The following discussion and analysis should be read in conjunction with the
consolidated financial statements and related notes included in this report and
those in our Form 10-K filed with the
The purpose of the company is to offer energy producer's contractual engineering services and develop alternative power products that will assist these producers in reducing cost and operate more efficiently. To date, operations have been on a limited basis. Since our inception, we have focused on developing the company, research and development, and the commercialization of our new products. Recently we began acquiring inventory for the production of company's patent pending new battery technology. These batteries provide an environmentally friendly, inherently safe, internally temperature regulated un-interruptible power supply for oil and gas well location monitoring and measurement equipment. By the end of first quarter 2014, these batteries had proven effective in the field, and in
Since the company's inception, the company has accomplished key milestones outlined in our 2013-2014 statement of work. A majority of the monies spent to date have been for initial financing actives related to creating a public company, developing new products, R&D cost, and purchasing inventor for production. We anticipate that by the end of third quarter 2014, the company will become profitable, and that the initial cost for formation activities will be greatly reduced, and the majority use of capital will be in research and development of new products.
A condensed version of our anticipated 2014 Statement of Work is as follows:
1. Finalize test results in the field for new battery technology. (3/14) (complete) 2. Open manufacturing facility offices in
Louisiana. (5/14) (complete) 3. Begin production of our first line of products (6/14)( complete) 4. Develop new products (7/14-12/14) (on going) 5. Search for merger acquisitions for Engineering, Oil, and Gas production (ongoing)
Results of Operations for the Three Months ending
At June the end of first quarter 2014, we had total assets of
Revenues for the three months ended
Cost of Revenues
Cost of Revenues for the three months ended
Total operating expenses for the three months ended
Net loss for the three months ended
Results of Operations for the Six Months ending
Revenues for the six months ended
Cost of Revenues
Cost of Revenues for the six months ended
Total operating expenses for the six months ended
Net loss for the six months ended
Liquidity and Capital Resources
Critical Accounting Policies and Estimates
Our critical accounting policies are disclosed in our Form 10-K filed with the
The Company recognizes revenue for sales and billing for freight charges upon delivery of the product to the customer at a fixed and determinable price with a reasonable assurance of collection, passage of title to the customer as indicated by shipping terms and fulfillment of all significant obligations, pursuant to the guidance provided by Accounting Standards Codification ("ASC") Topic 605. For sales to all customers, including manufacturer representatives, distributors or their third-party customers, these criteria are met at the time product is shipped. When other significant obligations remain after products are delivered, revenue is recognized only after such obligations are fulfilled. In addition, judgments are required in evaluating the credit worthiness of our customers. Credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured. The Company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly.
Accounts receivable represents the uncollected portion of amounts recorded as revenues. Management performs periodic analyses to evaluate all outstanding accounts receivable to estimate an allowance for doubtful accounts that may not be collectible, based on the best facts available to management. Management considers historical collection patterns, accounts receivable aging trends and specific identification of disputed invoices in its analyses. After all reasonable attempts to collect a receivable have failed, the receivable is directly written off.
Inventories are stated at the lower of cost, determined on a first-in, first-out basis ("FIFO"), or market, including direct material costs and direct and indirect manufacturing costs.
Property, plant and equipment is recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years for furniture, fixtures, and equipment. Expenditures for repairs and maintenance are charged to expense as incurred.
RESEARCH AND DEVELOPMENT COSTS
Research and development costs, predominately internal labor costs and costs of materials, are charged to expense when incurred.
SHIPPING AND HANDLING CHARGES
The Company incurs costs related to shipping and handling of its manufactured products. These costs are expensed as incurred as a component of cost of sales. Shipping and handling charges related to the receipt of raw materials are also incurred, which are recorded as a cost of the related inventory.
Since our incorporation, we have raised capital through private sales of our common equity. As of
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 of operations, liquidity, capital expenditures or capital resources that is material to investors.