ARISE Technologies Corporation Reports 2007 Year-End Results

    -   Company confirms it is on schedule to start production in April of
        photovoltaic (PV) cells at new manufacturing plant in Germany.
    -   Reports progress throughout the year in carrying out its strategic
        plans, including the forging of important development partnerships
        and successful funding and financing agreements.
    -   R&D investment rises to $3.8 million in 2007 from $0.6 million in
        2006 as the company leverages its development agreements and focuses
        on developing proprietary technologies for high-efficiency PV cells.

    WATERLOO, ON, March 18 /CNW/ - ARISE Technologies Corporation (TSX: APV
and Frankfurt: A3T), which is dedicated to becoming a leader in
high-performance, cost-effective solar technology, today reported its
financial results for the year and fourth quarter ended December 31, 2007.
Financial results conform to Canadian generally accepted accounting principles
(GAAP) and all currency amounts are in Canadian dollars.
    "As we issue this announcement of our 2007 financial results, we are only
weeks away from meeting our scheduled production start up of photovoltaic (PV)
cells at our new manufacturing plant in Bischofswerda, Germany on which
construction began last August. This is indicative of the exciting progress
that ARISE Technologies made during 2007 and is continuing to make in the
first few months of this year," said Bart Tichelman, President and Chief
Executive Officer.
    "During the year, we completed three successful equity financings,
further strengthened our management team in a number of senior positions,
including a new Chief Financial Officer, and concluded a number of strategic
partnership agreements that should contribute to the future success of ARISE
as a leader in our industry. Our pace of progress quickened toward the end of
2007 and has continued in the first quarter of 2008," he said.

    Fourth-Quarter 2007 Highlights

    -   ARISE Germany, the company's wholly owned subsidiary, received from
        Saechsische AufbauBank two payments totaling $6.2 million of a
        $17.9 million incentive grant to the company in support of its new
        German PV cell manufacturing plant.
    -   ARISE added a second wafer supplier, signing an agreement with Sino-
        American Silicon.
    -   The company signed letters of intent for solar farms in Ontario that,
        if completed, will require installing 44MW of PV systems over the
        next two to three years in six projects.
    -   The company signed a contribution agreement with Sustainable
        Development Technology Canada (SDTC) under which SDTC is funding
        about one-third of the eligible project costs up to $6.4 million, on
        the successful completion of milestones. SDTC's contribution is
        leveraged by a $13.2 million funding commitment from a consortium,
        led by ARISE. The high-purity silicon to be produced using the
        silicon feedstock process that ARISE is developing is essential to
        achieving high-efficiency PV cells.
    -   Effective December 21, 2007, ARISE graduated from the TSX Venture
        exchange to listing on the Toronto Stock Exchange
    -   In October, ARISE completed a $34.5 million bought deal common share
    -   In September, ARISE Germany completed definitive agreements
        establishing credit facilities of up to $67.9 million with
        Commerzbank AG.

    Subsequent Highlights

    -   The company further strengthened its management team with the
        appointment of Bart Tichelman as President and Chief Executive
        Officer, as company-founder Ian MacLellan assumed the position of
        Chief Technology Officer and Vice-Chair of the Board.
    -   ARISE became McMaster University's industry partner in carrying out
        its three-year, $4.1 million solar technology research project aimed
        at substantially increasing traditional PV cell efficiencies. ARISE
        will contribute approximately $2 million in cash and in-kind funding
        to the project with the balance being provided by the university and
        the province of Ontario.
    -   ARISE became the University of Toronto's industry partner for four
        projects to develop high-efficiency solar technologies. ARISE will
        contribute one-third of the funding for the five-year, $15 million
        project with the balance coming from the university and the province
        of Ontario.
    -   ARISE Germany contracted to supply from its new PV cell plant SOLON
        AG of Germany with 212 megawatts of PV cells over a five-year period.
        Shipments are to commence in the 2008 second quarter.
    -   The company's Silicon Feedstock Mini Pilot Plant went operational at
        its Waterloo facility. This is considered a significant step in
        moving from the laboratory to production-scale for the proprietary
        technology that ARISE is developing for the Silicon Feedstock

    Financial Highlights

    As ARISE Technologies is an emerging developer and manufacturer of PV
cells, with production scheduled to begin in April 2008, it is investing
significant funds in the development of its business. During this development
and start-up period, the company does not expect to be profitable. Prior to
starting up PV cell manufacturing, the company's revenue is being generated
solely by its Systems Division, which is focused mainly on the grid connected
market in Ontario.
    Revenue for 2007 was $1.162 million, up 59.2 percent from $0.7 million in
2006. Fourth-quarter 2007 revenue was $0.314 million, more than double the
$0.151 million in the prior-year period. All 2007 revenue is the result of
sales by the Systems Division. The increased revenue for the 2007
fourth-quarter and for the year is attributable to the West Toronto Initiative
for Solar Energy (WISE) program, which in June 2007 selected ARISE as its
vendor. The company expects the Ontario incentive program to increase the use
of solar energy supplied to the public electrical grid. The grid connect
market will continue to be a significant opportunity for further sales.
    The net loss for 2007 was $11.5 million ($0.18 per share), including
$4.1 million ($0.04 per share) in the fourth quarter. In 2006, the company's
net loss amounted to $2.9 million ($0.11 per share), including $0.9 million
($0.04 per share) in the fourth quarter.
    A significant factor contributing to the increased loss in 2007 was
higher research and development (R&D) expense, mainly for the company's
silicon and PV programs. R&D expenses for fiscal 2007 and the fourth quarter
of 2007 were $3.8 million and $0.7 million, respectively, compared with
$0.6 million and $0.2 million in the comparable 2006 periods.
    The company's general and administrative expenses also markedly increased
in 2007 to $7.3 million, including $3.1 million in the fourth quarter. This
compares with $2.1 million in 2006, including $0.6 million in the fourth
quarter. The increases are the result of higher payroll and professional fees,
as well as significantly higher stock-based compensation costs. The operations
of ARISE Germany, established in March 2007, required $1.9 million in
administrative expenses. Reflecting the company's efforts to increase its
profile with potential customers, including feasibility costs for currently
in-process solar farm projects, ARISE's selling and marketing expenses rose in
2007 to $0.8 million from $0.3 million in 2006. Fourth-quarter 2007 selling
and marketing expenses were $0.4 million, compared with less than $63,000 in
the prior-year period.
    At the 2007 year-end, ARISE had positive working capital of
$34.3 million. Cash and equivalents was $37.9 million at the 2007 year-end, up
from $9.0 million as at September 30, 2007, and compared with a little more
than half a million dollars at the end of 2006. The increases reflect the
financing activity during 2007, including net proceeds from the sale of equity
amounting to $58.7 million, plus $4.4 million from the exercise of warrants
and options. Total net proceeds for the year were $63.1 million.
    The company believes that its cash and equivalents on hand together with
its various funding and financing agreements will enable it to meet its
near-term requirements. To secure silicon wafers required for its PV plant,
the company may have to stock-pile and pay for available supply in advance of
needing it for production and/or make prepayments on supply agreements as has
become industry practice. Management anticipates being able to offset some of
the funds required for such inventory with customer prepayments thereby
limiting the impact of wafer stock-piling and prepayments on existing working
capital. The company anticipates that any additional capital, if needed, will
be sourced through a combination of additional debt and equity.

    About ARISE Technologies

    ARISE Technologies Corporation, based in Waterloo, Ontario, is dedicated
to becoming a leader in high-performance, cost-effective solar technology. The
company operates through three divisions. The PV Cell Technology Division is
developing a leading, high-efficiency photovoltaic cell based on proprietary
technology. The division is completing construction of its first manufacturing
plant, located in Bischofswerda, Germany and expects to begin shipping to PV
module makers in April 2008. The PV Silicon Technology Division is focusing on
improving PV cell efficiency to make the technology more cost-effective and
also to reduce or eliminate supply constraints. The PV Systems Division builds
solar farms in Ontario and will be leveraging ARISE's vertical integration
    The company's shares are listed on the Toronto Stock Exchange under the
symbol APV and on the Frankfurt Open Market Exchange under the symbol A3T.
Additional information is available at and

    Forward-Looking Statements

    Certain statements in this news release may be considered to be
forward-looking. Such statements are based on management's current
expectations, estimations, and assumptions based on experience, trends, and
other factors that are subject to the significant risks and uncertainties
described in our regulatory filings. Please refer to these. Such risks and
uncertainties may include, but are not limited to, the effects of general
economic conditions, changing foreign exchange rates, actions by government
authorities, uncertainties associated with legal proceedings and negotiations,
industry supply levels, competitive pricing pressures and misjudgments in the
course of preparing forward-looking statements. ARISE assumes no obligation to
update any forward-looking statements or to update the reasons why actual
results could differ from those reflected in the forward-looking statements.


                       ARISE Technologies Corporation
                         Consolidated Balance Sheets

                                                      As at December 31,
                                                      2007           2006
                                                 -------------  -------------
    Current assets
      Cash and cash equivalents (Note 7)         $ 37,908,430   $    198,222
      Accounts receivable                             254,025        179,927
      Share subscription receivable                         -      1,878,600
      Inventory                                       855,588        374,262
      Government assistance receivable
       (Note 16)                                    6,096,333              -
      Prepaid expenses                              1,949,081         36,648
                                                   47,063,457      2,667,659

    Capital assets, net (Note 8)                   14,402,403         83,841

    Long term deposits (Note 8)                     5,181,347              -
    Other assets, net                                  53,086         13,241

                                                 $ 66,700,293   $  2,764,741


    Current liabilities
      Bank loans (Note 9)                        $  1,087,835   $          -
      Accounts payable and accrued liabilities
       (Note 10)                                    8,980,796        885,808
      Deferred revenue                                 47,263         66,028
      Unearned government assistance (Note 16)      2,713,078              -
                                                   12,828,972        951,836
    Commitments and contingencies (Notes 14
     and 19)

                      Shareholders' Equity (Deficiency)

    Capital stock (Note 12a)                       72,857,557     11,433,506
    Contributed surplus (Note 12b)                  4,140,849      1,958,673
    Deficit                                       (23,127,085)   (11,579,274)
                                                   53,871,321      1,812,905

                                                 $ 66,700,293   $  2,764,741

    Approved by the board

    (signed) Bart Tichelman ............. Director

    (signed) Harold Alexander ........... Director

                       ARISE Technologies Corporation
                 Consolidated Statements of Loss and Deficit

                                                 12 months ended December 31,
                                                      2007           2006
                                                 -------------  -------------

    Sales                                        $  1,162,055   $    730,147
    Cost of goods sold                              1,087,008        591,942
    Gross profit                                       75,047        138,205

      Research and development                      3,838,052        578,639
      General and administrative                    7,253,416      2,065,063
      Selling and marketing                           821,053        251,729
      Depreciation of capital assets                   25,374          2,559
                                                   11,937,895      2,897,990

    Operating loss                                (11,862,848)    (2,759,785)

    Other expenses (income)
      Gain on lawsuit settlement and disposal
       of capital assets                                    -        (50,573)
      Interest expense (income), net                 (581,626)        95,354
      Foreign exchange loss                           199,588              -
      Amortization of warrants                              0         92,375
      Other expense                                    67,000
                                                     (315,038)       137,156

    Net loss for the year                         (11,547,810)    (2,896,941)

    Deficit, beginning of year                    (11,579,274)    (8,682,333)

    Deficit, end of year                         $(23,127,085)  $(11,579,274)
    Loss per share - basic and diluted
     (Note 13)                                   $      (0.18)  $      (0.11)

                       ARISE Technologies Corporation
                    Consolidated Statements of Cash Flows

                                                 12 months ended December 31,
                                                      2007           2006
    Cash flows from operating activities
      Net loss for the year                      $(11,547,811)  $ (2,896,941)
      Items which do not involve cash:
        Depreciation of capital assets                 25,375          2,559
        Amortization of other assets                    9,292         12,854
        Non-cash expense associated with warrants           -         92,375
        Issuance of capital stock for services        214,488      2,187,472
        Stock-based compensation                    2,078,289        601,641
        Fair value of options to non-employees        152,361              -
                                                   (9,068,006)           (39)
      Decrease (increase) in:
        Accounts receivable                           (74,098)      (139,122)
        Inventory                                    (481,326)      (283,667)
        Prepaid expenses                           (1,912,433)       (23,506)
        Accounts payable and accrued liabilities    8,094,988     (1,334,729)
        Deferred revenue                              (18,765)        (2,359)
                                                   (3,459,640)    (1,783,422)

    Cash flows from financing activities
      Issuance of capital stock for cash           61,210,096      3,736,952
      Share issuance costs                         (4,435,432)             -
      Exercise of warrants and options              4,386,424        368,975
      Share subscription receivable                 1,878,600     (1,878,600)
      Repayment of notes payable                            -       (160,357)
      Proceeds from bank loans                      1,087,835              -
                                                   64,127,523      2,066,970

    Cash flows from investing activities
      Purchase of capital assets                  (26,708,880)       (80,748)
      Change in other assets                          (49,137)        (7,100)
      Change in long term deposits                 (5,181,347)             -
      Government assistance                         8,981,689              -
                                                  (22,957,675)       (87,848)
    Net cash flow                                  37,710,208        195,700
    Cash and cash equivalents,
     beginning of year                                198,222          2,522
    Cash and cash equivalents, end of year       $ 37,908,430   $    198,222

    Supplemental disclosures of cash flows:
    Interest paid                                $     27,147   $    229,997
    Income taxes paid                            $          -   $          -

    %SEDAR: 00017494E

For further information:

For further information: ARISE Technologies Corporation, 65 Northland
Road, Waterloo, Ontario, Canada, N2V 1Y8, Dave Chornaby, Chief Financial
Officer, (519) 772-5732,,

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