November 2008 SEC Filing:
(This is not your average penny stock.)
"...At September 30, 2008, we had $6,251,372 in total assets and $3,382,850 in total liabilities, resulting in a stockholders' equity of $2,868,522. Our net working capital deficit at September 30, 2008 was ($2,060,972), which is a decrease in working capital since December, 31, 2007 of $3,401,339.
During the nine months ended September 30, 2008, we incurred a net loss of ($5,613,769), which included $789,355 in non-cash expenses relating to equity issuance and compensation transactions and $1,064,197 in non-cash depreciation expense and an ($835,966) charge to record our derivative liabilities. For the three months ended September 30, 2008, we incurred a net loss of ($2,468,222), which included $128,750 in non-cash expenses relating to equity issuance and compensation transactions and $361,963 in non-cash depreciation expense and ($835,966) charge to record our derivative liabilities.
During the nine months ended September 30, 2008, our revenues were limited because our 10 Mw Montgomery County facility was placed in service during the first quarter and we experienced significant down-time as we refined and resolved our start-up issues, developed new operating protocols and resolved the typical problems associated with placing a new generating facility in service. Our revenues for the first nine months of 2008 were adversely impacted by seasonally low electric prices. While our revenues were low during the first nine months, our operating expenses were higher than normal because of the non-recurring costs associated with the start-up of our Montgomery County facility, the non-recurring costs of registering our securities under the Exchange Act, and use of higher priced feedstock and fuel inventories that we purchased in 2007. Additionally, we experienced a serious disruption in our business due to Hurricane Ike including the shutdown of the electrical grid into which we sell our power. For the remainder of the year, we expect our cost of sales to decline significantly as a direct result of reduced start-up expenses and significantly reduced fuel costs. We also expect our outlays for legal and accounting services to decline significantly.
We believe our available resources, together with our anticipated operating revenue and the anticipated proceeds of certain planned short-term borrowings, will be sufficient to pay our anticipated operating expenses for a period of three to six months from the date of this quarterly report on Form 10-Q. Our available resources are not sufficient to pay all of our anticipated capital costs and we are presently seeking additional financing. We believe we will need at least $20 million in additional capital to finance our planned facility expansions and future acquisitions. Capital requirements are difficult to plan for companies like ours that are developing novel business models. We expect that we will need additional capital to pay our day-to-day operating costs, finance our feedstock and fuel inventories, and finance additions to our infrastructure, pay for the development of additional generating facilities and the marketing of our green electricity. We intend to pursue additional financing as opportunities arise."