Form 10QSB for HYDRO ENVIRONMENTAL RESOURCES INC
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5-Dec-2003
Quarterly Report
ITEM 2. PLAN OF OPERATION
HYDRO ENVIRONMENTAL RESOURCES, INC.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of federal securities laws. These statements plan for or anticipate the future. Forward-looking statements include statements about our future business plans and strategies, statements about our need for working capital, future revenues, results of operations and most other statements that are not historical in nature. In this Report, forward-looking statements are generally identified by the words "intend", "plan", "believe", "expect", "estimate", "could", "may", "will" and the like. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statues or regulations, the Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise. Because forward-looking statements involve future risks and uncertainties, these are factors that could cause actual results to differ materially from those expressed or implied.
We plan to satisfy our cash requirements, over the next twelve months, through cash infusions from our officers and principal shareholders, in exchange for restricted stock. However, we will need to raise additional capital in the next twelve months. Our management is considering the following options:
(a) a private offering and sale of our common stock; (b) a public offering and sale of our common stock; (c) a combination of private and public sale of our common stock; (d) debt financings from officers, shareholders and unrelated third parties.
As of September 30, 2003, all cash infusions from the former president and other related parties have been classified as liabilities in the accompanying condensed balance sheet.
A summary of our product research and development for the term of the plan is as follows:
We have performed research on the recovery and reconstruction of compounds used by the ECHFR to produce hydrogen. It is estimated that over 40 percent of these patented-formula compounds can be reused, possibly lowering the cost of production by as much as 25 percent. In addition, there are several potentially profitable by-products created by the ECHFR that we could market worldwide, such as:
(a) An on-site power plant could possibly be designed for particular needs where electricity and/or gas are necessary to process cooking oil; and
(b) In the treatment of wastewater at abandoned mine sites and other wastewater dumps or quarries, the ECHFR could possibly operate the process by creating power from the actual wastewater to be treated
Subject to the implementation and success of one or more of the financing options discussed above, we plan to expand our capabilities to include commencing production during 2004. Once we have commenced production, we plan to hire two to three additional technical personnel.
PART 1. FINANCIAL INFORMATION
ITEM 3. CONTROLS AND PROCEDURES
(a) Evaluation of disclosure controls and procedures
We maintain controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date of this report, our chief executive officer and the principal financial officer concluded that our disclosure controls and procedures were adequate.
(b) Changes in internal controls
There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation of those controls by the chief executive officer and principal financial officer.
