In a regulatory filing on Tuesday, New York-based Ener1 announced its restated financial results. The preliminary statement shows that Ener1's estimated 2010 net loss shot up to $165.3 million. That's nearly $100 million more in losses than Ener1 had previously reported.
Ener1 says that, while investigations are not yet complete, the adjustments "were the result of one or more material weaknesses." Ener1 says it's "in the process of determining whether the company has sufficient liquidity to fund its operations." That all sounds rough, but the full story is not yet public. Ener1 says it will issue a detailed release when "the evaluation of the restatement is completed."
Restatements Will Have No Impact on Company's Current or Previously Stated Cash Position or Cash Flows
NEW YORK, Aug. 16, 2011 /PRNewswire/ -- Ener1, Inc. (NASDAQ: HEV), announced today that the company will be restating its financial statements for the period included in an amended annual report on Form 10-K/A for the year ended December 31, 2010, as well as an amended Form 10-Q/A for the quarter ended March 31, 2011.
The company will restate its financial statements to reflect as of December 31, 2010 the impairments of its investment in Think Holdings (which had previously been recorded in the first quarter of 2011), its accounts receivable with Think Global and its loans receivable with Think Holdings, including accrued interest. The restatement will also reflect the corrected accounting for revenue recognized in connection with transactions with Think Holdings and Think Global during the year ended December 31, 2010 and the three months ended March 31, 2011, the impact these adjustments have on the fair value of financial instruments and to adjust the elimination of certain intercompany receivables.
All of the restatements involve non-cash items and will have no impact on the company's current or previously stated cash position or cash flows. A current report on Form 8-K that further describes the restatement of the company's financial statements has been filed and is available on the company's web site at www.ener1.com.
About Ener1, Inc.
Ener1, Inc. is a publicly traded (NASDAQ: HEV) energy storage technology company that develops compact, lithium-ion-powered battery solutions for the utility grid, transportation and industrial electronics markets. Headquartered in New York City, the company has nearly 700 employees with manufacturing locations in the United States and Korea. Ener1 also develops commercial fuel cell products and nanotechnology-based materials. For more information, visit Ener1's web site at www.ener1.com.