Nature of Operations
Clear Skies Group, Inc. (“CSG”) was formed in September 2003 for the purpose of providing turnkey solar electricity installations and renewable energy technology solutions to commercial and residential customers across the United States. CSG commenced operations in August 2005 and received its initial funding in September 2005. Through a reverse merger completed in December 2007, CSG became a wholly owned subsidiary of the Company. We also have proprietary and patented remote monitoring technology under the name XTRAX® with applications in the solar electricity production field and other potential markets. The XTRAX® technology is being finalized and the commercialization of it is expected to begin during 2012 through Carbon 612 Corporation (“Carbon 612”). Subsequent to September 30, 2011, our ownership of Carbon 612 was reduced from 66% to 33%. See Note 10 “Subsequent Event”. In February 2010, Carbon 612 filed a registration statement on Form 10 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and has filed amendments to that registration statement. The SEC has completed its review of that registration statement. Carbon 612 is itself subject to the reporting requirements of the Exchange Act, and its financial statements are consolidated with our financial statements in this Form 10-Q. The consolidated financial statements include the financial position and operating activities of Carbon 612, our subsidiary as of September 30, 2011. All intercompany balances have been eliminated in consolidation.
10. Subsequent Events
On October 24, 2011, we sold 15 million of our shares of the common stock of Carbon 612 reducing our holdings to 15 million shares, or about 33% of the presently outstanding shares of Carbon 612. We received $27,000 in cash and a commitment for additional consideration of a portion of any gains of the buyer if it is able to arrange for the merger or sale of Carbon 612 within the next three years.
