Between February 2010 and April 2010, Balqon raised $1,500,000 through the sale of its convertible notes and warrants in a private placement transaction. Between July 2010 and December 2010, Balqon raised an additional $850,000 through the sale of its senior secured convertible debentures and warrants in a private placement transaction. In December 2010, Balqon raised an additional $5,000,000 through the issuance of 7,812,500 shares of common stock and a five-year warrant to purchase 7,812,500 shares of common stock at an exercise price of $0.64 per share, subject to adjustment. The gross proceeds of $7,350,000, less offerings costs, were allocated to current and future working capital needs.
"Our determination in 2010 to implement a global sales strategy for our electric drive systems and battery systems technologies has produced significant results in early 2011," said Balwinder Samra, CEO of Balqon Corporation. "Our global sales and new product development efforts have resulted in a 674 percent increase in our backlog to approximately $18.5 million in April 2011, consistent with our belief that the global market for electric vehicles is growing rapidly."
As of April 12, 2011, Balqon had a backlog of approximately $18,540,429 as compared to $2,747,856 in April 2010. A significant portion of this backlog consists of electric drive systems ordered by OEMs of buses and trucks located in emerging markets such as China and India. The purchase order for 300 electric drive systems from Winston Global Energy, an affiliate of Balqon’s Chairman of the Board, and orders for Balqon’s Nautilus XE20 electric yard tractors, from Port of Los Angeles and Ford Motor Company, are also included in Balqon’s backlog.
During 2010, significant management resources were utilized in raising capital to improve liquidity which culminated in a $5,000,000 equity raise in December 2010. As of December 31, 2010, Balqon had working capital of $1,955,146. The Company’s available capital resources on December 31, 2010 consisted primarily of approximately $4,407,273 in cash and cash equivalents. Balqon expects that its future available capital resources will consist primarily of cash on hand, cash generated from its business, if any, and future debt and/or equity financings, if any.
Headquartered in Harbor City, California, Balqon Corporation is a leading developer of zero-emissions electric drive systems, lithium battery systems and medium to heavy-duty electric vehicles. Balqon’s proprietary electric drive system encompasses complete power management, propulsion, flux vector motor controllers and energy systems. Balqon electric vehicles and drive systems are marketed globally to companies, governments and municipalities looking for viable and effective ways to reduce their vehicle maintenance and operating costs and lower carbon emissions. Balqon is recognized as a pioneer in commercial electric vehicle technology and development of energy efficient transportation solutions.