Financials from 2009 & 2010 for Seawind
Info from the 8K/A:
Financial Information in this Report
The Seawind Acquisition by our Company is for accounting purposes treated as a reverse acquisition where Seawind Services is the accounting survivor. As such, all financial information discussed and presented herein is the historical and current information pertaining only to Seawind Services except as otherwise indicated. The financial statements and notes included as part of this Report pertain only to Seawind Services as the accounting survivor and disregard the historical financial statements filed by our Company prior to the Seawind Acquisition.
Results of Operations
Sales, Income and Expenses
During the fiscal year ended March 31, 2010 (audited), the Company had net sales of $8,609,055, as compared to net sales of $14,963,161 for the fiscal year ended March 31, 2009. The cost of the goods sold in 2010 was $7,685,617, with selling, general and administrative expenses of $862,841. Total costs and expenses for the fiscal year ended March 31, 2010 were $8,548,458, and net income was $47,617. In 2009, the cost of the goods sold was $14,341,929 with selling, general and administrative expenses of $518,785. Total costs and expenses for the fiscal year ended March 31, 2009 were $14,859,564, and net income was $151,223.
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During the nine month period ended December 31, 2010, the Company had sales of $5,725,149, as compared to net sales of $8,347,442 for the nine month period ended December 31, 2009. The cost of the sales in the nine month period ended December 31, 2010 included purchases totaling $2,055,143, an opening WIP of $217,683, wages and salaries in the amount of $1,345,159, sales promotion in the amount of $740, and miscellaneous expenses in the amount of $636,546.
Liquidity and capital resources
As of the fiscal year ended March 31, 2010 (audited), the Company had total assets of $2,835,326, as opposed to total assets of $5,280,324 at March 31, 2009. As of the fiscal year ended March 31, 2010 (audited), the Company’s assets consisted of $959,499 in cash and cash equivalents, $1,661,642 in accounts receivable, $212,921 in work in progress and $1,064 in property and equipment. As of the fiscal year ended March 31, 2010 (audited), the Company’s assets consisted of $2,128,130 in cash and cash equivalents and $3,151,994 in accounts receivable.
As of March 31, 2010, the Company’s total liabilities were $2,373,622, compared to total liabilities of $4,887,313 as of March 31, 2009.
As of the nine month period ended December 31, 2010 (unaudited), the Company had total assets of $4,841,948, as opposed to total assets of $5,043,593 as of the nine month period ended December 31, 2009 (unaudited). As of the nine month period ended December 31, 2010 (unaudited), the Company’s assets consisted of $392,822 in cash, $4,573,224 in accounts receivable, $0 in work in progress and $1,092 in property and equipment. As of the nine month period ended December 31, 2009 (unaudited), the Company’s assets consisted of $2,506,030 in cash and cash equivalents and $2,535,876 accounts receivable.
In addition to those debt accrued by Seawind Services, the Company will retain those debts of 3Power Energy Group incurred prior to the Seawind Acquisition. Prior to such acquisition 3Power Energy Group had not yet generated any revenues from its business operations (Seawind Services has generated revenues). Since inception, 3Power Energy Group Inc. had incurred total expenses of $3,640,661, including total expenses of $799,758 during the twelve months ended December 31, 2010.
Through December 31, 2010, 3Power Energy Group Inc.’s primary source of capital was loans from Rudana Investment Group AG (“Rudana”). In addition, 3Power Energy Group Inc. received loans from CRG Finance AG, and the sale of rights to a power plant. 3Power Energy Group has received loans from CRG Finance AG in the amount of 470,000 Euros (US$660,073) and proceeds from the sale of rights to a one-megawatt power plant in Italy during the first quarter 2010 in the amount of 179,630 Euros (US$242,921).
To date, 3Power Energy Group has received loans in aggregate of $1,034,592 from Rudana (the “Shareholder Loans”). The Shareholder Loans include $313,064 loaned by Rudana and $721,528 in 3Power Energy Group invoices paid by Rudana, which amounts are offset by reimbursements to Rudana of $823,448 and payments of $14,730 made by 3Power Energy Group on behalf of Rudana. The current net total of the Shareholder Loans from Rudana is $196,414. 3Power Energy Group has used the proceeds from the Shareholder Loans for general corporate purposes. The Shareholder Loans have an interest rate of seven and a half percent (7.5%) per annum, which together with the principal amount shall be repayable thirty (30) days after demand by Rudana. In connection with the Shareholder Loans, 3Power Energy Group intends to execute notes setting forth the terms thereof. In addition, the Company’s accrued fees owed for management services received from Prime Asset Finance Limited, a subsidiary of Rudana, from inception through December 31, 2010 total $833,333.
Our pre-operational activities to date have consumed substantial amounts of cash. Our negative cash flow from operations is expected to continue and to accelerate in the foreseeable future as the Company invests in capital expenditures to commence operations.
We will need to raise additional capital to implement our new business plan and continue operations for any length of time. We are seeking alternative sources of financing, through private placement of securities and loans from our shareholders in order for us to maintain our operations. We cannot guarantee that we will be successful in raising additional cash resources for our operations. Rudana, a shareholder of the Company, has loaned the Company funds for operations in the past, and has indicated that it will continue to loan funds as their financial circumstances may permit. Rudana, however, is under no obligation to make additional loans in the future.
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Our future capital requirements will depend on a number of factors, including our ability to grow our revenues and manage our business. Our growth will depend upon our ability to raise additional capital, possibly through the issuance of long-term or short-term indebtedness or the issuance of our equity securities in private or public transactions. If we are successful in raising equity capital, because of the number and variability of factors that will determine our use of the capital, our ultimate use of the proceeds may vary substantially from our current plans. Global financial market conditions will be relevant to the Company’s ability to raise funds and make sales in the particular markets in which we will be active. While the Company believes that the opportunity exists to proceed in spite of these factors, major market disruptions, recent adverse changes in global market conditions, and the regulatory climate may affect our business.
The Company will require no less than $2,000,000 in additional funding in order to conduct proposed operations for the next year. Should the Company fail to raise such funds, the Company will not be able to commence construction of the solar power plants. In order to commence construction on all of the Company’s currently contemplated projects, the Company would be required to raise 15,000,000 Euros (approximately $19,220,000) to acquire definitive licenses to own and operate solar parks, and then organize construction bridge loans to pay for the construction of the solar parks.
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