Energy Mad flags $1.4 million of impairment
Energy Mad [NZX: MAD], the energy efficient light bulb marketer, has flagged a $1.4 million impairment and lowered the value of research and development intangible assets to $400,000 ahead of announcing full-year earnings next week.
The impairment recognised a reduced value for R&D for its older compact fluorescent lamps which have now been superseded by its Ecobulb LED range, the Christchurch-based company said in a statement. It took an end of year stock provision of $200,000 on the older range. Last year Energy Mad reported a $2.5 million loss, including writing off a $2 million tax benefit for the six months ended September, as it struggled to secure a foothold in the Australian and US markets.
Shares in the New Zealand Alternative Exchange-listed company were unchanged at 36 cents and have gained 50 percent year-to-date. The share price surged in January to reach 69 cents after the light bulb maker announced deals with online retailer Amazon and retail chain Walgreens to sell its bulbs in the US market before falling on issues of stock availability.
Energy Mad has suffered a series of setbacks since its IPO in 2011, consistently missing prospectus forecasts. In October last year the company was fined $30,000 by the NZX for not issuing a profit warning soon enough.