGAR system at www.sec.gov or at www.spacedev.com.
About SpaceDev
SpaceDev (OTC Bulletin Board: SPDV) creates and sells affordable and
innovative space products and solutions to government and commercial
enterprises. SpaceDev products and solutions include the design, manufacture,
marketing and operation of sophisticated micro and nano satellites, hybrid
rocket-based orbital Maneuvering and orbital Transfer Vehicles (MTVs) as well
as safe sub-orbital and orbital hybrid rocket-based propulsion systems.
SpaceDev has been awarded contracts from NASA, National Reconnaissance
Organization (NRO), Boeing, Jet Propulsion Laboratory (JPL), California Space
Authority (CSA), Air Force Research Lab (AFRL) and several commercial
customers. SpaceDev is also developing commercial hybrid rocket motors and
small high performance space vehicles and subsystems.
This news release may contain forward-looking statements concerning the
Company’s business and future prospects and other similar statements that do
not concern matters of historical fact. Forward-looking statements relating
to product development, business prospects and development of a commercial
market for technological advances are based on the Company’s current
expectations. The Company’s current expectations are subject to all of the
uncertainties and risks customarily associated with new business ventures
including, but not limited to, the level of sales to key customers; the
economic conditions affecting our industry; actions by competitors;
fluctuations in the price of raw materials; the availability of outside
contractors at prices favorable to the Company; our dependence on
single-source or a limited number of suppliers; our ability to protect our
proprietary technology; market conditions influencing prices or pricing; an
adverse outcome in litigation, claims and other actions, and potential
litigation, claims and other actions by or against us; technological changes
and introductions of new competing products; the current recession; terrorist
attacks or acts of war, particularly given the acts of terrorism against the
United States on September 11, 2001 and subsequent military responses by the
United States; mission disasters such as the loss of the space shuttle
Columbia on February 1, 2003 during its re-entry into earth’s atmosphere;
ability to retain key personnel; changes in market demand; exchange rates;
productivity; weather; and market and economic conditions in the areas of the
world in which we operate and market are products. The Company’s actual
results may differ materially from current expectations. Readers are cautioned
not to put undue reliance on forward-looking statements contained in this
release and to read it in conjunction with the Company’s annual report on Form
10-KSB, including the consolidated financial statements filed therewith. The
Company disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information, future
events or for any other reason.
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, 2003 2002
Assets
Current Assets
Cash $80,734 $135,370
Accounts receivable 142,759 201,331
Total current assets 223,493 336,701
Fixed Assets - Net 127,314 2,130,306
Capitalized Software Costs 33,375 172,513
Other Assets 34,502 158,292
$418,684 $2,797,812
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, 2003 2002
Liabilities and Stockholders' Deficit
Current Liabilities
Current portion of notes payable $52,000 $218,257
Current portion of capitalized
lease obligations 26,629 37,604
Notes payable - related party 80,000 80,000
Convertible debt notes payable 332,847 --
Accounts payable and accrued expenses 338,432 226,659
Accrued payroll, vacation
and related taxes 122,129 145,581
Customer deposits and deferred revenue -- 238,362
Billing in excess of costs incurred
and estimated earnings -- 441,720
Provision for anticipated loss 5,174 47,341
Income taxes payable 2,526 --
Total current liabilities 959,737 1,435,524
Notes Payable, Less Current
Maturities 65,260 2,350,797
Capitalized Lease obligations,
Less Current Maturities 6,558 23,780
Notes Payable - Related Party,
Less Current Maturities 517,630 568,865
Deferred Gain - Assets Held for Sale 1,123,857 --
Deferred Revenue 5,000 5,000
Total liabilities 2,678,042 4,383,966
Commitments and Contingencies
Stockholders' Deficit
Convertible preferred stock,
$.0001 par value, 10,000,000 shares
authorized no shares issued
or outstanding -- --
Common stock, $.0001 par value;
25,000,000 shares authorized,
and 15,338,907 and
14,858,396 shares issued
and outstanding, respectively 1,533 1,485
Additional paid-in capital 8,728,659 8,224,827
Additional paid-in
capital - stock options 750,000 750,000
Deferred compensation (250,000) (250,000)
Accumulated deficit (11,489,550) (10,312,466)
Total stockholders' deficit (2,259,358) (1,586,154)
$418,684 $2,797,812
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three-Months Ending
Three-Months Ending
June 30, 2003 % 2002 %
Net Sales 753,956 100% 862,638 100%
Total Cost of Sales 577,874 77% 729,614 85%
Gross Margin 176,082 23% 133,024 15%
Operating Expenses
Marketing and
sales expense 134,005 18% 42,527 5%
Research and
development 251,983 33% -- 0%
General and
administrative 155,006 21% 113,241 13%
Total Operating
Expenses 540,994 72% 155,768 18%
Profit (Loss) from
Operations (364,912) -48% (22,744) -3%
Other Income (Expense)
Interest income
(expense) (14,179) -2% (64,852) -8%
Non-Cash interest
income (expense)
debt discount
(100,453) -13% -- 0%
Gain on Building
Sale 29,318 4% -- 0%
Total Other Income
(Expense) (85,314) -11% (64,852) -8%
Loss Before Taxes (450,226) -60% (87,596) -10%
Income tax provision (37,474) -5% -- 0%
Net Loss (412,752) -55% (87,596) -10%
Net Loss Per Share:
Net loss (0.03) (0.01)
Weighted-Average
Shares
Outstanding 15,092,489 14,858,396
SpaceDev, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Six-Months Ending
Six-Months Ending
June 30, 2003 % 2002 %
Net Sales 1,286,795 100% 1,812,408 100%
Total Cost of Sales 1,039,484 81% 1,441,577 80%
Gross Margin 247,311 19% 370,831 20%
Operating Expenses
Marketing and
sales expense 199,047 15% 68,772 4%
Research and
development 251,983 20% -- 0%
General and
administrative 524,922 41% 298,964 16%
Total Operating
Expenses 975,952 76% 367,736 20%
Profit (Loss) from
Operations (728,641) -57% 3,095 0%
Other Income (Expense)
Interest income
(expense) (34,628) -3% (120,012) -7%
Non-Cash interest
income (expense)
debt discount
(200,908) -16% -- 0%
Gain on Building
Sale 48,863 4% -- 0%
Total Other Income
(Expense) (186,673) -15% (120,012) -7%
Loss Before Taxes (915,314) -71% (116,917) -6%
Income tax provision 2,526 0% -- 0%
Net Loss (917,840) -71% (116,917) -6%
Net Loss Per Share:
Net loss (0.06) (0.01)
Weighted-Average
Shares
Outstanding 15,092,489 14,842,070
