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    SPI Energy Co., Ltd. Reports Unaudited Interim Report for the Six-Month Ended June 30, 2016

    HONG KONG, May 16, 2017 (GLOBE NEWSWIRE) -- SPI Energy Co., Ltd. (“SPI Energy” or the “Company”) (NASDAQ:SPI), a global clean energy market place for business, residential, government and utility customers and investors, today reported its unaudited interim report for the six months ended June 30, 2016.

    As previously reported on January 13, 2017, the Company received a letter from Nasdaq stating that the Company was not in compliance with Nasdaq listing rules because the Company had not submitted on a  Form 6-K an interim balance sheet and income statement for the six-month period ended June 30, 2016. In the letter, Nasdaq requested that the Company submit a plan to regain compliance with Nasdaq listing rules within 60 days.

    As previously reported on March 20, 2017, the Company submitted to Nasdaq a plan to regain compliance with Nasdaq listing rules and Nasdaq granted an exception to enable the Company to regain compliance, under the condition that the Company must submit its interim balance sheet and income statement for the six-month period ended June 30, 2016 on or before May 15, 2017.

    The Company hereby furnishes its Unaudited Condensed Consolidated Statements of Balance Sheet and Unaudited Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2016 (the “Interim Report”) as attached in Exhibit A. Upon filing of Form 6-K, the Company anticipates that it will regain compliance with relevant Nasdaq listing rules solely with respect to its failure to file its Interim Report.

    The Company’s Interim Report is prepared and presented in accordance with U.S. GAAP. However, they have not been audited or reviewed by the Company’s independent registered accounting firm. During the course of preparing the Interim Report, the Company noted various significant outstanding and uncertain matters, including but not limited to, its liquidity and ability to continue as a going concern, contingent liabilities arising from litigations, suspected related party transactions and unusual transactions and compliance with laws and regulations. The Company has formulated certain liquidity plan as previously disclosed on its 2015 annual report on Form 20-F. However, the Company cannot assure you that it will be able to successfully execute its liquidity plan. The level of liquidity that the Company needs may be greater than the Company currently anticipates as a result of both general industry and market factors and Company-specific factors, such as global economic slowdown, continued downturn in the global PV market, changes in the regulatory and business environments, and the ongoing dispute with the Company’s investors regarding its Solarbao investment programs. All of these and other factors and occurrences may increase the Company’s cash requirements and make the Company unable to satisfy its liquidity requirements and the Company may, as a result, be unable to continue as a going concern.

    The company is preparing and finalizing the Consolidated Financial Statement as of and for the year ended December 31, 2016. Further evidences obtained subsequently during the finalizing process may provide additional information, which may cause the Consolidated Statement of Financial Position and Consolidated Statement of Operation as of and for the six-month period ended June 31, 2016 to be adjusted accordingly. In addition, accounting estimates and assumptions made in preparing the Company’s consolidated financial statements for the financial year ended December 31, 2016 may differ from that used in Interim Report due to the differences in reporting periods and changes in the Company’s financial conditions during those periods. As a result, the Company cannot assure you that its consolidated financial statements as of and for the year ended December 31, 2016 will not contain significant difference, adjustment or discrepancies from its Interim Report. The Company’s historical results do not necessarily indicate results expected for any future periods.

    Exhibit A
    SPI Energy Co., Ltd. Unaudited Condensed Consolidated Statements of Balance Sheet and Unaudited Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2016.

    SPI Energy Co., Ltd.
    Unaudited Condensed Consolidated Balance Sheet
    (In thousands, except for share and per share data)  
         June 30,    December 31,
         2016    2015
    Current assets:        
    Cash and cash equivalents   $ 31,015     $ 82,124  
    Restricted cash     7,443       83,191  
    Accounts receivable, net of allowance for doubtful accounts of $27,810 and $36,553,
        44,224       73,383  
    Accounts receivable, related party     110       -  
    Notes receivable     9,680       3,541  
    Costs and estimated earnings in excess of billings on uncompleted contracts, net of
    allowance for doubtful accounts of $15,655 and nil, respectively
        22,150       32,426  
    Inventories, net     15,049       27,245  
    Project assets     41,178       35,355  
    Prepaid expenses and other current assets     44,034       41,197  
    Other receivable, related parties     38       2,589  
    Finance lease receivable     15,328       12,518  
    Total current assets     230,249         393,569  
    Intangible assets     4,409       4,526  
    Goodwill     75,969       75,969  
    Accounts receivable, noncurrent     7,652       7,463  
    Other receivable, noncurrent     550       550  
    Notes receivable, noncurrent     5,769       6,399  
    Property, plant and equipment, net     124,485       125,793  
    Project assets, noncurrent     48,281       60,371  
    Derivative asset     -       2,328  
    Investment in an affiliate     11,913       13,950  
    Deferred tax assets, net     832       848  
    Finance lease receivable, noncurrent     39,260       17,804  
    Total assets   $ 549,369     $ 709,570  
    Current liabilities:        
    Accounts payable   $ 77,420     $ 97,803  
    Accounts payable, related parties     7,723       5,128  
    Notes payable     9,073       34,301  
    Accrued liabilities     29,252       26,741  
    Income taxes payable     3,716       4,002  
    Advance from customers     25,656       19,693  
    Short term borrowings     94,384       160,400  
    Convertible bonds     55,000       54,062  
    Other current liabilities, related parties     62       42  
    Other current liabilities     36,661       71,379  
    Total current liabilities     338,947       473,551  
    Financing and capital lease obligations     23,194       8,796  
    Long term borrowings     6,081       4,451  
    Deferred tax liability, net     4,275       4,199  
    Other noncurrent liabilities     42,469       2,015  
    Total liabilities       414,966         493,012  
    Commitments and contingencies     -       -  
    Stockholders’ equity:        
    Common stock, par $0.000001, 150,000,000,000 shares authorized, respectively;
    641,665,172 and 639,065,172 shares  issued and outstanding, respectively
        64       64  
    Additional paid in capital       481,771         475,492  
    Accumulated other comprehensive loss     (17,707 )     (16,509 )
    Accumulated deficit     (333,122 )     (246,068 )
    Total equity attributable to the shareholders of the Company       131,006         212,979  
    Noncontrolling interests     3,397       3,579  
    Total stockholders’ equity       134,403         216,558  
    Total liabilities and stockholders’ equity   $ 549,369     $ 709,570  

    SPI Energy Co., Ltd.  
    Unaudited Condensed Consolidated Statements of Operation 
    (In thousands, except for share and per share data)  
         For the Six Months Ended
         June 30,
         2016     2015 
    Net sales:        
    Net sales   $ 65,396     $ 59,879  
    Cost of goods sold:        
    Cost of goods sold     (54,856 )     (48,954 )
    Provision for losses on contracts     (396 )     (329 )
    Total cost of goods sold     (55,252 )     (49,283 )
    Gross profit     10,144       10,596  
    Operating expenses:        
    General and administrative     17,284       49,915  
    Sales, marketing and customer service     16,525       12,404  
    Provision for doubtful accounts and notes and impairment
        52,560       -  
    Total operating expenses     86,369       62,319  
    Operating loss     (76,225 )     (51,723 )
    Other income (expense):        
    Interest expense     (3,796 )     (3,878 )
    Interest income     830       1,665  
    Change in fair value of derivative asset/liability     (2,328 )     -  
    Loss on investment in affiliates     (6,551 )     -  
    Net foreign exchange gain     1,309       3,443  
    Others     (324 )     142  
    Total other expense, net     (10,860 )     1,372  
    Loss before income taxes     (87,085 )     (50,351 )
    Income tax expense     (255 )     (1,306 )
    Net loss   $ (87,340 )   $ (51,657 )
    Net loss attributable to noncontrolling interests     (286 )     (53 )
    Net loss attributable to stockholders of the Company   $ (87,054 )   $ (51,604 )
    Net loss per common share:        
    Basic and Diluted     (0.14 )     (0.09 )
    Weighted average number of common shares used in computing per share
    Basic and Diluted       641,457,479         595,100,462  

    About SPI Energy Co., Ltd.

    SPI Energy Co., Ltd. is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the downstream PV market including the development, financing, installation, operation and sale of utility-scale and residential solar power projects in China, Japan, Europe and North America. The Company operates an innovative online energy e-commerce and investment platform, www.solarbao.com, which enables individual and institutional investors to purchase innovative PV-based investment and other products; as well as www.solartao.com, a B2B e-commerce platform offering a range of PV products for both upstream and downstream suppliers and customers. The Company has its operating headquarters in Hong Kong and maintains global operations in Asia, Europe, North America and Australia. For additional information, please visit: www.spisolar.com

    Safe Harbor Statement

    This release contains certain “forward-looking statements.” These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and the Company undertakes no obligation to update or revise any forward-looking statements, except as may be required under applicable securities law.

    For investors and media inquiries please contact:
    SPI Energy Co., Ltd.
    IR Department
    Email: ir@spisolar.com

    SPI Energy Co., Ltd.