Apparently using cash basis accounting -not accrua
Post# of 1850
Posted On: 04/16/2015 10:45:53 AM
Apparently using cash basis accounting -not accrual basis -
so they report the 1st parcel as ''other income'' essentially as a 'subsequent event' (though they dont identify it explicitly as such) as required (subsequent events have to be reported) but not shown as revenue on fin statements because not received as of Dec 31 (cash basis accounting)
apparently didnt receive cash for 2nd parcel in qtr 1 is only reason i can see they wouldnt report it in qtr 1 as revenue-should be shown as accounts receivable on qtr 1 fin statement just as the 1st shipment is an accounts receivable on 10k as of dec 31
Revenue
We earned other income during the year ended December 31, 2014 for the shipment of our first parcel of diamonds in the amount of $12,490. No revenue was earned for the year ended December 31, 2014. We currently are seeking ways to initiate cash producing mining activities but do not anticipate earning revenues until such time as we have entered into commercial production on the Nyinahin or Pampana River concessions. We have not concluded the exploration stage of our business and can provide no assurance that we will discover economic mineralization on the property, or if such minerals are discovered, that we will enter into commercial production.
Equity Compensation
We currently do not have any formalized stock option or equity compensation plans or arrangements, however, from time to time we settle obligations via the issuance of equity and equity-linked instruments.
Liquidity and Financial Condition
Working Capital
2014 2013 Change
Current Assets $ 13,213 $ 2,463 $ 10,750
Current Liabilities 1,850,994 1,285,596 (565,398 )
Working Capital Deficit $ (1,837,781 ) $ (1,283,133 ) $ (554,648 )
16
Cash Flows
Year Ended
December 31,
2014 2013
Net Cash Used in Operating Activities $ (477,091 ) $ (252,660 )
Net Cash Used in Investing Activities (115,303 ) (5,358 )
Net Cash Provided by Financing Activities 590,452 260,030
(Decrease)/ increase in Cash During the Period $ (1,942 ) $ 2,012
Item 8. Financial Statements and Supplementary Data
18
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Sunergy, Inc.
We have audited the accompanying consolidated balance sheets of Sunergy, Inc. (the "Company"
as of December 31, 2014 and 2013, and the related consolidated statements of operations, stockholders’ deficit and cash flows for the years then ended December 31, 2014 and 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits include examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. Our audits also include assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2014 and 2013, and the results of its consolidated operations and its cash flows for the year then ended December 31, 2014 and 2013 in conformity with accounting principles generally accepted in the United States of America.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has an accumulated deficit of $9,171,714. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans concerning these matters are also described in Note 3, which includes the raising of additional equity financing. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Anton & Chia LLP
Newport Beach, CA
April 15, 2015
19
SUNERGY, INC.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEET
December 31, December 31,
2014 2013
ASSETS
Current assets
Cash and cash equivalents $ 521 $ 2,463
Accounts receivable 12,490 $ –
Prepaid expenses 202 –
Total current assets 13,213 2,463
Long-term assets
Exploratory properties – 1,753,497
Property and equipment, net 179,924 128,621
Other assets 70,303 –
Total long-term assets 250,227 1,882,117
Total assets $ 263,440 $ 1,884,580
so they report the 1st parcel as ''other income'' essentially as a 'subsequent event' (though they dont identify it explicitly as such) as required (subsequent events have to be reported) but not shown as revenue on fin statements because not received as of Dec 31 (cash basis accounting)
apparently didnt receive cash for 2nd parcel in qtr 1 is only reason i can see they wouldnt report it in qtr 1 as revenue-should be shown as accounts receivable on qtr 1 fin statement just as the 1st shipment is an accounts receivable on 10k as of dec 31
Revenue
We earned other income during the year ended December 31, 2014 for the shipment of our first parcel of diamonds in the amount of $12,490. No revenue was earned for the year ended December 31, 2014. We currently are seeking ways to initiate cash producing mining activities but do not anticipate earning revenues until such time as we have entered into commercial production on the Nyinahin or Pampana River concessions. We have not concluded the exploration stage of our business and can provide no assurance that we will discover economic mineralization on the property, or if such minerals are discovered, that we will enter into commercial production.
Equity Compensation
We currently do not have any formalized stock option or equity compensation plans or arrangements, however, from time to time we settle obligations via the issuance of equity and equity-linked instruments.
Liquidity and Financial Condition
Working Capital
2014 2013 Change
Current Assets $ 13,213 $ 2,463 $ 10,750
Current Liabilities 1,850,994 1,285,596 (565,398 )
Working Capital Deficit $ (1,837,781 ) $ (1,283,133 ) $ (554,648 )
16
Cash Flows
Year Ended
December 31,
2014 2013
Net Cash Used in Operating Activities $ (477,091 ) $ (252,660 )
Net Cash Used in Investing Activities (115,303 ) (5,358 )
Net Cash Provided by Financing Activities 590,452 260,030
(Decrease)/ increase in Cash During the Period $ (1,942 ) $ 2,012
Item 8. Financial Statements and Supplementary Data
18
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Sunergy, Inc.
We have audited the accompanying consolidated balance sheets of Sunergy, Inc. (the "Company"
as of December 31, 2014 and 2013, and the related consolidated statements of operations, stockholders’ deficit and cash flows for the years then ended December 31, 2014 and 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits include examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. Our audits also include assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2014 and 2013, and the results of its consolidated operations and its cash flows for the year then ended December 31, 2014 and 2013 in conformity with accounting principles generally accepted in the United States of America.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has an accumulated deficit of $9,171,714. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans concerning these matters are also described in Note 3, which includes the raising of additional equity financing. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Anton & Chia LLP
Newport Beach, CA
April 15, 2015
19
SUNERGY, INC.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEET
December 31, December 31,
2014 2013
ASSETS
Current assets
Cash and cash equivalents $ 521 $ 2,463
Accounts receivable 12,490 $ –
Prepaid expenses 202 –
Total current assets 13,213 2,463
Long-term assets
Exploratory properties – 1,753,497
Property and equipment, net 179,924 128,621
Other assets 70,303 –
Total long-term assets 250,227 1,882,117
Total assets $ 263,440 $ 1,884,580
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