• Aug 17th 2011 at 10:54AM
  • 12
Ener1, a pioneer of lithium-ion batteries for plug-in vehicles, has warned that it might not have sufficient funds to remain operational as a result of losses from its investment in Think Global, a Norwegian automaker that declared bankruptcy in late June.

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."
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Ener1 Announces Intention to Restate Financial Results

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.

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    • 1 Second Ago
      • 4 Years Ago
      I guess bit many or maybe none of the western auto battery companies will survive in the long term. I get the feeling that making half decent but somewhat affordable batteries maybe isn't that hard so the car companies may bring it all in house?
      Dan Frederiksen
      • 4 Years Ago
      It was a bad call, Ripley. It was a bad call. speaking of which, google buying motorola phones..
      • 4 Years Ago
      Serves them right. Like Fisker, the battery corps by into the car corps so they will use their batteries. This increases their sales on paper but not their profits. If the battery corps would rather buy into the car corps for placebo sales rather than sell to the public for real sales it serves them right when the OEM's take their batteries and profit and go bankrupt. Make a good battery and actually sell it to some one instead of this accounting sham. Seems easy to miscalculate your losses. Ener1 accountants were only off by 100 million, who is keeping the books, Donald Duck? Worse yet Donald Trump?
      • 4 Years Ago
      I never got the impression that their battery was anything more than garden variety, and high priced to boot. But I am surprised at the financial difficulty as they were claiming that the automotive battery was only a small part of the company. Can't remember their other products, but mostly for military.
      Nick From Montreal
      • 4 Years Ago
      What were they expecting? They went public without an established marquee client, opting instead for a cash-strapped startup. Who would bet their future on an automaker with multiple previous bankruptcies? Meanwhile A123 finally signs with GM after years of trying, which will allow them to attract other established automakers. The demand is there, they simply failed to execute.
        • 4 Years Ago
        @Nick From Montreal
        I believe it was A123 who bought into Fisker in the same manner that Ener1 bought into Think. When these battery corps take huge government loans and grants they should not be allowed to make risky investments until they pay back the money. Sell the product, don't buy into your customer so they will buy your product.
      • 4 Years Ago
      They need some customers. The seem to have a decent product but the battery market can't be expected to take off quickly with EVs only slowly starting to enter the market.
        • 4 Years Ago
        What makes you think they had a good product? I could find no specifications, just vague statements about "advanced technology". They couldn't find any automaker willing to buy their product, so bought into Think. That was clearly an act of desperation, and a big gamble. All this suggest to me that their battery was below average at best and over priced.
          Jim McL
          • 4 Years Ago
          It is a better battery than the ones used by Tesla and ACP (see the Mini E specs for ACP). The Ener1 battery can accept charge below zero degrees F, so less thermal management is needs in most cases. The Mini E stops charging around 32 F, and Tesla uses an expensive and complex liquid based thermal management system to deal with the poor temperature characteristics of laptop cells which are not optimized for Automotive temperature ranges. For Ener1 battery Specs, go to thinkev-usa.com and find the "owners" section at the bottom of the page, the manuals are there. Read carefully because the primary European market for Think is also covered, and that market was dominated by the hot liquid salt battery until recently. Talk about good winter performance, that Zebra battery is unbeatable in cold. But it has to be plugged in at least every 3 days or so to keep it hot and the charging gets rather slow as it approaches full, even slower than Li Ion.
      • 4 Years Ago
      Another bankrupcy for bov ( battery only vehicule ) .
      • 3 Years Ago
      ...Let´s see, this makes four, (4), IV ecological environmental, energy companies that have gone belly-up under the Obummer administration, with OUR tax dollars! Now, in the "private sector" if anyone had such a poor batting average they would have long since been considered "redundant", and re-sizing would have occured, but in this administartion, it seems they relish the idea of throwing our money away. Obummer should have been eliminated a long time ago, by the bungling of his appointees our grandchildren and yes our great grandchildren are going to be paying for his tenure in office. This is a very bad day for America. We don´t stand for failed projects and, unlike Fisker, we don´t send needed jobs to other countries when we have such a grave need right here at home. I rest my case.
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