This Quarterly Report on Form 10-Q contains forward-looking statements and
involves risks and uncertainties that could materially affect expected results
of operations, liquidity, cash flows, and business prospects. These statements
include, among other things, statements regarding:
our ability to diversify our operations;
inability to raise additional financing for working capital;
the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain;
our ability to attract key personnel;
our ability to operate profitably;
our ability to generate sufficient funds to operate the US-TH ENERGY SCIENCE AND TECHNOLOGY INT'L, INC. operations, upon completion of our acquisition;
deterioration in general or regional economic conditions;
adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;
changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate;
the inability of management to effectively implement our strategies and business plan;
inability to achieve future sales levels or other operating results;
the unavailability of funds for capital expenditures;
other risks and uncertainties detailed in this report;
as well as other statements regarding our future operations, financial condition and prospects, and business strategies. These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular, the risks discussed under the heading "Risk Factors" in Part II, Item 1A and those discussed in other documents we file with the
References in the following discussion and throughout this quarterly report to "we", "our", "us", "US-DADI", "the Company", and similar terms refer to US-TH ENERGY SCIENCE AND TECHNOLOGY INT'L, INC. unless otherwise expressly stated or the context otherwise requires.
OVERVIEW AND OUTLOOK Background
The Company is a solar and geothermal production-infrastructure equipment exporter. We will sell production equipment to buyers on an international basis. We have a twenty year contract with
The Company's financial statements are prepared using generally accepted accounting principles in
The Company is currently contemplating an offering of its equity or debt securities to finance continuing operations. There are no agreements or arrangements currently in place or under negotiation to obtain such financing, and there are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.
RESULTS OF OPERATIONS
During the three months ended
Operating expenses during the three months ended
We have not been profitable from our inception in 2010 through
Liquidity and Capital Resources
The following table sets forth a summary of our cash flows for the three months ended
Three Months Ended Three Months Ended March 31, 2013 March 31, 2012 Net cash used in operating activities $ (1,400) $ (11,090) Net cash used in investing activities - - Net cash provided by financing activities 1,400 (719) Net increase (decrease) in Cash - (11,809) Cash, beginning 155 18,338 Cash, ending $ 155 $ 6,529
Since inception, we have financed our cash flow requirements through issuance of common stock. As we expand our activities, we may, and most likely will, continue to experience net negative cash flows from operations, pending receipt of listings or some form of advertising revenues. Additionally we anticipate obtaining additional financing to fund operations through additional common stock offerings, to the extent available, or to obtain additional financing to the extent necessary to augment our working capital.
We anticipate that we will incur operating losses in the next twelve months. Our lack of operating history makes predictions of future operating results difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets. Such risks for us include, but are not limited to, an evolving and unpredictable business model and the management of growth. To address these risks, we must, among other things, obtain a customer base, implement and successfully execute our business and marketing strategy, continually develop and upgrade our website, provide national and regional industry participants with an effective, efficient and accessible website on which to promote their products and services through the Internet, respond to competitive developments, and attract, retain and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our business prospects, financial condition and results of operations.
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities for the period ended
We believe that cash flow from operations will not meet our present and near-term cash needs and thus we will require additional cash resources, including the sale of equity or debt securities, to meet our planned capital expenditures and working capital requirements for the next 12 months. We will require additional cash resources due to changed business conditions, implementation of our strategy to expand our sales and marketing initiatives, increase brand awareness, or acquisitions we may decide to pursue. If our own financial resources and then current cash-flows from operations are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities will result in dilution to our stockholders. The incurrence of indebtedness will result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict our operations or modify our plans to grow the business. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, will limit our ability to expand our business operations and could harm our overall business prospects.
Off-Balance Sheet Arrangements
We did 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 of operations, liquidity, capital expenditures or capital resources that is material to investors.