UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File Number: 001-09370
PWRCOR, INC.
(Exact Name of Registrant as Specified in the Charter)
| Delaware |
| 13-3186327 |
| (State or Other Jurisdiction of Incorporation or Organization) |
| (I.R.S. Employer Identification No.) |
|
|
|
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| 60 E. 42nd Street, Suite 4600 |
|
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| New York, NY |
| 10165 |
| (Address of Principal Executive Offices) |
| (Zip Code) |
(212) 796-4097
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | [ ] | Accelerated filer | [ ] |
| Non-accelerated filer | [ ] | Smaller reporting company | [X] |
|
|
| Emerging growth company | [ ] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes [ ] No [X]
As of May 13, 2019, there were 210,342,722 shares of the registrant’s common stock outstanding.
TABLE OF CONTENTS
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PwrCor, Inc.
Financial Statements
For the Three Months Ended
March 31, 2019
3
PwrCor, Inc.
Balance Sheets
|
| March 31, 2019 |
| December 31, 2018 | ||
|
| (unaudited) |
|
|
| |
| ASSETS |
|
|
|
|
|
| Cash | $ | 161,943 |
| $ | 345,406 |
| Accounts receivable, net of allowance for doubtful accounts |
| 204,817 |
|
| 225,847 |
| Prepaid expenses and deposits |
| 37,485 |
|
| 34,379 |
| Total Current Assets |
| 404,245 |
|
| 605,632 |
|
|
|
|
|
|
|
| Intangible asset - license agreement |
| 118,125 |
|
| 81,000 |
|
|
|
|
|
|
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| Fixed asset - engines, net of accumulated depreciation |
| 16,902 |
|
| 18,849 |
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|
|
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|
|
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| Total Assets | $ | 539,272 |
| $ | 705,481 |
|
|
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|
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
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|
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| Accounts payable and accrued expenses | $ | 526,139 |
| $ | 620,814 |
| Total Current Liabilities |
| 526,139 |
|
| 620,814 |
|
|
|
|
|
|
|
| Common stock, $0.001 par value: 325,000,000 shares authorized; 210,342,722 shares issued and outstanding at both March 31, 2019 and December 31, 2018 | $ | 210,342 |
| $ | 210,342 |
| Additional paid-in capital |
| 1,310,910 |
|
| 1,310,910 |
| Retained earnings (deficit) |
| (1,508,119) |
|
| (1,436,585) |
| Total Stockholders’ Equity |
| 13,133 |
|
| 84,667 |
|
|
|
|
|
|
|
| Total Liabilities and Stockholders’ Equity | $ | 539,272 |
| $ | 705,481 |
See notes to financial statements
4
PwrCor, Inc.
Statement of Operations
(Unaudited)
|
| Three Months Ended March 31 | ||||
|
| 2019 |
| 2018 | ||
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REVENUE |
|
|
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|
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| Project Management | $ | 177,445 |
| $ | 276,761 |
Heat Conversion Technology |
| 8,800 |
|
| 47,852 |
|
|
|
|
|
|
|
Total Revenue |
| 186,245 |
|
| 324,613 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
| Consulting fees |
| 156,315 |
|
| 208,820 |
| Engine Production |
| 26,217 |
|
| 41,247 |
| General and Administrative |
| 32,232 |
|
| 59,740 |
| Legal and other professional fees |
| 43,015 |
|
| 65,452 |
|
|
|
|
|
|
|
Total Expenses |
| 257,779 |
|
| 375,259 |
|
|
|
|
|
|
|
| Net (Loss) | $ | (71,534) |
| $ | (50,646) |
|
|
|
|
|
|
|
| Net Income (Loss) per Common Share – Basic and Diluted | $ | (0.00) |
| $ | (0.00) |
|
|
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|
|
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| Weighted Average Common Shares Outstanding – Basic and Diluted |
| 210,342,722 |
|
| 207,662,722 |
See notes to financial statements
5
PwrCor, Inc.
Statement of Stockholders’ Equity
For the Three Months Ended
March 31, 2019 and March 31, 2018
(Unaudited)
March 31, 2019
|
|
| Common Stock |
| Additional |
| Retained |
| Total | ||
|
|
| Number of Shares |
| Amount |
| Paid-in Capital |
| Earnings (Deficit) |
| Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
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|
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Balance, December 31, 2018 |
| 210,342,722 | $ | 210,342 | $ | 1, 310,910 | $ | (1,436,585) | $ | 84,667 |
| Net Income (Loss) |
| - |
| - |
| - |
| (71,534) |
| (71,534) |
Balance, March 31, 2019 |
| 210,342,722 | $ | 210,342 | $ | 1, 310,910 | $ | (1,508,119) | $ | 13,133 |
March 31, 2018
|
|
| Common Stock |
| Additional |
| Retained |
| Total | ||
|
|
| Number of Shares |
| Amount |
| Paid-in Capital |
| Earnings (Deficit) |
| Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2017 |
| 207,662,722 | $ | 207,662 | $ | 960,224 | $ | (1,108,305) | $ | 59,581 |
| Net (Loss) |
| - |
| - |
| - |
| (50,646) |
| (50,646) |
Balance, March 31, 2018 |
| 207,662,722 | $ | 207,662 | $ | 960,224 | $ | (1,158,951) | $ | 8,935 |
See notes to financial statements
6
PwrCor, Inc.
Statement of Cash Flows
(Unaudited)
|
| Three Months Ended March 31 | ||||
|
| 2019 |
| 2018 | ||
|
|
|
|
|
|
|
NET (LOSS) | $ | (71,534) |
| $ | (50,646) |
| Adjustments to reconcile net (loss) to net cash provided (used) by operating activities |
|
|
|
|
|
Depreciation and amortization |
| 5,322 |
|
| 5,322 |
| Bad debt expense |
| - |
|
| 58,704 |
Changes in Assets and Liabilities |
|
|
|
|
|
| Decrease (increase) in accounts receivable |
| 21,030 |
|
| (146,901) |
Increase (decrease) in accounts payable and accrued expenses |
| (94,675) |
|
| 118,350 |
| Decrease (increase) in prepaid expenses and deposits |
| (3,105) |
|
| (783) |
Decrease (increase) in accrued engine development costs |
| - |
|
| (10,786) |
| Total Adjustments |
| (71,428) |
|
| 23,907 |
|
|
|
|
|
|
| Net Cash (Used) by Operating Activities |
| (142,962) |
|
| (26,739) |
|
|
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| CASH FLOWS FROM INVESTING ACTIVITIES |
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Payment to Licensor |
| (40,500) |
|
| - |
| Purchase of fixed assets |
| - |
|
| (4,483) |
Net Cash (Used) in Investing Activities |
| (40,500) |
|
| (4,483) |
|
|
|
|
|
|
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Net increase (decrease) in cash |
| (183,462) |
|
| (31,222) |
|
|
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Cash, beginning of period |
| 345,405 |
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| 114,217 |
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Cash, end of period | $ | 161,943 |
| $ | 82,995 |
See notes to financial statements
7
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
1. Organization and Nature of Business
PwrCor, Inc. (the “Company” or “PwrCor”) was until the first quarter of 2017 named Receivable Acquisition & Management Corporation (“RAMCO”) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables.
Cornerstone Program Advisors LLC (“Cornerstone”), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (“Sustainable”) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies. As a result of a reverse merger acquisition (the “Merger”) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.
In January 2017, the Company’s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017.
Note 2. Significant Accounting Policies
Basis of Presentation and Use of Estimates
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include, recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts, and the valuation of License Agreements. Actual results could differ from those estimates.
The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 and $350,000 in gross capital in 2017 and 2018, respectively, and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.
Unaudited Financial Statements
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
8
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
2. Significant Accounting Policies (continued)
Cash
The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.
Accounts Receivable
Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At both March 31, 2019, and December 31, 2018, an allowance for doubtful accounts was made totaling $56,204, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.
Revenue Recognition
The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.
The Company’s performance obligations under its engine business are generally but not exclusively satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 0% and 14.7% of revenue for the three months ended March 31, 2019 and 2018, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.
Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.
9
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
2. Significant Accounting Policies (continued)
The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.
The majority of the Company’s revenue is from products and services transferred to customers at a point in time. It was approximately 100.0% and 85.3% of revenue for the three months ended March 31, 2019 and 2018, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.
The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in contract assets or contract liabilities (deferred revenue) on the Company’s balance sheet. The Company records a contract asset when revenue is recognized prior to invoicing, or contract liabilities when revenue is recognized subsequent to invoicing. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2019 or 2018. Revenue recognized during the three months ended March 31, 2019 and 2018 that was included in contract liabilities at the beginning of the period was $0 and $0, respectively.
On March 31, 2019, the Company had no remaining performance obligations.
Fixed Assets
Fixed assets are being depreciated on the straight line basis over a period of five years.
License Agreement
The cost of the license agreement (see Note 4) is being amortized on a straight-line basis over ten years. The license agreement is tested annually for impairment or earlier if an indication of impairment exists. The Company believes that the license agreement has not been impaired.
Income Taxes
The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2014 - 2017). The Company’s tax years end September 30.
Basic and Diluted Net Income (Loss) per Share
The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.
For the three month period ended March 31, 2019 and 2018, basic (loss) and diluted (loss) per share were the same. The 4,575,000 warrants outstanding at March 31, 2019 are anti-dilutive as the trading price of the Company’s common stock was below the exercise price of the warrants.
10
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
2. Significant Accounting Policies (continued)
Recent Accounting Pronouncements
In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for the Company’s 2018 calendar year. The Company adopted this standard on January 1, 2018, and it has had no material effect on the Company’s financial statements.
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02: “Leases” (“ASU 2016-02”). ASU 2016-02 creates new accounting and reporting guidelines for leasing arrangements. The new standard will require organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The standard will also require new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard has been adopted by the Company. The Company has evaluated the impact of ASU 2016-02 on its consolidated financial statements, and it did not have a material impact.
On June 20, 2018, FASB issued Accounting Standards Update No. 2018-07, “Compensation - Stock Compensation” (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees. This ASU expands the scope of ASC Topic 718, “Compensation - Stock Compensation”, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. ASU 2018-07 supersedes ASC Subtopic 505-50, “Equity - Equity-Based Payments to Non-Employees”. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has evaluated the impact of ASU 2018-07 on its consolidated financial statements and it did not have a material impact.
All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.
Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.
3. Related Party Transactions
Consulting Fees
Certain stockholders of the Company and entities affiliated with management perform services for customers and were compensated at various rates. Total consulting expenses incurred by these stockholders and entities for the three months ended March 31, 2019 and 2018, amounted to $115,453 and $143,454, respectively. Amounts payable to these stockholders and entities at March 31, 2019 and 2018 totaled $169,653 and $144,875, respectively.
11
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
4. License Agreement
At the time of the Merger, Sustainable had a series of agreements including an exclusive, renewable 20-year engine technology license agreement (the “Agreement”) with a third party licensor that had developed engines capable of converting heat into other forms of energy. The agreements were assigned to the Company. Under the terms of the Agreement, it could be cancelled by the Company during the term once the patents upon which it was based expired. The newer of two patents expired in August of 2017, and the Company elected at that time to exercise its right to cancel the Agreement.
The third party licensor had been classified in 2010 as dissolved by the Delaware Division of Corporations, and similarly by the Arizona Corporation Commission, and has not reinstated its charters. Despite this status, during July 2017, the Company received a demand letter from the principal of that firm claiming that an aggregate total of $1,104,367 was due the firm under the Agreement, and to the principal for consulting work. The Company and its counsel believe that the claims are without merit and would vigorously defend any potential lawsuit. The Company believes it has no outstanding obligation to either party, and took the remaining unamortized asset value of the Agreement, $20,307, as a charge against earnings in the third quarter of 2017.
In December 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two directors of the Company, who also serve in management positions with TTH.
TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.
The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents. However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.
The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).
The accompanying March 31, 2019 balance sheet presents the carrying value of the license fee at $118,125, which is net of $16,875 in accumulated amortization. The cost of the license agreement is being amortized over ten years.
12
PwrCor, Inc.
Notes to Financial Statements
March 31, 2019
(Unaudited)
5. Concentrations
The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.
Two customers accounted for 89.9% and 10.1%, respectively, of total project management revenue during the three months ended March 31, 2019, and two customers accounted for 92.9% and 7.1%, respectively, during the three months ended March 31, 2018.
Two project management customers accounted for 90.2% and 9.8%, respectively, of total project management accounts receivable at March 31, 2019, and for 93.6% and 6.4%, respectively, at December 31, 2018. Project management accounts receivable constituted 88.6% of receivables at March 31, 2019, and 93.6% of net receivables as of December 31, 2018.
All of the revenue from the Company’s heat conversion technology was from single customers in the periods ended March 31, 2019 and March 31, 2018.
6. Stock Issuance
In August, September and October, 2018, the Company issued 2,500,000 shares of common stock at a per share price of $0.14 to three investors in return for a capital infusion of $350,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.40 per share. A total of 1,250,000 warrants accompanied these shares.
In September and October 2017, the Company had issued 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share. A total of 3,325,000 warrants accompanied these shares.
At March 31, 2019, the Company had 4,575,000 warrants outstanding. Of these, 3,325,000 warrants were exercisable at $0.30 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.00 per share for at least twenty consecutive trading days ending with three business days prior to the redemption notice. An additional 1,250,000 warrants are exercisable at $0.40 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.50 per share for at least twenty consecutive trading days ending with three business days prior to the redemption notice.
The Company claims exemptions from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No commissions were paid and no underwriter or placement agent was involved in these transactions. The proceeds of these transactions were used for the Company’s working capital and general corporate purposes.
7. Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.
13
Item 2. Management’s Discussion & Analysis of Financial Condition and Results of Operations.
The following management’s discussion and analysis should be read in conjunction with the Company’s historical consolidated financial statements and the related notes thereto included in our audited financial statements for the year ended December 31, 2018, and the notes thereto. The management’s discussion and analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect” and the like, and/or future tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this quarterly report. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this quarterly report.
Overview
On May 15, 2013, Receivable Acquisition & Management Corporation, a Delaware corporation completed the acquisition of Cornerstone Program Advisors LLC, a Delaware limited liability company (“Cornerstone”) and Sustainable Energy Industries, Inc., a Delaware corporation (“Sustainable”), and the Company assumed the operations of each of these entities (the “Merger”). Receivable Acquisition & Management Corporation had operated as a business purchasing and collecting upon defaulted consumer receivables; those operations were ceased and collections on any remaining receivables are being run off. Cornerstone has been in the business of managing energy infrastructure projects, specializing in the non-profit marketplace. Sustainable is in the business of developing, marketing, and implementing clean tech technologies. The Company has refocused on managing energy infrastructure projects and developing applications for an environmentally benign heat conversion technology with particular focus on the geothermal and waste-heat-to-energy production markets.
Shareholders approved a name change to PwrCor, Inc. at the shareholders meeting in January 2017, by a large majority of shareholder votes. The corporate name change in Delaware to “PwrCor, Inc.” was effective on March 3, 2017.
Results of Operations
During the three month period ended March 31, 2019, the Company had a net loss of ($71,534), on revenues of $186,245, versus a net loss of ($50,646) on revenues of $324,613, respectively, in the three month period ended March 31, 2018. The decline in the most recent three month period in 2019 as compared to the corresponding period in 2018 was primarily due to a reduction in project management revenues from two customers.
Revenue
Revenues for the three months ended March 31, 2019 as compared to the same period in 2018 from the Company’s major customer showed a 36% decrease due to the winding down of certain customer projects. The margin of project management revenue over the corresponding cost of subcontracted consultants for such projects has increased marginally from 2018 to 2019. This gross profit for the three month period ended March 31, 2019, was 18% of revenues, versus 17% for the corresponding period in 2018.
Revenue decreased 43% for the three month period ended March 31, 2019, as compared to the corresponding period from 2018. The decrease in the three month period is largely attributable to the abovementioned winding down of certain projects at one customer which was not fully offset by new business.
14
Operating Expenses
Total operating expenses for the three month period ended March 31, 2019 were $257,779, versus $375,259, during the three month period ended March 31, 2018. The 31% decrease in operating expenses in the three month period in 2019, against the corresponding period in 2018, was primarily due to lower costs of subcontracted consultants naturally resulting from the decreased project management activity noted above.
Consulting Expenses
The Company outsources a significant portion of its project management, oversight and advisory activities to a carefully selected group of small firms, individuals and subcontractors with expertise specific to the projects underway. As of the quarter ended March 31, 2019, the Company was using seven such consulting resources. Consulting expenses consistently constitute the bulk of operating costs for the project advisory and management business activities of the Company, and accordingly generally track revenue.
Liquidity and Capital Resources
As of March 31, 2019, the Company had a working capital deficit (that is, total current assets minus total current liabilities) of ($121,894) versus a working capital deficit of ($15,182) as of the year ended December 31, 2018. The change was principally due to a decline in receivables.
For the period ended March 31, 2019, the Company had cash of $161,943 versus $345,406 at December 31, 2018. For the three months ended March 31, 2019, net cash (used) by operating activities was ($142,962) versus net cash (used) by operating activities of ($26,739) for the three months ended March 31, 2018. The major factor in the change in net cash from operating activities was the use of cash for reducing payables, accrued expenses and outstanding obligations.
For the three month periods ended March 31, 2019 and March 31, 2018, $0 in cash was provided by financing activities. In the period ended March 31, 2019, $40,500 in cash was used in investing activities to complete the license acquisition from the licensor of the Company’s engine technology, while $4,483 was used for the purchase of capital equipment in the comparable 2018 period.
The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company has been exploring options and alternatives to fund growth initiatives in its identified markets. However, there can be no assurance that the Company will be able to raise sufficient capital on acceptable terms. The continued operations of the Company are dependent on its ability to collect its receivables and increase revenues.
Income Taxes
The Company did not record any income tax provision for the three month period ended March 31, 2019, and does not expect any material income tax liability for the period. There was less than $3,000 in income and related taxes for 2017 paid in the three months ended March 31, 2019.
Critical Accounting Policy & Estimates
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
15
On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in this discussion and analysis and in the condensed consolidated financial statements included in this quarterly report.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
The Issuer is not required to provide the information called for in this item due to its status as a Smaller Reporting Company.
Item 4. Controls and Procedures.
Evaluation of disclosure controls and procedures
The term “disclosure controls and procedures” is defined in Rules 13(a)-15e and 15(d) - 15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s principal executive officer and principal financial officer has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2019. He has concluded that, as of March 31, 2019, our disclosures, controls and procedures were effective to ensure that:
(1)
Information required to be disclosed by the Company in reports that it files or submits under the act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms; and
(2)
Controls and procedures are designed by the Company to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management including the principal executive and principal financial officers or persons performing similar functions, as appropriate to allow timely decisions regarding financial disclosure.
This term refers to the controls and procedures of a Company that are designed to ensure that information required to be disclosed by a Company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the required time periods. Management continues to take steps to improve its controls and procedures, and expects, further, that the growing scale of the business will enable the Company to obtain additional resources to assist in that effort.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting or in any other factors that could significantly affect these controls during the quarter ended March 31, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any material pending legal proceedings or a proceeding being contemplated by a governmental authority nor is any of the Company’s property the subject of any pending legal proceedings or a proceeding being contemplated by a governmental authority except as set forth in our Annual Report on Form 10-K for December 31, 2018 from which there have been no material changes.
Item 1A. Risk Factors.
None.
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosure
Not Applicable.
Item 5. Other Information
None.
Item 6. Exhibits
| Exhibit Number |
| Exhibit Title |
| Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
|
| Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS * |
| XBRL Instance Document |
| 101.SCH * |
| XBRL Taxonomy Schema |
101.CAL * |
| XBRL Taxonomy Calculation Linkbase |
| 101.DEF * |
| XBRL Taxonomy Definition Linkbase |
101.LAB * |
| XBRL Taxonomy Label Linkbase |
| 101.PRE * |
| XBRL Taxonomy Presentation Linkbase |
In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.
* Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
17
SIGNATURES
In accordance with the requirements of the Exchange Act, the Company has caused this report to be signed by the undersigned, thereunto duly authorized.
|
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| PWRCOR, INC. |
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| Date: May 14, 2019 | By: | /s/ Thomas Telegades |
|
| Name: | Thomas Telegades |
|
| Title: | Chief Executive Officer |
|
|
| Interim Chief Financial Officer |
|
|
| (Principal Executive Officer, Interim Principal Financial Officer and Principal Accounting Officer) |
18
EXHIBIT 31.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
AND INTERIM PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Thomas Telegades, the Chief Executive Officer and Interim Chief Financial Officer of PwrCor, Inc., certify that:
1.
I have reviewed this quarterly report on Form 10-Q of PwrCor, Inc., for the quarter ended March 31, 2019;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: May 14, 2019 | By: /s/ Thomas Telegades |
|
| Name: Thomas Telegades |
|
| Title: Chief Executive Officer, Interim Chief Financial Officer |
|
| (Principal Executive Officer, Interim Principal Financial Officer and Principal Accounting Officer) |
EXHIBIT 32.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
AND INTERIM PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly report of PwrCor, Inc., (the “Company”) on Form 10Q for the quarter ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Telegades, the Chief Executive Officer and Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: May 14, 2019 | By: /s/ Thomas Telegades |
|
| Name: Thomas Telegades |
|
| Title: Chief Executive Officer, Interim Chief Financial Officer |
|
| (Principal Executive Officer, Interim Principal Financial Officer and Principal Accounting Officer) |
Document and Entity Information - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2019 |
May 13, 2019 |
|
| Details | ||
| Registrant Name | PwrCor, Inc. | |
| Registrant CIK | 0000733337 | |
| SEC Form | 10-Q | |
| Period End date | Mar. 31, 2019 | |
| Fiscal Year End | --12-31 | |
| Trading Symbol | pwco | |
| Tax Identification Number (TIN) | 133186327 | |
| Number of common stock shares outstanding | 210,342,722 | |
| Filer Category | Non-accelerated Filer | |
| Current with reporting | Yes | |
| Small Business | true | |
| Emerging Growth Company | false | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2019 | |
| Document Fiscal Period Focus | Q1 | |
| Entity Incorporation, State Country Name | Delaware |
Balance Sheets - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
|---|---|---|
| ASSETS | ||
| Cash | $ 161,943 | $ 345,406 |
| Accounts receivable, net of allowance for doubtful accounts | 204,817 | 225,847 |
| Prepaid expenses and deposits | 37,485 | 34,379 |
| Total Current Assets | 404,245 | 605,632 |
| Intangible asset - license agreement | 118,125 | 81,000 |
| Fixed asset - engines, net of accumulated depreciation | 16,902 | 18,849 |
| Total Assets | 539,272 | 705,481 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Accounts payable and accrued expenses | 526,139 | 620,814 |
| Total Current Liabilities | 526,139 | 620,814 |
| Common stock, $0.001 par value: 325,000,000 shares authorized; 210,342,722 shares issued and outstanding at both March 31, 2019 and December 31, 2018 | 210,342 | 210,342 |
| Additional paid-in capital | 1,310,910 | 1,310,910 |
| Retained earnings (deficit) | (1,508,119) | (1,436,585) |
| Total Stockholders' Equity | 13,133 | 84,667 |
| Total Liabilities and Stockholders' Equity | $ 539,272 | $ 705,481 |
Balance Sheets - Parenthetical - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Details | ||
| Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
| Common Stock, Shares Authorized | 325,000,000 | 325,000,000 |
| Common Stock, Shares, Issued | 210,342,722 | 210,342,722 |
Statement of Operations - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| REVENUE | ||
| Project Management | $ 177,445 | $ 276,761 |
| Heat Conversion Technology | 8,800 | 47,852 |
| Total Revenue | 186,245 | 324,613 |
| EXPENSES | ||
| Consulting fees | 156,315 | 208,820 |
| Engine Production | 26,217 | 41,247 |
| General and Administrative | 32,232 | 59,740 |
| Legal and other professional fees | 43,015 | 65,452 |
| Total Expenses | 257,779 | 375,259 |
| Net Income (Loss) | $ (71,534) | $ (50,646) |
| Net Income (Loss) per Common Share - Basic and Diluted | $ (0.00) | $ (0.00) |
| Weighted Average Common Shares Outstanding - Basic and Diluted | 210,342,722 | 207,662,722 |
Statement of Stockholders' Equity - USD ($) |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Total |
|---|---|---|---|---|
| Equity Balance at Dec. 31, 2017 | $ 207,662 | $ 960,224 | $ (1,108,305) | $ 59,581 |
| Equity Balance, shares at Dec. 31, 2017 | 207,662,722 | |||
| Net Income (Loss) | $ 0 | 0 | (50,646) | (50,646) |
| Equity Balance, shares at Mar. 31, 2018 | 207,662,722 | |||
| Equity Balance at Mar. 31, 2018 | $ 207,662 | 960,224 | (1,158,951) | 8,935 |
| Equity Balance at Dec. 31, 2018 | $ 210,342 | 1,310,910 | (1,436,585) | 84,667 |
| Equity Balance, shares at Dec. 31, 2018 | 210,342,722 | |||
| Net Income (Loss) | $ 0 | 0 | (71,534) | (71,534) |
| Equity Balance, shares at Mar. 31, 2019 | 210,342,722 | |||
| Equity Balance at Mar. 31, 2019 | $ 210,342 | $ 1,310,910 | $ (1,508,119) | $ 13,133 |
Statement of Cash Flows - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Details | ||
| Net Income (Loss) | $ (71,534) | $ (50,646) |
| Adjustments to reconcile net (loss) to net cash provided (used) by operating activities | ||
| Depreciation and amortization | 5,322 | 5,322 |
| Bad debt expense | 0 | 58,704 |
| Changes in Assets and Liabilities | ||
| Decrease (increase) in accounts receivable | 21,030 | (146,901) |
| Increase (decrease) in accounts payable and accrued expenses | (94,675) | 118,350 |
| Decrease (increase) in prepaid expenses and deposits | (3,105) | (783) |
| Decrease (increase) in accrued engine development costs | 0 | (10,786) |
| Total Adjustments | (71,428) | 23,907 |
| Net Cash (Used) by Operating Activities | (142,962) | (26,739) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Payment to Licensor | (40,500) | 0 |
| Purchase of fixed assets | 0 | (4,483) |
| Net Cash (Used) in Investing Activities | (40,500) | (4,483) |
| Net increase (decrease) in cash | (183,462) | (31,222) |
| Cash, beginning of period | 345,405 | 114,217 |
| Cash, end of period | $ 161,943 | $ 82,995 |
Organization and Nature of Business |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Organization and Nature of Business | 1. Organization and Nature of Business
PwrCor, Inc. (the “Company” or “PwrCor”) was until the first quarter of 2017 named Receivable Acquisition & Management Corporation (“RAMCO”) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables.
Cornerstone Program Advisors LLC (“Cornerstone”), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (“Sustainable”) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies. As a result of a reverse merger acquisition (the “Merger”) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.
In January 2017, the Company’s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017. |
Significant Accounting Policies |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Significant Accounting Policies | Note 2. Significant Accounting Policies
Basis of Presentation and Use of Estimates
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include, recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts, and the valuation of License Agreements. Actual results could differ from those estimates.
The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 and $350,000 in gross capital in 2017 and 2018, respectively, and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.
Unaudited Financial Statements
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
Cash
The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.
Accounts Receivable
Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At both March 31, 2019, and December 31, 2018, an allowance for doubtful accounts was made totaling $56,204, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.
Revenue Recognition
The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.
The Company’s performance obligations under its engine business are generally but not exclusively satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 0% and 14.7% of revenue for the three months ended March 31, 2019 and 2018, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.
Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.
The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.
The majority of the Company’s revenue is from products and services transferred to customers at a point in time. It was approximately 100.0% and 85.3% of revenue for the three months ended March 31, 2019 and 2018, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.
The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in contract assets or contract liabilities (deferred revenue) on the Company’s balance sheet. The Company records a contract asset when revenue is recognized prior to invoicing, or contract liabilities when revenue is recognized subsequent to invoicing. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2019 or 2018. Revenue recognized during the three months ended March 31, 2019 and 2018 that was included in contract liabilities at the beginning of the period was $0 and $0, respectively.
On March 31, 2019, the Company had no remaining performance obligations.
Fixed Assets
Fixed assets are being depreciated on the straight line basis over a period of five years.
License Agreement
The cost of the license agreement (see Note 4) is being amortized on a straight-line basis over ten years. The license agreement is tested annually for impairment or earlier if an indication of impairment exists. The Company believes that the license agreement has not been impaired.
Income Taxes
The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2014 - 2017). The Company’s tax years end September 30.
Basic and Diluted Net Income (Loss) per Share
The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.
For the three month period ended March 31, 2019 and 2018, basic (loss) and diluted (loss) per share were the same. The 4,575,000 warrants outstanding at March 31, 2019 are anti-dilutive as the trading price of the Company’s common stock was below the exercise price of the warrants.
Recent Accounting Pronouncements
In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for the Company’s 2018 calendar year. The Company adopted this standard on January 1, 2018, and it has had no material effect on the Company’s financial statements.
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02: “Leases” (“ASU 2016-02”). ASU 2016-02 creates new accounting and reporting guidelines for leasing arrangements. The new standard will require organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The standard will also require new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard has been adopted by the Company. The Company has evaluated the impact of ASU 2016-02 on its consolidated financial statements, and it did not have a material impact.
On June 20, 2018, FASB issued Accounting Standards Update No. 2018-07, “Compensation - Stock Compensation” (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees. This ASU expands the scope of ASC Topic 718, “Compensation - Stock Compensation”, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. ASU 2018-07 supersedes ASC Subtopic 505-50, “Equity - Equity-Based Payments to Non-Employees”. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has evaluated the impact of ASU 2018-07 on its consolidated financial statements and it did not have a material impact.
All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.
Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued. |
Related Party Transactions Disclosure |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Related Party Transactions Disclosure | 3. Related Party Transactions
Consulting Fees
Certain stockholders of the Company and entities affiliated with management perform services for customers and were compensated at various rates. Total consulting expenses incurred by these stockholders and entities for the three months ended March 31, 2019 and 2018, amounted to $115,453 and $143,454, respectively. Amounts payable to these stockholders and entities at March 31, 2019 and 2018 totaled $169,653 and $144,875, respectively. |
License Agreement Disclosure |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| License Agreement Disclosure | 4. License Agreement
At the time of the Merger, Sustainable had a series of agreements including an exclusive, renewable 20-year engine technology license agreement (the “Agreement”) with a third party licensor that had developed engines capable of converting heat into other forms of energy. The agreements were assigned to the Company. Under the terms of the Agreement, it could be cancelled by the Company during the term once the patents upon which it was based expired. The newer of two patents expired in August of 2017, and the Company elected at that time to exercise its right to cancel the Agreement.
The third party licensor had been classified in 2010 as dissolved by the Delaware Division of Corporations, and similarly by the Arizona Corporation Commission, and has not reinstated its charters. Despite this status, during July 2017, the Company received a demand letter from the principal of that firm claiming that an aggregate total of $1,104,367 was due the firm under the Agreement, and to the principal for consulting work. The Company and its counsel believe that the claims are without merit and would vigorously defend any potential lawsuit. The Company believes it has no outstanding obligation to either party, and took the remaining unamortized asset value of the Agreement, $20,307, as a charge against earnings in the third quarter of 2017.
In December 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two directors of the Company, who also serve in management positions with TTH.
TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.
The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents. However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.
The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).
The accompanying March 31, 2019 balance sheet presents the carrying value of the license fee at $118,125, which is net of $16,875 in accumulated amortization. The cost of the license agreement is being amortized over ten years. |
Concentrations Disclosure |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Concentrations Disclosure | 5. Concentrations
The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.
Two customers accounted for 89.9% and 10.1%, respectively, of total project management revenue during the three months ended March 31, 2019, and two customers accounted for 92.9% and 7.1%, respectively, during the three months ended March 31, 2018.
Two project management customers accounted for 90.2% and 9.8%, respectively, of total project management accounts receivable at March 31, 2019, and for 93.6% and 6.4%, respectively, at December 31, 2018. Project management accounts receivable constituted 88.6% of receivables at March 31, 2019, and 93.6% of net receivables as of December 31, 2018.
All of the revenue from the Company’s heat conversion technology was from single customers in the periods ended March 31, 2019 and March 31, 2018. |
Stock Issuance Disclosure |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Stock Issuance Disclosure | 6. Stock Issuance
In August, September and October, 2018, the Company issued 2,500,000 shares of common stock at a per share price of $0.14 to three investors in return for a capital infusion of $350,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.40 per share. A total of 1,250,000 warrants accompanied these shares.
In September and October 2017, the Company had issued 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share. A total of 3,325,000 warrants accompanied these shares.
At March 31, 2019, the Company had 4,575,000 warrants outstanding. Of these, 3,325,000 warrants were exercisable at $0.30 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.00 per share for at least twenty consecutive trading days ending with three business days prior to the redemption notice. An additional 1,250,000 warrants are exercisable at $0.40 per share but may be redeemed by the Company if not exercised, in whole or in part, on at least twenty days’ prior written notice, at a price of $.001 per share; provided the average closing bid price of the Common Stock is at or above $1.50 per share for at least twenty consecutive trading days ending with three business days prior to the redemption notice.
The Company claims exemptions from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No commissions were paid and no underwriter or placement agent was involved in these transactions. The proceeds of these transactions were used for the Company’s working capital and general corporate purposes. |
Subsequent Events Disclosure |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Notes | |
| Subsequent Events Disclosure | 7. Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued. |
Significant Accounting Policies: Basis of Presentation and Use of Estimates (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include, recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts, and the valuation of License Agreements. Actual results could differ from those estimates.
The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 and $350,000 in gross capital in 2017 and 2018, respectively, and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue. |
Significant Accounting Policies: Cash Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Cash Policy | Cash
The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits. |
Significant Accounting Policies: Accounts Receivable Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Accounts Receivable Policy | Accounts Receivable
Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At both March 31, 2019, and December 31, 2018, an allowance for doubtful accounts was made totaling $56,204, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements. |
Significant Accounting Policies: Revenue Recognition Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Revenue Recognition Policy | Revenue Recognition
The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.
The Company’s performance obligations under its engine business are generally but not exclusively satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 0% and 14.7% of revenue for the three months ended March 31, 2019 and 2018, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.
Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.
The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.
The majority of the Company’s revenue is from products and services transferred to customers at a point in time. It was approximately 100.0% and 85.3% of revenue for the three months ended March 31, 2019 and 2018, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.
The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in contract assets or contract liabilities (deferred revenue) on the Company’s balance sheet. The Company records a contract asset when revenue is recognized prior to invoicing, or contract liabilities when revenue is recognized subsequent to invoicing. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2019 or 2018. Revenue recognized during the three months ended March 31, 2019 and 2018 that was included in contract liabilities at the beginning of the period was $0 and $0, respectively.
On March 31, 2019, the Company had no remaining performance obligations. |
Significant Accounting Policies: Fixed Assets Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Fixed Assets Policy | Fixed Assets
Fixed assets are being depreciated on the straight line basis over a period of five years. |
Significant Accounting Policies: License Agreement Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| License Agreement Policy | License Agreement
The cost of the license agreement (see Note 4) is being amortized on a straight-line basis over ten years. The license agreement is tested annually for impairment or earlier if an indication of impairment exists. The Company believes that the license agreement has not been impaired. |
Significant Accounting Policies: Income Taxes Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Income Taxes Policy | Income Taxes
The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2014 - 2017). The Company’s tax years end September 30. |
Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Basic and Diluted Net Income (loss) Per Share Policy | Basic and Diluted Net Income (Loss) per Share
The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.
For the three month period ended March 31, 2019 and 2018, basic (loss) and diluted (loss) per share were the same. The 4,575,000 warrants outstanding at March 31, 2019 are anti-dilutive as the trading price of the Company’s common stock was below the exercise price of the warrants. |
Significant Accounting Policies: Recent Accounting Pronouncements (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements
In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for the Company’s 2018 calendar year. The Company adopted this standard on January 1, 2018, and it has had no material effect on the Company’s financial statements.
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02: “Leases” (“ASU 2016-02”). ASU 2016-02 creates new accounting and reporting guidelines for leasing arrangements. The new standard will require organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The standard will also require new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard has been adopted by the Company. The Company has evaluated the impact of ASU 2016-02 on its consolidated financial statements, and it did not have a material impact.
On June 20, 2018, FASB issued Accounting Standards Update No. 2018-07, “Compensation - Stock Compensation” (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees. This ASU expands the scope of ASC Topic 718, “Compensation - Stock Compensation”, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. ASU 2018-07 supersedes ASC Subtopic 505-50, “Equity - Equity-Based Payments to Non-Employees”. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has evaluated the impact of ASU 2018-07 on its consolidated financial statements and it did not have a material impact.
All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Significant Accounting Policies: Subsequent Events, Policy (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Policies | |
| Subsequent Events, Policy | Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued. |
Significant Accounting Policies: Accounts Receivable Policy (Details) |
Mar. 31, 2019
USD ($)
|
|---|---|
| Details | |
| Allowance for doubtful accounts | $ 56,204 |
Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Details) |
Mar. 31, 2019
shares
|
|---|---|
| Details | |
| Anti-dilutive shares | 4,575,000 |
Related Party Transactions Disclosure (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
| Details | |||
| Consulting expenses with related parties | $ 115,453 | $ 143,454 | |
| Amounts payable to related parties | $ 169,653 | $ 144,875 | |
License Agreement Disclosure (Details) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Details | ||
| Intangible asset - license agreement | $ 118,125 | $ 81,000 |
Concentrations Disclosure (Details) - Two customers |
3 Months Ended | |
|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Project management revenue concentrations | 89.9% and 10.1% | 92.9% and 7.1% |
| Project management accounts receivable | 90.2% and 9.8% | 93.6% and 6.4% |
Stock Issuance Disclosure (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2019 |
|
| Common stock issued for cash | 2,500,000 | 6,650,000 | |
| Price per share sold | $ 0.14 | $ 0.10 | |
| Proceeds from common stock issued for cash | $ 350,000 | $ 665,000 | |
| Sale of Stock, Description of Transaction | Each share issued was accompanied by a warrant for one-half share of common stock | Each share issued was accompanied by a warrant for one-half share of common stock | |
| Exercise price per share, warrants issued | $ 0.40 | $ 0.30 | |
| Number of warrants outstanding | 4,575,000 | ||
| Warrants exercisable at $0.30 | |||
| Warrants exercisable | 3,325,000 | ||
| Warrants exercisable at $0.40 | |||
| Warrants exercisable | 1,250,000 | ||
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