Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
SVLT > SEC Filings for SVLT > Form 10-K on 15-Apr-2014All Recent SEC Filings

Show all filings for SUNVAULT ENERGY, INC.

Form 10-K for SUNVAULT ENERGY, INC.


15-Apr-2014

Annual Report


Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with our audited financial statements and the related notes for the years ended December 31, 2013 and 2012 that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this annual report, particularly in the section entitled "Risk Factors" beginning on page 14 of this annual report.

Results of Operations for the Years Ended December 31, 2013 and 2012 and for the Period December 8, 2010 (Inception) to December 31, 2013

The following summary of our results of operations should be read in conjunction with our audited financial statements for the years ended December 31, 2013 and 2012 and the period from December 8, 2010 (inception) to December 31, 2013.

Our operating results for the years ended December 31, 2013 and 2012 and the period from December 8, 2010 (inception) to December 31, 2013 are summarized as follows:

For the year ended December 31, 2013, we incurred net loss of $525,003 compared to a net loss of $71,957 for the year ended December 31, 2012. On May 8, 2013, we discontinued our previous business of wholesaling and distributing organic infant and toddler products so the 2012 net loss is comprised of discontinued operations. Up to May 8, 2013, we incurred a net loss from discontinued operations of $7,391. From May 8, 2013 to December 31, 2013, we incurred various expenses to developing and building the foundation for our current business of providing renewables integration into energy production, energy delivery, and energy consumption.

                                                                       Period from
                               Year ended         Year ended        December 8, 2010
                              December 31,       December 31,        (inception) to
                                  2013               2012           December 31, 2013

   Operating Expenses        $      517,612     $            -     $           517,612
   Discontinued Operations            7,391             71,957                  71,957
   Net Loss                  $     (525,033 )   $      (71,957 )   $          (590,095 )


Liquidity and Financial Condition

Working Capital

                                              At                 At
                                         December 31,       December 31,
                                             2013               2012

            Current Assets              $       11,078     $       17,067
            Current Liabilities         $      389,074     $           60
            Working Capital (Deficit)   $     (377,996 )   $      (17,007 )

As of December 31, 2013, we had current assets of $11,078, consisting of cash, and current liabilities of $389,074 resulting in a working capital deficit of $377,996 compared to working capital of $17,007 as of December 31, 2012.

The following table provides detailed information about our net cash flow for all financial statement periods presented in this Report:

Cash Flows

                                                                 Year ended         Year ended
                                                                December 31,       December 31,
                                                                    2013               2012

Net Cash Provided by (Used in) Operating Activities            $     (192,648 )   $          Nil
Net Cash Provided by (Used in) Investing Activities            $          Nil     $          Nil
Net Cash Provided by (Used in) Financing Activities            $      192,110     $          Nil
Net Cash Provided by (Used in) Discontinued Operations         $         (614 )   $      (80,958 )
Decrease in Cash                                               $       (3,152 )   $      (80,958 )


Operating Activities - Continuing Operations

Cash used in operating activities for the year ended December 31, 2013 was $192,648, which consisted of a net loss of $517,612 as well as the effect of an increase in our working deficit of $324,964. Cash used in discontinued operating activities for the year ended December 31, 2012 was $43,958.

The decrease in working capital for the year ended December 31, 2013 was due to an increase in accounts payable and accrued liabilities of $209,683 and $115,281 due to related parties.

Cash used in operating activities from December 8, 2010 (inception) to December 31, 2013 consisted of net loss of $517,612 as well as the effect of an increase in our working capital of $324,964.

Investing Activities

During the years ended December 31, 2013 and 2012, we had no investing activities and for the period from December 8, 2010 (inception) to December 31, 2013, total cash used in our discontinued investing activities of $5,000 for website development costs.

Financing Activities

During the year ended December 31, 2013, we had net cash provided by financing activities of $190,110. This cash was provided by proceeds from the sale of our common stock in our private placement of $126,000 and $64,110 non interest bearing loans advanced from related parties. During the year ended December 31, 2012, we used net cash in financing activities from discontinued operations of $37,000.

Liquidity and Capital Resources Available to Us

At December 31, 2013 and the date of this filing, we do not have any cash on hand to pay our current operating expenses and to execute our current business plan and if we do not raise the necessary equity capital in the next three months from the date of this filing, we will not be able to execute our current business plan. Our total cash requirements may also exceed the future financing we are able to obtain. Currently, we do not have sufficient cash in our bank accounts to cover our current expenses and estimated future expenses. We do not have any formal agreements with management for advancing funds to our company and we do not have any other external sources of financing available to us at the present time.


We intend to meet our cash requirements for the next 12 months through equity financing, if such equity financing becomes available to us. There is no assurance that we will be successful in obtaining any such affiliate loans or in completing any private placement financings to continue our current operations.

We estimate that our expenses over the next 12 months will be approximately $3,600,000 as described in the table below. These estimates may change significantly depending on the nature of our future business activities and our ability to raise capital from shareholders or other sources.

                    Description                     Expenses

                    Legal and accounting fees          150,000
                    Product development              1,830,000
                    Marketing and advertising          244,000
                    Business development               613,000
                    Salaries and consulting fees       350,000
                    General and administrative         413,000
                    Total                            3,600,000

We do not have any formal agreement with management for advancing funds to the Company and we do not believe that any other external sources of financing are available at the present time.

We intend to meet our cash requirements for the next 12 months through equity financing by way of private placements, if such equity financing becomes available. We expect that our current working capital will satisfy our present cash requirements until sometime during the end of the first quarter of 2014. The company will be bale to self fund through acquisitions while the company seeks out additional financing. We currently do not have any arrangements in place to receive loans or other financing from our president or any other officer or for the completion of any further private placement financings and there is no assurance that we will be successful obtaining any such affiliate loans or in completing any further private placement financings. There is also no assurance that our president will provide financing on terms that will be acceptable to us. We may not raise sufficient funds to fully carry out our business plan.


Off-Balance Sheet Arrangements

We have no significant 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 capital resources that are material to our stockholders.

Inflation

The effect of inflation on our revenues and operating results has not been significant.

Critical Accounting Policies

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete listing of these policies is included in Note 2 of the notes to our financial statements for year ended December 31, 2013. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows, and which require the application of significant judgment by management.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.


Long-lived Assets

In accordance with ASC 360, Property, Plant, and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to:
significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" and ASC 505, "Equity Based Payments to Non-Employees", using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

  Add SVLT to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for SVLT - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.