Off-Balance Sheet Arrangements
Clean Energy and Power, Inc. has no off-balance sheet arrangements.
Material Agreements
The Company has contractual obligations to repay it debentures and notes payable
and to make payments under its operating lease agreement.
Payments due by period:
Contractual Obligation Total 2008 2009 and thereafter
Convertible Debt1 $ 4,509,049 4,509,049 $ -
Notes payable 107,658 107,658 -
Total Contractual Obligations $ 4,616,707 $ 4,616,707 $ -
1 - Convertible debentures matured in 2007 and were extended one year by written agreement. Subsequently they are all in default having matured and not been paid off or converted. Federal and State Tax Liabilities
The Company had been previously notified by the Internal Revenue Service (IRS) and the California Employment Development Department that the Company owed a total of $222,335 in back payroll taxes (including penalties and interest to date). The Company was also notified that the Internal Revenue Service had recorded a federal tax lien against the Company in the office of the Los Angeles County Recorder in the amount of $58,638 (which is a part of the total amount).
As of the statement date of December 31, 2007, the Company had made payment to the California Employment Development Department. The Company had also made partial payment and entered into a settlement agreement with the IRS. As of December 31, 2007, the remaining balance due to the IRS was approximately $180,000 including penalties and interest.
--------------------------------------------------------------------------------
Subsequently, at the date of filing, the balance due to the IRS is approximately $60,000.
