The following discussion and analysis of our results of operations and financial condition are drawn from our audited consolidated financial statements and accompanying notes included elsewhere in this annual report and from Section 1 and Presentation of information” which appears at the beginning of this annual report.
Overview
We provide sustainable and environmentally friendly solutions to water-scarce regions. Our goal is to solve the vital problem of water quality and water supply by providing an alternative and sustainable source of pure water at the lowest possible environmental cost for areas of the world that need it, while by becoming a leading company in the supply of decentralized and turnkey solutions using alternative energy for the purification, desalination and distribution of drinking water.
We have developed an exclusive AQUAtap™ community water purification and distribution system consisting of a self-contained water purification system using either a reverse osmosis membrane or an ultrafiltration membrane, powered by photovoltaic solar panels and housed in modified shipping containers. Each unit is energy self-sufficient with minimal operation and maintenance costs. We believe this product represents the first truly eco-friendly solution to drinking water shortages because it is self-contained, decentralized and sustainable, and because each unit is capable of converting brackish, sea or contaminated surface water into drinking water. high quality at a rate of up to 100,000 liters per day.
In addition to solar powered water purification systems, we have also developed a technology known as WEPSTM which produces potable water from the humidity in the atmosphere. WEPSTM technology works by converting moisture into water, otherwise known as atmospheric water extraction.
11 Results of Operations Revenue
We have not generated any income during the years ended
Expenses
During the year ended
In the past fiscal year, we engaged
in telephone charges.
The decrease in
Net Loss
During the year ended
(equal to our total expenses), while we suffered a net loss of
Cash and capital resources
From
To date, we have experienced negative operating cash flow and are dependent on the sale of our common stock and capital contributions to fund our operations. We expect this situation to continue for the foreseeable future and expect us to experience negative cash flow in the year ended.
During the year ended
During the year ended
12
We received
in cash from financing activities, consisting of
During the year ended
Plan of Operations
Our plan of operations over the next 12 months is to continue to address water quality and supply issues in the DRC through the installation of our AQUAtapTM community water purification and distribution systems as well as using our WEPSTM technology, and we anticipate that we will need a minimum of
As described above, we intend to meet the balance of our cash requirements for the next 12 months through advances from related parties as well as a combination of debt and equity financing through private placements, if circumstances permit. We do not currently contact brokers/dealers in
and elsewhere regarding potential financing arrangements, but we intend to initiate such contact once the current cease trade order in effect against us in the Province of
During the next 12 months, we estimate that our planned expenditures will
include the following:
Amount
Description ($)
Equipment purchases 250,000
Management fees 430,000
Consulting fees 120,000
Professional fees 50,000
Rent 21,000
Advertising and promotion expenses 15,000
Travel and automotive expenses 30,000
Other general and administrative expenses 30,000
Total 946,000
Going Concern
Our financial statements have been prepared on a going concern basis, which implies that we will continue to realize our assets and discharge our liabilities in the normal course of our business. Like a
13
Off-balance sheet arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or our capital resources that is material to investors.
Critical Accounting Policies
We have identified certain accounting policies, described below, that are important to the representation of our current financial condition and results of operations.
Basis of presentation and consolidation
Our consolidated financial statements and accompanying notes are presented in accordance with generally accepted accounting principles.
Foreign Currency Translation
The Company’s functional currency is the US dollar. Foreign currency transactions are translated into the currency of measurement at the exchange rates prevailing on the date of the transaction. Monetary items on the balance sheet expressed in foreign currencies are converted into US dollars at the exchange rates in effect on the balance sheet date. The resulting exchange gains and losses are recognized in profit or loss.
The Company’s integrated foreign subsidiaries are financially or operationally dependent on the Company. The Company uses the temporal method to convert the accounts of its integrated operations into US dollars. Monetary assets and liabilities are translated at the exchange rates prevailing on the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period, except for depreciation, which is translated on the same basis as the related asset. The resulting exchange gains or losses are recognized in profit or loss.
Investments
The Company accounts for its investments in other entities by following ASC 323, Investments,”
If the Company exercises significant influence, the investment could be accounted for as a variable interest entity, which would require consolidation and accounting for a non-controlling interest.
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