Biocentric Energy Holdings, Inc. (BEHL)

[nodummy]

About to look over the quarterly report filed today

http://img01.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=43691


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First thing I noticed is they left and E off the address

The proper address is 7730 E Gelding, Scottsdale AZ

If you are doing web searches try that - several businesses share that same address


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Since they gave us two different share counts I'm inclined to go with the higher number. Usually if a company is going to "error" they tend to "error" in their favor

Share Count
Authorized 5,000,000,000
Outstanding 3,915,092,477


Which would mean they sold 2 Billion shares since the increase in October and that's just as of December 31, 2010


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Item XII Financial information for the issuer’s most recent fiscal period.

This compilation was partially completed by Frank Rawson, CPA and in-house CFO. Frank Rawson CPA License # 37172/California Contracted by Company
Frank Rawson has a bachelor of arts from Stanford University in Economics. Post Graduate work in accounting and finance at Cal State University, Long Beach and Cal State University Fullerton. His CPA license was issued in 1980 and is currently inactive. Frank Rawson is not an officer of the company, but is employed by the company, was a director until December 17th, 2010, and is therefore, not independent.


I wonder who did the rest of the financials. The quarterly report doesn't say


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Went through the financials some

Assets first





Property and Equipment - $286,540

Which is higher than on Dec 31, 2009 - I expected that to be lower

They don't give us much details (specifics)

Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the estimated useful lives using the straight-line method as follows:
Office Furniture and Equipment 3 to 5 years
Production Equipment 5 years
Laboratory Equipment 3 to 5 years
Leasehold Improvements: Term of the Lease 5 to 15 years


Death valley project development costs $317,462


How is a cost considered an asset?


Provisional patents $2,154,000

According to the filings all the patents are still pending

patents, trademarks, licenses, franchises, concessions, royalty agreements or labor contracts, including their duration

Patent Pending
Application number - 61/208,354 - PAS Closed Loop System
Six other submissions to USPTO for Patent Pending Status


Apparently patents don't have to be approved before they can be added to your assets

Not sure how you value a patent but that sure is one way to pretty up your asset sheet


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Liabilities next





Accounts payable - $157,960

Accrued Expense - $53,194

IRS Debt - $66,420

Notes Payable (Debt Notes) - $1,047,647

They give us no details on the Debt Notes (who the money was borrowed from)

They do tell us that $769,647 worth of debt Notes were taken out by the company in 2010 and that after one year those debt Notes can be converted into stock

A series of non-interest bearing advances made beginning April 2010 from a non-affiliated company through December 31, 2010 which will be reduced to a series of notes payable with one year maturities convertible into common stock at rates ranging between $0.004 and $0.001 per share.
Total for 2010 = $769,647
April 2010 - $160,000
May 2010 - $38,000
June 2010 - $73,500
July 2010 - $89,100
August 2010 - $224,00
September 2010 - $58,050
October 2010 - $66,900
November 2010 - $51,097
December 2010 - $9,000

Total = $769,647


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Revenues/Losses

They claim $157,800 in sales and a $231,859 cost of sales which means they lost $74,059 through sales.

What did they sell anyways?

Net loss of $1,573,702 for 2010 which was better than 2009 probably because of all the cutbacks to the staff and not paying anybody for several weeks



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Other Stuff:

As of December 29th, 2010 Management has authored a Private Placement to raise sufficient capital to move BEHL back on track to profitability by December 31st, 2011

Looks like they have already approved the sale of a bunch more stock. Hopefully they do the proper filings for that private placement.


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They have new legal counsel:

3. Counsel William F. Doran Phoenix, Arizona

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They have no beneficial owners


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As a result of a re-organization of BEHL, Michael E. Burton was granted 75,000,000 shares of preferred as a signing bonus to take control of BEHL and adopt policies and procedures to create associations, joint ventures, licensing agreements, and affiliations for the betterment of BEHL. These preferred shares are not convertible for two years from date of issue with a bleed out agreement as per SEC regulations

Recipients Restricted Preferred
Nancy Fisher 10,000,000 125,000
Michael E. Burton 75,000,000

Recipients Restricted
Attillo Tortorice , 21,730,000
Terry Adams 10,864,000
Steve Hayden 15,043,000

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Apparently BEHL still has some other officers and employees?

a. Michael E. Burton, COB, President, Secretary and Treasurer
b. Paul McGuire, Chief Technical Adviser
c. Russell D. Noel – Remote Construction Manager
d. Patrick Kuydenhall - Skunk Works Manager

Michael E Burton (pronounced Miq-kel) 48 years old Born in a small province outside of Geneva, Switzerland and currently residing in Stockholm Sweden. Enrolled in a Commonwealth Joint Community Nations Task-force for the safety and care of Commonwealth residents in underprivileged Nations. In Later life became an avid participant in Marine Biology, and served on served on several joint venture exploratory missions with the late Jacques Cousteau. Currently dedicated to providing "Green" solutions for the Planet and Humanity, Michael has spearheaded several privately owned corporate ventures and is now taking the lead to restore Biocentric Energy Holdings, to it's original business goals along with diversifying and expanding the company's operations to alternative Fuel and Power production.


The rest of those people are all old employees that were also in past filings