DENVER, CO -- (Marketwire) -- 03/07/12 --
Update on current operations in China
AgriSolar Solutions Inc.'s (OTCBB: AGSO) solar insect killer is one of the products that has been tested and authorized by the State Forestry Administration of the People's Republic of China for use in helping control pests in national forests. The State Forestry Administration has special funding available for purchase of authorized products, and AgriSolar expects to receive an initial purchase contract from the agency during March 2012.
In addition, the Plant Plantation Station, an arm of the China Ministry of Agriculture, has conducted extensive testing on AgriSolar's products. The agency issued a study report that educates farmers on the advantages of using these products, which has resulted in substantial order increases for AgriSolar under the existing Ministry of Agriculture subsidy program.
Due to its established reputation, AgriSolar was requested to work with and assist the China Scientific and Technology Institute (Electrical Department) in developing minimum product specifications to be applicable to new solar insect killer products developed for market placement in China. Specifications include product testing for temperature, operation in various weather conditions, battery life, types of light bulbs, and timing control (to protect non-harmful insects).
Update on operations outside of China
In May 2011, AgriSolar entered into a European Distribution Agreement with ACT 3 Partners LLC ('ACT 3'), which appoints ACT 3 as the exclusive distributor of AgriSolar products for the countries belonging to the Council of Europe (except Hungary & Russia). The agreement has an initial term of 5 years. Under the terms of the agreement, if AgriSolar does not appoint a distributor for Hungary by May 31, 2012, Hungary will also become part of the territory covered by the European Distribution Agreement. The agreement with ACT 3 does not have a minimum purchase requirement for 2011, but provides a minimum purchase requirement of $1,000,000 for 2012 and subsequent years. If ACT 3 fails to meet the minimum purchase requirements for 2012 or for subsequent years, AgriSolar has the right to terminate the agreement.
In addition to the above, ACT 3 has nonexclusive distribution rights throughout the world in countries other than China, portions of Canada and those countries where they have exclusive rights.
Since its appointment in May 2011, ACT 3 has actively established business operations and developed potential distribution channels. This effort has included design and development approval for operating a distribution company within the European Economic Union, Eastern Europe, and Russia. ACT 3 also secured an agreement with Amazon Corporation to manage its web-based product sales through contacts with individuals in Central and Eastern Europe, Russia, the Middle East, North Africa, South Africa, and Argentina. In addition, ACT 3 has participated in trade fairs in Holland (greenhouse market), vegetable expositions in Italy (Mediterranean field market), and an AgriTechnica Exposition (Eastern European field farming industry) in Germany.
Additional Shows attended:
Australian Information and Communications Technology Fair CEBIT 2011
May 31- Jun. 2, 2011
Oct. 5-7, 2011
The 59th International Agricultural Exhibition in Australia
Borenore NSW, Australia
Oct. 18-20, 2011
Nov. 13-19, 2011
CIEM (China Import & Export Commodities Exhibition [Malaysia])
Kuala Lumpur, Malaysia. Dec. 8-11, 2011
Based on the ongoing efforts of ACT 3, AgriSolar expects to begin making sales of its products outside of China during 2012.
Financial Summary as of December 31, 2011
December 31, 2011 March 31, 2011 Financial Position (Unaudited) (Audited) Total current assets $ 14,692,735 $ 9,761,494 Total current liabilities $ 10,880,870 $ 5,944,147 Total assets $ 16,014,254 $ 11,092,696 Total liabilities $ 10,880,870 $ 5,944,147 Total stockholders' equity $ 5,133,384 $ 5,148,549 Operations Three Months Ended December 31, 2011 December 31, 2010 (Unaudited) (Unaudited) Revenues, net $ 4,153,789 $ 1,790,117 Gross profit $ 1,367,684 $ 505,976 Net income (loss) $ 28,110 $ (6,467) Net income (loss) attributed to common stockholders $ 4,278 $ (18,725) Comprehensive income (loss) $ 34,429 $ 30,350 Net income (loss) per share - basic $ 0.00 (0.00) Net income (loss) per share - diluted $ 0.00 (0.00)
Nine Months Ended December 31, 2011 December 31, 2010 (Unaudited) (Unaudited) Revenues, net $ 11,093,806 $ 7,622,563 Gross profit $ 3,215,780 $ 2,459,210 Net income (loss) $ (542,694) $ 265,279 Net income (loss) attributed to common stockholders $ (610,329) $ 229,921 Comprehensive income (loss) $ (495,935) $ 300,343 Net income (loss) per share - basic $ (0.01) $ (0.00) Net income (loss) per share - diluted $ (0.01) $ (0.00)
AgriSolar Solutions, Inc., through its operating affiliate, Shenzhen Fuwaysun Technology Company Limited (Shenzhen Fuwaysun), is primarily engaged in the development, production and sale of solar products, including a solar insect killer and other products designed for agricultural and commercial use. The company's manufacturing facility is located in Shenzhen, People's Republic of China (PRC). AgriSolar has previously focused its efforts on the marketing and sale of its line of solar insect killers within the agricultural industry in China, and as of March 31, 2011, the Company has a total in excess of 100,000 units of its solar insect killer product line installed on farms throughout China. As described above, AgriSolar has recently begun to focus efforts on marketing and sale of its line of solar insect killers in countries other than China. Establishing distribution channels for areas outside of China helps to eliminate the seasonality of the Company's business in China, and is part of the process of developing global markets for the company's products.
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