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Commitments, Disclosure
6 Months Ended
Jun. 30, 2017
Notes  
Commitments, Disclosure

6. Commitments

 

Engine Agreement

 

On December 27, 2016, the Company entered into an agreement with Modoc County, California, to supply its PwrCor engine as part of a demonstration project that will convert ultra low-grade heat into electricity.  The heat will be obtained from a geothermal hot spring which comes to the surface at temperatures of approximately 190° F.

 

Funding was arranged by Modoc County via a grant from the California Energy Commission with the Company entitled to revenues of up to $123,624. The Company has estimated that the total costs to be incurred in connection with this contract will be $163,049, thus resulting in a $39,425 loss.  This total loss amount has been recognized in the accompanying statement of operations for the period ended June 30, 2017. The project will be managed by Warner Mountain Energy, which specified the PwrCor engine, and is expected to be completed by the fall of 2017.