Executive Summary
(NASDAQ: XSNX:OB)
May 2008
Market Profile
Sector: Renewable Energy
Industry:
Market Cap:
Share Price:
Fiscal Year: September
52 Week High-Low:
Average Trade Volume: 576,945
Shares Outstanding: 174,984,541
Float: 154,906,474
CEO: Mr. Tom Djokovich
Corporate Contact
65 Enterprise
Investor Relations
Media Relations
Email: info@xsunx.com
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Based in Aliso Viejo, California, XsunX, Inc. (XsunX) is a thin-film photovoltaic (“TFPV”) company that has begun to execute a phased plan to build and install 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 in 2008, and then grow capacities to 25 MW by early 2009, and 100 MW by early 2010.
The Company is developing the technological infrastructure to manufacture high performance, TFPV solar products at a time when market demand for such products is rapidly growing. XsunX believes that it has created a commercialization roadmap that results in clear and quantifiable market advantages.
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 growth due to growth in populations and the economic vitality of emerging economies. Within the markets for solar products we anticipate that growth in demand for solar products based on TFPV technologies will out perform the balance of the solar market.
Growth drivers that we believe may allow TFPV to outpace the balance of the solar market include:
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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 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 XASI-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 XASI-120 Solar Modules are designed to deliver:
- High Power: 127.5 rated 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
XsunX’s business strategy is to service the multi-mega watt solar farm installation market, delivering cost advantages
through the use of superior solar conversion technologies and manufacturing efficiencies. In anticipation of commercial
production, XsunX developed a pre-sales reservation program for large users of solar. As of January 2008, the
Company has signed agreements with solar system integrators indicating interest in over 140 MW of production across
calendar years 2009, 2010, 2011.
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.