For the three months ended September 30, 2007, the company had no revenue from it operations. The net loss for the third quarter has increased by 19.7% to $176 thousand mainly due to increased SGA and R&D costs. The company had nearly no liabilities on September 30, 2007. With more than $800 thousand in cash and short term investments the company is adequately financed to sustain its operation for another half a year with current expenditure rate. The company's management plans to raise additional cash resources from equity and/or debt financing if the need arises.
On September 10, 2007 the company has announced a completion of prototype low-cost bioplastic blacksheet. On January 17, 2008 the company announced the blacksheet material has passed the Damp Heat Test which brings it closer to Underwrite Laboratories certification. The company has a strategic partner, SMB Solar, which seeks UL approval for their all polymeric package photovoltaic module. By combining SMB's module with BioSolar's blacksheet material would allow the company to save time and money which would be normally spent to get UL approval all by themselves. This approval is the final step before the company will be able to start selling its product in the photovoltaic market.
Despite the fact that company is not generating any revenue the potential for its activities is huge. The company currently concentrates more on the blacksheet market which has a large growth potential. With the new product BioSolar believes they can become a leader in such a market. Currently the stock price seems to have overreacted to the company's announcements as it has recently dropped by nearly $1. The general uptrend should however continue if BioSolar will successfully progress with the UL approval.
