Executive Summary
(NASDAQ: XSNX:OB)
December 2008
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Market Profile
Sector: Renewable Energy
Industry:
Market Cap:
Share Price:
Fiscal Year: September
52 Week High-Low:
Average Trade Volume: 391,199
Shares Outstanding: 189,342,437
Float: 169,264,370
CEO: Mr. Tom Djokovich COO: Mr. Joseph Grimes
Corporate Contact
23365 NE Halsey
Investor Relations
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Located in Portland, Oregon, XsunX, Inc. (XsunX) is a thin-film photovoltaic (“TFPV”) company that is executing a phased plan to build and operate 100+ mega-watts (MW) of amorphous silicon (“a-Si”) thin film solar module manufacturing capacity. The Company is working to complete the installation of its base production infrastructure in Oregon, USA and develop initial production capacities to 25 MW in 2009 scaling to approximately 35 MW in 2010. The Company plans to begin the addition of production lines in 2010 growing capacities to over 100 MW as rapidly as possible.
XsunX believes that its proprietary manufacturing systems, module design and choice of materials may allow it to enjoy initial production costs of approximately $1.27 per watt. As the Company’s manufacturing processes and through-put are optimized, we anticipate driving production costs to sub $1.15 per watt, and longer term efforts are anticipated to produce sub $1.00 per watt costs.
The Market: An Unfulfilled Need
We believe the solar market represents a high growth opportunity nationally and internationally, both currently and into the foreseeable future. The global demand for electrical energy has experienced significant demand growth due to increases in populations and emerging economies.
Within the markets for solar products we anticipate that escalation in demand for solar products based on TFPV technologies will out perform the balance of the solar market. Comments from LUX Research, 'Solar State of the Market Q1 2008: The End of the Beginning' report, July 2008 offer the following;
“Thin-film PV technology has reached critical mass and is poised to grow to $19.7bn in sales by 2012, taking a 28% share of the solar market.”
XsunX Value Proposition
XsunX believes that it has created a commercialization roadmap that results in clear and quantifiable market advantages. The Company plans to invest approximately $50mm to install its base TFPV manufacturing infrastructure including facilities, and operations. This represents approximately less than ½ the per watt costs for similar turn key systems available through large semiconductor equipment manufacturers. Furthermore, the base facility, when fully optimized, is anticipated to be capable of annualized production capacities of 35MW providing per watt costs nearing $1.00. The Company believes that a formula of low per watt module manufacturing costs, capital equipment investment costs of less than ½ the competition, a rapid time to market, and the superior performance characteristics of amorphous TFPV may provide XsunX competitive advantages within the TFPV and broader solar product markets. |
The Strategy
XsunX’s business strategy is to deliver thin film solar products that meet the performance needs of the large solar farm and utility scale installation market. The Company is now executing a well researched and designed commercialization program that provides much needed solar thin film products using mature a-Si thin film material processes and advanced manufacturing techniques. At the center of this program is a proprietary turnkey manufacturing line for the production of high performance thin film solar modules. This process line utilizes well established “best process steps” from an assortment of high tech industries.
Competitive Performance Advantage
An analysis of solar technologies by IBIS & Associates, released in January 2008, provided insight to the Levelized Cost of Electricity (LCOE), a metric by which electricity generation technologies are compared. The study compared a group of solar technologies in a 1MW simulated installation in the Phoenix, AZ and Portland, OR areas. The study focused on technology performance, Balance of System (BOS) costs, and total projected annual AC output.
The IBIS study found cost and performance advantages in the use of the XsunX a-Si solar technology in contrast to conventional silicon wafer, and three other commercialized TFPV technologies. The report highlighted the Company’s ability to market solar modules at prices in excess of $3.20 per watt for installations in Phoenix, AZ and provide customers with the lowest cost per kW/h of produced electricity as well as the best performance among incumbent PV technologies deployed in field installations.
Shown within the context of this study, XsunX believes that its ASI-120 solar module can provide lower cost and superior performance to a marketplace seeking products that consistently and dependably deliver electricity over a wide range off installation environments.
The Product
XsunX’s ASI-120 Solar Modules are designed to deliver:
- High Power: 127.5 watt using two layers of thin film amorphous silicon (tandem junction)
- Environmentally Friendly: No heavy metals such as cadmium or lead
- UL Certifiable
- High Voltage: At 50V or 100V, the XsunX solar module is ideal for high power inverters used for commercial and residential roof top and solar field applications
- High Performance: Less loss of electrical output than standard silicon wafer modules experience in indirect light, shade, high temperatures, cloudy or hazy conditions or in Northern latitudes
Sales & Distribution
Safe Harbor Statement: Matters discussed in this executive summary contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Readers should carefully review the factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q filed by the Company and any Current Reports on Form 8-K filed by the Company. Statistics and comparative analysis charts contained in this summary express certain industry estimates and statements and are subject to the diversity of manufacturing, sales and physical aspects of solar module production and installation. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. This document contains confidential and proprietary information belonging to XsunX, Inc. and may not be duplicated.