Randy
Well-known member
ECOtality trading has been halted with this news. The DOE has stopped EV Project payments, no more new DOE obligations....ECOtality acknowledges EVSE overheating as well....
http://breakingfinancenews.com/breaking/breaking-ecotality-halted-news-pending-ecty/2566/" onclick="window.open(this.href);return false;
(iv) The Company has been notified by the U.S. Department of Energy (“DOE”) that the DOE is suspending payments to the Company in
connection with the EV Project. In an abundance of caution on August 8, 2013, the Company notified the DOE that, even though the Company
continues to aggressively pursue certain options for additional financing and is exploring other alternatives, in the event additional financing is
not obtained, the Company may not be able to fulfill its operational obligations, including under the EV Project. In response, the DOE sent a
letter to the Company stating that it is suspending all payments under the EV Project while it investigates the situation and determines whether
the award should continue. This suspension has had a significant impact on receivables that were anticipated to be collected from the DOE, in
addition to remaining amounts anticipated to be invoiced and collected under the EV Project.
(v) In the August 8, 2013 letter, the DOE also notified the Company that the Company is not authorized to incur any new cost or obligation
under the award and that the DOE would not reimburse the Company for such costs during the suspension. Further, the DOE instructed the
Company to provide notices to its vendors and subcontractors of the suspension.
Further, the Company is facing some uncertainty regarding the resolution of a phenomenon occurring in some of the Company's previously installed EVSEs which causes overheating, and in certain rare cases melting, of the connector plug that connects the EVSE to the electric vehicle when charging. The Company, along with certain automotive original equipment manufacturers ("OEMs") and equipment suppliers, has been actively evaluating the issue in an attempt to determine the cause and to address the problem. Even though a root cause for the observed phenomenon is yet to be definitively verified, in the interim, on August 9, 2013, the Company commenced the reduction of the maximum power delivered by certain of the EVSEs, which reduction has been shown in limited laboratory test to reduce the temperature rise in the connector plug to acceptable levels. The Company continues to discuss with the parts supplier of the connector plug a plan of action which would require the parts supplier to pay to replace either all the connector plugs in its existing EVSE units or those connector plugs identified to be problematic. At this time, the Company cannot assure you that negotiations will result in the parts supplier agreeing to incur the cost of such remediation. Accordingly, the Company may have to incur such costs and expenses in the future. In addition, some OEMs have notified the Company that they are considering communicating to their customers and other parties to advise them not to use the Company's EVSEs because of the connector plug issue if the Company does not replace all connector plugs on its approximately 12,000 existing EVSEs in the market. The Company believes such a communication may have a material adverse impact on the near term cash flow and prospects of the Company.
http://breakingfinancenews.com/breaking/breaking-ecotality-halted-news-pending-ecty/2566/" onclick="window.open(this.href);return false;
(iv) The Company has been notified by the U.S. Department of Energy (“DOE”) that the DOE is suspending payments to the Company in
connection with the EV Project. In an abundance of caution on August 8, 2013, the Company notified the DOE that, even though the Company
continues to aggressively pursue certain options for additional financing and is exploring other alternatives, in the event additional financing is
not obtained, the Company may not be able to fulfill its operational obligations, including under the EV Project. In response, the DOE sent a
letter to the Company stating that it is suspending all payments under the EV Project while it investigates the situation and determines whether
the award should continue. This suspension has had a significant impact on receivables that were anticipated to be collected from the DOE, in
addition to remaining amounts anticipated to be invoiced and collected under the EV Project.
(v) In the August 8, 2013 letter, the DOE also notified the Company that the Company is not authorized to incur any new cost or obligation
under the award and that the DOE would not reimburse the Company for such costs during the suspension. Further, the DOE instructed the
Company to provide notices to its vendors and subcontractors of the suspension.
Further, the Company is facing some uncertainty regarding the resolution of a phenomenon occurring in some of the Company's previously installed EVSEs which causes overheating, and in certain rare cases melting, of the connector plug that connects the EVSE to the electric vehicle when charging. The Company, along with certain automotive original equipment manufacturers ("OEMs") and equipment suppliers, has been actively evaluating the issue in an attempt to determine the cause and to address the problem. Even though a root cause for the observed phenomenon is yet to be definitively verified, in the interim, on August 9, 2013, the Company commenced the reduction of the maximum power delivered by certain of the EVSEs, which reduction has been shown in limited laboratory test to reduce the temperature rise in the connector plug to acceptable levels. The Company continues to discuss with the parts supplier of the connector plug a plan of action which would require the parts supplier to pay to replace either all the connector plugs in its existing EVSE units or those connector plugs identified to be problematic. At this time, the Company cannot assure you that negotiations will result in the parts supplier agreeing to incur the cost of such remediation. Accordingly, the Company may have to incur such costs and expenses in the future. In addition, some OEMs have notified the Company that they are considering communicating to their customers and other parties to advise them not to use the Company's EVSEs because of the connector plug issue if the Company does not replace all connector plugs on its approximately 12,000 existing EVSEs in the market. The Company believes such a communication may have a material adverse impact on the near term cash flow and prospects of the Company.