NEW CASTLE, Pa., March 30 /PRNewswire-FirstCall/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced PbC® batteries, today announced financial results for its year ended December 31, 2009.

Sales for 2009 totaled $1.8 million compared to $679,559 in 2008, an increase of 157 percent, primarily from the sale of legacy lead-acid batteries and, for the first time, PbC test batteries sold to a strategic partner. The net loss for 2009 was $18.6 million, or a $0.67 loss per basic and diluted share, compared to the net loss of $10.6 million, or a $0.46 loss per basic and diluted share for 2008. Of that loss, $10.6M was attributable to non cash expense due to derivative revaluation and beneficial conversion features of the preferred stock. All preferred stock was converted in 2009 as part of the $26.2M equity raise, so the preferred stock has been retired and the associated dividends eliminated. With the exception of R&D expense, which the Company feels strongly about increasing to maintain its advantage in the industry, all other SG&A expenses decreased in 2009. The total reduction was approximately $1.3M or 12%. "Our core technology and our PbC batteries continue to demonstrate their capabilities in a variety of important applications," said Axion Power CEO Thomas Granville. "Our strategic partners include Exide Technologies, one of the largest battery suppliers in the world with a significant presence in transportation globally. But whether it's the micro or mild hybrid vehicle market, off-grid storage of renewable energy, grid balancing or buffering, remote power sourcing or military applications, we feel PbC will prove its value as a low-cost, fully recyclable energy storage technology. Today we are developing solar power storage systems, solar powered electrical charging stations and new products for 'Smart Grid' systems, all with potentially large, global markets and with important strategic partners.

"We made excellent progress in 2009 in a number of key areas and our entire team worked diligently to overcome the business and technical challenges we faced in achieving our goals. We are continuing to work with some very large potential customers in testing and pilot programs, and our goal is to be able to launch some noteworthy contracts this year," Granville concluded.

Company accomplishments in 2009 and the first few months of 2010 include:


As of December 31, 2009, Axion Power's balance sheet showed cash and equivalents of $23.3 million, up from $3.1 million at December 31, 2008. Current assets as of December 31, 2009 were $24.8 million, the current ratio was 15.9:1 and working capital was $23.2 million. Total assets were $29 million, there was less than $650,000 in long term debt and stockholders' equity was $24.3 million.

Conference Call / Webcast

Today at 11:00 am ET (8 a.m. Pacific) a conference call will be held to review the AXPW results. Interested parties should call 866-804-6922 (domestic) or 857-350-1668 (international), with passcode 26756887 to access the call. You may also access this call via the Internet at:

http://phx.corporate-ir.net/playerlink.zhtml?c=155732&s=wm&e=2976877

For those who are unavailable to listen to the live broadcast, a replay will be available for 90 days and can be accessed by dialing 888-286-8010 (domestic) and 617-801-6888 (international) and using passcode 87823892.

About Axion Power International, Inc.

Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."

Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.

For more information, visit www.axionpower.com

Contacts


Axion Power International

Thomas Granville

(724) 654 9300


Allen & Caron Inc

Rudy Barrio (Investors)

r.barrio@allencaron.com

(212) 691-8087


Len Hall (Media)

len@allencaron.com

(949) 474-4300


FINANCIAL TABLES FOLLOW




AXION POWER INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(A Development Stage Company)




December 31, 2009


December 31, 2008

ASSETS





Current Assets:





Cash and cash equivalents


$ 23,279,466


$ 3,124,168

Short-term investments


-


2,193,920

Accounts receivable


194,315


128,035

Other receivables


208,179


64,456

Prepaid expenses


79,987


78,989

Inventory


1,008,092


1,269,515

Total current assets


24,770,039


6,859,083






Property & equipment, net


4,216,080


3,274,183

Other receivables, non-current


34,601


28,388

TOTAL ASSETS


$ 29,020,720


$ 10,161,654






LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:





Accounts payable


$ 1,375,292


$ 1,324,287

Other current liabilities


82,326


162,580

Notes payable, current


101,684


-

Total current liabilities


1,559,302


1,486,867






Deferred revenue


856,237


751,096

Derivative liabilities


1,616,788


-

Notes payable, long term


649,549


-

Total liabilities


4,681,876


2,237,963






Stockholders' Equity:





Convertible preferred stock-12,500,000 shares authorized





Senior preferred � 1,000,000 shares designated 0 issued and outstanding (137,500 in 2008)


-


1,656,735

Series A preferred � 2,000,000 shares designated 630,897 shares issued and outstanding (718,997 in 2008)


9,069,871


9,440,359

Common stock-100,000,000 shares authorized $0.0001 par value 75,767,818 issued & outstanding (26,417,437 in 2008)






7,576


2,641

Additional paid in capital


76,372,520


46,184,287

Deficit accumulated during development stage


(60,859,150)


(49,111,062)

Cumulative foreign currency translation adjustment


(251,973)


(249,269)

Total Stockholders' Equity


24,338,844


7,923,691

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY


$ 29,020,720


$ 10,161,654


The accompanying notes are an integral part of these condensed consolidated financial statements





AXION POWER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(A Development Stage Company)




Years Ended


Inception



12/31/2009


(9/18/2003) to



2009


2008


12/31/2009








Revenues


$ 1,843,592


$ 679,559


$ 3,332,439

Cost of goods sold


1,693,714


368,922


2,903,976

Gross profit (loss)


149,878


310,637


428,463








Expenses







Research & development


4,426,956


3,960,909


18,378,626

Selling, general & administrative


3,837,526


4,846,189


21,852,907

Interest expense - related party


186,063


1,137,436


2,337,986

Impairment of assets


-


-


1,391,485

Derivative revaluation


6,292,401


(2,844)


(222,267)

Mega C Trust Share Augmentation (Return)


-


-


400,000

Interest & other income, net


(14,641)


(57,224)


(548,793)

Net loss before income taxes


(14,578,427)


(9,573,829)


(43,161,481)








Income Taxes


-


(79,170)


4,300

Deficit accumulated during development stage


(14,578,427)


(9,494,659)


(43,165,781)








Less preferred stock dividends and beneficial conversion feature