For the quarterly period ended September 30, 2004

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 10-Q/A

 


 

(Mark one)

x QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2004

 

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

 

Commission file number 0-15472

 


 

Environmental Power Corporation

(Exact name of registrant as specified in its charter)

 


 

Delaware   75-3117389

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

One Cate Street 4th Floor, Portsmouth, New Hampshire 03801

(Address of principal executive offices)

(Zip code)

 

(603) 431-1780

Registrant’s telephone number, including area code

 

 

(Former name, former address and former fiscal year,

if changed since last report)

 


 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x    No  ¨

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

 

Number of shares of Common Stock outstanding at September 30, 2004        34,107,949 shares

 



EXPLANATORY NOTE

 

This Quarterly Report on Form 10-Q/A relates to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 (the “10-Q”) and is being filed to correct the Registrant’s Condensed Consolidated Statements of Operations (unaudited) for the Three Months and Nine Months Ended September 30, 2004 and September 30, 2003 included in Part I., Item 1 and appearing on page 4 of the 10-Q (the “Statement of Operations”), as follows:

 

  The line item “Operating Income (Loss)” for the three months ended September 30, 2004 should be “$2,241,839” instead of “$2,017,966”.

 

  The line item “Total Costs and Expenses” for the nine months ended September 30, 2004 should be “$45,188,905” instead of “$45,412,778”.

 

  The line item “Operating Income (Loss)” for the nine months ended September 30, 2004 should be “$(2,475,497)” instead of “$(2,699,370)”.

 

The components of each of these line items as set forth in the Statement of Operations as originally filed were correct; the foregoing changes reflect mathematical errors in adding these components. Therefore, the Registrant does not believe any of these corrections to be material.

 

PART I. FINANCIAL INFORMATION

 

ITEM I. FINANCIAL STATEMENTS

 

The Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2004 and September 30, 2003 is amended and restated in its entirety as follows:

 

ENVIRONMENTAL POWER CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2004 and September 30, 2003

 

     3 Months Ended

    9 Months Ended

 
     September 30, 2004

    September 30, 2003

    September 30, 2004

    September 30, 2003

 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenues

                                

Power Generation Revenues

   $ 15,101,828     $ 11,923,173     $ 41,043,102     $ 39,012,266  

Product Sales

     1,670,306       —         1,670,306       —    

Total Revenues

     16,772,134       11,923,173       42,713,408       39,012,266  

Costs And Expenses:

                                

Buzzard

                                

Operating Expenses (1)

     7,042,739       6,020,393       22,527,867       19,669,118  

Lease Expenses (2)

     4,759,717       4,755,927       14,373,121       14,439,348  

Microgy

                                

Cost Of Goods Sold

     1,670,306       —         1,670,306       —    

General And Administrative (3)

     1,396,605       2,220,126       4,273,030       4,437,517  

Non-Cash Compensation

     (450,572 )     —         1,987,737       515,410  

Depreciation And Amortization

     111,499       123,857       356,844       371,337  

Total Costs And Expenses

     14,530,295       13,120,303       45,188,905       39,432,730  

Operating Income (Loss)

     2,241,839       (1,197,130 )     (2,475,497 )     (420,464 )

Other Income (Expense):

                                

Interest Income

     13,763       14,263       30,436       21,465  

Interest Expense

     (180,805 )     (89,043 )     (567,869 )     (136,467 )

Amortization Of Deferred Gain

     77,103       77,102       231,308       231,308  

Other (Expense) Income

     (223,873 )     (6,265 )     (223,873 )     1,620  

Total Other Income (Expense)

     (313,812 )     (3,943 )     (529,998 )     117,926  

Income (Loss) Before Income Taxes

     1,928,027       (1,201,073 )     (3,005,495 )     (302,538 )

Income Tax Expense (Benefit)

     (305,195 )     (452,681 )     (537,584 )     98,345  

Net Income (Loss)

     2,233,221       (748,392 )     (2,467,911 )     (400,883 )

Preferred Securities Dividend Requirements Of Subsidiary

   $ (1,250 )   $ (1,250 )   $ (3,750 )   $ (3,750 )

Income (Loss) Available To Common Shareholders

     2,231,971       (749,642 )     (2,471,661 )     (404,633 )

Weighted Average Common Shares Outstanding:

                                

Basic

     34,100,340       24,373,575       30,571,543       22,669,147  

Diluted

     37,012,530       24,373,575       30,571,543       22,669,147  

Earnings Per Common Share

                                

Basic

   $ 0.07     $ (0.03 )   $ (0.08 )   $ (0.02 )

Diluted

   $ 0.06     $ (0.03 )   $ (0.08 )   $ (0.02 )

 

See Notes to Consolidated Financial Statements.

 


(1) Operating expenses include fuel costs, maintenance costs, plant labor costs, operator costs, and other costs.

 

2


(2) Lease expenses include principal, interest payments, equity rents, additional rents, and accrued lease expenses.
(3) General and administrative expenses include labor expenses, travel & entertainment expenses, insurance costs, and professional service fees.

 

PART II. OTHER INFORMATION

 

ITEM 6. EXHIBITS

 

(a) Exhibits

 

31.1   Certification of Chief Executive Officer
31.2   Certification of Chief Financial Officer
32.1   Certification of Chief Executive Officer pursuant to 18 U.S.C. §1350
32.2   Certification of Chief Financial Officer pursuant to 18 U.S.C. §1350

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

ENVIRONMENTAL POWER CORPORATION

November 17, 2004

 

/s/ R. Jeffrey Macartney


   

R. Jeffrey Macartney

   

Treasurer and Chief Financial Officer

   

(principal accounting officer and authorized officer)

 

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