MASS MEGAWATTS WIND POWER INC - Quarter Report: 2013 January (Form 10-Q)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended January 31, 2013
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from _______,20__, to _______,20__.
Commission File Number 000-32465
MASS MEGAWATTS WIND POWER, INC.
(Exact Name of Registrant as Specified in Charter)
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Massachusetts
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04-3402789
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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95 Prescott Street, Worcester, Massachusetts 01605
(Address of Principal Executive Offices)
(508) 751-5432
(Registrant's Telephone Number, Including Area Code)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 þ No o
Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in this Form 10-Q or any amendment to this Form 10-Q. Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company þ
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b-2 of the Exchange Act). Yes o No þ
There were 24,394,137 shares of the Registrant's no par value common stock outstanding as of March XX, 2013.
Mass Megawatts Wind Power, Inc.
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Mass Megawatts Wind Power, Inc.
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(Unaudited)
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January 31,
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April 30,
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2013
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2012
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ASSETS
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Current Assets:
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Cash
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$ | 21,261 | $ | 41,484 | ||||
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Prepaid expenses and other current assets
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123 | 1,682 | ||||||
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Total current assets
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21,384 | 43,166 | ||||||
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Fixed assets, net of accumulated depreciation of $35,198 and $32,291, respectively
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5,577 | 8,484 | ||||||
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Total Assets
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$ | 26,961 | $ | 51,650 | ||||
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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Current liabilities:
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Accounts payable and accrued liabilities
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$ | 89,735 | $ | 62,794 | ||||
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Due to stockholder
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29,697 | 38,106 | ||||||
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Total current liabilities
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119,432 | 100,900 | ||||||
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Stockholders' deficit:
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| Common stock; no par value; 35,000,000 shares authorized; 24,394,137 and 17,068,182 issued and outstanding as of January 31, 2013 and April 30, 2012, respectively | 6,658,682 | 6,387,246 | ||||||
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Additional paid in capital
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12,569 | - | ||||||
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Retained deficit
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(6,763,722 | ) | (6,436,496 | ) | ||||
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Total stockholders' deficit
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(92,471 | ) | (49,250 | ) | ||||
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Total liabilities and stockholders' deficit
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$ | 26,961 | $ | 51,650 | ||||
The accompanying notes are an integral part of these unaudited financial statements.
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Mass Megawatts Wind Power, Inc.
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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January 31,
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January 31,
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2013
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2012
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2013
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2012
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Contract revenues earned
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$ | - | $ | 4,500 | $ | - | $ | 15,827 | ||||||||
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Direct contracting costs
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- | - | - | 276 | ||||||||||||
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Contracting profit
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- | 4,500 | - | 15,551 | ||||||||||||
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Operating expenses:
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General and administrative
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144,312 | 134,372 | 310,413 | 303,286 | ||||||||||||
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Depreciation
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969 | 701 | 2,907 | 1,835 | ||||||||||||
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Total operating expenses
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145,281 | 135,073 | 313,320 | 305,121 | ||||||||||||
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Operating loss
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(145,281 | ) | (130,573 | ) | (313,320 | ) | (289,570 | ) | ||||||||
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Other expense:
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Loss on shares issued for compensation
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- | (3,600 | ) | - | ||||||||||||
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Loss on settlement of debt
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- | (2,416 | ) | - | (2,416 | ) | ||||||||||
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Interest expense, net
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(3,495 | ) | (3,465 | ) | (10,306 | ) | (7,678 | ) | ||||||||
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Total other expense
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(3,495 | ) | (5,881 | ) | (13,906 | ) | (10,094 | ) | ||||||||
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Net Loss
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$ | (148,776 | ) | $ | (136,454 | ) | $ | (327,226 | ) | $ | (299,664 | ) | ||||
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Net loss per share - basic and diluted
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||
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Weighted average number of common shares - basic and diluted
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22,309,533 | 11,958,718 | 19,507,125 | 10,953,372 | ||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
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Mass Megawatts Wind Power, Inc.
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(Unaudited)
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Nine Months Ended
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January 31,
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2013
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2012
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OPERATING ACTIVITIES
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Net loss
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$ | (327,226 | ) | $ | (299,664 | ) | ||
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Adjustments to reconcile net loss to net cash used by operating activities:
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Shares issued for services
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59,218 | 67,950 | ||||||
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Depreciation
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2,907 | 1,835 | ||||||
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Compensation expense- related party
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5,805 | - | ||||||
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Loss on shares issued for compensation
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3,600 | - | ||||||
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Loss on settlement of debt
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- | 2,416 | ||||||
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Changes in:
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Prepaid expenses and other current assets
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1,559 | 2,727 | ||||||
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Accounts payable and accrued liabilities
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26,941 | 51,772 | ||||||
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Deferred revenue
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- | (11,072 | ) | |||||
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Net cash used by operating activities
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(227,196 | ) | (184,036 | ) | ||||
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INVESTING ACTIVITIES
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Purchase of fixed assets
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- | (8,673 | ) | |||||
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Net cash used by investing activities
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- | (8,673 | ) | |||||
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FINANCING ACTIVITIES
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Proceeds from issuance of common stock
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208,618 | 166,070 | ||||||
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Proceeds from recovery of settlement
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6,764 | - | ||||||
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Net borrowings on shareholder credit cards
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(2,957 | ) | 19,649 | |||||
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Borrowings on related party debt
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17,548 | 18,300 | ||||||
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Payments on related party debt
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(23,000 | ) | - | |||||
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Net cash provided by financing activities
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206,973 | 204,019 | ||||||
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NET INCREASE (DECREASE) IN CASH
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(20,223 | ) | 11,310 | |||||
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CASH AT BEGINNING OF PERIOD
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41,484 | 26,277 | ||||||
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CASH AT END OF PERIOD
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$ | 21,261 | $ | 37,587 | ||||
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
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Interest paid
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$ | 10,306 | $ | 7,642 | ||||
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Income tax paid
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- | - | ||||||
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NON-CASH TRANSACTIONS
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Shares issued for payment of related party debt
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$ | - | $ | 33,830 | ||||
The accompanying notes are an integral part of these unaudited financial statements
Mass Megawatts Wind Power, Inc.
NOTE 1 – DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Mass Megawatts Wind Power, Inc. (the “Company” or “Mass Megawatts"), a Massachusetts corporation, was incorporated as Mass Megawatts, Inc. on May 27, 1997. Mass Megawatts, Inc. changed its name in January 2001 to Mass Megawatts Power, Inc. Mass Megawatts Power, Inc. changed its name on February 27, 2002 to Mass Megawatts Wind Power, Inc. Mass Megawatts' principal line of business is to develop its prototype wind energy production equipment and locate and adapt suitable operating facilities. It intends to build, patent, and operate wind energy generated power plants utilizing proprietary MultiAxis Turbine technology. Mass Megawatts expects to sell the generated electricity to the power commodity exchange on the open market, initially in California. The corporate headquarters is located in Worcester, Massachusetts.
The accompanying unaudited interim financial statements of Mass Megawatts Wind Power, Inc. have been prepared in accordance with the accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Mass Megawatt’s Annual Financial Statements included herein on this Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period ended April 30, 2012 have been omitted.
Recently Issued Accounting Pronouncements
Mass Megawatts does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows.
NOTE 2 - GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liabilities in the ordinary course of business. Operating losses have been incurred each year since inception, resulting in an accumulated deficit of $6,763,722 at January 31, 2013. In addition, at January 31, 2013, Mass Megawatts is not generating sufficient revenue to fund its ongoing operations. These conditions raise substantial doubt about Mass Megawatts' ability to continue as a going concern. Currently, management is soliciting additional equity investors through private placement offerings and is obtaining funding from Mass Megawatts' Chief Executive Officer to fund these losses; however, no assurance can be given as to the success of these efforts.
The financial statements of Mass Megawatts do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary if Mass Megawatts is unable to continue as a going concern.
NOTE 3 - RELATED PARTY TRANSACTIONS
At January 31, 2013, Mass Megawatts owed $29,697 to the Company’s President, which consisted of amounts owed on personal credit cards for company expenditures.
Payments on stockholders credit cards are subject to the terms and conditions of the authorizing entities.
NOTE 4 - STOCKHOLDERS’ EQUITY
During the nine months ended January 31, 2013:
Mass Megawatts issued 990,400 shares of common stock to consultants for their services. These shares were valued and recorded at fair value of $62,818 based on the quoted market price of our common stock.
Mass Megawatts sold 6,335,555 shares of common stock for cash of $208,618
During July, 2012, the Company submitted to a vote of security holders an amendment to the Articles of Incorporation to increase common stock authorized from 18,000,000 to 35,000,000 shares. The amendment was passed.
On August 24, 2012 the Company filed with the Commonwealth of Massachusetts to increase the Authorized Shares of Common Stock from 18,000,000 to 20,500,000 shares.
On December 7, 2012 the Company filed with the Commonwealth of Massachusetts to increase the Authorized Shares of Common Stock from 20,500,000 to 35,000,000 shares
During the three months ended January 31, 2013, additional paid in capital increased by $12,569. Of this amount $5,805 was due to a sale of common stock to the Company’s President in excess of market value. The remaining $6,764 was due to a settlement agreement entered into with the Company’s President, the Company and a third party to dismiss action initiated by the third party naming the Company a Nominal Defendant. The Company received $9,489 and paid out $2,725 to the third party per the settlement.
THIS FILING CONTAINS FORWARD-LOOKING STATEMENTS. THE WORDS "ANTICIPATED," "BELIEVE," "EXPECT," "PLAN," "INTEND," "SEEK," "ESTIMATE," "PROJECT," "COULD," "MAY," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS INCLUDE, AMONG OTHERS, INFORMATION REGARDING FUTURE OPERATIONS, FUTURE CAPITAL EXPENDITURES, AND FUTURE NET CASH FLOW. SUCH STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, WITHOUT LIMITATION, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN FOREIGN, POLITICAL, SOCIAL, AND ECONOMIC CONDITIONS, REGULATORY INITIATIVES AND COMPLIANCE WITH GOVERNMENTAL REGULATIONS, THE ABILITY TO ACHIEVE FURTHER MARKET PENETRATION AND ADDITIONAL CUSTOMERS, AND VARIOUS OTHER MATTERS, MANY OF WHICH ARE BEYOND THE COMPANY'S CONTROL. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES OCCUR, OR SHOULD UNDERLYING ASSUMPTIONS PROVE TO BE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY AND ADVERSELY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, OR OTHERWISE INDICATED. CONSEQUENTLY, ALL OF THE FORWARD-LOOKING STATEMENTS MADE IN THIS FILING ARE QUALIFIED BY THESE CAUTIONARY STATEMENTS AND THERE CAN BE NO ASSURANCE OF THE ACTUAL RESULTS OR DEVELOPMENTS.
RESULTS OF OPERATIONS FOR THE PERIOD ENDED JANUARY 31, 2013 AS COMPARED TO THE
PERIOD ENDED JANUARY 31, 2012:
The Company shows a loss of $327,226 for the nine months ended January 31, 2013 and $299,664 for the nine months ended January 31, 2012. The losses are related mostly to the consulting fees and development of site locations for projects.
Liquidity and Capital Resources
We had total assets of $26,961 as of January 31, 2013, which consisted of cash of $21,261, prepaid expenses and other current assets of $123, and fixed assets net of accumulated depreciation of $5,577.
We had total liabilities of $119,432 as of January 31, 2013, consisting of accounts payable and accrued liabilities of $89,735 and loans and advances provided by director of $29,697.
We have incurred net losses since inception and had an accumulated deficit of $6,763,722 at January 31, 2013.
Net cash used in operating activities was $233,001 for the nine months ended January 31, 2013. We had a net loss of $327,226 including non-cash items of $59,218 of shares issued for services, $3,600 of loss on shares issued for services and $2,907 of depreciation.
Net cash provided by financing activities was $212,778 for the nine months ended January 31, 2013. Funds provided included $214,423 in proceeds from the sale of stock and $17,548 cash funds advanced by certain stockholders. Funds of $6,764 were also provided from a settlement to dismiss legal proceedings. These were offset by payments of $23,000 on advances by certain stockholders and payments in excess of borrowings on shareholder credit cards of $2,957.
We had no outstanding cash commitments as of January 31, 2013.
Mass Megawatts Wind Power, Inc. (the "Company") cautions readers that in addition to important factors described elsewhere, the following important facts, among others, sometimes have affected, and in the future could affect, the Company's actual results, and could cause the Company's actual results during 2013 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company.
The Company has not had significant revenues from operations since its inception, but has raised funds through other means to maintain liquidity. Specifically, the Company raised capital with a private placement memorandum under Regulation D, Rule 506, selling shares of its common stock to raise $214,423 and received net proceeds of $6,764 in recovery settlement of legal proceedings for the nine months ended January 31, 2013. The Company has spent this money on updating prototypes, administration, working capital, marketing and advertising.
There is substantial doubt that the Company will have sufficient cash flows from operations to fund its operations for a minimum of 12 months following April 30, 2012 and is therefore dependent on financing from issuing capital stock or debt. In July 2009, the shareholders approved an increase of its authorized common stock from 7,000,000 to 12,000,000 shares. In July 2011, the shareholders again approved an increase of its authorized common stock from 12,000,000 to 18,000,000 shares. In July 2012, the shareholders approved an additional increase of its authorized common stock from 18,000,000 shares to 35,000,000 shares. Mass Megawatts plans to continue to pursue additional equity financing to provide funds for operations.
The Company also expects to generate sales in fiscal 2013 and expects to be able to fund its operations for an additional 12 months, but cannot predict with any certainty its ability to do so. Without additional future sales, there is substantial doubt about the Company’s ability to continue as a going concern.
The Company has twelve years of operating results, with no substantial revenues from operations. Much uncertainty exists about the Company's future as a result of the lack of operating revenue for several years. The lack of long-term experience in new product development could have an adverse impact on the Company.
The Company's ticker symbol is MMMW and the stock is traded as an OTCQB listed company on the OTC stock market.
Mass Megawatt's market share and any changes in the underlying economics of the industry are expected to have a minimal effect on the Company's operating results within the next 12 months. This is due to the large market for electricity and the Company’s overall market share having little or no impact on a market of this size.
The wind industry is favorably impacted by new legislation and regulations toward a cleaner air environment. This trend toward wind generated electricity continues to grow, particularly in view of the non-polluting nature of wind generation and its endless renewable source. However, there remains some uncertainty on whether or not the federal or state governments will continue with favorable environmental legislation despite popular support toward renewable energy.
The electric power industry is undergoing a period of deregulation and restructuring that is similar to the telecommunication deregulation of the 1980's. It is impossible to predict whether this change will have a favorable or unfavorable impact for the industry as a whole. It is anticipated, however, that restructuring could present more advantages and opportunities for the Company's product by enabling it to compete in the new marketplace.
RESULTS OF OPERATIONS
Nine Months Ended January 31, 2013 compared to the Nine Months Ended January 31, 2012
The net loss for the nine months ended January 31, 2013 (“2012 Period”) was $327,226 compared to a net loss of $299,664 for the nine months ended January 31, 2012 (“2011 Period”), an increase of $27,562. This increase in net loss is primarily attributable to a decrease of $15,551 in profits on contract revenues and increases in general and administrative expenses of $8,199, net interest expense of $2,628 and losses on shares issued for compensation of $3,600. These increases to net loss were offset by a decrease of $2,416 in loss on shares issued for settlement of debt.
Our operating expenses were $313,320 for the 2012 Period compared to $305,121 for the 2011 Period, an increase of $8,199. This increase in net loss is primarily attributable to increases in State fees of $11,000 to increase authorized shares and marketing costs of $14,173. These increases were offset by decreases of $8,730 in consulting fees and other costs paid for planning future projects, $7,286 in insurance and professional fees and $958 in other administrative costs.
Three Months Ended January 31, 2013 compared to the Three Months Ended January 31, 2012
The net loss for the three months ended January 31, 2013 (“2012 Period”) was $148,776 compared to a net loss of $136,454 for the three months ended January 31, 2012 (“2011 Period”), an increase of $12,322. This increase in net loss is primarily attributable to a decrease in profits on contract revenues of $4,500 and increases of $10,208 in general and administrative expenses and $30 in net interest expense. These were offset by a decrease of $2,416 in loss on shares issued for settlement of debt.
Our operating expenses were $145,281 for the 2012 Period compared to operating expenses of $135,073 for the 2011 period, an increase of $10,208. This increase in net expenses is primarily attributable to increases in State fees of $14,500 to increase authorized shares, marketing costs of $5,833, consulting fees and other costs paid for planning future projects and prototype developments of $19,256 and other administrative costs of $2,891. These were offset by a decrease in stock compensation expenses of $32,272.
OPERATIONS SUMMARY
The highest priority is to complete the third party verification of the technology. The purpose is to prove the new product's long term durability in order to be eligible for debt financing and receive more favorable equity financing in the future.
The next priority is our marketing program. While it is true that minimal marketing efforts will be required, there will be some initial marketing of the product to bring it to the attention of potential buyers. Upon successful third party verification, Mass Megawatts can begin developing strategic alliances with other wind power developers who have done the initial more expensive and sometimes complicated steps of zoning, financing and other requirements toward developing much larger commercial wind energy projects. The developers would benefit from Mass Megawatt's new product if it can be proven to be more cost effective in the finance community. No assurance can be given as to the development of a successful new product. However, the third party verification should go a long way toward removing the doubt.
Included in the marketing program, is the initial establishment of strategic alliances with companies involved with green marketing programs. During the third party verification process, Mass Megawatts, plans to begin these efforts with "word of mouth" techniques at business organizations and with power brokers. As a lower priority Mass Megawatts may be involved in very limited efforts to include direct advertising to green pricing customers either through direct mail or advertising in the media in conjunction with environmental related events. On a limited budget, the Company plans to be able to determine which marketing methods are most effective by marketing in a very limited geographical area.
As initial marketing efforts including "word of mouth" techniques have matured, the Company plans to advertise in local publications if cash flow allows continued marketing efforts. Again as noted earlier, no assurance can be given as to the development of a successful marketing program. If successful, television and radio advertisement could be utilized.
As our next priority, working capital and administrative support plans to be used for contingencies on an "as needed" basis.
Over the past year, Mass Megawatts has continued to refine the engineering details and construction processes required for commercial production of the Multi-Axis Turbosystem (MAT). These advances are currently being applied to the third party verification and ultimately accelerate worldwide awareness and acceptance of the MAT technology.
In addition, Mass Megawatts has created valuable financial analysis materials to allow our potential customer base to identify effective financing methods. This will facilitate the sale of MAT units going forward.
EMPLOYEES
As of January 31, 2013, the Company had no employees. Jonathan Ricker is an executive officer, and is not considered an employee. The Company does hire consultants and other professionals including carpenters, ironworkers, electricians and computer programmers working directly on construction projects as necessary. During the nine month period ended January 31, 2013, there were no employees hired directly by the Company. Mass Megawatts has retained other members of the management team as consultants. Mass Megawatts believes that there will be no significant changes in the number of employees. The Company does not have a collective bargaining agreement and Mass Megawatts does not have an employment contract with Mr. Ricker.
STRATEGY AND MARKETING
The Company plans to approach the simplest method of initial market penetration and then sell directly to the power exchanges. The Company plans to try to avoid difficulties of evaluating wind resources, obtaining sites, financing, and locating potential purchasers of power plants by redeveloping abandoned or obsolete wind farms. Our strategy places turbines in high wind areas where the purchase contracts from utilities for wind energy are already available. We have identified large users of electric power in high wind locations. Also, we had initial meetings with the local planning boards of the communities with the proposed sites and decision makers who purchase the electricity. We also plan to have strategic alliances with developers of proposed sites and construction companies as Mass Megawatts grows rapidly
Also, a groundswell across the nation for Green Power/renewable energy has prompted state and federal legislatures to offer tremendous tax credits and incentives including a federal tax credit of 30% of the capital cost passed by Congress and signed into law by President Obama. Capitalizing on this trend, Mass Megawatts Wind Power, Inc. has prepared a MAT sales presentation for high tax bracket individuals and corporations. For those qualifying, the financial risk of purchasing a MAT unit is minimized by the tax advantages. (Details may be found on our website under "New Developments -- Tax Package".) Revenue generated from these initial sales will accelerate internal growth and promote additional sales opportunities.
DISTRIBUTION
Although little marketing is required for profitable trades on the power exchanges, the Company will, at some time in the future, seek a higher price for each kilowatt/hour sold. When the Company pursues this effort, sales and service activities are planned to be handled through strategic alliances with new and emerging electric power brokers, which have formed as a result of deregulation in the retail sale of electricity. Power brokers buy blocks of electricity in megawatt/hour units. For example, a power broker would enter into a contract to purchase 10,000 megawatts/hours of electricity for $400,000 over a period of one year and provide a five percent non-refundable deposit on each block of electricity reserved for future purchases. Such brokers include All Energy, Green Mountain Resources, and Energy Vision. Another marketing resource for the Company’s product is Electricity Choice, which helps negotiate consumer electric sales. The Company plans to aggressively promote its products to brokers, focusing on cost savings and environmental benefits. It plans to also solicit bids from power brokers, most of who are registered in the states in which they do business. Compensation to brokers is straightforward and is typically calculated as a percentage of power sales.
CRITICAL ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company reviews its estimates, including but not limited to, recoverability of long-lived assets, recoverability of prepaid expenses and deposits on a regular basis and makes adjustments based on historical experiences and existing and expected future conditions. These evaluations are performed and adjustments are made as information is available. Management believes that these estimates are reasonable; however, actual results could differ from these estimates.
Not applicable
Evaluation of disclosure controls and procedures.
Our Management, principally our chief executive officer and chief financial officer, which is the same person, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the end of such period, the Company’s disclosure controls and procedures were not effective, as required under Rules 13a-15(e) and 15d-15(e) under the Exchange Act due to a lack of segregation of duties and an overreliance on consultants in our accounting and reporting process.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting during the nine months ended January 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.
Certification by each Director and executive officer has been executed.
None
During the three months ended January 31, 2013, the Company issued the following shares of stock:
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Shares
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Amount
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|||||||
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Common stock for cash at $0.020 per share (November 2012)
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432,500
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$
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8,650
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|||||
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Common stock for services at $0.05 per share (November 2012)
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100,000
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$
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5,000
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|||||
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Common stock for cash at $0.020 per share (December 2012)
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850,000
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$
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17,000
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|||||
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Common stock for cash at $0.0250 per share (December 2012)
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100,000
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$
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2,500
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|||||
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Common stock for cash at $0.040 per share (December 2012)
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125,000
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$
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5,000
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|||||
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Common stock for cash at $0.050 per share (December 2012)
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800,000
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$
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40,000
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|||||
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Common stock for services at $0.070 per share (December 2012)
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181,400
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$
|
12,698
|
|||||
|
Common stock for services at $0.120 per share (December 2012)
|
16,000
|
$
|
1,920
|
|||||
|
Common stock for cash at $0.133 per share (December 2012)
|
135,000
|
$
|
17,955
|
|||||
|
Common stock for cash at $0.030 per share (January 2013)
|
100,000
|
$
|
3,000
|
|||||
|
Common stock for cash at $0.040 per share (January 2013)
|
1,000,000
|
$
|
40,000
|
|||||
|
Common stock for cash at $0.045 per share (January 2013)
|
122,222
|
$
|
5,500
|
|||||
|
Common stock for cash at $0.050 per share (January 2013)
|
100,000
|
$
|
5,000
|
|||||
|
Common stock for services at $0.070 per share (January 2013)
|
100,000
|
$
|
7,000
|
|||||
Common stock issued for services is valued at its fair market value. These shares are not registered under Rule 506 of Regulation D, which is an exemption of Section 4(c) of the Securities Act of 1933.
Rule 506 of Regulation D is considered a "safe harbor" for the private offering exemption of Section 4(2) of the Securities Act. Companies using the Rule 506 exemption can raise an unlimited amount of money. A company can be assured it is within the Section 4(2) exemption by satisfying the following standards:
The company cannot use general solicitation or advertising to market the securities;
The company may sell its securities to an unlimited number of "accredited investors" and up to 35 other purchases. Unlike Rule 505, all non-accredited investors, either alone or with a purchaser representative, must be sophisticated-that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment;
Companies must decide what information to give to accredited investors, so long as it does not violate the antifraud prohibitions of the federal securities laws. But companies must give non-accredited investors disclosure documents that are generally the same as those used in registered offerings. If a company provides information to accredited investors, it must make this information available to non-accredited investors as well;
The company must be available to answer questions by prospective purchasers;
Financial statement requirements are the same as for Rule 505; and
Purchasers receive "restricted" securities, meaning that the securities cannot be sold for at least a year without registering them. While companies using the Rule 506 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company's owners and stock promoters, but contains little other information about the company.
During the nine month period ended January 31, 2013, the Company was not in default on any of its indebtedness.
During the nine month period ended January 31, 2013, the Company submitted to a vote of security holders an amendment to the Articles of Incorporation to increase the amount of common stock authorized from 18,000,000 to 35,000,000 shares. The amendment was passed.
ITEM 5. OTHER MATTERS
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
| 31 | CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER PURSUANT TO 18 U.S.C 1350, AS ADOPTED, AND THE REQUIREMENTS OF SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 |
| 32 | CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Reports on Form 8-K - The Company filed the following current reports on the Form 8-K on the following dates during the quarter ended January 31, 2013:
On December 17, 2012, reporting a press release announcing certain financial results for the fiscal quarter ended October 31, 2012
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereto duly authorized:
| MASS MEGAWATTS WIND POWER, INC. | |||
| Dated: March 18, 2013 | By: |
/s/ Jonathan Ricker
|
|
|
Chairman, Chief Executive Officer,
|
|||
|
Chief Financial Officer and
|
|||
|
Principal Accounting Officer
|
|||
| Dated: March 18, 2013 | By: |
/s/ Gary Bedell
|
|
|
Gary Bedell
|
|||
|
Director
|
|||
| Dated: March 18, 2013 | By: |
/s/ Debra Kasputis
|
|
|
Debra Kasputis
|
|||
|
Director
|
|||
16