This Quarterly Report on Form 10-Q/A contains forward-looking statements. When used in this Quarterly Report on Form 10-Q/A, the words "anticipate," "believe," "estimate," "will," "plan," "seeks," "intend," and "expect" and similar expressions identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. Our actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied, by the forward-looking statements contained in this Quarterly Report on Form 10-Q/A. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in this Quarterly Report on Form 10-Q/A. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in this Quarterly Report on Form 10-Q/A. Except as required by federal securities laws, we are under no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Critical Accounting Policies
There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations", included in our Annual Report on Form 10-K for the fiscal year ended
a. Results of Operations Revenues
For the three months ending
For the three month period ending
Since the Company's inception, on
The financial statements included with this quarterly report have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets business. As of
These conditions raise substantial doubt about the Company's ability to continue as a going concern. Our financial statements do not include any adjustments that might arise from this uncertainty.
Plan of Operation
Management believes, if it can begin selling its MDU in fiscal year 2013-2014, the Company will be able to generate profit during the coming year. Management believes that revenue from MDU sales will most likely exceed any anticipated expenses for the coming year.
The Company's need for capital may change dramatically if it can generate additional revenues from its operations. In the event the Company requires additional funds, the Company will have to seek loans or equity placements to cover such cash needs. There are no assurances additional capital will be available to the Company on acceptable terms.
Summary of any product research and development that we will perform for the term of our plan of operation.
1. Dual shipping container configuration - The expanded system now requires two 40'X8' conex
boxes to house additional tanks and equipment. The boxes are to be installed side by side
with a 36'' wide by 6'-8'' tall man opening between the two boxes.
2. Piping and Hoses - Modular piping, valve, and piping racks have been designed to
accommodate quicker assembly of the units. Individual racks will be assembled with quick
connect hoses, control valves, and pumps then moved into place within the MDU for quick
3. Installation Rails - Steel slide rails are provided on one side and the ceiling of each of the
containers. The modular support racks quickly tie into the rails. With the support racks locked
in place with the support rails the racks now act as tank support and lockdown.
4. Distiller - The distiller has been reduced in size and volume and provided with 4 cracking
towers instead of 3. In addition the tank is now provided with a copper wire mesh screen
below the coil, a copper evaporative plate located above the coil, and a stainless steel
distribution header. The copper evaporative plate improves the flow of the ethanol production
from the distiller tank. The plate has dimples and small 1/16th diameter holes and larger
openings below each of the cracking towers. The lid lifting handle has also been improved to
where it can be folded out of the way of foot traffic when the lid is closed. The tank lid will also
be provided with improved lockdown clamps.
5. Cooling system - A closed loop chilled water system is now a part of the unit. With a small (1
ton) air cooled chiller the closed loop will cool down the cracking towers and tower condensers
with more efficiency and controllability. Additionally the system will provided cooling to the
pasteurization system as described in item #6. The new cooling system significantly
decreases water usage.
6. Water - A pasteurization system has been added which ensures all of the tanks to be free of
contamination. Source water provided to the MDU will either flow through a flat plate
exchanger or pass through a coil located in the stillage tank to increase the temperature of the
water from 65F to 180F at a minimum. Once the water is heated is passed through a filtration
system and then cooled back down prior to feeding the fermentation process.
7. Tank cleaning - A control valve has been added at the pasteurization system where 180F
water can be diverted to each of the fermentation tanks at 50 gallons at time to sanitize the
tanks via rotary unions and spinning spray arms prior to the fermentation process.
8. Rigid piping systems - The closed loop heating system piping has been changed from a
conventional sweat fitting system to a pro-fit system which increases assembly time and
eliminates leaks due to poor workmanship. The closed loop cooling system will also be a profit
system. Pro-fitŪ is a product of
9. Distiller distribution - The previous MDU was equipped with a 1,000 psi pump that provided
fermentation to the misting ring located within the distiller tank. This has been removed and
replaced with a standard pressure feed pump and stainless steel header located at one end of
the copper evaporative plate.
Patent Application No. 61/909,919, Ref. No. 0348730-PROV3 for the MEG, formally known as "Electrical Generation System, Method of Producing Electrical Energy, And Manufacturing An Electrical Generation System" was filed on
MEGs can be deployed singly to produce 50kW of power or in series where more capacity is needed, producing energy in multiples of 50kW. The MEG is quiet enough to place next to a hotel, and environmentally clean enough to operate even inside a building. It can be powered by a wide variety of fuels, making it usable in both developed and developing countries. Significant research and development will be performed as the MEG prototype is built this year and brought online.
We are developing other energy systems to complement the MDU and the MEG, such as concentrated solar power (CSP) and biodiesel production. Multiple products are now in development and will be systematically brought online as each is ready. These and other systems now in development will require significant research and development as they are brought to market.
Expected purchase or sale of plant and significant equipment
With the exception of Modular Distillation Units, we do not anticipate the purchase or sale of any plant or significant equipment; as such items are not required by us at this time.
Significant changes in the number of employees
Liquidity and Capital Resources
The Company has limited financial resources available, which has had an adverse impact on the Company's liquidity, activities and operations. These limitations have adversely affected the Company's ability to obtain certain projects and pursue additional business. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. In order for the Company to remain a Going Concern it will need to find additional capital. Additional working capital may be sought through additional debt or equity private placements, additional notes payable to banks or related parties (officers, directors or stockholders), or from other available funding sources at market rates of interest, or a combination of these. The ability to raise necessary financing will depend on many factors, including the nature and prospects of any business to be acquired and the economic and market conditions prevailing at the time financing is sought. No assurances can be given that any necessary financing can be obtained on terms favorable to the Company, or at all.
JA Energy Funding Requirements
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.
Critical Accounting Policies and Estimates
Revenue Recognition: We recognize revenue from product sales once all of the following criteria for revenue recognition have been met: pervasive evidence that an agreement exists; the services have been rendered; the fee is fixed and determinable and not subject to refund or adjustment; and collection of the amount due is reasonable assured.
New Accounting Standards
Management has evaluated recently issued accounting pronouncements through