UPDATE: Stock reopens for trade down 70 percent. Immediately halted on circuit breaker.
UPDATE: The firm says it may need to consider Bankruptcy.
UPDATE: In an 8K filing, it says, ‘certain material adverse developments that in the aggregate significantly impact its ability to meet its ongoing obligations and to fund anticipated operating losses.’
The Company’s failure to attain sales volumes of its commercial Electric Vehicle Service Equipment (“EVSE”) sufficient to support the Company’s operations in the second half of 2013. As cash flows from the EV Project declined, it was essential that the Company transition from subsidized installations of EVSEs under the EV Project to regular commercial sales and installations. To this end, the Company reorganized its sales organization to support such efforts. In addition to selling its products directly through its sales force, the Company formed commercial relationships with independent dealers for the purpose of distribution of its EVSEs and related products in the first half of 2013 with the expectation of selling substantial volumes of EVSE products in the second half of 2013. At this time, neither the Company’s direct sales force nor the independent dealers have generated sales volumes of its commercial EVSE products sufficient, in combination with other sources of revenue, to support the Company’s operations in the second half of 2013.
Shares of Ecotality (NASDAAQ: ECTY) have been halted with news pending. The stock trades an average of 883,000 shares each day and has a price of $1.46. Year to date the stock is up 247 percent.
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ECOtality, Inc., together with its subsidiaries, engages in designing, manufacturing, testing, and commercializing electric vehicle (EV) charging and energy storage systems in the United States and internationally. It primary products include the Blink line of charging stations for passenger vehicle applications, such as Blink Level 2 residential and commercial chargers, and the Blink DC Fast Chargers, as well as a turnkey network operating system for EV drivers, commercial businesses, and utilities; and the Minit-Charger line of fast-charge systems for off-road industrial applications, including material handling operations and airport ground service equipment.