ALBUQUERQUE, NM–(Marketwired – May 21, 2015) – Enerpulse Technologies (OTCQB: ENPT) manufacturer of PulstarĀ® spark plugs, announced today its financial results for the first quarter ended March 31, 2015.

First Quarter Highlights

  • Closed $3.05 million senior subordinated convertible notes on February 20, 2015
  • Sales revenue is up in 13% over prior year same period
  • Gross profit is up 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015
  • Margins improved substantially over prior year same period from 6.5% to 48%, due to a number of factors including better utilization of production labor and direct overhead for period ending March 31 2015

Corporate Update for First Quarter Ended March 31, 2015:

“The first quarter marked an important time for Enerpulse Technologies,” commented Joe Gonnella, Chief Executive Officer of Enerpulse Technologies. “We successfully completed our private placement and are now able to move forward on a number of fronts and execute our operational strategy.”

Mr. Gonnella continued, “We are busy commercializing additional product models to support the Natural Gas vehicular and industrial markets. We are also launching a targeted marketing plan to promote aftermarket growth specific to the highly responsive performance vehicle and motorcycle segments. These successes represent key milestones in generating increased revenue and are central to our continued commitment to move toward profitability in the automotive aftermarket and Natural Gas channels. We also continue to engage automotive and Natural Gas engine OEM’s with collaborative testing which will generate greater shareholder value in the long term.”

For more information call 888-800-6700 or please visit www.enerpulse.com.

Results for Three Months Ended March 31, 2015:

For the three months ended March 31, 2015, the Company reported revenue of $110 thousand, an increase of 13.2% compared to $97 thousand for the three months ended March 31, 2014. The increase in revenue was, primarily due to the introduction of the Pulstar with PlasmaCore new product line midyear 2014.

The company’s gross profit increased by 733% from $6 thousand for the three months ended March 31, 2014 to $53 thousand for the three months ended March 31, 2015 as a result of the increase in sales offset by decreased costs of sales driven by manufacturing process improvements, improved labor utilization and improved design and operating procedure related to the release of Pulstar with PlasmaCore. The gross profit margin was 47.9% for the three months ended March 31, 2015, which is higher than that of 6.5% for the three months ended March 31, 2014, due primarily to the above factors impacting favorably on March 31, 2015 and transition to new components during the three months ended March 31, 2014.

Our Selling, general and administrative expenses decreased by 10.5% from $698 thousand for the three months ended March 31, 2014 to $625 thousand for the three months ended March 31, 2015. The decrease reflects the efforts by the Company to limit spending until the closing of the February 20, 2015 debt offering.

Cash and cash equivalents totaled $2,238 thousand at March 31, 2015, up from $17 thousand on December 31, 2014. The increase is due to the successful completion of the private placement of senior secured convertible notes on February 20, 2015 and receipt of the associated proceeds.

About ENERPULSE (OTCQB: ENPT)

Enerpulse Technologies, Inc. is a publicly traded company headquartered in Albuquerque, N.M. Founded in 2004; the company develops and manufactures ultra-high performance, low emissions ignition products through the application of pulse power technology. For more information, visit www.enerpulse.com.

Safe Harbor / Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Information provided by the Company such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “planned,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates,” and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations, marketing and sales; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including market conditions, risks associated with the cash requirements of our business and other risks detailed from time to time in our filings with the Securities and Exchange Commission, and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

ENERPULSE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2015 2014
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 2,338,482 $ 17,077
Accounts receivable, net 89,613 73,572
Inventory, net 311,270 337,297
Other current assets 6,250 22,981
Total current assets 2,745,615 450,927
Intangible assets, net of accumulated amortization of $136,748 (2015) and $128,444 (2014) 498,928 483,982
Property and equipment, net 154,050 173,963
Other assets 21,699 118,557
Total assets $ 3,420,292 $ 1,227,429
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
Accounts payable $ 455,489 $ 554,747
Accrued expenses 175,245 135,968
Current portion of capital lease obligations 24,737 24,737
Total current liabilities 655,471 715,452
Long-Term Liabilities
Capital lease obligations, net of current portion 14,844 20,778
Notes payable, net of offering costs and discounts 1,289,799 248,225
Warrants liability 952,176 817,250
2,256,819 1,086,253
Total liabilities 2,912,290 1,801,705
Commitments and Contingencies
Stockholders’ Equity (Deficit)
Preferred stock, 10,000,000 shares authorized; no shares issued and outstanding; $0.001 par value
Common stock, 100,000,000 shares authorized; 14,532,381 and 13,732,381 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively; $0.001 par value 14,533 13,733
Additional paid-in capital 27,741,913 26,812,046
Note receivable, related party (204,610 ) (204,100 )
Accumulated deficit (27,043,834 ) (27,195,955 )
Total stockholders’ equity (deficit) 508,002 (574,276 )
Total liabilities and stockholders’ equity (deficit) $ 3,420,292 $ 1,227,429
See notes to accompanying unaudited consolidated financial statements.
ENERPULSE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2015 2014
Sales $ 109,958 $ 97,164
Cost of sales 57,307 90,844
Gross profit 52,651 6,320
Selling, general and administrative expenses 625,264 698,476
Loss from operations (572,613 ) (692,156 )
Other income (expense), net
Fair value adjustments of derivative liabilities 762,630
Other expense, net (37,896 ) (10,110 )
Other income (expense), net 724,734 (10,110 )
Net income (loss) $ 152,121 $ (702,266 )
Net income (loss) per common share (basic and diluted) $ 0.01 $ (0.08 )
Net income (loss) per puttable common share (basic and diluted) $ $ (0.08 )
Weighted average number of shares outstanding (basic and diluted) – common 13,830,158 8,732,381
Weighted average number of shares outstanding (basic and diluted) – puttable common

131,287

See notes to accompanying unaudited consolidated financial statements.
ENERPULSE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
2015 2014
Cash Flows From Operating Activities
Net income (loss) $ 152,121 $ (702,266 )
Adjustments to reconcile net income (loss) to net cash used inoperating activities:
Stock-based compensation 18,527 37,050
Amortization 8,304 7,196
Depreciation 13,803 12,446
Amortization of debt discount 63,438 7,908
Fair value adjustments of derivative liabilities (762,630 )
Interest on note receivable, related party (510 ) (505 )
Provision for doubtful accounts 5,093 1,305
Provision for obsolete inventory 15,500
Loss on disposal of equipment 8,000
Changes in operating assets and liabilities:
Accounts receivable (21,134 ) 8,832
Inventory 10,527 (21,525 )
Accounts payable 9,485 363,403
Accrued expenses 39,277 (65,009 )
Other 4,846 3,085
Net cash used in operating activities (435,353 ) (348,080 )
Cash Flows From Investing Activities
Purchase of property and equipment (1,890 ) (7,561 )
Purchase of intangible assets (23,250 ) (12,127 )
Net cash used in investing activities (25,140 ) (19,688 )
Cash Flows From Financing Activities
Payments on deferred equity offering costs (7,938 )
Proceeds from notes payable, net of offering costs 2,837,832 230,000
Payments on capital lease and notes payable (55,934 ) (1,734 )
Net cash provided by financing activities 2,781,898 220,328
Net increase (decrease) in cash and cash equivalents 2,321,405 (147,440 )
Cash and cash equivalents at beginning of period 17,077 281,607
Cash and cash equivalents at end of period $ 2,338,482 $ 134,167
Supplement cash flow information:
Cash paid for interest $ 1,333 $ 2,680
Noncash investing and financing activities:
Warrants issued related to debt offering costs $ 137,655 $
Common stock issued related to debt offering costs $ 160,000 $
Deferred equity offering costs accrued $ $ 181,568
See notes to accompanying unaudited consolidated financial statements.

For further information, contact:

Heather Tausch

Director of Marketing and Communications

505-999-2005

htausch@enerpulse.com