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8-K/A - FORM 8-K/A - Solar Power, Inc.d40888d8ka.htm
EX-99.1 - EX-99.1 - Solar Power, Inc.d40888dex991.htm
EX-99.3 - EX-99.3 - Solar Power, Inc.d40888dex993.htm

Exhibit 99.2

SOLAR JUICE PTY LIMITED

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2014 AND 2013

 

INDEX TO FINANCIAL STATEMENTS

  

Unaudited Interim Condensed Statements of Profit or Loss and Other Comprehensive Income

     2   

Unaudited Interim Condensed Balance Sheets

     3   

Unaudited Interim Condensed Statements of Changes in Equity

     4   

Unaudited Interim Condensed Statements of Cash Flows

     5   

Notes to the Unaudited Interim Condensed Financial Statements

     6   

 

1


UNAUDITED INTERIM CONDENSED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

FOR THE SIX-MONTHS ENDED DECEMBER 31, 2014 AND 2013

 

     Note    Six-months
ended
December 31
2014
    Six-months
ended
December 31
2013
 
          AUD ‘000     AUD ‘000  

Revenue

   3      48,698        44,778   

Cost of sales

        (45,618     (41,571
     

 

 

   

 

 

 

Gross profit

        3,080        3,207   

Interest income

   3      4        12   

Other income

   3      651        951   

Other gains and losses

        (1,446     (68

Allowance for bad and doubtful debts

        (18     (656

Depreciation and amortisation expense

        (37     (39

Consulting and other professional fees

        (149     (105

Employee benefit expenses

        (795     (533

Sales and marketing expenses

        (242     (120

Occupancy expenses

        (299     (236

Insurance expenses

        (178     (157

Travel expenses

        (58     (25

Finance costs

        255        (165

Other expenses

        (324     (193
     

 

 

   

 

 

 

Profit before tax

        444        1,873   

Income tax expense

   4      (133     (562
     

 

 

   

 

 

 

PROFIT FOR THE PERIOD

        311        1,311   
     

 

 

   

 

 

 

Other comprehensive income for the period, net of income tax

        —          —     
     

 

 

   

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

        311        1,311   
     

 

 

   

 

 

 

The accompanying notes are an integral part of these financial statements

 

2


UNAUDITED INTERIM CONDENSED BALANCE SHEETS

AS OF DECEMBER 31, 2014 AND 2013

 

     Note    December 31
2014
     December 31
2013
 
          AUD ‘000      AUD ‘000  

Current assets

        

Cash and bank balances

        3,110         3,193   

Trade and other receivables

   5      9,468         9,485   

Other financial assets

        544         572   

Inventories

        11,409         11,629   

Other

        453         997   
     

 

 

    

 

 

 

Total current assets

        24,984         25,876   
     

 

 

    

 

 

 

Non-current assets

        

Property, plant and equipment

        358         431   

Deferred tax assets

        474         275   
     

 

 

    

 

 

 

Total non-current assets

        832         706   
     

 

 

    

 

 

 

Total assets

        25,816         26,582   
     

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

   6      14,139         14,595   

Borrowings

   7      3,394         2,214   

Current tax liabilities

        —           2,722   

Provisions

        246         208   

Other liabilities

        33         9   
     

 

 

    

 

 

 

Total current liabilities

        17,812         19,748   
     

 

 

    

 

 

 

Non-current liabilities

        

Deferred tax liabilities

        27         80   
     

 

 

    

 

 

 

Total non-current liabilities

        27         80   
     

 

 

    

 

 

 

Total liabilities

        17,839         19,828   
     

 

 

    

 

 

 

Net assets

        7,977         6,754   
     

 

 

    

 

 

 

Equity

        

Issued capital

   8      —           —     

Retained earnings

        7,977         6,754   
     

 

 

    

 

 

 

Total equity

        7,977         6,754   
     

 

 

    

 

 

 

The accompanying notes are an integral part of these financial statements

 

3


UNAUDITED INTERIM CONDENSED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTHS ENDED DECEMBER 31, 2014 AND 2013

 

     Issued
capital
     Retained
earnings
    Total  
     AUD ‘000      AUD ‘000     AUD ‘000  

Balance at July 1, 2013

     —           7,443        7,443   

Profit for the period

     —           1,311        1,311   

Other comprehensive income net of tax

     —           —          —     
  

 

 

    

 

 

   

 

 

 

Total comprehensive income for the period

     —           8,754        8,754   
  

 

 

    

 

 

   

 

 

 

Payment of dividends

     —           (2,000     (2,000
  

 

 

    

 

 

   

 

 

 

Balance at December 31, 2013

     —           6,754        6,754   
  

 

 

    

 

 

   

 

 

 

Balance at July 1, 2014

     —           8,466        8,466   

Profit for the period

     —           311        311   

Other comprehensive income net of tax

     —           —          —     
  

 

 

    

 

 

   

 

 

 

Total comprehensive income for the period

     —           8,777        8,777   
  

 

 

    

 

 

   

 

 

 

Payment of dividends

     —           (800     (800
  

 

 

    

 

 

   

 

 

 

Balance at December 31, 2014

     —           7,977        7,977   
  

 

 

    

 

 

   

 

 

 

The accompanying notes are an integral part of these financial statements.

 

4


UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTHS ENDED DECEMBER 31, 2014 AND 2013

 

     Note    Six-months
ended
December 31
2014
    Six-months
ended
December 31
2013
 
          AUD ‘000     AUD ‘000  

Cash flows from operating activities

       

Receipts from customers

        51,990        48,759   

Payments to suppliers and employees

        (49,819     (47,954

Interest received

        286        12   

Interest and other costs of finance paid

        (28     —     

Net income tax paid

        (496     (959
     

 

 

   

 

 

 

Net cash (used in) / generated by operating activities

        1,933        (142
     

 

 

   

 

 

 

Cash flows from investing activities

       

Proceeds from sale of fixed assets

        —          19   

Payments for property, plant and equipment

        —          (65

Amounts advanced to related parties

        (202     —     
     

 

 

   

 

 

 

Net cash used in investing activities

        (202     (46
     

 

 

   

 

 

 

Cash flows from financing activities

       

Proceeds from repayment of the loans from shareholders

        301        —     

Proceeds from shareholders’ loan

        199        —     

Proceeds from borrowings

        1,917        —     

Dividends paid

        (800     (2,000

Repayment of borrowings

        (159     (67
     

 

 

   

 

 

 

Net cash (used in)/ generated by financing activities

        1,458        (2,067
     

 

 

   

 

 

 

Net (decrease) / increase in cash and cash equivalents

        3,189        (2,255

Cash and cash equivalents at the beginning of the period

        (79     5,448   
     

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

        3,110        3,193   
     

 

 

   

 

 

 

The accompanying notes are an integral part of these financial statements.

 

5


NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

NOTE 1—REPORTING ENTITY

Solar Juice Pty Limited (the “Company”) was incorporated on September 18, 2009. The addresses of its registered office and its principal place of business are as follows:

Unit 1

10-12 Forsyth Close

WETHERILLPARK NSW 2164

Australia

The Company is a proprietary company, incorporated in Australia. The entity’s principal activities are the distribution of solar photovoltaic panels, solar inverters and other energy efficient solutions, both domestically and internationally. On May 28, 2015, 80% of the company’s equity interests were acquired by Solar Power, Inc. (“SPI”), an entity whose common stock is traded on the Over the Counter Bulletin Board in the United States. Thereafter, SPI has become the ultimate controlling party of the Company.

NOTE 2—BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These interim condensed financial statements of the Company have been prepared in accordance with International Accounting Standards (IAS) 34 “Interim Financial Reporting” issued by the International Accounting Standards Board (“IASB”). They do not include all the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards (“IFRSs”). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the financial statements for the year ended as June 30, 2014.

The interim condensed financial statements were authorized for issue by the Board of Directors of the Company on August 6, 2015.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods.

NOTE 3—REVENUE

 

     Six-months
ended
December 31
2014
     Six-months
ended
December 31
2013
 
     AUD ’000      AUD ’000  

The following is an analysis of the company’s revenue for the period:

     

Revenue from the sale of goods

     48,698         44,778   

Interest income

     4         12   
  

 

 

    

 

 

 

Other Income:

     

- Freight income

     336         354   

- Marketing income

     314         554   

- Management fees

     —           13   

- Other

     1         30   
  

 

 

    

 

 

 
     651         951   
  

 

 

    

 

 

 

 

6


NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

 

NOTE 4—INCOME TAXES

 

(a) Income tax recognised in profit or loss

 

     Six-months
ended
December 31
2014
     Six-months
ended
December 31
2013
 
     AUD ’000      AUD ’000  

Current tax

     

In respect of the current period

     418         497   

Deferred tax

     

In respect of the current period

     (285      65   
  

 

 

    

 

 

 

Total tax expense

     133         562   
  

 

 

    

 

 

 

NOTE 5—TRADE AND OTHER RECEIVABLES

 

     December 31
2014
     December 31
2013
 
     AUD ’000      AUD ’000  

Trade receivables

     9,612         9,586   

Less: allowance for doubtful debts

     (144      (101
  

 

 

    

 

 

 
     9,468         9,485   
  

 

 

    

 

 

 

NOTE 6—TRADE AND OTHER PAYABLES

 

     December 31
2014
     December 31
2013
 
     AUD ’000      AUD ’000  

Trade payables

     13,767         13,758   

Goods and services tax payable, net

     19         —     

Customer deposits

     238         189   

Other creditors and accruals

     115         648   
  

 

 

    

 

 

 
     14,139         14,595   
  

 

 

    

 

 

 

NOTE 7—BORROWINGS

 

     December 31
2014
     December 31
2013
 
     AUD ’000      AUD ’000  

Current

     

Unsecured – at amortised cost

     

Shareholders’ loans:

     

- Andrew Burgess (i)

     3         384   

- Rami Fedda (i)

     46         425   

- Simon Tan (i)

     1,364         1,214   
  

 

 

    

 

 

 
     1,413         2,023   
  

 

 

    

 

 

 

Secured – at amortised cost

     

Bank loan – Trade Finance Imports (ii)

     1,901         —     

Bank loan – Insurance premium finance

     80         191   
  

 

 

    

 

 

 
     3,394         2,214   
  

 

 

    

 

 

 

 

7


NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

 

Summary of borrowing arrangements:

 

(i) The shareholders’ loans are non-demand loans, have no terms of repayment, are non-interest bearing, and are unsecured.
(ii) Secured by all existing and future assets and undertakings owned by the Company and AUD 6.3 million limited guaranteed and Indemnity by the directors, Rami Fedda and Andrew Burgess, the Company was granted a Trade Finance – Imports facility AUD 6 million, which is to be used exclusively for international business purposes, namely to assist with the importation of goods into Australia from overseas. Individual drawdowns requested should match the underlying trade terms of the import transaction but total financing must not exceeding 120 days after arrival of the goods in Australia. The interest rate is variable based on basic rate (advised at drawdown) plus 1.25% per annum.

NOTE 8—ISSUED CAPITAL

 

     December 31, 2014      December 31, 2013  
     AUD      AUD  

100 fully paid ordinary shares

     100         100   

 

     December 31, 2014      December 31, 2013  
     No.      AUD      No.      AUD  

Fully paid ordinary shares

           

Balance at beginning of the period

     100         100         100         100   
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance at end of the period

     100         100         100         100   
  

 

 

    

 

 

    

 

 

    

 

 

 

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from July 1, 1998. Therefore, the company does not have a limited amount of authorised capital and issued shares do not have a par value.

NOTE 9—RELATED PARTY TRANSACTIONS

 

(a) Key management personnel compensation

The aggregate compensation made to directors and other members of key management personnel (including directors’ spouses) of the company is set out below:

 

     Six-months
ended
December 31
2014
     Six-months
ended
December 31
2013
 
     AUD      AUD  

Salaries and wages

     166,400         129,600   

Post employment obligations

     15,800         11,700   
  

 

 

    

 

 

 
     182,200         141,300   
  

 

 

    

 

 

 

 

(b) Shareholders’ loans

Details of shareholders’ loans are disclosed in Note 7 to the financial statements.

 

(c) Loans to related parties

 

     December 31
2014
     December 31
2013
 
     AUD ‘000      AUD ‘000  

Unsecured – at amortised cost

     

Loans to related parties:

     

- Solar Juice Commercial Pty Limited

     208         300   

- Fabral Holdings Pty Limited

     202         —     
  

 

 

    

 

 

 
     410         300   
  

 

 

    

 

 

 

 

8


NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

 

Loans to related parties are included in other financial assets.

 

(d) Transactions between Solar Juice Pty Limited and its other related parties

During the period, the following trading transactions occurred between the company and its other related parties:

 

     Sales of goods      Purchases of goods  
     Six-months
ended
December 31
2014
     Six-months
ended
December 31
2013
     Six-months
ended
December 31
2014
     Six-months
ended
December 31
2013
 
     AUD ’000      AUD ’000      AUD ’000      AUD ’000  

Other related parties (i)

     1,243         2,189         450         3,882   

 

(i) Other related parties of the company relate to entities under the common control of either Andrew Burgess, Rami Fedda or Simon Tan, shareholders and directors of the company.

Sales of goods to other related parties were made at the company’s usual list prices. Purchases from other related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms unless otherwise stated.

The following balances were outstanding at the end of the reporting period:

 

     Amounts owed by other
related parties
     Amounts owed to other
related parties
 
     December 31
2014
     December 31
2013
     December 31
2014
     December 31
2013
 
     AUD ’000      AUD ’000      AUD ’000      AUD ’000  

Other related parties (i)

     1,033         513         30         896   

 

(i) Amounts owed by other related parties are included in trade and other receivables under Note 5. Amounts owed to other related parties are included in trade and other payables under Note 6.

NOTE 10—EVENTS AFTER THE REPORTING PERIOD

The Company received a Notice to Produce Documents request from the Australian Customs Border Protection Service in relation to the tariff classification of certain imports in October 2014, consistent with similar requests issued to other companies in the solar PV (photovoltaic) industry. Whilst no official claim for payment has been made on the company by the Australian Customs Border Protection Service, the company has submitted an application for an internal review via the Tariff Advice mechanism in January 2015 and is still awaiting a response from customs. Based on an internal review by management as well as external legal advice, the directors are confident that the company has classified its imports correctly and that no significant liability will arise. In the unlikely event of the Company being unsuccessful in this claim, the directors have estimated the liability (not including any penalties or charges if any) up to be AUD 0.9million and AUD 0.6million as of December 31, 2014 and 2013 respectively. Solar Juice is committed to working with key stakeholders including the Australian Customs Border Protection Service, The Clean Energy Council, and other industry members to obtain an industry representative solution to the Australian Customs investigation.

On May 28 2015, SPI China (HK) Limited, a wholly owned subsidiary of Solar Power, Inc., acquired 80% of the Company’s shares from the original shareholders. According to the terms agreed in the share purchase agreement between SPI China (HK) Limited and the original shareholders, the Company appointed four additional directors nominated by SPI on the same day.

In May 2015, the loans to other related parties (disclosed in note 9) have been fully repaid.

Other than the above, there has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the reporting period, that has significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

 

9