Axis Technologies Group Inc (AXTG)

[Prudent Capitalist]

Interesting info. from IR today. It had seemed as though AXTG's timing was perfect with Obama administration coming in, but now USA Today is reporting that the Obama stimulus funds for energy savings are delayed and essentially stuck in the mud. This has to eventually improve, but any expectation that funding for the states would be in place earlier this year, i.e. by May or June were unrealistic:


Below is a chart from an USA Today article on the slow pace of distribution of stimulus funds (with energy stimulus funds highlighted).

Reference link: http://www.usatoday.com/news/washington/2009-08-12-statestimulus_N.htm?loc=interstitialskip

Investor Relations for Axis Technologies
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Where stimulus funds have gone so far

The $787 billion economic stimulus bill signed into law by President Obama nearly six months ago contained $288 billion in tax cuts and $499 billion in new spending. So far, the administration has spent $76.3 billion — 15% of the total available. USA TODAY reporters Brad Heath and Matt Kelley look at where the money has gone so far and the impact it is having. Financial data reflect allocations and spending through July 31 or Aug. 5.


Defense Education Environment Energy Jobs
Total funding $7.1 billion $98.2 billion $13.2 billion $33 billion Not applicable

Amount available $1.7 billion $55.1 billion $10 billion $5 billion Not applicable

Amount paid out $50.5 million $12.4 billion $214.8 million $120.7 million Not applicable

Status Most of the money paid out so far is for construction projects such as building or renovating military base facilities or housing for servicemembers. The Air Force has spent $31.2 million on such projects so far. The Defense Department says that of the more than 1,500 contracts awarded, 78% went to small businesses. Those small-business contracts accounted for 59% of the dollars awarded. About $9.4 billion of the total spent so far is from the State Fiscal Stabilization Fund, a $48.6 billion program to avoid or mitigate cuts to education and improve their school systems. States also may use some of the money for services such as law enforcement. The department has made about $34.3 billion of this money available to states, but most of it hasn't been spent yet. Programs to speed cleanup of Energy Department nuclear weapons and research facilities accounts for $168.7 million of the spending so far. Funding has begun to trickle down to states for drinking water and wastewater projects, with $36.8 million of the $6 billion program sent to the states. EPA has spent $4.5 million of the $600 million for Superfund toxic waste site cleanup. About $63.4 million — or more than half of the money spent on energy projects so far — has gone to energy efficiency programs such as weatherization, which provides funds to make low-income households more energy efficient. The Energy Department has spent $22.3 million at its national laboratories. The Pentagon has spent about $7.4 million of its $300 million for energy research. President Obama said June 8 the stimulus had created or saved 150,000 jobs and would create or save another 600,000 jobs by Sept. 16. His Council of Economic Advisers projects 1.5 million jobs will be saved or created by year's end. The U.S. lost nearly 2.2 million jobs from February through July, the Bureau of Labor Statistics says. It's nearly impossible to tell if any specific jobs would or would not exist.

What's next The Pentagon plans to have $1.9 billion in construction projects underway by Aug. 31 and 225 finished by Labor Day. It is the department's first major deadline. States may apply this fall for $4.35 billion in competitive education grants designed to spark innovative programs under a program called "Race to the Top." EPA plans to allocate all of the money for water projects by Oct. 31. The projects must be under contract by Feb. 17 or EPA will rescind funding. Applications from businesses for $8.5 billion worth of loan guarantees for energy efficiency projects such as wind power technologies are due this month. The CEA reports on the employment effects of the stimulus Friday. The Labor Department plans to have 125,000 youths in summer jobs programs by Aug.