"During the six months ended June 30, 2015, we incurred operating expenses totaling $1,943,728.", and,
"Of the operating expenses in the 2015 period, non-cash general and administrative expense related to equity-based compensation totaled $529,220. Stock and options to purchase stock issued to consultants totaled $470,186, and stock and options issued to employees totaled $59,034."
The executives are also consultants, so half the money raised from investors in the first half of this year has gone to line the pockets of the insiders.
Meanwhile, the WHE engine has still not been able to run for 200 hours continuously under load. This is a condition for Phoenix Power to make a $150K progress payment. Note 4 on page 52 says that there is still $250K on the books as deferred revenue from Phoenix Power. This is the money held in escrow for the progress payment ($150K) and the purchase of 10 engines ($100K).
As long as that deferred revenue is listed on the books it is proof their engine has never survived 200 hours of running.
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