Delaware
|
20-4947667
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
996
190th Avenue
|
||
Woodstock, Minnesota
|
56186
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
Large
accelerated filer o
|
Accelerated
filer o
|
|
Non-accelerated
filer o
|
Smaller
reporting company x
|
PART
I - FINANCIAL INFORMATION
|
1
|
||
Item
1. Unaudited Financial Statements
|
1
|
||
Item
2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
|
19
|
||
Item
3. Quantitative and Qualitative Analysis About Market Risk
|
26
|
||
Item
4. Controls and Procedures
|
26
|
||
PART
II - OTHER INFORMATION
|
27
|
||
Item
1. Legal Proceedings
|
27
|
||
Item
1A. Risk Factors
|
27
|
||
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
27
|
||
Item
3. Defaults Upon Senior Securities
|
28
|
||
Item
4. Submission of Matters to a Vote of Security Holders
|
28
|
||
Item
5. Other Information
|
28
|
||
Item
6. Exhibits
|
29
|
||
Signatures
|
31
|
||
Exhibits
|
Item
1.
|
FINANCIAL
STATEMENTS (UNAUDITED)
|
JUNE 30,
|
DECEMBER 31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 3,083,460 | $ | 1,310,789 | ||||
Restricted
Cash
|
361,921 | 264,557 | ||||||
Accounts
Receivable
|
||||||||
Net
of an allowance of $0 and $10,000 at June 30, 2009 and December
31, 2008
|
53,247 | 44,007 | ||||||
Short
Term Investments and Accrued Interest Receivable
|
1,338,247 | 1,306,775 | ||||||
Short
Term Investments - Restricted
|
700,000 | 700,000 | ||||||
Unbilled
Receivables, at net realizable value
|
200,848 | 250,699 | ||||||
Inventory
|
293,689 | 403,118 | ||||||
Reimbursable
Project Costs
|
91,358 | 147,800 | ||||||
Other
Current Assets
|
231,829 | 97,727 | ||||||
Current
Deferred Income Taxes
|
224,000 | 422,000 | ||||||
TOTAL
CURRENT ASSETS
|
6,578,599 | 4,947,472 | ||||||
PROPERTY
AND EQUIPMENT (Net)
|
384,955 | 344,124 | ||||||
GOODWILL
|
227,998 | 227,998 | ||||||
OTHER
ASSETS
|
||||||||
Deferred
Income Tax Asset
|
212,000 | 14,000 | ||||||
Project
Development Costs
|
307,000 | 302,000 | ||||||
Intangible
Assets
|
- | 72,000 | ||||||
TOTAL
OTHER ASSETS
|
519,000 | 388,000 | ||||||
TOTAL
ASSETS
|
$ | 7,710,552 | $ | 5,907,594 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
Payable
|
$ | 613,284 | $ | 250,285 | ||||
Accrued
Expenses
|
128,970 | 346,019 | ||||||
Deferred
Revenue
|
697,166 | 332,541 | ||||||
Notes
Payable
|
571,791 | 646,791 | ||||||
TOTAL
CURRENT LIABILITIES
|
2,011,211 | 1,575,636 | ||||||
SERIES
A CONVERTIBLE PREFERRED STOCK
|
||||||||
$.0001
par value, 20,000,000 authorized, 5,160,000 issued
|
||||||||
and
outstanding as of December 31, 2008
|
- | 3,342,954 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred
Stock, 20,000,000 shares authorized
|
||||||||
Series
A Convertible Preferred Stock - $.0001 par value,
|
||||||||
5,160,000
issued and outstanding at June 30, 2009
|
2,703,742 | - | ||||||
Series
B Convertible Preferred Stock - $.0001 par value,
|
||||||||
6,607,006
issued and outstanding at June 30, 2009
|
15,704,903 | - | ||||||
Common
Stock - $.0001 par value; 100,000,000 shares authorized,
|
||||||||
20,466,333
and 20,183,213 issued and outstanding as of
|
2,046 | 2,018 | ||||||
June
30, 2009 and December 31, 2008, respectively
|
||||||||
Subscription
Receivable from Series B Convertible Preferred Stock
|
(196,710 | ) | - | |||||
Additional
Paid-In Capital
|
- | 2,740,788 | ||||||
Accumulated
Deficit
|
(12,514,640 | ) | (1,753,802 | ) | ||||
TOTAL
STOCKHOLDERS' EQUITY
|
5,699,341 | 989,004 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 7,710,552 | $ | 5,907,594 |
2009
|
2008
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
REVENUE
|
||||||||||||||||
Wind
Farm Development and Management
|
$ | 200,980 | 62.9 | % | $ | 124,032 | 43.6 | % | ||||||||
Turbine
Sales & Service
|
88,660 | 27.7 | 134,250 | 47.2 | ||||||||||||
Related
Party Revenue
|
28,828 | 9.0 | 21,518 | 7.6 | ||||||||||||
Other
Operating Income
|
1,200 | 0.4 | 4,398 | 1.6 | ||||||||||||
TOTAL
REVENUE
|
319,668 | 100.0 | 284,198 | 100.0 | ||||||||||||
COST
OF GOODS SOLD
|
112,804 | 35.3 | 138,313 | 48.7 | ||||||||||||
GROSS
PROFIT
|
206,864 | 64.7 | 145,885 | 51.3 | ||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
General
and Administrative Expenses
|
353,396 | 110.6 | 297,299 | 104.6 | ||||||||||||
Investor
Relations Expenses
|
18,095 | 5.7 | - | - | ||||||||||||
Payroll
and Employee Benefits
|
696,280 | 217.8 | 186,367 | 65.6 | ||||||||||||
Windfarm
Management Expenses
|
33,789 | 10.6 | 22,938 | 8.1 | ||||||||||||
TOTAL
OPERATING EXPENSES
|
1,101,560 | 344.6 | 506,604 | 178.3 | ||||||||||||
OPERATING
LOSS
|
(894,696 | ) | (279.9 | ) | (360,719 | ) | (126.9 | ) | ||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Interest
Income
|
16,018 | 5.0 | - | - | ||||||||||||
Interest
Expense
|
(8,183 | ) | (2.6 | ) | (7,917 | ) | (2.8 | ) | ||||||||
Gain
in Fair Value of Warrant Liability
|
848,966 | 265.6 | - | - | ||||||||||||
Other
Income (Expense)
|
31,318 | 9.8 | - | - | ||||||||||||
TOTAL
OTHER INCOME (EXPENSE)
|
888,119 | 277.8 | (7,917 | ) | (2.8 | ) | ||||||||||
LOSS
BEFORE INCOME TAXES
|
(6,577 | ) | (2.1 | ) | (368,636 | ) | (129.7 | ) | ||||||||
INCOME
TAX BENEFIT
|
- | 0.0 | (62,000 | ) | (21.8 | ) | ||||||||||
NET
LOSS
|
$ | (6,577 | ) | (2.1 | ) % | $ | (306,636 | ) | (107.9 | ) % | ||||||
PREFERRED
DIVIDENDS
|
103,200 | 6,880 | ||||||||||||||
SERIES
B BENEFICIAL CONVERSION FEATURE
|
2,790,707 | - | ||||||||||||||
NET
LOSS ATTRIBUTABLE TO COMMON
|
||||||||||||||||
STOCKHOLDERS
|
$ | (2,900,484 | ) | $ | (313,516 | ) | ||||||||||
WEIGHTED
AVERAGE SHARES
|
||||||||||||||||
OUTSTANDING
- BASIC AND DILUTED
|
20,462,318 | 15,566,484 | ||||||||||||||
NET
LOSS PER SHARE - BASIC AND DILUTED
|
$ | (0.14 | ) | $ | (0.02 | ) |
2009
|
2008
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
REVENUE
|
||||||||||||||||
Wind
Farm Development and Management
|
$ | 332,834 | 49.8 | % | $ | 263,330 | 34.5 | % | ||||||||
Turbine
Sales & Service
|
282,368 | 42.3 | 450,683 | 59.0 | ||||||||||||
Related
Party Revenue
|
50,813 | 7.6 | 43,283 | 5.7 | ||||||||||||
Other
Operating Income
|
1,929 | 0.3 | 6,232 | 0.8 | ||||||||||||
TOTAL
REVENUE
|
667,944 | 100.0 | 763,528 | 100.0 | ||||||||||||
COST
OF GOODS SOLD
|
283,956 | 42.5 | 296,161 | 38.8 | ||||||||||||
GROSS
PROFIT
|
383,988 | 57.5 | 467,367 | 61.2 | ||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
General
and Administrative Expenses
|
816,999 | 122.3 | 345,862 | 45.3 | ||||||||||||
Investor
Relations Expenses
|
52,921 | 7.9 | - | - | ||||||||||||
Payroll
and Employee Benefits
|
1,094,049 | 163.8 | 262,874 | 34.4 | ||||||||||||
Windfarm
Management Expenses
|
135,966 | 20.4 | 73,957 | 9.7 | ||||||||||||
TOTAL
OPERATING EXPENSES
|
2,099,935 | 314.4 | 682,693 | 89.4 | ||||||||||||
OPERATING
LOSS
|
(1,715,947 | ) | (256.9 | ) | (215,326 | ) | (28.2 | ) | ||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Interest
Income
|
40,221 | 6.0 | - | - | ||||||||||||
Interest
Expense
|
(16,851 | ) | (2.5 | ) | (16,012 | ) | (2.1 | ) | ||||||||
Gain
in Fair Value of Warrant Liability
|
2,198,671 | 329.2 | - | - | ||||||||||||
Other
Expense
|
31,618 | 4.7 | - | - | ||||||||||||
TOTAL
OTHER INCOME (EXPENSE)
|
2,253,659 | 337.4 | (16,012 | ) | (2.1 | ) | ||||||||||
INCOME
(LOSS) BEFORE INCOME TAXES
|
537,712 | 80.5 | (231,338 | ) | (30.3 | ) | ||||||||||
INCOME
TAX BENEFIT
|
- | 0.0 | (62,000 | ) | - | |||||||||||
NET
INCOME (LOSS)
|
$ | 537,712 | 80.5 | % | $ | (169,338 | ) | (30.3 | ) % | |||||||
PREFERRED
DIVIDENDS
|
206,400 | 6,880 | ||||||||||||||
SERIES
B BENEFICIAL CONVERSION FEATURE
|
2,790,707 | - | ||||||||||||||
NET
LOSS ATTRIBUTABLE TO COMMON
|
||||||||||||||||
STOCKHOLDERS
|
$ | (2,459,395 | ) | $ | (176,218 | ) | ||||||||||
WEIGHTED
AVERAGE SHARES
|
||||||||||||||||
OUTSTANDING
- BASIC AND DILUTED
|
20,333,537 | 15,383,333 | ||||||||||||||
NET
LOSS PER SHARE - BASIC AND DILUTED
|
$ | (0.12 | ) | $ | (0.01 | ) |
Convertible
|
Convertible
|
|||||||||||||||||||||||||||||||||||||||
Preferred Stock
|
Preferred Stock
|
Additional
|
Stock
|
Total
|
||||||||||||||||||||||||||||||||||||
Common Stock
|
Series A
|
Series B
|
Paid-In
|
Accumulated
|
Subscription
|
Equity
|
||||||||||||||||||||||||||||||||||
Shares
|
Par
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Receivable
|
(Deficit)
|
|||||||||||||||||||||||||||||||
BALANCE
- December 31, 2008
|
20,183,213 | $ | 2,018 | - | $ | - | - | $ | - | $ | 2,740,788 | $ | (1,753,802 | ) | $ | - | $ | 989,004 | ||||||||||||||||||||||
Cumulative
effect of accounting change (note 4)
|
(529,133 | ) | - | (1,438,201 | ) | (10,609,482 | ) | (12,576,816 | ) | |||||||||||||||||||||||||||||||
ADJUSTED
BALANCE- January 1, 2009 (unaudited)
|
20,183,213 | 2,018 | - | (529,133 | ) | - | - | 1,302,587 | (12,363,284 | ) | - | (11,587,812 | ) | |||||||||||||||||||||||||||
Removal
of contingent redemption feature
|
||||||||||||||||||||||||||||||||||||||||
of
Series A preferred stock
|
5,160,000 | 3,342,954 | - | - | 3,342,954 | |||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | - | - | 537,712 | 537,712 | |||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Stock-based
compensation
|
- | - | - | - | - | - | 498,221 | - | 498,221 | |||||||||||||||||||||||||||||||
Common
stock dividends issued to Series A preferred stockholders
|
283,120 | 28 | - | (316,479 | ) | - | - | 507,231 | - | 190,780 | ||||||||||||||||||||||||||||||
Beneficial
conversion feature of Series B preferred stock
|
- | - | - | - | - | 2,790,707 | (2,308,039 | ) | (482,668 | ) | - | |||||||||||||||||||||||||||||
Issuance
of Series B and conversion of Series A warrants for Series B
preferred stock, less offering costs of $10,000
|
- | - | - | - | 6,607,006 | 12,914,196 | - | - | 12,914,196 | |||||||||||||||||||||||||||||||
Subscription
receivable issued for issuance of Series B preferred stock
|
(196,710 | ) | (196,710 | ) | ||||||||||||||||||||||||||||||||||||
Series
A 8% preferred stock dividend
|
- | - | - | 206,400 | - | - | - | (206,400 | ) | - | ||||||||||||||||||||||||||||||
BALANCE
- June 30, 2009 (unaudited)
|
20,466,333 | $ | 2,046 | 5,160,000 | $ | 2,703,742 | 6,607,006 | $ | 15,704,903 | $ | - | $ | (12,514,640 | ) | $ | (196,710 | ) | $ | 5,699,341 |
2009
|
2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
Income (Loss)
|
$ | 537,712 | $ | (169,338 | ) | |||
Adjustments
to Reconcile Net Income (Loss) to Net Cash
|
||||||||
Provided
by Operating Activities:
|
||||||||
Depreciation
and Amortization
|
99,027 | 23,792 | ||||||
Stock-Based
Compensation
|
498,221 | 71,045 | ||||||
Provision
for Uncollectible Accounts
|
(10,000 | ) | 45,446 | |||||
Gain
on Warrant Liability Fair Value
|
(2,198,671 | ) | - | |||||
Liquidated
Damages Expense
|
(31,316 | ) | - | |||||
Change
in Assets and Liabilities, Net of Contributed Company:
|
||||||||
Accounts
Receivable
|
760 | 77,307 | ||||||
Unbilled
Receivable
|
49,851 | (116,350 | ) | |||||
Inventory
|
109,429 | 120,858 | ||||||
Reimbursable
Project Costs
|
56,442 | - | ||||||
Other
Current Assets
|
(134,100 | ) | (1,654 | ) | ||||
Interest
receivable on short term investments
|
(27,483 | ) | - | |||||
Accounts
Payable
|
362,999 | 25,112 | ||||||
Accrued
Expenses
|
5,049 | 116,802 | ||||||
Deferred
Income Taxes
|
- | (79,000 | ) | |||||
Deferred
Revenue
|
364,625 | 135,279 | ||||||
NET
CASH FROM (USED IN) OPERATING ACTIVITIES
|
(317,455 | ) | 249,299 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Cash
Acquired from Community Wind Development Group, LLC
|
- | 13,108 | ||||||
Cash
Paid for Short-term Investments
|
(3,989 | ) | - | |||||
Investment
in Project Development Costs
|
(5,000 | ) | (100,000 | ) | ||||
Payments
for Property and Equipment
|
(67,862 | ) | (7,695 | ) | ||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(76,851 | ) | (94,587 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Change
in restricted cash
|
(97,364 | ) | - | |||||
Principal
Payments on Notes Payable
|
(75,000 | ) | (15,000 | ) | ||||
Proceeds
received through the issuance of
|
||||||||
Series
A preferred stock
|
- | 4,099,825 | ||||||
Proceeds
received through the issuance of
|
||||||||
Series
B preferred stock and conversion of warrants
|
2,339,341 | - | ||||||
Distributions
to Shareholders
|
- | (216,899 | ) | |||||
NET
CASH FROM FINANCING ACTIVITIES
|
2,166,977 | 3,867,926 | ||||||
NET
INCREASE IN CASH
|
1,772,671 | 4,022,638 | ||||||
CASH
BEGINNING OF THE PERIOD
|
1,310,789 | 163,476 | ||||||
CASH
END OF THE PERIOD
|
$ | 3,083,460 | $ | 4,186,114 | ||||
NONCASH
INVESTING ACTIVITY
|
||||||||
Equity
Contribution of Net Assets and Liabilities of Common
|
||||||||
Owned
Company by Shareholder
|
$ | - | $ | 5,438 | ||||
NONCASH
FINANCING ACTIVITY
|
||||||||
Subscription
receivable from issuance of Series B preferred stock
|
$ | 196,710 | $ | - | ||||
Private
placement offering costs paid directly from gross proceeds
|
$ | - | $ | 560,175 | ||||
Private
placement offering costs included in accounts payable
|
$ | - | $ | 31,950 | ||||
2008
Private placement restricted cash deposit
|
$ | - | $ | 500,000 | ||||
Series
A preferred stock dividend
|
$ | 206,400 | $ | - | ||||
Warrant
liability recognition upon adoption of EITF 07-5
|
$ | 12,576,816 | $ | - | ||||
Fair
value of warrant liability exchanged on Series B preferred
stock
|
$ | 10,378,145 | $ | - | ||||
Accrued
liquidated damages fees paid in the form of common stock
|
$ | 222,000 | $ | - |
1.
|
BACKGROUND,
CHANGE OF CONTROL AND BASIS OF
PRESENTATION
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
|
CASH
|
|
ACCOUNTS
RECEIVABLE
|
|
UNBILLED
RECEIVABLES
|
|
INVENTORIES
|
|
·
|
Proceeds
received upon the signing of a Development Services Agreement (generally
10% of the total expected development fee) are amortized over the expected
period of the development process, which is generally three years. The
amortization period is re-assessed by management as new timelines are
established for the project in-service date, and the amortization period
is adjusted.
|
|
·
|
The
remaining proceeds are allocated to the following deliverables based on
vendor specific objective evidence (VSOE) of each item: 1) achievement of
a signed Power Purchase Agreement (PPA) with an electrical utility, and 2)
final commissioning of the wind farm turbines. Management has
determined that these deliverables have stand-alone value, and performance
of the undelivered services are considered probable and in the control of
the Company.
|
3.
|
PRIVATE
PLACEMENT OF SERIES A 8% CONVERTIBLE PREFERRED STOCK AND COMMON STOCK
WARRANTS
|
4.
|
ISSUANCE
OF SERIES B CONVERTIBLE PREFERRED
STOCK
|
5.
|
WARRANT
LIABILITY
|
Expected
term
|
4
years
|
|||
Risk-free
interest rate
|
2.97
|
%
|
||
Expected
volatility
|
104
|
% | ||
Dividend
yield
|
0
|
% |
6.
|
CONCENTRATIONS,
RISKS AND UNCERTANTIES
|
7.
|
INVENTORIES
|
June 30,
2009
|
December 31,
2008*
|
|||||||
Materials
and supplies
|
$ | 293,689 | $ | 351,213 | ||||
Work
–in-progress
|
- | 51,905 | ||||||
$ | 293,689 | $ | 403,118 |
8.
|
PROPERTY
AND EQUIPMENT
|
June 30,
2009
|
December 31,
2008*
|
|||||||
Land
|
$ | 17,500 | $ | 17,500 | ||||
Building
and improvements
|
238,120 | 238,120 | ||||||
Equipment,
including vehicles
|
336,184 | 268,326 | ||||||
Subtotal
|
591,804 | 523,946 | ||||||
Less
Accumulated depreciation
|
(206,849 | ) | (179,822 | ) | ||||
Total
|
$ | 384,955 | $ | 344,124 |
9.
|
INCOME
TAXES
|
Current
Deferred Income Tax Asset:
|
||||
Accrued
Vacation and Officer’s Compensation
|
$ | 12,000 | ||
Liquidated
Damages Provision
|
14,000 | |||
Reserves
for Warranty
|
12,000 | |||
Net
Operating Loss Carryforward
|
186,000 | |||
Total
|
$ | 224,000 | ||
Non-Current
Deferred Income Tax Asset:
|
||||
Net
Operating Loss Carryforward
|
629,000 | |||
Less
Valuation Allowance
|
(397,000 | ) | ||
Total
|
$ | 232,000 | ||
Non-current
Deferred Income Tax Liability
|
||||
Depreciation
|
$ | 20,000 |
Statutory
Tax Rate
|
$ | 182,000 | 34.0 | % | ||||
States
Taxes, Net of Federal Benefit
|
32,000 | 6.0 | ||||||
Nondeductible
Expenses
|
(647,000 | ) | (120.9 | ) | ||||
Increase
in Valuation Allowance
|
397,000 | 74.1 | ||||||
Other,
Net
|
36,000 | 6.8 | ||||||
$ | - | 0.00 | % |
10.
|
STOCK-BASED
COMPENSATION
|
Outstanding
at December 31, 2008
|
620,000 | |||
Granted
|
1,015,000 | |||
Exercised
|
- | |||
Expired
|
- | |||
Forfeited
|
- | |||
Outstanding
at June 30, 2009
|
1,635,000 | |||
Options
exercisable at the end of the period
|
497,907 |
11.
|
FAIR
VALUE MEASUREMENTS
|
Warrant liability
|
||||
Beginning
Balance, January 1, 2009
|
$ | - | ||
Recognition
upon adoption of EITF 07-5
|
12,576,816 | |||
Gain
on warrant liability fair value adjustment
|
(2,198,671 | ) | ||
Reclassification
to equity (see Note 5)
|
(10,378,145 | ) | ||
Ending
Balance, June 30, 2009
|
$ | - | ||
Total
unrealized gain included in earnings which are attributable to the change
in unrealized gains or losses related to liability no longer held at the
reporting date
|
$ | 2,198,671 |
12.
|
BUSINESS
SEGMENTS
|
Wind Farm
Development
and
Management
|
Consumer-
Owned
Renewable
Energy
|
Consolidated
|
||||||||||
For
the Six-Month Period Ended June 30, 2009
|
||||||||||||
Wind
farm development/mgmt
|
$ | 332,834 | $ | - | $ | 332,834 | ||||||
Consumer-owned
renewable energy
|
- | 282,368 | 282,368 | |||||||||
Related
party revenue
|
50,813 | - | 50,813 | |||||||||
Other
|
1,929 | - | 1,929 | |||||||||
Total
revenue
|
$ | 385,576 | $ | 282,368 | $ | 667,944 | ||||||
Loss
from operations
|
$ | (1,471,647 | ) | $ | (244,300 | ) | $ | (1,715,947 | ) | |||
Other
income (loss), net
|
2,270,510 | (16,851 | ) | 2,253,659 | ||||||||
Income
(Loss) before income tax benefit
|
$ | 798,863 | $ | (261,151 | ) | $ | 537,712 | |||||
Identifiable
assets at June 30, 2009
|
$ | 1,149,491 | $ | 1,013,047 | $ | 2,162,538 | ||||||
Corporate
assets
|
5,548,014 | |||||||||||
Total
assets at June 30, 2009
|
$ | 7,710,552 |
Wind Farm
Development
and
Management
|
Consumer-
Owned
Renewable
Energy
|
Consolidated
|
||||||||||
For
the Six-Month Period Ended June 30, 2008
|
||||||||||||
Wind
farm development/mgmt Management
|
$ | 263,330 | $ | - | $ | 263,330 | ||||||
Consumer-owned
renewable energy
|
- | 450,683 | 450,683 | |||||||||
Related
party revenue
|
43,283 | - | 43,283 | |||||||||
Other
|
6,232 | - | 6,232 | |||||||||
Total
revenue
|
$ | 312,845 | $ | 450,683 | $ | 763,528 | ||||||
Income
(loss) from operations
|
$ | (250,426 | ) | $ | 35,100 | $ | (215,326 | ) | ||||
Other
income (loss), net
|
- | (16,012 | ) | (16,012 | ) | |||||||
Income
(loss) before income taxes
|
$ | (250,426 | ) | $ | 19,088 | $ | (231,338 | ) | ||||
Identifiable
assets at June 30, 2008
|
$ | 833,263 | $ | 574,460 | $ | 1,407,852 | ||||||
Corporate
assets
|
4,499,742 | |||||||||||
Total
assets at June 30, 2008
|
$ | 5,907,594 |
13.
|
TRANSACTIONS
WITH RELATED PARTIES
|
14.
|
COMMITMENTS
AND CONTINGENCIES
|
15.
|
SUBSEQUENT
EVENT
|
Item
2.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
|
·
|
ongoing increases in electricity
demand due to population growth and growth in energy consuming devices
such as computers, televisions and air conditioning
systems,
|
|
·
|
the increasing cost of the
predominant fuels required to drive the existing fleet of conventional
electric generation such as coal, natural gas, nuclear and
oil,
|
|
·
|
the increasing cost and
difficulty faced in the construction of conventional electric generation
plants,
|
|
·
|
existing and growing legislative
and regulatory mandates for “cleaner” forms of electric generation,
including state renewable portfolio standards and the U.S. federal tax
incentives for wind and solar
generation,
|
|
·
|
ongoing improvements to wind
power systems making them more cost effective and improving availability
to meet demand, and
|
|
·
|
worldwide concern over greenhouse
gas emissions and calls to reduce global warming due to the carbon dioxide
produced by conventional electric
generation.
|
·
|
the
identification, selection and acquisition of sufficient land for control
of the land area required for a wind
farm,
|
·
|
the
confirmation of a regional electricity market and the availability of
RECs,
|
·
|
the
confirmation of acceptable wind resources (feasibility
study),
|
·
|
the
confirmation of the potential to interconnect to the electric transmission
grid, and
|
·
|
the
determination of limited environmental
sensitivity.
|
Item
3.
|
QUANTITATIVE
AND QUALITATIVE ANALYSIS ABOUT MARKET
RISK
|
Item
4.
|
CONTROLS
AND PROCEDURES
|
1.
|
The
Company hired a Chief Financial Officer in January 2009 to provide
oversight of the internal control systems, compliance with the GAAP and
SEC disclosure requirements, and supervision of the accounting
functions.
|
2.
|
In
March 2009, the Board of Directors approved the adoption of a Disclosure
Control policy, which includes, among other things, a Disclosure Committee
consisting of the CEO, President and CFO. This Committee will be
responsible for managing the identification and disclosure of information
in our SEC filings and public
statements.
|
3.
|
The
Company has assessed control risks with the assistance of an outside
consultant who has experience with Sarbanes Oxley compliance and has
documented key accounting control areas. We expect to continue this effort
in 2009 to meet attestation
standards.
|
4.
|
We
have established a formal delegation policy within the Company which
provides business rules in conjunction with signing and approval authority
by Company employees.
|
5.
|
As
a small business, the Company does not have the resources to fund
sufficient staff to ensure a complete segregation of responsibilities
within the accounting function. However, Company management
does review, and will increase the review of, financial statements and
bank reconciliations on a monthly basis, together with the adoption of a
monthly financial closing process. These actions, in addition to the
improvements identified above, will minimize risk of a potential
material misstatement
occurring.
|
a)
|
None
|
b)
|
None
|
No.
|
Description
|
|||
3.1
|
Articles
of Incorporation of the Company 1
|
|||
3.2
|
Certificate of Amendment to
Certificate of Incorporation amending, among other things, the name of MH
& SC, Incorporated to Juhl Wind, Inc. filed June 20, 2008, and
effective June 24, 2008, with the Delaware Secretary of State 2
|
|||
3.3
|
Certificate
of Designation of Preferences, Rights and Limitations of Series A 8%
Convertible Preferred Stock of Juhl Wind, Inc. filed June 24, 2008, with
the Delaware Secretary of State2
|
|||
3.4
|
Amended
and Restated Certificate of Designation of Preferences, Rights and
Limitations of Series A 8% Convertible Preferred Stock of Juhl Wind, Inc.
filed June 11, 2009, with the Delaware Secretary of State3
|
|||
3.5
|
Certificate
of Designation of Preferences, Rights and Limitations of Series B
Convertible Preferred Stock of Juhl Wind, Inc. filed June 26, 2009, with
the Delaware Secretary of State 4
|
|||
3.6
|
Bylaws
of the Company1
|
|||
10.1
|
Memorandum
of Understanding dated April 13, 2009 between Juhl Wind, Inc. and each of
Vision Opportunity Master Fund, Ltd., Daybreak Special Situations Master
Fund, Ltd., Bruce Meyers and Imtiaz Khan5
|
|||
10.2
|
Wavier
Agreement dated May 13, 2009, between Juhl Wind, Inc. and each of Vision
Opportunity Master Fund, Ltd., Daybreak Special Situations Master Fund,
Ltd., Bruce Meyers and Imtiaz Khan6
|
|||
10.3
|
Warrant
Amendment Agreement dated June 29, 2009, between Juhl Wind, Inc. and each
of Vision Opportunity Master Fund, Ltd., Daybreak Special Situations
Master Fund, Ltd., Bruce Meyers and Imtiaz Khan7
|
10.4
|
Securities
Exchange Agreement dated June 29, 2009, between Juhl Wind, Inc. and each
of Vision Opportunity Master Fund, Ltd., Daybreak Special Situations
Master Fund, Ltd., Bruce Meyers and Imtiaz Khan7
|
|||
10.5
|
Form
of Employment Agreement, dated August 13, 2009, between Juhl Wind, Inc.
and John J. Brand
|
|||
31.1
|
Certification
of Principal Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|||
31.2
|
Certification
of Principal Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|||
32.1
|
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
|||
32.2
|
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
JUHL WIND, INC.
|
|
(Registrant)
|
|
Date: August
14, 2009
|
/s/
John Mitola
|
John
Mitola
|
|
President
|