EcoPlus Inc. & Subsidiares
As of April 30, 2010
CURRENT ASSETS
Cash and Cash Equivalents - $ 2,280
Other Current Assets - $ 167,857
Loan to Related Party - $ 1,599,748
TOTAL ASSETS - $ 1,769,885
Revenue Recognition
The Company’s revenue are derived from licensing fees for use of its patented technology.
RESULTS OF OPERATIONS
For the six months ended April 30, 2010 and 2009
Revenues were $21,000 and $42,000 for the six months ended April 30, 2010 and 2009, respectively. Revenues consisted of licensing charges to a related party, which as discuss in Note G, the Company has elected not to recognize additional revenues (billings) to this entity until additional information is gained concerning the certainty of the account.
NOTE G—RELATED PARTY TRANSACTIONS
The Company’s technology is licensed to Ecosolve, LLC, a company with several minority owners who are also shareholders of EcoPlus, Inc. for the periods ended April 30, 2010 and 2009.
Ecosolve, LLC had outstanding an Accounts Receivable with the Company in the amount of $411,007, which was added to the Loan Receivable outstanding in the amount of $1,151,064 for the year ended October 31, 2008 by the signing of an Uncommitted Line of Credit dated August 31, 2008. The credit line bears a 3.5% rate of interest per annum, and for the period ended April 30, 2010, the Loan Receivable outstanding was $1,599,748 and interest accrued but not received was $80,838.
As of the date of this report, the Company does not have adequate information as to the collectability of these outstanding balances. The Company has elected not to recognize further interest income, or licensing fees until additional information can be obtained.
Pursuant to a Letter of Intent, dated March, 24, 2008, the Company entered into an Asset Purchase Agreement, dated October 10, 2008, with Ecosolve, LLC along with a related property. As of the six months ended April 30, 2010 and 2009, the Company had incurred expenses in the amount of $1,049 and $27,043, respectively; primarily consisting of fees for legal counsel, license and organizational cost of a newly formed entity that was to acquire the assets of Ecosolve (See Note H). However, due to the Company’s inability to obtain the necessary financing for this acquisition, the Company, Ecosolve and the related party did not renew the purchase agreement for the property nor was the consummation of the Asset Purchase Agreement able to reach completion. One of the primary reasons for this inability to obtain funding was the overall economic condition of the finance markets for such a purchase.
Additionally, the Company owns 51% of EcoPlus West, LLC. This Company was formed to develop opportunities in the western United States on into the Pacific Rim. The Company also pays small bills for an offshore corporation named Ninety-Nine Hauling Management Services, Ltd. It has no business reasons cited for this, but does represent there is no activity in the company.
On January 2, 2008, the company entered into an agreement with Ralph W. Rogers, former officer, which he assigned to Earthcare Consulting, LLC. He will serve as a technical consultant until December 31, 2012. The company is obligated to pay $891,347 of which $94,000 has been paid through the period ended April 30, 2010. The total scheduled payments for each of the years beginning January, 2008 and ending December, 2012 are $135,000, $151,470, $174,190, $200,319 and $230,368, respectively.
