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journie let me clarify there are two sunvalley solar comps. The way I found out is on facebook:) this one has nothing to do with ours and I think they are in AZ
journie that is a different sunvalley solar in az I believe
some folks got rid of some very large positions accorcing to etrade. That is why I fired some shots to load up a bit. I think the chinese company will have to become very very active if ssol is to make serious gains as in az. I think they will and that might be what is actually going on. Would not be surprised as I told you in my area it is quite competitive
journie just read az report. I like it
@ Luto yep long and strong
yep Teddy I paused for a minute then bought. For some reason this little train is special to me and I dont know why. Usually do options and do fairly well but stopped all of that to try and invest in this company. Target is in site if it drops one more time which (I really hope it does not )will pull the trigger.
wow I am new at this but if you don't have people to talk to as you trade or invest that could scare the s@# out of you. Good looking out
I just picked up 70 thousand at 0.01 I hope I am not crazy lol
no I meant with some news. To me financials was not news
some news should get us to .05. I think that is where we should be
@Richfrom agreed. I got a reality check after the financials. It will be a minute but I think we all will be ok
@ richfrompennys I solute you. Congrats you are an inspiration too
I lost a friend to stroke age 47 in nov. I have so much respect for you as I know it has to be difficult. Keep positive and looking forward.
Yep Journie I really hope you get very wealthy as hard as you work :) I am serious :) :)
@ Fredman agreed
as to the.01 comment I see your point but since I have been involved with this stock (.0033) it has not traded with the rest of solar. I dont think it will trade with the sector for quite some time
Hey journie I no longer live there but lived there for 20 years. I visit m family once every year there. I can say that there are a lot of solar projects in the area by many different companies. The comp is heavy from what I can gather. Does not sway me away but as to your question I do not know that specifically.
bama I only posted this after I saw the number of people since your post who wanted to do it. My post was a looking forward post thats all
@ Rocket agreed
I will tell you one thing. I am from the area (vessy farms etc). It is a very very conservative area. If they are bombarded with calls they will tell other potential clients of sunvalley solar. That said DD is a right and must be done. Just thought folks should know who they are calling
nice post Bender
from what I see clearly there was no reason to hold the financials this long unless there is a game plan. It just better be a good one
thanks TwinDaddy I was waiting on your view
exactly clean I would really like some help from others understanding why we should be so happy. I really did not see much. Unless I just dont know what to look for
the auditor was there when I spoke to them in feb. Please explain
newbie
I would like to know opinions on 10k
yahoo I just posted it here
Form 10-K for SUNVALLEY SOLAR, INC.
31-Mar-2011
Annual Report
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements." These forward-looking statements generally are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to:
changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Business Development Plan
The primary components of our growth strategy are as follows:
? Developing and commercializing our proprietary solar technologies including our coating and focusing technologies, racking and panel cleaning system. By deploying these new technologies into our PV panels and solar installation business, we hope to enhance the value provided to our customers and increase our profitability.
? Promoting and enhancing our company's brand and reputation in solar design and integration and expanding our installation business from Southern California to Northern California, Arizona or other states.
? Developing a PV panel manufacturing capability to provide high efficiency and low cost solar panels to US market. This will complement our installation business and provide an implementation platform for our R&D.
? Getting involved in the private power providing business (Distributed Power Plants). Developing this line of business will lead to higher profit margins and income to our business. In the future, this line of business could become one of our main income sources.
Expansion of Installation Business
We are planning to expand its installation business from Southern California to Northern California, Arizona or other states in two to three years. We will continue to execute our marketing and sales strategy in Southern California and, with additional capital, will be able to expand our business to cover Northern California, Arizona or other states. The planned expansion is expected to occur through acquiring smaller installation companies in these regions and/or through the establishment of subsidiaries in these states and boost our installation profits. Our current intention is to establish two new offices located in Northern California or other states and in San Diego. The estimated start-up cost for each new branch would be approximately $500,000.
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If we are able to expand our installation business, it will assist us in gaining favorable terms from OEM international manufacturers of our planned solar panel manufacturing operation. In addition, an expanded installation business would allow us to accelerate the introduction of our new technologies and solar parts and would generate additional revenue to fund initial investment in our planned Distributed Power Plant business and to further fund our investments in R&D.
Commercialization of Research and Development
Prior to initiating our planned OEM manufacturing of Sunvalley-branded solar panels, we will need to commercialize our advanced panel technology through the design, fabrication, and characterization of a prototype solar cell. The total expense for planned commercialization of our research and development will be approximately $500,000. The necessary equipment and facilities will be accessed from University of California, San Diego. The Nano3 clean room facilities in the school of Engineering at UCSD are equipped with state-of-the-art micro and nano fabrication equipment and facilities, and can be accessed by outside users with a $107 hourly fee.
The interference pattern that will be recorded in the solar cells will be obtained using an Argon laser operating at 362nm. This laser and its associated equipment is available to us through a special arrangement with the administration office in the University of California, San Diego, as well as the Ultrafast and Nano-scale Optics lab in the Department of Electrical and Computer Engineering in UCSD.
Other equipment will also be required, including coating machine for PV panel testing.
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Initiate OEM Manufacturing of Solar Panels
By leveraging its solar panel installation business and R&D, we plan to procure OEM solar panels from selected Chinese manufacturers and to market them in the U.S. under our brand name. We will be responsible for R&D, quality control, customer service, sales and marketing activities, as well as panel certification in U.S.
The estimated OEM panel cost is less than $1.40 per watt. As a reference, currently, the lowest panel price is around $1.80 per watt (Mono-crystalline, Polycrystalline). We can use our own sales and installation platform to showcase the new panels and drive sales of the new panels in the U.S market. Meanwhile, we will continue our R&D effort on panel coating and other advanced technologies and apply the results to its panel manufacturing business. The goal will be to further improve the efficiency, lower the cost of solar panels with our proprietary technologies, and to grow our market share.
Our marketing strategy for its planned OEM solar panels is as follows:
? Set-up a platform to showcase our innovative solar panel technologies and make Sunvalley solar panels a household name.
Unlike other merchandise, solar panel is very unique in that it requires very high level of quality assurance and customer satisfaction. Providing satisfactory customer service and technical support is absolutely vital in solar panel sales. As the first step, we will strive to make its brand a household name. The Sunvalley solar panel will be used by our installation business as well as several other installation companies which have partnerships with us. We do not currently have partnerships with other solar installation companies, but we plan to pursue them after introducing the panels to the market through our own installation business. A marketing campaign aimed at other solar installation companies will help to achieve this goal. We will use our own installation business as the platform to showcase the product quality and build up consumer awareness of its brand.
? Penetrate into the main stream distribution network
By leveraging early successes and customer trust earned from our initial installations, we plan to penetrate into the mainstream distribution network with our OEM solar panels.
? Further sale activities
Once our brand name solar panels become well known, our sales team will begin an aggressive marketing campaign to connect the individual sales points (distributors and venders) to form a distribution network. The marketing campaigns will also include attending trade shows, advertising in the media (TV commercials and newspaper advertisement) and designating local representatives to boost the market share and brand awareness.
? Offer a low cost, high efficiency solar panel derived from advanced research
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To boost our solar panel market share, our R&D team will work with our OEM partner to apply selective coating technique and other cutting edge technologies to further reduce the manufacturing cost and improve the panel efficiency.
The total capital required to initiate our planned panel manufacturing business would be approximately $2,000,000 which can be categorized into three parts:
? Registration and Certification of OEM panels with our brand - $300,000, including UL certification fees, CEC registration fees, and lab testing fees.
? Initial Inventory - $1,500,000. We will need to keep at least 4 containers of PV panels in the warehouse in order to support sales of 5~10M watts per year, which means we will need to have over $1,000,000 in inventory for PV panels only. An additional $300,000 in inventory would be needed in order to keep the requisite amount of inverters and racking and panel cleaning systems. In addition, we anticipate providing variable payment terms to different customers based on their creditworthiness; this will add additional cash flow pressure.
? OEM Management costs - $200,000
Develop Distributed Power Plan Business
With our resources and experience gained from large scale solar power system designs, installation and other related business, we believe we have unique advantages in the design and installation of large roof-top power plant systems. We are aggressively proposing our Distributed Power Plant solution to utility companies in Southern California. We believe that by collaborating with us on this approach, utility companies will benefit in the form of free installation, field space, and our expertise on large commercial solar system designs, installation and maintenance services, as well as our technical and management experience. By collaborating with us, utility companies can help to achieve their alternative energy requirements under California law.
We are pursuing substantial contracts with some of our current installation customers who control or own over 2,000,000 square feet of roofs on warehouses or other buildings in Southern California. We are also seeking additional private space agreements with other commercial customers. We are among the few companies in California that has the permit and expertise to install large-scale commercial and/or government solar power systems, together with roof constructional design and building interior/exterior electrical designs. We believe additional advantages are provided by our experience in filing solar power system permit applications and rebate applications and our expertise gained through our experience with governments and utility companies.
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Results of Operations for the Years Ended December 31, 2010 and 2009.
During the fiscal year ended December 31, 2010, we generated gross revenues of $4,634,140. Total cost of sales was $3,924,330, resulting in gross profit of $709,810. Operating expenses were $1,080,905. We experienced other income in the amount of $11,147 and interest expense of $15,891. The net loss for the fiscal year ended December 31, 2010 was therefore $375,839.
By comparison, we generated gross revenues of $4,413,033 during the fiscal year ended December 31, 2009. Total cost of sales was $3,804,905, resulting in gross profit of $608,108. Operating expenses for 2009 were $1,219,905. We experienced other income in the amount of $40,000 and interest expense of 16,062. The net loss for the fiscal year ended December 31, 2009 was therefore $587,859.
In 2007 and 2008, the majority of our revenue came from our solar system design and installation business, including both residential and commercial projects. Specifically, in 2008, we produced $2.63 million in revenue from solar system design and installation. The gross profit margin of the solar installation business is approximately 20%.
Although we had expected to see an increase of over 150% in our solar installation business in 2009, our solar installation business and the solar industry as a whole was badly affected by the global economic crisis started in late 2008. During 2009 and 2010, because banks and investment institutes were very reluctant to loan money to solar customers, many potential solar power system customers suspended their plans to invest in new solar power systems. This development, in turn, had a negative impact on our solar installation business in 2009 and 2010. In order to reduce the risk to our business presented by these developments, we expanded our operations to include a new solar equipment distribution business beginning in November of 2008. We established distribution partnerships with Canadian Solar Inc., CEEG SST, Tainwei Solarfilms, and PV Powered Inc., to distribute solar panels, solar inverters and other solar equipments to their clients in the U.S. Although the gross margin for our distribution business is less than 10%, this line of business contributed to the majority of our gross revenues in 2009 and 2010.
Liquidity and Capital Resources
As of December 31, 2010, we had current assets in the amount of 3,097,062, consisting of cash in the amount of $546,164, accounts receivable of $546,388, inventory in the amount of $1,925,233, other receivables of $7,481, and prepaid expenses and other current assets of $71,796. As of December 31, 2010, we had current liabilities in the amount of $2,994,330. These consisted of accounts payable and accrued expenses in the amount of $2,883,316, accrued warranty in the amount of $27,688, customer deposits of $70,070, and the current portion of long term debt in the amount of $13,256. Our working capital as of December 31, 2010 was therefore $102,732.
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Our accounts payable and accrued expenses as of December 31, 2010 consisted of the following:
Accounts Payable $ 2,780,527
Credit Card payable $ 44,789
Accrued vacation $ 14,905
Other accrued expense $ 22,995
Payroll liabilities $ 1,068
Sales tax payable $ 18,232
State Income tax payable $ 800
Total $ 2,883,316.00
As of December 31, 2010, our only long-term liability was a loan owing to East West Bank with a balance of $87,525. The current portion due within the next year is $13,256. The principal amount outstanding accrues annual interest at the bank's variable index rate (approx. 6.00% as of December 31, 2010). The East West Bank loan is collateralized by all business assets.
In order to move forward with our business development plan set forth above, we will require additional financing in the approximate amount of $4,500,000, to be allocated as follows:
Initiate OEM Manufacturing $ 2,000,000
R &D Commercialization Costs $ 500,000
Expansion of Installation Business (3 new branches) $ 1,500,000
Additional working capital and general corporate $ 500,000
Total capital needs $ 4,500,000
We will require substantial additional financing in the approximate amount of $4,500,000 in order to execute our business expansion and development plans and we may require additional financing in order to sustain substantial future business operations for an extended period of time. We currently do not have any firm arrangements for financing and we may not be able to obtain financing when required, in the amounts necessary to execute on our plans in full, or on terms which are economically feasible.
We are currently seeking additional financing through the sale of common equity, including the sale of common equity to Auctus Private Equity Fund, LLC through a Draw-Down Equity Financing Agreement, and/or the issuance of debt convertible to common equity. If we are unable to obtain the necessary capital to pursue our strategic plan, we may have to reduce the planned future growth of our operations.
Going Concern
We have experienced recurring losses from operations and had an accumulated deficit of $958,924 as of December 31, 2010. To date, we have not been able to produce sufficient sales to become cash flow positive and profitable on an ongoing basis. The success of our business plan during the next 12 months and beyond will be contingent upon generating sufficient revenue to cover our costs of operations and/or upon obtaining additional financing. For these reasons, our auditor has raised substantial doubt about our ability to continue as a going concern.
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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, results or operations, liquidity, capital expenditures or capital resources that is deemed material.
Purchase or Sale of Equipment
We do not expect to purchase or sell any plant or significant equipment.
on the other board they are saying the 10k is out
picked up 140 thousand I am out of ammo
thanks dig my hope is to hold much longer than .10 :) :)
got some fire power today. Coming in at the open with 68000 shares. Should have some more tomorrow. Twin Closing in on 3 mil. I hope I am not crazy but I feel good about this baby
there is that .018 again at the ask. Every morning around this time it pops up
question. Is it true they have to release financials this week? Just checking if anyone knows
oh noooo I am a newbie. Learning from you and twindaddy :) :)
bama I agree. From what I have seen action based culture
Let's just be honest. The e thing not good but I would much rather hear nothing and know this company is moving forward with projects they have already won than to hear that they are not. Trust me if the were screwing up we would hear about that!. That said I know I have been able to buy more at low levels. I thought they have to release financials this week if not please correct me. I am in a great sector full of growth potential and we have not spoken of the new tech pending. If we look at the history of the company they like doing things in waves about three months apart. Worst case I plan to increase my position through April. I fully expect news just not on my time line. I now have patience :) :)
thanks Dig
I dont know maybe its me reaing without my glasses :)
I dont know maybe its me reaing without my glasses :)