0001079974-16-001041.txt : 20160315 0001079974-16-001041.hdr.sgml : 20160315 20160314200838 ACCESSION NUMBER: 0001079974-16-001041 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 33 CONFORMED PERIOD OF REPORT: 20151231 FILED AS OF DATE: 20160315 DATE AS OF CHANGE: 20160314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WestMountain Alternative Energy Inc CENTRAL INDEX KEY: 0001421636 STANDARD INDUSTRIAL CLASSIFICATION: INVESTORS, NEC [6799] IRS NUMBER: 261315585 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-53029 FILM NUMBER: 161505293 BUSINESS ADDRESS: STREET 1: 181 W. BOARDWALK, SUITE 202 CITY: Fort Collins STATE: co ZIP: 80525 BUSINESS PHONE: 970-223-4499 MAIL ADDRESS: STREET 1: 181 W. BOARDWALK, SUITE 202 CITY: Fort Collins STATE: co ZIP: 80525 10-K 1 wetm_10k123115.htm ANNUAL REPORT wetm_10k123114.htm


 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended   December 31, 2015

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-53029

WESTMOUNTAIN ALTERNATIVE ENERGY, INC.
 (Exact Name of Small Business Issuer as specified in its charter)

Colorado
26-1315585
(State or other jurisdiction
(IRS Employer File Number)
of incorporation)
 

   
181 W. Boardwalk, Suite 202
 
Fort Collins, Colorado
80525
(Address of principal executive offices)
(zip code)

(970) 223-4499
 (Registrant's telephone number, including area code)

Securities to be Registered Pursuant to Section 12(b) of the Act: None

Securities to be Registered Pursuant to Section 12(g) of the Act:

Common Stock $0.001 per share par value
 
Indicate by check mark if registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes o   No þ.

Indicate by check mark if registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  Yes o No þ.

Indicate by check mark whether the registrant (1) has filed all Reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes: þ    No: o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files. Yes þ   No o
Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K is contained in this form and no disclosure will be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o       
 Accelerated filer o
Non-accelerated filer   o (Do not check if a smaller reporting company)
 Smaller reporting company  þ
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):   Yes o   No þ.
 
The number of shares outstanding of the Registrant's common stock, as of the latest practicable date, March 9, 2016 was 9,106,250.

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed fourth fiscal quarter is approximately $198,713.

 
 


 
 


FORM 10-K

WestMountain Alternative Energy, Inc.

 

   
PART I
 
   
3
   
6
   
13
   
13
   
13
   
PART II
 
   
13
   
15
   
15
   
18
   
19
   
30
   
30
   
31
      
 
PART III
 
   
31
   
32
   
32
   
33
   
34
   
34
   
19 - 29
   
35
 
 
 
- 2 -

 
 
For purposes of this report, unless otherwise indicated or the context otherwise requires, all references herein to “WestMountain Alternative,” “we,” “us,” and “our,” refer to WestMountain Alternative Energy, Inc., a Colorado corporation.
 
Forward-Looking Statements

The following discussion contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.

When used in this discussion, words such as "believes", "anticipates", "expects", "intends" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.
 

PART I

Item 1. DESCRIPTION OF BUSINESS.

Narrative Description of the Business 

We plan to make early stage investments that will bring alternative energy technologies to commercialization and then actively manage these investments. We plan to generate management fees based on the size of the investments that we oversee and incentive income based on the performance of these investments.  Our principal business has been to provide consulting to related parties with respect to their investments in alternative energy projects.

As to our investments, we will not limit ourselves to any single area of alternative energy. We will look at any and all forms of alternative energy. We actively screen investments with emphasis towards finding opportunities with potential for long term success.

Operations

In the past, we have acted as a consultant to with respect to client investments in alternative energy projects. We performed due diligence and ongoing research and evaluation with respect to projects on a fee basis. We are not currently generating revenues as a consultant.

We also plan to seek, develop, and manage alternative energy investments for our own account. We screen investments with emphasis towards finding opportunities with long term potential. We do not limit ourselves to any single area of alternative energy. We will look at any and all forms of alternative energy.

We have a proprietary investment screening process to make our investments.  This process is based upon the experience of Mr. Brian Klemsz, our President, and outside consultants as we develop our company.  

For the fiscal years ended 2015 and 2014, we have not been profitable. While we lost our only source of revenue, we have been pursuing new clients to replace the lost revenue stream and are also exploring the possibility of merging with an existing company who has revenues and, potentially, earnings. At this time, we have no definitive arrangements for either replacing our lost revenue or identifying a merger candidate.
- 3 -

 
 
We operate out of one office in Colorado. We have no specific plans at this point for additional offices.  On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC to provide us with certain defined services. These services included financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement.  We compensated Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC.  who performed services on our behalf. We received monthly invoices from Bohemian Companies, LLC. As of March 31, 2014, the Service Agreement was terminated by agreement of both parties.

Effective May 20, 2014, we amended our Articles of Incorporation to increase the number of authorized common shares to One Hundred Million (100,000,000) shares from Fifty Million (50,000,000) shares. The par value of the common shares remains at $0.001 per share.
  
Markets

We believe that the primary reason that clients would procure services from us rather than competitors would be the existing relationships that we possess and can develop. We believe that client loyalty and satisfaction can be the basis for success in this business. Therefore, we plan to develop and expand on already existing relationships to develop a competitive edge. We utilize the expertise of our principal officer to market our proprietary investment screening process business
  
Raw Materials

         The use of raw materials is not a  factor in our operations at the present time. The use of raw materials may become a material factor in the future as we develop operations.

Customers and Competition

Our business plan involves acting as both a consultant and an investor in alternative energy technologies. This business is highly competitive. There are numerous similar companies providing such services in the United States of America. Our competitors will have greater financial resources and more expertise in this business. Our ability to develop our business will depend on our ability to successfully identify alternative energy technology investments in this highly competitive environment. We cannot guarantee that we will be able to do so successfully.
 
Over the past several years, the size and number of funds that focus on alternative energy technologies has continued to increase. If this trend continues, it is possible that it will become increasingly difficult for us to raise funds to grow our Company. Competition is based on a variety of factors, including:
  
 
• 
investment performance;

 
• 
investor perception of investment managers’ drive, focus and alignment of interest;

 
• 
quality of service provided to and duration of relationship with investors;

 
• 
business reputation; and

 
• 
level of fees and expenses charged for services.
 

- 4 -


 
      We compete with a large number of management firms and other financial institutions. A number of factors serve to increase our competitive risks:
 
 
• 
investors may develop concerns that we will allow a business to grow to the detriment of its performance;

 
• 
some of our competitors have greater capital, lower targeted returns or greater sector or investment strategy specific expertise than we do, which creates competitive disadvantages with respect to investment opportunities; some of our competitors may perceive risk differently than we do which could allow them either to outbid us for investments in particular sectors or, generally, to consider a wider variety of investments;
 
 
• 
there are relatively few barriers to entry impeding new private equity and hedge fund management firms, and the successful efforts of new entrants into our various lines of business, including former ‘‘star’’ portfolio managers at large diversified financial institutions as well as such institutions themselves, will continue to result in increased competition; and

 
• 
other industry participants could  seek to recruit our best and brightest investment professionals away from us.

    These and other factors could reduce our earnings and revenues and materially adversely affect our business.

Employees

         We have one full-time employee: Mr. Klemsz. Mr. Klemsz does not draw a salary or receive any other kind of compensation. However, we reimburse our employee for all necessary and customary business related expenses.  We have no plans or agreements which provide health care, insurance or compensation on the event of termination of employment or change in our control.  We do not pay our Directors separately for any Board meeting they attend.
 
Proprietary Information

                We have a proprietary investment screening process to make our investments.  Otherwise, we own no proprietary information.

Government Regulation

At some point, we may be required to file to become a registered investment advisor, but we currently do not expect government regulations or environmental laws to have any material impact on us.

Research and Development

We have never spent any amount in research and development activities.

- 5 -



Environmental Compliance

We believe that we are not subject to any material costs for compliance with any environmental laws.
 
How to Obtain our SEC Filings
 
We file annual, quarterly, and special reports, proxy statements, and other information with the Securities Exchange Commission (SEC). Reports, proxy statements and other information filed with the SEC can be inspected and copied at the public reference facilities of the SEC at 100 F Street N.E., Washington, DC 20549. Such material may also be accessed electronically by means of the SEC's website at www.sec.gov.

Our investor relations department can be contacted at our principal executive office located at our principal office, 181 W. Boardwalk, Suite 202, Fort Collins, Colorado 80525.  Our telephone number is (970) 223-4499. We do not have a corporate website.

1A. RISK FACTORS

         You should carefully consider the risks and uncertainties described below and the other information in this prospectus before deciding to invest in shares of our common stock.
 
         The occurrence of any of the following risks could materially and adversely affect our business, financial condition and operating result. In this case, the trading price of our common stock could decline and you might lose all or part of your investment.

Risks Related to Our Business and Industry

We have a limited operating history. While we were profitable for the last four fiscal years prior to 2014, we have lost our only client, and we may never be profitable again.  As a result, we could go out of business.
 
We were formed as a Colorado business entity in November, 2007. For three fiscal years, prior to 2014, our operations were profitable.  However, we have lost our only client, and have not been able to replace the revenue in the last two fiscal years. We cannot guarantee that we will be profitable again. If we continue to be not profitable, we could go out of business.

We have relied upon one client for all of our revenues, which means that the loss of this client has severely impacted our operations. If we cannot replace the lost revenue or merge with a company, we could go out of business.

One client in fiscal year 2013 accounted for 100% of our revenues. This client was a related party, EastMountain Alternative Energy, LLC. EastMountain Alternative Energy, LLC gave notice to us that, effective December 31, 2013, it planned to terminate the asset management services contract it had with us.  We have been and could continue to be materially impacted by the loss of this client. The loss of this one client makes us subject to uncertain revenue results. With the termination of the asset management services contract between us and EastMountain Alternative Energy, LLC, we no longer provide asset management services to any clients and have no current revenue source going forward. While we have lost our only source of revenue, we have been seeking additional clients to replace our lost revenue, although we have no definite arrangements at this point. In the alternative, we may seek a merger candidate, although we have not identified any definitive acquisitions at this time. We cannot guarantee that we will be able to replace our lost revenue or to identify a merger candidate. If we cannot either replace our lost revenue or identify a merger candidate, we may eventually cease business. An investor could lose his entire investment.

Our lack of operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance. An investor could lose his entire investment.

We have a limited operating history. An investor has no frame of reference to evaluate our future business prospects.  This makes it difficult, if not impossible, to evaluate us as an investment. An investor could lose his entire investment if our future business prospects do not result in our sustaining our current profitability.

 
 
- 6 -

 
 If we do not generate adequate revenues to finance our operations, our business may fail.
            
             We began generating revenues in 2008. As of December 31, 2015, we had a cash position of $186,462 and an additional $155,714 in Certificates of Deposit. Our operating costs for the fiscal year ended December 31, 2015 were $65,999. These operating costs include insurance, taxes, utilities, maintenance, contract services and all other costs of operations. We will use contract employees who will be paid on an hourly basis as each investment transaction is evaluated. However, the operating costs and expected revenue generation are difficult to predict. Since there can be no assurances that revenues will be sufficient to cover operating costs for the foreseeable future, it may be necessary to raise additional funds. Due to our lack of operating history, raising additional funds may be difficult.

Competition in the alternative energy industry is intense.
 
Our business plan involves acting as a consultant and making investments in alternative energy projects. This business is highly competitive. There are numerous similar companies seeking such investments in the United States of America. Our competitors will have greater financial resources and more expertise in this business. Our ability to develop our business will depend on our ability to successfully develop investments in this highly competitive environment. We cannot guarantee that we will be able to do so successfully.

The share control position of WestMountain Green, LLC will limit the ability of other shareholders to influence corporate actions.
 
             Our largest shareholder, WestMountain Green, LLC, of which Mr. Klemsz is a 16.8% member, owns 8,050,000 shares and thereby controls approximately 90% of our outstanding shares. Because WestMountain Green, LLC individually beneficially controls more than a majority of the outstanding shares, other shareholders, individually or as a group, will be limited in their ability to effectively influence the election or removal of our directors, the supervision and management of our business or a change in control of or sale of our company, even if they believed such changes were in the best interest of our shareholders.  

Our future success depends, in large part, on the continued service of our President and Treasurer and the continued financing of WestMountain Green, LLC.
 
             We depend almost entirely on the efforts and continued employment of Mr. Klemsz, our President and Treasurer. Mr. Klemsz is our primary executive officer, and we will depend on him for nearly all aspects of our operations. In addition, WestMountain Green, LLC, is our only source of external financing. We do not have an employment contract with Mr. Klemsz, and we do not carry key person insurance on his life. The loss of the services of Mr. Klemsz through incapacity or otherwise, would have a material adverse effect on our business. It would be very difficult to find and retain qualified personnel such as Mr. Klemsz and a financing source to replace WestMountain Green, LLC. At the present time, there is no contractual commitment for WestMountain Green, LLC to fund us.

Our revenue and profitability fluctuate, particularly inasmuch as we cannot predict the timing of realization events in developing future investments, which may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause volatility in the price of our shares.

We may experience significant variations in revenues and profitability during the year based upon potential future equity investments we may develop . If we engage in future equity investments, the timing and receipt of income generated by bringing new alternative energy projects to market is event driven and thus highly variable, which contributes to the volatility of our revenue, and our ability to realize incentive income from our potential funds may be limited. We cannot predict when, or if, any realization of any potential investments will occur. If we were to have a realization event in a particular quarter, it may have a significant impact on our revenues and profits for that particular quarter which may not be replicated in subsequent quarters. In addition, our potential equity investments would be adjusted for accounting purposes to fair value at the end of each quarter, resulting in revenue attributable to our potential principal investments, even though we would receive no cash distributions from our equity funds, which could increase the volatility of our quarterly earnings. We have no such equity investments at this time.
 
 
 
- 7 -


Difficult market conditions can adversely affect our funds in many ways, including reducing the value or performance of the investments we make in our investments and reducing the ability of our company to raise or deploy capital, which could materially reduce our revenue and results of operations.

If economic conditions are unfavorable our projects may not perform well and we may not be able to raise money in existing or new projects. Our investments will be materially affected by conditions in the global financial markets and economic conditions throughout the world. The global market and economic climate may deteriorate because of many factors beyond our control, including rising interest rates or inflation, terrorism or political uncertainty. In the event of a market downturn, our businesses could be affected in different ways.

A general market downturn, or a specific market dislocation, may cause our revenue and results of operations to decline by causing: 
 
 
The value of our investments to decrease;

 
lower investment returns, reducing incentive income; and

 
material reductions in the value of our ownership in investments.
 
Furthermore, while difficult market conditions may increase opportunities to make certain alternative energy investments, such conditions also increase the risk of default with respect to investments held by us with debt investments.

The success of our business depends, in part, upon proprietary technologies and information which may be difficult to protect and may infringe on the intellectual property rights of third parties.

We believe that the identification, acquisition and development of proprietary technologies are key drivers of our business. Our success depends, in part, on our ability to obtain patents, license the patents of others, maintain the secrecy of our proprietary technology and information, and operate without infringing on the proprietary rights of third parties. We currently do not license any patents. We cannot assure you that the patents of others will not have an adverse effect on our ability to conduct our business, that the patents that we license will provide us with competitive advantages or will not be challenged by third parties, that we will acquire additional proprietary technology that is patentable or that any patents issued to us will provide us with competitive advantages or will not be challenged by third parties. Further, we cannot assure you that others will not independently develop similar or superior technologies, duplicate elements of any technology we may own or design around it.

In order to successfully commercialize any proprietary technologies, it is possible that we may need to acquire licenses to, or to contest the validity of, issued or pending patents or claims of third parties. We cannot assure you that any license acquired under such patents would be made available to us on acceptable terms, if at all, or that we would prevail in any such contest. In addition, we could incur substantial costs in defending ourselves in suits brought against us for alleged infringement of another party’s patents or in defending the validity or enforceability of our patents, or in bringing patent infringement suits against other parties based on our patents.

In addition to the protection afforded by patents, we may also rely on trade secrets, proprietary know-how and technology that we seek to protect, in part, by confidentiality agreements with our prospective joint venture partners, employees and consultants. We cannot assure you that these agreements will not be breached, that we will have adequate remedies for any such breach, or that our trade secrets and proprietary know-how will not otherwise become known or be independently discovered by others.

 
 
- 8 -


Because we are smaller and have fewer financial and other resources than many alternative energy companies, we may not be able to successfully compete in the very competitive alternative energy industry.

Alternative energy functions as a commodity. There is significant competition among existing alternative energy producers. Our business could face competition from a number of producers that can produce significantly greater volumes of alternative energy than we can or expect to produce, producers that can produce a wider range of products than we can, and producers that have the financial and other resources that would enable them to expand their production rapidly if they chose to. These producers may be able to achieve substantial economies of scale and scope, thereby substantially reducing their fixed production costs and their marginal productions costs. If these producers are able to substantially reduce their marginal production costs, the market price of alternative energy products may decline and we may not be able to produce alternative energy products at a cost that allows us to operate profitably. Even if we are able to operate profitably, these other producers may be substantially more profitable than us, which may make it more difficult for us to raise any financing necessary for us to achieve our business plan and may have a materially adverse effect on the market price of our common stock.

Increased alternative energy production in the United States could increase the demand for feedstocks and the resulting price of feedstocks, reducing our profitability.

New alternative energy projects are under construction throughout the United States. Increased production from alternative energy sources could increase feedstock demand and prices, resulting in higher production costs and lower profits.
 
Price increases or interruptions in needed energy supplies could cause loss of customers and impair our profitability.
 
Alternative energy production requires a constant and consistent supply of energy. If there is any interruption in our supply of energy for whatever reason, such as availability, delivery or mechanical problems, we may be required to halt production. If we halt production for any extended period of time, it will have a material, adverse effect on our business. Natural gas and electricity prices have historically fluctuated significantly. We expect to purchase significant amounts of these resources as part of our alternative energy production. Increases in the price of natural gas or electricity would harm our business and financial results by increasing our energy costs.
 
Risks Related to Government Regulation and Subsidization

The United States alternative energy industry is highly dependent upon federal and state legislation and regulation and any changes in that legislation or regulation could materially adversely affect our results of operations and financial condition. The elimination or significant reduction in the federal tax incentive could have a material adverse effect on our results of operations.
 
The production of alternative energy has historically been related to federal tax incentives. The elimination or significant reduction in the federal tax incentives on any or all alternative energy projects could negatively impact or proposed operations.

 
 
- 9 -

 
Lax enforcement of environmental and energy policy regulations may adversely affect the demand for alternative energy products.
 
Our success will depend, in part, on effective enforcement of existing environmental and energy policy regulations. Many of our potential customers are unlikely to switch from the use of conventional fuels unless compliance with applicable regulatory requirements leads, directly or indirectly, to the use of alternative energy. Both additional regulation and enforcement of such regulatory provisions are likely to be vigorously opposed by the entities affected by such requirements. If existing emissions-reducing standards are weakened, or if governments are not active and effective in enforcing such standards, our business and results of operations could be adversely affected. Even if the current trend toward more stringent emissions standards continues, our future prospects will depend on the ability of alternative energy to satisfy these emissions standards more efficiently than other existing technologies. Certain standards imposed by regulatory programs may limit or preclude the use of our products to comply with environmental or energy requirements. Any decrease in the emission standards or the failure to enforce existing emission standards and other regulations could result in a reduced demand for alternative energy products. A significant decrease in the demand for alternative energy products will reduce the price of such products, adversely affect our profitability and decrease the value of your stock.
 
Costs of compliance with burdensome or changing environmental and operational safety regulations could cause our focus to be diverted away from our business and our results of operations to suffer.
 
We expect to be subject to complicated environmental regulations of the U.S. Environmental Protection Agency and regulations and permitting requirements of the various states with respect to our alternative energy projects. These regulations are subject to change and such changes may require additional capital expenditures or increased operating costs. Consequently, considerable resources may be required to comply with future environmental regulations. We do not currently expect to incur material capital expenditures for environmental controls in this or the succeeding fiscal year. In addition, our proposed projects could be subject to environmental nuisance or related claims by employees, property owners or residents near our projects arising from air or water discharges. Environmental and public nuisance claims, or tort claims based on emissions, or increased environmental compliance costs could significantly increase our operating costs.
 
Any new alternative energy plants will be subject to federal and state laws regarding occupational safety. Risks of substantial compliance costs and liabilities are inherent in alternative energy production. We may be subject to costs and liabilities related to worker safety and job related injuries, some of which may be significant. Possible future developments, including stricter safety laws for workers and other individuals, regulations and enforcement policies and claims for personal or property damages resulting from operation of our projects could reduce the amount of cash that would otherwise be available to further enhance our business.

 
Risks Related to an Investment in Our Common Stock
 
The lack of a broker or dealer to create or maintain a market in our stock could adversely impact the price and liquidity of our securities.
 
      We have no agreement with any broker or dealer to act as a market maker for our securities and there is no assurance that we will be successful in obtaining any market makers. Thus, no broker or dealer will have an incentive to make a market for our stock. The lack of a market maker for our securities could adversely influence the market for and price of our securities, as well as your ability to dispose of, or to obtain accurate information about, and/or quotations as to the price of, our securities.

We have limited experience as a public company.
 
We have only operated as a public company since January, 2009. We trade on a limited basis on the OTC Bulletin Board under the trading symbol WETM. Thus, we have limited experience in complying with the various rules and regulations which are required of a public company. As a result, we may not be able to operate successfully as a public company, even if our operations are successful. We plan to comply with all of the various rules and regulations which are required of a public company. However, if we cannot operate successfully as a public company, your investment may be materially adversely affected. Our inability to operate successfully as a public company could be the basis of your losing your entire investment in us.

 
 
- 10 -

 
We may be required to register under the Investment Company Act of 1940, or the Investment Advisors Act, which could increase the regulatory burden on us and could negatively affect the price and trading of our securities.

Because our proposed business involves, in part, the identification, acquisition and development of alternative energy investments, we may be required to register as an investment company under the Investment Company Act of 1940 or the Investment Advisors Act and analogous state law. While we believe that we are currently either not an investment company or an investment advisor or are exempt from registration as an investment company under the Investment Company Act of 1940 or the Investment Advisors Act and analogous state law, either the SEC or state regulators, or both, may disagree and could require registration either immediately or at some point in the future. As a result, there could be an increased regulatory burden on us which could negatively affect the price and trading of our securities.

We may be impacted by new regulatory requirements as a result of the passage of the Dodd-Frank Act.

In July, 2010, Congress enacted the Dodd-Frank Act, which instituted major changes in the regulatory regime for public companies, particularly those in the financial sector. At the present time, we do not believe that we will be impacted in a material way by this legislation. However, the implementation of the provisions of the Dodd-Frank Act are subject to regulations which have not yet been written and its statutory provisions have not been the subject of extensive judicial review, so we cannot guarantee that we may not come under its purview at some point in the future and be affected negatively by it.

Our stock has a limited public trading market and there is no guarantee a trading market will ever develop for our securities.

There has been, and continues to be, a limited public market for our common stock. An active trading market for our shares has not, and may never develop or be sustained. If you purchase shares of common stock, you may not be able to resell those shares at or above the initial price you paid. The market price of our common stock may fluctuate significantly in response to numerous factors, some of which are beyond our control, including the following:

 *    actual or anticipated fluctuations in our operating results;

 *    changes in financial estimates by securities analysts or our failure to perform in line with such estimates;

 *    changes in market valuations of other companies, particularly those that market services such as ours;

 *    announcements by us or our competitors of significant innovations, acquisitions, strategic partnerships, joint ventures or capital commitments;

 *    introduction of product enhancements that reduce the need for the products our projects may develop;

 *    departures of key personnel.
 
      Of our total outstanding shares as of December 31, 2015, a total of 8,325,000, or approximately 91.4%, is restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is doing well.
 
      As restrictions on resale end, the market price of our stock could drop significantly if the holders of restricted shares sell them or are perceived by the market as intending to sell them.
 
 
 
- 11 -

 

Applicable SEC rules governing the trading of “Penny Stocks” limit the liquidity of our common stock, which may affect the trading price of our common stock.
 
Our common stock currently trades from time to time and always below $5.00 per share. As a result, our common stock is considered a "penny stock" and is subject to SEC rules and regulations that impose limitations upon the manner in which our shares can be publicly traded.  These regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock and the associated risks.  Under these regulations, certain brokers who recommend such securities to persons other than established customers or certain accredited investors must make a special written suitability determination for the purchaser and receive the written purchaser's agreement to a transaction prior to purchase.  These regulations have the effect of limiting the trading activity of our common stock and reducing the liquidity of an investment in our common stock.
 
The over-the-counter market for stock such as ours is subject to extreme price and volume fluctuations.

The securities of companies such as ours have historically experienced extreme price and volume fluctuations during certain periods. These broad market fluctuations and other factors, such as new product developments and trends in the our industry and in the investment markets generally, as well as economic conditions and quarterly variations in our operational results, may have a negative effect on the market price of our common stock.

Buying low-priced penny stocks is very risky and speculative.

Our common shares are defined as a penny stock under the Securities and Exchange Act of 1934, and rules of the Commission. The Exchange Act and such penny stock rules generally impose additional sales practice and disclosure requirements on broker-dealers who sell our securities to persons other than certain accredited investors who are, generally, institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000, exclusive of the value of principal residence, or annual income exceeding $200,000, or $300,000 jointly with spouse, or in transactions not recommended by the broker-dealer. For transactions covered by the penny stock rules, a broker-dealer must make a suitability determination for each purchaser and receive the purchaser's written agreement prior to the sale. In addition, the broker-dealer must make certain mandated disclosures in penny stock transactions, including the actual sale or purchase price and actual bid and offer quotations, the compensation to be received by the broker-dealer and certain associated persons, and deliver certain disclosures required by the Commission. Consequently, the penny stock rules may affect the ability of broker-dealers to make a market in or trade our common stock and may also affect your ability to resell any shares you may purchase in the public markets.

Issuances of our stock could dilute current shareholders and adversely affect the market price of our common stock, if an active public trading market develops.
 
       We have the authority to issue up to 100,000,000 shares of common stock, 1,000,000 shares of preferred stock, and to issue options and warrants to purchase shares of our common stock without stockholder approval. Although no financing is planned currently, we may need to raise additional capital to fund operating losses. If we raise funds by issuing equity securities, our existing stockholders may experience substantial dilution. In addition, we could issue large blocks of our common stock to fend off unwanted tender offers or hostile takeovers without further stockholder approval.

               The issuance of preferred stock by our board of directors could adversely affect the rights of the holders of our common stock. An issuance of preferred stock could result in a class of outstanding securities that would have preferences with respect to voting rights and dividends and in liquidation over the common stock and could, upon conversion or otherwise, have all of the rights of our common stock. Our board of directors' authority to issue preferred stock could discourage potential takeover attempts or could delay or prevent a change in control through merger, tender offer, proxy contest or otherwise by making these attempts more difficult or costly to achieve.

 
 
- 12 -

 

Colorado law and our Articles of Incorporation protect our directors from certain types of lawsuits, which could make it difficult for us to recover damages from them in the event of a lawsuit.
 
       Colorado law provides that our directors will not be liable to our company or to our stockholders for monetary damages for all but certain types of conduct as directors. Our Articles of Incorporation require us to indemnify our directors and officers against all damages incurred in connection with our business to the fullest extent provided or allowed by law. The exculpation provisions may have the effect of preventing stockholders from recovering damages against our directors caused by their negligence, poor judgment or other circumstances. The indemnification provisions may require our company to use our assets to defend our directors and officers against claims, including claims arising out of their negligence, poor judgment, or other circumstances.

We do not expect to pay dividends on common stock.

We have not paid any cash dividends with respect to our common stock, and it is unlikely that we will pay any dividends on our common stock in the foreseeable future. Earnings, if any, that we may realize will be retained in the business for further development and expansion.
 
ITEM 2. DESCRIPTION OF PROPERTY.

Our principal executive offices are located at 181 W. Boardwalk, Suite 202, Fort Collins, Colorado 80525, and our telephone number is (970) 223-4499. We signed a two year lease, ending in 2016, for a total of 565 square feet of office space at a price of $188 per month plus costs associated with yearly common area fees. For the fiscal current year, the additional cost will be $61.We own no real estate nor have plans to acquire any real estate.
 
ITEM 3. LEGAL PROCEEDINGS.

We are not a party to any material legal proceedings, nor is our property the subject of any material legal proceeding.
 

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to smaller reporting companies.


PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
 
Holders
As of February 11, 2016, there were fifty-five record holders of our common stock and there were 9,106,250 shares of our common stock outstanding.

Market Information

A limited public market currently exists for shares of our common stock. We began trading on the Over-the-Counter Bulletin Board under the trading symbol WETM in January, 2009. 

The following table sets forth the high and low closing bid prices of our common stock on for the periods indicated in 2015 and 2014.
 
 
 
- 13 -

 
The following table sets forth the high and low closing bid prices of our common stock on for the periods indicated in 2015 and 2014.
 
   
Closing Bid Price
 
2015
 
High
   
Low
 
First Quarter
 
$
0.30
   
$
0.30
 
Second Quarter
 
$
0.30
   
$
0.30
 
Third Quarter
 
$
0.30
   
$
0.30
 
Fourth Quarter
 
$
0.30
 
 
$
0.21
 
 
   
Closing Bid Price
 
2014
 
High
   
Low
 
First Quarter
 
$
1.01
   
$
1.01
 
Second Quarter
 
$
1.01
   
$
0.30
 
Third Quarter
 
$
0.30
   
$
0.30
 
Fourth Quarter
 
$
0.30
 
 
$
0.30
 
 
On January 16, 2016, the closing bid price of our common stock in the OTC Bulletin Board was $0.21 per share and we had no trading volume that day.
 
The Securities Enforcement and Penny Stock Reform Act of 1990

The Securities and Exchange Commission has also adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system).
 
A purchaser is purchasing penny stock which limits the ability to sell the stock. Our shares will remain penny stocks for the foreseeable future. The classification of penny stock makes it more difficult for a broker-dealer to sell the stock into a secondary market, which makes it more difficult for a purchaser to liquidate his/her investment. Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities and Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers will refuse to attempt to sell penny stock.

The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document prepared by the Commission, which:
 
 
contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;

 
contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of the Securities Act of 1934, as amended;
 
 
contains a brief, clear, narrative description of a dealer market, including "bid" and "ask" prices for penny stocks and the significance of the spread between the bid and ask price;

 
contains a toll-free telephone number for inquiries on disciplinary actions;

 
defines significant terms in the disclosure document or in the conduct of trading penny stocks; and
 
 
contains such other information and is in such form (including language, type, size and format) as the Securities and Exchange Commission shall require by rule or regulation;
 
 
 
- 14 -


         The broker-dealer also must provide, prior to effecting any transaction in a penny stock, to the customer:
 
 
the bid and offer quotations for the penny stock;

 
the compensation of the broker-dealer and its salesperson in the transaction;

 
the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and
 
 
 monthly account statements showing the market value of each penny stock held in the customer's account.
 
         In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty selling their securities.

Equity Compensation Plan Information
 
         We have no outstanding stock options or other equity compensation plans.

Stock Transfer Agent
 
        The stock transfer agent for our securities is Corporate Stock Transfer of Denver, Colorado.  Their address is 3200 Cherry Creek Drive South, Suite 430, Denver, Colorado 80209. Their phone number is (303) 282-4800.

Dividend Policy

 We have not previously declared or paid any dividends on our common stock and do not anticipate declaring any dividends in the foreseeable future. The payment of dividends on our common stock is within the discretion of our board of directors. We intend to retain any earnings for use in our operations and the expansion of our business. Payment of dividends in the future will depend on our future earnings, future capital needs and our operating and financial condition, among other factors that our board of directors may deem relevant. We are not under any contractual restriction as to our present or future ability to pay dividends.


 ITEM 6. SELECTED FINANCIAL DATA

A smaller reporting company is not required to provide the information in this Item.


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
         This Management’s Discussion and Analysis contains forward-looking statements that involve future events, our future performance and our expected future operations and actions. In some cases, you can identify forward-looking statements by the use of words such as “may”, “will”, “should”, “anticipate”, “believe”, “expect”, “plan”, “future”, “intend”, “could”, “estimate”, “predict”, “hope”, “potential”, “continue”, or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including, but not limited to, the matters discussed in this report under the caption “Risk Factors”. We urge you not to place undue reliance on these forward-looking statements, which speak only as of the date of this prospectus. We undertake no obligation to publicly update any forward looking-statements, whether as a result of new information, future events or otherwise.

 
 
- 15 -


The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this report.

General
 
We plan to make early stage investments that will bring alternative energy technologies to commercialization, and then actively manage these investments. We also currently are in the business to provide consulting to clients with respect to their investments in alternative energy projects. We lost our only management services client, effective December 31, 2013.  Historically, we earned management fees based on the size of the funds managed, and incentive income based on the performance of the funds. With the cessation of the asset management services contract between us and EastMountain Alternative Energy, LLC, we no longer provide asset management services to any clients and have no current revenue source going forward. While we lost our only current source of revenue, we have been pursuing new clients to replace the lost revenue stream and also exploring the possibility of merging with an existing company who has revenues and, potentially, earnings. At this time, we have no definitive arrangements for either replacing our lost revenue or identifying a merger candidate.

As to our investments, we will not limit ourselves to any single area of alternative energy. We will look at any and all forms of alternative energy. We actively screen investments with emphasis towards finding opportunities with potential for long term success.
 
Effective May 20, 2014, we amended our Articles of Incorporation to increase the number of authorized common shares to One Hundred Million (100,000,000) shares from Fifty Million (50,000,000) shares. The par value of the common shares remains at $0.001 per share.
 
Our principal business address is 181 W Boardwalk, Suite 202, Fort Collins, Colorado 80525. Our phone number is (970) 223-4499. We operate out of one office in Colorado. We have no specific plans at this point for additional offices.  
 
Bohemian Companies, LLC and BOCO Investments, LLC are two companies under common control.  Mr. Klemsz, our President, has been the Chief Investment Officer of BOCO Investments, LLC since March 2007.  Since there is common control between the two companies and a relationship with our Company President, we are considering all transactions with Bohemian Companies, LLC and BOCO Investments, LLC. related party transactions.
 
On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC to provide us with certain defined services. These services included financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement.  We compensated Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performed services on our behalf. As of March 31, 2014, the Service Agreement was terminated by agreement of both parties.
 
We have not been subject to any bankruptcy, receivership or similar proceedings.
 
Results of Operations

 For the years ended December 31, 2015 and 2014, we had revenues of $-0-.
 
For the years ended December 31, 2015 and 2014, operating expenses were $63,499 and $52,492, respectively. The major component of general and administrative expenses is professional fees.
 
For the years ended December 31, 2015 and 2014, we had a net loss of $63,376 and net loss of $52,820 respectively.   In 2015, the Company booked a full tax allowance against its deferred tax asset.

  Our ability to maintain profitability and positive cash flow is dependent upon our ability our ability to generate revenues, and to a lesser extent, to successfully develop investments.
 
- 16 -


 
To try to operate at a break-even level based upon our current level of proposed business activity, we believe that we must generate approximately $70,000 in revenue per year. However, if our forecasts are inaccurate, we will need to raise additional funds.

In addition, we expect that we will need to raise additional funds if we decide to pursue more rapid expansion, the development of new or enhanced services or products, appropriate responses to competitive pressures, or the acquisition of complementary businesses or technologies, or if we must respond to unanticipated events that require us to make additional investments. We cannot assure that additional financing will be available when needed on favorable terms, or at all.

We expect to incur operating profits in future periods when we have developed new revenue sources. Currently, we continue to incur operating losses and expect to do so until we can develop a reliable revenue source.
Liquidity and Capital Resources.
 
As of December 31, 2015, we had cash of $186,462 and $155,714 in certificates of deposit.
 
For the year ended December 31, 2015 net cash used in operating activities was $48,880, while for the year ended December 31, 2014 net cash used by operating activities was $39,466.  
 
   For the year ended December 31, 2015 net cash provided investing activities was $49,878 while for the year ended December 31, 2014 we had net cash used in investing activities of $126. In 2015, the Company transferred $49,878 from a certificate of deposit account into a cash account. In the first quarter of 2016, the money was reinvested into another certificate of deposit account.
 
For the years ended December 31, 2015 and December 31, 2014 we had net cash provided by financing activities of   $-0-.

Currently, we believe that we have sufficient capital in the next twelve months for our current level of operations. We have been seeking replacement clients, although we have no definite arrangements at this point. In the alternative, we may seek a merger candidate, although we have not identified any definitive acquisitions at this time. We do not anticipate needing to raise additional capital resources in the next twelve months.
 
Our principal source of liquidity historically was our cash flow generated from our operations. Our business activity is closely tied to the U.S. economy. Our ability to maintain profitability and positive cash flow is dependent upon our ability to successfully develop alternative energy investments, provide consulting to related parties with respect to their investments in alternative energy projects and our ability to generate revenues.
 
 
 
 
- 17 -

 
    In any case, we try to operate with minimal overhead. Our primary activity will be to seek to develop alternative energy investments and, consequently, increase our revenues. We cannot guarantee that this will ever occur. Our plan is to build our company in any manner which will be successful.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements with any party.

Critical Accounting Policies

Our discussion and analysis of results of operations and financial condition are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to provisions for uncollectible accounts receivable, inventories, valuation of intangible assets and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The accounting policies that we follow are set forth in Note 1 to our financial statements as included in this prospectus. These accounting policies conform to accounting principles generally accepted in the United States, and have been consistently applied in the preparation of the financial statements.
 
Recently Issued Accounting Pronouncements
 
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which is intended to define management's responsibility to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosures. This standard will be effective for the Company for the year ending on October 31, 2016. Early application is permitted. The Company is currently evaluating the impact of ASU No. 2014-15.

 In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. We adopted ASU 2015-17 on a prospective basis as of December 31, 2015. The adoption of ASU 2015-17 did not have an impact on our financial statements.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

A smaller reporting company is not required to provide the information in this Item 7A.

- 18 -


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


 

 
FINANCIAL STATEMENTS

with

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 


 

 
 
- 19 -

 
TABLE OF CONTENTS
 
 
 
 
 
- 20 -


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Stockholders and Board of Directors
WestMountain Alternative Energy, Inc.
Fort Collins, Colorado


We have audited the accompanying balance sheets of WestMountain Alternative Energy, Inc. (the "Company") as of December 31, 2015 and 2014, and the related statements of operations, stockholders' equity and comprehensive income, and cash flows for each of the years then ended.  The Company's management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
  
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the years then ended in conformity with accounting principles generally accepted in the United States of America.



EKS&H LLLP
/s/ EKS&H LLLP
March 14, 2016
Denver, Colorado

 
- 21 -

 
 
 
WestMountain Alternative Energy, Inc.
       
Balance Sheets
       
         
   
December 31,
   
December 31,
 
   
2015
   
2014
 
                    Assets
       
         
Cash
 
$
186,462
   
$
185,464
 
Certificates of deposit
   
155,714
     
205,592
 
Income tax receivable
   
7,891
     
7,891
 
Prepaid expenses and other assets
   
1,485
     
8,627
 
Property and equipment, net
   
2,280
     
6,934
 
      Total assets
 
$
353,832
   
$
414,508
 
                 
   Liabilities and Shareholders' Equity
               
Liabilities:
               
   Indebtedness to related parties
   
800
     
800
 
   Accounts payable and accrued liabilities
   
18,000
     
15,300
 
      Total liabilities
   
18,800
     
16,100
 
                 
Commitments and contingencies
               
                 
Shareholders' equity:
               
   Preferred stock, $0.10 par value; 1,000,000 shares authorized,
   
-
     
-
 
      -0- shares issued and outstanding for 2015 and 2014
               
   Common stock, $0.001 par value; 100,000,000 shares authorized,
   
9,106
     
9,106
 
      9,106,250 shares issued and outstanding 2015 and 2014
               
   Additional paid-in-capital
   
366,659
     
366,659
 
   (Accumulated deficit) retained earnings
   
(40,733
)
   
22,643
 
      Total shareholders' equity
   
335,032
     
398,408
 
Total liabilities and shareholders' equity
 
$
353,832
   
$
414,508
 
                 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
- 22 -

 
WestMountain Alternative Energy, Inc.
   
Statements of Operations
   
     
     
     
 
For the years ended
 
 
December 31
 
 
2015
 
2014
 
Operating Expenses
   
Sales, general and administrative expense
 
$
63,499
   
$
52,492
 
  Total operating expenses
   
63,499
     
52,492
 
                 
Net (loss) from operations
   
(63,499
)
   
(52,492
)
                 
Other income/(expense)
               
  Interest income
   
123
     
129
 
Net (loss) before income taxes
   
(63,376
)
   
(52,363
)
Provision for income taxes
   
-
     
457
 
Net (loss)
 
$
(63,376
)
 
$
(52,820
)
                 
                 
Basic and diluted income per share
 
$
(0.01
)
 
$
(0.01
)
Basic and diluted weighted average common
               
   shares outstanding
   
9,106,250
     
9,106,250
 
                 
 
The accompanying notes are an integral part of these financial statements.

 
 
- 23 -

 
 
WestMountain Alternative Energy, Inc.
         
Statement of Changes in Shareholders' Equity
         
               
               
           
(Accumulated
   
 
Preferred Stock
 
Common Stock
 
Additional
 
Deficit)
   
   
Par
   
Par
 
Paid-in
 
Retained
   
 
Shares
 
Value
 
Shares
 
Value
 
Capital
 
Earnings
 
Total
 
Balance at December 31, 2013
   
-
   
$
-
     
9,106,250
   
$
9,106
   
$
366,659
   
$
75,463
   
$
451,228
 
                                                         
Net loss, for the year ended,
                                                       
     December 31, 2014
   
-
     
-
     
-
     
-
     
-
     
(52,820
)
   
(52,820
)
                                                         
Balance at December 31, 2014
   
-
   
$
-
     
9,106,250
   
$
9,106
   
$
366,659
   
$
22,643
   
$
398,408
 
                                                         
Net loss, for the year ended,
                                                       
     December 31, 2015
   
-
     
-
     
-
     
-
     
-
     
(63,376
)
   
(63,376
)
                                                         
Balance at December 31, 2015
   
-
   
$
-
     
9,106,250
   
$
9,106
   
$
366,659
   
$
(40,733
)
 
$
335,032
 
                                                         
 

The accompanying notes are an integral part of these financial statements.

 
 
- 24 -

 
 
 
WestMountain Alternative Energy, Inc.
       
Statements of Cash Flows
       
         
         
         
   
For the years ended
 
   
December 31,
 
   
2015
   
2014
 
         
Cash flows from operating activities:
       
Net loss
 
$
(63,376
)
 
$
(52,820
)
Adjustments to reconcile net loss to net cash (used in)
               
  operating activities:
               
  Deferred tax (benefit)
   
-
     
457
 
  Depreciation and write off of assets
   
4,654
     
4,654
 
    Changes in operating assets and operating liabilities:
               
      Accounts receivable, related party
   
-
     
19,390
 
      Prepaid expenses and other assets
   
7,142
     
(8,047
)
      Accounts payable and accrued liabilities
   
2,700
     
-
 
      Accrued liabilities, related parties
   
-
     
(3,100
)
        Net cash (used in) operating activities
   
(48,880
)
   
(39,466
)
                 
Cash flows from investing activities:
               
      Purchases of property and equipment
   
-
     
-
 
      Payment for certificates of deposit
   
-
     
(126
)
      Proceeds from certificates of deposit
   
49,878
     
-
 
        Net cash provided by(used in) investing activities
   
49,878
     
(126
)
                 
        Net change in cash
   
998
     
(39,592
)
                 
Cash, beginning of year
   
185,464
     
225,056
 
                 
Cash, end of year
 
$
186,462
   
$
185,464
 
Supplemental disclosure of cash flow information:
               
  Cash paid during the period for:
               
    Income tax
 
$
-
   
$
-
 
                 
 
The accompanying notes are an integral part of these financial statements.

 
 
- 25 -

 
WestMountain Alternative Energy, Inc.
Notes to the Financial Statements
 


1)    Nature of Organization and Summary of Significant Accounting Policies

Nature of Organization and Basis of Presentation

WestMountain Alternative Energy, Inc. (the "Company") was incorporated in the state of Colorado on November 13, 2007 and on this date approved its business plan and commenced operations. 

Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Cash and Cash Equivalents
The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents.  As of December 31, 2015 and 2014 there were no cash equivalents. 
  
Accounts Receivable
Accounts receivable consists of amounts due from the management fees. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. Management records reasonable allowances to fairly represent accounts receivable amounts that are collectable.  For the years ended December 31, 2015 and 2014, the Company did not consider an allowance for doubtful accounts necessary.

Revenue
The Company plans to generate revenue by earning consulting fees and raising, investing and managing private equity and direct investment funds for high net worth individuals and institutions. Revenue is recognized through management fees based on the size of the funds that are managed and incentive income based on the performance of these funds.

Incentive revenue is recognized under the full accrual method. Under the full accrual method, profit may be realized in full when funds are invested and managed, provided (1) the profit is determinable and (2) the earnings process is virtually complete (the Company is not obligated to perform significant activities).

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, certificates of deposit, accounts payable, and accrued liabilities, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.

Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of operations.

Income Taxes
The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  Considerable judgment is required in determining when these events may occur and whether recovery of an asset, including the utilization of a net operating loss or other carryforward prior to its expiration, is more likely than not.

 
 
- 26 -

 
WestMountain Alternative Energy, Inc.
Notes to the Financial Statements
 

(1)    Nature of Organization and Summary of Significant Accounting Policies (continued)

The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The Company has identified its federal tax return and its state tax return in Colorado as "major" tax jurisdictions, as defined.  The tax years 2011-2015 remain open to examination.  We are not currently under examination by the Internal Revenue Service or any other jurisdiction.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded. 
 
Recently Issued Accounting Pronouncements
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which is intended to define management's responsibility to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosures. This standard will be effective for the Company for the year ending on October 31, 2016. Early application is permitted. The Company is currently evaluating the impact of ASU No. 2014-15.

 In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. We adopted ASU 2015-17 on a prospective basis as of December 31, 2015. The adoption of ASU 2015-17 did not have an impact on our financial statements.
 
 (2)   Certificates of Deposit
 
The Company has made it a policy to invest funds over and above the forecasted operating expenses in certificates of deposit.  Certificate of deposits typically have contractual maturities of 90-180 days.

 
(3)  Property and Equipment

The Company's property and equipment consists of a computer and related software.  As of December 31, 2015, the cost of property and equipment was $22,913 and accumulated depreciation was $20,633.  As of December 31, 2014, the cost of property and equipment was $22,913 and accumulated depreciation was $15,979.For each of the years ended December 31, 2015 and 2014, the Company recorded $4,654 in depreciation expense.  
  
 (4)  Income Taxes
 
Income taxes consist of the following:
 
Provision for taxes
       
   
2015
   
2014
 
Deferred:
       
Federal
 
$
-
   
$
362
 
State
   
-
     
95
 
     Total deferred
   
-
     
457
 
                 
Income tax expense (benefit)
 
$
-
   
$
457
 
                 
 
 
 
 
 
- 27 -


WestMountain Alternative Energy, Inc.
Notes to the Financial Statements
 

(4)  Income Taxes (Continued)
 
         
Deferred taxes consists of:
       
   
December 31,
 
   
2015
   
2014
 
 Deferred tax assets (Liabilities):
       
         
 Prepaid Expenses
 
$
(281
)
 
$
(1,634
)
 Fixed Assets
   
639
     
(86
)
 Net operating loss and other carryforwards
   
22,490
     
10,914
 
 Total deferred tax asset / (Liability) net
   
22,848
     
9,194
 
                 
 Total deferred tax assets / (Liabilities)
   
22,848
     
9,194
 
 Valuation allowance
   
(22,848
)
   
(9,194
)
 Net deferred tax assets / (Liabilities)
 
$
-
   
$
-
 
                 
The expense or benefit for income taxes differs from the amount computed by applying the U.S. federal
         
income tax rate of 15% to income or loss before income taxes as follows for the years ended:
               
                 
     
2015
     
2014
 
                 
U.S. federal income tax expense\(benefit) at statutory rates
 
$
(9,881
)
 
$
(6,922
)
State income tax expense\(benefit), net of federal impact
   
(2,595
)
   
(1,815
)
Change in valuation allowance
   
12,476
     
9,194
 
    
$
-
   
$
457
 
 
 
 
 
 
 
- 28 -

 
WestMountain Alternative Energy, Inc.
Notes to the Financial Statements
 

(5)    Related Parties

Bohemian Companies, LLC and BOCO Investments, LLC are two companies under common control.  Mr. Klemsz, our President, has been the Chief Investment Officer of BOCO Investments, LLC since March 2007.  Since there is common control between the two companies and a relationship with our Company President, we are considering all transactions with Bohemian Companies, LLC, related party transactions.

On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC, to provide us with certain defined services. These services included financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement. We compensated Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performed services on our behalf.

This Service Agreement was for the term of one year, ending December 31, 2009 but was extended to March 31, 2014, when the Service Agreement was terminated by agreement of both parties. Total expenses incurred with Bohemian Companies were $-0- for the year ended December 31, 2015 and $3,000 for the year ended December 31, 2014.  As of December 31, 2015 and 2014, the Company had no balance due to Bohemian Companies, LLC.
The Company entered into an agreement with SP Business Solutions ("SP") to provide accounting and related services for the Company.  The owner, Joni Troska, was appointed Secretary of WestMountain Alternative Energy, Inc. on March 19, 2010, and is considered to be a related party.  Total expenses incurred with SP were $2,300 and $2,300 for the fiscal years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, an accrual of $800 has been recorded for unpaid services.
 
 
 
- 29 -


 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

We did not have any disagreements on accounting and financial disclosures with our present accounting firm during the reporting period.

ITEM 9A. CONTROLS AND PROCEDURES.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act. As a result of this evaluation, we identified no material weaknesses in our internal control over financial reporting as of December 31, 2015.  Accordingly, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2015.

Management's Annual Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-(f) under the Exchange Act. Our internal control over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U. S. generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:
 
i.            pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
ii.            provide reasonable assurance that transactions are recorded as necessary to permit the preparation of our  consolidated financial statements in  accordance with U. S. generally accepted accounting principles, and  that our receipts and expenditures are being made only in accordance with  authorizations of our management and directors; and
iii.           provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.
 
Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2015. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework.

Management has concluded that our internal control over financial reporting was effective as of December 31, 2015.

Inherent Limitations Over Internal Controls

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations, including the possibility of human error and circumvention by collusion or overriding of controls. Accordingly, even an effective internal control system may not prevent or detect material misstatements on a timely basis. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
 
Changes in Internal Control Over Financial Reporting.

We have made no change in our internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
 
- 30 -


Attestation Report of the Registered Public Accounting Firm.

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this annual report on Form 10-K.

ITEM 9B. OTHER INFORMATION.

Nothing to report.


PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Set forth below is the name of the sole director and officer of the Company, all positions and offices with the Company held, the period during which he has served as such, and the business experience during at least the last five years:
 
     Name
 
Age
 
Positions and Offices Held
         
Brian L. Klemsz
 
57
 
President, Treasurer, Director
Joni K Troska
 
56
 
Secretary
           
Mr. Klemsz has been the Company's President, Treasurer, and sole Director since our inception. Since March, 2007, he has been the Chief Investment Officer of BOCO Investments, LLC.  He was President and Chief Investment Officer for GDBA Investments, LLLP, a private investment partnership from May 2000 until February 2007. He is currently also the President, Treasurer, and sole Director of WestMountain Distressed Debt, Inc., and Chairman, Treasurer, and sole Director of WestMountain Company, formerly known as WestMountain Asset Management, Inc., both of which are public companies. Mr. Klemsz received a Masters of Science in Accounting and Taxation in 1993 and a Masters of Science in Finance in 1990 from Colorado State University. He received his Bachelor of Science degree from the University of Colorado in 1981.

Ms. Troska currently serves as corporate Secretary of WestMountain Company, formerly known as WestMountain Asset Management, Inc and WestMountain Distressed Debt, Inc., both public companies. She started SP Business Solutions, a business consulting service, in April, 2002. Prior to that period, she was employed for fourteen years as the General Accounting Manager and financial liaison for software implementations and acquisition integration by Advanced Energy Industries, Inc., a public international electronics manufacturing company, in Fort Collins, Colorado.  While employed by Advanced Energy, she obtained her business degree in July 2001.
 
Family Relationships
 
There are no family relationships among our directors and executive officers. No director or executive officer has been a director or executive officer of any business which has filed a bankruptcy petition or had a bankruptcy petition filed against it. No director or executive officer has been convicted of a criminal offense within the past five years or is the subject of a pending criminal proceeding. No director or executive officer has been the subject of any order, judgment or decree of any court permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities. No director or officer has been found by a court to have violated a federal or state securities or commodities law.
 
 
 
- 31 -


Committees of the Board of Directors

There are no committees of the Board of Directors.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 (the “34 Act”) requires our officers and directors and persons owning more than ten percent of the Common Stock, to file initial reports of ownership and changes in ownership with the Securities and Exchange Commission (“SEC”). Additionally, Item 405 of Regulation S-K under the 34 Act requires us to identify in its Form 10-K and proxy statement those individuals for whom one of the above referenced reports was not filed on a timely basis during the most recent year or prior years. We have nothing to report in this regard.
 
Code of Ethics

Our board of directors has not adopted a code of ethics but plans to do so in the future.

Options/SAR Grants and Fiscal Year End Option Exercises and Values

We have not had a stock option plan or other similar incentive compensation plan for officers, directors and employees, and no stock options, restricted stock or SAR grants were granted or were outstanding at any time.
 

Item 11. EXECUTIVE COMPENSATION

Our officers and director do not receive any direct compensation for their services rendered to us, nor have they received such compensation in the past.  We have no plans to pay any compensation to our officer and director in the future.

We have entered into an agreement with SP Business Solutions ("SP") to provide accounting and related services for us.  The owner, Ms. Joni Troska, was appointed our corporate Secretary on March 19, 2010 and is considered to be a related party.  Fees are charged and paid on a quarterly basis.  As of December 31, 2015 an accrual of $800 has been recorded for unpaid services. Otherwise, our officers and director are not accruing any compensation pursuant to any agreement with us.
 
No retirement, pension, profit sharing, stock option or insurance programs or other similar programs have been adopted by us for the benefit of our officers or director.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
 
The following sets forth the number of shares of our $0.001 par value common stock beneficially owned by (i) each person who, as of December 31, 2015, was known by us to own beneficially more than five percent (5%) of its common stock; (ii) our individual Directors and (iii) our Officers and Directors as a group. A total of 9,106,250 common shares were issued and outstanding as of December 31, 2015.

 
 
 
 
- 32 -

  
Name and Address
Amount and Nature of
Percent of
of Beneficial Owner
Beneficial Ownership(1)(2)
Class
     
WestMountain Green, LLC (3) 
8,050,000
88.4%
123 North College Avenue, Ste 200
   
Fort Collins, Colorado 80524
   
     
Brian L. Klemsz
(3)
 
123 North College Avenue, Ste 200
   
Fort Collins, Colorado 80524
   
     
Joni K. Troska
100,000
1.1%
123 North College Avenue, Ste 200
   
Fort Collins, Colorado 80524
   

All Officers and Directors as a Group
1,452,400
15.95%
(two persons)
   
_______________
 
   (1) All ownership is beneficial and of record, unless indicated otherwise.
   (2) The Beneficial owner has sole voting and investment power with respect to the shares shown.
   (3)  Mr. Klemsz owns 16.8% of WestMountain Green, LLC.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC to provide us with certain defined services. These services included financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement.  We compensated Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performed services on our behalf. We received invoices not less than quarterly from Bohemian Companies, LLC. This Service Agreement was for the term of one year, ending December 31, 2014. As of March 31, 2014, the Service Agreement was terminated by agreement of both parties. Total expenses incurred with Bohemian Companies were $-0- for the year ended December 31, 2015 and $3,000 for the year ended December 31, 2014.  As of December 31, 2015 and 2014, we did not have a balance due to Bohemian Companies, LLC.
 
The Company entered into an agreement with SP Business Solutions ("SP") to provide accounting and related services for the Company.  The owner, Joni Troska, was appointed Secretary of WestMountain Alternative Energy, Inc. on March 19, 2010, and is considered to be a related party.  Total expenses incurred with SP were $2,300 and $2,300 for the fiscal years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, an accrual of $800 has been recorded for unpaid services.
 
 
 
- 33 -


ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES
 
Our independent registered public accounting firm, EKS&H LLLP billed an aggregate of $17,240 for the year ended December 31, 2015 and for professional services rendered for the audit of the Company's annual financial statements and review of the financial statements included in our quarterly reports. EKS&H LLLP, billed an aggregate of $16,378 for the year ended December 31, 2014 and for professional services rendered for the audit of the Company's annual financial statements and review of the financial statements included in our quarterly reports.

We do not have an audit committee and as a result our board of directors performs the duties of an audit committee. Our board of directors evaluates the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.

 
ITEM 15. EXHIBITS FINANCIAL STATEMENT SCHEDULES.

The following financial information is filed as part of this report:

                    (1) FINANCIAL STATEMENTS

(2) SCHEDULES

(3) EXHIBITS. The following exhibits required by Item 601 to be filed herewith are incorporated by reference to previously filed documents:
 
 
Exhibit
Number
 
 
                   Description                                                                                                                                            
   
3.1*
Articles of Incorporation
3.2*
Bylaws
   3.3***
Amendment to Articles of Incorporation
10.1**
Service Agreement With Bohemian Companies, LLC
31.1
Certification of CEO/CFO pursuant to Sec. 302
32.1
Certification of CEO/CFO pursuant to Sec. 906

  *     Previously filed with Form SB-2 Registration Statement, January 2, 2008.
  **   Previously filed with Form 10-KSB Registration Statement, February 29, 2008
  *** Previously filed with Form 10-Q, August 11, 2014
 

 
 
- 34 -


SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March 14, 2016.


 
WESTMOUNTAIN ALTERNATIVE ENERGY, INC.
 
       
 
By:     
/s/ Brian L. Klemsz
 
 
Brian L. Klemsz
 
 
Chief Executive Officer and President
(principal executive officer and principal financial and accounting officer)
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacity and on the date indicated.

     
       
Date: March 14, 2016.
By: 
/s/ Brian L. Klemsz
 
 
Brian L. Klemsz
 
 
Director
 
 
 
 
 
 
- 35 -


 
EX-31 2 wetm_ex311.htm EXHIBIT 31.1 wetm_ex311.htm

 Exhibit 31.1
CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002

     I, Brian L. Klemsz, certify that:

1)   I have reviewed this annual report of WestMountain Alternative Energy, Inc. on Form 10-K;

2)   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4)   I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))  for the Registrant and have;

(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure the material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)   I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process summarize and report financial information; and

(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls over financial reporting.
 
     
Date: March 14, 2016.
 
/s/ Brian L. Klemsz
 
Brian L. Klemsz
 
Chief Executive Officer
 
Chief Financial Officer

EX-32 3 wetm_ex321.htm EXHIBIT 32 wetm_ex321.htm
 
                                                                   Exhibit 32.1


CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT 0F 2002

In connection with the Annual Report of WestMountain Alternative Energy, Inc. (the Company") on Form 10-K for the period ended herein as filed with the Securities and Exchange Commission (the "Report"), I. Brian L. Klemsz, Chief Executive and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:

 
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
(2)
The information contained in the Report fully presents, in all material respects, the financial condition and results of operations or the Company.

 
   
WestMountain Alternative Energy, Inc.
 
Date: March 14, 2016.
By:
/s/ Brian L. Klemsz
 
Brian L. Klemsz
 
Chief Executive Officer
 
Chief Financial Officer

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[Abstract] Certificates of Deposit Property, Plant and Equipment [Abstract] Property and Equipment Income Tax Disclosure [Abstract] Income Taxes Related Party Transactions [Abstract] Related Parties Nature of Organization and Basis of Presentation Use of Estimates Cash and Cash Equivalents Accounts Receivable Revenue Fair Value of Financial Instruments Property, Equipment and Depreciation Income Taxes Recently Issued Accounting Pronouncements Provision for taxes Deferred taxes components Reconciliation tax benefit Reconciliation of change in the net deferred tax assets and liabilities Cost of property and equipment Accumulated depreciation Depreciation expense Deferred: (benefit) expense Federal State Total deferred Income tax expense (benefit) Deferred tax assets (Liabilities): Prepaid Expenses Fixed Assets Net operating loss and other carryforwards Total deferred tax asset / (Liability) net Total deferred tax assets / (Liabilities) Valuation allowance Net deferred tax assets / 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Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2015
Mar. 09, 2016
Unaudited Interim Condensed Financial Statements Policy Text Block    
Document Type 10-K  
Entity Registrant Name WestMountain Alternative Energy Inc  
Entity Central Index Key 0001421636  
Document Period End Date Dec. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus FY  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   9,106,250
Entity Public Float $ 198,713  
Current Reporting Status Yes  
WellKnown Seasoned Issuer No  
Voluntary Filers No  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.3.1.900
Balance Sheets - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Assets    
Cash $ 186,462 $ 185,464
Certificates of deposit 155,714 205,592
Income tax receivable 7,891 7,891
Prepaid expenses and other assets 1,485 8,627
Property and equipment, net 2,280 6,934
Total assets 353,832 414,508
Liabilities:    
Indebtedness to related parties 800 800
Accrued liabilities 18,000 15,300
Total liabilities $ 18,800 $ 16,100
Shareholders' equity:    
Preferred stock, $.10 par value; 1,000,000 shares authorized, -0- shares issued and outstanding for 2015 and 2014
Common stock, $0.001 par value; 100,000,000 shares authorized, 9,106,250 shares issued and outstanding 2015 and 2014 $ 9,106 $ 9,106
Additional paid-in-capital 366,659 366,659
Retained earnings (40,733) 22,643
Total shareholders' equity 335,032 398,408
Total liabilities and shareholders' equity $ 353,832 $ 414,508
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.3.1.900
Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]    
Preferred stock, par value per share $ 0.1 $ 0.1
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 9,106,250 9,106,250
Common stock, shares outstanding 9,106,250 9,106,250
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.3.1.900
Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Operating Expenses    
Sales, general and administrative expense $ 63,499 $ 52,492
Total operating expenses 63,499 52,492
Net (loss )income from operations (63,499) (52,492)
Other income/(expense)    
Interest income 123 129
Net (loss) before income taxes $ (63,376) (52,363)
Provision for income taxes 457
Net (loss) $ (63,376) $ (52,820)
Basic and diluted income per share $ (0.01) $ (0.01)
Basic and diluted weighted average common shares outstanding 9,106,250 9,106,250
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholders Equity - USD ($)
Common Stock
Additional Paid-In Capital
Retained Earnings
Total
Beginning Balance, Shares at Dec. 31, 2013 9,106,250      
Beginning Balance, Amount at Dec. 31, 2013 $ 9,106 $ 366,659 $ 75,463  
Net Income     (52,820) $ (52,820)
Ending Balance, Shares at Dec. 31, 2014 9,106,250      
Ending Balance, Amount at Dec. 31, 2014 $ 9,106 366,659 22,643 398,408
Net Income     (63,376) (63,376)
Ending Balance, Shares at Dec. 31, 2015 9,106,250      
Ending Balance, Amount at Dec. 31, 2015 $ 9,106 $ 366,659 $ (40,733) $ 335,032
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net loss $ (63,376) $ (52,820)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Deferred tax (benefit) 457
Depreciation and write off of assets $ 4,654 4,654
Changes in operating assets and operating liabilities:    
Accounts receivable, related party 19,390
Prepaid expenses and other assets $ 7,142 $ (8,047)
Accounts payable and accrued liabilities $ 2,700
Accrued liabilities, related parties $ (3,100)
Net cash (used in) operating activities $ (48,880) $ (39,466)
Cash flows from investing activities:    
Purchases of property and equipment
Payments for certificates of deposit $ (126)
Proceeds from certificates of deposit $ 49,878
Net cash (used in) investing activities 49,878 $ (126)
Net change in cash 998 (39,592)
Cash, beginning of period 185,464 225,056
Cash, end of period $ 186,462 $ 185,464
Supplemental disclosure of cash flow information:    
Cash paid during the period for Income tax
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.3.1.900
1 Nature of Organization and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Organization and Summary of Significant Accounting Policies

1)    Nature of Organization and Summary of Significant Accounting Policies

 

Nature of Organization and Basis of Presentation

 

WestMountain Alternative Energy, Inc. (the "Company") was incorporated in the state of Colorado on November 13, 2007 and on this date approved its business plan and commenced operations. 

 

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents.  As of December 31, 2015 and 2014 there were no cash equivalents. 

  

Accounts Receivable

Accounts receivable consists of amounts due from the management fees. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. Management records reasonable allowances to fairly represent accounts receivable amounts that are collectable.  For the years ended December 31, 2015 and 2014, the Company did not consider an allowance for doubtful accounts necessary.

 

Revenue

The Company plans to generate revenue by earning consulting fees and raising, investing and managing private equity and direct investment funds for high net worth individuals and institutions. Revenue is recognized through management fees based on the size of the funds that are managed and incentive income based on the performance of these funds.

 

Incentive revenue is recognized under the full accrual method. Under the full accrual method, profit may be realized in full when funds are invested and managed, provided (1) the profit is determinable and (2) the earnings process is virtually complete (the Company is not obligated to perform significant activities).

 

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, certificates of deposit, accounts payable, and accrued liabilities, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.

 

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of operations.

 

Income Taxes

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  Considerable judgment is required in determining when these events may occur and whether recovery of an asset, including the utilization of a net operating loss or other carryforward prior to its expiration, is more likely than not.

 

 

The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The Company has identified its federal tax return and its state tax return in Colorado as "major" tax jurisdictions, as defined.  The tax years 2011-2015 remain open to examination.  We are not currently under examination by the Internal Revenue Service or any other jurisdiction.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded. 

 

Recently Issued Accounting Pronouncements

On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which is intended to define management's responsibility to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosures. This standard will be effective for the Company for the year ending on October 31, 2016. Early application is permitted. The Company is currently evaluating the impact of ASU No. 2014-15.

 

 In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. We adopted ASU 2015-17 on a prospective basis as of December 31, 2015. The adoption of ASU 2015-17 did not have an impact on our financial statements.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.3.1.900
2 Certificates of Deposit
12 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Certificates of Deposit

(2)   Certificates of Deposit

 

The Company has made it a policy to invest funds over and above the forecasted operating expenses in certificates of deposit.  Certificate of deposits typically have contractual maturities of 90-180 days.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.3.1.900
3 Property and Equipment
12 Months Ended
Dec. 31, 2015
Property, Plant and Equipment [Abstract]  
Property and Equipment

(3)  Property and Equipment

 

The Company's property and equipment consists of a computer and related software.  As of December 31, 2015, the cost of property and equipment was $22,913 and accumulated depreciation was $20,633.  As of December 31, 2014, the cost of property and equipment was $22,913 and accumulated depreciation was $15,979.For each of the years ended December 31, 2015 and 2014, the Company recorded $4,654 in depreciation expense.  

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

(4)  Income Taxes

 

Income taxes consist of the following:

 

Provision for taxes            
    2015     2014  
Deferred:            
Federal   $ -     $ 362  
State     -       95  
     Total deferred     -       457  
                 
Income tax expense (benefit)   $ -     $ 457  
                 

 

             
Deferred taxes consists of:            
    December 31,  
    2015     2014  
 Deferred tax assets (Liabilities):            
             
 Prepaid Expenses   $ (281 )   $ (1,634 )
 Fixed Assets     639       (86 )
 Net operating loss and other carryforwards     22,490       10,914  
 Total deferred tax asset / (Liability) net     22,848       9,194  
                 
 Total deferred tax assets / (Liabilities)     22,848       9,194  
 Valuation allowance     (22,848 )     (9,194 )
 Net deferred tax assets / (Liabilities)   $ -     $ -  
                 
The expense or benefit for income taxes differs from the amount computed by applying the U.S. federal          
income tax rate of 15% to income or loss before income taxes as follows for the years ended:                
                 
      2015       2014  
                 
U.S. federal income tax expense\(benefit) at statutory rates   $ (9,881 )   $ (6,922 )
State income tax expense\(benefit), net of federal impact     (2,595 )     (1,815 )
Change in valuation allowance     12,476       9,194  
    $ -     $ 457  
                 
                 
Reconciliation of change in the net deferred tax assets and liabilities:                
                 
      2015          
Net change in deferred income tax assets and liabilities from the preceeding table:   $ -          
Net change in deferred income tax assets and liabilities associated with Other Comprehensive Income     -          
                 
Deferred income tax provision for the period     -          
                 

 

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
5 Related Parties
12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Related Parties

(5)    Related Parties

 

Bohemian Companies, LLC and BOCO Investments, LLC are two companies under common control.  Mr. Klemsz, our President, has been the Chief Investment Officer of BOCO Investments, LLC since March 2007.  Since there is common control between the two companies and a relationship with our Company President, we are considering all transactions with Bohemian Companies, LLC, related party transactions.

 

On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC, to provide us with certain defined services. These services included financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement. We compensated Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performed services on our behalf.

 

This Service Agreement was for the term of one year, ending December 31, 2009 but was extended to March 31, 2014, when the Service Agreement was terminated by agreement of both parties. Total expenses incurred with Bohemian Companies were $-0- for the year ended December 31, 2015 and $3,000 for the year ended December 31, 2014.  As of December 31, 2015 and 2014, the Company had no balance due to Bohemian Companies, LLC.

 

The Company entered into an agreement with SP Business Solutions ("SP") to provide accounting and related services for the Company.  The owner, Joni Troska, was appointed Secretary of WestMountain Alternative Energy, Inc. on March 19, 2010, and is considered to be a related party.  Total expenses incurred with SP were $2,300 and $2,300 for the fiscal years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, an accrual of $800 has been recorded for unpaid services.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.3.1.900
1 Nature of Organization and Summary of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Organization and Basis of Presentation

Nature of Organization and Basis of Presentation

 

WestMountain Alternative Energy, Inc. (the "Company") was incorporated in the state of Colorado on November 13, 2007 and on this date approved its business plan and commenced operations. 

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents.  As of December 31, 2015 and 2014 there were no cash equivalents. 

Accounts Receivable

Accounts Receivable

Accounts receivable consists of amounts due from the management fees. The Company considers accounts more than 30 days old to be past due. The Company uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. Management records reasonable allowances to fairly represent accounts receivable amounts that are collectable.  For the years ended December 31, 2015 and 2014, the Company did not consider an allowance for doubtful accounts necessary.

Revenue

Revenue

The Company plans to generate revenue by earning consulting fees and raising, investing and managing private equity and direct investment funds for high net worth individuals and institutions. Revenue is recognized through management fees based on the size of the funds that are managed and incentive income based on the performance of these funds.

 

Incentive revenue is recognized under the full accrual method. Under the full accrual method, profit may be realized in full when funds are invested and managed, provided (1) the profit is determinable and (2) the earnings process is virtually complete (the Company is not obligated to perform significant activities).

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, certificates of deposit, accounts payable, and accrued liabilities, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.

Property, Equipment and Depreciation

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to seven years. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of operations.

Income Taxes

Income Taxes

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  Considerable judgment is required in determining when these events may occur and whether recovery of an asset, including the utilization of a net operating loss or other carryforward prior to its expiration, is more likely than not.

 

 The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The Company has identified its federal tax return and its state tax return in Colorado as "major" tax jurisdictions, as defined.  The tax years 2011-2015 remain open to examination.  We are not currently under examination by the Internal Revenue Service or any other jurisdiction.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded. 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which is intended to define management's responsibility to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern and to provide related footnote disclosures. This standard will be effective for the Company for the year ending on October 31, 2016. Early application is permitted. The Company is currently evaluating the impact of ASU No. 2014-15.

 

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. We adopted ASU 2015-17 on a prospective basis as of December 31, 2015. The adoption of ASU 2015-17 did not have an impact on our financial statements.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Provision for taxes

 

Provision for taxes            
    2015     2014  
Deferred:            
Federal   $ -     $ 362  
State     -       95  
     Total deferred     -       457  
                 
Income tax expense (benefit)   $ -     $ 457  
                 

Deferred taxes components

 

             
Deferred taxes consists of:            
    December 31,  
    2015     2014  
 Deferred tax assets (Liabilities):            
             
 Prepaid Expenses   $ (281 )   $ (1,634 )
 Fixed Assets     639       (86 )
 Net operating loss and other carryforwards     22,490       10,914  
 Total deferred tax asset / (Liability) net     22,848       9,194  
                 
 Total deferred tax assets / (Liabilities)     22,848       9,194  
 Valuation allowance     (22,848 )     (9,194 )
 Net deferred tax assets / (Liabilities)   $ -     $ -  

Reconciliation tax benefit

 

                 
The expense or benefit for income taxes differs from the amount computed by applying the U.S. federal income tax rate of 15% to income or loss before income taxes as follows for the years ended:          
                 
                 
      2015       2014  
                 
U.S. federal income tax expense\(benefit) at statutory rates   $ (9,881 )   $ (6,922 )
State income tax expense\(benefit), net of federal impact     (2,595 )     (1,815 )
Change in valuation allowance     12,476       9,194  
    $ -     $ 457  

Reconciliation of change in the net deferred tax assets and liabilities

 

Reconciliation of change in the net deferred tax assets and liabilities:                
                 
      2015          
Net change in deferred income tax assets and liabilities from the preceeding table:   $ -          
Net change in deferred income tax assets and liabilities associated with Other Comprehensive Income     -          
                 
Deferred income tax provision for the period     -          
                 

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
3 Property and Equipment (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Abstract]    
Cost of property and equipment $ 22,913 $ 22,913
Accumulated depreciation 20,633 15,979
Depreciation expense $ 4,654 $ 4,654
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes - Provision for taxes (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Deferred: (benefit) expense    
Federal $ 362
State 95
Total deferred 457
Income tax expense (benefit) $ 457
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes - Deferred taxes components (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets (Liabilities):    
Prepaid Expenses $ (281) $ (1,634)
Fixed Assets 639 (86)
Net operating loss and other carryforwards 22,490 10,914
Total deferred tax asset / (Liability) net 22,848 9,194
Total deferred tax assets / (Liabilities) 22,848 9,194
Valuation allowance $ (22,848) $ (9,194)
Net deferred tax assets / (Liabilities)
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes - Reconciliation tax benefit (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]    
U.S. federal income tax expense\(benefit) at statutory rates $ (9,881) $ (6,922)
State income tax expense\(benefit), net of federal impact (2,595) (1,815)
Change in valuation allowance $ 12,476 $ 9,194
Income tax (benefit) expense
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
4 Income Taxes - Reconciliation of change in the net deferred tax assets and liabilities (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of change in the net deferred tax assets and liabilities:    
Net change in deferred income tax assets and liabilities from the preceeding table:
Net change in deferred income tax assets and liabilities associated with Other Comprehensive Income
Deferred income tax benefit for the period
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
5 Related Parties (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Related Party Transactions [Abstract]    
Expenses for professional services $ 2,300 $ 2,300
Management fees, related parties   3,000
Indebtedness to related parties $ 800 $ 800
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