POS AM 1 energyedges1-03222012.htm POS-AM energyedges1-03222012.htm
 


 
As filed with the Securities and Exchange Commission on March 23, 2012
File No. 333-167853
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

POST-EFFECTIVE AMENDMENT NO. 3
TO
FORM S-1

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
 
 
ENERGY EDGE TECHNOLOGIES CORPORATION
(Exact Name of Registrant in its Charter)

NEW JERSEY
8711
52-2439239
(State of Incorporation)
(Primary Standard Classification Code)
(IRS Employer ID No.)
 
1200 Route 22 East, Suite 2000
Bridgewater, New Jersey 08807
1-888-729-5722 x 100
(Address and Telephone Number of Registrant’s Principal
Executive Offices and Principal Place of Business)

Denise Carek - Corporation Service Company
830 Bear Tavern Road
West Trenton, NJ 08628
1-866-403-5272
(Name, Address and Telephone Number of Agent for Service)
 
Copies of communications to:

VINCENT & REES, L.C.
Attn: David M. Rees
175 South Main, 15th Floor
Salt Lake City, Utah 84111
 
Approximate date of commencement of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective. If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. þ


 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, please check the following box and list the Securities Act registration Statement number of the earlier effective registration statement for the same offering. o
 
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering þ The registration statement number of the effective registration statement is 333-160930.

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
o
Smaller Reporting Company
þ
(Do not check if a smaller reporting company)    

CALCULATION OF REGISTRATION FEE
 
Title of Each Class
of Securities
to be Registered
Amount
to be
Registered
Proposed
Maximum
Offering Price
Per Share
Proposed
Maximum
Aggregate
Offering Price
Amount of
Registration
Fee
Newly Issued Common Stock to be registered as part of a Primary Offering (as hereinafter defined)
20,000,000
$0.20
$4,000,000
$659.03
Common Stock Issued and Outstanding to be registered as part of a Secondary Offering by certain Selling Security Holders (as hereinafter defined)
17,506,825
$0.10
$1,750,682.50
$
Total
37,506,825
 
$5,750,682.50
$

The offering price has been estimated solely for the purpose of computing the amount of the registration fee in accordance with Rule 457(o). Our common stock is listed on the OTC Bulletin Board under the symbol “EEDG” and sold at prevailing market prices or privately negotiated prices. We have agreed to bear the expenses relating to the registration of the shares for the selling security holders.
 
In the event of a stock split, stock dividend or similar transaction involving our common stock, the number of shares registered shall automatically be increased to cover the additional shares of common stock issuable pursuant to Rule 416 under the Securities Act of 1933, as amended.

The offering price of the common stock has been arbitrarily determined and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets, book value, historical earnings or net worth.




SUBJECT TO COMPLETION, DATED MARCH 20, 2012

Prospectus
30,091,869 shares

ENERGY EDGE TECHNOLOGIES CORPORATION
20,000,000 shares of Energy Edge Technologies Corporation Offered at $0.20 per share
17,506,825 shares Offered at $0.10 per share by The Selling Shareholders
 
 
 
Per Share
 
 
Minimum Sale Total
 
 
Maximum Sale Total
 
Public Offering Price
 
$
0.20
 
 
 
5,000,000
 
 
 
20,000,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting discounts and Commissions
 
$
0.00
 
 
$
0.00
 
 
$
0.00
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds to Energy Edge Technologies Corporation
 
$
0.20
 
 
$
1,000,000
 
 
$
4,000,000
 
 
Energy Edge Technologies Corporation (referred to herein as “Energy Edge”, “EETC” or the “Company”) is offering 20,000,000 shares of its common stock at a price of $0.20 per share on a best efforts basis (the “Primary Offering”).
 
In addition, there are 3,000,000 shares of common stock being registered for sale at a price of $0.10 per share by Robert Holdsworth, our sole officer and director, and 14,506,825 shares of common stock being registered for sale at a price of $0.10 per share by other certain existing holders of the securities, referred to as Selling Security Holders throughout this document (the “Secondary Offering”). The total number of shares registered in this prospectus is 17,506,825. The Company will not receive any of the proceeds from the sale of shares being sold by the Selling Security Holders.

Our common stock is currently listed on the OTC Bulletin Board under the symbol “EEDG”. On December 27, 2011, the last reported sale price of our shares on the OTC Bulletin Board was $0.0107 per share.
 
Recent Developments

We have incorporated by reference into this prospectus the Annual Report on Form 10-K of Energy Edge Technologies Corporation for the fiscal year ended December 31, 2010 and certain other reports and proxy statement as listed in the section entitled “Incorporation by Reference of Certain Documents” of this Prospectus. The information incorporated by reference to this prospectus supplement updates and supplements Energy Edge Technologies Corporation’s Prospectus dated February 14, 2011 (the “Prospectus”).

We will provide to each person, including any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the reports or documents that have been incorporated by reference in the prospectus contained in the registration statement but not delivered with the prospectus (i) upon written or oral request; and (iii) at no cost to the requester. Please contact us at 1200 Route 22 East, Suite 2000, Bridgewater, New Jersey 08807, or (888) 729 – 5722 x 100 to request any documents. You can also find links to these documents electronically at http://energyet.com/contact-us/investors/.
 
 


The public may read and copy any materials it files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. If the registrant is an electronic filer, the SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC and state the address of that site (http://www.sec.gov).

Investing in our stock involves substantial risks. See “Risk Factors” beginning on page 10.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
 
The Date of This Prospectus is: March 20, 2012

EXPLANATORY NOTE
 
This Post-Effective Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-167853) (the “Registration Statement”) of Energy Edge Technologies Corporation (the “Company”) is being filed pursuant to the undertakings in Item 17 of the Registration Statement to update and supplement the information contained in the Registration Statement, as originally declared effective by the Securities and Exchange Commission on February 15, 2011, to include, among other things, updated financial statements and Company information.
 
The information included in this filing updates and supplements the Registration Statement and the Prospectus contained therein. Except to the extent specifically updated and supplemented by this filing, the Prospectus contained in the Registration Statement remains unchanged and continues to form a part of this Registration Statement, and, accordingly, such Prospectus has not been reprinted in Part I of this Registration Statement. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement.
 
 



You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information. The Selling Security Holders are not making an offer of these securities in any state where the offer is not permitted. You should not assume that the information contained in this prospectus is accurate as of any date other than the date on the front of this prospectus

 
 

 
This summary highlights some information from this prospectus, and it may not contain all of the information that is important to you. You should read the following summary together with the more detailed information regarding our company and the common stock being sold in this offering, including “Risk Factors” and our consolidated financial statements and related notes, included elsewhere in, or incorporated by reference into, this prospectus.
ABOUT OUR COMPANY

Except as otherwise indicated by the context, references in this report to "EETC" "we," "us," or "our," "Successor" and the "Company" are references to the combined business of Energy Edge Technologies Corporation and its wholly-owned subsidiaries.
 
Overview

Energy Edge Technologies Corporation (“EETC”) was founded in 2004 as a New Jersey corporation by Robert Holdsworth. EETC has grown over the past seven years, through energy efficiency and conservation projects for a variety of customers including municipalities, breweries, pharmaceuticals, restaurants, food processing, manufacturing, printing, leisure, hospitals, office buildings, etc. EETC projects are suitable and applicable for any type of customer whose energy bill exceeds $10,000 monthly.
 
Company Information
 
Energy Edge Technologies Corporation (“EETC”) is an energy engineering and services company that specializes in providing companies, institutions and government entities with turnkey, whole facility solutions that reduce energy costs and increase the efficiency of existing and new buildings. EETC utilizes independently contracted professionals, industrial and electrical engineers, Leadership in Energy and Environmental Design (“LEED”) accredited professionals and business entrepreneurs. EETC offers a whole facility solution that covers gas and electrical energy consumption. Most competitors offer solutions that are one dimensional and single focused, such as simply lighting, HVAC or refrigeration individually. EETC delivers a solution that combines multiple approaches and technologies to increase the efficiency of the diverse and various electrical and gas consuming loads across a facility. Most importantly, EETC’s approach provides its customers with bottom line cost reduction and project pay back – typically under 36 months, although this can vary depending on the customer’s needs Lastly, EETC reduces the financial risk for its customers by backing projects with reimbursement contingency insurance underwritten by Lloyds of London. The Lloyds of London backed policy ensures that every penny invested by the customer is returned within the prescribed payback period through energy cost reduction. If any shortfall occurs the policy covers the customer for the difference. The Lloyds of London insurance policy is a $1,500,000 reimbursement contingency insurance policy that backs the guaranteed energy savings and project payback and return on investment for our customers. The effective date of this policy is May 26, 2010. The policy period is from May 26th 2010 to May 26th 2011. Any losses occurring on new and existing contracts reported during this time frame will be covered by Lloyds of London. The policy requires ongoing measurement and verification of energy reduction results and savings as well as notification if targets are not being met. If a shortfall were to occur in the projected savings for a customer, Lloyds of London would make up 90% of the difference, and Energy Edge would make up the remaining 10% of the difference. To date we have had no claims filed.


Use of Certain Defined Terms and Treatment of Stock Split

Except as otherwise indicated by the context, references in this report to:

"EETC" "we," "us," or "our," "Successor" and the "Company" are references to the combined business of Energy Edge Technologies Corporation and its wholly-owned subsidiaries.
Securities Act” are references to the Securities Act of 1933, as amended and references to “Exchange Act” are references to the Securities Exchange Act of 1934, as amended
“Primary Offering” refers to the Newly Issued Common Stock to be registered in this prospectus.
“Secondary Offering” refers to the Common Stock Issued and Outstanding to be registered as part of this prospectus by certain Selling Security Holders.
“Selling Security Holders” refers to the existing holders of the securities.
“IEEE” refers to the Institute of Electrical and Electronics Engineers, which is an association dedicated to advancing technological innovation for the benefit of humanity.
“DOE” refers to the United States Department of Energy.
“USGBC” refers to the U.S. Green Building Council, which is a non-profit organization that focuses on cost-efficient and energy-saving green buildings.
“Therm consumption” is another term for British Thermal Unit (BTU), which is a measurement of natural gas used or consumed.
“UL Listed” or “Underwriters Laboratory Listed” means that certain technologies are tested on electrical components and equipment.
“CSA Approved” or “Canada Standards Association” is similar to the Underwriters Laboratory but testing is even more stringent and CSA Approval is required by law in Canada.
“LEED” or “Leadership in Energy and Environmental Design” is an internationally recognized green building certification system, which provides third-party verification that a building or community was designed an d built using strategies aimed at improving performance across metrics such as energy savings, water efficiency and CO2 emissions reduction.
 
 


SUMMARY OF THE OFFERINGS

Summary of the Primary Offering
 
 
Maximum
 
Minimum
Newly Issued Common Stock to be registered as part of a Primary Offering
20,000,000 shares of common stock
 
5,000,000 shares of common stock
 
 
 
 
Minimum Purchase Requirement Per Investor
NONE
 
NONE
 
 
 
 
Offering Price:
$0.20
 
$0.20
       
Common Stock Issued and Outstanding to be registered as part of a Secondary Offering by Selling Security Holders:
17,506,825
Shares of common stock
 
17,506,825
shares of common stock
 
 
 
 
Offering Price:
$0.10
 
$0.10
 
 
 
 
Number of Shares Issued and Outstanding before the offering:
49,006,825
 
49,006,825
 
 
 
 
Number of Shares Issued and Outstanding after the offering, if all the shares are sold:
69,006,825
 
54,006,825
 
 
 
 
Estimated Total Proceeds:
$4,000,000
 
$1,000,000
 
 
 
 
Offering Expenses:
$78,344.64
 
$78,344.64
 
 
 
 
Net Proceeds after Offering Expenses:
$3,921,655.36
 
$921,655.36
 
 
 
 
Use of Proceeds:
Increase revenues, increase sales force, marketing, advertising and publicity, salaries, consulting fees, initiate promotion to vendors to engage in contracts and initiating the process of taking the company public via OTCBB and for other general administrative expenses.
 
In the event that we sell less than the maximum shares in this offering, our priorities for use of the proceeds are as follows:
· Filing of the Registration Statement and associated fees with the filing of the Registration Statement and becoming a publicly traded company
· Hiring of new employees
 
       
 
See “Use of Proceeds” on page 19.
 
See “Use of Proceeds” on page 19.
       
Subscriptions:
Subscriptions are to be made payable to: Energy Edge Technologies Corporation, 1200 Route 22 East, Suite 2000, Bridgewater, NJ 08807
 
Subscriptions are to be made payable to: Energy Edge Technologies Corporation, 1200 Route 22 East, Suite 200, Bridgewater, NJ 08807


 

Summary of the Secondary Offering

There are 3,000,000 shares of common stock being registered for sale at a price of $0.10 per share by Robert Holdsworth, our sole officer and director, and 14,506,825 shares of common stock being registered for sale at a price of $0.10 per share by other certain existing holders of the securities, referred to as Selling Security Holders throughout this document as part of the “Secondary Offering”. The Company will not receive any of the proceeds from the sale of shares being sold by the Selling Security Holders.
 
The Selling Security Holders’ shares offered by this Prospectus may be sold from time to time by the Selling Security Holders at a price of $0.10 per share until such time as the Company’s shares are listed on the OTC Bulletin Board or a national exchange and thereafter at prevailing market prices or at privately negotiated prices, in one or more transactions that may take place on the over-the-counter market including ordinary broker's transactions, privately-negotiated transactions or through sales to one or more dealers for resale of such. Usual and customary or specifically negotiated brokerage fees or commissions may be paid by the Selling Security Holders in connection with such sales.
 
Where You Can Find Us
 
Our corporate headquarters are located at 1200 Route 22 East, Suite 2000, Bridgewater, New Jersey 08807. Our telephone number is 1-888-729-5722 x 100.

INCORPORATION BY REFERENCE OF CERTAIN DOCUMENTS
 
The Securities and Exchange Commission (the “SEC”) allows us to incorporate by reference the information contained in documents that we file with them. We are incorporating by reference into this prospectus supplement the documents listed below (excluding any information furnished under Items 2.02 or 7.01 in any Current Report on Form 8-K):

·  
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, that we filed with the SEC on April 15, 2010;
·  
Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011, that we filed with the SEC on May 23, 2011;
·  
Our Quarterly Report on Form 10-Q (and subsequent amendments) for the fiscal quarter ended June 30, 2011, that was originally filed with the SEC on August 15, 2011;
·  
Our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2011, that we filed with the SEC on December 5, 2011; and
·  
Our Current Reports on Form 8-K filed with the SEC on April 20, 2011, June 14, 2011, and November 15, 2011.
 
By incorporating by reference the documents listed above, we can disclose important information to you by referring you to such documents, which are considered part of this prospectus supplement.
 
Any statement contained in a document incorporated or deemed to be incorporated by reference into this prospectus supplement will be deemed to be modified or superseded for purposes of this prospectus supplement to the extent that a statement contained in this prospectus supplement or any other subsequently filed document that is deemed to be incorporated by reference into this prospectus supplement modifies or supersedes the statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this prospectus supplement.
 
 
9

 
 
 
We also refer you to the section entitled “Prospectus Summary” starting on page 6 of the Prospectus for the prospectus summary information, to the section entitled “Use of Proceeds” on page 19 of the Prospectus for the use of proceeds information, to the section entitled “Selling Security Holders” starting on page 36 of the Prospectus for the selling stockholders information, to the section entitled “Description of Securities” starting on page 41 of the Prospectus for a description of securities, and to the section entitled “Plan of Distribution” starting on page 43 of the Prospectus for the plan of distribution information. Such sections of the Prospectus have not been reprinted in this prospectus supplement.
 
We post on our public website, energyet.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy and information statements filed pursuant to Section 14 of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our website and the information contained on that site, or connected to that site, are not incorporated into and are not a part of this prospectus. Copies of any of these documents may be obtained free of charge through our website or by contacting us at 1200 Route 22 East, Suite 2000, Bridgewater, New Jersey 08807. Our telephone number is (888) 729 – 5722 x 100.
 
You may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding the Company at www.sec.gov.
 
You should rely only on the information contained in this prospectus supplement or to which we have referred you. We have not authorized any person to provide you with different information or to make any representation not contained in this prospectus.

 
The following risk factors should be considered carefully in addition to the other information contained in this report. This report contains forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our customers’ or our industry’s actual results, levels of activity, performance or achievements expressed or implied by these forward-looking statements, to differ. “Risk Factors,” “Management’s Discussion and Analysis” and “Business,” as well as other sections in this report, discuss some of the factors that could contribute to these differences.

The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

An investment in our common stock is highly speculative and involves a high degree of risk. Therefore, you should consider all of the risk factors discussed below, as well as the other information contained in this document. You should not invest in our common stock unless you can afford to lose your entire investment and you are not dependent on the funds you are investing.
 

(1)
While we have had sustainable revenues and net profits in the past, there is no assurance our future operations will result in such revenues or net profits. Our revenues depend on continual new business development.
 
While a number of our customers have written about their satisfaction with our services, because of this success, they may not need us to provide additional services in the near future, unless they expand and have additional facilities for us to provide an energy audit. Accordingly we are continually dependent upon developing new clients for our continued revenue production and growth, and any inability to continue business development growth would materially impact our revenues and adversely impact a shareholder’s investment.
 
(2)
Our existing and anticipated working capital needs, the acceleration or modification of our expansion plans, lower than anticipated revenues, or increased expenses or other events will all affect our ability to continue as a going concern.
 
We intend to use part of the proceeds of this offering to fund infrastructure, including a physical office location and salaries to key employees. Supporting the increased costs of infrastructure as well as expanding business development to attract new clients will significantly increase our costs of operations. If we cannot generate sufficient revenues to operate profitably, we may suspend or cease operations.
 
(3)
We anticipate incurring operating losses and negative cash flows in the foreseeable future resulting in uncertainty of future profitability and limitation on our operations.
 
We anticipate that the Company will incur operating losses and negative cash flows in the foreseeable future, and will accumulate increasing deficits as we increase our expenditures for (i) infrastructure, (ii) sales and marketing, (iii) equipment, (iv) personnel, and (v) general operating expenses. Any increases in our operating expenses will require us to achieve significant revenue before we can attain profitability. In the event that we are unable to achieve profitability or raise sufficient funding to cover our losses, we may not be able to meet our obligations as they come due, raising substantial doubts as to our ability to continue as a going concern.
 
(4)
We are dependent on outside financing for expansion of our operations.
 
We have operated in the past based upon a model of hiring independent consultants to joint venture on our projects. We are presently changing this model to hire certain of our key consultants as employees and to change our virtual office situation to an anticipated leased physical office space. Accordingly for the near future, we are dependent on the continued availability of outside financing in order to continue the growth our business. There can be no assurance that financing sufficient to enable us to continue our operations will be available to us in the future. Our failure to obtain future financing or to produce levels of revenue to meet our financial needs could result in our inability to continue as a going concern and, as a result, investors in the Company could lose their entire investment.
 
(5)
We will need additional capital beyond that sought in this Offering to pursue our business plan and conduct our operations and our ability to obtain the necessary funding is uncertain.
 
We will require significant additional capital resources from sources including equity and/or debt financings in order to develop products/services and continue operations. We intend to raise up to $5 million of such additional capital. While we believe the raise of the Maximum Offering of $4,000,000 will allow us to pursue our business plan, the projected time for achieving our goals will be increased, and may not be achieved without raising additional capital. Our current rate of expenditure is expected to increase due to, among other things, our anticipated need to hire additional employees, lease additional office space, increase our research and development investment, and the additional costs associated with applying for a public company status, as noted below. If we raise such additional capital our existing stockholders will experience dilution which may be significant.
 

11

 
 
 
(6)
We will need additional capital, which may not be available on acceptable terms, if at all, and any additional financing may be on terms adverse to your interests.
 
We will need additional cash to fund our operations. Our capital needs will depend on numerous factors, including market conditions and our profitability. We cannot be certain that we will be able to obtain additional financing on favorable terms, if at all. If additional financing is not available when required or is not available on acceptable terms, we may be unable to fund expansion, successfully promote our brand name, develop or enhance our services, take advantage of business opportunities, or respond to competitive pressures or unanticipated requirements, any of which could seriously harm our business and reduce the value of your investment.
 
If we are able to raise additional funds, if and when needed, by issuing additional equity securities, you may experience significant dilution of your ownership interest and holders of these new securities may have rights senior to yours as a holder of our Common Stock. In this case, the value of your investment could be reduced.
 
(7)
Our Growth Plan is based upon Management’s projection of what may happen in the future, and such predictions may not occur. Actual results may differ materially.
 
Our growth plan is based upon Management's projections of estimated available cash flow, expenses, revenue, revenue over profit, earnings before interest, taxes and depreciation, sales cycle time and other measures of projected economic performance. These projections are made in Management's view of what may happen in the future, and are not based upon historical projections.
 
(8)
We rely on strategic vendors to provide strategic contracting services integral to our service package.
 
We rely on strategic vendors, to provide strategic contracting services integral to our overall client service package. If we experience problems with any of our strategic vendors, the satisfaction of our customers could suffer and our business could be adversely affected. If we experience difficulties in maintaining these relationships or developing new relationships on a timely basis and on terms favorable to us, our business and financial condition could be adversely affected. Malfunctions of third party service providers could adversely affect our business which may impede our ability to attract and retain clients.
 
(9)
Our success is tied to maintaining adequate understanding of and access to developing energy efficiency technology.
 
Our future revenues and profits, if any, substantially depend on our maintaining an adequate understanding of and access to new and developing energy efficiency technologies. We also must remain current on appropriate implementation methods of such technologies, and in certain instances, obtain licensing and other access agreements to use such technologies. Any loss of personnel or inability to gain access to such technologies could impair our ability to remain a going concern. Also, lack of capital to hire sufficiently experienced personnel could also adversely affect our operations and revenue.
 
 
12

 
 
 
(10)
Our Competitors may have more resources and develop proprietary technologies that we do not have access to, and pursue similar business and acquisition strategies.
 
For the most part, the energy efficiency audit services market has been fragmented, regionally directed, and composed of many different segments of service providers. Part of our business plan and our past success has been our architecture of energy audits for clients that integrate the provision of energy savings service from multiple vendors and consultants, and we intend with sufficient future capital raises to pursue a strategy of acquiring or joint venturing with such vendors and consultants regionally, nationally and internationally. Any such strategy is dependent upon the success of such capital raises, and is not assured. Other competitors may be better funded, have access to more business expansion capital, have strategic business and local relationships longer developed, and may have stronger capability to develop or license proprietary technologies, all among other factors, that could adversely affect our ability to compete.
 
(11)
Growth of internal operations and business may strain our financial resources.
 
We will be significantly expanding the scope of our operating and financial systems in order to build and expand our business. Our growth rate may place a significant strain on our financial resources for a number of reasons, including, but not limited to, the following:
 
 
The need for continued development of the financial and information management systems;
 
The need to manage strategic relationships and agreements with subscribers;
 
Difficulties in hiring and retaining skilled management, technical and other personnel necessary to support and manage our business; and
 
We cannot give you any assurance that we will adequately address these risks and, if we do not, our ability to successfully expand our business could be adversely affected.
 
(12)
Failure to manage growth effectively could prevent us from achieving our goals.
 
Our strategy envisions a period of rapid growth that may impose a significant burden on our administrative and operational resources. Our ability to effectively manage growth will require us to substantially expand the capabilities of our administrative and operational resources and to attract, train, manage, and retain qualified management and other personnel. Our failure to successfully manage growth could result in our sales not increasing commensurately with capital investments. Our inability to successfully manage growth could materially adversely affect our business.
 
(13)
Any failure to adequately expand a direct sales force will impede our growth.
 
We expect to be substantially dependent on a direct sales force to attract new clients and to manage customer relationships. We plan to expand our direct sales force and believe that there is significant competition for qualified, productive direct sales personnel with advanced sales skills and technical knowledge. Our ability to achieve significant growth in revenue in the future will depend, in large part, on our success in recruiting, training and retaining sufficient direct sales personnel and sustaining revenue to support such hires. Recent hires and planned hires may not become as productive as expected, and we may be unable to hire sufficient numbers of qualified individuals in the future in the markets where we do business. We expect to face competition in the recruitment of qualified personnel, and we can provide no assurance that we will attract or retain such personnel. If we are unable to hire and develop sufficient numbers of productive sales personnel our business prospects could suffer.
 
 
(14)
If our services do not gain expanded market acceptance, we may not be able to fund future operations.
 
A number of factors may affect the market acceptance of our network, including, among others:
 
 
the perception by users of the effectiveness of our services;
 
our ability to fund our sales and marketing efforts; and
 
the effectiveness of our sales and marketing efforts.
 
If our services do not gain acceptance by new clients, we may not be able to fund future operations, including the development of new products and services, and/or our sales and marketing efforts for our current products and services, which inability would have a material adverse effect on our business, financial condition and operating results.

(15)
The departure of Robert Holdsworth, President of the Company and/or other key personnel could compromise our ability to execute our strategic plan and may result in additional severance costs to us.
 
Our success largely depends on the skills, experience and efforts of our key personnel, in particular, Robert Holdsworth, the President of our Company. The loss of Mr. Holdsworth, or our failure to retain other key personnel, would jeopardize our ability to execute our strategic plan and materially harm our business. In addition, we intend to enter into a written employment agreement with Mr. Holdsworth and with other key executives that can be terminated at any time by us or the executives. We do not maintain a key person life insurance policy on Mr. Holdsworth or any other officer or director.
 
(16)
We will incur increased costs as a result of being a public company.
 
If we are able to become a public company, we will incur significant legal, accounting and other expenses. We expect the laws, rules and regulations governing public companies to increase our legal and financial compliance costs and to make some activities more time-consuming and costly.
 
(17)
Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses.
 
New or changed laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies, which may result in additional expenses. While there is limited regulation of our business at the state and federal level, any change to such regulation could adversely affect our business. Our clients are often regulated, and their ability to pay us or our ability to provide services may be impacted by changes in regulation. We are committed to maintaining high standards of corporate governance and public disclosure. As a result, we intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, our business may be materially impacted and our reputation may be harmed.
 
 
Risks Related to our Common Stock
 
(18)
Because there is no public trading market for our Common Stock, you may not be able to resell your stock.
 
There is currently no public trading market for our Common Stock and there is no assurance that a public trading market will ever develop because the shares will be offered only to a small number of investors. As such, you may have to hold your shares for an extended period of time before you are able to sell them, if at all. The Common Stock offered herein will bear a restrictive legend regarding transferability and obtaining an opinion of counsel before transfer. Persons having no need for liquidity in the investment should purchase the Shares only as a long-term investment.

(19)
We do not expect to pay dividends and investors should not buy our Common Stock expecting to receive dividends.
 
We do not anticipate that we will declare or pay any dividends on our Common Stock in the foreseeable future. Consequently, you will only realize an economic gain on your investment in our Common Stock if the price appreciates. You should not purchase our Common Stock expecting to receive cash dividends. Since we do not pay dividends, and if we are not successful in establishing an orderly public trading market for our shares, then you may not have any manner to liquidate or receive any payment on your investment. Therefore our failure to pay dividends may cause you to not see any return on your investment even if we are successful in our business operations. In addition, because we do not pay dividends we may have trouble raising additional funds which could affect our ability to expand our business operations.
 
(20)
We may seek to raise additional funds, finance acquisitions or develop strategic relationships by issuing capital stock.
 
We have financed our operations, and we expect to continue to finance our operations, acquisitions and develop strategic relationships, by issuing equity or debt securities, which could significantly reduce the percentage ownership of our existing stockholders. Furthermore, any newly issued securities could have rights, preferences and privileges senior to those of our existing stock. Moreover, any issuances by us of equity securities may be at or below the prevailing market price of our stock and in any event may have a dilutive impact on your ownership interest, which could cause the market price of stock to decline.
 
(21)
Our historical results are subject to fluctuations which may be material.
 
Since the Company was organized in 2004, the likelihood of the success of the Company must be considered in light of the problems, expenses, and difficulties, complications and delays frequently encountered in connection with the competitive environment in which the Company will operate. The statements set forth in the Prospectus are based on significant assumptions about circumstances and events that have not yet taken place. Accordingly, they are subject to variations (which could be substantial) that may arise as future operations actually occur. Because of the early stage of the Company’s efforts, there can be no assurance that the Company will be able to operate profitably.
 
(22)
Control by existing management.
 
Upon completion of the private placement, the existing shareholders and management of the Company will own approximately 60% of the Company’s outstanding Common Stock if the maximum number of shares are sold, with a contemplated reserve of 20% of voting common stock to be issued for an employee stock benefit plan, for board member and advisory committee compensation and for attraction and retention of key employees. As a result, the existing shareholders will remain in a position, if they act together, to control the management and affairs of the Company, including the election of directors, and mergers, sales of assets and other such transactions


(23)
Legal actions.

There are presently no legal actions pending against the Company or to which it or any of its property are subject, nor to its knowledge are any such proceedings contemplated. In the event there were any such legal action, there would be costs of defense that would be variable. The Company anticipates a general increase in legal counsel cost going forward due to the increased compliance costs of running a public company and the legal work that may be necessary for implementing the Company’s business plan of expansion.
 
(24)
Risks related to financial projections.

The financial projections contained in this Prospectus are based on certain assumptions and estimates and, although the Company believes there is a reasonable basis for the assumptions and estimates upon which the projections are based, there can be no assurance that the revenues stated therein will be attained or that expenses will not be higher than estimated. Much of the information contained in the projections is based on assumptions and estimates that are subject to variations that could be beyond the control of the Company and could have a substantially adverse effect on the performance and profitability of the Company. Accordingly, no representation is or can be made as to the future operations or the amount of any future income or loss of the Company. In addition, the projections were prepared by management and have not been reviewed by any independent certified public accountant. Each investor should consult his own attorney, accountant or other advisors concerning an investment in the Company.
 
(25)
Arbitrary offering price.
 
The offering price of $0.20 per share of common stock was arbitrarily determined by EETC and is unrelated to specific investment criteria, such as the assets or past results of EETC’s operations. In determining the offering price, EETC considered such factors as the prospects, if any, of similar companies, the previous experience of management, EETC’s anticipated results of operations, and the likelihood of acceptance of this offering. Please review any financial or other information contained in this offering with qualified persons to determine its suitability as an investment before purchasing any shares in this offering.

(26)
Dilution.

The net tangible book value of the Common Stock offered hereby will be substantially diluted below the offering price paid by investors. The present shareholders acquired founder’s shares at an average cost of par value or $0.00001 per share, whereas Investors will pay a price of $0.20 (twenty cents) per share. Therefore, outside Investors participating in this offering will incur immediate substantial dilution of their investment insofar as it refers to the resulting per share net tangible book value of the Company’s Common Stock after completion of this Offering.

(27)
There may be deficiencies with our internal controls that require improvements, and we will be exposed to potential risks from legislation requiring companies to evaluate controls under Section 404 of the Sarbanes-Oxley Act of 2002 in the event we become a fully reporting company.
 
While we believe that we currently have adequate internal control procedures in place, we are still exposed to potential risks from legislation requiring companies to evaluate controls under Section 404a of the Sarbanes-Oxley Act of 2002. Under the supervision and with the participation of our management, we have evaluated our internal controls systems in order to allow management to report on, and our registered independent public accounting firm to attest to, our internal controls, as required by Section 404a of the Sarbanes-Oxley Act. We have performed the system and process evaluation and testing required in an effort to comply with the management certification and auditor attestation requirements of Section 404a. As a result, we have incurred additional expenses and a diversion of management’s time. If we are not able to meet the requirements of Section 404a in a timely manner or with adequate compliance, we might be subject to sanctions or investigation by regulatory authorities, such as the SEC.


Risks Associated with this Offering

(28)
If our Company is able to register publicly, our shares will be quoted on the OTC Bulletin Board, and our shares will likely be classified as a “penny stock” as that term is generally defined in the Securities Exchange Act of 1934 to mean equity securities with a price less than $5.00. Our shares will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock; as such many broker/dealers may not want to make a market in our shares which could affect your ability to sell your shares in the future.
 
We will be subject to the penny stock rules adopted by the Securities and Exchange Commission that require brokers to provide extensive disclosure to its customers prior to executing trades in penny stocks. These disclosure requirements may cause a reduction in the trading activity of our common stock, which in all likelihood would make it difficult for our stockholders to sell their securities.
 
Under the penny stock regulations, a broker-dealer selling a penny stock to anyone other than an established customer or accredited investor must make a special suitability determination regarding the purchaser and must receive the purchaser’s written consent to the transaction prior to the sale, unless the broker-dealer is otherwise exempt. Generally, an individual with a net worth in excess of $1,000,000, or annual income exceeding $200,000 individually, or $300,000 together with his or her spouse, is considered an accredited investor. In addition, under the penny stock regulations the broker-dealer is required to:

 
-
Deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the Securities and Exchange Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt;
 
-
Disclose commissions payable to the broker-dealer and our registered representatives and current bid and offer quotations for the securities;
 
-
Send monthly statements disclosing recent price information pertaining to the penny stock held in a customer’s account, the account’s value and information regarding the limited market in penny stocks; and
 
-
Make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction, prior to conducting any penny stock transaction in the customer’s account.
 
Because of these regulations, broker-dealers may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of Selling Security Holders or other holders to sell their shares in the secondary market and have the effect of reducing the level of trading activity in the secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities. In addition, the liquidity for our securities may be decreased, with a corresponding decrease in the price of our securities. Our shares in all probability will be subject to such penny stock rules and our stockholders will, in all likelihood, find it difficult to sell their securities.
 
 
17

 
 
 
(29)
There has been no independent valuation of the stock, which means that the stock may be worth less than the purchase price.

The per share purchase price has been determined by us without independent valuation of the shares. We established the offering price based on management’s estimate of the value of the shares. This valuation is highly speculative and arbitrary. There is no relation to the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion on the valuation of the shares. The shares may have a value significantly less than the offering price and the shares may never obtain a value equal to or greater than the offering price.

(30)
Investors may never receive cash distributions which could result in an investor receiving little or no return on his or her investment.

Distributions are payable at the sole discretion of our board of directors. We do not know the amount of cash that we will generate, if any, once we have more productive operations. Cash distributions are not assured, and we may never be in a position to make distributions.

(31)
Even if a market develops for our shares, our shares may be thinly traded with wide share price fluctuations, low share prices and minimal liquidity.

If a market for our shares develops, the share price may be volatile with wide fluctuations in response to several factors, including: potential investors’ anticipated feeling regarding our results of operations; ·increased competition; and our ability or inability to generate future revenues.

In addition, if our shares are quoted on the OTCBB, our share price may be affected by factors that are unrelated or disproportionate to our operating performance. Our share price might be affected by general economic, political, and market conditions, such as recessions, interest rates, or international currency fluctuations. In addition, even if our stock is approved for quotation by a market maker through the OTCBB, stocks traded over this quotation system are usually thinly traded, highly volatile and not followed by analysts. These factors, which are not under our control, may have a material effect on our share price.

(32)
We anticipate the need to sell additional authorized shares in the future. This will result in a dilution to our existing shareholders and a corresponding reduction in their percentage ownership in EETC.

We may seek additional funds through the sale of our common stock. This will result in a dilution effect to our shareholders whereby their percentage ownership interest in EETC is reduced. The magnitude of this dilution effect will be determined by the number of shares we will have to issue in the future to obtain the funds required. The sale of additional stock to new shareholders will reduce the ownership position of the current shareholders. The price of each share outstanding common share may decrease in the event we sell additional shares.

(33)
The officers and directors of the company may have a conflict of interest.

Due to their significant ownership of common stock, certain officers and directors of the Company, specifically Robert Holdsworth, will have significant influence in determining the outcome of all corporate transactions or other matters, including the election of directors, mergers, consolidations and the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control. The interests of our officers and directors may differ from the interests of the other stockholders and may result in corporate decisions that are disadvantageous to other shareholders. Furthermore, Robert Holdsworth will be able to personally and simultaneously resell shares registered in this registration statement at the same time that he is managing the sale of new shares directly by the Company in the Offering registered in this registration statement. Both these actions involve a conflict of interest. A conflict of interest exists when a party has an interest on both sides of a transaction. And while we will attempt to resolve all conflicts of interests on terms that are fair to the Company and equivalent to terms that could be obtained in arms-length transactions with third parties, we cannot assure you that we will be successful in these efforts.


 
Information included or incorporated by reference in this prospectus may contain forward-looking statements. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology.
 
This prospectus contains forward-looking statements, including statements regarding, among other things, (a) our projected sales and profitability, (b) our technology, (c) the regulation to which we are subject, (d) anticipated trends in our industry and (e) our needs for working capital. These statements may be found under “Management’s Discussion and Analysis or Plan of Operations” and “Business,” as well as in this Prospectus generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” and matters described in this Prospectus generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this prospectus will in fact occur.
 
Except as otherwise required by applicable laws, we undertake no obligation to publicly update or revise any forward-looking statements or the risk factors described in the prospectus, whether as a result of new information, future events, changed circumstances or any other reason after the date of this prospectus.

USE OF PROCEEDS 
 
Energy Edge Technologies Corporation anticipates that the net proceeds of the Primary Offering will be used primarily to increase revenues by allowing us to use the proceeds to expand our network of independent sales contractors and expand our strategic affiliations. Additionally, the proceeds will be used to increase our sales force, increase our marketing, advertising and publicity efforts, increase salaries and consulting fees, initiate promotion to vendors to engage in contracts, and initiate the process of taking the company public via OTCBB and other general administrative expenses. The precise amounts that the Company will devote to its programs will vary depending on numerous factors, including but not limited to, the progress and results of its research and assessments as to the market potential of its proposal to develop the business. In the event that we sell less than the maximum shares in this offering, the priorities for use of the proceeds are to file a Registration Statement and associated fees with the filing of the Registration Statement and becoming a publicly traded company, and hiring of new employees.

The Company anticipates that the estimated $4,000,000 gross proceeds from the Maximum Offering will enable it to fund its operating entity and other capital needs for the next fiscal year. In the event that the Maximum Offering is not completed, the Company will be required to seek additional financing. There can be no assurance that additional financing will be available when needed and, if available, will be on terms acceptable to the Company. This said, Energy Edge Technologies Corporation has engaged the services of a consulting firm in the form of a strategic alliance that will initiate the OTCBB process when the final closing has occurred and will provide ongoing capital advisory services in the event that the Company is successfully registered with the SEC.



A breakdown of the use of these proceeds is presented below:

 
 
$ Minimum
   
$ Maximum
 
Registration Statement and fees associated with becoming a publicly traded company
  $ 300,000     $ 300,000  
Hiring of Key Employees
  $ 200,000     $ 400,000  
Marketing Sales and Advertising
  $ 300,000     $ 300,000  
Working Capital
  $ 200,000     $ 3,000,000  
 
               
Total
  $ 1,000,000     $ 4,000,000  

DETERMINATION OF OFFERING PRICE
 
In determining the Primary Offering price of the shares we considered several factors including the following:
 
 
our start up status;
 
prevailing market conditions, including the history and prospects for the industry in which we compete;
 
our future prospects; and
 
our capital structure.
 
Therefore, the public offering price of the shares does not necessarily bear any relationship to established valuation criteria and may not be indicative of prices that may prevail at any time or from time to time in the public market for the common stock. You cannot be sure that a public market for any of our securities will develop and continue or that the securities will ever trade at a price at or higher than the offering price in this offering.

DIVIDEND POLICY
 
We do not anticipate that we will declare or pay any dividends on our Common Stock in the foreseeable future. Consequently, you will only realize an economic gain on your investment in our Common Stock if the price appreciates. You should not purchase our Common Stock expecting to receive cash dividends. Since we do not pay dividends, and if we are not successful in establishing an orderly public trading market for our shares, then you may not have any manner to liquidate or receive any payment on your investment. Therefore our failure to pay dividends may cause you to not see any return on your investment even if we are successful in our business operations. In addition, because we do not pay dividends we may have trouble raising additional funds which could affect our ability to expand our business operations.


 
Market Information
 
After the effective date of the Company’s initial registration statement relating to this prospectus, a market maker filed an application with the Financial Industry Regulatory Authority, FINRA for our common stock to eligible for trading on the OTC Bulletin Board. The symbol given by FINRA to the Company was “EEDG.”

Holders of Our Common Stock
 
As of December 19, 2011, we have approximately 37 shareholders of record and 82,761,205 shares issued and outstanding.

Securities Authorized for Issuance under Equity Compensation Plans

A contemplated reserve of 20% of voting common stock is to be issued for an employee stock benefit plan, for board member and advisory committee compensation and for attraction and retention of key employees. The Company’s capital structure post-offering would be as follows, assuming completion of the primary offering on both a minimum basis and a maximum basis:

 
Maximum
 
Minimum
Newly Issued Common Stock to be registered as part of a Primary Offering
20,000,000 shares of common stock
 
5,000,000 shares of
common stock
 
 
 
 
Minimum Purchase Requirement Per Investor
NONE
 
NONE
       
Offering Price:
$0.20
 
$0.20
 
 
 
 
Common Stock Issued and Outstanding to be registered as part of a Secondary Offering by Selling Security Holders:
17,506,825 shares of common stock
 
17,506,825 shares of
common stock
 
 
 
 
Offering Price:
$0.10
 
$0.10
 
 
 
 
Number of Shares Issued and Outstanding before the offering:
49,006,825
 
49,006,825
 
 
 
 
Number of Shares Issued and Outstanding after the offering, if all the shares are sold:
69,006,825
 
54,006,825
 
 
 
 
Estimated Total Proceeds:
$4,000,000
 
$1,000,000
 
 
 
 
Offering Expenses:
$78,344,64
 
$78,344.64
 
 
 
 
Net Proceeds after Offering Expenses:
$3,921,655.36
 
$921,655.36
 
 
 
 
Use of Proceeds:
Increase sales force, marketing, advertising and publicity, salaries, consulting fees, initiate promotion to vendors to engage in contracts and initiating the process of taking the company public and for other general administrative expenses. See “Use of Proceeds” on page 13.
 
In the event that we sell less than the maximum shares in this offering, our priorities for use of the proceeds are as follows:
· Filing of the Registration Statement and associated fees with the filing of the Registration Statement and becoming a publicly traded company
· Hiring of new employees
See “Use of Proceeds” on page 13.
 
 
 
 
Subscriptions:
Subscriptions are to be made payable to: Energy Edge Technologies Corporation, 1200 Route 22 East, Suite 2000, Bridgewater, NJ 08807
 
Subscriptions are to be made payable to: Energy Edge Technologies Corporation, 1200 Route 22 East, Suite 2000, Bridgewater, NJ 08807
 

Reserved Shares would consist of shares to be used to fund an Employee Stock Option Plan, to compensate members of the Board of Directors and Advisory Board members, and to attract additional executives, consultants and joint venture partners.


 
 
We have a negative net tangible book value per share of common stock. If you invest in our common stock, you will experience immediate and substantial dilution to the extent of the difference between the public offering price per shares of our common stock, and the pro forma net tangible book value per shares of our common stock immediately after the offering.
 
The pre-offering shareholders acquired shares at an average cost of $0.00001 per share (par value), whereas outside investors will pay a price of $0.20 (twenty cents) per share. Further, the net tangible book value per share prior to any new offerings is ($0.02) per share. Therefore, outside Investors participating in this offering will incur immediate substantial dilution of their investment insofar as it refers to the resulting per share net tangible book value of the Company's Common Stock after completion of this Offering. The following table illustrates dilution to investors on a per share basis:
 
 
 
Minimum Offering
   
Maximum Offering
 
Offering price per share
  $ 0.20     $ 0.20  
Net tangible book value per share before offering
  $ 0.02     $ 0.02  
Increase per share attributable to investors
  $ 0.003     $ 0.041  
Pro forma net tangible book value per share after offering
  $ 0.023     $ 0.061  
Dilution per share to investors
  $ 0.177     $ 0.139  

Critical Accounting Policies
 
Our financial statements are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue, and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.
 
Our significant accounting policies are summarized in Note 1 of our financial statements, incorporated herein by reference. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations, financial position or liquidity for the periods presented in this report.


22

 
 
 

Financial Instruments
The Company's financial instruments consist of cash and cash equivalents, contract receivables, costs and estimated earnings in excess of billings on uncompleted contracts, property and equipment, accounts payable, billings in excess of costs and estimated earnings on uncompleted contracts, sales tax payable and accrued expenses. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.

Contract Receivables
Contract receivables are recorded when invoices are issued and are presented in the balance sheet net of the allowance for doubtful accounts. Contract receivables are written off when they are determined to be uncollectible.
 
Revenue Recognition
The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period.
 
The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings in excess of revenues recognized.

If management’s calculation of fair value of its financial instruments concludes that values have not been impaired, or if it calculates too large of impairment, the Company’s assets and liabilities may be overstated or understated by a material amount, and its net income or loss may be overstated or understated by a material amount. Should management err in determining the collectability of a receivable, the Company’s assets and net income or loss could be off by a material amount. Additionally, if management errs in its estimates of the total cost of a contract, the Company’s assets, liabilities, and net income or loss may be off by amounts that are material.


23

 
 
 
 
We have no off-balance sheet arrangements.

Recent Accounting Pronouncements
 
Refer to Note 2 to the financial statements, incorporated herein by reference, for a complete description of recent accounting standards which we have not yet been required to implement and may be applicable to our operation, as well as those significant accounting standards that have been adopted during 2010 and 2009.

BUSINESS AND RECENT DEVELOPMENTS

Energy Edge Technologies Corporation

Energy Edge Technologies Corporation ("EETC," “Energy Edge” and the “Company”) was incorporated in New Jersey in January, 2004. On January 1, 2008, all assets, liabilities, and operations of the sole proprietorship (an entity under common control) were transferred in by Mr. Holdsworth. EETC is a company specializing in energy cost and consumption reduction for mid to large sized companies, institutions and government entities. EETC consists of independently contracted professionals, industrial and electrical engineers, Leadership in Energy and Environmental Design (“LEED”) accredited professionals and business entrepreneurs. EETC provides companies, institutions and government entities with turnkey, whole facility solutions that reduce energy consumption and corresponding costs and increase the efficiency of existing equipment and buildings. EETC has experience in implementing and supporting industrial and commercial energy conservation enhancement technologies, approaches and processes across a broad spectrum of industries and facility types. Our typical projects are guaranteed to reduce energy costs by 8% to 30%, provide 33% or better return on investment and decrease greenhouse gas emissions and our customers' carbon footprints.
 
EETC has experienced success with projects for a variety of customers including municipalities, breweries, pharmaceuticals, restaurants, food processing, manufacturing, printing, leisure, hospitals, office buildings, etc. EETC projects are suitable and applicable for any type of customer whose energy bill exceeds $10,000 monthly. EETC identifies where and how energy is being used and attempts to address the problems that contribute to inefficient systems and higher energy bills. EETC utilizes industry experts for the design and implementation of advanced, Institute of Electrical and Electronics Engineers (“IEEE”), US Department of Energy (“DOE”) and US Green Building Council (“USGBC”) recommended passive engineering approaches and technologies that reduce energy losses and increase the efficiency of existing systems while providing project payback and return on investment for customers. Our unique custom turnkey projects maximize energy savings by treating the entire facility based on its distinctive features and electricity and gas usage.

The process begins when EETC gathers information on the client facility and operation including loads variation, hours of operation, equipment, etc. EETC collects 12 months of electric and gas bills and completes a facility walk through. After information gathering, a project summary including savings, project cost, payback and return on investment is presented to the client. If the client approves the service and an agreement is signed, the project is initiated including engineering, procurement of all equipment, labor, insurance and warranties, waste disposal and before and after measurements. Most projects take between one and four weeks. EETC continues to measure energy use and provides monthly billing analysis and quarterly reports to the client. However, after project completion customers may not need EETC to provide additional services in the near future, unless they expand and have additional facilities for us to provide an energy audit.


EETC applies different technologies and engineering approaches to positively affect the various energy consuming loads in a facility, and we work to improve the efficiency of equipment and systems to reduce kilowatt hour and Therm consumption (also known as a British Thermal Unit (BTU), which is a measurement of natural gas used or consumed). We combine engineering experience with the expertise of our primary manufacturers. This allows us to develop turnkey projects with energy savings, reduction in greenhouse gas emissions and return on investment for our customers. All of the approaches and technologies we employ are proven, passive, DOE, USGBC and/or IEEE approved and recommended. Furthermore, many of our technologies are ENERGY STAR qualified and supplied by ENERGY STAR partners such as Phillips, GE, Telkonet and Intellidyne. All of the technologies we utilize are Underwriters Laboratory “UL” Listed, which means that they conduct the testing on electrical components and equipment, and Canada Standards Association “CSA” approved. The Canada Standards Association is similar to the Underwriters Laboratory but their testing is even more stringent and CSA approval is required by law in Canada. Many states and local utilities also offer incentives and rebates for our work and we help our customers to receive the incentives available as well as qualify them for applicable and available federal tax incentives.
 
EETC reduces the financial risk for its customers by backing projects with reimbursement contingency insurance underwritten by Lloyds of London. The Lloyds of London insurance policy is a $1,500,000 reimbursement contingency insurance policy that backs the guaranteed energy savings and project payback and return on investment for our customers. The effective date of this policy is May 26, 2010. The policy period is from May 26, 2010, to May 26, 2011. Any losses occurring on new and existing contracts reported during this time frame will be covered by Lloyds of London. The policy requires ongoing measurement and verification of energy reduction results and savings as well as notification if targets are not being met. If a shortfall were to occur in the projected savings for a customer, Lloyds of London would make up 90% of the difference, and Energy Edge would make up the remaining 10% of the difference. To date we have had no claims filed.
 
Lastly, EETC has developed a proprietary e-tool for developing unique, accurate, facility specific energy savings calculations and project designs called the Energy Edge Analyzer. The Energy Edge Analyzer and underlying formulas and algorithms were developed by analyzing hundreds of facilities of varying type, size, location, use, etc.
 
The Energy Edge Analyzer allows team members to collect specific, pin point information on the various energy consuming loads and systems in a facility and input the data into the tool to produce fast, precise results including:

·  
Overall project design
·  
Guaranteed energy savings
·  
Available utility rebates
·  
Available federal, state and local incentives
·  
Client project cost
·  
Guaranteed client payback and ROI
·  
Financing options
·  
Carbon footprint and greenhouse gas reductions
·  
Electrical and gas consumption breakdowns and profiles across respective loads
·  
Detailed engineering and design specifications down to the individual treated load
·  
Corresponding additional benefits of the specific design (i.e. extended equipment life, less downtime, heat load reductions, electrical system capacity, cooling capacity, etc)


25

 
 
 

The results from the Energy Edge Analyzer can then be quickly imported to a client ready, professional proposal. The proposal incorporates the relevant information from above and includes everything from the executive summary to the sales agreement to graphs and charts and dozens of customer referral letters.

Competitive Business Conditions within the Industry

While no company offers the comprehensive “whole facility approach” that is offered by EETC, they all utilize a similar business model. The sustainable competitive advantage of EETC will be its guarantee program, implementation and service model. The Company provides a solution that will give the maximum savings available without vast equipment overhaul.

Many of EETC’s competitors do not have the same experience level of EETC or its principal, and cannot supply a true guarantee and insurance backing. However, our competitors may be better funded, have access to more business expansion capital, have strategic business and local relationships developed, and may have stronger capability to develop or license technologies, which could potentially affect our ability to compete.

There are multiple ways a company can proceed with trying to reduce energy spending. Vendors in the industry typically take one of two approaches. The first approach is from an administrative and supply side point of view. Many companies offer professional services where energy bills are audited for errors and for procurement opportunities. Reports are provided that show what is being spent at various times and seasons. Along with the audit, the company researches possible energy procurement and demand response opportunities in deregulated energy markets that may be accessible to the client. Logical SG (www.logicalsg.com), Kilojolts Consulting Group (www.kilojolts.com) and Energen USA (www.energenusa.com) are such companies that provide an administrative solution.

The second approach is to address the consumption side by attending to the different electrical and gas consuming equipment running in a facility. There are several companies providing a single or a two dimensional technological approach such as small lighting retrofit companies, electrical contractors, HVAC contractors, general contractors, etc. They provide lighting retrofits, or HVAC inspection and upgrades, or new windows, or building management software, or one or two efficiency technologies.

There are merits and benefits to both approaches to energy cost savings noted above. EETC’s competitive advantage is detailed below in the section titled “Competitive Strengths Within The Industry”.

Independent Contractors

EETC utilizes independent contractors, channel partners and vendor relationships to develop business opportunities. The members of our network typically operate under the Energy Edge moniker and work from various strategic regions across the United States. The nature and services include sales, engineering and project management. The terms of the arrangement is a sales commission of 50% or 40% of gross profit for sales and negotiated daily rates for engineering and project management work. Utilizing such a network of independent partners working on a 100% commission basis affords EETC with great advantages such as expanded geographical reach and marketplace exposure, generation of a significantly larger number of sales leads and prospects, and no additional overhead. The US regions in which we have independent contractors/representation include:
 
 
 
26

 
 
 
 
a.
New Jersey
 
b.
New York
 
c.
Pennsylvania
 
d.
Florida
 
e.
Tennessee
 
f.
California
 
g.
Maryland
 
h.
Illinois
 
We understand that if we experience difficulties in maintaining vendor relationships or developing new relationships on a timely basis and on terms favorable to us, our business and financial condition could be adversely affected. Also, malfunctions of third party service providers could adversely affect our business which may impede our ability to attract and retain clients.

Effect of Existing Governmental Regulation on our Business
 
While there is no current regulation of this specific type of business other than the normal business restrictions that apply to all businesses, we know that there is a possibility that the laws, rules and regulations governing this type of business may change and may increase our operation costs. We intend to monitor the changes in regulations related to our business carefully and ensure that our business complies with all applicable laws and rules.
 
Number of Total Employees and Part-Time Employees
 
We currently employ one full-time employee in the United States. We do not employee any part-time employees. We currently utilize seventeen independent contractors.

Suppliers

Energy Edge provides energy efficiency results including technology solutions from the following manufacturers and suppliers. We engineer the solution, specify the exact design, quantity and type of unit or equipment and the manufacturer or supplier ships them out. They also provide technical support for their product(s) at no cost as needed:

·  
Intellidyne
·  
ECube
·  
Myron Zucker
·  
Alumalight
·  
UE Systems
·  
HySave
·  
Telkonet
·  
Powersmiths
·  
Huper Optiks
·  
Others
 
We have excellent relationships with all of our manufacturers and suppliers and currently have distributor contracts with eCube, Alumalight, Myron Zucker and HySave. For other suppliers, operate on a more informal basis and order what we require at the times we need it.


Business Strategies

Our business includes energy engineering studies and the designing and building of turnkey energy efficiency projects. We have grown the company by offering high quality services and products to customers we initially attracted using very simple techniques such as networking, channel partners, cold calling and mailers. We continue to add to our network of independent contractors and using these methods of prospecting. However, we plan to begin utilizing more sophisticated methods of attaining customers and increasing the visibility of EETC such as online viral marketing, traditional marketing and advertising and extensive publicity and public relations campaigns.

Lastly, management will be looking for additional revenue streams such as energy efficiency consulting for new building design and potential acquisition targets to expand size, revenue and profitability of the company.

Industry Summary

Businesses are continually seeking ways to lower expenses and cut energy costs. The majority of Federal and state governments and local utilities have put several regulations and incentives in place (with more to come), encouraging and requiring companies to take active responsibility for lowering their energy consumption. A monsoon of media coverage has also created awareness of high energy consumption and the ultimate effects on the US and the rest of the world. It is to the advantage of any company, with a significant energy bill, to take advantage of the offer presented by EETC, from a fiscal, environmental and social standpoint.

EETC target markets include the industrial, commercial and government sectors, which account for more than half of the energy consumed in the US. The other two sectors are residential and transportation.

On June 5, 2007, the 1st Annual World Environment Review took place and a few of the highlights pertaining to the US, in regards to the general population, are shown below:
 
·  
74% are concerned about climate change.
·  
80% think their Government should do more to tackle global warming.
·  
84% think that the US is too dependent on fossil fuels.
·  
72% think that the US is too reliant on foreign oil.
·  
79% think that the US Government should do more to increase the number of hybrid cars that are sold.
·  
67% think that the US Government should allow more off shore drilling.
 
The results show that the general population is building an awareness of the worldwide energy issue and are trending towards solutions that will assist with conserving the environment. It now becomes beneficial for companies to participate in these initiatives in order to reflect positively on society.

The American Recovery and Reinvestment Act of 2009 energy related funding allocates $1.6 billion for renewable energy and $12 million for energy efficiency. The revenue for the energy management services market in North America in 2008 was $20.35 billion and is projected to double to over $40 billion by 2013 due to favorable new government legislations and increased knowledge about the benefits of energy management. Source: Frost & Sullivan, North American Energy Management Investment Analysis, February 11, 2009
 

Along with its “whole facility approach” the company provides additional advantages to its client with its 100% savings guarantee program which is backed by a surety bond underwritten by Lloyds of London. The guarantee ensures every dollar invested in an EETC project by a customer will be returned via energy savings within the determined payback period. If any shortfall occurs, the difference between the savings and the investment will be refunded by the surety bond. This quells customer anxiety by removing the financial risk from the buying decision and ultimately increases closure rate, allowing EETC a competitive and reputational advantage as an energy engineering company.
 
Competitive Strengths within the Industry
 
There is merit to both the administrative, supply side and the energy efficiency, consumption side solutions detailed in the “Competitive Business Conditions” section above. That is why EETC has developed the ability to address both for customers.

The administrative solution has value for customers and EETC offers these solutions by partnering with companies such as Enernoc (www.enernoc.com) and Glacial Energy (www.glacialenergy.com). Partnering with companies like Enernoc and Glacial helps to generate interest with our current customers and future prospects in the energy procurement and demand response (supply side savings) services, which helps the customer by lowering the base rate they pay for electricity and gas. Enernoc and Glacial offer energy procurement services where companies can use them to broker deals with third party energy supplies in deregulated states. We partner with either Enernoc or Glacial get paid by the customer and EETC receives commissions from them. In this way EETC can provide administrative, supply side savings to its customers while also generating revenue for the firm. However, these administrative strategies focus only on the supply side cost and not on reducing actual energy usage, or reducing a company’s carbon footprint. To use less energy, the equipment and its supporting systems must be made to run more efficiently. This is where EETC takes it to the next level by employing a holistic, comprehensive approach that is necessary to thoroughly enhance the energy efficiency and profile of all types of facilities.
 
As noted, there are many companies and individuals that focus only on one or two aspects of the dozens of areas that can be made more efficient. In management’s view, none of these companies offer a similar whole facility approach as offered by Energy Edge that can literally address the multitude of energy consuming loads across the lighting, HVAC, refrigeration, heating and production systems in today’s commercial, industrial and institutional facilities. Competitors typically cannot bring to bear the numerous technologies and approaches that EETC can to ensure a significant, measurable impact and strong ROI for customers. In addition to the narrow scope and limited available energy treatment options and approaches, competitors cannot truly guarantee the energy savings and do not offer true, insured guaranteed savings programs.

The general methods of competition used by companies in our industry include:

·  
Reducing profit margins when competing head to head with providers of similar products or services to win business based on price.
·  
 Extending product warranties beyond the manufacturers’ warranties.
·  
Offering performance contracting where the company offers to complete a project for no upfront cost to the customer in return for a percentage of the energy cost savings over a pre-determined period of time.
·  
Offering turnkey installations requiring no labor from the customer’s staff.
·  
Offering ongoing service contracts.


29

 
 
 
Management believes that EETC maintains a distinct advantage over its competition by offering a comprehensive energy cost reduction suite of services including whole facility energy consumption reduction, energy procurement and demand response programs. And EETC reduces the financial risk from the buying decision for customers with guaranteed savings and ROI backed by Lloyds of London.

EETC utilizes an experienced team of independently contracted professionals and has acquired in depth information that only years in the industry can provide. As it relates to competitor’s ability to enter this market and become a successful market participant, it would be necessary for them to surpass the following market barriers in the same manner that EETC has.

·  
Strategic Partnerships & Vendor Relationships – Strategic alliances will allow for better pricing on products and technologies used on client projects. It also allows for quick delivery and expert assistance as needed. With sound partnerships with manufacturers the Company is best positioned to negotiate excellent deals, as well as gain benefits from volume buying.
·  
Surety Bond or Similar Guarantee Program – The Lloyds of London surety bond is an attractive solution to potential customers. Other technology vendors have also shown interest in utilizing such a program.
·  
Knowledge and Know How – Any company entering the energy conservation industry must have a vast amount of knowledge and experience spanning multiple engineering fields and several industries in order to provide expert solutions to clients of such a high caliber.

Growth Strategy

Market trends suggest that the demand for energy resources will rise dramatically over the next 25 years. Global demand for all energy sources is forecast to grow by 57%. These numbers include all energy types.

EETC currently has over $13 million in potential business in the sales pipeline. The $13 million is comprised of prospects that have already received the initial analysis and project summary (Step 2) and are deciding whether to move forward with a project. These prospects have provided us with 12 months of utility bills, extensive facility information, production data and complete access to their operations. We have prepared comprehensive analysis and a project summary including the guaranteed savings, project cost, payback, ROI, financing terms, and carbon footprint reduction. EETC continues to add new prospects to the sales pipeline every week, however we cannot provide any assurance that any of this potential business will result in firm orders.

EETC intends to enter into more strategic, vendor and distributorship relationships with additional industry leading energy efficiency manufacturers and suppliers in 2011 and 2012.

EETC has grown the current business using very simple techniques such as networking, channel partners, cold calling and mailers. EETC will continue to add to our network of independent contractors and using these methods of prospecting. However, EETC plans to begin utilizing more sophisticated methods of attaining customers and increasing the visibility of EETC such as online viral marketing, traditional marketing and advertising and extensive publicity and public relations campaigns.

EETC will be looking for additional revenue streams such as energy efficiency consulting for new building design and potential acquisition targets to expand the size, revenue and profitability of the company.


30

 
 
 
 
The Company does not own any real property. The Company’s office and place of business is located at 1200 Route 22 East, Bridgewater, New Jersey 08807.
 
MANAGEMENT
 
The directors and executive officers of the Company are:

Name
Age
Position
Robert Holdsworth
40
President & Chairman
John Gerace
64
Vice President
Joseph Ragosta, Ph.D.
52
Chief Executive Officer

Robert Holdsworth, 40, MBB, President, has a 17 year proven track record of success partnering with Fortune 500 companies, global enterprises and medium businesses. His experience covers a depth of senior level operations management, inside and outside sales, large scale project management and Six Sigma deployment. He has successfully managed large, multi-hundred member departments and key contracts that generated revenues of up to $40M annually. Mr. Holdsworth has had great success in strategically growing organizations, managing highly complex projects, and cutting waste while increasing revenues. Mr. Holdsworth successfully integrated three distinct outsourcing businesses and created ways to decrease cost, correctly apply assets and significantly impact the top and bottom lines. In Management’s view, Mr. Holdsworth possesses the well rounded skill set necessary to lead a company today, as an effective communicator, strategic leader, poised presenter, skilled salesperson, with astute financial capabilities. Mr. Holdsworth has worked in Senior Management positions for such companies as Mellon Financial Corporation (Vice President from 2002 to 2004), Gretco, Inc. (Public Relations Director from 1992 to 1994), Price Waterhouse Coopers (Managing Director from 1996 to 2002), and Merrill Lynch & Co (Manager from 1994 to 1996). Mr. Holdsworth received a Bachelor Degree from Rider University, Lawrenceville, NJ. He holds certifications as a Certified Energy Manager, a Six Sigma Master Black Belt, and a Total Quality Management (TQM) Practitioner and formerly held NASD Series 7 and Series 63 licenses.
 
John Gerace, 64, Ph.D., P.E. Vice President, has been a consultant for EETC for 6 years and engages in the various aspects of EETC sales, project design and installations. He oversees client projects including sales, end to end engineering, project management and financial accountability. Dr. Gerace offers excellent expertise in the field of engineering and business development. His engineering knowledge encompasses environmental, industrial and facilities engineering, power plant engineering, cogeneration and of course energy engineering. Dr. Gerace has held several management positions in the environmental industry for such companies as The Kuljian Corporation as the Vice President, Business Development from 1997 to 1999 and again from 2001to 2003, Client Services Director at Buchart-Horn/BASCO Associates from 1999 to 2001, Business Development Manager for L. Robert Kimball & Associates from 1996 to 1997, Manager of Business Development, IT Corporation from 1994 to 1996, and Vice President and NYC Regional Branch Manager at Certified Engineering and Testing Co. from 1993 to 1994. Dr. Gerace has overseen projects spanning power plants, boiler plants, chiller plants, pharmaceutical firms, schools, Department of Defense, chemical plants, hospitals, food processing plants, and many other facilities. Dr. Gerace is a published author and a Registered Professional Engineer. He holds a Bachelor of Engineering, an MBA in Finance and a Doctor of Philosophy with Honors in Economics. He holds Full Membership in the National Society of Professional Engineers, the Association for the Advancement of Cost Engineering International and sits on the Philadelphia Council on Business Economics. Dr. Gerace has also fulfilled US Navy Active Duty obligations as a Lt. in the US Naval Reserve.


Joseph Ragosta, Ph.D., 52, is a visionary business leader and senior executive with a long track record of building highly successful, global enterprises. He has an unwavering commitment to delivering world class service to our customers and believes that the only way to be successful is by exceeding expectations. Prior to joining EETC, Dr. Ragosta was CEO of Ely Energy, a Tulsa, OK based design and fabrication company serving global markets with products applied downstream in a variety of energy and environmental markets. Prior to Ely Energy, Dr. Ragosta served as President of Oseco, a manufacturer of rupture disks, explosion panels, and other pressure relief products. Dr. Ragosta also previously served as President of Ionex in Tully, NY and General Manager of Graver Tech in Glasgow, DE. Dr. Ragosta is an accomplished author with over 50 technical publications. He has been certified as an ISO 9001 Lead Auditor and holds 8 patents and patents pending. He received his bachelor’s degree from The Pennsylvania State University and his master’s degree and doctorate from Cornell University.

We believe that the members of our board of directors are collectively capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. We believe that retaining an independent director who would qualify as an "audit committee financial expert" would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not generated any material revenues to date. In addition, we currently do not have nominating, compensation or audit committees or committees performing similar functions nor do we have a written nominating, compensation or audit committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes the functions of such committees can be adequately performed by our board of directors. Further, we are not a "listed company" under SEC rules and thus we are not required to have a compensation committee or a nominating committee.

We do not have any defined policy or procedure requirements for shareholders to submit recommendations or nominations for directors. Our board of directors believes that, given the early stages of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. We do not currently have any specific or minimum criteria for the election of nominees to our board of directors and we do not have any specific process or procedure for evaluating such nominees. Our board of directors assesses all candidates, whether submitted by management or shareholders, and makes recommendations for election or appointment.

A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our Chief Executive Officer at the address appearing on the face page of this Prospectus.

Director Independence:
 
Our board of directors has undertaken a review of the independence of each director and considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, our board of directors determined that Director Gerace qualifies as “independent” in according with the applicable rules and regulations of the SEC. Director Holdsworth does not meet the independence requirements.
 
Term of Office
 
Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office or until his successor has been elected and qualified in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.
 
 
All officers and directors listed above will remain in office until the next annual meeting of our stockholders, and until their successors have been duly elected and qualified. There are no agreements with respect to the election of Directors. Officers are appointed annually by our Board of Directors and each Executive Officer serves at the discretion of our Board of Directors. We do not have any standing committees. Our Board of Directors may in the future determine to pay Directors’ fees and reimburse Directors for expenses related to their activities.
 
Audit Committee

We do not have an audit committee of the Board of Directors. Management has determined not to establish an audit committee at present because of our limited resources and limited operating activities do not warrant the formation of an audit committee or the expense of doing so. We do not have a financial expert serving on the Board of Directors or employed as an officer based on management’s belief that the cost of obtaining the services of a person who meets the criteria for a financial expert under Item 401(e) of Regulation S-B is beyond its limited financial resources and the financial skills of such an expert are simply not required or necessary for us to maintain effective internal controls and procedures for financial reporting in light of the limited scope and simplicity of accounting issues raised in our financial statements at this stage of our development.
 
Certain Legal Proceedings
 
None of our Officers and/or Directors have filed any bankruptcy petition, been convicted of or been the subject of any criminal proceedings or the subject of any order, judgment or decree involving the violation of any state or federal securities laws within the past ten (10) years. Furthermore, no director, nominee for director, or executive officer has appeared as a party in any legal proceeding material to an evaluation of his ability or integrity during the past ten years.

Compliance with Section 16(A) Of the Exchange Act.
 
Upon the effectiveness of this Registration Statement, Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors, and persons who beneficially own more than 10% of a registered class of our equity securities to file with the Securities and Exchange Commission initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common shares and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the Securities and Exchange Commission regulations to furnish us with copies of all Section 16(a) reports they file.

Code of Ethics

The Board of Directors has established a written code of ethics that applies to the Company’s Chief Executive Officer and Chief Financial Officer. A copy of the Code of Ethics is filed as Exhibit 14.1.
 
EXECUTIVE COMPENSATION

Summary Table. The following table sets forth information concerning the annual and long-term compensation awarded to, earned by, or paid to the named executive officer for all services rendered in all capacities to our company, or any of its subsidiaries, for the years ended December 31, 2007, 2008, 2009, and December 31, 2010:


Compensation Table for Executives

Name &Principal Position
Year
 
Salary
($)
   
Total
($)
 
Robert Holdsworth, President
2007
  $ 0     $ 0  
 
2008
  $ 0     $ 0  
 
2009
  $ 0     $ 0  
 
2010
  $ 207,984     $ 207,984  

(1)  
Joseph Ragosta, Ph.D., has not been paid any compensation in 2007, 2008, 2009, and 2010.

Employment Agreements
 
The Company has no formal employment agreements.
 
Compensation of Directors
 
Summary Table. The following table sets forth information concerning the annual and long-term compensation awarded to, earned by, or paid to the named Director for all services rendered in all capacities to our company, or any of its subsidiaries, for the years ended December 31, 2007, 2008, 2009 and December 31, 2010:

Compensation Table for Directors

Name &Principal Position
Year
 
Salary
($)
   
Total
($)
 
Robert Holdsworth, President
2007
  $ 0     $ 0  
 
2008
  $ 0     $ 0  
 
2009
  $ 0     $ 0  
 
2010
  $ 0     $ 70,000  
John Gerace
2007
  $ 0     $ 0  
 
2008
  $ 0     $ 0  
 
2009
  $ 0     $ 0  
 
2010
  $ 0     $ 70,000  
 
Directors receive fixed fees and other compensation for their services as directors. The Board of Directors are compensated for attending five board meetings per year, and for assisting in raising funds for the company pre-ipo and post public, joint ventures and strategic alliance facilitation, advisory with respect to banking services relating to the Company, road shows and corporate equity/debt issuance and follow on financing in addition to other responsibilities. The Board of Directors has the authority to fix the compensation of directors. The table below represents the standard compensation for members of the Board of Directors:


34

 
 
 

 
 
Fees
Earned or
Paid in
Cash
($)
 
Stock
Awards
($)
 
Option
Awards
($)
 
Non-Equity
Incentive
Plan
Compensation
($)
 
Non-
qualified
Deferred
Compensation
Earnings
 
All
Other
Compensation
($)
 
Total
($)
Robert Holdsworth
     
$20,000(1)
 
$50,000(2)
             
$70,000
John Gerace
     
$20,000(1)
 
$50,000(2)
             
$70,000

(1)  
The stock awards set forth on this table were issued for services rendered to the Company by the directors for the year ending December 31, 2010. This dollar estimate is based on the fair market value at the date of grant at the close of business in accordance with ASC 718-20 (formerly SFAS No. 123R, Share-Based Payment).
(2)  
The option awards set forth on this table are options that will be issued in 2011 will be for services rendered to the Company by the directors for the year ending December 31, 2010. This dollar estimate is based on the fair market value at the date of grant at the close of business in accordance with ASC 718-20 (formerly SFAS No. 123R, Share-Based Payment).

 
The following table sets forth information with respect to the beneficial ownership of our Common Stock as of January 13, 2011, for:
·  
Each of our executive officers and directors;
·  
All of our executive officers and directors as a group; and
·  
Any other beneficial owner of more than 5% of our outstanding Common Stock.

Title of Class
Name and
Address of
Beneficial
Owner
Amount and
Nature
of Beneficial Owner
Percent of
Class Based on Current Number of Shares Outstanding
Percent of
Class Based
on Maximum Offering
Common Stock
Robert E. Holdsworth
33 Chestnut Trail
Flemington, NJ, 08822
30,200,000(1)
61.62%
43.76%
Common Stock
ACS Inc.
James Scott(2)
500 Office Center Drive
Fort Washington, PA 19034
5,500,000(1)
11.22%
7.97%
Common Stock
All Executive Officers and Directors as a Group
30,400,000(1)
62.03%
44.05%
Common Stock
John Gerace
200,000(1)
..41%
.29%

(1)  
Based on 49,006,825 shares as of January 13, 2011.
(2)  
James Scott, the owner of ACS, Inc., is the beneficial owner of 5,500,000 shares of common stock of the Company.

Beneficial ownership is determined in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities and include ordinary shares issuable upon the exercise of stock options that are immediately exercisable or exercisable within 60 days. Except as otherwise indicated, all persons listed below have sole voting and investment power with respect to the shares beneficially owned by them, subject to applicable community property laws. The information is not necessarily indicative of beneficial ownership for any other purpose.
 
 

Energy Edge Technologies Corporation (“Energy Edge” and the “Company”) was incorporated in New Jersey in January, 2004. On January 1, 2008 all assets, liabilities, and operations of the sole proprietorship (an entity under common control) were transferred in by Mr. Holdsworth. The assets and liabilities were transferred in to the Company at book value, as follows:

Assets: cash $102,787, work in process $30,110, total = $132,897
Liabilities: credit cards payable $43,151, customer deposits $176,242, total = $219,393
Deficit Capital: $86,496

With the exception of the previous statement, none of the following parties has, since the date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:

·  
The Officers and Directors;
·  
Any Person proposed as a nominee for election as a director;
·  
Any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to the outstanding shares of common stock;
·  
Any relative or spouse of any of the foregoing persons who have the same house as such person.
 
SELLING SECURITY HOLDERS

The persons listed in the table plan to offer the shares shown opposite their respective names by means of this Prospectus in the Secondary Offering. The owners of the shares to be sold by means of this Prospectus are referred to as the “Selling Security Holders”. The Selling Security Holders acquired their shares from EETC in privately negotiated transactions. These shares may be sold by one or more of the following methods, without limitations.

·  
ordinary brokerage transactions and transactions in which the broker-dealer solicits investors;
·  
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
·  
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
·  
at a fixed price of $0.20 per share until such time as, and if, the Company’s common stock is quoted on the OTCBB and thereafter at such prevailing market prices;
·  
privately negotiated transactions;
·  
to cover short sales after the date the registration statement, of which this Prospectus is a part, is declared effective by the Securities and Exchange Commission;
·  
a combination of any such methods of sale; and
·  
any other method permitted pursuant to applicable law.

The following table sets forth the shares beneficially owned, as of January 13, 2011, by the Selling Security Holders included in this Prospectus.
 
Beneficial ownership is determined in accordance with Securities and Exchange Commission rules. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to dispose of, or to direct the disposition of, the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.

The percentages below are calculated based on 49,006,825 shares of our common stock issued and outstanding as of January 13, 2011. As used in the table below, “PPM Investor” includes investors who have invested in the company and purchased restricted shares through private placement in the company, pursuant to an exemption under Rule 506 of Regulation D. These investors are either “accredited investors” or must have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective amendments.
 
Further explanation about the specific transaction set forth in the table below can be found in Note 6 on page 52 of our original Registration Statement and subsequent amendments, originally filed with the SEC on June 29, 2010.
 
 
   
Beneficial Ownership
Before Offering(1)
   
Beneficial Ownership
After Offering(1)
 
Name of Selling Security Holder(1)
Position,
Office, or
Material
Relationship
with the
Company
Common
Shares
Owned by
the Selling
Security
Holder
Percent(2)
Total Shares
to be
Registered (offered)
Pursuant
to this
Prospectus
Common
Shares
Owned by
Selling
Security
Holder
Percent(2)
Charles Richard Harvin, Jr.
2732 Rush Haven Drive
Mt. Pleasant, SC 29466
PPM Investor
250,000
0.51%
250,000
0
0%
Alejandro Sei
18 Chestnut Trail
Flemington, NJ 08822
PPM Investor
80,000
0.16%
80,000
0
0%
Keith Harvin
2870 Porcher Drive
Sumter, SC 29150
PPM Investor
250,000
0.51%
250,000
0
0%
Charles Barovian
1763 West 9th Street
Brooklyn, NY 11223
PPM Investor
100,000
0.20%
100,000
0
0%
Steve Gianniotis
226 Kings Highway
Brooklyn, NY 11223
PPM Investor
100,000
0.20%
100,000
0
0%
Richard Edelman
216 Walnut Street
Livingston, NJ 07039
PPM Investor
100,000
0.20%
100,000
0
0%
Robert E. Holdsworth
33 Chestnut Trail
Flemington, NJ, 08822
CEO
30,000,000
61.22%
3,000,000
27,000,000
55.09%
Terrence Maher
3531 N. Reta Avenue
Chicago, IL 60657
PPM Investor
75,000
0.15%
75,000
0
0%
Alejandro Sei
18 Chestnut Trail
Flemington, NJ 08822
PPM Investor
30,000
0.06%
30,000
0
0%
Michael Napolitano
4024 Quarry Road
Manchester, NJ 08759
PPM Investor
1,000,000
2.04%
1,000,000
0
0%
Richard Gigantino
5 White Birch Drive
Millstone Twsp., NJ 08510
PPM Investor
50,000
0.10%
50,000
0
0%
Frank Kukla
176 Brahma Avenue
Bridgewater, NJ 08807
PPM Investor
70,000
0.14%
70,000
0
0%
Randall Bielski
1534 York Road
Lutherville, MD 21093
PPM Investor
300,000
0.61%
300,000
0
0%
James Scott (ACS, Inc.)
500 Office Center Drive
Fort Washington, PA 19034
Compensation for Services
5,500,000
11.22%
4,500,000
1,000,000
2.04%
Frank J. Pena
1590 Horseshoe Drive
Manasquan, NJ 08736
Compensation for Services
100,000
0.20%
100,000
0
0%
Warren Fellus
(TVT Capital LLC)
8 Hunters Lane
Roslyn, NY 11576
Compensation for Services
700,000
1.43%
700,000
0
0%
Kenny Fellus
4 Green Drive
Roslyn, NY 11576
PPM Investor
100,000
0.20%
100,000
0
0%
John Gerace, Ph.D.
646 Friar Drive
Yardley, PA 19067
Board of Director
200,000
0.41%
200,000
0
0%
Yin Hu
58 Rose Avenue
Great Neck, NY 11021
Advisory Services
200,000
0.41%
200,000
0
0%
Warren Fellus
(TVT Capital LLC)
8 Hunters Lane
Roslyn, NY 11576
Advisory Services
200,000
0.41%
200,000
0
0%
Robert E. Holdsworth
33 Chestnut Trail
Flemington, NJ, 08822
Board of Director
200,000
0.41%
0
200,000
0.41%
Laura Napolitano
54 Fairway Blvd.
Monroe Twp., NJ 08831
PPM Investor
25,000
0.05%
25,000
0
0%
Lorraine Licata
54 Fairway Blvd.
Monroe Twp., NJ 08831
PPM Investor
25,000
0.05%
25,000
0
0%
Joseph Yeganeh
9 Brook Lane
Brookville, NY 11545
PPM Investor
540,000
1.10%
540,000
0
0%
Pedram Bral
52 East End Ave, Apt. 17A
New York, NY 10028
PPM Investor
100,000
0.20%
100,000
0
0%
 

Vincent & Rees (David M. Rees)
175 South Main Street, 15th Floor
Salt Lake City, UT 84111
Compensation for Services
1,045,825
2.13%
1,045,825
0
0%
Callie Tempest Jones
3344 S. 1885 E.
Salt Lake City, UT 84106
Compensation for Services
100,000
0.20%
100,000
0
0%
Lisa M. Demmons
724 10th Ave.
Salt Lake City, Utah 84103
Compensation for Services
100,000
0.20%
100,000
0
0%
Chase Chandler
696 Eaglepointe Dr.
North Salt Lake City, Utah 84154
Compensation for Services
100,000
0.20%
100,000
0
0%
Brendan Hughes
56 Briar Hill Drive
Yonkers, NY 10710
Investor
100,000
0.20%
100,000
0
0%
Dawn L. Housel
77 Kelsey Drive
Schuylkill Haven, PA 17972
Investor
32,000
0.07%
32,000
0
0%
Monica Shayestehpo
92 Hampshire Road
Great Neck, NY 11023
Investor
64,000
0.13%
64,000
0
0%
Seth E. Shilstat
108 Sequoia Court
Flemington, NJ 08822
Investor
50,000
0.10%
50,000
0
0%
John G. Mills
27 Shippen Court
Flemington, NJ 08822
Compensation for Services
50,000
0.10%
50,000
0
0%
William M. Holdsworth and
Eleanor A. Holdsworth Joint Trust
5091 MacKenzie Drive
Kewadin, MI 49648
Investors & parents of Robert Holdsworth
100,000
0.20%
100,000
0
0%
William Arthur Holdsworth
4350 Savoie Trail West
Bloomfield, MI 48323
Investor & brother of Robert Holdsworth
400,000
0.82%
400,000
0
0%
William Poulos
8176 Bay Crest Lane
Tampa, FL 33615
Investor
1,000,000
2.04%
1,000,000
0
0%
William Kartner
P&R Fasteners
325 Pierce Street
Somerset, NJ 08873
Investor
20,000
0.04%
20,000
0
0%
Kevin Malone
1120 Mountain Ivy Drive
Roswell, GA 30075
Investor
20,000
0.04%
20,000
0
0%
Noreen Jodon
40 13th Street
Monroe, NJ 08831
Investor
20,000
0.04%
20,000
0
0%
Donald F. Krueger
15042 Fuente De Paz
Rancho Murieta, CA 95683
Investor
2,050,000
4.18%
2,050,000
0
0%
Maureen Raftery
139-30 Pershing Crescent
Briarwood, NY 11435
Investor
20,000
0.04%
20,000
0
0%
James C. Barbee, Jr.
18 Redwood Terrace
Flemington, NJ 08822
Investor
50,000
0.10%
50,000
0
0%
James C. Barbee, Sr.
26269 Cave Neck Road
Milton, DE 19968
Investor
100,000
0.20%
100,000
0
0%
Michael Darvish
92 Hampshire Road
Great Neck, NY 11023
Advisory Board Member
10,000
0.02%
10,000
0
0%
Matthew Hollister
221 SE Habiscus Ave.
Stuart, FL 34996
Advisory Board Member
10,000
0.02%
10,000
0
0%
Aries Investment Partnership
1171 Lawrence Ave.
Westfield, NJ 07090
Business Development
300,000
0.61%
300,000
0
0%
Burlington Equities LLC.
24 Lake Vista Way
Ormond Beach, FL 32174
Business Development
800,000
1.63%
800,000
0
0%
Nassau International Consultants, Inc.
265 Sunrise Highway, Suite 224
Rockville Centre, NY 11570
Business Development
2,400,000
4.89%
2,400,000
0
0%

(1)  
The named party beneficially owns and has sole voting and investment power over all shares or rights to these shares. The numbers in this table assume that none of the Selling Security Holders purchases additional shares of common stock, and assumes that all shares offered are sold.
(2)  
Applicable percentage of ownership is based on 49,006,825 shares of common stock outstanding as of January 13, 2011.
 
 
After the effective date of the Company’s initial registration statement relating to this prospectus, a market maker filed an application with the Financial Industry Regulatory Authority, FINRA for our common stock to eligible for trading on the OTC Bulletin Board. The symbol given by FINRA to the Company was “EEDG.”
 
Once a market has been developed for our common stock, the shares may be sold or distributed from time to time by the selling security holders directly to one or more purchasers or through brokers or dealers who act solely as agents, at market prices prevailing at the time of sale, at prices related to such prevailing market prices, at negotiated prices or at fixed prices, which may be changed. The distribution of the shares may be effected in one or more of the following methods: (a) ordinary brokerage transactions and transactions in which the broker solicits purchasers; (b) privately negotiated transactions; (c) market sales (both long and short to the extent permitted under the federal securities laws); (d) at the market to or through market makers or into an existing market for the shares; (e) through transactions in options, swaps or other derivatives (whether exchange listed or otherwise); and (f) a combination of any of the aforementioned methods of sale.
 
In the event of the transfer by any of the selling security holders of its common shares to any pledgee, donee or other transferee, we will amend this prospectus and the registration statement of which this prospectus forms a part by the filing of a post-effective amendment in order to have the pledgee, donee or other transferee in place of the selling security holder who has transferred his, her or its shares.
 
In effecting sales, brokers and dealers engaged by the selling security holders may arrange for other brokers or dealers to participate. Brokers or dealers may receive commissions or discounts from a selling security holder or, if any of the broker-dealers act as an agent for the purchaser of such shares, from a purchaser in amounts to be negotiated which are not expected to exceed those customary in the types of transactions involved. Broker-dealers may agree with a selling security holder to sell a specified number of the shares of common stock at a stipulated price per share. Such an agreement may also require the broker-dealer to purchase as principal any unsold shares of common stock at the price required to fulfill the broker-dealer commitment to the selling security holder if such broker-dealer is unable to sell the shares on behalf of the Selling Security Holder. Broker-dealers who acquire shares of common stock as principal may thereafter resell the shares of common stock from time to time in transactions which may involve block transactions and sales to and through other broker-dealers, including transactions of the nature described above.

Such sales by a broker-dealer could be at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions. In connection with such resales, the broker-dealer may pay to or receive from the purchasers of the shares commissions as described above.
 
The Selling Security Holders and any broker-dealers or agents that participate with the Selling Security Holders in the sale of the shares of common stock may be deemed to be "underwriters" within the meaning of the Securities Act in connection with these sales. In that event, any commissions received by the broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
 
From time to time, any of the Selling Security Holders may pledge shares of common stock pursuant to the margin provisions of customer agreements with brokers. Upon a default by a Selling Security Holder, their broker may offer and sell the pledged shares of common stock from time to time. Upon a sale of the shares of common stock, the selling security holders intend to comply with the prospectus delivery requirements under the Securities Act by delivering a prospectus to each purchaser in the transaction. We intend to file any amendments or other necessary documents in compliance with the Securities Act which may be required in the event any of the Selling Security Holders defaults under any customer agreement with brokers.

To the extent required under the Securities Act, a post-effective amendment to this registration statement will be filed disclosing the name of any broker-dealers, the number of shares of common stock involved, the price at which the common stock is to be sold, and the commissions paid or discounts or concessions allowed to such broker-dealers.
 
We and the Selling Security Holders will be subject to applicable provisions of the Exchange Act and the rules and regulations under it, including, without limitation, Rule 10b-5 and, insofar as a Selling Security Holder is a distribution participant and we, under certain circumstances, may be a distribution participant, under Regulation M. All of the foregoing may affect the marketability of the common stock.
 
All expenses of the registration statement including, but not limited to, legal, accounting, printing and mailing fees are and will be borne by us. Any commissions, discounts or other fees payable to brokers or dealers in connection with any sale of the shares of common stock will be borne by the Selling Security Holders, the purchasers participating in such transaction, or both.
 
Any shares of common stock covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act, as amended, may be sold under Rule 144 rather than pursuant to this prospectus. For more information, see the section titled “Rule 144” herein on page 44.
 
 

General

Our authorized capital stock consists of 100,000,000 Common Shares, $0.00001 par value per share.

Common Stock

As of December 19, 2011, we had 82,761,205 shares of Common Stock issued and outstanding. Holders of our common stock are entitled to one vote for each share on all matters submitted to a stockholder vote.

Holders of common stock do not have cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election of directors can elect all of the directors. The presence, in person or by proxy, of shareholders holding at least fifty-one (51%) percent of the shares entitled to vote shall be necessary to constitute a quorum at any meeting of our stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to our articles of incorporation.

Holders of common stock are entitled to share in all dividends that the board of directors, in its discretion, declares from legally available funds. In the event of liquidation, dissolution or corporate wind up, each outstanding share entitles its holder to participate pro rata in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference over the common stock.

Holders of our common stock have no pre-emptive rights, no conversion rights and there are no redemption provisions applicable to our common stock.

Preferred Stock

None.

Warrants

None.

Options
 
 
None.

OTC Bulletin Board

After the effective date of the Company’s initial registration statement relating to this prospectus, a market maker filed an application with the Financial Industry Regulatory Authority, FINRA for our common stock to eligible for trading on the OTC Bulletin Board. The symbol given by FINRA to the Company was “EEDG.”

Transfer Agent and Registrar

The transfer agent and registrar for our Common Stock is OTC Corporate Transfer Service, 52 Maple Run Drive, Jericho, New York 11753.

SHARES ELIGIBLE FOR FUTURE SALE

As of December 19, 2011, we had outstanding 82,761,205 shares of common stock.

Shares Covered by this Prospectus

All of the 17,506,825 shares of Common Stock being registered in this offering may be sold without restriction under the Securities Act.


 
 
Rule 144 allows for the public resale of restricted and control securities if a number of conditions are met. Meeting the conditions includes holding the shares for a certain period of time, having adequate current information, looking into a trading volume formula, and filing a notice of the proposed sale with the SEC.

In general, a person who has beneficially owned restricted shares of our common stock for at least six months would be entitled to sell their securities provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the 90 days preceding, a sale and (ii) we are subject to the Exchange Act periodic reporting requirements and have filed all required reports for a least 90 days before the sale. Persons who have beneficially owned restricted shares of our common stock for at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of either of the following:
 
·  
1% of the number of shares of our common stock then outstanding, which will equal approximately 49,006,825 shares immediately after this offering, based on the number of shares of our common stock outstanding as of January 13, 2011; or
·  
The average weekly trading volume of our common stock on during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.
 
At the expiration of the one-year holding period, a person who was not one of our affiliates at any time during the three months preceding a sale would be entitled to sell an unlimited number of shares of our common stock without restriction. A person who was one of our affiliates at any time during the three months preceding a sale would remain subject to the volume restrictions described above.

Sales under the Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

PLAN OF DISTRIBUTION

The Primary Offering shares will be sold on a “direct public offering” through our officer and director, Robert Holdsworth, who may be considered an underwriter as that term is defined in Section 2(a) (11). Mr. Holdsworth will not receive any commission in connection with the sale of shares, although we may reimburse him for expenses incurred in connection with the offer and sale of the shares. Mr. Holdsworth intends to sell the shares being registered according to the following plan of distribution:

·  
Shares will be offered to friends, family, and business associates of Mr. Holdsworth
 
Mr. Holdsworth will be relying on, and complying with, Rule 3a4-1(a)(4)(ii) of the Exchange Act as a “safe harbor” from registration as a broker-dealer in connection with the offer and sales of the shares. In order to rely on such “safe harbor” provisions provided by Rule 3a4-1(a) (4) (ii), he must be in compliance with all of the following:
 
·  
he must not be subject to a statutory disqualification;
·  
he must not be compensated in connection with such selling participation by payment of commissions or other payments based either directly or indirectly on such transactions;
·  
he must not be an associated person of a broker-dealer;
·  
he must primarily perform, or is intended primarily to perform at the end of the offering, substantial duties for or on behalf of Energy Edge otherwise than in connection with transactions in securities; and
·  
he must perform substantial duties for the issuer after the close of the offering not connected with transactions in securities, and not have been associated with a broker or dealer for the preceding 12 months, and not participate in selling an offering of securities for any issuer more than once every 12 months.
 

Mr. Holdsworth will comply with the guidelines enumerated in Rule 3a4-1(a) (4) (ii). Neither Mr. Holdsworth, nor any affiliates will be purchasing shares in the offering.

You may purchase shares by completing and manually executing a subscription agreement and delivering it with your payment in full for all shares, which you wish to purchase, to our offices. Your subscription shall not become effective until accepted by us and approved by our counsel. Acceptance will be based upon confirmation that you have purchased the shares in a state providing for an exemption from registration. Our subscription process is as follows:
 
·  
a prospectus, with subscription agreement, is delivered by Energy Edge to each offeree;
·  
the subscription is completed by the offeree, and submitted with check back to Energy Edge where the subscription and a copy of the check is faxed to counsel for review;
·  
each subscription is reviewed by counsel for Energy Edge to confirm the subscribing party completed the form, and to confirm the state of acceptance;
·  
once approved by counsel, the subscription is accepted by Mr. Holdsworth, and the funds deposited into an account labeled: Energy Edge, within four (4) days of acceptance;
·  
subscriptions not accepted, are returned with the check un-deposited within 24 hours of determination of non-acceptance.

Funds will be deposited to the following:
 
Energy Edge Technologies Corporation
c/o Bank of America
400 Route 202 & Boorhees Corner Road
Flemington, NJ 08822
 
The Selling Security Holders and any of their pledgees, donees, transferees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of our common stock on any stock exchange, market or trading facility on which the shares are traded or quoted or in private transactions. These sales will be at fixed a fixed price of $0.10 per share until a trading market emerges for the securities. The Selling Security Holders may use any one or more of the following methods when selling shares:

·  
ordinary brokerage transactions and transactions in which the broker-dealer solicits Investors;
·  
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
·  
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
·  
an exchange distribution in accordance with the rules of the applicable exchange;
·  
privately negotiated transactions;
·  
to cover short sales made after the date that this prospectus is declared effective by the Commission;
·  
broker-dealers may agree with the Selling Security Holders to sell a specified number of such shares at a stipulated price per share;
·  
a combination of any such methods of sale; and
·  
any other method permitted pursuant to applicable law.


The Selling Security Holders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. For more information, see the section titled “Rule 144” herein on page 44.
 
Broker-dealers engaged by the Selling Security Holders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Security Holders, or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser, in amounts to be negotiated. The Selling Security Holders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.
 
The Selling Security Holders may from time to time pledge or grant a security interest in some or all of the shares owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell shares of our common stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 462(c) or other applicable provision of the Securities Act of 1933 amending the list of selling security holders to include the pledgee, transferee or other successors in interest as selling security holders under this prospectus.
 
The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in “penny stocks.” Penny stocks generally are 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. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver to the prospective purchaser a standardized risk disclosure document prepared by the Securities and Exchange Commission that provides information about penny stocks and the nature and level of risks in the penny stock market. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from such rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the prospective purchaser and receive the purchaser’s written agreement to the transaction. Furthermore, subsequent to a transaction in a penny stock, the broker-dealer will be required to deliver monthly or quarterly statements containing specific information about the penny stock. It is anticipated that our common stock will be traded on the OTC Bulletin Board at a price of less than $5.00. In this event, broker-dealers would be required to comply with the disclosure requirements mandated by the penny stock rules. These disclosure requirements will likely make it more difficult for investors in this offering to sell their common stock in the secondary market.
 
Upon our being notified in writing by a Selling Security Holder that any material arrangement has been entered into with a broker-dealer for the sale of our common stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, a post-effective amendment to this prospectus will be filed, if required, pursuant to Rule 462(c) under the Securities Act, disclosing (i) the name of each such Selling Security Holder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii) the price at which such the shares of our common stock were sold, (iv)the commissions paid or discounts or concessions allowed to such broker-dealer(s). In addition, upon our being notified in writing by a Selling Security Holder that a donee or pledgee intends to sell more than 500 shares of our common stock, a post-effective amendment to this prospectus will be filed if then required in accordance with applicable securities law.



 
The Selling Security Holders also may transfer the shares of our common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
 
The Selling Security Holders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Discounts, concessions, commissions and similar selling expenses, if any, that can be attributed to the sale of Securities will be paid by the Selling Security Holder and/or the purchasers. Each Selling Security Holder has represented and warranted to us that it acquired the securities subject to this prospectus in the ordinary course of such Selling Security Holder’s business and, at the time of its purchase of such securities such Selling Security Holder had no agreements or understandings, directly or indirectly, with any person to distribute any such securities.

We have advised each Selling Security Holder that it may not use shares registered on this prospectus to cover short sales of our common stock made prior to the date on which this prospectus shall have been declared effective by the Commission. If a Selling Security Holder uses this prospectus for any sale of our common stock, it will be subject to the prospectus delivery requirements of the Securities Act. The Selling Security Holders will be responsible to comply with the applicable provisions of the Securities Act and Exchange Act, and the rules and regulations there under promulgated, including, without limitation, Regulation M, as applicable to such Selling Security Holders in connection with resales of their respective shares under this prospectus.

We are required to pay all fees and expenses incident to the registration of the shares. We have agreed to indemnify the Selling Security Holders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

By way of clarification, it will be possible for Mr. Holdsworth to resell any of the 3,000,000 shares being registered for resale in this registration statement (the “Existing Registered Shares”) during the two-year offering period for the primary offering covered by the registration statement. However, the Existing Registered Shares would only be sold according to the existing market conditions. Mr. Holdsworth plans to resell his personal registered shares through broker’s transactions only. All sales by the Company to the public through the direct private offering will be handled in a different administrative matter, and all purchasers will be informed that the shares for the direct offering shares will be issued straight from the company as a proceeds-generating offering for the Company. We have added risk factor number 35 regarding this potential conflict of interest, and the Company has created an internal policy whereby the then-sitting board of directors (without Mr. Holdsworth, who will recuse himself) will evaluate any potential conflicts of interest. In this policy, Mr. Holdsworth agrees to present every potential resale of his personal shares to the other board of directors for their unanimous approval prior to directing his broker to put in the sell order.

LEGAL PROCEEDINGS

We are not presently a party to any litigation, nor to our knowledge and belief is any litigation threatened or contemplated.
 
 

UNDERWRITING

We are not engaging an underwriter to assist us in this offering. This offering is being made solely through our officers and directors.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion of our plan of operation should be read in conjunction with the financial statements and related notes that appear elsewhere in this prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in “Risk Factors” beginning on page 6 of this prospectus. All forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they are made.

This information should be read in conjunction with the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2010, and the unaudited condensed interim consolidated financial statements and notes thereto included in this Quarterly Report.
 
Overview
 
Energy Edge Technologies Corporation (EETC) provides businesses with solutions that reduce energy losses, while increasing the efficiency of existing buildings.

Plan of Operation

Our goal over the next twelve months is to obtain sufficient capital financing to allow for necessary growth to support the projected demand for our services.

We initially intend to focus on the following activities:
 
·  
Recruit and retain more employees, focusing on increasing our experienced sales team and strategic alliances.
·  
Increase marketing initiatives that will further promote the business and its services.
·  
Continue national expansion, becoming the premier service provider for full facility overhaul in the energy services industry.
·  
Engage in mergers and acquisitions to grow the company

Results of Operations


FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

   
2010
   
2009
 
CONTRACT REVENUES
  $ 668,380     $ 902,148  
CONTRACT COSTS
    549,727       577,708  
GROSS PROFIT
    118,653       324,440  
                 
OPERATING EXPENSES
               
Compensation
    350,924       -  
Consulting services
    1,060,300       10,000  
Professional fees
    138,263       6,467  
Director fees
    80,000       -  
General & administrative expenses
    112,161       98,382  
TOTAL OPERATING EXPENSES
    1,741,648       114,849  
                 
INCOME FROM OPERATIONS
    (1,622,995 )     209,591  
OTHER INCOME (EXPENSE)
               
Interest expense
    (6,592 )     (5,325 )
                 
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
    (1,629,587 )     204,266  
PROVISION FOR INCOME TAXES
    -       -  
                 
NET INCOME (LOSS)
  $ (1,629,587 )   $ 204,266  
                 
INCOME (LOSS) PER SHARE: BASIC AND DILUTED
  $ (0.04 )   $ 0.01  
                 
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED
    42,175,903       30,000,000  
                 
DIVIDENDS PER SHARE
  $ 0.00     $ 0.01  

Revenues
Contract revenues for the twelve months ended December 31, 2010 was $668,380 compared to $902,148 for the twelve months ended December 31, 2009. The decline in sales revenue by $233,768 was mainly due to the delay of a few projects from the fourth quarter of 2010 to the first half of 2011.

Contract Costs and Gross Profit
Contract costs declined from $577,708 for the twelve months ended December 31, 2009 to $549,727 for the same period in 2010. The decline in contract costs was consistent with our lower revenue.

Gross profit decreased from $324,440 for the twelve months ended December 31, 2009 to $118,653 for the same period in 2010. Gross profit as a percentage of revenue was 17.8% for the twelve months ended December 31, 2010, representing a decrease of 18.2% from 36.0% for the same period in 2009. The decrease in gross profit percentage was mainly due to smaller profit margins on customer projects, higher vendor costs and additional fees and commissions paid to our sales force.


Operating Expenses
Operating expenses increased significantly from $114,849 for the twelve months ended December 31, 2009 to $1,741,648 for the same period in 2010. The increase in expenses was due mainly to shares of stock issued for mostly one-time consulting services, professional fees, attorney fees and other services related to the S1 filing and taking the company public. The Company’s members of the board of directors were issued common shares with a value of $80,000 for the twelve months ended December 31, 2010 which also show as increased expenses.

General and administrative expenses
General and administrative expenses increased by $13,779 from $98,382 for the twelve months ended December 31, 2009 to $112,161 for the twelve months ended December 31, 2010. The increase was due primarily to expenses associated with expanding and supporting our larger sales network.

Net (Loss) Income
We recorded a net loss of $1,629,587 for the twelve months ended December 31, 2010, as compared to a net profit of $204,266 for the same period in 2009. The decrease was due mainly to lower sales and gross profit dollars combined with the shares of stock issued for mostly one-time consulting services, professional fees, attorney fees and other services related to the S1 filing and taking the company public which show as expenses. The Company’s members of the board of directors were issued common shares with a value of $80,000 for the twelve months ended December 31, 2010 which shows as increased expenses.

Liquidity and Capital Resources

For the year ended December 31, 2010, we used $468,784 in cash flow from operating activities compared to generating $228,703 in cash flow for the year ended December 31, 2009, primarily due to a net loss of $1,629,587. The net loss was primarily attributable to common shares issued for services. The Company also recorded an increase in contract receivables of $204,520 and a decrease in billings in excess of costs of $206,871, all of which impacted cash used by operating activities. Investing activities used $7,950 of cash, all for the purchase of office equipment. Financing activities generated $527,700 reflecting proceeds from the sale of stock.

The Company has no debt outstanding at either December 31, 2010 or December 31, 2009 and has no current plans to seek debt financing.

Cash and cash equivalents were $55,510 as of December 31, 2010 compared to $4,544 as of December 31, 2009. The Company’s current ratio was 1.01:1 at December 31, 2010 compared to .84:1 at December 31, 2009.

We have no material commitments for capital expenditures and know of no trends, demands, commitments, or events that will result in our liquidity changing in a material way for the foreseeable future.

The Company is currently seeking to raise capital in the public equity markets. There can be no assurance that the Company will obtain capital on terms that are acceptable to them as there are a variety of uncertainties, including, but not limited to: investors’ perception of, and demand for, securities in the energy services industry; conditions of the capital markets in which we seek to raise funds; and future results of operations, financial condition and cash flow. Therefore, the Company’s management cannot assume that financing will be available in amounts or terms acceptable to the Company, if at all. Any failure by the Company’s management to raise additional funds on terms favorable to the Company could have a material adverse effect on the Company’s liquidity and financial condition.

Years 2011 and 2012 Outlook

Management is looking to continue to expand its sales force in 2011 and 2012 seeking to hire a vice president of sales and to expand the Company’s marketing efforts in six additional states. Management is also seeking acquisitions that complement their services but there can be no assurances that it will find companies that meet its criteria nor, if they find such companies, that they will be able to acquire them.


Results of Operations – Three Months Ended September 30, 2011 as Compared to Three Months Ended September 30, 2010.

The following table summarizes the results of our operations during the three-month period ended September 30, 2011 and 2010, and provides information regarding the dollar and percentage increase or (decrease) from the three-month period ended September 30, 2011 to the three-month period ended September 30, 2010.

   
Three Months ended September 30
             
   
2011
   
2010
   
Increase
(decrease)
   
% Change
 
Revenue
  $ 63,762     $ 411,436     $ (347,674 )     (84.5 ) %
Cost of sales
    11,071       111,733       (100,662 )     (90.1 ) %
Gross profit
    52,691       299,703       (247,012 )     (82.4 ) %
General & administrative
    47,650       98,603       (50,953 )     (51.7 ) %
Wages - officers, consulting fees, and professional fees
    72,646       103,741       (31,095 )     (30.0 ) %
(Loss) Income from operations
    (67,605 )     97,359       164,964       169.4 %
Other expense
    25,969       1,310       24,659       1882.4 %
Provision for taxation
    0       40,000       (40,000 )     (100.0 ) %
                                 
Net (loss) income
    (93,574 )     56,409       149,983       265.9 %

Revenues

Sales revenue decreased from $411,436 in the three months ended September 30, 2010 to $63,762 in the same period in 2011, representing an 84.5% decrease. The Company’s sales are project oriented and the number of projects in a quarter can vary from none to several, which leads to dramatic swings in revenue. Entering the fourth quarter of 2011, the Company is working on a backlog of five projects with approximately $350,000 in potential revenue.

Cost of sales and gross margin

Cost of sales decreased from $111,733 in the three months ended September of 2010 to $11,071 in the same period in 2011, representing a 90.1% decrease. The gross profit percent increased from 72.8% in the three months ended September 30, 2010 to 82.6% in the same period in 2011. The increase in gross profit percent was mainly attributable to smaller jobs completed with higher gross margins.

Wages – officers, consulting fees, and professional fees

These expenses were $72,646 in the three months ended September 30, 2111 as compared to $103,741 in the prior period. The decrease in expenses was primarily driven by lack of working capital (which caused officers to waive accrued salary that was owed to them, resulting in a negative officers wage amount for the quarter). At September 30, 2011, the Chief Executive Officer and President and the Chief Financial Officer formally waived any and all accrued but unpaid salary owed to them for the nine months ended September 30, 2011. The amount waived was $154,850. There can be no assurances or expectations that the Chief Executive Officer and President and/or the Chief Financial Officer will waive their rights to salary going forward.

General and administrative



Net (loss)

Net loss for the three months ended September 30, 2011 was $(93,574) as compared to net income of $56,049 in the same period of 2010. The decrease was mainly attributable to the decrease in sales and gross margin.

Liquidity and Capital Resources

For the nine months ended September 30, 2011, we used $49,916 in cash flow compared to generating $38,696 in cash flow for the nine months ended September 30, 2010, primarily due to a net loss of $361,708, an increase in contract receivables of $383,240, an increase in billings in excess of costs of $196,733 and an increase in accrued expenses and other current liabilities of $144,760. The Company issued stock for marketing and consulting services for $477,438 of which $255,200 was expensed during the nine months ended September 30, 2011. There were no investing or financing activities during 2011 as compared to the prior year when the Company received $340,700 from the issuance of stock and consumed $74,349 in investing activities..

The Company has no debt outstanding at either September 30, 2011 or 2010 and has no current plans to seek debt financing.

Cash and cash equivalents were $5,594 as of September 30, 2011 compared to $55,510 as of December 31, 2010.

We have no material commitments for capital expenditures and know of no trends, demands, commitments, or events that will result in our liquidity changing in a material way for the foreseeable future.

The Company is currently seeking to raise capital in the public equity markets. There can be no assurance that the Company will obtain capital on terms that are acceptable to them as there are a variety of uncertainties, including, but not limited to: investors’ perception of, and demand for, securities in the energy services industry; conditions of the capital markets in which we seek to raise funds; and future results of operations, financial condition and cash flow. Therefore, the Company’s management cannot assume that financing will be available in amounts or terms acceptable to the Company, if at all. Any failure by the Company’s management to raise additional funds on terms favorable to the Company could have a material adverse effect on the Company’s liquidity and financial condition.

Year 2011 Outlook

Management is looking to continue to expand its sales force in 2011 seeking to hire a vice president of sales and to expand the Company’s marketing efforts in six additional states. Management is also seeking acquisitions that complement their services but there can be no assurances that it will find companies that meet its criteria nor, if they find such companies, that they will be able to acquire them.
 
INTERESTS OF NAMED EXPERTS AND COUNSEL
 
Except as disclosed herein, no expert or counsel named in this prospectus as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.
 
Our legal counsel, Vincent & Rees, L.C., has received 1,045,825 restricted shares of the common stock of the Company totaling 3% of the then-issued and outstanding shares of the Company upon completion of the reorganization or recapitalization of Energy Edge in exchange for the legal services performed.


The financial statements included in this prospectus and the registration statement have been audited by Silberstein Ungar, PLLC an independent registered public accounting firm, to the extent and for the periods set forth in their report appearing elsewhere herein and in the registration statement, and are included in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.

TRANSFER AGENT
 
The transfer agent and registrar for our Common Stock is OTC Corporate Transfer Service, 52 Maple Run Drive, Jericho, New York 11753.

AVAILABLE INFORMATION

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the common stock offered hereby. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement and the exhibits and schedule thereto, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For further information regarding our common stock and our company, please review the registration statement, including exhibits, schedules and reports filed as a part thereof. Statements in this prospectus as to the contents of any contract or other document filed as an exhibit to the registration statement, set forth the material terms of such contract or other document but are not necessarily complete, and in each instance reference are made to the copy of such document filed as an exhibit to the registration statement.
 
We will also be subject to the informational requirements of the Exchange Act upon the registration statement’s effectiveness, which requires us to file reports, proxy statements and other information with the SEC. Such reports, proxy statements and other information along with the registration statement, including the exhibits and schedules thereto, may be inspected at public reference facilities of the SEC at 100 F Street N.E, Washington D.C. 20549. Copies of such material can be obtained from the Public Reference Section of the SEC at prescribed rates. You may call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room. Because we file documents electronically with the SEC, you may also obtain this information by visiting the SEC’s Internet website at http://www.sec.gov.

FINANCIAL STATEMENTS

We have incorporated by reference into this prospectus the Annual Report on Form 10-K of Energy Edge Technologies Corporation for the fiscal year ended December 31, 2010, and certain other reports and proxy statement as listed in the section entitled “Incorporation by Reference of Certain Documents” of this Prospectus. The information incorporated by reference to this prospectus supplement updates and supplements Energy Edge Technologies Corporation’s Prospectus dated February 14, 2011 (the “Prospectus”).

We will provide to each person, including any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the reports or documents that have been incorporated by reference in the prospectus contained in the registration statement but not delivered with the prospectus (i) upon written or oral request; and (iii) at no cost to the requester. Please contact us at 1200 Route 22 East, Suite 2000, Bridgewater, New Jersey 08807, or (888) 729 – 5722 x 100 to request any documents. You can also find links to these documents electronically at http://energyet.com/contact-us/investors/.

The public may read and copy any materials it files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. If the registrant is an electronic filer, the SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that files electronically with the SEC at http://www.sec.gov.




Energy Edge Technologies Corporation
 
20,000,000 shares of Energy Edge Technologies Corporation Offered at
$0.20 per share
17,506,825 shares Offered at $0.10 per share
by The Selling Shareholders
 
PROSPECTUS
 
YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS DOCUMENT OR THAT WE HAVE REFERRED YOU TO. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION THAT IS DIFFERENT. THIS PROSPECTUS IS NOT AN OFFER TO SELL COMMON STOCK AND IS NOT SOLICITING AN OFFER TO BUY COMMON STOCK IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
 
ALL DEALERS THAT EFFECT TRANSACTIONS IN THESE SECURITIES WHETHER OR NOT PARTICIPATING IN THIS OFFERING MAY BE REQUIRED TO DELIVER A PROSPECTUS. THIS IS IN ADDITION TO THE DEALERS OBLIGATION TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
 

 
 
DEALER PROSPECTUS DELIVERY OBLIGATION
 
Until 90 days from the effective date of this Registration Statement, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealer's obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
 



PART II
 
INFORMATION NOT REQUIRED IN THE PROSPECTUS
 
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
 
Securities and Exchange Commission registration fee
 
$
376.74
 
Transfer Agent Fees
 
 
1,500
 
Accounting fees and expenses
 
 
21,468
 
Princeton Corporate Solutions
 
 
55,000
 
Total
 
$
78,344.64
 
 
All amounts are estimates other than the Commission’s registration fee. We are paying all expenses of the offering listed above.
 
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS
 
The only statue, charter provision, by-law, contract, or other arrangement under which any controlling person, director or officers of the Registrant is insured or indemnified in any manner against any liability which he may incur in his capacity as such, is as follows:

New Jersey law provides that any corporation shall have the power to indemnify a corporate agent against his expenses and liabilities in connection with any proceeding involving the corporate agent if the agent acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation; and with respect to any criminal proceeding, such corporate agent had no reasonable cause to believe his conduct was unlawful.

ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
 
Since inception (January 2004) we issued and sold the following unregistered securities:

At inception the Company had 1,500 no par value common shares authorized and issued to its founder (Robert Holdsworth) pursuant to an exemption under Section 4(2) of the Securities Act. On May 10, 2010, the Company issued 29,998,500 shares of common stock in payment of services provided by the founder of the Company pursuant to an exemption under Section 4(2) of the Securities Act. The shares were valued at $300, which, in the opinion of management, approximates the value of the services rendered. In April 2010, the Company sold 1,425,000 shares of common stock at $.10 per share under a private placement for total proceeds of $142,500 pursuant to an exemption under Rule 506 of Regulation D. In May, 2010, the Company sold 1,000,000 shares of common stock at $.05 per share under a private placement for total proceeds of $50,000 pursuant to an exemption under Rule 506 of Regulation D. On June 17, 2010, the Company issued 9,000,000 common shares valued at $.10 per share for business consulting services pursuant to an exemption under Rule 506 of Regulation D. On June 17, 2010, the Company issued 600,000 common shares valued at $.10 per share in payment of equity issuance cost s pursuant to an exemption under Section 4(2) of the Securities Act. On June 28, 2010, the Company issued 800,000 common shares valued at $.10 per share to four members of the Board of Directors in payment of directors’ fees pursuant to an exemption under Section 4(2) of the Securities Act. During July, August, and September, 2010, the Company sold 1,422,000 shares of common stock at $.10 per share under a private placement for total proceeds of $142,200 pursuant to an exemption under Rule 506 of Regulation D. On August 2, 2010, the Company issued 1,345,825 common shares valued at $75,000 for legal services rendered to the Company pursuant to an exemption under Section 4(2) of the Securities Act. On August 23, 2010, the Company issued 64,000 common shares at $.10 per in payment of equity issuance costs pursuant to an exemption under Section 4(2) of the Securities Act.


ITEM 16. EXHIBITS.
 
Exhibit No.
Description
3.1
Articles of Incorporation of the Company (1)
3.2
Bylaws of the Company (1)
3.3
Articles of Amendment of the Company (1)
5.1
Opinion of Vincent & Rees, L.C. (2)
10.1
Regus HQ Office Agreement (1)
10.2
Sales Agreement between Precision Medical Products, Inc. and the Company (1)
10.3
Yuengling Brewing Co. of Tampa, Inc. Purchase Order (1)
10.4
Pepperidge Farm, Inc. Purchase Order (1)
10.6
Independent Reseller Agreement between HY_SAVE and the Company (1)
10.7
Channel Partner Agreement between EnerNOC, Inc. and the Company (1)
10.9
Glacial Energy Agreement (1)
10.10
eCube Independent Sales Rep Agreement (1)
10.11
Victaulic Engineering PO (1)
10.12
Board Member Agreement – Robert Holdsworth (1)
10.13
Board Member Agreement – John J. Gerace, Ph.D (1)
10.14
Insurance Agreement with Lloyds of London (1)
10.15
Mangar Industries Invoice (1)
10.16
Form of Company Independent Contractor Agreement (1)
14.1
Code of Ethics (1)
23.1
Consent from Independent Auditor (2)
   
 (1)  
Filed with the Original Registration statement on Form S-1 on June 29, 2010, or in the subsequent Amendments to the Registration Statement and incorporated herein by reference.
 (2)  
Filed herewith
 



ITEM 17. UNDERTAKINGS.
 
The undersigned Registrant hereby undertakes:

(1) to file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:

(i)  
to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the “Securities Act”).

(ii)  
to reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the change in volume and price represents no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.

(iii)  
to include any additional or changed material information with respect to the plan of distribution.
 
(2) that, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.

(3) to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) that, for the purpose of determining liability under the Securities Act to any purchaser, if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5) that, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:


55

 
 
 
·  
Any preliminary prospectus of prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
·  
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
·  
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
·  
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions of its Certificate of Incorporation, By-Laws, the General Corporation Law of the State of New Jersey or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer of controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.


SIGNATURES
 
 
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Amendment to the Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Bridgewater, State of New Jersey, on March 6, 2012.
 
 
Energy Edge Technologies Corporation
 
       
 
By:
/s/ Joseph Ragosta, Ph.D.
 
   
Joseph Ragosta, Ph.D.
 
    Chief Executive Officer  
       
   
/s/ Robert Holdsworth
 
    Robert Holdsworth  
    Chief Financial Officer & President  
 
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated
 
     
March 6, 2012
/s/ Joseph Ragosta, Ph.D.
 
 
Joseph Ragosta
 
 
Chief Executive Officer
(Principal Executive Officer)
 
 
 
/s/ Robert Holdsworth
 
 
Robert Holdsworth
 
 
President & Chief Finanical Officer (Principal Financial and Accounting Officer)