Attached files
file | filename |
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EXCEL - IDEA: XBRL DOCUMENT - P2 Solar, Inc. | Financial_Report.xls |
EX-31 - EXHIBIT 31.1 - P2 Solar, Inc. | exh311.htm |
EX-31 - EXHIBIT 31.2 - P2 Solar, Inc. | exh312.htm |
EX-32 - EXHIBIT 32.1 - P2 Solar, Inc. | exh321.htm |
EX-32 - EXHIBIT 32.2 - P2 Solar, Inc. | exh322.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2011
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 333-91190
P2 SOLAR, INC.
(Exact name of registrant as specified in its charter)
Delaware |
| 98-0234680 |
(State or other jurisdiction of incorporation) |
| (IRS Employer Identification Number) |
| ||
Unit 204, 13569 76 Avenue Surrey, British Columbia, Canada, V3W 2W3 | ||
(Address of principal executive offices) | ||
(888) 945-4440 | ||
Registrants 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 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. [ X ] Yes [ ] No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X ] Yes [ ] No
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 [ ] | Accelerated filer [ ] |
Non-accelerated filer [ ] (Do not check if a smaller reporting Company) | Smaller reporting Company [ X ] |
Indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Exchange Act). [ ]Yes [X ] No
As of November 14, 2011 the Issuer had 56,763,179 shares of common stock issued and outstanding.
1
PART I-FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS.
The financial statements of P2 Solar, Inc., a Delaware corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company in the Company's Form 10-K for the fiscal year ended March 31, 2011, and all amendments thereto.
P2 SOLAR, INC.
(A DEVELOPMENT STAGE COMPANY)
INTERIM FINANCIAL STATEMENTS
PERIOD ENDED SEPTEMBER 30, 2011
INDEX TO FINANCIAL STATEMENTS: | Page |
|
|
Balance Sheet | 3-4 |
|
|
Statements of Operations | 5-6 |
|
|
Statements of Stockholders Equity (Deficit) | 7-10 |
|
|
Statements of Cash Flows | 11-12 |
|
|
Notes to Unaudited Financial Statements | 13-18 |
2
| P2 Solar Inc. |
|
|
|
|
| Balance Sheet |
|
|
|
|
| Expressed in U.S Dollars |
|
|
|
|
|
|
| September 30, 2011 |
| March 31, 2011 |
|
|
| (Unaudited) |
| (Audited) |
ASSETS |
|
|
|
| |
|
|
|
|
|
|
Current Assets |
|
|
|
| |
| Cash |
| $ 429 |
| $ 3,162 |
| Prepaid Assets |
| 7,236 |
| 149,316 |
| Performance Bond |
| - |
| 15,171 |
| Interest Receivable on Loan to PVT |
| 306,757 |
| 278,837 |
| Loan to PVT |
| 1,485,000 |
| 1,485,000 |
| Security for Legal Costs PVT |
| 95,402 |
| 103,135 |
|
|
|
|
|
|
| Total Current Assets |
| 1,894,823 |
| 2,034,621 |
|
|
|
|
|
|
Long Term Assets |
|
|
|
| |
| Solar Panel License |
| - |
| - |
|
|
|
|
|
|
Total Assets |
| $ 1,894,823 |
| $ 2,034,621 | |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
| |
|
|
|
|
|
|
Current Liabilities |
|
|
|
| |
| Bank Indebtedness |
| - |
| $ - |
| Accounts Payable |
| 101,582 |
| 77,776 |
| Lassen License Payable |
|
|
| - |
| Accrued Liabilities |
| - |
| 10,000 |
| Loan Payable |
| 90,870 |
| 40,800 |
| Loan Payable (Debt converted adjusted) |
|
|
| - |
| Due to related Parties |
| 99,845 |
| 88,163 |
|
|
|
|
|
|
| Total Current Liabilities |
| 292,297 |
| 216,739 |
|
|
|
|
|
|
3
| Total Liabilities |
| 292,297 |
| 216,739 |
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
| |
| Authorized: |
|
|
|
|
| 500,000,000 Common Shares, with a par value $0.001, |
|
|
|
|
| 5,000,000 preferred shares, with a par value $0.001, |
|
|
|
|
| Issued: |
|
|
|
|
| Common shares |
| $ 56,713 |
| 52,228 |
| Additional Paid-in Capital |
| 6,123,312 |
| 5,739,320 |
| Preferred Shares |
| 1,000 |
| 1,000 |
| Additional Paid in Capital Preferred Shares |
| 2,268,900 |
| 2,268,900 |
| Share subscriptions |
| - |
| 32,000 |
| Other Comprehensive Income (Loss) |
| (294,193) |
| (297,492) |
| Deficit Accumulated during Development Stage |
| (6,553,206) |
| (5,978,073) |
|
|
|
|
|
|
| Total Stockholders' Equity |
| 1,602,526 |
| 1,817,882 |
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
| $ 1,894,823 |
| $ 2,034,621 | |
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these statements |
4
P2 Solar, Inc. | ||||||
Statements of Operations | ||||||
Expressed in U.S Dollars | ||||||
Unaudited | ||||||
| For the Six | For the Six | For the Three | For the Three | Since Inception | |
| Months Ending | Months Ending | Months Ending | Months Ending | to | |
| September 30, | September 30, | September 30, | September 30, | September 30, | |
| 2011 | 2010 | 2011 | 2010 | 2011 | |
|
|
|
|
|
| |
Income |
|
|
|
|
| |
| Sales | - | - | - | - | - |
| Cost of Sales | - | - | - | - | - |
| Gross Profit | - | - | - | - | - |
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
| |
| Advertising and Promotion | 113,053 | 33,016 | 100,659 | 1,206 | 170,534 |
| Bank Charges | 1,015 | 704 | 756 | 348 | 5,901 |
| Consulting Fees | 240,131 | 67,706 | 59,931 | 1,706 | 855,079 |
| Legal and Accounting | 106,769 | 61,415 | 98,280 | 31,635 | 318,679 |
| Rent | 6,635 | 5,601 | 2,949 | 2,871 | 40,199 |
| Salaries and Benefits | 38,439 | 36,213 | 18,597 | 18,563 | 246,973 |
| Office and Other | 6,229 | 5,279 | 5,278 | 212 | 28,953 |
| Telephone and Utilities | 1,607 | 3,078 | 929 | 811 | 11,842 |
| Travel and Trade Shows | 29,345 | 30,679 | 24,842 | 4,996 | 102,472 |
| Warrants and Option Expenses | 10,777 | 60,303 | 10,777 | 60,303 | 466,830 |
| Currency Exchange Loss (Gain) | 5,956 | (176) | 4,496 | (196) | 6,232 |
| Impairment Loss | 43,349 |
| (285) |
| 2,543,349 |
|
|
|
|
|
|
|
| Total Expenses | 603,305 | 303,818 | 327,209 | 122,453 | 4,797,043 |
|
|
|
|
|
|
|
Net Loss from Operations | (603,305) | (303,818) | (327,209) | (122,453) | (4,797,043) | |
|
|
|
|
|
| |
Other Items |
|
|
|
|
| |
| Interest on PVT Loan | 28,725 | 24,460 | 14,881 | 12,042 | 225,478 |
| Other Income | - |
| - |
| - |
| Interest Expense | (553) | (8,979) | 4 | (925) | (86,961) |
|
|
|
|
|
|
|
Net Loss before Tax | (575,133) | (288,336) | (312,325) | (111,336) | (4,658,526) | |
|
|
|
|
|
| |
| Income Tax | - |
| - |
| (6,418) |
Net Loss | (575,133) | (288,336) | (312,325) | (111,336) | (4,664,944) | |
|
|
|
|
|
| |
| Other Comprehensive Income (Loss) | 3,299 | 40,319 | 4,538 | (1,721) | 138,191 |
|
|
|
|
|
|
|
Net Loss and Comprehensive Loss | (571,834) | (248,016) | (307,787) | (113,057) | (4,526,753) |
5
Loss per Share Basic and Diluted | (0.01) | (0.01) | (0.01) | (0.00) | (0.08) |
|
|
|
|
|
|
Weighted Average Number of Shares | 52,174,874 | 38,755,093 | 53,414,792 | 44,148,494 | 56,763,179 |
| |||||
The accompanying notes are an integral part of these statements |
6
P2 Solar Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
| Common | Common | Additional | Preferred | Preferred | Additional | Shares | Other |
| Deficit | Total | |
Shares | Shares | Paid-In | Shares | Shares | Paid-In | Subscribed | Comprehensive |
|
|
| ||
(Number) | (Amount) | Capital | (Number) | (Amount) | Capital |
| Income (Loss) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance (deficiency) March 31, 2008 | 20,447,614 | 20,447 | 1,092,740 | $ |
| $ | 1,384,277 |
| $ (432,384) |
| $(1,908,493) | $ 156,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancelled share subscription |
|
|
|
|
|
| (1,384,277) |
|
|
|
| (1,384,277) |
Issuance of shares | 6,300,000 | 6,300 | 1,318,700 |
|
|
| - |
| - |
| - | 1,325,000 |
Issuance of shares | 718,332 | 718 | 214,782 |
|
|
| - |
| - |
| - | 215,500 |
Issuance of shares | 8,915,871 | 8,916 |
|
|
|
| - |
| - |
| - | 8,916 |
Shares for services (authorized in Jan 2009 but issued in May 2009) | 500,000 | 500 | 169,500 |
|
|
|
|
|
|
|
| 170,000 |
Change in foreign currency translation adjustment |
|
|
|
|
|
|
|
| 326,276 |
|
| 326,276 |
Net loss |
|
|
|
|
|
|
|
|
|
| (277,592) | (277,592) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance (deficiency) March 31, 2009 | 36,881,817 | 36,881 | 2,795,722 | $ |
| $ | 0 |
| $ (106,108) |
| $(2,186,085) | $ 540,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares | 500,000 | 500 | 229,500 |
|
|
|
|
|
|
|
| 230,000 |
Shares Cancelled | (8,915,871) | (8,916) |
|
|
|
|
|
|
|
|
| (8,916) |
Shares issued | 236,587 | 237 | 70,739 |
|
|
|
|
|
|
|
| 70,976 |
7
Shares issued | 147,867 | 148 | 44,212 |
|
|
|
|
|
|
|
| 44,360 |
Shares- converted Debt | 3,797,189 | 3,797 | 375,922 |
|
|
|
|
|
|
|
| 379,719 |
Warrant expense |
|
| 361,426 |
|
|
|
|
|
|
|
| 361,426 |
Share subscription |
|
|
|
|
|
| 24,000 |
|
|
|
| 24,000 |
Shares for services (authorized in Mar 2010 but issued in May 2010) | 350,000 | 350 | 52,150 |
|
|
|
|
|
|
|
| 52,500 |
Shares for services (authorized in Mar 2010 but issued in May 2010) | 100,000 | 100 | 14,900 |
|
|
|
|
|
|
|
| 15,000 |
Change in foreign currency translation adjustment |
|
|
|
|
|
|
|
| (245,390) |
|
| (245,390) |
Net loss |
|
|
|
|
|
|
|
|
|
| (852,453) | (852,453) |
|
|
|
|
|
|
|
|
|
|
|
| - |
Balance (deficiency) Mar.31, 2010 | 33,097,589 | 33,097 | 3,944,571 |
|
|
| 24,000 |
| (351,498) |
| (3,038,538) | 611,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued | 60,000 | 60 | 17,940 |
|
|
|
|
|
|
|
| 18,000 |
Shares issued | 20,000 | 20 | 5,980 |
|
|
|
|
|
|
|
| 6,000 |
Cancelled share subscriptions |
|
|
|
|
|
| (24,000) |
|
|
|
| (24,000) |
Issuance of shares | 170,000 | 170 | 50,830 |
|
|
|
|
|
|
|
| 51,000 |
Issuance of shares | 100,000 | 100 | 29,900 |
|
|
|
|
|
|
|
| 30,000 |
Issuance of shares | 50,000 | 50 | 4,950 |
|
|
|
|
|
|
|
| 5,000 |
Issuance of shares for Directors debt | 10,000,000 | 10,000 | 790,000 |
|
|
|
|
|
|
|
| 800,000 |
Issuance of shares for debt | 3,661,632 | 3,662 | 435,734 |
|
|
|
|
|
|
|
| 439,396 |
Issuance of shares for debt | 1,209,167 | 1,209 | 143,891 |
|
|
|
|
|
|
|
| 145,100 |
8
Issuance of shares for debt | 153,801 | 154 | 18,302 |
|
|
|
|
|
|
|
| 18,456 |
Issuance of shares for debt | 426,270 | 426 | 50,726 |
|
|
|
|
|
|
|
| 51,152 |
Issuance of shares for debt | 51,171 | 51 | 6,089 |
|
|
|
|
|
|
|
| 6,141 |
Issuance of shares for debt | 120,310 | 120 | 14,317 |
|
|
|
|
|
|
|
| 14,437 |
Issuance of shares for debt | 234,907 | 235 | 27,954 |
|
|
|
|
|
|
|
| 28,189 |
Shares for services | 200,000 | 200 | 29,800 |
|
|
|
|
|
|
|
| 30,000 |
Shares for services | 240,000 | 240 | 35,760 |
|
|
|
|
|
|
|
| 36,000 |
Shares for services | 150,000 | 150 | 14,850 |
|
|
|
|
|
|
|
| 15,000 |
Shares for services | 150,000 | 150 | 14,850 |
|
|
|
|
|
|
|
| 15,000 |
Shares for services | 133,332 | 133 | 8,249 |
|
|
|
|
|
|
|
| 8,382 |
Shares for services | 1,600,000 | 1,600 | - |
|
|
|
|
|
|
|
| 1,600 |
Shares for services | 400,000 | 400 | - |
|
|
|
|
|
|
|
| 400 |
Share subscription |
|
|
|
|
|
| 32,000 |
|
|
|
| 32,000 |
Warrant expense |
|
| 94,627 |
|
|
|
|
|
|
|
| 94,627 |
Issue of Preferred Shares |
|
|
| 1,000,000 | 1,000 | 2,268,900 |
|
|
|
|
| 2,269,900 |
Shares for services |
|
|
|
|
|
|
|
| 54,006 |
|
| 54,006 |
Change in foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
| (2,939,535) | (2,939,535) |
Net loss |
| 60 | 17,940 |
|
|
|
|
|
|
|
| 18,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance (deficiency) March 31, 2011 | 52,228,179 | 52,228 | 5,739,320 | 1,000,000 | 1,000 | 2,268,900 | 32,000 |
| (297,492) |
| (5,978,073) | 1,817,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued | 520,000 | 475 | 45,730 |
|
|
|
|
|
|
|
| 46,200 |
Cancelled share subscriptions |
|
|
|
|
|
| (32,000) |
|
|
|
| (32,000) |
Shares for service | 4,015,000 | 4,015 | 327,485 |
|
|
|
|
|
|
|
| 331,500 |
Warrants and option expenses |
|
| 10,777 |
|
|
|
|
|
|
|
| 10,777 |
Change in foreign currency translation adjustment |
|
|
|
|
|
|
|
| 3,299 |
|
| 3,299 |
9
Net Loss |
|
|
|
|
|
|
|
|
|
| (575,133) | (575,133) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance (deficiency) June 30, 2011 | 56,763,179 | 56,713 | 6,123,312 | 1,000,000 | 1,000 | 2,268,900 | - |
| (294,193) |
| (6,553,206) | 1,602,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these statements |
|
|
|
|
|
10
| P2 Solar Inc. |
|
|
|
|
| Statements of Cash Flows |
|
|
|
|
| Expressed in U.S Dollars |
|
|
|
|
| Unaudited |
|
|
|
|
|
|
| Six Months | Six Months |
|
|
|
| Ended | Ended | (Inception) to |
|
|
| September 30 | September 30 | September 30 |
|
|
| 2011 | 2010 | 2011 |
Operating Activities |
|
|
|
| |
| Net (Loss) |
| $ (575,133) | $ (288,336) | $ (4,664,944) |
| Adjustments to reconcile Net (Loss) |
|
|
|
|
| Shares issued for services |
| 331,500 | 66,000 | 677,882 |
| Warrants & option expenses |
| 10,777 | 60,303 | 466,830 |
| Interest due to related parties |
| 553 | 8,979 | 82,496 |
| Wages accrued to director |
| 38,439 | 36,213 | 246,973 |
| Loss on fixed assets |
| - | - | 2,500,000 |
| Changes in Current Assets |
|
|
|
|
| (Increase)/Decrease in Accounts Receivable |
|
|
|
|
| Interest receivable |
| (27,920) | (24,197) | (224,500) |
| Prepaid expense |
| 142,080 | (131,287) | 145 |
|
|
|
|
|
|
| Changes in Current Liabilities |
|
|
|
|
| Increase/(Decrease) in Accounts Payable |
| 23,806 | 12,894 | 4,740 |
| Increase/(Decrease) in Accrued Liabilities |
| (10,000) | 2,000 | (80,419) |
|
|
|
|
|
|
| Net Cash Provided by Operating Activities |
| (65,897) | (257,431) | (990,796) |
|
|
|
|
|
|
Investment Activities |
|
|
|
| |
| Investment in Lassen |
| - | - |
|
| Solar Panel License |
| - | - | (230,000) |
| Loan to PVT |
| - | - | - |
| Net Cash (Used) by Investment Activities |
| - | - | (230,000) |
|
|
|
|
|
|
Financing Activities |
|
|
|
| |
| Bank Indebtedness |
| - | - | (17,734) |
| Due to Related party |
| (27,310) | (22,995) | (114,212) |
| Security for Legal Costs PVT |
| 7,734 | 1,263 | (95,401) |
| Loans Payable |
| 50,070 | 18,000 | (727,078) |
| Loans Payable Converted to Shares |
| - | - | (18,456) |
| Performance Bond |
| 15,171 | 136,547 | - |
| Proceeds from Subscriptions Receivable |
| - | - | 56,000 |
| Conversion of Related Party Debts |
| - | - | (20,690) |
| Issuance of Preferred Shares |
| - | - | - |
11
| Proceeds from sale of Common Stock |
| 14,200 | 81,000 | 2,022,682 |
|
|
|
|
|
|
| Net Cash Provided by Financing Activities |
| 59,865 | 213,815 | 1,085,110 |
|
|
|
|
|
|
| Foreign Exchange |
| 3,299 | 40,319 | 136,114 |
|
|
|
|
|
|
Change in cash and cash equivalents |
| (2,733) | (3,297) | 429 | |
Cash, Beginning of Period |
| 3,162 | 12,142 | - | |
Cash, End of Period |
| 429 | 8,846 | 429 | |
|
|
|
|
|
|
Supplemental Information: |
|
|
|
| |
| Interest Paid |
| $ - | $ - | $ 6,593 |
| Income Taxes Paid |
| $ - | $ - | $ 4,386 |
|
|
|
|
|
|
Non-cash investing and financing activities |
|
|
|
| |
| Common stock issued in connection with: |
|
|
|
|
| Services |
| $ - | $ 66,000 | $ 1,893,298 |
| Warrants |
| $ - | $ 60,303 | $ 456,053 |
| Conversion of notes payable |
| $ - | $ 702,871 | $ 1,082,590 |
| Director's Debt |
| $ - | $ 800,000 | $ 800,000 |
| Preferred stock issued in connection with in investment | $ - | $ 2,269,900 | $ 2,269,900 | |
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these statements |
|
| |||
|
|
|
|
|
|
12
P2 Solar, Inc.
Development Stage Company
Notes to Interim Financial Statements
For the Six Months Ended September 30, 2011
Expressed in US Dollars
1.
Basis of Presentation, Nature of Operations and Going Concern
The accompanying unaudited condensed financial statements have been prepared in accordance with both generally accepted accounting principles for interim financial information, and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying unaudited condensed financial statements reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.
The condensed financial statements and related disclosures have been prepared with the presumption that users of the interim financial information have read or have access to our annual audited financial statements for the preceding fiscal year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes thereto contained in the Annual Report on Form 10-K for the year ended March 31, 2011.
The Company was incorporated as Spectrum Trading Inc. under the laws of the Province of British Columbia, Canada, on November 21, 1990. On May 14, 1999, the Company was discontinued in British Columbia and was reincorporated as Spectrum International Inc. in the State of Delaware, U.S.A. Effective September 3, 2004, the Company changed its name from Spectrum International Inc. to Natco International Inc. On March 11, 2009, the Company changed its name from the Natco International Inc. to P2 Solar, Inc. The Company is in the development stage and has had no revenue since inception.
The Company signed a letter of agreement in February, 2008 with Lassen Energy, Inc to do a share exchange merger. On November 28, 2008, the Company cancelled the merger agreement with Lassen and instead signed a licensing agreement with Lassen that gives the Company rights to their products in India, Canada, and Hawaii. On September 3, 2010, the Company cancelled the licensing agreement with Lassen and signed a broader agreement with a company called Solarise Power Inc. (Solarise). Lassen, DBK, and Darry Boyd moved the entire Intellectual property (IP) pertaining to JIL Technology into Solarise and P2 solar owns 34% of Solarise.
The company has signed two Option Agreements in Bulgaria to purchase Solar projects. First project is 7.3 MW located in South western Part of Bulgaria and the second project is 14.35 MW located in North Eastern part of Bulgaria. Both Projects have the Power Purchase agreements and all permits in place. The company did its due-diligence on both projects; the 7.3 MW project did not meet our due diligence standards so the project was abandoned. The 14.3 MW project did have some deficiencies but not enough to warrant abandoning it. So the company is working with the promoters of the project to fix the deficiencies. Once we are satisfied that all deficiencies are fixed we will pay for the project.
These financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. The Company has incurred significant operating losses over the past three years. The Company's continued existence is
13
dependent upon its ability to raise additional capital and to achieve profitable operations through Solarise and financing and building of power plant in India and elsewhere.
If the going concern assumptions were not appropriate for these financial statements, then adjustments would be necessary in the carrying values of assets and liabilities, the reported revenues and expenses and the balance sheet classifications used.
2.
Summary of Significant Accounting Policies
Recent Authoritative Accounting Pronouncements
In February 2010, the FASB Accounting Standards Update 2010-10 (ASU 2010-10), Consolidation (Topic 810): Amendments for Certain Investment Funds. The amendments in this Update are effective as of the beginning of a reporting entitys first annual period that begins after November 15, 2009 and for interim periods within that first reporting period. Early application is not permitted. The adoption of provisions of ASU 2010-10 does not have a material effect on the Companys financial position, results of operations or cash flows.
ASU No. 2010-11 was issued in March 2010, and clarifies that the transfer of credit risk that is only in the form of subordination of one financial instrument to another is an embedded derivative feature that should not be subject to potential bifurcation and separate accounting. This ASU will be effective for the first fiscal quarter beginning after June 15, 2010, with early adoption permitted. The Company does not expect the provisions of ASU 2010-11 to have a material effect on the financial position, results of operations or cash flows of the Company.
In April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-12 (ASU 2010-12), Income Taxes (Topic 740): Accounting for Certain Tax Effects of the 2010 Health Care Reform Acts. After consultation with the FASB, the SEC stated that it would not object to a registrant incorporating the effects of the Health Care and Education Reconciliation Act of 2010 when accounting for the Patient Protection and Affordable Care Act. The Company does not expect the provisions of ASU 2010-12 to have a material effect on the financial position, results of operations or cash flows of the Company.
ASU No. 2010-13 was issued in April 2010, and will clarify the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The Company does not expect the provisions of ASU 2010-13 to have a material effect on the financial position, results of operations or cash flows of the Company.
In April 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-17 (ASU 2010-17), Revenue Recognition-Milestone Method (Topic 605): Milestone Method of Revenue Recognition. The amendments in this Update are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010. Early adoption is permitted. If a vendor elects early adoption and the period of adoption is not the beginning of the entitys fiscal year, the entity should apply the amendments retrospectively from the beginning of the year of adoption. The Company does not expect the provisions of ASU 2010-17 to have a material effect on the financial position, results of operations or cash flows of the Company.
In April 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update
14
(ASU) No. 2010-18 Receivables (Topic 310) Effect of a Loan Modification When the Loan is Part of a Pool that is accounted for as a Single Asset a consensus of the FASB Emerging Issues Task Force. ASU 2010-18 provides guidance on account for acquired loans that have evidence of credit deterioration upon acquisition. It allows acquired assets with common risk characteristics to be accounted for in the aggregate as a pool. ASU 2010-18 is effective for modifications of loans accounted for within pools under Subtopic 310-30 in the first interim or annual reporting period ending on or after July 15, 2010. The Company does not expect ASU 2010-18 to have an impact on its financial condition, results of operations, or disclosures.
In May 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-19 (ASU 2010-19), Foreign Currency (Topic 830): Foreign Currency Issues: Multiple Foreign Currency Exchange Rates. The amendments in this Update are effective as of the announcement date of March 18, 2010. The Company does not expect the provisions of ASU 2010-19 to have a material effect on the financial position, results of operations or cash flows of the Company.
There were various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.
Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
3. Solar Panel License and Share Exchange
The Solar Panel License has been cancelled as of September 1, 2010.
4. Loan to Photo Violation Technologies Inc
P2 Solar (P2) lent Photo Violation Technologies Corp., (PVT) $1,485,000.00 USD (the Loan). The Loan is the subject of a Loan Agreement and a Promissory Note. PVT has failed to pay any principal or interest on the Loan. P2 has sued PVT for $1,485,000.00 USD. P2 has also sued the Directors of PVT. P2s action against the PVT Directors had been stayed pending posting of security for costs. $100,000 security for cost was paid on December 9, 2009. P2s action against PVT and Directors is continuing. Despite the fact that P2 lent PVT $1,485,000.00, PVT is disputed that it owed P2 the $1,485,000.00 it was lent by P2. PVT has filed a Counterclaim, purporting to have claims against P2 and others. PVT made no purported claims against P2 until after P2 sued PVT and PVT's Directors. P2 was awarded a summary judgment of $1,485,000.00 plus interest by the courts on July 22, 2009. The company is vigorously attempting to collect on the judgment. In response to P2 motion the court put PVT into Bankruptcy on March 24, 2010. P2 also commenced a second action against PVT for defamation after PVT published what was alleged to be a verbatim ruling from the Court, when, in fact, the ruling had been altered by PVT. On July 8, 2011, the company received a settlement offer from PVT and its principles. We are considering this offer but have not accepted it.
5. Bank Indebtedness
There is no Bank Indebtedness
6. Related Party Transactions
15
Other than as disclosed elsewhere in these financial statements, the following amounts have been recorded as transactions with related parties:
a) Amounts due to related parties are as follows:
|
| Sept 30, 2011 |
| March 31, 2011 |
Loans payable to a director and officer of the company. The loans are unsecured, do not have fixed terms of repayment, and bear interest at 8.33% to 11% (2008 - 8.33% to 11%). It is expected that these loans will be repaid within the next 12 months. |
| 10,549 |
| 30,242 |
|
|
|
|
|
Wages and bonus payable to a director and officer of the company. This liability is unsecured, due on demand and non-interest bearing (2008 - nil%). |
| 89,296 |
| 57,921 |
|
|
|
|
|
|
| $ 99,845 |
| $ 88,163 |
Less: Current portion |
| (99,845) |
| (88,163) |
Long-term portion |
| $ - |
| $ - |
7. Capital Stock
a) Authorized Stock
The Company has authorized 500,000,000 common shares with a par value of $0.001 per share. Each common share shall entitle the holder to one vote, in person or proxy on any matter on which action of the stockholder of the corporation is sought. The company has authorized 5,000,000 shares of preferred stock with a par value of $0.001 per share. The holders of preferred stock have no rights except as determined by the Board of Directors of the company and/or provided by Delaware General Corporate Law.
b) Share Issuances
Shares issued in this quarter are listed in the following table:
Name | Reason for Issuance | Accrued previously | Accrued in Current Quarter | Total Issued |
Nav Dhaliwal | Service | 243,332 | 125,000 | 368,332 |
Sham Dhari | Service | 730,000 |
| 730,000 |
Sinova Capital | Service | 240,000 |
| 240,000 |
Aerotek Corp | Service | 350,000 |
| 350,000 |
Guriqbal Randhawa | Service |
| 1,000,000 | 1,000,000 |
CCG | Service |
| 1,000,000 | 1,000,000 |
Skander Hayer | Subscription | 20,000 | 30,000 | 50,000 |
Trevor Bauer | Subscription | 40,000 | 30,000 | 70,000 |
Kush Frenchman | Subscription | 400,000 |
| 400,000 |
| TOTALS | 2,023,332 | 2,185,000 | 4,208,332 |
16
c) Share Subscriptions
At September 30, 2011 there were no outstanding Share Subscriptions outstanding.
d) Warrants
In conjunction with the Private placement, 60,000 warrants at $0.25 issued
e) Stock Options
There were 200,000 options issued to a company consultant for services. As to the total number of Shares with respect to which the Option is granted, the Option shall be exercisable as follows: (i) 50% of the Option (100,000 Shares) in the aggregate may be exercised on or after November 21, 2009 at an Exercise Price of $0.20 per Share; and (ii) 50% of the Option (100,000 Shares) in the aggregate may be exercised on or after November 1, 2010 at an Exercise Price in an amount per Share that is 25% less than the ten day moving average of the Companys Common Stock immediately prior to November 1, 2010.
The Company has committed to issue to the Chief Executive Officer 67,000 share purchase options every April. These options will be exercisable at $0.10 per share and will expire five years after the date of grant. Further bonus options are available to the Chief Executive Officer. These bonus options entitle the Chief Executive Officer to purchase shares at 20% below the market price up to a value determined by 5% of the amount of annual profits from sales in excess of $2,500,000 up to $3,999,999 and 8% of the amount of annual profits from sales in excess of $4,000,000. To date, sales have not exceeded $2,500,000 and thus no bonus options have been issued.
Under the Black-Scholes pricing model, the fair value of the warrants as of the issuance date was calculated to be $60,303 and charged as warrants expense for the period ended September 30, 2010. The fair value of each option granted is estimated at the respective grant date using the Black-Scholes Option Module. The following assumptions were made in estimating fair value:
| Warrants & options |
| ||
Expected volatility |
| 2.14 |
|
|
|
|
|
|
|
Expected life |
| 3.0 |
|
|
|
|
|
|
|
Risk-free interest rate |
| 0.41% |
|
|
|
|
|
|
|
Dividend yield |
| - |
|
|
17
The following table summarizes stock options and warrants outstanding as of September 30, 2011, as well as activity during the three months then ended:
|
| Warrants |
| Options |
Balance, June 30, 2011 |
| 1,822,786 |
| 200,000 |
|
|
|
|
|
Issued |
| 150,000 |
| 0 |
|
|
|
|
|
Exercised & expired |
| 0 |
| 0 |
|
|
|
|
|
Balance, September 30, 2011 |
| 1,972,786 |
| 200,000 |
The following table provides certain information with respect to the above referenced warrants and options outstanding at September 30 2011:
|
| Exercise Price |
| Number of Outstanding |
| Weighted Average Exercise Price |
| Weighted Average Life Years |
|
|
|
|
|
|
|
|
|
Warrants |
| 0.42 |
| 1,822,786 |
| 0.42 |
| 1.94 |
Warrants |
| 0.25 |
| 150,000 |
| 0.25 |
|
|
|
|
|
|
|
|
|
|
|
Options |
| 0.2 |
| 200,000 |
| 0.2 |
| 9.21 |
8. Other Significant and Subsequent events
·
Between July 1, 2011 and September 30 2011 company accepted share subscriptions totaling $6,000.00 for 60,000 shares and 60,000 warrants exercisable at $0.25.
·
On June 13, 2011, the company hires MUNC media to raise awareness of the company. This is a 12 month contract for $3500 per month payable quarterly.
·
On June 15, 2011, the company also signed a contract with Marketingworks, Inc. to raise awareness of the company through Social media sites online. Payment to this company was 1,500,000 restricted common shares of the company.
·
In July, the company issued 520,000 shares for all outstanding Subscriptions.
·
In September, the company issued 3,688,332 shares to six individuals and companies for services, of which 1,563,332 were accrued but not issued in the past quarters and 2,125,000 were accrued and issued in this current quarter.
·
On July 20, 2011, the company signed another option agreement to acquire a 14.35 MW solar project in Bulgaria that is ready for construction. Due diligence is in progress at this time.
18
ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.
Background and Overview
P2 Solar, Inc., a Delaware has been in existence as a Company (including our predecessor British Columbia Corporation) since 1990. As discussed more fully below, the Companys current business operations are focused on: i) solar panel technology; and ii) the potential construction of a solar power plant located in India, Bulgaria, and Ontario, Canada. The Company is currently a development stage company.
Solar Panel Technology
As disclosed on Form 8-K filed with the Securities and Exchange Commission on November 26, 2008, on November 21, 2008, the Company entered into an Intellectual Property License Agreement (the License Agreement) with Lassen Energy, Inc., a California corporation (Lassen), DBK Corporation (DBK Corp), a Nevada corporation, and Darry Boyd (Boyd) (DBK Corp and Boyd are collectively referred to herein as (DBK)), pursuant to which Lassen and DBK agreed to provide the Company with several licenses (the Licenses) relating to the use of certain intellectual property owned by DBK and Lassen used in the manufacture of solar panels (the JIL Technology).
As disclosed on a Form 8-K filed with the Securities and Exchange Commission on October 4, 2010, on September 29, 2010, the Company, Lassen, DBK Corp., and Boyd entered into an Agreement pursuant to which the parties agreed to terminate the License Agreement and each of the parties respective obligations under the License Agreement. Specifically, all of the licenses granted under the License Agreement were terminated and the Companys financial obligations under the License Agreement were terminated. The agreed upon effective date of the License Termination Agreement was
19
September 1, 2010.
Following the termination of the License Agreement, Lassen, DBK, and Darry Boyd transferred ownership of the intellectual property pertaining to the JIL Technology into Solarise Power, Inc. (Solarise), a privately owned Nevada corporation. Solarise specializes in the development of solar panel technology. On September 6, 2010, the Company acquired 1,004,999 shares of restricted common stock of Solarise, for a total purchase price of $2,500,000 which was paid as follows: i) consideration in the amount of $250,000; and ii) the issuance to Solarise of 1,000,000 shares of Series A Non-Voting Convertible Preferred Common Stock of the Company. The 1,004,999 shares of Solarise acquired by the Company represent approximately 33.5% of the issued and outstanding shares of common stock of Solarise. Through its relationship with Solarise, the Company anticipates that it will contribute up to $2,500,000 towards the development, testing and patenting of the intellectual property pertaining to the JIL Technology. In accordance with the terms of the Series A Non-Voting Convertible Preferred Common Stock of the Company issued to Solarise, for every $2.25 that the Company contributes towards the operating costs of Solarise, one (1) Series A Non-Voting Convertible Preferred Common Stock of the Company owned by Solarise will be cancelled. The Company is currently testing the hybrid panel containing the JIL Technology internally. Once the internal tests are completed the panel will be sent for independent testing and power certification with Intertek Laboratories in California.
Power Plant Construction Business
On July 13, 2009, the Company entered into a Memorandum of Understanding (MOU) with the Punjab Energy Development Agency (PEDA) regarding the construction of a 25 mega watt power plant, which was to serve as the first phase of the larger 200 mega watt plant in Punjab, India. No material definitive agreement had been signed regarding the construction of either power plant. Pursuant to the terms of the MOU, the Company was only authorized to prepare and submit a pre-feasibility report for the proposed solar power project to PEDA; the MOU did not provide the Company with the authority to construct the solar power project. Under the terms of the MOU, the Company was required to supply the pre-feasibility report to PEDA within 120 days of the execution of the MOU. On November 5, 2009, the Company received an extension from PEDA until January 31, 2010 in which to submit its pre-feasibility report. On January 31, 2010, the Company submitted the pre-feasibility report to PEDA. However, due to the New India Solar Mission implemented by the Indian Federal Government in an effort to enhance Indias use of solar technology, jurisdiction for the Companys project was transferred to the Indian Federal Government. Accordingly, the Indian Federal Government located in Delhi, India must approve the development and implementation of solar projects in India. In July 2010, the Indian Federal Government released the new guidelines relating to the construction of solar plants in India. The guidelines set out the procedure and terms under which the interested parties are able to apply and receive approval to build solar power plants in India under the India Solar Mission. The maximum size of project that the company can apply for in the first phase was 5 MW. As a result of the enhanced guidelines, the Company was not able to complete the application process, and as such did not formally apply for the authority to construct a 5 MW plant in Punjab. Due to the enhanced guidelines, the Company has elected to engage in efforts to partner with an established Indian company that has received approval from the Indian Federal or State Government for the construction of a solar farm. The Company is currently in discussions with such companies regarding the prospect of a potential business relationship. Also,the company is currently analyzing five sites in Ontario, Canada for the construction of a 10 MW solar plant project.
Additionally, on June 30, 2011, the Company signed an option agreement to purchase a 7.3 MW project in Bulgaria. This project is ready for construction; all Power Purchase agreements and permits are in place. The land for the project has been secured. The option agreement is subject to Companys financial, legal, and technical due diligence. If the company is satisfied with its due diligence results, the
20
final share purchase agreement will be signed. The cost to acquire the project is 185,000 Eros per MW. The estimated cost to construct the project is approximately 20 million dollars.
On July 20, 2011, the Company signed an option agreement to purchase a 14.35 MW project in Bulgaria. This project is ready for construction; all proper purchase agreements and permits are in place. The land for the project has been secured. The option agreement is subject to Companys financial, legal, and technical due diligence. If the company is satisfied with its due diligence results, the final share purchase agreement will be signed. The cost to acquire the project is 200,000 Eros per MW. The estimated cost to construct the project is approximately 42 million dollars.
During the fiscal year ending March 31, 2011, and the subsequent twelve months, the Company anticipates that it will continue to pursue the development of the solar power plant in India, Ontario, and other parts of the world. Additionally, the Company will work towards the development and commercialization of the hybrid solar panel containing JIL Technology.
Results of Operation
As of September 30, 2011, the Company remained in the development stage and had not generated any revenue from operations. As a result, no meaningful comparison is possible regarding results of operation for the fiscal period ended September 30, 2011 as compared to the fiscal period ended September 30, 2010.
Liquidity and Capital Resources
The following discussion and analysis provides information that we believe is relevant to an assessment and understanding of our financial condition for the three and six months ended September 30, 2011. The following summary should be read in conjunction with the financial statements and accompanying notes to them included elsewhere in this report. Our financial statements are stated in US Dollars and are prepared in accordance with generally accepted accounting principals of the United States (GAAP).
During the fiscal period ended September 30, 2011, the Company did not have any sales or generate any revenues. As of September 30, 2011, the Companys balance sheet reflects total assets of $1,894,823 which primarily consist of: i) a Loan to Photo Violations Technology Inc. in the principal amount of $1,485,000; ii) an interest receivable on the loan to Photo Violations Technology Inc. in the amount of $306,757; and iii) prepaid assets of $7,236. As of September 30, 2011, the Companys balance sheet reflects total liabilities of $292,297. The Company has cash on hand of $429 and a deficit accumulated during the development stage of $6,553,206.
The Company does not have sufficient assets or capital resources to pay its on-going expenses. Additionally, the Company does not currently have the funds necessary to make contributions to Solarise to facilitate the development of the JIL Technology or proceed with the joint development of a power plant in India. To date, the Company has primarily financed its operations through equity investment from investors, shareholder loans, and credit facilities from Canadian chartered banks and increases in payables and share subscriptions. Most of the financing has been debt financing from related and un-related parties. Currently, our estimated fixed costs at this time are approximately $5400 per month; that figure includes $900 for lease payments, $500 for utilities, $3,000 for loan interest and principle payments, and $1,000 for miscellaneous expenses. We will have to raise approximately $5400 per month to cover operating expenses, and additional funds to cover contributions to Solarise and expenses if the Company enters into a business relationship with an Indian company relating to the establishment of a solar power plant.
21
The Company anticipates that it will attempt to raise approximately 2 to 3 million dollars through the sale of the Companys securities to cover the Companys operating expenses. Furthermore, if the Company enters into a business relationship with an Indian company relating to the establishment of a solar power plant, the Company will pursue a combination of debt and equity financing in an effort to raise the necessary funds to cover the expenses associated with the development of the power plant. We have had preliminary discussions with a number of groups regarding both a smaller and larger financing; we are hopeful that we will be able to obtain financing. However, there is no guarantee that we will be successful in raising any additional capital. If we are unable to finance the Company by debt or equity financing, or a combination of the two, we will have to look for other sources of funding to meet our requirements. That source has not yet been identified. On April 1, 2010, the Company entered into a one year Consulting Agreement with Sinova Holdings, Ltd. Pursuant to the terms of the Consulting Agreement, in the event the Companys power plant project is approved, Sinova will assist the Company in identifying strategic investors, financial investors, and/or investment banks for the purpose of securing funds necessary for the construction of the power plant in India through either equity or debt financing. In return for the consulting services rendered by Sinova, the Company is required to issue Sinova a monthly retainer in the amount of 80,000 shares of restricted common stock. Additionally, in the event Sinova is successful in assisting the Company in procuring funds for its business ventures, Sinova will be entitled to additional compensation. A copy of the Consulting Agreement was filed as exhibit 10.16 to the Companys Form 10-K filed with the Securities and Exchange Commission on July 14, 2010. The parties have temporarily suspended this Agreement until the Company is able to secure a solar plant project. Accordingly, the Company is no longer issuing any shares to Sinova.
Our financial statements have been prepared on the going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the ordinary course of business. Operations to date have been primarily financed by long-term debt and equity transactions as well as increases in payables and related party loans. Our future operations are dependent upon the identification and successful completion of additional long-term or permanent equity financing, the continued support of creditors and shareholders, and, ultimately, the achievement of profitable operations. There can be no assurance that we will be successful. If we are not, we will be required to reduce operations or liquidate assets. We will continue to evaluate our projected expenditures relative to our available cash and to seek additional means of financing in order to satisfy working capital and other cash requirements.
Off Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not Applicable.
ITEM 4.
CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
The Securities and Exchange Commission defines the term disclosure controls and procedures to mean a Company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include,
22
without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuers management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.
Changes in Internal Control over Financial Reporting
There was no change in the Company's internal control over financial reporting during the period ended September 30, 2011, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II-OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS.
On December 12, 2007, the Company commenced legal proceedings in British Columbia Supreme Court against Photo Violation Technologies Corp. ("PVT") and its president, Fred Mitschele (aka Fred Marlatt), claiming punitive, exemplary and consequential damages and other remedies arising from breach of contract and wrongful conduct on the part of Mitschele. In the Action, the Company claimed PVT had breached the agreement among the Company, PVT and Mitschele entered into on or about March 16, 2007, which provided for the completion of a reverse merger between the Company and PVT. The Company also claimed in Court documents that Mitschele engaged in a number of wrongful acts, including inducing breach of contract, attempting to divert prospective investors from Company to PVT, failing to provide financial statements and other necessary documents. In February 2008, the Company extended the law suit to include, the other two directors and one employee. On July 22, 2009, the Company was awarded a judgment in its legal proceeding against PVT in the amount of $1,485,000, plus interest. The Company is in the process of pursuing all available options to collect on its judgment against PVT. Additionally, in November 2008, the Company launched another law suit against PVT for spreading misinformation about the Company through a number of websites; this legal proceeding is currently ongoing.
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ITEM 1A.
RISK FACTORS.
Not Applicable.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4.
(REMOVED AND RESERVED).
None.
ITEM 5.
OTHER INFORMATION.
None.
ITEM 6.
EXHIBITS.
(a)
The following exhibits are filed herewith:
31.1
Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101
SCH XBRL Schema Document.
101
CAL XBRL Taxonomy Extension Calculation Linkbase Document.
101
LAB XBRL Taxonomy Extension Label Linkbase Document.
101
PRE XBRL Taxonomy Extension Presentation Linkbase Document.
101
DEF XBRL Taxonomy Extension Definition Linkbase Document.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
P2 Solar, Inc.
By: /s/ Raj-Mohinder S. Gurm
-----------------------------------
Name: Raj-Mohinder S. Gurm
Date: November 14, 2011
Title: Chief Executive Officer & Chief Financial Officer
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